The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
budget
OF THE
UNITED
STATES
GOVERNMENT
FY
1985
THE BUDGET DOCUMENTS
Budget of the United States Government, 1985 contains the Budget Message of the
President and presents an overview of the President's budget proposals. It includes
explanations of spending programs in terms of national needs, agency missions, and
basic programs, and an analysis of receipts, including a discussion of the President's
tax program. This document also contains a description of the budget system and
various summary tables on the budget as a whole.
United States Budget in Brief, 1985 is designed for use by the general public. It
provides a more concise, less technical overview of the 1985 budget than the above
volume. Summary and historical tables on the Federal budget and debt are also
provided, together with graphic displays.
Budget of the United States Government, 1985—Appendix contains detailed information on the various appropriations and funds that comprise the budget. The
Appendix contains more detailed information than any of the other budget documents. It includes for each agency: the proposed text of appropriation language,
budget schedules for each account, new legislative proposals, explanations of the
work to be performed and the funds needed, and proposed general provisions applicable to the appropriations of entire agencies or groups of agencies. Supplemental
and rescission proposals for the current year are presented separately. Information
is also provided on certain activities whose outlays are not part of the budget-totals.
Special Analyses, Budget of the United States Government, 1985 contains analyses
that are designed to highlight specified program areas or provide other significant
presentations of Federal budget data. This document includes information about:
alternative views of the budget, i.e., current services and national income accounts;
economic and financial analyses of the budget covering Government finances and
operations as a whole; and Government-wide program and financial information for
Federal civil rights and research and development programs.
Instructions for purchasing copies of any of these documents are on the last two
pages of this volume.
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.
For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402
TABLE OF CONTENTS
Page
PART 1. THE BUDGET MESSAGE OF THE PRESIDENT
Ml
PART 2. ECONOMIC ASSUMPTIONS AND THE BUDGET
2-1
Economic developments and outlook
2-2
Economic assumptions
2-9
Cyclical and structural components of the deficits
,
2-12
Changes in the budget outlook since last year
2-15
Sensitivity of the budget to economic assumptions
2-17
PART 3. BUDGET PROGRAM AND TRENDS
3-1
The dramatic halt in domestic spending growth
3-2
The 1985 spending restraint program
3-16
Budget totals and savings plan
3-54
PART 4. BUDGET RECEIFPS
4-1
Summary
4-2
Enacted legislation,
4-3
Receipts proposals
4-9
Effect of enacted and proposed changes on receipts
4-15
Changes in budget receipts
4-16
Receipts by source
4-18
PART 5. MEETING NATIONAL NEEDS: THE FEDERAL PROGRAM BY
FUNCTION
,
5-1
Introduction
5-2
National defense
5-8
International affairs
5-21
General science, space, and technology
5-32
Energy
5-38
Natural resources and environment
5-48
Agriculture
5-55
Commerce and housing credit
5-61
Transportation
5-73
Community and regional development
5-84
Education, training, employment, and social services,
5-92
Health
5-107
Social security and medicare
5-114
Income security
,
5-118
Veterans benefits and services
5-135
Administration of justice
5-142
General government.
5-147
General purpose fiscal assistance
5-153
Net interest
5-158
Allowances
5-161
Undistributed offsetting receipts
5-163
PART 6. PERSPECTIVES ON THE BUDGET
6-1
Relationship of budget authority to outlays
,....,
6-2
IV
CONTENTS
Page
Limitations on the availability of funds
Fiscal activities outside the Federal budget
Budget funds and the Federal debt
The increase in total 1983 outlays over the initial budget estimate
Comparison of relatively uncontrollable outlays and of receipts
Allocation of windfall profit tax receipts
PART 7. THE BUDGET SYSTEM AND CONCEPTS
The budget process
Coverage of the budget totals
Budget authority and related transactions
The credit budget
Collections
Other transactions
Basis for budget figures
PART 8 THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
.
6-5
6-7
6-24
6-27
6-31
6-37
7-1
7-2
7-5
7-8
7-11
7-12
7-14
7-15
81
-
Explanatory note
8-2
Legislative branch
8-3
The judiciary
8-15
Executive Office of the President
8-18
Funds appropriated to the President
8-22
Department of Agriculture
8-31
Department of Commerce
8-47
Department of Defense—Military
8-54
Department of Defense—Civil
8-69
Department of Education
8-73
Department of Energy
8-78
Department of Health and Human Services
8-82
Department of Housing and Urban Development
8-96
Department of the Interior
8-101
Department of Justice
8-113
Department of Labor
8-117
Department of State
8-122
Department of Transportation
8-127
Department of the Treasury
8-139
Environmental Protection Agency
8-146
General Services Administration
8-148
National Aeronautics and Space Administration
8-151
Office of Personnel Management
8-154
Small Business Administration
8-156
Veterans Administration
8-157
Other independent agencies
8-160
Allowances
8-187
Budget totals
8-188
Off-budget Federal entities
8-191
PART 9. SUMMARY TABLES
9-1
Explanatory note relating to the summary tables
9-2
Table of contents
9-3
Table 1. Budget summary..t
9-4
Table 2. Budget receipts by source and budget outlays by agency, 1983-89
9-5
Table 3. Budget outlays by function, 1983-89
9-6
Table 4. Differences between current services and the budget: outlays by
function, 1984-89
9-8
Table 5. Budget authority by agency, 1983-89
9-9
Table 6. Budget authority by function, 1983-89
9-10
CONTENTS
Table 7. Differences between current services and the budget: budget authority by function, 1984-89
Table 8. Budget authority and outlays available through current action by
Congress
Table 9. Relation of budget authority to outlays
Table 10. Obligations incurred, net
Table 11. Balances of budget authority
Table 12. Full-time equivalent of total Federal civilian employment in the
executive branch
Table 13. Budget financing and debt
Table 14. Budget receipts by source
Table 15. Offsetting receipts by type
Table 16. Outlays by function and agency
Table 17. Legislative proposals for major new and expanded programs in
the 1985 budget, projections of costs
„
Table 18. New direct loan obligations by agency
Table 19. New guaranteed loan commitments by agency
Table 20. Controllability of budget outlays, 1975-85
Table 21. Budget receipts by source, 1975-85
Table 22. Budget outlays by function, 1975-85
Table 23. Federal transactions in the national income accounts, 1974-85
Table 24. Federal finances and the gross national product, 1966-87
Table 25. Composition of budget outlays in current and constant (fiscal year
1972) prices: 1965-87
Table 26. Budget receipts and outlays, 1789-1989
9-12
9-13
9-14
9-15
9-16
9-17
9-18
9-19
9-22
9-25
9-40
9-42
9-43
9-44
9-46
9-48
9-59
9-60
9-61
9-62
PART 1
THE BUDGET MESSAGE
OF THE
PRESIDENT
Ml
Where It Comes From,
Corporation
Income Taxes
M
Where It Goes
Grants
States
and Localities
11*
Operations
5*
BUDGET MESSAGE OF THE PRESIDENT
To the Congress of the United States:
In the past year, the Nation's prospects have brightened considerably. The economy has grown strongly—beyond expectation. Inflation has been reduced to its lowest rate in 16 years. Unemployment has declined faster than at any other time in 30 years. We
are well on our way to sustained long-term prosperity without
runaway inflation.
Our national security is being restored. Our domestic programs
are being streamlined to reflect more accurately the proper scope
of Government responsibility and intervention in our lives. Government operations are being made more effective and efficient, as
steps are taken to reduce costs.
These developments are the result of the program I proposed 3
years ago to correct the severe economic and political problems
caused by previous short-sighted and misguided policies and priorities. That program focused on long-range real growth. My tax
proposals were designed to provide badly needed incentives for
saving and productive investment. I supported the Federal Reserve
in its pursuit of sound monetary policy. I worked with the Congress
to reverse the growth of Government programs that had become
too large or had outlived their usefulness, and as a result, domestic
programs, which had been growing rapidly for 3 decades, have finally been contained. I worked to eliminate or simplify unnecessary or
burdensome regulations.
To the Nation's great good fortune, the preceding Congress appreciated the fundamental soundness of this program and joined
with my administration in helping to make it a reality. Frequently,
because of entrenched constituency special interests, the political
risks involved in doing so were great. I thanked Members then, and
continue to be grateful, for the crucial support my program received. The Nation is now beginning to reap the solid fruits of our
joint perseverance and foresight.
The economy's response has fully vindicated my economic program. During the past 2 years the percentage rise in consumer
price index has been no more than it was during the first 6 months
of 1980. Economic recovery has been vigorous during the past year,
with real GNP rising over 6% and industrial production by 16%.
Unemployment, though still unacceptably high, has declined by a
record 2 > percentage points in a single year. Capacity utilization
M
M3
M4
THE BUDGET FOR FISCAL YEAR 1985
in American plants has risen dramatically. Business investment in
new plant and equipment has risen 11%% in the past year, in real
terms. American productivity, stagnant from 1977 to 1981, climbed
3.7% between the third quarter of 1982 and the third quarter of
1983. Interest rates declined substantially in mid-1982, followed by
a major, sustained rally of the stock market that added half a
trillion dollars to the net financial worth of American households.
Real disposable personal income rose 5.1% in 1983. After a substantial decline, the U.S. dollar has rallied powerfully to its highest
level in more than a decade.
We are not, however, out of the woods yet. Despite our success in
reducing the rate of growth of nondefense spending in the last
three budgets, spending in 1985 will exceed 1981 levels by 41%,
reflecting continued increases in basic entitlement programs, essential increases in defense spending, and rapid growth of interest
costs. Clearly, much remains to be done. The task of rebuilding our
military forces to adequate levels must be carried to completion,
and our commitment to provide economic and military support to
small, poor nations that are struggling to preserve democracy must
be honored. At the same time, further action is required to curb
the size and growth of many programs and to achieve managerial
efficiencies throughout Government, wherever the opportunity is
present.
THREE YEARS OF ACCOMPLISHMENT
Last year, I reviewed the dramatic improvements during the
preceding 2 years in Government operations, and in the way they
affect the economy. I am happy to report that these improvements
continued through a third year.
• Where the growth rate of spending was almost out of control
at 17.4% a year in 1980, it will decline to 7.3% this year.
• Where spending grew 64% over the 4 years from 1977 to 1981,
it will rise by only 41% over the 4-year period from 1981 to
1985, despite legislated cost-of-living adjustments and the
needed defense buildup.
• The Federal tax system has been significantly restructured.
Marginal income tax rates have been substantially reduced,
greatly improving the climate for saving and investment. Depreciation reform has been enacted, restoring the value of
depreciation allowances eroded by inflation. Tax loopholes
have been closed, making the tax structure more equitable.
Efforts have been made to shift to financing Government
programs through user fees commensurate with benefits and
services provided.
• Our military strength is being restored to more adequate
levels.
THE BUDGET MESSAGE OF THE PRESIDENT
M5
• Domestic spending, which grew nearly 3-fold in real terms in
a little more than 2 decades, will actually be lower this year
than it was in 1981.
• The rapid growth of means-tested entitlement programs has
been curbed. Eligibility criteria have been tightened to target
benefits more to the truly needy, and significant steps have
been taken to improve the efficiency and effectiveness of
these programs. Unnecessarily frequent cost-of-living adjustments were pared back.
• The social security system has been rescued from the threat
of insolvency raised by rampant inflation, excessive liberalizations, and lagging growth of its tax base.
• Unnecessary or excessive Federal credit activities have been
eliminated or cut back. Improvements in the management
and control of Federal credit activities are being pursued. The
administration has supported the basic intent of proposed
legislation that would move off-budget lending onto the unified budget, in order to provide better budgetary control over
Federal lending.
• Proliferation of regulations and red tape has been stopped.
The number of new Federal rules has fallen by over a quarter
during the past three years, and hundreds of unnecessary old
rules have been eliminated. For the first time, the Federal
Register of new regulatory actions has grown shorter for three
consecutive years; it is now one-third shorter than in 1980.
Federal paperwork requirements have been cut by well over
300 million hours annually, and will be reduced even further
in 1984. This has saved the American public over 150,000
work-years that had been spent every year filling out unnecessary Federal forms and reports. Our regulatory reform efforts to date will save individual citizens, businesses, and
State and local governments over $150 billion over the next
decade.
• Major management improvement initiatives are underway
that will fundamentally change the way the Federal Government operates. The President's Council on Integrity and Efficiency has reported $31 billion in cost reductions or funds put
to better use.
• The Federal nondefense work force has been reduced by 71,000
employees since I took office.
These are impressive accomplishments—accomplishments to be
proud of and to build on. And together we can build on them. With
this budget I call on all Members of the Congress once again for
additional steps to ensure the firmness of our foundations and
overcome the Nation's budget problem.
M6
THE BUDGET FOR FISCAL YEAR 1985
p i ^ | f ^ ^ ^
^JWyBjSR^S
6.6
4.5
3.5
ISwW ;
F1S«>I Years
MAINTAINING ECONOMIC RECOVERY
Before us stands the prospect of an extended era of peace, prosperity, growth, and a rising standard of living for all Americans.
What must we do to ensure that that promise shall be realized and
enjoyed in the years to come? What must we do to ensure that the
high price of adjustment to this new era paid by the Nation in
recent years shall not have been paid in vain?
All signs point to continued strong economic growth, vigorous
investment, and rising productivity, without renewed inflation—all
but one. Only the threat of indefinitely prolonged high budget
deficits threatens the continuation of sustained noninflationary
growth and prosperity. It raises the specter of sharply higher interest rates, choked-off investment, renewed recession, and rising unemployment.
This specter must be laid to rest: just as fears of rampant inflation and its attendant evils are being laid to rest; just as fears of
helplessness before growth in Soviet military might and all it
threatens are being laid to rest; just as fears that the Nation's
THE BUDGET MESSAGE OF THE PRESIDENT
M7
social security system would "go under" have been laid to rest. A
number of actions will be required to lay it to rest. This budget
requests these actions of Congress; it calls for measures to continue
to curb the upward momentum of Federal spending and to increase
Federal receipts. Other actions involve such fundamental reform of
our fiscal procedures that they will require that the Constitution
be amended.
Congress has each year enacted a portion of my budget proposals, while ignoring others for the time being. It is moving slowly,
year by year, toward the full needed set of budget adjustments. I
urge the Congress to enact this year not only the proposals contained in this budget, but also constitutional amendments providing for a line-item veto and for a balanced budget—rather than the
fitful policy of enacting a half-hearted reform this year, another
one next year, and so on.
Where Congress lacks the will to enforce upon itself the strict
fiscal diet that is now necessary, it needs the help of the Executive
Branch. We need a constitutional amendment granting the President power to veto individual items in appropriations bills. Fortythree of the fifty States give this authority to their governors.
Congress has approved a line item veto for the District of Columbia, Puerto Rico, and the trust territories. It is now time for Congress to grant this same authority to the President. As Governor of
California, I was able to use the line-item veto as a powerful tool
against wasteful government spending. It works, and works well, in
State government. Every number in this document bears testimony
to the urgent need for the Federal Government to adopt this fundamental fiscal reform,
Let us also heed the people and finally support a constitutional
amendment mandating balanced Federal budgets and spending
limits. I encourage our citizens to keep working for this at the
grassroots. If you want to make it happen, it will happen.
We must seek a bipartisan basis for fundamental reforms of
Government spending programs. We need to reexamine just what,
how, and how much the Federal Government should be doinggiven our need for security and well-being and our desire to leave
power and resources with the people. The President's Private
Sector Survey on Cost Control (Grace Commission) has already
come up with some interesting suggestions in this regard that, with
the help of the Congress, will be adopted wherever possible.
To those who say we must raise taxes, I say wait. Tax increases
pile unfair burdens on the people, hurt capital formation, and
destroy incentives for growth. Tax cuts helped sustain the recovery,
leading to faster growth and more jobs. Rather than risk sabotaging our future, let us go forward with an historic reform for fair-
M8
THE BUDGET FOR FISCAL YEAR 1985
ness, simplicity, and growth. It is time to simplify the entire tax
code so everyone is on equal footing.
The tax system must be made simpler and fairer; honest people
should not pay for cheaters; the underground economy should come
back into the sunlight; and everyone's tax rates should be reduced
to spark more savings, investment, and incentives for work and
economic growth. This is the blueprint for a brighter future and a
fairer tax system. Therefore, I am directing the Department of the
Treasury to complete a study with recommendations by the end of
the year.
With these changes completed and the necessary fiscal tools in
place, I am confident that we can devise a sweeping set of fiscal
policy changes designed to reduce substantially the persistent Federal deficits that cloud our otherwise bright economic future. The
plan must be based on these cardinal principles:
• It must be bipartisan. Overcoming the deficits and putting the
Government's house in order will require everyone's best efforts.
• It must be fair. Just as all Americans will share in the
benefits that are coming from recovery, all should share fairly
in the burden of transition to a more limited role of Government in our society.
• It must be prudent. The strength of our national defense must
be restored so that we can pursue prosperity in peace and
freedom, while maintaining our commitment to the truly
needy.
• Finally, it must be realistic. Government spending will not be
curbed by wishful thinking.
In the meantime, the proposals in this budget provide important
additional steps toward reducing the deficit.
MEETING FEDERAL RESPONSIBILITIES
My administration seeks to limit the size, intrusiveness, and cost
of Federal activities as much as possible and to achieve the needed
increase in our defense capabilities in the most cost-effective
manner possible. This does not mean that appropriate Federal
responsibilities are being abandoned, neglected, or inadequately
supported. Instead, ways are being found to streamline Federal
activity, to limit it to those areas and responsibilities that are truly
Federal in nature; to ensure that these appropriate Federal responsibilities are performed in the most cost-effective and efficient
manner; and to aid State and local governments in carrying out
their appropriate public responsibilities in a similarly cost-effective
manner. The Nation must ask for no more publicly-provided services and benefits than the taxpayers can reasonably be asked to
finance.
THE BUDGET MESSAGE OF THE PRESIDENT
M9
Education.—I have devoted considerable time this year to the
problems of our schools. The record of the last two decades is not
good, though relieved in places by the efforts of many dedicated
teachers, administrators, parents, and students. It has been extremely gratifying to observe the response all across the country to
my call for a renewed commitment to educational excellence. Excellence in education will only happen when the States and school
districts, parents and teachers, and our children devote themselves
to the hard work necessary to achieve it. Federal money cannot
buy educational excellence. It has not in the past and will not in
the future. What we will do in this budget is seek resources to help
the States plan and carry out education reforms. My budget includes $729 million, about 50% more than Congress appropriated
for 1984, for the education block grant and discretionary fund.
States and localities will receive this increase in resources and be
able to use the funds for education reform without Federal prescription and interference.
The budget also provides for stabilizing funding for almost all
major education State grant programs at the 1984 level and in the
future allows room for modest growth for most of these programs.
Finally, the budget reflects continued support of several more
important initiatives that will strengthen American education:
• Enactment of tuition tax credits for parents who send their
children to qualified private or religiously-affiliated schools.
• Establishment of education savings accounts to give middleand lower-income families an incentive to save for their children's college education and, at the same time, to encourage a
real increase in saving for economic growth.
• Reorientation of student aid programs to ensure that students
and families meet their responsibilities for financing higher
education.
• Permission for States or localities, if they so choose, to use
their compensatory education funds to establish voucher programs to broaden family choice of effective schooling methods
for educationally disadvantaged children.
• Assistance to States to train more mathematics and science
teachers.
Training and employment—While the economic forecast predicts
continuing improvement in the economy and further steady declines in the unemployment rate, I recognize that there are those
who lack the skills to find and hold steady jobs. This is particularly
true for some of our youth. In the past, Federal training and
employment programs have not always helped these people gain
the skills needed for success in the job market. Instead the Government spent precious tax dollars funding temporary, dead-end,
make-work jobs that did little, if anything, to prepare these people
M10
THE BUDGET FOR FISCAL YEAR 1985
for holding real jobs in the private sector. My administration
worked with the Congress to change that. The Job Training Partnership Act, which I signed into law in 1982, involves private
industry in the design and delivery of job training programs. Each
year it will train 1.5 million disadvantaged adults and youths,
dislocated workers, and welfare recipients in skills needed for private sector jobs. Additional work experience for over 700,000 disadvantaged youths will be provided during the summer months.
What is needed now is not more Government programs, but removal of Government-created barriers that make it difficult for youths
who want to work to find jobs. It ha3 long been acknowledged that
the minimum wage is a barrier to job finding for youths, especially
minority youths, who lack skills. Therefore, I am again asking the
Congress to authorize a wage of 75% of the minimum wage for
youths newly hired for jobs during the summer months. This will
let employers lower their costs to levels more in line with the skills
youths possess, and it will help many young people find jobs and
gain valuable work experience. The legislation I have proposed
includes protections for adult workers.
Research.—Recognizing the Federal responsibility to maintain
and strengthen U.S. leadership in science and technology, the
budget proposes further increases of more than 10% in Government-wide funding for basic research. The $8 billion planned for
support of such research represents a relatively small share of the
budget, but it is a critical investment in the Nation's future. Basic
research lays the foundation for a strong defense in the years to
come and for new technologies and industries that will maintain
U.S. industrial leadership, create new jobs, and improve our quality of life.
Space.—Our civilian space program has made remarkable progress in the past year. The space shuttle, the world's most advanced
space transportation system, has made eight pathbreaking trips
into space and is progressing rapidly towards achieving routine
operational status.
We can now look forward confidently to the next major challenge
in space—a space station. The space station, to be placed in permanent Earth orbit in the early 1990's, is intended to enhance the
Nation's science and application programs, to help develop advanced technologies potentially useful to the economy, and to encourage greater commercial use of space. The budget provides planning money to initiate this program.
National defense.—During the past 3 years, we have also taken
decisive measures to increase our military strength to levels necessary to protect our Nation and our friends and allies around the
THE BUDGET MESSAGE OF THE PRESIDENT
Mil
world. At the same time, we have vigorously pursued diplomatic
approaches, such as arms reduction talks, in an effort to ensure the
principles of security and freedom for all.
The improvement in our defense posture has been accross the
board. Long-overdue modernization of our strategic forces is proceeding, while our conventional forces are also being modernized
and strengthened. Successful recruiting and retention over the past
3 years have resulted in all of our armed services being more fully
manned with capable, high-caliber men and women.
Energy.—My administration has significantly reoriented the
country's approach to energy matters toward reliance on market
forces—instead of Government regulation and massive, indiscriminate Federal spending. This has resulted in greater energy production, more efficient use of energy, and more favorable energy
prices. For example:
• The U.S. economy currently is using 30% less oil and gas per
dollar's worth of output than it did 10 years ago when energy
prices began to rise.
• Heating oil prices have been lower this past year than they
were in January 1981, when I removed oil price controls.
Gasoline prices have fallen to levels which, after adjustments
for general inflation and sales taxes, are within 5% of those
that prevailed in the U.S. in the 1950's.
Energy programs proposed in the budget are designed to complement market forces by focusing resources on limited but appropriate responsibilities of the Federal Government and by managing
these programs well. Thus, for example, the budget proposes increased spending for basic and other long-term energy research. In
addition, the administration continues its commitment to filling
the strategic petroleum reserve. The reserve has more than tripled
in size in the last three years.
Health care.—Progress has been made in slowing the explosive
growth of health costs. As part of the Social Security Amendments
of 1983, Congress enacted the Administration's proposed fixed price
prospective payment system for hospital care. This replaced the
previous Medicare hospital reimbursement system under which
hospitals were reimbursed for their costs. The new prospective
payment system has altered incentives and should lessen the rate of
increase in hospital costs.
Under the proposals in this budget, physicians will be asked to
maintain present fee levels for medicare through the next fiscal
year. Tax incentives prompting overly-costly employee health insurance benefits would be revised to make users and providers
more sensitive to costs. Finally, resources for biomedical research
will increase.
420-000 O - 84 - 2 : QL 3
M12
THE BUDGET FOR FISCAL YEAR 1985
Transportation.—My administration has sought to shift much of
the costs of transportation from the general taxpayer to those who
use transportation services and facilities. I signed into law several
administration-backed proposals to increase excise taxes on aviation and highway users and thereby provide funding needed to
revitalize and modernize these important segments of the Nation's
transportation system. The proportion of the Department of Transportation's budget financed by user fees has risen from 49% in
1982 to 72% in 1985. The budget reflects the administration's continued commitment to the "users pay" principle by including receipts proposals for nautical and aviation aids, the inland waterway system, and construction and maintenance of deep-draft ports.
Recognizing the importance of safety in our transportation systems, the budget provides for significant improvements in this
area. In addition, my administration secured passage of legislation
designed to rebuild the Nation's highway and public transportation
facilities. This legislation substantially increased funds available to
the States and local communities to complete and repair the aging
interstate highway system, to rehabilitate principal rural and
urban highways and bridges, and to improve mass transit systems.
The budget also provides for improvements in the safety of our
transportation systems.
Improved ports and channels will help to make U.S. coal exports
competitive in world markets. My administration will work with
the Congress to provide for timely and efficient port construction.
A system that recovers a significant portion of the cost of existing
port maintenance and new port construction must be enacted prior
to any new construction. In the last 3 years, my administration has
sent several reasonable proposals to the Congress, and progress is
being made. It is time for action on this important issue.
Reducing the Federal presence in commercial transportation,
currently regulated by the Interstate Commerce Commission, the
Civil Aeronautics Board, and the Federal Maritime Commission,
will improve the efficiency of the industry. Authority for the Civil
Aeronautics Board will expire next year, and its residual functions
will be assumed by other agencies. The administration will continue to seek legislation to deregulate ocean shipping, and will propose legislation to deregulate oil pipelines and natural gas. Experience since the adoption of initial transportation deregulation legislation has shown clearly that both consumers and industry benefit
from reduced Federal involvement in these activities.
Criminal justice.—My administration has continued to strengthen the Federal criminal justice system by seeking major legislative
changes in immigration policy, sentencing, and bail procedures,
and by seeking increased funding for law enforcement activities.
An additional organized crime drug enforcement task force will be
THE BUDGET MESSAGE OF THE PRESIDENT
M13
established in Florida, bringing the total number of task forces to
13. The budget proposes to bolster immigration control by strengthening border enforcement and improving the effectiveness of
border inspection programs. Additional attorneys will be sought for
the Internal Revenue Service and the Justice Department, underscoring my administration's determination to tackle the serious
problem of tax protesters and evaders. The administration will
enhance its efforts to identify, neutralize, and defeat foreign agents
who pose a threat to the Nation.
International affairs.—Our foreign policy is oriented toward
maintaining peace through military strength and diplomatic negotiation; promoting market-oriented solutions to international economic problems; telling the story abroad of America's democratic,
free-enterprise way of life; and reducing barriers to free trade both
here and abroad.
• The security assistance portion of the international affairs
program has been increased to assist friendly governments
facing threats from the Soviet Union, its surrogates, and from
other radical regimes.
• Development aid emphasizes encouraging the private sectors
of developing nations and increasing U.S. private sector involvement in foreign assistance.
• The budget provides for continuing the major expansion of
international broadcasting activities started last year. Television, exchanges of people, and other programs to improve
communications with foreign countries are included.
• My administration will continue to work with the Congress to
strengthen the management and coordination of the Government's international trade functions by consolidating them in
a Department of International Trade and Industry.
The United States faces threats to its interests in many parts of
the world. The Middle East, with its vital energy resources, is still
in turmoil. In Central / ~ierica, Marxist forces continue to threaten
democratic governments, exploiting temporary economic dislocations and the continuing poverty of less developed countries. In
Africa, the poorest nations of the world are facing the prospect of
great privation, accentuated by drought. This budget addresses
each of these concerns:
• It continues military and economic support for Israel and
Egypt, with improved financial terms.
• It provides for a significant increase in assistance to Central
America, the specific nature of which will be defined after our
review of the recommendations of the National Bipartisan
Commission on Central America.
• It provides special humanitarian aid to counter the immediate effects of African drought and proposes a longer-term
M14
THE BUDGET FOR FISCAL YEAR 1985
program aimed at the root causes of Africa's economic problems.
Although now less than 2% of the budget, international programs are critical to American world leadership and to the success
of our foreign policy.
Civil service retirement.—There is growing recognition that civil
service retirement has far more generous benefits and is much
more costly than retirement programs in the private sector or in
State and local governments. Accordingly, the administration continues its strong support of the civil service reform proposals advanced in last year's budget. In 1985, the administration will focus
its legislative effort on three of those proposals, in modified form:
cost-of-living adjustment (COLA) reform, a high 5-year salary average for the benefit formula, and increased employee and agency
retirement contributions.
GI bill rate increase.—The budget proposes legislation to provide
a 15% increase in the rates of educational assistance and special
training allowances to GI bill trainees and disabled veterans receiving vocational rehabilitation assistance, effective January 1985.
The increase will offset increased costs since GI bill benefits were
last raised in 1981. It will provide an increase in monthly education benefit checks to 544,000 veterans and their dependents and
survivors.
CONTINUING REFORM OF OUR FEDERAL SYSTEM
The overall efficiency of Government in the United States can
also be improved by a more rational sorting out of governmental
responsibilities among the various levels of government in our
Federal system—Federal, State, and local—and by eliminating or
limiting overlap and duplication.
In 1981, the Congress responded to my proposals by consolidating
57 categorical programs into nine block grants. In 1982, a block
grant was created for job training in the Jobs Training Partnership
Act.
The administration is improving the management of intergovernmental assistance by providing State and local elected officials with
greater opportunity to express their views on proposed Federal
development and assistance actions before final decisions are made.
Under Executive Order 12372, Intergovernmental Review of Federal Programs, which I signed in July 1982, Federal agencies must
consult with State and local elected officials early in the assistance
decision process and make every effort to accommodate their views.
The Order also encourages the simplification of State planning
requirements imposed by Federal law, and allows for the substitu-
THE BUDGET MESSAGE OF THE PRESIDENT
M15
tion of State-developed plans for federally required State plans
where statutes and regulations allow.
CONTROLLING FEDERAL CREDIT PROGRAMS
Federal credit in all its forms imposes costs on the U.S. economy
that must be weighed against its benefits. Federal intervention
through guarantees and direct loans may misdirect investment and
preempt capital that could be used more efficiently by unsubsidized, private borrowers. Because federally assisted borrowers are
frequently less productive than private borrowers, large Federal
credit demands, and the degree of subsidy involved in Federal
credit activity, must be reduced if we are to improve prospects for
economic growth.
The administration continues its strong commitment to control
Federal direct loans and loan guarantees. It has supported the
basic intent of proposed legislation to move off-budget Federal lending into the unified budget. It seeks other basic reforms in the way
in which direct loans and loan guarantees are presented and controlled.
In the coming year, my administration will issue a directive
establishing Government-wide policies on credit. This directive will
be both an explicit statement of the administration's goals in providing credit assistance and a means of controlling the manner in
which that assistance is provided.
REGULATORY REFORM
Federal regulation grew explosively throughout the 1970's.
Whether well or poorly designed, whether aimed at worthy or
dubious objectives, these rules have one thing in common: they
"tax" and "spend" billions of dollars entirely within the private
sector of the economy, unconstrained by public budget or appropriations controls.
My administration has taken steps to correct this problem.
Under Executive Order 12291, all Federal regulations must be
reviewed by the Office of Management and Budget before being
issued to determine whether their social benefits will exceed their
social costs. As a result of this review process, we have reversed the
rate of growth of Federal regulations. Hundreds of ill-conceived
proposals have been screened out, and hundreds of existing rules
have been stricken from the books because they were unnecessary
or ineffective. Equally important, numerous existing regulations
have been improved, and new rules have been made as cost-effective as possible within statutory limits. We are steadily winding
down economic controls that regulate prices, form barriers to entry
for new firms, and other anti-competitive regulations. At the same
M16
THE BUDGET FOR FISCAL YEAR 1985
time we are increasing the effectiveness of our programs promoting
health, safety, and environmental quality.
Our regulatory reform program has been open and public. New
rules and changes to existing rules now require public notice and
comment. My Executive Order requires regulatory agencies to consider the interests of the general public as well as special interest
groups in rulemaking proceedings. The Task Force on Regulatory
Relief and the Office of Management and Budget have issued regular reports detailing the progress of regulatory reform efforts. The
Unified Agenda of Federal Regulations, issued twice each year,
describes all planned and pending regulatory changes in virtually
all Federal agencies. The administration's Regulatory Policy Guidelines, published in August 1983, is the first comprehensive statement of regulatory policy ever to be issued.
I believe it is time the policies and procedures of Executive Order
12291 were enacted into law. Individual regulatory decisions will
always be contentious and controversial, but surely we can all
agree on the general need for regulatory reform. Making each
Government rule as cost-effective as possible benefits everyone
and strengthens the individual regulatory statutes. Regulation has
become such an important role of the Federal Government that
strong and balanced central oversight is becoming a necessity and
a bi-partisan objective. The Laxalt-Leahy Regulatory Reform Act,
which passed the Senate unanimously in 1982, would have accomplished this reform. I strongly urge the Congress to take up and
pass similar legislation this year. In addition, my administration
continues to support measures to deregulate financial institutions.
IMPROVING THE EFFICIENCY OF GOVERNMENT
It is important to continue to reduce the size of Government. It is
equally important to use the remaining resources as efficiently and
effectively as possible. My administration has begun to make great
strides in doing exactly that.
During the past 3 years, we have initiated several Governmentwide management improvement efforts under the guidance of the
Cabinet Council on Management and Administration. They are:
—Reform 88;
—Personnel management reform;
—Federal field structure reform; and
—The President's Private Sector Survey on Cost Control,
These management improvement and cost reduction programs
focus on 4 objectives:
—Reducing fraud, waste, and mismanagement;
—Improving agency operations;
—Developing streamlined Federal Government management systems; and
THE BUDGET MESSAGE OF THE PRESIDENT
M17
—Improving the delivery of services.
Reducing fraud, waste, and mismanagement.—This objective
seeks better use of appropriated dollars. The President's Council on
Integrity and Efficiency (PCIE) was formed in early 1981 and is
made up of 18 department and agency Inspectors General. They
recently reported $8.4 billion in cost reductions or funds put to
better use in the last 6 months of 1983 and a total of $31 billion
since they were appointed. The PCIE is beginning to direct its
efforts toward preventing problems before they occur, through improved technology and better audit processes, as described in their
latest report.
The PCIE also found that enormous waste was occurring because
the Federal Government had never established an effective cash
management system—despite the fact that it handles almost a
trillion dollars in cash annually. This is currently being corrected
by installing sophisticated, up-to-date systems that the Department
of the Treasury estimates could save as much as $3V2 billion a
year.
When my administration came to office we found delinquent
debt owed the Government rising at a rate of over 40% per year—
with a total debt outstanding of over $240 billion. After only 2
years' effort, this annual growth rate has been reduced to 2%. A
credit pre-screening system is now being put in place, and automated collection centers are being installed.
Federal procurement involves annual expenditures of $170 billion. Procurement was an overly complex process with only 50% of
our contract dollars awarded under competitive bid. My administration has replaced three sets of regulations with one, and we are
now setting up a new pro-competitive policy to cut costs.
We have extended our fight to reduce waste and mismanagement
to a direct attack on that nemesis that has always characterized
the Federal Government: red tape and paperwork. We have already reduced the paperwork burden placed on the private sector
by the Federal Government by well over 300 million hours. In this
current fiscal year we intend to reduce the burden by another 130
million hours.
Further savings and improvements are possible. The President's
Private Sector Survey on Cost Control (Grace Commission) developed numerous recommendations for savings and cost avoidance.
These recommendations range from reducing costs of Federal employee retirement programs to upgrading the Government's seriously outdated and inefficient management and administrative systems. I have already included many of these ideas in this budget
and will include more in future budgets. My administration will
develop a tracking system to make sure they are carried out.
M18
THE BUDGET FOR FISCAL YEAR 1985
These are but a few of the efforts underway to make sure that
appropriated funds go further and are used for the purposes for
which they were intended.
Improving agency operations.—I am directing Federal agencies to
coordinate their administrative activities so that they reduce their
current operating costs immediately, rather than wait for future
improvements in systems and technologies. Savings resulting from
these efforts are reflected in this budget. These efforts include: (1)
consolidating headquarters and regional administrative services; (2)
requiring service centers to meet minimum productivity standards
for processing documents; (3) using private sector contractors to
provide support services where appropriate and economical; (4)
reducing Federal civilian employment by 75,000 by the beginning
of 1985, reducing higher graded staff, and improving personnel
planning; (5) reducing office space by 10%; (6) reducing printing
plants by 25% and publications by 25%; and (7) eliminating the
processing of documents altogether for most small agencies, by
requiring them to obtain services from larger agencies that have
efficient centers.
Developing streamlined Federal Government management systems.—As we are reducing the size of Government and reducing
fraud, waste, and abuse, we also need to change fundamentally the
way the Federal Government is managed. When I came into office,
we found that the Federal Government lacked a well-planned compatible management process, so we set about developing one. This
effort involves five major projects: (1) planning and budgeting, (2)
financial management and accounting, (3) personnel management
and payroll, (4) personal and real property, and (5) automatic data
processing and telecommunications management. Responsibilities
and resources for the development of each of these management
systems have been assigned to those agencies that have or are
capable of developing the most advanced management system in
each category. Without this effort, the Federal Government would
continue to operate in an inefficient manner that does not serve
our citizens well.
Improving the delivery of services.—My administration is looking
seriously at the way the delivery of Federal services is handled
across the country. The objective of this effort is to achieve improved service at lower cost, through improved technology and
management techniques such as prescreening, computer matching,
adjusted payment schedules, contractor and grantee performance
incentives, and a streamlined field structure.
All of these efforts are being planned and coordinated centrally
as part of the budget process. The results of these efforts will be
THE BUDGET MESSAGE OF THE PRESIDENT
M19
reported to the Congress together with resulting savings and proposals to upgrade management of the Federal Government.
CONCLUSION
Vigorous, noninflationary economic recovery is well underway.
The long winter of transition from the misguided policies of the
past, with their inflationary and growth-deadening side-effects, is
now yielding to a new springtime of hope for America. The hope of
continued recovery to long-term noninflationary prosperity can be
realized if we are able to work together on further deficit reduction
measures. Bold, vigorous fiscal policy action to break the momentum of entrenched spending programs, together with responsible
and restrained monetary policy, is essential to keep the recovery
on track; essential to the Nation's future economic health and
vitality. Limited measures to increase receipts will also be necessary to make our tax system fairer and more efficient. But it is
important—more than important, crucial—to get the mix of spending restraint and receipts increases right. There must be substantial reductions in spending and strictly limited increases in receipts.
I call urgently upon the Congress, therefore, to take the actions
proposed in this budget. Far too much is at stake to permit casual
dismissal of these essential belt-tightening measures. The Nation
has paid a high price for the prospect of a secure, prosperous,
noninflationary future; that prospect must not be sacrificed to a
sense of complacency, to an expedient ducking of the issues.
With confidence in the ultimate beneficial effects of our actions,
let us seize the high ground and secure, for ourselves and our
posterity, a bright and prosperous future—a future in which the
glory that was America is again restored.
RONALD W. REAGAN
FEBRUARY 1,
1984
PART 2
ECONOMIC ASSUMPTIONS
AND THE BUDGET
2-1
ECONOMIC ASSUMPTIONS AND THE BUDGET
This part of the budget discusses the economic assumptions underlying the 1985 budget estimates. The first section reviews the
economic achievements of 1983 and discusses the favorable economic outlook for sustained growth and moderating inflation. The
second section presents the near-term forecast and the long-term
economic assumptions underlying the budget. The third section
demonstrates that, even with high employment in 1989, there will
still be a substantial deficit unless appropriate policy actions are
taken. The fourth section describes how economic developments
and changes in the economic outlook have modified the budget
outlook since last year. The last section analyzes the sensitivity of
the budget to changes in economic assumptions.
ECONOMIC DEVELOPMENTS AND OUTLOOK
The full results of the administration's economic policies started
to become evident in 1983. The economy grew rapidly, as it usually
does in the first year of recovery, but inflation continued to moderate. In fact, 1983 was one of the best years in the postwar period in
terms of achieving the combined objectives of output growth, job
creation, and control of inflation. Real GNP growth of 6.1% from
the fourth quarter of 1982 to the fourth quarter of 1983 was faster
than in 18 of the previous 20 years. The 4.1% increase in the
implicit price deflator for GNP was the lowest in 16 years. Responding to the rapid rise in output, the labor market rebounded
impressively. Civilian employment grew at a faster rate last year
than in 19 of the past 20 years, as 4.0 million more Americans
found jobs. The 2.5 percentage point fall in the unemployment rate
was the largest 1-year decline since 1951.
Such a favorable outcome was not anticipated by most forecasters, including the administration in its 1984 budget. For example,
last January, the Blue Chip consensus forecast (an average of 43
private forecasts) called for only a 4% increase in real GNP over
the four quarters of 1983, 2 percentage points lower than actually
occurred. The consensus forecast was also too pessimistic about
inflation, overestimating the increase in the GNP deflator by more
than a full percentage point. The unemployment forecast was even
further off the mark. The consensus predicted a fourth quarter
average of 9.9% for the civilian unemployment rate, 1.4 percentage
points above the actual result. After years of deteriorating econom2-2
2-3
ECONOMIC ASSUMPTIONS AND THE BUDGET
ic performance, 1983 was a welcome change, with its robust growth
and moderate inflation.
Although the magnitude of the recovery was somewhat surprising, the eventual reversal of the economic trends of the previous
decade was expected. Indeed, it has been the goal of the administration's economic policies from its first days in office.
The legacy of stagflation.—In the 1970's Government policy too
often created barriers to economic growth. Well-intended policies
frequently had the unintended consequence of distorting economic
incentives and diverting resources from more productive uses to
less productive ones. Federal tax rates rose. Between the early
1970's and 1980 marginal personal income tax rates for a medianincome family of 4 increased by over 25%, from 19% to 24%.
Federal spending also rose sharply, even after adjustment for the
effects of inflation. Constant-dollar Federal outlays increased at an
average annual rate of 3.6% from 1970 to 1980, much faster than
real GNP. The growth of the money supply accelerated from an
annual average rate of 3.9% in the 1960's to 6.6% in the 1970's
(7.5% in the period 1977-1980). Federal regulation also expanded at
a very rapid pace.
These trends led to accelerating inflation. At the end of the
1960's inflation had risen sharply. In subsequent years, although
inflation declined occasionally following recessions, the underlying
trend was unmistakably upward. By the end of the decade, most
broad measures of inflation were rising by more than 10% a year.
All of these trends contributed to a general deterioration in the
performance of the American economy. From the late 1960's
through the end of the 1970's economic growth declined, productivity improvements slowed down, and, as a result, real incomes grew
more slowly. These trends are shown in the following table.
DETERIORATING ECONOMIC PERFORMANCE
(Average annual rates of growth)
Inflation *
1960-66
1967-73.. .
1974-81
1
2
Real GNP
Productivity 2
Real
average
hourly
earnings
Real
disposable
personal
income
1.8
4.7
8.0
4.5
3.5
2.4
3.3
2.4
0.8
1.7
1.6
-1.1
4.4
4.2
2.5
Implicit price deflator for GNP.
Private business sector.
First steps toward revived economic growth.—By 1980, the conviction was widespread that it was time for a change. Working with
Congress and the Federal Reserve, the administration embarked in
1981 on a program to reverse the unfavorable economic trends of
2-4
THE BUDGET FOR FISCAL YEAR 1985
the past decade, bringing inflation under control and rekindling
economic growth. Marginal personal income tax rates were cut
substantially to increase incentives for work, saving, investment,
and risk-taking. Depreciation allowances were liberalized to stimulate investment in plant and equipment. The expansion of Government regulations and of Federal spending was curtailed to provide
a more hospitable economic environment for private-sector growth.
The administration supported a Federal Reserve Board policy of
maintaining stable, moderate growth of the money supply, a policy
that has both helped curb inflation and reduced economic uncertainty.
ANNUAL INFLATION RATES
(Percent; 4th quarter over 4th quarter)
Consumer
Price
Index
GNP
deflator
1980
1981
1982
1983 .
10.2
8.7
4.4
4.1
12.6
9.4
4.5
2.9
Producer
Price
Index
12.4
7.3
3.6
0.9
Average
hourly
earnings
9.6
8.4
6.0
3.9
Although 1982 was a year of rising unemployment and declining
output, it was also the year in which the first positive effects of the
new policies became fully evident. The consumer price index rose
only 3.9% from December 1981 to December 1982, and the producer
price index only 3.7%, both about one-third the rate experienced
during the year before the administration took office, This moderation of inflation was accompanied by a sharp drop in interest rates
as inflationary expectations declined. Lower interest rates spurred
a recovery in housing—private housing starts increased 45% from
the cyclical low in the final quarter of 1981 to the fourth quarter of
1982.
SELECTED INTEREST RATES
(4th quarter averages)
91-day
Treasury
bills
1980
1981
1982
1983
13.6
11.8
7.9
8.8
Prime rate
16.7
17.0
12.0
11.0
20-year
Treasury
bonds
12.2
14.1
10.7
11.9
Mortgage
rate
(FHLMC)
14.3
17.8
14.0
13.5
Moreover, lower interest rates and improved prospects for economic growth resulting from the changes in economic policy led to
a strong upturn in the stock market beginning in August 1982. In
this more favorable economic environment, businesses were able to
2-5
ECONOMIC ASSUMPTIONS AND THE BUDGET
raise equity capital in the stock market and improve their balance
sheets by replacing short-term debt with long-term debt. In addition, household balance sheets improved sharply, largely because of
the surge in stock prices.
1983: The recovery.—The healthy economic developments in 1982
were the prelude to the vigorous growth of output and employment
last year. Residential construction was already moving strongly
upward at the start of 1983. After the first quarter, a broad surge
in consumer spending occurred, reflecting the improved financial
position of households and the faster growth of real disposable
income. The 5% growth of real disposable income last year arose
from sizable employment gains, a rise in real hourly earnings as
inflation continued to decelerate, and a 10% cut in marginal personal tax rates in July.
The increase in purchases of durable goods was especially pronounced. These purchases tend to be discretionary and are sensitive to interest rates. Sales of domestic automobiles jumped from
5.8 million units in 1982 to 6.8 million last year, while total automobile sales increased from 8.0 million in 1982 to 9.2 million in
1983. Sales of furniture and household appliances increased 11 V2%
in real terms, the largest four-quarter gain in a decade.
The willingness of consumers to spend reflected their optimistic
attitudes. The University of Michigan Index of Consumer Sentiment reached a 10-year high in the third quarter of last year and
remained at that level in the fourth quarter.
COMPONENTS OF REAL GNP
(Dollar amounts in billions of 1972 dollars)
1982:4 »
Real GNP
Consumption
Business fixed investment...
Residential investment
Inventory change
Net exports
Federal purchases
State and local purchases...
1
2
1983:4 2
$1,480.7
979.6
160.5
40.6
-22.7
23.0
124.4
175.2
$1570.5
1,032.2
178.9
56.1
7.5
2.5
116.9
176.3
Change
52.6
18.4
15.5
30.2
-20.5
-7.5
1.1
Percent
change
6.1
5.4
11.5
38.2
-6.0
0.6
Cyclical trough.
Preliminary.
The economic recovery became broadly based and firmly established in the second quarter when business capital spending also
turned upward. Following the normal cyclical pattern, investment
in new equipment recovered before investment in new structures,
but after mid-year both were increasing rapidly. The strength of
capital spending last year reflected a number of highly favorable
underlying factors: corporate profits increased more rapidly than
2-6
THE BUDGET FOR FISCAL YEAR 1985
at any other time since 1976; in addition, liberalized depreciation
allowances had reduced the cost of investment and increased aftertax profits. Responding to the improved business prospects, equity
markets strengthened, enabling firms to raise capital; and the capacity utilization rate rose sharply, inducing firms to expand and
modernize plant and equipment. Improved profits were achieved
without upward pressure on prices; instead, there was a significant
deceleration of unit labor costs as productivity rose while nominal
wage increases slowed. Real earnings increased, however, despite
the deceleration in nominal wages, because of the even more rapid
fall in the rate of inflation.
UNIT PRICES, COSTS, AND PROFITS: NONFINANCIAL CORPORATE SECTOR
(Percent change; fourth quarter to fourth quarter)
Unit prices *
1980
1981
1982
1983
Unit costs 2
11.6
9.2
3.6
3.6
11.9
8.7
5.8
-0.7
Profit
margins 3
8.0
14.2
-20.1
65.2
Total
profits 4
7.0
16.4
-23.3
78.4
1
2
3
The implicit price deflator for gross domestic product of nonfinancial corporate business.
Labor and interest charges plus non-factor costs (e.g., depreciation) divided by real output of nonfinancial corporate sector.
Pre-tax profits (with inventory valuation and capital consumption adjustments) of nonfinancial corporate business divided by output in 1972
dollars.
4
Pre-tax profits (with inventory valuation and capital consumption adjustments) of nonfinancial corporate business.
Rising final sales and the improved financial position of businesses enabled firms to rebuild inventories. In fact, the swing from
massive inventory liquidation in late 1982 to accumulation a year
later accounted for 34% of the increase in real GNP during the
year. Despite the restocking, inventories still remained very low in
relation to rapidly growing sales at the end of 1983, which is one
element suggesting that production and employment will continue
to expand strongly in the months ahead.
A less favorable development during 1983 was the 1 to 1V2 percentage point rise in most interest rates during the last half of the
year. Several factors underlay the rise. One was brisk economic
activity, which increased private credit demands, in conjunction
with large current Federal borrowing. Second, short term interest
rates increased as monetary policy became less accommodating
after May when the Federal Reserve became concerned about the
effects of continued high rates of growth of the monetary aggregates on future inflation and inflationary expectations. Third, continuing concerns in financial markets about the prospects of large
future Federal deficits tended to prevent long-term interest rates
from declining along with the decline in current inflation.
A significant area of weakness last year was the foreign trade
sector. Real net exports of goods and services fell $20.5 billion
during 1983? with virtually all of the deterioration occurring in
merchandise trade. U.S. merchandise exports increased very little
2-7
ECONOMIC ASSUMPTIONS AND THE BUDGET
in real terms during the year, while real merchandise imports
other than petroleum climbed nearly 30%. These adverse trends
can be attributed primarily to the sharp appreciation of the dollar.
On a multilateral, trade-weighted basis, the dollar has risen 50%
since 1980, of which 10% occurred during 1983.
Underlying the high value of the dollar during 1983 was the
confidence in U.S. economic policies, especially in curbing inflation,
and the higher real rates of return available on dollar-denominated
assets. Heightened political and financial uncertainties abroad
caused foreigners' asset preferences to shift in favor of the dollar.
U.S. exports were also hampered by the sluggish recovery in other
industrialized countries and by programs to curtail imports in several debtor countries, especially in Latin America.
Foundation for a sustained expansion.—Last year provided sub-
stantial evidence of a break from the pattern of stagflation and
subnormal productivity growth that characterized the 1970's. A
foundation for lasting recovery is now in place. It consists of markedly reduced inflation and inflationary expectations, curtailed
growth of real Federal spending, a restructured tax system that
improves incentives, and a reduction in Federal regulatory interference in the economy. If the new policies are maintained consistently, the recent favorable economic trends are likely to strengthen
and persist in the years ahead.
The most significant accomplishment is the unwinding of inflation over the past two years. From the early 1960's to the early
1980's, prices and wage rates persistently ratcheted upward from
one business cycle to the next, with each economic recovery beginning at a significantly higher rate of inflation than its predecessor.
GROWTH OF PRICES AND NOMINAL WAGES: FIRST YEAR OF RECOVERY
(Percent change)
GNP deflator
Trough:
1961:1
1970:1V
1975:1
1980:111
1982:1V
Average
hourly
earnings
CPI
2.0
0.9
4.7
59
3.5
64
93
4.1
10.8
2.9
N
A
6.7
7.1
9.1
3.9
This pattern was broken last year. Rates of increase in prices
and nominal wages were even lower than those that followed the
last three recessions.
In the future a new fundamental factor will work to prevent a
renewal of inflation. This new factor is a drastic reduction in
inflationary expectations, resulting from the achievement of much
420-000 O - 84 - 3 : QL 3
2-8
THE BUDGET FOR FISCAL YEAR 1985
lower inflation and the demonstrated commitment of the administration and the Federal Reserve to control future inflation. It appears that labor and management have begun to realize that inflationary contracts will not be validated by expansionary monetary
policy. These changes offer greatly improved long-range prospects
for price level stability as the recovery proceeds.
Like inflation, the growth of real Federal spending was accelerating until this administration came into office. Real outlays, which
increased at an average annual rate of 3.6% from 1960 to 1974,
rose at a 4.6% rate from 1974 to 1981. This excessive growth
diverted resources from private to public uses and reallocated resources within the private sector away from productivity-enhancing
capital spending to consumption. In the last two years, the administration has succeeded in slowing the growth of Federal spending.
Between 1981 and 1985, real outlays rise at only a 3.5% average
annual rate, even lower than during the 1960-74 period. In light of
the increased public awareness of the need to restrain the growth
of Government, it is likely that this newer, slower spending path
will be continued.
Indexation of personal income tax brackets starting in 1985 will
also increase the pressure to restrain Federal spending and will
remove any incentive for policy-makers to acquiesce to inflation
because it raises taxes through bracket creep. In the 1970's bracket
creep pushed up tax receipts faster than the growth of personal
income. Indexing means that future increases in Federal individual
income taxes as a share of personal income (unless they stem from
real income gains) will require explicit legislation.
The tax law changes enacted in the past two years have increased incentives for working and saving. Marginal tax rates have
been cut, allowing individuals to keep more of the return from
their work and their saving. The accelerated cost recovery system
(ACRS) significantly shortened depreciation periods, raising the
return on business investment by lowering the after-tax cost of
capital. Corporate cash flow after taxes may be increased by a total
of $200 billion between 1984 and 1989 because of ACRS. This stimulus to expansion and modernization of our capital stock will help
raise productivity and economic growth.
Consumers and businesses are now well placed to increase spending, in part because of their improved financial health. By late
1983, the debt burden of the household sector, as indicated by the
ratio of consumer installment credit outstanding to personal disposable income was 15% below its 1979 peak. Moreover, the 50% gain
in the stock market from mid-1982 has raised household net worth
by half a trillion dollars. The stock market revival also has provided firms with an important source of capital. Corporations
raised nearly $50 billion through gross new equity issues last year,
ECONOMIC ASSUMPTIONS AND THE BUDGET
2-9
about double the amount raised in 1981. This has contributed to
restructuring and strengthening of corporate balance sheets. By
the third quarter of 1983, corporate liquidity, as measured by the
quick ratio (cash and other liquid assets to short-term liabilities),
had risen a substantial 23% from its low point in the first quarter
of 1982 to reach the highest level in 6 years. The improvement
reflects the recovery of profits and a shift toward equity and longterm debt financing as interest rates declined.
The prospect for productivity growth is more favorable now than
in many years. The factors underlying the slowdown in productivity growth during the 1970's are not completely understood, but it
is likely that the unfavorable economic environment of that
period—accelerating inflation, two oil price shocks, increased regulation, sluggish output growth, and cyclical instability—was a principal cause. Rapid and unpredictable inflation distorted price signals, heightened uncertainty about the future, and encouraged
speculative investments. The oil price shocks sharply increased the
price of energy, raised inflation, reduced growth, and made some
capital stock obsolete. Slow economic growth and three recessions
in the past decade inhibited investment in new plant and equipment, and also in research and development. Furthermore, proliferating Government regulations tended to divert businesses' resources away from productivity-enhancing investment. In contrast,
the administration's policies to curtail inflation, slow the growth of
Government spending, reduce taxes, reduce burdensome regulations, and promote private-sector initiative have created a climate
that fosters and rewards improvements in productivity.
When productivity is growing, real wages can rise even though
nominal wages are rising much less rapidly than in the recent
past. This occurred last year as real wages rose for the second year
in a row (following 4 years of declines) despite slowly rising nominal wages, because inflation was even lower. As the recovery proceeds, improved productivity will make possible further steady advances in real wages.
ECONOMIC ASSUMPTIONS
The economy and the budget are interrelated. Budget receipts
and outlays depend directly on the level of economic activity, inflation, interest rates, unemployment, and other economic factors.
Likewise, both budget outlays and the tax structure have substantial effects on the state of the economy—output, employment, and
interest rates. In estimating budget receipts and outlays for future
years, therefore, the economic assumptions underlying the estimates must be clearly specified.
The accompanying two tables show the economic assumptions
that underlie the estimates in this budget. The first table shows
2-10
THE BUDGET FOR FISCAL YEAR 1985
SHORT-RANGE ECONOMIC FORECAST
(Calendar years; dollar amounts in billions)
Item
Major economic indicators:
Gross national product, percent change, fourth quarter over
fourth quarter:
Current dollars
Constant (1972) dollars
GNP deflator (percent change, fourth quarter over fourth
quarter)
Consumer Price Index (percent change, fourth quarter over
fourth quarter) 2
Unemployment rate (percent, fourth quarter) 3
Annual economic assumptions:
Gross national product:
Current dollars:
Amount
Percent change, year over year
Constant (1972) dollars:
Amount
Percent change, year over year
Incomes:
Personal income
Wages and salaries
Corporate profits
Price level:
GNP deflator:
Level ( 1 9 7 2 = 1 0 0 ) , annual average
Percent change, year over year
Consumer Price Index: 2
Level ( 1 9 6 7 = 1 0 0 ) , annual average
Percent change, year over year
Unemployment rates:
Total, annual average 3
Insured, annual average 4
Federal pay raise (percent) 5
Interest rate, 91-day Treasury bills (percent) 6
Interest rate, 10-year Treasury notes (percent)
Forecast
Actual
1982
1983 *
1984
1985
2.6
-1.7
10.4
6.1
9.8
4.5
8.9
4.0
4.4
4.1
5.0
4.7
4.5
10.5
2.9
8.4
4.5
7.7
4.7
7.5
3,073
4.0
3,309
7.7
3,642
10.1
3,974
9.1
1,485
-1.9
1,535
3.3
1,616
5.3
1,682
4.1
2,579
1,568
174
2,742
1,664
205
2,978
1,802
255
3,224
1,946
292
206.9
6.0
215.6
4.2
225.4
4.5
236.2
4.8
288.6
6.0
297.4
3.0
310.4
4.4
324.6
4.6
9.5
4.7
4.0
10.7
13.0
9.5
3.8
7.8
3.3
3.5
8.5
10.3
7.6
3.3
3.5
7.7
9.2
8.6
11.1
1
2
Preliminary actual data.
CPI for urban wage earners and clerical workers. Two versions of the CPI are now published. The index shown here is that currently used,
as required by law, in calculating automatic cost-of-living increases for indexed Federal programs. The manner in which this index measures
housing costs will change significantly in 1985.
3
Percent of total labor force, including armed forces residing in the U.S.
4
This indicator measures unemployment under State regular unemployment insurance as a percentage of covered employment under that
program. It does not include recipients of extended benefits under that program.
5
In 1984 and 1985, general schedule and military pay raises occur in January. The military pay raises are 4.0% and 5.5%, respectively. An
October 1985 pay raise of 5.6% (military and general schedule) is projected.
6
Average rate on new issues within period, on a bank discount basis. These projections assume, by convention, that interest rates decline with
the rate of inflation. They do not represent a forecast of interest rates.
the short-range economic forecast through 1985; the second table
shows the long-range assumptions underlying the 4-year budget
projections. The common practice is followed in showing these assumptions for calendar years, rather than fiscal years.
2-11
ECONOMIC ASSUMPTIONS AND THE BUDGET
LONG-RANGE ECONOMIC ASSUMPTIONS
(Calendar years; dollar amounts in billions)
Assumptions
1987
Major economic indicators:
Gross national product, percent change, fourth quarter
over fourth quarter:
Current dollars
Constant (1972) dollars
GNP deflator (percent change, fourth quarter over
fourth quarter)
Consumer Price Index (percent change, fourth quarter
over fourth quarter) x
Unemployment rate (percent, fourth quarter) 2
Annual economic assumptions:
Gross national product:
Current dollars:
Amount
Percent change, year over year
Constant (1972) dollars:
Amount
Percent change, year over year
Incomes:
Personal income
Wages and salaries
Corporate profits
Price level:
GNP deflator:
Level ( 1 9 7 2 = 1 0 0 ) , annual average
Percent change, year over year
Consumer Price Index.-x
Level (1967 = 100), annual average
Percent change, year over year
Unemployment rates:
Total, annual average 2
Insured, annual average 3
Federal pay raise, October (percent) 4
Interest rate, 91-day Treasury bills (percent) 5
Interest rate, 10-year Treasury notes (percent)
1989
8.6
4.0
8.3
4.0
8.0
4.0
7.4
3.8
4.4
4.1
3.8
3.5
4.4
7.2
4.1
6.5
3.8
5.8
3.5
5.7
4,319
8.7
4,681
8.4
5,059
8.1
5,445
7.6
1,750
4.0
1,820
4.0
1,892
4.0
1,966
3.9
3,503
2,109
318
3,782
2,296
355
4,055
2,496
377
4,358
2,708
391
246.9
4.5
257.3
4.2
267.4
3.9
277.0
3.6
339.3
4.5
353.6
4.2
367.4
3.9
380.6
3.6
7.3
3.2
5.8
7.1
8.6
6.8
2.8
5.5
6.2
7.2
6.1
2.4
5.3
5.5
6.1
5.7
2.2
5.1
5.0
5.5
1
CPI for urban wage earners and clerical workers. Two versions of the CPI are now published. The index shown here is that currently used,
as 2
required by law, in calculating automatic cost-of-living increases for indexed Federal programs.
Percent of total labor force, including armed forces residing in the U.S.
3
This indicator measures unemployment under State regular unemployment insurance as a percentage of covered employment under that
program. It does not include recipients of extended benefits under that program.
4
General schedule pay raises normally become effective in October—the first month of the fiscal year. Thus, the October 1986 pay raise will
set 5new pay scales that will be in effect during fiscal year 1987.
Average rate on new issues within period, on a bank discount basis. These projections assume, by convention, that interest rates decline with
the rate of inflation. They do not represent a forecast of interest rates.
The current services estimates displayed in the budget are based
on these same economic assumptions. Permitting the budget to
proceed on a current services basis—that is, with no future policy
action to change program spending or receipts—would change significantly the economic performance from what is assumed for the
budget. However, the convention of basing both the budget estimates and the current services estimates on a common set of
economic assumptions limits their differences to the direct effects
of proposed policy actions. This enhances the ability of the current
services estimates to serve their purpose as a baseline against
which to measure the budgetary effects of policy proposals.
2-12
THE BUDGET FOR FISCAL YEAR 1985
The outlook to 1985.—While last year was one of economic recovery, 1984 should be one of solid expansion built upon the foundations discussed in the previous section. Real GNP is expected to
grow 4.5% during the four quarters of 1984, not significantly different from the Blue Chip consensus forecast of 4.3%. For 1985, real
growth is forecast to moderate to 4.0%.
The forecast for 1984 projects a substantial rise of nearly 12% in
real business fixed investment, following a 9.6% increase over the
four quarters of 1983. This reflects continued strength in equipment expenditures and an increase, which is already underway, for
investment in nonresidential structures. Investment will continue
to lend strength to 1985 growth. State and local purchases should
also contribute to real GNP growth this year. There was significant
improvement in State and local government financial positions in
1983. The operating account surplus changed from an annual average of $3 billion in 1979-1982 to $15 billion in 1983, as continued
austerity measures curtailed expenditures while an expanding
economy and, in some instances, tax legislation increased receipts.
On the other hand, some slowdown in the growth of personal
consumption expenditures, residential construction, and inventory
investment is expected this year, as would be normal in a second
year of recovery.
The total unemployment rate, which fell sharply in the second
half of 1983, is expected to decline steadily, though less rapidly,
during 1984 as output growth settles to a more sustainable pace.
The forecast shows the unemployment rate at 7.7% in the final
quarter of this year.
Short-term interest rates, as measured by the 91-day Treasury
bill rate, are projected to decline moderately. This reflects a lowering of inflationary expectations in response to the demonstrated
resolve of the administration and the Federal Reserve to keep
money growth and inflation under control.
Longer-range economic assumptions.—In contrast to the nearterm economic forecast for 1984 and 1985, the long-range assumptions for the 1986-1989 period are not forecasts of future economic
conditions. Instead, they are trend projections, consistent with the
economic policies and economic policy objectives of the administration, that assume steady progress in sustaining economic growth
and in reducing inflation, interest rates, and unemployment. It is
assumed that the rate of growth of the money supply will gradually decline and that the administration's 1985 fiscal policy proposals, and future deficit-reduction measures, will be enacted.
Real GNP is projected to grow at a 4.0% annual rate from 1986
through 1988, but to moderate to 3.8% in 1989. Consistent with this
trend growth of real output, the total unemployment rate is expected to fall gradually and to reach 5.7% in 1989.
2-13
ECONOMIC ASSUMPTIONS AND THE BUDGET
Inflation, as measured by the GNP deflator, is forecast to increase somewhat, to 5.0% in 1984 (on a fourth-quarter to fourthquarter basis), and is projected to decline gradually to 3.5% by
1989. This downward trend in the rate of inflation over an extended period of sustained economic expansion is predicated on the
resolute commitment of the Federal Reserve and the administration to reduce gradually the rate of growth of the money supply. It
is assumed that lower inflation will be accompanied by lower interest rates.
These long-range assumptions for real growth are comparable
with historical experience. The present expansion began from a
cyclical trough in the fourth quarter of 1982, and the economic
assumptions extend 7 years from that date to the fourth quarter of
1989. Real GNP growth is projected to average 4.3% during this
period. This is only a little higher than the average 3.8% growth
during the 25 years between the cyclical peaks in the last quarter
of 1948 and the last quarter of 1973, a period that excludes the
sluggish economic activity and rapid inflation during most of the
1970's.
The real GNP growth projected for the 7-year period beginning
with the last quarter of 1982 is also comparable with the real GNP
growth in the first 7 years following previous postwar recessions.
This is shown in the next table. The 4.3% average growth projected
for the current period is only slightly above the average 4.0% real
growth in the corresponding 7-year periods after previous recessions. Three of the earlier periods had higher growth and three had
lower growth. This comparison is only suggestive, in part because
the earlier periods overlap in certain years, which causes some
double counting. However, it does imply that the current projection
is in line with what has occurred before.
CHANGE IN REAL GNP AND INFLATION DURING 7 YEARS FOLLOWING CYCLICAL TROUGHS
Recession trough
Average annual rate of increase
(percent)
(teal GNP
1949-4
1954-2
1958-2
1961:1
1970:4
1975:1
4.7
3.0
4.6
5.0
3.6
3.0
Average
1982-4
1
GNP deflator
Projected.
2.8
2.2
1.7
2.2
6.3
7.5
4.0
M.3
3.8
M.2
2-14
THE BUDGET FOR FISCAL YEAR 1985
CYCLICAL AND STRUCTURAL COMPONENTS OF THE
DEFICITS
Generally, Federal deficits tend to rise in recessions and to
shrink during recoveries. The two back-to-back recessions beginning in early 1980 pushed the unemployment rate to a postwar
high of over 10% at the end of calendar year 1982, and contributed
substantially to the large deficit—approaching $200 billion for
fiscal year 1983. Although a cyclical downturn pushed the deficit
up, it is incorrect to assume that economic recovery will, by itself,
eliminate the deficit. The comforting assumption that the deficits
will disappear, more or less "automatically," as recovery proceeds
is not warranted.
Budget projections on a current services basis—that is, assuming
no further policy actions to curb spending growth or increase receipts—indicate that deficits will remain near the $200 billion level
even after the economy has returned to lower levels of the unemployment rate, below 6% in 1989. At that time economic recovery
will have completed its contribution to deficit reduction. Attempts
to achieve still lower levels of unemployment by monetary stimulus would be likely to lead to a reacceleration of inflation and an
end to sustainable economic recovery, so projected deficits at this
level of unemployment are not "cyclical" or temporary. They are
permanent or structural and will persist unless determined policy
actions are taken to eliminate them.
The growing structural deficit problem has its roots in the strong
momentum of Federal spending increases, and in the debilitating
economic policies of the 1970's, which stunted the economy's ability
to grow. The excessive momentum of domestic spending programs
in the late 1970's was partially masked by serious underfunding of
our defense effort. The need to restore defense funding to more
adequate levels, combined with rapidly growing interest costs (both
as a result of deficits, which add to the outstanding debt, and
because of high interest rates), will keep outlays growing in line
with receipts. As a result, a substantial current services deficit is
projected, even after a sustained economic recovery.
If no policy actions were taken to reduce them, these large
current services deficits would pose serious economic problems. If
they are financed by money creation, they will renew inflation and
again bring on the inefficiencies, misdirection of resources, and
cyclical instability that led to the stagnant growth and recessions
of the 1970's. If they are not monetized, then the credit demands of
the Federal Government will crowd out productive private investment. This would inhibit economic growth by generating excessive
real interest rates. Excessive Federal borrowing also adds to the
Nation's trade deficit and causes problems for U.S. exporters and
for domestic industries that must compete with imports. All of
2-15
ECONOMIC ASSUMPTIONS AND THE BUDGET
these effects are harmful to the long-run growth and well-being of
the Nation.
CHANGES IN THE BUDGET OUTLOOK SINCE LAST YEAR
In December 1982, the unemployment rate was reported at
10.7%, and the 1984 budget, submitted in January 1983, forecast
that it would average 10.7% during 1983 and 9.9% during 1984. In
fact, it averaged 9.5% during 1983 and had fallen to 8.1% in
December 1983. It is now projected to average 7.8% during 1984—
over two percentage points lower than was forecast a year ago.
Real economic growth was forecast in last year's budget at 3.1%
from the fourth quarter of 1982 to the fourth quarter of 1983. In
fact, it was 6.1%. Over the same period, inflation, as measured by
the GNP deflator, was forecast at 5.6%. In fact, it was 4.1%.
COMPARISON OF JANUARY 1983 AND CURRENT ECONOMIC ASSUMPTIONS
(Calendar years; dollar amounts in billions)
1983
Nominal GNP:
1983 forecast1
1984 forecast
Real GNP (percent change):
1983 forecast
1984 forecast
GNP deflator (percent change):
1983 forecast
1984 forecast
Interest rate on 91-day Treasury bills (percent):
1983 forecast
1984 forecast
,.
Unemployment rate (percent):
1983 forecast
1984 forecast
1
1984
1985
1986
1987
1988
3,262
3,309
3,566
3,642
3,890
3,974
4,232
4,319
4,599
4,681
4,996
5,059
1.4
3.3
3.9
5.3
4.0
4.1
4.0
4.0
4.0
4.0
4.0
4.0
5.2
4.2
5.2
4.5
4.9
4.8
4.6
4.5
4.5
4.2
4.4
3.9
8.0
8.6
7.9
8.5
7.4
7.7
6.8
7.1
6.5
6.2
6.1
5.5
10.7
9.5
9.9
7.8
8.9
7.6
8.1
7.3
73
6.8
6.5
6.1
Adjusted for July 1983 historical revisions.
These, and other better-than-expected economic indicators, have
substantially improved the budget outlook since last year. The
above table contrasts the current forecast with last year's in terms
of annual averages. It shows real GNP growth substantially higher
in 1983 and 1984 than was projected last January, and the unemployment rate substantially lower in all years. Inflation is significantly lower in 1983 and 1984, but nominal GNP is nonetheless $84
billion higher in 1985 than last year's projection. The Treasury bill
rate, on the other hand, is 0.6 percentage points higher in both
1983 and 1984 than in last year's forecast.
The table below indicates the estimated magnitude of the improvement in the budget outlook resulting from better economic
performance during 1983 and the changed economic outlook for the
years ahead. The addendum separates these two elements of
2-16
THE BUDGET FOR FISCAL YEAR 1985
change, showing that the better-than-anticipated 1983 performance
accounts for most of the improvement.
EFFECTS OF THE BUDGET OF CHANGES IN ECONOMIC ASSUMPTIONS SINCE LAST YEAR
(Fiscal years; in billions of dollars)
1986
1987
1988
721.6
954.0
790.1
1,013.8
862.7
1,091.2
954.3
1,162.5
-229.2
-232.4
-223.6
-228.4
-208.2
18.4
23.5
24.8
25.1
24.0
-3.2
-10.6
5.5
-2.6
-10.9
-5.1
-8.3
5.1
-5.5
-13.7
-5.7
-4.9
5.8
-8.1
-12.9
-6.2
-3.0
4.0
-10.4
-15.7
-7.6
-1.9
-2.1
-12.9
-24.5
29.3
37.2
37.7
40.7
48.5
670.1
870.0
745.1
940.3
814.9
1,000.9
887.8
1,075.5
978.3
1,138.0
-199.9
-195.2
-185.9
-187.7
-159.7
27.4
1.9
(94)
32.7
4.5
(88)
37.5
0.2
(99)
41.8
-1.1
(103)
46.4
2.1
(96)
1984
1985
651.7
880.9
Current budget estimates1 adjusted to January 1983
forecast:
Outlays
Deficit ( - )
Changes due to economic assumptions:
Receipts
Outlays:
Inflation
Unemployment
Interest rates
Interest on changes in borrowing..
Total, outlays
Decrease in deficit ( + )..
Current budget estimates:x
Receipts
Outlays
Deficit ( - )
Addendum:
Change in deficit due to-.
Actual 1983 economic performance
Change in the forecast for 1984-1988
Percent due to 1983 economic performance..
1
Includes off-budget outlays.
Improvement in the economy and in the budget outlook since
January 1983 has not compensated for the declines that had by
then occurred from the forecast in the March 1981 budget revisions,
as shown below. The 1981 forecast, like most private forecasts at the
time, did not anticipate the 1981-1982 recession. Further, it assumed
that the velocity of money and, thus, nominal GNP (and receipts)
would grow more rapidly in the out years (then 1983-1986) than is
now assumed.
EFFECTS ON THE DEFICIT OF CHANGES IN ECONOMIC ASSUMPTIONS SINCE MARCH 1981
(Fiscal years; in billions of dollars)
1982
Increase in deficit, March 1981-January
1983
Decrease in deficit, January 1983-January
1984
Net increase in deficit, March
1981-January 1983
1983
1984
1985
1986
70.0
167.3
197.7
224.6
252.3
-11.8
70.0
-29.3
37.2
-37.7
155.5
168.4
187.4
214.6
ECONOMIC ASSUMPTIONS AND THE BUDGET
2-17
SENSITIVITY OF THE BUDGET TO ECONOMIC
ASSUMPTIONS
The budget estimates are based upon and sensitive to the economic forecast. The sensitivity of the budget aggregates to economic conditions seriously complicates budget planning because
forecasting the economy inaccurately leads to forecasting the budget
inaccurately, and economic forecasting is not an exact science.
The relationship between the economic forecast and budgetary
estimates is not a simple one. Last year the budget presented a set
of rules-of-thumb that were designed to assist in rough calculations
of the effects on the budget of changes in the economy. Incautiously applied, however, such rules-of-thumb can be quite misleading.
For example, a 1 percentage point increase in the real growth rate
will have one effect on the budget estimates if no change in nominal GNP growth is assumed, and a different effect if it causes a 1
percentage point increase in nominal GNP growth. In the latter
case, receipts will rise more than they would if nominal growth
were unchanged. Similarly, a 1 percentage point change in inflation will have a different effect if it takes place with unchanged
nominal growth than if there is no change in real growth.
Another example is the effect of a 1 percentage point change in
the unemployment rate. By and of itself, a change in unemployment, with no other effect on the economy, has a relatively small
impact on the budget, changing only unemployment-sensitive outlays. Typically, however, a decline in unemployment is associated
with a rise in real GNP. If that typical relationship is assumed, a
one percentage point decline in unemployment is associated with a
rise in real GNP of slightly over 2%, which in turn will give rise
(absent any change in inflation) to a large increase in receipts.
Thus, indirectly, a change in unemployment can be associated with
a dramatic effect on the budget, although that effect depends on
the relationship between the unemployment change and the
growth of real output (not to mention the further question of
whether the increase in real GNP raises nominal GNP or simply
raises real GNP while causing inflation to decline).
In order to minimize the ambiguities associated with a set of
rules-of-thumb, all of which are only partial measures of a more
complex interrelationship, the estimated budgetary differences between two alternative economic projections are presented below.
Both assume the same growth in nominal GNP as in the basic
budget forecast. The optimistic forecast assumes 1 percentage point
higher real growth than in the budget assumptions starting in the
first quarter of 1985, with a corresponding decline in inflation at
that time. The pessimistic forecast assumes 1 percentage point
lower real growth beginning in 1985 than in the base forecast, with
a percentage point higher inflation. The pessimistic forecast fur-
2-18
THE BUDGET FOR FISCAL YEAR 1985
ther assumes that nominal interest rates do not decline after the
end of 1984. Thus, it is a forecast of slower real growth than is
assumed for the budget and higher real interest rates. The more
optimistic forecast has higher real growth, lower inflation, and
interest rates that decline faster than in the base forecast, in
keeping with the faster decline in inflation. The real interest rate
in the optimistic forecast is thus the same as in the basic budget
forecast.
EFFECT ON DEFICIT OF SHIFT IN THE COMPOSITION OF NOMINAL GNP
(Fiscal years; in billions of dollars)
1985
Administration forecast of total deficits.
Alternative deficit projections:*
Higher growth/lower inflation
Lower growth/higher inflation
1986
1987
1989
-195.2 -185.9 -187.7 -159.7 -128.2
-191.6 -172.2
-197.4 -198.5
-162.2
-218.5
-122.0 - 7 3 . 5
-216.5 -213.9
1
Alternative projections assume that the rates of growth of real GNP and inflation are changed in opposite directions and by 1 percentage
point, beginning in January 1985. Interest rates are assumed to be 1 percentage point lower than in the administration forecast in the first
alternative, but not to change after 1984 in the second.
The most complete and consistent estimate of the effect of
changes in the economy on the budget must come from a comparison of two complete and consistent detailed forecasts. Nonetheless,
rules-of-thumb that approximate the effect of a change in a single
economic variable can be useful. The rest of this section gives
estimates of the size of these effects. They are, of course, only
approximations. In general, the discussion is concerned with tax
and spending responses that are automatic under current law. The
rules-of-thumb assume that each measure of economic performance
can be shifted alone, and that the budgetary effects of changes in
several separate measures can be directly added to obtain the
overall effects of a set of changes.
Inflation.—Inflation has a direct impact on both Federal tax
collections and on Federal spending. Tax collections increase automatically as inflation swells various tax bases—corporate profits,
personal incomes, payrolls, and sales. Historically, the increase in
total receipts has been larger than the growth in incomes because
of the progressive individual income tax with exemptions and
brackets fixed. Beginning next year, however, the indexing to inflation of tax brackets, exemptions, and the zero-bracket amount will
reduce this effect.
At the same time, Federal spending in a variety of areas—such
as social security, other retirement programs, and medicare—also
increases automatically as a result of inflation. Outlay increases
may also occur in other areas, such as defense procurement, as a
result of congressional or executive action to maintain real program or benefit levels.
2-19
ECONOMIC ASSUMPTIONS AND THE BUDGET
The automatic increases in response to inflation differ in timing
and magnitude as between receipts and outlays. Tax collections
begin to rise almost immediately when inflation increases, in large
part due to withholding and estimated payments. For outlays, however, the lags are generally longer. Statutory cost-of-living benefit
increases occur at fixed intervals and are not paid until several
months after the price increases that trigger them. (Income tax
indexation will also occur with a lag.) Similarly, higher interest
rates that may accompany higher inflation are reflected only in
new debt issues and do not affect existing debt until it must be
refinanced.
The upper part of the table below shows the automatic effects of
a one percentage point rise in the inflation rate and in nominal
GNP growth on outlays and receipts in 1985 through 1989. Interest
rates are also assumed to be 1 percentage point higher. The effects
shown are those that would occur under current law. The increases
in outlays are for indexed programs, for interest costs, and for
medicare and medicaid, all of which respond automatically under
current law to price changes. If the rate of inflation and nominal
GNP growth is one percentage point higher than projected, beginning in January 1985, outlays in 1986 would be roughly $11V2
billion higher, and receipts would be $13 V2 billion higher, thus
reducing the deficit by $2 billion. The same rules-of-thumb apply in
reverse if inflation is lower than projected. To the extent that
discretionary programs are also adjusted for inflation, the outlay
increase would be higher and the reduction in the deficit would be
smaller.
SENSITIVITY OF THE BUDGET TO RATES OF ECONOMIC CHANGE
(Fiscal years, in billions of dollars, current law basis)
1985
Effect of a one percentage point change in annual
nominal GNP growth rate resulting from:
A one percentage point higher annual rate of
inflation (and interest rates) beginning January
1985:
Receipts
Outlays
Change in deficit
A one percentage point lower annual rate of real
growth beginning January 1985:
Receipts
Outlays
Change in deficit
1986
1987
1988
1989
3.7
3.6
13.4
11.4
23.9
18.3
37.0
25.0
51.4
30.3
-0.1
-2.0
-5.6
-12.0
-21.1
-3.2
1.0
12.9
3.7
-24.5
7.3
-38.5
11.4
-54.1
16.2
4.2
16.6
31.8
49.9
70.3
Some important qualifications should be noted. First, these estimates assume that real growth, productivity, and unemployment
2-20
THE BUDGET FOR FISCAL YEAR 1985
are unchanged. If the higher inflation is offset by reduced real
growth, the outlay increase would be higher and the receipts increase (if any) would be less, as can be seen by summing the receipt,
outlay and deficit effects in the upper and lower portions of the
table. There is little net change in receipts, but outlays increase
substantially, resulting in a $49 billion net increase in the 1989
deficit. The generally symmetrical nature of these results can be
seen by comparison with the opposite case of a percentage point
higher growth and lower inflation and interest rates presented earlier, which produced a $55 billion reduction in the 1989 deficit.
Second, these estimates reflect an increase in domestic prices
that is accompanied by a corresponding increase in domestic incomes. To the extent that the higher inflation is due to import
price increases (for example, due to a fall in the foreign exchange
value of the dollar) for which there are no corresponding increases
in domestic income, the increase in receipts would be less than is
shown.
Third, the receipts increase resulting from inflation is quite sensitive to how the inflation-induced growth in incomes is distributed
by type of income—wage and salary income, non-wage personal
income, and corporate profits, in particular, all of which are subject to different marginal Federal tax rates.
Finally, higher inflation would likely be accompanied by much
higher interest rates, perhaps more than the percentage point per
percentage point increase assumed here, which would also add
significantly to outlays.
Because of the program-by-program variation in the timing of
automatic cost-of-living increases under existing law, the outlay
effect of increases in the consumer price index (CPI) on indexed
programs will differ depending upon their timing. Outlays in 1985,
for example, will be most affected by CPI increases for the year
between the third quarter of calendar year 1983 and the third
quarter of calendar year 1984. The rise in the CPI during this
period will determine, under current law, the January 1985 cost-ofliving increases for social security, supplemental security income,
railroad retirement, and veterans pensions. Subsequent CPI increases will not increase outlays for these programs until January
1986.
Each percentage point increase in the CPI by the third quarter
of calendar year 1984 increases fiscal year 1985 outlays for indexed
programs by $2.5 billion. The fiscal year 1985 outlay effect resulting from CPI increases after the third quarter of calendar year
1984 will be substantially smaller.
These estimated effects of higher prices are conservative because
they do not include additional spending for other price-sensitive
programs such as medicare and medicaid. Nor do they include
ECONOMIC ASSUMPTIONS AND THE BUDGET
2-21
increases that may result from congressional or executive action to
maintain real program or benefit levels for discretionary programs.
Real GNP grow ^.—Differences from anticipated levels of real
GNP can also affect the budget substantially. Lower real GNP
growth, by itself (with no change in the rate of inflation), would
reduce personal and corporate incomes and therefore lower receipts. Since lower real GNP growth is accompanied by higher
unemployment (unless productivity growth is reduced equally), outlays for unemployment-sensitive programs would be increased. A
one percentage point lower real growth rate beginning in January
1985, with no change in inflation, would raise outlays in fiscal year
1986 by about $3V2 billion, reduce receipts by $13 billion, and increase the deficit by $16 V2 billion as shown in the lower part of the
preceding table. These effects are generally symmetrical; they
would be of about the same magnitude but opposite sign for a
percentage point higher real growth.
Unemployment—Higher unemployment leads directly to higher
unemployment benefits with almost no lag, It also raises outlays
for certain other programs, such as social security, food stamps,
and public assistance, which have more beneficiaries when unemployment rises. Outlays for the latter programs generally increase
with some lag. A one percentage point rise in the unemployment
rate would add an estimated $4.9 billion to 1985 outlays with about
two-thirds of the increase being for unemployment benefits.
Over time the unemployment rate has tended to follow real GNP
growth, with a percentage point lower unemployment rate generally associated with about a 2.1 percentage point higher level of real
GNP. If inflation were to be unchanged, nominal GNP would rise
by the same percentage, or by about $82 billion for 1985. With
Federal taxes having an effective marginal rate on real-growthinduced increases in GNP of about 24 or 25%, this implies an
increase in receipts of about $20 billion. Together with a $5 billion
decline in unemployment-sensitive outlays, this further implies a
$26 billion decline in the deficit associated with a one percentage
point decline in the unemployment rate, if it is associated with a
"corresponding" increase of 2.1% in real GNP and there is no
change in inflation.
It is important to note that the sharp drop in the unemployment
rate that occurred in 1983 was much greater than would have been
expected on the basis of the "normal" relationship to real GNP
growth in that year, and thus was not associated with as large an
increase in receipts as would ordinarily be expected.
Interest rates.—Additional outlays resulting from higher interest
rates occur only for new borrowing and not for existing debt until
2-22
THE BUDGET FOR FISCAL YEAR 1985
it has to be refinanced. Thus, the outlay effect of a sustained
interest rate change increases over time as more and more securities are issued at the higher or lower rates. The timing of the effect
therefore varies with the term structure of the public debt. Currently, about half of the marketable debt held by the public turns
over for refinancing within 15 months, and three-quarters within 5
years. Some will not be refinanced for 30 years. A one percentage
point increase in all interest rates beginning January 1, 1984,
would increase fiscal year 1985 outlays for net interest by $7.1
billion. A one percentage point increase beginning July 1, 1984,
would increase 1985 outlays by $5.7 billion. However, long-term
and short-term interest rates do not always move together, as is
assumed for these estimates.
Changed economic conditions also affect interest outlays by
changing the deficit and therefore the amount the Treasury needs
to borrow. Based on the interest rate assumptions used in this
budget, a $100 billion 1985 deficit increases 1985 net interest outlays by roughly $5.2 billion. The 1986 (full year) outlay effect of
this 1985 deficit would be nearly double this magnitude, or $9.4
billion.
Federal pay raises.—Each additional percentage point increase in
Federal pay adds about $1 billion to outlays, with about 40% going
to the military, one-fourth to civilian employees in the Department
of Defense, and one-third to employees of civilian agencies.
Changes in sensitivity.—In recent years, legislative changes, administrative reforms, and economic developments have reduced the
acute sensitivity of the budget to economic assumptions. Indexation
of the individual income tax brackets, to begin in 1985, is a major
example; it will reduce the growth in receipts in response to inflation-induced increases in nominal incomes. Unemployment insurance extended benefits now only trigger on State by State, not
simultaneously nationwide, which reduces the overall sensitivity of
unemployment compensation to the national unemployment rate.
This, together with a lower responsiveness of insured unemployment to overall unemployment in recent years, has significantly
reduced the sensitivity of unemployment compensation to the unemployment rate in the past several years.
Stricter eligibility standards and policing against waste, fraud
and abuse have somewhat reduced the estimated sensitivity of such
programs as food stamps and public assistance to unemployment.
At the same time, elimination of twice-a-year cost-of-living adjustments for Federal employee retirement, food stamps, and other
programs reduces the rapidity with which their outlays rise in
response to inflation. The delays in cost-of-living adjustments proposed in this budget, of course, would also reduce the near-term
2-23
ECONOMIC ASSUMPTIONS AND THE BUDGET
sensitivity of the budget to economic assumptions—though only on
a one-time basis.
SENSITIVITY OF THE BUDGET TO ECONOMIC ASSUMPTIONS
(Fiscal years; in billions of dollars)
1984
1985
1986
1987
1988
1989
PRICES (EFFECT ON INDEXED PROGRAM OUTLAYS)
Sustained one percentage point higher rate of
inflation beginning:
Under current law:
January 1984
July 1984
Under proposed law:
January 1984
July 1984
One-time one percentage point jump in price
level occurring:
Under current law:
January 1984
July 1984
Under proposed law:
January 1984
July 1984
1.2
0.4
3.9
2.6
7.0
5.7
10.5
9.1
14.3
12.8
1.3
0.4
3.9
2.6
7.0
5.6
10.5
9.1
14.2
12.8
1.7
1.6
2.6
2.6
2.6
2.7
2.8
2.8
2.8
2.8
1.9
1.8
2.6
2.6
2.7
2.7
2.8
2.8
2.8
2.8
7.1
5.7
10.3
9.5
13.5
13.1
16.5
16.0
18.1
18.0
5.2
9.4
9.3
8.7
8.1
3.1
1.8
3.0
2.0
2.8
2.0
2.7
2.0
2.5
2.0
0.4
0.5
0.5
0.5
0.2
0.3
-0.1
0.3
0.3
-0.1
0.3
0.4
-0.1
0.3
0.4
-0.1
INTEREST RATES (EFFECT ON NET INTEREST)
Sustained one percentage point increase in
interest rates under budget policy deficits, beginning: 1
January 1,1984
July 1, 1984
2.2
0.3
INTEREST COST OF HIGHER FEDERAL BORROWING
Effect of $100 billion borrowing in 1985 2
UNEMPLOYMENT RATE
One percentage point higher rate beginning
January 1, 1984:
Unemployment benefits
Other unemployment-sensitive outlays
2.5
1.0
FEDERAL PAY RAISES
Outlay effect of one percentage point increase
in October 1985:
Military personnel
Civilian employees:
Department of Defense
Civilian agencies
Employer share, employee retirement
1
2
Omits increase in receipts due to higher Federal Reserve System deposits of earnings.
Includes subsequent interest on borrowing incurred to pay for previous interest costs.
420-000 0 - 84 - 4 : QL 3
PART 3
BUDGET PROGRAM
AND TRENDS
3-1
BUDGET PROGRAM AND TRENDS
The President's 1985 budget embodies four major elements:
• a continued freeze on real domestic spending growth and
further progress in the remarkable reduction in domestic
spending relative to GNP that has been under way since 1981;
• continued realignment of national budget priorities toward
defense, international security, and other core purposes of
Government;
• modest further domestic programmatic budget savings totaling $62 billion over 1985-89 that can and should be adopted
by this Congress; and
• a total spending burden on the U.S. economy (share of GNP)
that is coming down from the recession peaks, but which is
still too high and which defines the spending control challenge for 1985 and beyond.
The Dramatic Halt in Domestic Spending Growth
After three budget rounds, the explosive domestic budget growth
of the three decades prior to 1980 has clearly been contained.
Constant dollar domestic spending doubled between 1954 and 1961;
doubled again by 1971; and nearly doubled again by 1981. But after
completion of most congressional action on the 1984 budget, real
domestic spending now stands lower than in 1981. And if the policies proposed in the President's 1985 budget are adhered to, there
will be essentially no growth in real terms through 1989. Thus,
after an era in which the real cost of government doubled three
times in less than three decades, the shift in national policy inaugurated by the Reagan administration will result in a decade-long
domestic real spending freeze.
Moreover, this abrupt halt to the runaway growth momentum of
domestic government is now built into the structure of the
budget—even if the modest additional savings proposed for 1985
and out-years are not fully implemented by Congress. The current
services budget for domestic programs will rise only 6% in constant
dollars between 1981 and 1989.
Note: In this Part, domestic spending refers to all non-interest outlays except the Department of Defense—
military and national interest programs as detailed beginning on p. 3-49; defense refers to Department of
Defense—military only; all spending figures through p. 3-15 include off-budget outlays; and, where nominal dollars
are adjusted for inflation and converted to constant dollars, they are deflated by the GNP deflator (fiscal year
1985=100).
3-2
BUDGET PROGRAM AND TRENDS
3-3
DOMESTIC SPENDING
(In billions of constant 1985 dollars)
Pre-Reagan:
Amount
1954
1961
1971
1981
57.5
126.5
269.9
526.6
Since Reagan:
1984 enacted
1985 proposed
1989 proposed
1989 current services
522.8
523.1
529.1
558.3
No domestic spending growth means declining burden on an expanding economy.—During the years from 1954 to 1981, real domestic spending grew at an average rate of more than 5 percentage
points per year faster than the real growth in goods and services
(GNP) produced by the American people. As a consequence the
domestic spending share of GNP skyrocketed from 4.0% to 15.0%—
more than tripling in less than three decades.
By contrast, the Federal Government's success in achieving domestic spending control since the late 1970's means that the economy (real GNP) is now growing faster than domestic spending.
Consequently, the economic burden of domestic government is at
long last heading down. This reversal is nearly without precedent
among major industrial democracies.
DOMESTIC SPENDING AS A PERCENT OF GNP
Pre-Reagan:
1954
1961
1971
1981
Since Reagan:
1984 enacted
1985 proposed
1989 proposed
1989 current services
Percent of GNP
4.0%
7.3
10.5
15.0
14.0
13.4
11.6
12.3
Non-entitlement domestic outlays* have been cut 24% in real
terms and will decline by 40% under the President's 1985 budgetBetween 1954 and 1978, constant dollar domestic spending excluding entitlements increased five-fold. Due to the sweeping retrenchment in domestic programs since 1981, real domestic discretionary
*AI1 domestic spending except social insurance and low-income benefit programs.
3-4
THE BUDGET FOR FISCAL YEAR 1985
spending has already receded to nearly its 1974 level (down 24%
from its 1978 peak), and under the President's proposed 1985
budget will be more than 40% lower than the 1978 level by 1989.
In short, the continued restraint embodied in the President's 5-year
budget plan, if adhered to, would shrink the constant dollar size of
domestic government, excluding entitlements, to nearly its 1971
level.
DOMESTIC SPENDING EXCLUDING ENTITLEMENTS
[In billions of constant 1985 dollars]
Pre-Reagan:
1954
1974
1978
38.8
138.2
207.7
Since Reagan:
1984 enacted
1985 proposed
1989 proposed
1989 current services
158.4
153.8
122.8
138.1
Average annual real growth (percent):
1954-78
1978-84
1984-89
;
+7.2%
-4.4
-5.0
Domestic discretionary share of GNP: declining to post-Korean
War levels.—When measured relative to GNP, the progress
achieved and proposed for the future is even more dramatic. Nonentitlement domestic spending approved by Congress for 1984 will
amount to only 4.2% of GNP. This means that since 1978, the
economic burden of financing domestic government excluding entitlements has dropped by one-third. Moreover, the proposed 1985
budget would further reduce the burden of domestic non-entitlement spending to 4.0% of GNP—with continued shrinkage to 2.7%
by 1989. Even without the additional savings proposed in the 1985
budget for this category of domestic spending—the 1989 current
services spending projection at 3.0% of GNP would be only slightly
higher than in 1954.
DOMESTIC SPENDING EXCLUDING ENTITLEMENTS AS A PERCENT OF GNP
Pre-Reagan:
1954
1958
1964
1978
Percent of GNP
,
Since Reagan:
1984 enacted
1985 proposed
1989 proposed
1989 current services
2.7%
2.8
4.0
6.3
4.2
4.0
2.7
3.0
3-5
BUDGET PROGRAM AND TRENDS
Low-income benefit reforms have stopped the massive growth of
welfare costs.—Between 1954 and 1981 the constant dollar cost of
federal means-tested benefit programs increased eleven-fold—from
$6 billion to $68 billion. Although Congress has not adopted all of
the reforms proposed by the administration, estimated 1984 current
law real costs will be lower than 1981, as will the means-tested
budget share of GNP. Moreover, even on a current services basis,
both constant dollar costs and the GNP share will be nearly stable
for the remainder of the 1980's. Again, the turnaround could not be
more dramatic: after increasing over 1,000% in real terms between
1954 and 1981, the outlook through 1989 is for virtually no further
real cost growth at all. Contrary to the claims of some critics, the
social safety net is as strong today as it was in 1981 as measured by
constant dollars of budget resources: the difference is that unsustainable, unnecessary, and socially counterproductive expansion
has been stopped.
LOW-INCOME BENEFIT PROGRAMS
(1985 constant dollar amounts in billions)
Amount
Percent of GNP
Pre-Reagan:
1954
1970
1981
6.2
20.8
68.0
0.8
Since Reagan:
1984 enacted
1985 proposed
1989 proprosed
1989 current services
66.8
65.5
68.4
72.1
1.8
1.7
1.5
1.6
0 4%
1.9
Due to bipartisan reform the rapid growth of social insurance
programs has finally slowed.—Nearly the entire growth in the
Federal budget relative to the national economy from 1954 to 1981
is accounted for by the sustained expansion and evolution of the
Nation's social insurance system. Over these 27 years, the constant
dollar cost of social security, unemployment insurance, medicare,
Federal pensions, and related smaller programs grew from $26
billion to $267 billion or over ten-fold. The social insurance spending claim on GNP likewise surged from less than 2% to 7.6%.
Beginning about 1977, however, a bipartisan recognition that the
various social insurance programs were rapidly approaching both
unaffordability and insolvency generated successive benefit reform
and financial improvement bills. These included the 1977, 1980 and
1983 social security bills, and various medicare, unemployment
3-6
THE BUDGET FOR FISCAL YEAR 1985
insurance, and railroad retirement solvency and cost control measures. Since most of these legislative changes were prospective in
nature, the fiscal effects will materialize in the mid-to-late 1980's.
This can be seen in the dramatic decline in the annual real growth
rate from 8.8% over 1954-1983 to only 2.3% under current services
for the 1983-1989 period. Consequently, after peaking at 8.6% of
GNP in the recession year of 1983, the social insurance budget will
steadily fall relative to the economy's capacity to support it in the
years ahead.
SOCIAL INSURANCE PROGRAMS
(1985 constant dollar amounts in billions)
Percent of GNP
Era of bipartisan expansion:
1954*
1968*
1981
1983
Effects of bipartisan legislative restraint since 1977:
1984 enacted
1985 proposed
1989 proposed
1989 current services
Average annual real growth (percent):
1954-83
1983-89 proposed
1983-89 current services
25.8
102.3
266.8
302.8
1.8
4.3
7.6
8.6
8.0
7.8
7.4
7.7
*Excludes military retirement accruals.
DEFENSE AND NATIONAL INTEREST PROGRAMS: RETURN OF BUDGET
COMMITMENT TO POST-WAR MID-POINT RELATIVE TO GNP
Critics of the administration's defense and security-related
budget build-up frequently compare current and proposed budget
levels to those which prevailed in the late 1970's and allege that
administration policies have resulted in inordinate budget growth.
But this represents a cramped and misleading view of defense and
national interest funding requirements, as well as failure to consider the longer trend of post-war budgetary history.
The programs in the aggregation addressed in this section
embody core purposes of the Federal Government; Department of
Defense—military (DOD) expenditures; defense related spending for
weapons development and production (Department of Energy); the
conduct of foreign policy and the economic and security assistance
expenditures required by it; leadership in space and science (NASA);
the servicing and policing of our vast coastal borders (Coast Guard);
and the national defense and strategic petroleum stockpiles. While
constant dollar budget resources have risen strongly since 1980, the
fact remains that enacted real funding for 1984 barely exceeds peak
3-7
BUDGET PROGRAM AND TRENDS
expenditures recorded in 1968. The 1968 level reflected the coincident fiscal pressures of the Vietnam War, the Apollo moonshot, and
substantial commitments to economic and security assistance for
areas of national interest around the world. Moreover, relative to
GNP, 1984 spending for these programs is actually 33% lower than
what the national economy proved capable of sustaining in 1968.
DEFENSE AND NATIONAL INTEREST EXPENDITURES: 1968 VERSUS 1984 ENACTED
(1985 constant dollar amounts in billions)
Amount
265.2
276.3
1968
1984 enacted
+ 11.1
Difference
Percent of GNP
11.0%
7.4
-3.6
Thus, it is clear that the needed defense catch-up and modernization programs launched on a bipartisan basis by Congress in 1980
and accelerated during the Reagan administration, along with expenditures for other national interest programs, do not come close
to imposing the burden on the U.S. economy experienced during
earlier periods when equally critical national interests were at
stake. The widespread misconception on this score stems from a
failure to appreciate the degree to which the low expenditure
burden for defense and national interest programs experienced
during the mid-1970's represented a transient and abberant historic interlude. The resulting fiscal windfall was unsustainable because these depressed funding levels were inconsistent with stated
national security, foreign policy, and international leadership objectives—objectives that have remained broadly continuous
throughout the post-war period.
As shown in the table below, between 1968 and the low point in
1976, constant dollar defense and national interest expenditures
plummeted by 32%. Likewise, the GNP share fell from 11.0% to
6.1% or by over two-fifths.
ABRUPT DECLINE IN DEFENSE AND NATIONAL INTEREST EXPENDITURES, 1968-76
(1985 constant dollar amounts in billions)
Amount
265.2
180.0
1968
1976
Percent change
Percent of
GNP
11.0%
6.1
-32%
-45%
This massive drop occurred because, for reasons of both short-run
national policy trends and happenstance, all major categories
within this budget sector were declining simultaneously. The space
program was then between the Apollo mission and the build-up of
3-8
THE BUDGET FOR FISCAL YEAR 1985
the shuttle program; DOD expenditure declines reflected operational cost reductions attributable to the withdrawal from Vietnam and
the large mid-70's decline in end-strength; and strategic and conventional weapons programs were allowed to slacken substantially
during this period.
TRENDS IN MAJOR DEFENSE AND NATIONAL INTEREST PROGRAMS: 1968-1976
(1985 constant dollar amounts in billions)
1968
1976
Percent
change
Total
13.3
4.3
14.7
232.8
6.0
2.9
11.9
159.1
-55%
-33
-19
-32
265.2
Space program
DOE weapons and preparedness
Development aid, security assistance and other national interest
DOD military
180.0
-32
The inadequacy and unsustainability of these depressed mid1970's funding levels were reflected in budget trends emerging
during the Carter administration. The deterioration of the international security environment and the growing congressional recognition of U.S. military inadequacy resulted in a 12V2% increase in
real defense and national interest outlays between 1976 and 1980.
Even then, constant dollar spending in the last full Carter administration budget (1980) was still 12y2% below the $232 billion per
year average of 1964-1970. More importantly, the continued real
growth of the national economy meant that the spending share of
GNP stayed below 6% through 1980 compared to over 10% from
1964-1970.
Thus, when the 1970-1980 valley in defense and national interest
spending trends is accounted for, a decidedly different picture
emerges regarding the necessary rise in these expenditures that
has been achieved thus far and that is planned for future years. As
shown below, constant dollar expenditures for DOD and national
interest programs have risen by 36% since 1980. The President's
proposed budget would continue this trend during the remainder of
the 1980's.
GROWTH IN DEFENSE AND NATIONAL INTEREST PROGRAMS
(1985 constant dollar amounts in billions)
DD
O
National
interest
Total
Change to date:
1980
1984 enacted
Percent change from 1980
175.6
242.0
+38%
27.0
34.3
27%
202.6
276.3
+36%
264.4
339.1
+ 93%
36.7
35.0
+ 29%
301.1
374.1
+ 85%
Proposed 1985 budget:
1985
1989
Percent change from 1980
BUDGET PROGRAM AND TRENDS
3-9
Yet, as substantial as these increases appear to be, they will
result in a claim on GNP that is lower than that which prevailed
during the entire 1954-1970 period. Devotion of 8% of GNP to the
fundamental purposes of Government and, most particularly, to the
Nation's military security in a difficult and threatening world can
hardly be considered excessive. Indeed, it represents no more than
a mid-point between the normal burden prior to 1970 and the
temporarily depressed levels of the mid and late 1970's.
TRENDS IN DEFENSE AND NATIONAL INTEREST SPENDING
Historic trend:
1954-1970
1976-1980
1984 enacted
Proposed 1985 budget:
1985
1989
Percent of GHP
10.8%
5.8
7.4
7.7
8.2
REORDERING THE NATION'S FISCAL PRIORITIES
Vast changes in the Federal budget's structure occur over time.
The re-direction of policy inaugurated by the Reagan administration is such a change.
Measuring budget changes from any given year, however, can
confuse as easily as enlighten. Nevertheless, the budget structure
of 1971 stands out as perhaps an equilibrium point in post-war
budgetary history: it represents the mid-point between the high
defense/low domestic budget structure of the immediate postKorean war period and the low defense/high domestic budget composition of the late 1970's. Neither extreme is compatible with the
requirements and realities of the 1980's. The low defense level of
the later 1970's was unsustainable and has been abandoned. The
low domestic level of the 1950's has been surpassed by history and
settled national commitments.
By contrast, defense spending was still at a healthy level in 1971
and much of the modern structure of domestic spending commitments had already emerged. In particular, the Great Society domestic programs had been well established and the Nation's social
insurance system had been expanded to include most of its current
protections, including disability, medicare, and extended unemployment benefits. Significantly, however, the large across-the-board
benefit increases enacted in the 1970's and the impact of excessive
3-10
THE BUDGET FOR FISCAL YEAR 1985
indexing and policy errors in entitlement programs had not yet
occurred.
The table below demonstrates that the fiscal course charted by
the administration for the 1980's essentially seeks a restoration of
the 1971 status quo ante. Substantial progress in this direction has
already been realized, as measured by the congressionally enacted
1984 budget. Unfortunately, the reduction in the domestic spending
claim has proceeded more slowly than the rise in defense and other
national interest outlays—resulting in a slight increase in the total
non-interest Federal spending claim on GNP since 1980. Nevertheless, if the policies embodied in the President's 1985 budget are
faithfully adhered to, the 1971 status quo ante as between domestic
and defense/national interest spending claims on GNP will have
been nearly restored by the end of the decade. Overall, this shift in
composition would result in less than a 1% rise in the total programmatic spending burden.
DOMESTIC AND DEFENSE/NATIONAL INTEREST CLAIMS ON GNP:
RESTORATION OF THE 1971 STATUS QUO ANTE
(Percent of GNP)
Domestic
Historic reference:
High defense/low domestic: 1954
Low defense/high domestic-. 1978
Post-war midpoint: 1971
1980's compared to 1971 midpoint:
1980
Change from 1971
1984 enacted
Change from 1971
1985 proposed
Change from 1971
1989 proposed
Change from 1971
4.0%
14.6
10.5
Defense/
national interest
14.1%
5.6
8.4
Total
18.1%
20.2
18.9
15.0
5.9
20.9
+ 4.5
14.0
-2.6
7.4
+2.0
21.4
+3.5
-1.0
+2.5
13.4
7.7
21.2
+3.0
+2.2
11.6
-0.7
8.2
+ 1.1
-0.2
+0.9
19.9
Decomposition of the domestic spending component of the budget
highlights the strong challenge posed by the path embodied in the
1985 budget. First, achieving the 11.6% of GNP overall domestic
target for 1989 depends crucially on four conditions:
• that constant dollar cost of the means-tested safety net programs will remain between $65 and $70 billion—implying no
real benefit or caseload expansion or contraction—thereby
permitting the GNP share to fall slowly in the context of an
expanding economy;
• that no additional domestic discretionary program commitments beyond those embodied in the 1984 budget baseline will
3-11
BUDGET PROGRAM AND TRENDS
be undertaken during the remainder of the decade unless
existing programs of equal cost are eliminated;
• that annually appropriated funding levels for discretionary
programs and periodic re-authorizations for programs like
highway building and price supports will be consistently constrained below the cumulative inflation rate in order to cause
continued erosion in real program levels, as has been the
policy since 1980; and
• that the economy will remain on a steady path of sustained
real growth and low inflation throughout the 1980's. The
latter condition is essential in order to avoid periodic legislative pressures for "real funding catch-ups" for appropriated
programs subsequent to a rising inflation trend. The former is
required to avoid recession-induced caseload growth in meanstested entitlements and legislated liberalizations in response
to short-term social distress.
The path charted in the 1985 budget assumes that these 4 conditions will be fulfilled. As shown below, this permits the total domestic spending share of GNP to fall nearly to its 1971 level,
despite the fact that the social insurance claim remains substantially higher than in 1971 and that the policy of a stable constant
dollar means-tested safety net results in a higher GNP claim even
by 1989 than was the case in 1971. Stated differently, the high real
cost of even the restrained social insurance and low income entitlement structure that has emerged after three budget rounds during
the Reagan administration requires the steady withering of other
domestic spending if the total domestic budget burden is to be
restored to the 1971 level.
DOMESTIC PROGRAMS
(As a percent of GNP)
Social insurance
1971
1980
4.7%
7.2
Low income
benefits
1.1%
1.8
Other programs
4.7%
6.0
Total domestic
10.5%
15.0
Change from 1971
1984 enacted
+ 2.5
8.0
+0.7
1.8
+ 1.3
4.2
+4.5
14.0
Change from 1971
1989 proposed
+3.2
7.4
+0.7
1.5
-0.4
2.7
+3.5
11.6
Change from 1971
+ 2.7
+0.4
-2.0
+ 11
.
These calculations make clear that attainment of fiscal equilibrium by the end of the decade is totally incompatible with new largescale domestic policy initiatives now being advanced in some quarters. Such initiatives would virtually guarantee the need for a
major general tax increase. Given the nearly 8% of GNP required
3-12
THE BUDGET FOR FISCAL YEAR 1985
for social insurance, the other components of the domestic budget
must continue to shrink relative to GNP—an outcome that cannot
be achieved if significant new program commitments are undertaken. Thus, a major increase in Federal aid to education, an expensive national industrial policy, a significant restoration of pre-1982
constant dollar Federal spending for health, training, and social
service programs, or major increases in domestic infrastructure
investment, if combined with full current services funding of existing commitments, would push total domestic spending back into a
range of 13-14% of GNP, When combined with the 8% of GNP
required for defense and national interest programs and additional
requirements for debt service, the permanent total spending
burden range would exceed 24% of GNP.
Conversely, the minimization of potential future tax increases
will require additional steps to lower domestic spending to below
the 1989 goal of 11.6% of GNP now embodied in the proposed
budget. Among other things, this would likely involve accelerating
the decline that will occur in the mid and late 1980's under current
law in the social insurance share of GNP. Given the pending
solvency crisis in medicare, excessive annuity levels embodied in
Federal pensions, and the potential for further reform of benefit
indexing mechanisms, it is apparent that opportunities for such
savings do exist. If a bipartisan consensus can be obtained, these
reforms could reduce social insurance spending to 7.0% of GNP
by the late 1980's.
Thus, meeting the current domestic budget goal of 11.6% of GNP
by 1989, and reducing it to below 11% in future budget plans in
order to minimize the threat of major tax increases will require
ceaseless restraint and significant further retrenchment in all
parts of the domestic budget. Yet, this is achievable if the policy
climate of 1981-1984 can be maintained throughout the remainder
of the decade. The essential dynamics of the 1981-84 domestic
budget shrinkage have been four-fold:
• no entitlement liberalizations or repeal of prior reforms;
• no new substantial discretionary spending commitments of
the type that proliferated during the 1970's;
• declining real budget resources for discretionary appropriations and operating agencies; and
• steady reform and retrenchment of existing entitlement program features—particularly social insurance.
In the context of a stable economy, a domestic fiscal policy that
remains anchored to these premises can reduce total Federal
spending excluding interest to the 1971 status quo ante—19% of
GNP. But, a policy that abandons one or more of these conditions
is both doomed to failure and is a recipe eventually for massive
general tax increases.
3-13
BUDGET PROGRAM AND TRENDS
THE DEBT SERVICE PROBLEM
The previous sections demonstrate that the fiscal course charted
by the Reagan administration is compatible with returning the
programmatic spending share of GNP to below 20% by the end of
the decade, and to the 1971 status quo ante (19%) with additional
reforms, mainly in the social insurance budget in future years.
This leaves for consideration the funding requirement for debt
service.
In the context of the generally stable and low-inflation economic
environment that prevailed prior to the late 1960's, debt service
averaged an almost constant 1.3% of GNP each year over the
course of two decades (1954-1974). But subsequently, under the
pressure of rising nominal interest rates, as well as significantly
larger average annual deficits, the debt service claim on GNP rose
steadily until it reached 2.0% in 1980. The recent period of high
interest rates and recession-fueled high deficits that accompanied
the monetary and economic correction of 1981-83 pushed debt service costs still higher.
It is currently estimated that constant dollar debt service costs in
1984 will be triple 1971 levels and that the GNP share will reach
3.0%—or more than double its 1971 claim.
RISE IN DEBT SERVICE COSTS SINCE 1971
(1985 constant dollar amounts in billions)
Amount
1971
1980.
..
1984 enacted
Percent change from 1971
Percent of
GNP
37.0
70.4
113.6
1.4%
2.0
3.0
+111%
+207%
This staggering rise in the debt service burden, which has been
building continuously for more than a decade, accounts in considerable part for the elevated and unprecedented total Federal spending claims on GNP that have been recorded since 1980. As shown
below, during the recession/recovery cycle years of 1975-1977 programmatic spending averaged 20.8% of GNP—a level only slightly
below the 21.7% average for the comparable years 1982-84. But the
net interest claim was nearly double in the latter period, contributing 60% of the overall rise in the spending claim on GNP between
1975-77 and 1982-84.
A similar comparison of the proposed 1985 budget with the 1971
status quo ante highlights the degree to which the attainment of
fiscal equilibrium by the end of the 1980's depends on further
progress both in reducing the present level of nominal interest
3-14
THE BUDGET FOR FISCAL YEAR 1985
COMPARISON OF SPENDING SHARES OF GNP DURING RECESSION/RECOVERY CYCLES
(Average percent of GNP)
Period
1975-77
1982-84 enacted
Difference
Net interest
Programmatic
spending
1.6%
2.9
20.8%
21.7
22.4%
24.6
+ 1.3
+ 1.0
+ 2.3
Total spending
rates and in achieving a reduction in the domestic spending claim
on GNP that exceeds that charted in the 1985 budget plan.
For 1985, debt service payments are projected to remain at their
historic high (3.0% of GNP) while programmatic spending will
decline slightly from the 1984 level, resulting in a total spending
claim on GNP that remains above 24% of GNP for the fourth
successive year. However, if the 1985 budget plan is adhered to, the
debt service claim on GNP would steadily decline. This declining
path is a consequence of the gradual fall of proposed programmatic
spending and deficit claims relative to GNP and the forecast assumption that the 91-day Treasury bill rate will drop from 8.6% in
fiscal year 1984 to 5.1% by 1989. With the further assumption that
future policy action will constrain programmatic spending to 19%
of GNP, the interest burden would fall to around 2% by the end of
the decade. Under these conditions, fiscal equilibrium could be
attained with total Federal spending in a range between 20-21% of
GNP.
Failure to achieve these economic and policy conditions, however, would have seriously adverse consequences. The current services programmatic spending level projected for 1989 is $44 billion
or about 1% of GNP higher than the severely constrained spending
path proposed in the 1985 budget. In the event that any combination of defense and non-defense spending were permitted to drift
toward the current services level, debt service would remain at 3%
through 1987, resulting in total spending staying above 23% of
GNP through 1989.
More critically, if, in addition, the declining interest rate path
assumed in these projections is not achieved, the debt service claim
could rise above even the 3% level that now obtains. These consequences are displayed in the current services alternate forecast
entry in which the Treasury bill rate is assumed to remain at
current levels (9%) throughout the period and, as a consequence, the
trend real GNP growth rate falls from 4% per year to 3%.
Under these adverse policy and economic conditions, debt service rises to 4.4% of GNP by the end of the decade—a claim on the
national economy 3.5 times larger than the pre-1974 equilibrium.
3-15
BUDGET PROGRAM AND TRENDS
While programmatic spending would be similar to the 1985 level
(21.1%), the total spending burden would surge to 25-26% of GNP.
Thus, adherence to both the spending policy plan and the economic forecast path assumed in the 1985 budget is imperative if
the current historically-unprecedented debt service claim on GNP
is to be reduced, and the total Federal spending claim is to recede
toward the 1971 status quo ante (20.4% of GNP).
THE POTENTIAL DEBT BURDEN TO 1989
(Percent of GNP)
Debt service
1971
1985 proposed
Programmatic
spending
Total spending
1.4%
3.0
18.9%
21.2
20.4%
24.2
Change from 1971
1989 proposed
+ 1.6
2.4
19.9
+3.8
22.2
Change from 1971
1989 current services
+ 0.9
+ 0.9
+ 1.8
2.6
20.7
23.3
Change from 1971
1989 current services with alternate forecast
+ 1.2
+ 1.7
+ 2.9
4.4
21.1
25.5
+ 2.9
+ 2.2
+ 5.1
Change from 1971
420-000 O - 84 - 5 : QL 3
+ 2.2
3-16
THE BUDGET FOR FISCAL YEAR 1985
The 1985 Spending Restraint Program x
This section provides further detail and analysis regarding the
firm fiscal restraint embodied in the 1985 budget, as measured
relative to the current services baseline and relative to historic
constant dollar spending levels. Since no widely accepted current
services baseline exists for the Defense Department, discussion of
DOD spending policy changes is excluded from this section.
As shown in the table below, the net non-DOD programmatic
spending reduction relative to current services is modest, amounting to a 2% reduction over 1985-1989.
1985 BUDGET VERSUS CURRENT SERVICES: NONDEFENSE PROGRAMMATIC SPENDING
(Dollar amounts in billions)
1985
Current services
1985 budget
ProDOsed savings
Percent reduction
1986
1987
1988
1989
Total
549.6
545.0
575.6
566.0
610.3
598.2
645.4
629.7
679.0
658.6
3,059.9
2,997.6
-4.6
-0.8%
-9.6
-1.7%
-12.0
-2.0%
—15.7
-2.4%
-20.4
-3.0%
-62.3
2.0%
These totals, however, fail to capture the full degree of fiscal
restraint embodied in the 1985 budget for two reasons.
First, in a number of critical areas, the 1985 budget proposes
policy increases for selective programs that net against savings
proposed throughout the remainder of the budget. As shown in the
table below, these add-ons to the current services baseline total
$4.5 billion in 1985 and $47.5 billion over five years. By contrast,
savings proposed elsewhere in the budget total $110 billion over
1985-1989, representing a 4% reduction from current services. On
a net basis, then, 43% of the savings from current services proposed throughout the budget are needed to offset the selective
increases to current services for programs listed in the table.
In addition, it should be noted that consistent with last year's
bipartisan agreement on social security reform, no changes in current law spending are proposed for social security. Unemployment
insurance is treated in a similar manner. Consequently, the $110
billion in 5-year gross savings are generated from a relatively small
share of the budget baseline. As shown in the table, proposed 1985
savings in the budget remainder, excluding social security and
unemployment insurance, total 3% in 1985 and rise to nearly 10%
by 1989.
1
The spending figures throughout the rest of Part 3 exclude off-budget outlays in order to maintain consistency
with program and budget totals displayed elsewhere.
3-17
BUDGET PROGRAM AND TRENDS
NONDEFENSE PROGRAMMATIC INCREASES AND SAVINGS IN 1985 BUDGET
(Dollar amounts in billions)
1985
1986
1987
1988
5.7
5.6
5.9
6.2
6.1
29.4
+ 1.0
+0.6
+0.6
+0.4
+0.3
+ 2.8
6.4
6.1
5.6
5.3
5.3
28.8
+0.3
+ 1.0
+ 1.9
+ 2.7
+3.1
+ 8.9
Total
Selective Program Increases
Development aid/Central America:
Current services
Proposed increases
Space program:
Current services
Proposed increases
Security assistance/FMS:
Current services
Proposed increases
State Department/USIA:
Current services
Proposed increases
DOE weapons program and preparedness:
Current services
Proposed increases
NSF and energy science:
Current services
Proposed increases
Law enforcement:
Current services
Proposed increases
Veterans program:
Current services
Proposed increases
Airways/airports-.
Current services
Proposed increases
Selective program increases, subtotal:
Current services
4.9
5.2
5.5
5.9
6.1
27.6
+2.2
+3.5
+3.8
+3.7
+3.5
+ 16.6
2.3
2.4
2.7
2.8
2.9
13.1
+0.3
+0.4
+0.5
+0.5
+0.5
+2.1
6.9
7.3
7.0
7.0
7.2
35.4
+0.7
+ 1.5
+ 2.3
+ 2.8
+3.1
+ 10.5
2.0
2.1
2.1
2.2
2.3
10.8
+0.1
+0.2
+0.2
+0.3
+0.3
+ 1.1
5.7
5.9
6.2
6.6
6.9
31.4
+0.1
+0.1
+ 0.2
+0.2
+ 0.2
+0.8
26.1
27.0
28.3
29.8
30.8
142.0
-0.1
+0.5
+ 0.6
+0.8
+0.8
+2.6
4.5
4.7
5.0
5.2
5.5
25.0
0.1
+ 0.5
+0.6
+0.6
+0.4
+ 2.0
64.5
66.4
68.5
71.1
73.0
343.5
+4.5
+8.2
+ 10.7
+ 11.9
+ 12.2
+47.5
Remainder of Nondefense
Programmatic Budget
Current services
485.1
509.3
541.8
574.3
606.0
2,716.5
Proposed savings
Percent change
-9.2
-1.9%
-17.8
-3.5%
-22.7
-4.2%
-27.6
-4.8%
-32.5
-5.4%
-10*8
-4.0%
Current services
278.6
289.8
308.4
327.5
344.9
1,549.2
Proposed savings
Percent change
-9.2
-3.3%
-17.8
6.1%
-22.7
-7.4%
-27.6
-8.4%
-32.5
-9.4%
-10S8
-7.1%
Proposed increases
Remainder of Nondefense Programmatic Budget Excluding Social Security and Unemployment
3-18
THE BUDGET FOR FISCAL YEAR 1985
The second dimension of fiscal restraint embodied in the 1985
budget is the fact that 3 budget rounds of severe retrenchment,
entitlement reform, and subtantial program level reduction have
nearly eliminated the powerful growth momentum that built up
during the 1970's. Stated differently, the current services baseline
itself now reflects an implicit policy of restraint relative to recent
historical norms. If the current law structure of entitlements and
other mandatory programs is left intact and discretionary programs are funded at no greater than the prior year level plus
inflation, constant dollar budget growth would average only 1.3%
per year over 1985-1989—3 times less than the projected average
growth of real GNP. Thus, for 1985 and future years, a major
component of the restrictive fiscal policy needed to achieve budget
equilibrium by the end of the decade will be simply preservation of
the restraint now built into the structure of the budget.
The table below compares the 1985-1989 current services baseline in constant dollars with two 5-year intervals in the 1970's.
Actual constant dollar budget growth in 1971-1975 was seven times
greater than the real growth rate now built into the current services baseline for 1985-1989. During 1976-1980 real growth was
three and a half times greater.
Moreover, the constant dollar current services baseline for
1985—$549.6 billion—represents only 4.3% increase over the actual
level attained in 1980. This means that over the last 4 years (19801984) real non-DOD spending growth has averaged only 1.1% per
year.
COMPARISON OF 1985-1989 NONDEFENSE PROGRAMMATIC REAL BUDGET GROWTH WITH 1970's
TRENDS
(1985 constant dollar amounts in billions)
1971
1971-75 actual:
Amount
Annual real growth
1972
293.5
327.5
+ 11.0% + 11.6%
1973
348.8
+6.5%
1974
1975
355.7
415.6
+2.0% + 16.8%
Average
348.2
+9.6%
1976
1985-89 current services:
Amount
Annual real growth
1985-89 President's budget:
Amount
Annual real growth
1978
1979
1980
Average
451.0
+8.5%
466.0
+2.7%
491.2
+5.4%
487.0
-0.8%
527.1
+8.2%
484.5
+4.6%
1985
1976-80 actual:
Amount
Annual real growth
1977
1986
1987
1988
1989
Average
549.6
+ 1.8%
550.4
+0.1%
559.5
+ 1.7%
569.0
+ 1.7%
577.4
+ 1.5%
561.2
+ 1.3%
545.0
+ 1.0%
541.2
-0.7%
548.5
+ 1.3%
555.2
+ 1.2%
560.1
+0.9%
550.0
+0.7%
3-19
BUDGET PROGRAM AND TRENDS
When the modest additional reductions proposed in the 1985
budget for the aggregate non-DOD programmatic spending are factored in, the proposed constant dollar spending path averages only
0.8% per year.
Even these figures, however, understate the full degree of restraint built into most categories of the current services baseline.
The medical entitlement programs—medicare and medicaid—are
now nearly unique in exhibiting strong real growth under current
law. As shown below, the current services baseline real growth rate
for the medical entitlements over 1985-1989 averages 7.5%. However, when' these programs are deducted from the totals, the remainder of the non-DOD current services programmatic baseline exhibits virtually no constant dollar change. Thus, with the exception of
the medical entitlements, the non-DOD current services programmatic budget is already frozen in real terms for the remainder of
the decade.
This condition is even more pronounced in the policy path
charted in the President's 1985 budget. When the modest medicare
and medicaid reforms proposed in the budget are accounted for, the
medical entitlement real growth rate drops to 6.2% over the 5
years. But the remainder of the non-DOD programmatic budget
actually contracts in real terms by 2% between the 1984 enacted
level and the proposed 1989 level.
NONDEFENSE PROGRAMMATIC BUDGET GROWTH 1985-1989: MEDICAL ENTITLEMENTS VERSUS ALL
OTHER
(1985 constant dollar amounts in billions)
1985
Current services:
Medical entitlements:
Amount
Real growth rate
Non-DoD remainder:
Amount
1986
1987
1988
1989
Average
91.1
96.3
103.3
110.8
118.8
104.1
+ 10.1%
+ 5.7%
+7.3%
+7.3%
+7.2%
+ 7.5%
458.5
454.1
456.2
458.2
458.5
457.1
Real growth rate
1985 budget:
Medical entitlements:
Amount
+0.2%
-1.0%
+0.5%
+0.4%
+0.1%
+0.1%
89.0
93.3
99.1
105.3
111.7
99.7
Real growth rate
Non-DoD remainder:
Amount
+ 7.8%
+4.8%
+6.3%
+ 6.2%
+ 6.2%
+6.2%
456.0
447.9
449.4
449.9
448.3
450.3
-0.2%
-1.8%
+0.3%
+0.1%
Real growth rate
0.4%
-0.4%
In order to clarify and amplify these more complex trends underlying the non-DOD budget totals, the detailed programmatic savings and policy initiatives contained in the 1985 budget are presented below in 9 major categories. These categories are similar to
3-20
THE BUDGET FOR FISCAL YEAR 1985
the official "budget functions" in that they combine hundreds of
related programs and activities. However, they contain far greater
coherence and consistency relative to the congressional process and
administration fiscal policy objectives than the purely analytically
derived functions of the official budget classification system. The
discussion and tables that follow are designed to facilitate a more
comprehensive and lucid understanding of the domestic spending
policy changes implemented thus far, and the further steps toward
fiscal restraint proposed in the 1985 budget.
COMMERCIAL AND FINANCIAL PROGRAMS, ECONOMIC SUBSIDIES AND
COMMUNITY ASSISTANCE
This component of the budget includes local fiscal subsidies (general revenue sharing), community development aid (EDA and
CDBG), industrial sector support (maritime, energy, trade adjustment, export aid) and Federal commercial and financing activities
(uranium enrichment and FDIC). The proposed savings represent a
continuation of the administration's long-standing efforts to eliminate or sharply curtail unwarranted and largely ineffective economic subsidies.
The proposed savings amount to only 13% of the current services
baseline over the 5 years, reflecting essentially two factors. First,
the administration is committed to maintaining general revenue
sharing and modest aid levels in the form of CDBG and UDAG to
urban areas and smaller communities. It also has proposed to
maintain energy funding but to shift priorities away from expensive commercialization projects toward research and development.
Likewise, it has proposed to maintain minimum subsidy levels for
SBA, the postal service, health professions training, Amtrak, the
Export-Import Bank and the maritime industry (not displayed).
3-21
BUDGET PROGRAM AND TRENDS
COMMERCIAL AND FINANCIAL PROGRAMS, ECONOMIC SUBSIDIES AND COMMUNITY ASSISTANCE:
SUMMARY
(Dollars in billions)
1985
Totals
Current services
17.2
Proposed savings
Percent change
-0.9
-5.4%
Major Program Changes
Nuclear Energy Programs:
Current services
15.1
-1.6
1987
1988
1989
15.4
14.4
13.4
-2.1
-13.8%
-2.6
-17.8%
-3.0
-22.5%
+*
1.2
-0.1
1.2
1985-89
total
75.6
-10.2
13.5%
-10.6%
1.1
Proposed savings
Non-Nuclear Energy-.
Current services
Proposed savings
Community development
UDAG:
Current services
1986
1.0
1.0
-0.1
-0.1
-0.1
-0.5
5.5
1.7
*
block
2.2
2.4
10.0
-0.2
-0.2
-0.6
4.4
4.0
4.1
20.6
0.0
4.0
*
4.0
0.0
-0.1
-0.2
-0.3
0.4
*
0.3
0.3
0.4
0.3
1.7
-0.1
-0.2
-0.3
-0.3
-0.9
0.2
*
0.2
0.2
0.2
0.2
1.0
-0.1
0.1
0.1
0.2
0.5
0.8
Proposed savings
Appalachian development:
Current services
Proposed savings
Section 202 housing loans.Current services
Proposed savings
Export-Import bank:
Current services
1.9
-0.2
0.7
0.7
0.7
0.8
3.7
0.0
0.0
0.1
0.2
-0.2
-0.4
0.8
*
0.8
0.9
0.9
0.9
4.2
-0.1
0.2
-0.2
-0.2
0.8
*
3.5
grant/
Proposed savings
Economic Development Administration:
Current services
Proposed savings
Amtrak:
Current services
1.8
-0.1
. .
1.7
0.9
0.6
0.3
Proposed savings
Postal subsidy:
Current services
-0.1
-0.1
-0.1
-0.2
-0.2
-0.8
1.0
0.8
0.8
0.7
0.8
4.1
Proposed savings
Small Business Administration:
Current services
-0.3
-0.4
-0.3
-0.3
-0.3
-1.6
0.7
0.8
0.8
0.8
0.9
4.0
Proposed savings
Health professions training:
Current services
-0.2
-0.1
-0.2
-0.4
-0.4
-1.3
0.2
*
0.2
0.2
0.3
0.3
1.2
-0.1
-0.1
-0.1
-0.1
-0.5
4.2
3.4
3.8
2.9
1.7
16.1
-0.2
-0.4
-0.5
0.5
-0.6
2.0
Proposed savings
All other:*
Current services
Proposed savings
•$50 million or less.
1
Includes major financial institution accounts (FDIC, FSLIC) and housing revolving funds (FHA).
3-22
THE BUDGET FOR FISCAL YEAR 1985
Second, and more importantly, the first three budget rounds
have been enormously successful in eliminating entire programs
(regional commissions and most of trade adjustment assistance) or
in substantially reducing constant dollar funding levels (EDA,
CDBG, UDAG). As a consequence, the constant dollar cost of this
component of the enacted 1984 budget will have declined by 51%
from its 1980 peak. If the additional savings proposed in the 1985
budget are adopted, constant dollar spending levels by 1989 will be
80% below the 1980 peak.
CHANGE FROM PEAK FUNDING: COMMERCIAL AND FINANCIAL PROGRAMS, ECONOMIC SUBSIDIES
AND COMMUNITY AID
(1985 constant dollar amounts in billions)
Amount
Totals:
1980 peak
1984 enacted...
1985 proposed..
1989 proposed..
Nuclear and non-nuclear energy programs:
1979 peak
1984 enacted
1985 proposed
1989 proposed
EDA, CDBG/UDAG/GRS/other community development programs:
1978 peak
1984 enacted
1985 proposed
1989 proposed
Amtrack, railroad, airline and maritime subsidies:
1981 peak
1984 enacted
1985 proposed
1989 proposed
Export-Import Bank, trade adjustment, health professions, disaster aid and flood insurance,
SBA, postal service:
1980 peak
1984 enacted
1985 proposed
1989 proposed
Reduction
from peak
year
44.9
21.8
16.3
8.9
-51%
-64
-80
4.8
2.9
2.8
2.6
-40
-42
-45
23.6
11.5
10.8
8.4
-51
-54
-65
6.2
4.1
2.3
1.7
-35
-63
-73
10.6
3.7
3.1
0.7
-65
-71
-94
3-23
BUDGET PROGRAM AND TRENDS
SOCIAL INSURANCE AND PENSIONS
In 1984, social insurance and pension programs will comprise
55% of all Federal non-DOD programmatic outlays. Under current
services, this fraction would rise to 60% by 1989. Proposed savings
in the 1985 budget total just $35 billion, or 2% of the current
services baseline over the period 1985-1989. These savings consist
largely of civilian and military COLA delays and medicare savings
previously proposed. The latter includes a phased-in increase of the
Part B premium to 35% of program costs by 1990 and a temporary
freeze on physician fee increases.
SOCIAL INSURANCE AND PENSIONS: SUMMARY
(Dollars in billions)
1985
Total
Current services
1986
1987
1988
1989
Total
305.8
329.1
354.8
381.2
409.3
1,780.3
Proposed savings
Percent change
Major programs
Medicare:
Current services
-2.1
-0.7%
-4.7
-1.4%
-6.8
-1.9%
9.2
-2.4%
11.9
-2.9%
-34.6
-1.9%
69.1
76.9
86.6
97.2
108.7
438.6
Proposed savings
Federal civilian retirement:
Current services
-1.0
-2.1
-3.4
-5.1
7.1
18.8
23.6
25.5
27.4
29.3
31.1
136.9
Proposed savings
Pension Benefit Guarantee Corp.:
Current services
Proposed savings
Military retirement:
Current services
-0.4
-0.8
-1.0
-1.2
1.4
-4.8
*
*
-0.2
-0.2
17.6
18.9
20.1
21.4
22.6
100.7
Proposed savings
Unemployment insurance:
Current services
-0.3
-0.5
-0.5
-0.5
-0.6
-2.4
18.3
17.7
17.0
15.5
14.9
83.3
0.0
0.0
0.0
0.0
0.0
0.0
188.3
201.8
216.4
231.3
246.2
1,083.9
0.0
0.0
0.0
0.0
0.0
0.0
1.7
_*
1.8
*
1.8
1.8
_*
1.8
*
8.8
-0.1
6.4
*
6.5
*
6.7
*
6.9
*
7.1
*
33.7
*
Proposed changes
Social Security:
Current services
Proposed changes
Black Lung:
Current services
Proposed savings
Railroad retirement:
Current services
Proposed savings
*
0.2
-0.2
0.1
0.1
-0.3
-1.0
* $50 million or less.
Note: Items do not add to total because off setting receipt accounts for military retirement and railroad retirement interchange and other small accounts
are not displayed.
3-24
THE BUDGET FOR FISCAL YEAR 1985
The modest proposals forwarded at this time reflect a number of
considerations. First, major reforms in the direction of benefit restraint and solvency improvement were imposed on two of the
major programs—social security and railroad retirement—during
1983. In combination, these reform bills will increase revenues or
decrease outlays by $132 billion over the 1984-1989 period. Since
both of these reform undertakings represented carefully balanced
bipartisan compromises, it would be inappropriate to re-open these
issues at the present time.
Secondly, it should be noted that despite frequent assertions to
the contrary, the social insurance budget has experienced substantial reform and fiscal restraint over the last 3 years. The table
below compares actual and current law spending levels for 19821986 with the levels that would have occurred under the laws that
existed prior to January, 1981. Over 1982-1986, these savings total
$84 billion. Due to already implemented reforms, social insurance
costs will be 7% lower in 1985 and 1986 than under pre-1981 law.
SOCIAL INSURANCE BUDGET SAVINGS, 1982-1986
(Dollars in billions)
1982
Pre-1981 law
Actual/current services
Savings from prior law
Percent savings
1983
1984
1985
1986
Total
254.6
248.9
-5.7
-2.2%
287.0
276.8
303.2
283.8
-19.4
-6.4%
328.9
305.8
-23.1
-7.0%
354.8
329.1
-25.7
-7.2%
1,528.4
1,444.4
-83.9
-5.5%
-10.1
-3.5%
As a consequence of reforms adopted since 1980, the rapid real
cost expansion that occurred from 1966 through 1980 has largely
abated. As is shown in the comparative 5-year intervals below, the
constant dollar current services growth rate for 1985-1989 will be
almost one-fourth the pace recorded during the late 1960's and first
half of the 1970's. With the additional reforms proposed in the 1985
budget, the real growth rate would drop to 2.6%—well below the
projected 4% real GNP growth rate for the period.
Thus, the outlook for the 1980's reflects significant success in
bringing social insurance and pension cost growth within sustainable limits. Despite the temporary surge of unemployment insurance costs in 1982-83, the 1985 current services baseline stands
23% above its 1980 constant dollar level, reflecting growth of 4.2%
per year. It is entirely possible that the additional medicare, Feder-
3-25
BUDGET PROGRAM AND TRENDS
al retirement and indexing reforms that will be required after
1985, could reduce the remaining growth momentum of the social
insurance budget to negligible rates by the end of the decade. This
would permit the cost burden on the national economy to fall and
forestall the need for significant additional boosts in the already
high payroll tax rates that finance it.
COMPARATIVE SOCIAL INSURANCE AND PENSION GROWTH, 1966-1989
(1985 constant dollars in billions)
1966
1967
1968
1969
1970
Average
66.8
+ 12.7%
78.2
+ 17.1%
87.1
+ 11.4%
94.4
+8.4%
102.8
+ 8.9%
+ 11.7%
1971
1972
1973
1974
1975
Average
122.0
+ 18.7%
133.6
+9.5%
150.0
+ 12.3%
162.7
+ 8.4%
192.3
+ 18.2%
+ 13.3%
1976
1977
1978
1979
1980
Average
212.6
+ 10.6%
220.0
+ 2.8%
222.0
+0.1%
227.4
+2.4%
248.6
+9.3%
+ 5.0%
1985
1986
1987
1988
1989
Average
Current services, 1985-89:
Amount
Percent real growth
305.8
+2.7%
314.7
+2.9%
325.3
+3.4%
336.1
+3.3%
348.1
+3.6%
+3.2%
1985 Budget, 1985-89:
Amount
Percent real growth
303.8
+2.3%
310.2
+2.1%
319.1
+2.9%
328.0
+2.8%
338.0
+3.1%
+2.6%
Actual 1966-70:
Amount
Percent real growth
Actual 1971-75:
Amount
Percent real growth
Actual 1976-80:
Amount
Percent real growth
. . . .
This remarkable de-acceleration in the cost growth of the social
insurance programs reflects a 4-point bipartisan policy consensus
that has emerged since 1977. The principles underlying this consensus include: 1) commitment to maintaining the basic structure of
universal protections against the risks of unemployment, retirement, old age, sickness, and disability that emerged over the 4
decades prior to 1980; 2) recognition that benefit liberalizatons,
coverage expansions and ad hoc payment increases granted during
the 1960-1970's had produced unsustainable growth momentum
that had to be checked firmly; 3) rejection of massive general fund
subsidies as a means of halting the deteriorating financial condition of the various social insurance trust funds in favor of "solven-
3-26
THE BUDGET FOR FISCAL YEAR 1985
cy plans" that reinforced the essential social insurance character of
these programs (i.e. mandatory savings via the payroll tax to generate adequate dedicated financing for the universal protections provided); and 4) a solvency reform formula based on an "all parties
contribute" principle that has steadily reversed the massive funding shortfalls that emerged in the late 1970's and early 1980's.
The significant measure of success achieved thus far in both
slowing the growth and repairing the solvency of the major social
insurance programs is displayed in the table below. To be sure, the
dedicated financing principle is not comprehensive among the
entire range of programs here classified as social insurance. General fund subsidies cover 26% of the gross cost of medicare, temporary FSC benefits under UI are financed with general revenues,
and the civil service retirement program is only partially funded
by employer/employee contributions. Nevertheless, on an aggregate basis, dedicated financing is the overwhelming policy rule.
Between 1979 and 1983, the balance between current cash outlays and dedicated receipts steadily worsened under the combined
pressure of recession-swollen outlays for unemployment insurance
and the severe deterioration in the financial status of railroad
retirement, OASDI, and the medicare program. The steady improvement projected under both current law and the 1985 budget
for 1985-89 reflects the cumulative and growing effects of solvency
reform and benefit restraint legislation adopted since 1977.
These legislative improvements began with the 1977 Social Security Act. This initial measure raised scheduled payroll taxes
throughout the 1980's and also prospectively lowered the benefit
replacement rate by 40% when fully effective in 1989 compared to
prior law. The disability amendments of 1980 have likewise had a
substantial effect on the trend growth rate of outlays in this part of
the system. Between 1970 and 1979 real social security disability
costs rose by 169%, while current services costs are now projected to
decline by 8% in real terms between 1980 and 1989. Similarly, the
1981 Reconciliation Act amendments resulted in strong incentives
for state actions to restrain UI benefits and improve solvency, as
well as modest medicare and social security benefit cost savings.
The 1982 TEFRA amendments will have a major cost restraining
impact on medicare as prospective reimbursement takes hold. Finally, the 1983 bipartisan solvency bills on railroad retirement and
social security have obviously resulted in major financial improvements in the status of these systems.
Taken together, these steps will nearly close the financing gap in
the social insurance budget as a whole by 1989—with revenue
coverage rising from 76 cents to 95 cents on each dollar of aggregate outlays. It is evident that the future solvency reform measures
needed to arrest the continued deterioration of the medicare fund,
3-27
BUDGET PROGRAM AND TRENDS
fully integrate Federal retirement with social security, and improve the functioning of indexing mechanisms can be expected to
close most of the remaining gap.
SOCIAL INSURANCE AND PENSION BUDGET SOLVENCY TRENDS
(Dollars in billions)
1979
1980
1981
1982
1983
1984
1547
138.9
183.5
157.8
216.1
182.7
246.8
201.5
276.2
209.0
283.5
239.5
-15.8
.90
-25.7
.86
-33.4
.85
-45.3
.82
-67.3
.76
-44.1
.84
1985
1986
1987
1988
1989
305.5
269.0
328.4
294.6
354.0
320.3
380.2
357.7
408.2
389.5
-36.5
.88
+ 2.7
-33.8
.90
+ 6.8
-33.7
.90
+9.5
-22.5
.94
+ 12.5
-18.6
.95
+ 15.6
1979-1984 actual or enacted:
Outlays
Receipts
Cash deficit
Receipts/outlays
1985-1989 current services:
Outlays
Receipts
Cash deficit
ReceiDts/outlavs
Impact of 1985 Budget
. ..
LOW-INCOME BENEFIT PROGRAMS
This group includes all of the major means-tested entitlements
such as food stamps, AFDC, SSI, medicaid, subsidized housing and
child nutrition except veterans pensions. It also includes certain
discretionary programs that provide means-tested cash or in-kind
benefits, principally WIC, low-income energy assistance and refugee aid. Taken together these programs largely constitute the
direct social safety net of cash and in-kind assistance available to
the nation's low-income population.
The President's 1985 budget proposes only modest additional reforms including continuation of the 3% matching reduction in
medicaid and mandatory co-payments to restrain excessive utilization; further steps to reduce overlap and erroneous payments in
AFDC; minor cost-savings in the food stamp and child nutrition
programs, and funding slightly below the current services rate for
WIC, low-income energy aid, and subsidized housing.
LOW-INCOME BENEFIT PROGRAMS: SUMMARY
(Dollars in billions)
1985
1986
1987
1988
1989
Total
Totals
Current services
68.3
72.0
76.3
81.1
84.8
382.5
Proposed savings
Percent change
-2.8
-4%
-3.5
-5%
-3.8
-5%
-4.1
-5%
-4.4
-5%
-18.7
-5%
3-28
THE BUDGET FOR FISCAL YEAR 1985
LOW-INCOME BENEFIT PROGRAMS: SUMMARY—Continued
(Dollars in billions)
1986
1985
1987
1988
1989
Toy
Major program changes
Medicaid:
Current services
22.0
23.8
26.1
28.5
31.0
131.4
Proposed savings
Subsidized housing:
Current services
-1.1
-1.1
-1.2
-1.2
-1.2
-5.7
10.7
11.4
12.1
12.7
13.3
60.2
Proposed savings
Pood stamps.Current services
-0.2
-0.4
-0.5
-0.6
-0.8
-2.5
11.1
11.7
12.1
12.3
12.6
59.7
Proposed savings
Women, infants, children (WIC):
Current services
-0.4
-0.4
-0.4
-0.3
-0.3
-1.8
1.5
1.5
1.6
1.6
1.7
7.9
Proposed savings
Child nutrition:
Current services
-0.2
-0.2
-0.2
-0.2
-0.2
-1.1
3.8
4.1
4.4
4.7
5.0
21.9
Proposed savings
AFDC:
Current services
_*
-0.1
-0.2
-0.2
-0.3
-0.9
Proposed savings
Low-income energy assistance:
Current services
Proposed savings
All other low-Income:*
Current services
Proposed savings
6.8
7.0
7.1
7.1
7.3
35.3
-0.8
-1.0
-1.1
-1.1
-1.1
-5.1
2.0
2.0
2.1
2.2
2.3
10.7
0.1
-0.2
-0.3
-0.3
-0.4
-1.3
10.4
10.5
10.8
12.0
11.6
55.4
*
-0.1
-0.1
-0.2
-0.1
-0.3
* Principal programs include SSI, food donations and commodity distribution, and earned income tax credit.
Over the past three budget rounds, one of the most intractable
budget and social policy issues facing the Nation in 1980 has largely been resolved. The essential dilemma was the competing requirements to slow drastically the 1970's runaway growth momentum of
low-income benefits programs and, at the same time, to maintain
an adequate social safety net to support the income needs of the
Nation's poor. The latter requirement applied both to periods of
special circumstances, such as the 1982-83 recession, and to ordinary economic times in the case of those who cannot support
themselves through no fault of their own. That both of these objectives have been accomplished is perhaps best illustrated by the
constant dollar funding trend over the past 15 years. After more
than tripling in real terms between 1970 and 1981, low-income
benefit costs will remain constant between the pre-recession, prior
law level (1981) and the post-recession current law level. Stated
differently, the unsustainable real growth rates of the 1970's have
been brought to an abrupt halt, but the network of in-kind and
cash support evolved during that period has not been reduced in
real terms—just better targeted to genuine need.
3-29
BUDGET PROGRAM A N D TRENDS
LOW-INCOME BENEFIT OUTLAYS
(1985 constant dollar amounts in billions)
Amount
1970
1981
1985 current services
20.8
68.0
68.3
Percent
change from
1970
+ 228%
+ 229
This stabilization of real program costs is attributable to the
carefully targeted reforms proposed by the administration and enacted in substantial measure by the Congress over the past 3 years.
The table below compares the estimated cost of pre-1981 law with
actual and current services outlays for 1982-86. The cumulative
reduction of $38 billion in nominal outlays over the period has
been sufficient to halt real program growth as indicated above, yet
maintain a spending level that in 1984 will amount to nearly
$2,000 per capita relative to the officially defined poverty population in the U.S.
LOW-INCOME BENEFIT PROGRAM SAVINGS ENACTED: 1982-1986
(Dollars in billions)
1982
Pre-1981 Law
Actual/current services
Enacted savings
Percent change
1983
1984
1985
1986
Total
62.7
56.6
„
70.2
63.2
71.4
63.7
76.1
68.3
81.4
72.0
361.7
323.8
-6.1
-10%
7.0
-10%
7.7
-11%
7.8
-10%
9.4
-12%
37.9
-10%
It has been frequently asserted that these reforms resulted in a
significant abandonment of Federal financial responsibility to the
poor—especially during the difficult economic times of 1982-83. As
is shown in the table below, the truth is more nearly the opposite.
Relative to nearly comparable economic conditions in 1975-76 and
less severe recession conditions in 1971-72, constant dollar availability of cash and in-kind support for the Nation's poor in 1982-83
was 35% and 110% greater, respectively, despite the reform measures enacted during this period.
MAJOR LOW-INCOME BENEFIT PROGRAMS
(Average annual constant (1985) dollar outlays)
1971-72
Cash assistance
Housing aid
Medical
Nutrition
Total
1975-76
1982-83
6.5
18.5
4.2
13.7
13.1
20.1
9.6
19.3
17.9
31.8
49.4
66.8
13.8
2.2
9.3
3-30
THE BUDGET FOR FISCAL YEAR 1985
Under the President's proposed 1985 budget, the new equilibrium
attained during 1981-84 would be maintained through the remainder of the decade. In aggregate real terms, the social safety net of
low-income benefit programs would neither expand nor contract.
The focus would be on sustaining economic growth to reduce the
level of need, medical cost containment to ensure adequate assistance to the poor and elderly at minimum budget cost, and marginal program reforms elsewhere to improve targeting and eliminate
remaining abuses of these programs. As shown in the table below,
after a 30-year period in which the assistance needs of the Nation's
poor were increasingly recognized and a variety of rapidly expanding in-kind and cash benefit programs were put in place to meet
these needs, a stable policy and budget framework has now been
achieved. The task of Federal policy can henceforth shift from the
question of budget resource adequacy to the improvement of program structures in order to eliminate inequities, program overlaps
and gaps, and the detrimental social impact of the disincentives to
self-support and work effort remaining in many individual programs.
GROWTH AND STABILIZATION OF FEDERAL LOW-INCOME BENEFIT PROGRAMS, 1954-1989
(1985 constant dollar amounts in billions)
Ending level
Average annual
real growth
over period
.
10.4
39.8
66.8
5.3%
14.4
5.2
1984-1989 proposed
68.4
0.5
1954-1964.
1964-1974
1974-1984
.
EDUCATION, TRAINING, HEALTH, AND SOCIAL SERVICES
This category includes the whole array of Federal human services support programs that have evolved since the early 1960's. In
constant dollars, these programs grew from $5 billion in 1962 to
$46 billion by 1979. The significant fiscal retrenchment achieved in
these programs since 1980 would be reinforced by modest additional savings in the 1985 budget.
3-31
BUDGET PROGRAM AND TRENDS
EDUCATION, TRAINING, HEALTH AND SOCIAL SERVICES: SUMMARY
(Dollars in billions)
1986
1987
1988
30.8
32.0
33.0
1.8
-5.8%
-3.1
-9.8%
4.2
-12.7%
1985
1989
Total
34.1
35.1
164.9
-5.1
-15.0%
-6.0
-17.0%
-20.2
-12.2%
Totals
Current services
Proposed savings
Percent change
Major program changes
Impact aid:
Current services
Proposed savings
Compensatory education:
Current services
Proposed savings
Handicapped education:
Current services
Proposed savings
Vocational and adult:
Current services
Proposed savings
State education block grant:
Current services
Proposed increases
Student assistance:
Current services
Proposed savings
Guaranteed student loans:
Current services
Proposed savings
State employment and training grants-.
Current services
Proposed savings
Work incentives program:
Current services
0.6
0.7
0.7
0.7
0.7
3.4
-0.1
-0.1
-0.1
0.2
-0.2
0.7
3.4
*
3.6
3.8
4.0
4.1
19.0
0.2
-0.3
-0.5
-0.6
-1.5
1.2
1.3
1.4
1.4
1.5
6.7
-0.1
-0.1
-0.2
-0.2
-0.6
0.9
*
0.9
0.9
1.0
-0.1
-0.1
0.1
4.6
0.4
_*
0.9
*
0.4
0.5
0.5
0.5
0.5
4-0.1
4-0.2
4-0.2
4-0.2
4-0.2
2.5
+0.9
4.0
4.2
4.4
4.6
4.7
21.9
-0.1
-0.5
-0.7
0.8
-0.9
-3.0
2.9
3.1
3.0
2.8
2.7
14.4
-0.2
-0.2
0.2
0.2
0.3
-1.1
2.9
2.9
3.0
3.2
3.2
15.2
-0.1
-0.2
-0.3
0.4
-0.5
-1.5
0.3
0.3
0.3
0.3
0.3
1.5
Proposed savings
Rehabilitation services-.
Current services
-0.2
-0.3
0.3
0.3
0.3
-1.5
1.2
1.2
1.3
1.3
1.4
6.4
Proposed savings
Indian health services:
Current services
-0.1
-0.1
-0.2
-0.2
-0.2
0.8
0.9
0.9
1.0
1.0
Proposed savings
-0.1
-0.1
-0.2
-0.2
-0.2
Community services block grant:
Current services
Proposed savings
Legal Services Corporation:
Current services
Proposed savings
All other programs:1
Current services. .
Proposed savings
1.1
4.8
-0.7
0.4
0.4
0.4
0.4
0.4
2.0
-0.2
-0.4
-0.4
-0.4
0.4
-1.9
0.3
0.3
0.3
0.3
0.3
1.6
-0.3
-0.3
-0.3
-0.3
-0.3
-1.6
11.4
-0.3
11.7
-0.8
12.0
-1.2
12.7
-1.5
13.2
2.0
60.9
-5.8
*$50 million or less.
1
Major programs include bilingual and Indian education, higher and continuing education, jobs corps, older Americans employment, Federal State
employment service grants, social services block grant. Head start, Older Americans Act grants, child welfare and foster care, primary care,
maternal and child health grants, preventive health block grant, ADAMHA block grant and A c t m
420-000 0 - 84 - 6 : QL 3
3-32
THE BUDGET FOR FISCAL YEAR 1985
With the exception of 4 significant programs, savings proposed in
this category consist largely of restraining nominal funding growth
to slightly below the current services level after 1985 and continued retrenchment of small special project discretionary authorities
associated with many of the major state and local grant programs
(e.g. disadvantaged and handicapped education, the Jobs Partnership and Training Act, rehabilitation services, etc.).
The four exceptions—student aid and higher education, community services block grant, the Legal Services Corporation and
WIN—account for 50% of the savings from current services proposed in this category. The administration continues to believe that
student aid levels are excessive and that the latter three programs
should be terminated. As shown in the table below, programs other
than these four would be funded at about 92% of the current
services level over the next 5 years.
COMPARISON OF EDUCATION/TRAINING, HEALTH AND SOCIAL SERVICES FUNCTION BETWEEN
DEEP-CUT PROGRAMS AND NEAR-CURRENT SERVICES PROGRAMS
(Dollars in billions)
Total
1985
Continued reform: Student aid and higher education,
LSC, CSBG, and WIN:
Current services
Proposed savings
Percent change
Near current services: All other education, training,
health and social service programs:
Current services
Proposed savings
Percent change
1986
1987
1988
1989
8.4
8.8
8.9
9.0
9.1
44.2
1.1
13%
2.1
1.9
21% - 2 4 %
2.4
-26%
2.6
-28%
-10.0
-23%
25.0
26.0
120.7
22.4
23.2
0.7 - 1 . 3
-3%
24.1
2.1
2.7
3.4
9% - 1 1 % - 1 3 %
-10.2
-8%
The relatively mild degree of additional restraint proposed in the
1985 budget for this category reflects the fact that the original
reform goals proposed by the administration in 1981 have been
substantially achieved. Dozens of funding authorities for education,
training, health, and social services grants have been consolidated
into six block grants. Wasteful programs like public service jobs
(CETA) have been eliminated entirely. Due to these economies and
reforms, constant dollar funding levels have been substantially
reduced without significant reduction in local service levels or
responsiveness to genuine need. Most importantly, the runaway
growth momentum exhibited by these programs in the late 1970's
has been stopped and reversed.
As displayed in the table below, the programs in this category
grew at unsustainable rates throughout the 1970's—rising by 5.3%
per year in real terms during 1970-1974 and 9.3% between 19751979.
3-33
BUDGET PROGRAM AND TRENDS
By contrast, since the constant dollar peak in 1979, substantial
contraction has occurred in this sector of the budget—averaging
7.3% per year. The current services budget for 1985-89 would
continue to contract slightly reflecting the declining real trends in
GSL costs. The 1985 budget plan proposes to essentially continue
the rate of contraction begun during the Carter administration and
accelerated in 1982. By 1989, constant dollar funding would be
returned to its 1970 level.
TRENDS IN EDUCATION: TRAINING, HEALTH, AND SOCIAL SERVICE PROGRAMS
(1985 constant dollar amounts in billions)
1970
1970-74 actual:
Amount
Annual real growth
24.1
. .. +7.6%
1975
1975-79 actual:
Amount
Annual real growth
1971
1972
32.5
26.6
+ 10.3% +22.1%
1976
34.4
38.0
+ 18.3% + 10.5%
1973
32.3
-0.6%
1974
Average
29.1
9.9%
+ 5.3%
1977
1978
1979
Average
39.2
+2.6%
45.2
+ 15.2%
46.4
+2.7%
+ 9.3%
1983
1984
Average
31.8
+ 2.8%
-7.3%
1980
1985-89 current services:
Amount
Annual real growth
1985-89 President's budget:
Amount
Annual real growth
1982
44.7
-3.7%
41.6
-6.8%
32.5
-21.8%
1985
1980-84 actual:
Amount
Annual real growth
1981
1986
1987
1988
1989
Average
30.8
-3.5%
30.6
-0.6%
30.2
-1.1%
30.0
-0.7%
29.8
-0.6%
-1.3%
29.0
-8.9%
27.6
-4.8%
26.4
-4.3%
25.5
-3.3%
24.8
-3.0%
-4.9%
30.9
5.0%
An analysis of the distribution of the constant dollar funding
decline, from mid-1970's peak levels, demonstrates that it has been
accomplished in a way consistent with national needs, the proper
fiscal roles of Federal, State, and local governments, and the results of program evaluations undertaken over the years. Public
service employment and the CETA program have been cut the
most, reflecting their general ineffectiveness over a decade in
which nearly $54 billion was spent. The case is similar for the
original Great Society community action type programs that produced little lasting betterment.
Elementary and secondary education funding has been contracted about 19% thus far, as is consistent with the original administration consolidation and reduced funding proposal. A further re-
3-34
THE BUDGET FOR FISCAL YEAR 1985
duction to 28% is warranted in light of the relative fiscal positions
of the Federal Government vs. State and local governments projected for the remainder of the decade.
Health, mental health, and social services programs, in which a
large share of budget dollars are absorbed by vendors and middleincome professionals, have also been reduced by 20-40% thus far—
with further contraction proposed for the future. The one exception
to this pattern of contraction is higher education and student aid:
the degree of reduction through 1984 is still far less than is consistent with the merits of funding largely middle income students and
the sharp fiscal constraints operative on the budget as a whole.
CHANGE FROM PEAK FUNDING: EDUCATION, TRAINING, HEALTH, AND SOCIAL SERVICES
(1985 constant dollar amounts in billions)
Amount
Reduction
from peak
year
Total:
1979 peak
1984 enacted...
1985 proposed..
1989 proposed..
Public employment and job training services:
1978 peak
1984 enacted
1985 proposed
1989 proposed
Original Great Society: community action, LSC, juvenille justice, Action:
1973 peak
1984 enacted
1985 proposed
1989 proposed
Elementary and secondary education-.
1980 peak....,
1984 enacted
1985 proposed
1989 proposed
Social services block grant, foster care, Head Start, rehabilitation, elderly programs, and
other social services:
1979 peak
1984 enacted
1985 proposed
1989 proposed
Health and mental health services.1976 peak
1984 enacted
1985 proposed
1989 proposed
Higher education and student aid:
1981 peak
1984 enacted
1985 proposed
1989 proposed
46.4
31.9
29.0
24.8
-31%
-38
-47
17.0
5.3
4.8
4.2
-69
-72
-75
3.4
1.4
0.7
0.5
-60
-80
-86
9.0
7.3
7.1
6.4
-19
-21
-29
8.6
6.8
6.4
5.6
-20
-25
-35
4.8
3.0
2.8
2.6
-37
-41
-47
8.3
8.1
7.1
5.6
-3
-14
-33
3-35
BUDGET PROGRAM AND TRENDS
AGRICULTURAL AND RURAL PROGRAMS
These programs consist of three main types designed to assist the
agricultural economy and rural communities: 1) the price support
and subsidy payment operations of the Commodity Credit Corporation (CCC); 2) various agricultural sector subsidy and service programs such as soil conservation activities and the extension service; and 3) subsidized rural housing, development and farm credit
programs operated by the Farmers Home Administration. No progress has been made in reducing the budget cost of this function
since 1981. The administration is therefore proposing substantial
savings and reforms in the 1985 budget, and will propose even
greater retrenchment in future years.
AGRICULTURAL AND RURAL PROGRAMS: SUMMARY
(Dollar amounts in billions)
1985
Totals
Current services
1986
1987
1988
1989
Total
17.5
*
**
17.6
17.4
16.8
16.4
85.8
-2.2
12%
-2.1
13%
-2.1
12%
-2.2
-13%
-8.6
10%
10.7
10.4
10.1
9.4
9.0
49.6
Proposed changes
Soil and water conservation
subsidies:
Current services
+0.1
-1.8
-1.5
-1.3
-1.2
-5.7
0.7
0.7
0.7
0.7
0.8
3.6
Proposed savings
Rural housing and development:
Current services
-0.1
-0.2
-0.2
-0.2
-0.2
-0.9
2.8
3.1
3.1
3.1
3.1
15.1
Proposed changes
Subsidized Farm Credit:
Current services
+0.1
0.1
0.1
0.2
-0.3
-0.6
1.4
_*
1.3
*
1.2
*
1.2
*
1.1
*
6.1
0.8
*
0.8
0.9
0.9
1.0
4.4
-0.1
-0.1
-0.1
-0.1
-0.4
0.3
*
0.4
0.4
0.4
0.4
1.9
-0.1
-0.1
0.1
-0.1
0.4
Proposed savings
Percent change
Major programs
Farm price supports (CCC):
Current services
Proposed changes
Agricultural research:
Current services
Proposed savings
Extension service.Current services
Proposed savings
Allother: 1
Current services
0.9
1.0
1.1
1.1
1.2
5.1
Proposed savings
-0.1
-0.1
-0.1
-0.1
-0.1
-0.5
*$50 million or Jess.
*1* 0 . 5 % or less.
Includes inspection and marketing services, foreign agricultural and statistical services, Federal crop insurance, and animal and plant health
programs.
This part of the non-DOD budget is the singular case in which a
substantial increase in constant dollar budget costs has occurred
3-36
THE BUDGET FOR FISCAL YEAR 1985
over the past 3 years. To a substantial degree, this outcome was
driven by the depressed state of the farm economy and the excessively costly and counter-productive farm bill enacted in 1981.
While CCC costs have been historically volatile in response to
cyclical swings in farm prices, production and incomes, the table
below makes clear that actual and current services constant dollar
costs over 1982-86 will exceed all 5-year periods since the early
1960's by large magnitudes.
AGRICULTURE AND RURAL PROGRAMS, 1962-1986
(1985 constant dollar amounts in billions)
Average annual outlays
Price
supports
All other
Total
2.9
2.6
2.8
4.7
7.0
12.3
12.6
7.7
10.7
19.3
TO
1962-1966
1967-1971
1972-1976
1977-1981
1982-19861
1
9.4
10.0
4.9
6.1
12.3
Percent
increase in
1982-86
average
compared to
+56%
+53
+ 149
+ 80
Current services level for 1984-86.
The President's 1985 budget seeks a steady unwinding of these
historically high budget levels during the remainder of the 1980's.
In the case of farm price support-CCC costs, the proposed target
price freeze for the major commodity programs and the assumption
that the dairy price support will be reduced to $11.50/hundred
weight under the existing program and then frozen at that level
through the remainder of the decade, results in constant dollar
outlays dropping to the $6 billion-$7 billon range by the end of the
budget period. Nevertheless, the proposed CCC-farm price support
budget even with these reforms averages $8.1 billion per year in
constant dollars over 1985-89. It is, therefore, imperative that
when the current farm program expires in 1985, additional substantial retrenchment of price-support, target price and subsidy
levels be enacted in order to bring the farm programs within
acceptable budget levels.
The 1985 budget also proposes to steadily reduce budget costs for
conservation, rural housing and development, and USDA services
relative to the peak constant dollar costs generated during earlier
years. In combination with a lower-cost, market-oriented 1985 bill,
these steps should make it possible to reduce total agriculture and
rural program constant dollar costs to $10 billion per year or less
by the late 1980's. In real terms, this is a level consistent with pre1981 costs and only about half the bloated levels experienced
during 1982-1986.
BUDGET PROGRAM AND TRENDS
3-37
CHANGE FROM PEAK FUNDING: AGRICULTURE AND RURAL PROGRAMS EXCLUDING PRICE SUPPORTS
(1985 constant dollar amounts in millions)
Percent
reduction from
peak
Soil and water conservation subsidies:
1962 peak
-39%
-44
-52
-62
1981
1984 enacted
1985 proposed
1989 proposed
Subsidized farm credit: *
1982 peak
1984 enacted
1985 proposed
1989 proposed
Rural housing and development:
1974 peak
-2
-13
-42
1984 enacted
1985 proposed
1989 proposed
USDA research, extension, animal and plant health and other support services.1979 peak
1984 enacted
1985 proposed
1989 proposed
1
-2
-8
-25
-7
-15
-21
On budget outlays only.
PUBLIC INFRASTRUCTURE
This category includes the water resources and navigation programs, highways, airways, mass transit, and the sewage treatment
grant program. Considerable progress has been achieved over the
past three budget rounds in strengthening Federal policy within
the historically accumulated range of national funding responsibilities. The Federal financial role in purely local sewer systems and
mass transit funding has been reduced. The long-term decline in
inefficient Federal navigation and water project investment has
been accelerated. And more adequate user tax levels to meet clear
national responsibilities for the Nation's highway and airway/airport systems have been enacted. The President's 1985 budget would
continue these trends by proposing more adequate user fees for
inland navigation and deep ports, further reductions in excessive
Federal funding for local mass transit, and implementation of the
highway and airways/airports improvement programs as envisioned in the 1982 user tax legislation in these areas.
After three budget rounds, it is evident that a decisive sorting
out has occurred among traditional Federal infrastructure investment roles. In the case of that portion of the Nation's public
infrastructure that is truly national in scope and integrated in
function, the Federal funding role has been strengthened with
increased user fees and program levels commensurate with demon-
3-38
THE BUDGET FOR FISCAL YEAR 1985
PUBLIC INFRASTRUCTURE: SUMMARY
(Dollars in billions)
1985
Totals
Current services
1986
1987
1988
1989
Total
28.8
29.8
30.8
31.4
32.2
153.0
Proposed savings
Percent change
Major programs
Water projects and navigation:1
Current services
-0.6
-2%
-0.2
-1%
-0.3
-1%
0.6
-2%
-0.9
-3%
-2.5
-2%
4.1
4.1
4.2
4.7
21.6
Proposed changes
Highway trust fund and other:2
Current services
-0.3
0.2
0.1
4.5
*
+0.1
-0.6
13.4
14.0
14.6
14.8
15.0
71.8
Proposed savings
Local mass transit:
Current services
-0.1
-0.1
-0.2
-0.3
-0.3
-0.9
4.2
4.6
4.7
4.6
4.6
22.7
Proposed savings
Airport grants-.
Current services
-0.2
-0.3
-0.5
-0.6
-0.8
-2.5
Proposed changes
FAA airway modernization:3
Current services
Proposed increases
FAA operations and other:
Current services
Proposed changes
0.8
0.8
0.9
0.9
0.9
4.3
+*
+0.1
+0.1
+0.1
+0.1
+0.4
0.8
0.9
1.0
1.0
1.1
4.7
+0.1
+ 0.3
+0.5
+0.6
+0.5
+ 2.0
3.0
3.0
3.2
3.3
3.5
15.9
+0.1
*
-0.1
-0.2
-0.4
-0.2
*$50 million of less.
1
Army Corps of Engineers, Bureau of Reclamation, and USDA small watershed projects.
2
Includes small programs such as highway safety demonstrations funded from general revenues.
3
Includes facilities and equipment fund and research and engineering.
strated investment needs. As shown in the table below, average
constant dollar financing for highways in the President's proposed
1985 budget will be increased above the 1960's levels, thereby reversing the "crowding out" that occurred during the 1970's due to
declining trust fund receipts and other domestic spending priorities. Likewise, constant dollar funding for the airports and airway
systems will exceed all previous levels, reflecting the growing importance of this segment of the Nation's transportation system.
Consequently, real funding levels for both programs combined in
the 1985-89 budget will exceed that for all 5-year intervals since
1960—but without adding to the deficit due to the 1982 legislative
enactment of sound user tax financing programs.
By contrast, constant dollar funding levels for primarily local
infrastructure needs have been substantially curtailed after three
budget rounds. For example, real outlays for local mass transit
exploded during the 1970's—rising from a mere $0.3 billion in 1970
to $4.8 billion by 1981. Under the out-going Carter administration
budget plan, local mass transit outlays would have risen further to
3-39
BUDGET PROGRAM AND TRENDS
SPENDING TRENDS: MAINLY NATIONAL PUBLIC INFRASTRUCTURE PROGRAMS
(In billions of 1985 constant dollars)
Average over period
Highways
11.3
12.0
10.8
11.1
13.0
1962-1966
1967-1971
1972-1976
1977-1981
1985-1989 proposed
Airports/
airways
2.4
3.0
3.9
4.1
4.9
Total
13.8
14.9
14.7
15.1
18.0
$5.2 billion in real terms in 1984. By contrast, 1984 enacted mass
transit funding will total $4.1 billion—a 21% reduction from the
previously projected level.
Likewise, real funding levels for local sewage treatment plants
would have remained above $4.6 billion per year by 1984 under the
outgoing Carter administration budget. Due to the cost sharing and
eligibility reforms instituted in 1981 at the administration's behest,
1984 outlays will be $2.6 billion—or 44% lower in real terms.
As shown in the table below, all categories of local and regional
public infrastructure investment will have been reduced substantially in the enacted 1984 budget from their historic peak levels.
Under the administration's proposed budget for 1985-89, this contraction of inappropriate Federal funding will continue.
CHANGE FROM PEAK FUNDING: LOCAL AND REGIONAL PUBLIC INFRASTRUCTURE INVESTMENT
(1985 constant dollar amounts in billions)
Amount
Local water projects and regional navigation.1980 peak
1984 enacted
1985 proposed
1989 proposed
Local mass transit:
1981 peak
1984 enacted
1985 proposed
1989 proposed
Local sewage treatment grants:
1977 peak
1984 enacted
1985 proposed
1989 proposed
Percent
change from
peak
5.7
4.4
3.8
4.0
-22%
-32
-28
4.8
4.1
4.0
3.2
-14
-17
-32
6.0
2.6
2.5
1.8
-56
-58
-70
As a consequence of these divergent budget trends, overall constant dollar funding levels for public infrastructure will decline
moderately from the peak level of 1980 through the proposed level
for 1989. However, by 1989, fully two-thirds of total funding will be
3-40
THE BUDGET FOR FISCAL YEAR 1985
devoted to highways and airports/airways, while funding for largely local and regional investments will decline from 49% of the
budget in 1980 to 34% in 1989.
SHIFT OF PUBLIC INFRASTRUCTURE BUDGET PRIORITIES TO MAINLY NATIONAL PUBLIC
INFRASTRUCTURE NEEDS
(1985 constant dollar amounts in billions)
1981 actual
Infrastructure outlays
Distribution of funding:
National highways/airways
Primary regional and local programs
29.8
51%
49%
1984 enacted
27.5
59%
41%
1989
proposed
26.6
66%
34%
VETERANS PROGRAMS
The President's 1985 budget for veterans programs, ranging from
disability compensation and pensions to the health care system,
housing guarantee program, life insurance plans, and GI education
benefits, is largely a current services budget. This reflects the
administration's continuing commitment to fulfill the obligations
and promises made to America's veterans over many decades. In
two cases—GI bill benefits and hospital construction—modest increases to the current services level are proposed. In the former
case, a 15% increase in education readjustment benefit levels is
requested because no increase has been granted since 1980—despite
a 20% increase in the cost-of-living and even greater rises in tuition costs at most qualifying institutions. The increase for hospital
construction reflects the out-year construction costs of 4 major
design projects proposed for 1985—the largest number of new starts
in recent times. While budget resources are self-evidently scarce in
the current fiscal environment, the growing number of veterans
eligible for health care services and the serious obsolescence and
disrepair of many facilities makes these planned increases unavoidable given prevailing policy commitments to the veterans population.
In 1985 veterans programs will cost $26 billion and account for
nearly 18% of domestic current services outlays outside of lowincome benefits and social insurance. The proposed current services funding level for 1985-89 therefore obviously limits overall
budget savings potential. Nevertheless, it has been possible to
achieve some savings in veterans programs since 1981. The actual
and current services funding level for 1982-1986 is about $5 billion
or 4% below the level proposed in the outgoing Carter administration budget.
3-41
BUDGET PROGRAM AND TRENDS
VETERANS PROGRAMS: SUMMARY
(Dollars in billions)
1985
Totals
Current services
1986
1987
Total
1989
1988
$26.1
27.0
28.3
29.8
30.8
142.0
Proposed increase
Percent change
Major Programs
Pensions and disability compensation:
Current services
-0.1
**
+0.5
+2%
+0.6
+2%
+0.8
+3%
+0.8
+3%
+2.6
+2%
14.3
14.8
15.4
16.0
16.5
77.0
Proposed change
Readjustment benefits (education):
Current services
0.0
0.0
0.0
0.0
0.0
0.0
1.6
*
1.2
1.1
1.0
0.9
5.6
+0.2
+0.1
+0.1
+0.1
+0.5
8.8
9.4
10.1
10.9
11.6
-0.1
+*
+*
+*
+*
50.8
*
0.6
0.7
0.7
0.7
0.7
3.4
+*
+0.3
+0.4
+0.6
+0.7
+ 2.0
0.7
0.9
1.1
1.3
1.2
+*
+*
+*
+*
5.2
+0.1
Proposed increase
Medical care system operations.Current services
Proposed change
Hospital construction:
Current services
Proposed increase
Other veterans programs:1
Current services
Proposed change
+*
*$50 million or less.
** 0.5% or less.
1
Offsetting receipts for readjustment benefits as well as outlays for medical research, housing funds, and life insurance.
Despite these relatively modest savings, it is also important to
note that the real cost of meeting the Nation's veterans commitments has declined significantly since the mid-1970's, and will continue to remain stable in constant dollar terms throughout the
1980's—even with the small increases in GI benefits and the hospital construction rise proposed in the 1985 budget.
VETERANS SAVINGS: 1982-1986
(In billions of dollars)
1982
Pre-Reagan baseline*
Change to actual or current services
1983
1984
1985
1986
Total
23.4
24.9
26.1
28.0
28.7
131.1
-0.1
-0.7
-1.0
-2.0
-1.6
-5.4
* $ 5 0 million or less.
1
Pre-Reagan veterans entitlement law repriced for actual and projected economic assumptions.
The reason for this declining real cost trend is that the major
veterans benefit programs—primarily pensions, disability compensation, and readjustment benefits—reached a peak constant dollar
cost of $24.5 billion in 1976 and have subsequently declined to $16.4
billion in the enacted 1984 budget. This drop is mainly accounted
3-42
THE BUDGET FOR FISCAL YEAR 1985
for by the steady phase-out of Vietnam-era GI bill eligibility and
costs, with smaller declines attributable to pension program reforms and declining caseloads since the 1970's. Disability compensation costs reached a $10 billion per year constant dollar cost
later—in 1981—but are projected to remain stable at this level
through the remainder of the decade.
By contrast, the constant dollar cost of health care operations
and hospital construction has increased from $7.0 billion in 1976 to
$9.1 billion in 1984—or by nearly 30%. Under the administration's
1985 budget, constant dollar costs for these activities will rise further to a level of $11.0 billion by 1989.
Nevertheless, the actual and projected decline in veterans entitlement costs is more than sufficient to offset the rising cost of the
medical care system. As a consequence, 1984 total veterans cost
will be down 19% in real terms from the 1976 peak, and will
remain essentially frozen at that level through 1989.
The table also makes clear that if overall veterans budget costs
are to be reduced in future years a thorough reappraisal of veterans health care system policy, hospital capacity, and operational
methods will be necessary. These issues will be subject to intensive
scrutiny by the administration in preparation for the 1986 budget.
TRENDS IN VETERANS PROGRAM COSTS: 1976-1989
(1985 constant dollar amounts in billions)
Amount
Total: 1
1976
1984 enacted
1985 proposed
1989 proposed
GI Bill benefits (readjustment):2
1976
1984 enacted
1985 proposed
1989 proposed
Pensions, disability compensation, and other entitlements:
1976
1984 enacted
1985 proposed
1989 proposed
Health care system operations:
1976
1984 enacted
1985 proposed
1989 proposed
Hospital construction:
1976
1984 enacted
1985 proposed
1989 proposed
1
Small net outlays for housing, life insurance, and medical research not displayed in detail.
* Net outlays after offsetting receipts from contributions.
Percent
change from
1976
32.3
26.3
26.0
26.9
-19%
-19
-17
10.0
1.5
1.3
0.6
-85
-87
-94
14.8
14.8
14.5
14.2
-2
-4
6.7
8.5
8.7
9.9
+28
+30
+48
0.4
0.6
0.7
1.2
+71
+90
+236
3-43
BUDGET PROGRAM AND TRENDS
GENERAL GOVERNMENT
This category includes all remaining components of the non-DOD
budget except for net interest and the defense and international
affairs related programs classified as "national interest programs"
and discussed below. While it is necessarily a catch-all classification, there are nevertheless a half-dozen clusters of programs and
activities that accord with well settled Federal responsibilities or
the inherent overhead costs of operating a large central government. These clusters include: 1) regulation of commerce and health
and safety; 2) Federal law enforcement agencies, including their
border control activities; 3) Federally-supported scientific and medical research and cultural subventions; 4) management of the public
domain and offsetting receipts from the sale of minerals and other
natural resources; 5) central functions such as tax collection, the
weather service, statistical agencies, and the patent office; and 6)
the administrative costs of Federal entitlement programs and departmental salary and expenses and other overhead costs not allocated to specific, direct Federal activities.
The 1985 budget proposes funding levels consistent with wellestablished administration priorities. Funding for law enforcement
and scientific research is increased above the current services level.
In almost all other cases, continued firm fiscal restraint is proposed, with aggregate savings amounting to over $10 billion during
the 5-year budget period.
Due to the inclusion of large, volatile offsetting receipt accounts
for OCS sales, on-shore mineral and resource proceeds and certain
GENERAL GOVERNMENT: SUMMARY
(Dollars in billions)
1985
1987
1986
1988
24.8
-2.2
-9%
26.8
-2.8
-10%
4.9
-0.1
5.0
0.2
6.2
+0.2
6.6
+0.2
+0.2
31.4
+0.8
-9.6
-0.6
-8.8
-0.7
-9.9
-0.8
-43.3
-2.7
2.1
+0.2
2.2
+0.3
2.3
+0.3
10.8
1989
Total
Totals
Current services
26.5
23.8
Proposed savings
Percent change
Major programs
Regulatory agencies x :
Current services
-0.7
-3%
-1.5
-6%
4.5
4.7
Proposed savings
Law enforcement 2 :
Current services
+0.1
*
5.7
5.9
Proposed increases
Management of the public
domain 3 :
Current services
+0.1
+0.1
-5.5
-9.4
Proposed savings
NSF and energy science:
Current services
-0.3
-0.4
2.0
2.1
Proposed increases
+0.1
+0.2
26.8
-3.2
-12%
5.2
0.2
6.9
128.6
10.5
-8%
24.4
-0.4
+ 1.1
3-44
THE BUDGET FOR FISCAL YEAR 1985
GENERAL GOVERNMENT: SUMMARY—Continued
(Dollars in billions)
1985
1986
1987
1988
1989
Total
4
Cultural and education support :
Current services
Proposed savings
National Institutes of Health 5 :
Current services
Proposed savings
NOAA:
Current services
Proposed savings
Internal Revenue Service, BGFO
and related:
Current services
1.1
*
5.2
-0.2
1.1
1.2
-0.1
-0.2
5.4
5.7
-0.3
-0.4
1.1
1.2
1.2
0.1
-0.2
-0.2
4.0
4.1
4.4
Proposed increases
Payment to D.C.:
Current services
+ 0.1
+*
+*
0.6
0.6
0.6
Proposed savings
Major department central
overhead 6:
Current services
-0.1
-0.1
Proposed savings
Social insurance administrative
costs 7:
Current services
-0.2
Proposed savings
Low-income benefit administrative
costs 8:
Current services
-0.1
Proposed increases
Federal employee health benefits:
Current services
Proposed savings
Legislative functions:
Current services'
Proposed changes
3.3
5.9
4.8
3.4
-0.2
6.1
-0.1
5.0
-0.1
3.4
-0.3
6.4
-0.2
5.3
1.2
-0.3
6.0
-0.6
1.3
-0.2
4.7
*
1.3
0.3
-1.0
6.2
28.5
-0.7
-2.2
1.3
-1.1
4.9
22.0
+*
+0.1
0.6
-0.1
-0.1
3.7
3.8
-0.3
-0.3
6.6
6.8
-0.3
1.3
31.7
-1.0
+0.7
8.8
+0.1
+0.2
+0.2
1.3
1.6
1.8
2.0
2.2
0.0
-0.2
-0.3
1.5
*
17.6
5.8
+ 0.1
1.5
*
2.9
-0.6
5.5
+0.2
1.5
*
6.1
0.2
0.6
-0.3
5.8
-0.4
1.6
*
-0.5
1.6
_*
26.4
-1.5
7.7
*
*$50 million or less.
Note: Details may not add to totals due to ommission of various small programs and minor offsetting receipt accounts.
1
FERC and EPA, NRC, OSMR, EPA operations and superfund, CFTC, FCC, FTC, SEC, NHTSA, ICC, CAB, NLRB, ESA, Food Safety Administration,
FDA, OSHA.
2
FBI, DEA, BATF, INS, Customs, Secret Service, DOT legal divisions, Federal Judiciary, Federal Corrections System.
3
Naval Petroleum Reserve, Forest Service, BLM, Indian lands, F&WS, land and water conservation fund, NPS, Geological Survey, OCS receipts,
various on-shore receipts for mineral and other resource sales.
* Libraries aid, NIE, public telecommunications planning grants, National Endowments for Arts and Humanities, Smithsonian and Library of
5
Includes ADAMHA research.
Department-wide or major bureau salaries and expense accounts in USDA, HHS, Labor, Education, Energy, HUD, DOT, Interior, Commerce and
7
Administrative costs of Ul, social security, medicare and civil service retirement.
8
Administrative costs of AFDC-CSE, nutrition programs, SSI and medicaid, including federal matching grants for state administrative costs.
6
intragovernmental transactions, long-term trends for the category
as a whole have limited analytical value. However, among the
major programmatic or activity clusters, a number of clear trends
BUDGET PROGRAM AND TRENDS
3-45
are apparent that highlight the changes that have been introduced
since 1981 and define opportunities for future budget savings.
First, the steady constant dollar expansion of the Federal law
enforcement budget that has been under way since the early
1960's, has been reinforced by the high priority placed on these
activities by the Reagan administration. As shown in the table
below, constant dollar law enforcement spending rose from $1.4
billion in 1962 to $4% billion by 1981, and will reach $5.7 billion in
the 1984 enacted budget. The proposed 1985 budget will increase
constant dollar funding levels to $6.0 billion by 1989—a 26% increase over 1981 and a level 4 times greater than 1962.
FEDERAL LAW ENFORCEMENT TRENDS: 1962-1989
[In constant 1985 dollars]
Amount
1962
1970
1981
$1.4
2.3
4.8
1984 enacted
1985 proposed
1989 proposed
5.7
5.8
6.0
Secondly, the explosive 1970's growth of regulatory agency budgets has been sharply contained. After having doubled in real terms
between 1962 and 1969, and tripled between 1969 and 1980, constant dollar regulatory agency costs in the enacted 1984 budget will
recede to their 1979 level ($4.4 billion). The President's 1985 budget
would stabilize real costs at about this level through 1989. Thus,
the rapid growth of regulatory costs has been brought to a halt—
with likely future real costs stabilizing in the $4V2 billion annual
range. Since this plateau reflects the near termination of traditional economic regulatory activities (e.g., ICC and CAB), most of the
remaining costs are attributable to the large health, safety and
environmental protection agencies (i.e., OSHA, NRC, EPA and
FDA will account for 52% of 1984 regulatory agency budget costs).
Prospects for additional future budget savings depend in considerable degree, then, on whether further progress in reducing the
scope and burden of health and safety regulation is made in the
years ahead.
REGULATORY AGENCY TRENDS: 1962-1989
[In constant 1985 dollars]
Amount
1962
1969
1980
0.8
1.6
4.8
1984 enacted
1985 proposed
1989 proposed
4.4
4.6
4.3
3-46
THE BUDGET FOR FISCAL YEAR 1985
Thirdly, due to the initiation of widescale leasing and production
from the outer continental shelf, the net budget flow to the Treasury from the public domain now substantially exceeds the operational costs of all major agencies responsible for its management.
NET BUDGET IMPACT OF PUBLIC DOMAIN RECEIPTS AND MANAGEMENT
[In constant 1985 dollars]
Average
amounts
1962-1970
1971-1980
1981-1984
+0.6
-2.3
-7.1
1985-1989 proposed
-8.4
This shift toward a strong positive cash flow and, therefore,
reduction in unified budget outlays is attributable to two factors.
First, significant cost savings and economies in public domain management agency operations have been achieved by the administration since 1980. Secondly, OCS and other receipts have been rising
steadily due to the administration's more flexible mineral leasing
policies. Between 1980 and 1984 operating costs have been reduced
22% in real terms while constant dollar receipts have risen by
36%.
The proposed 1985 budget would continue these trends with further cost reductions and a continued rise in planned receipts.
Given both the minimum operating cost requirements of the major
agencies—Forest Service, BLM, National Park Service and Fish
and Wildlife—as well as environmental and economic constraints
on leasing activities, it will be an increasingly difficult challenge to
further improve the net budget position of public domain activities
beyond the levels proposed in the President's 1985 budget.
CHANGE IN NET OUTLAYS OF PUBLIC DOMAIN ACTIVITIES
(In constant 1985 dollars)
Major
operational
programs 1
1 9 8 9 proposed
1
••. .
••
...
.
Net budget
outlays
+ 6.5
+ 5.1
1980 .
1984 enacted
Leasing,
royalty and
other
receipts 2
-8.7
-11.8
-2.2
-6.8
+4.6
-13.6
-9.0
Consists of program outlays for Forest Service, BLM, land and water conservation fund. Fish and Wildlife Service, National Park Service,
Geological Survey, Bureau of Mines and Naval Petroleum Reserves.
2
Primarily OCS receipts, Interior receipts, Naval petroleum reserve sales and Forest Services sales proceeds.
3-47
BUDGET PROGRAM AND TRENDS
Fourthly, constant dollar budget levels for scientific research, the
National Institutes of Health and cultural support programs will
have been reduced by about 5% in real terms between the 1980
peak and the 1984 enacted budget. The proposed 1985 budget essentially stabilizes total funding at this level—with constant dollar
outlays projected to average about $7.9 billion over the 1985-89
period.
However, within this stable total a modest reordering of priorities would continue to occur. Outlays in 1984 for scientific research (NSF and the DOE energy science programs) will be 6%
above the 1980 constant dollar level—with proposed future increases resulting in a 19% increase by 1989. By contrast, cultural
support programs have been reduced by 29% in real terms and
proposed further reductions in constant dollar funding—mainly in
the National Endowments and Corporation for Public Broadcasting—would result in a 46% reduction by 1989. Real funding levels for
NIH would remain slightly below the 1980 level for the remainder
of the decade.
TRENDS FOR SCIENTIFIC AND MEDICAL RESEARCH AND CULTURAL SUPPORT
(1985 constant dollar amounts in billions)
Amount
Scientific research (NSF and energy):
1980
1984 enacted
1985 proposed
1989 proposed
NIH and ADAM HA research and training:
1980
1984 enacted
1985 proposed
1989 proposed
Cultural support programs: 1
1980
1984 enacted
1985 proposed
1989 proposed
Total: Science, medical, and culture:
1980
1984 enacted
1985 proposed
1989 proposed
Percent
change from
1980
1.9
2.1
1.9
2.2
+ 6%
+ 16
+ 19
4.9
4.8
4.9
4.7
-2
+1
-4
1.5
1.1
1.0
0.8
-29
-31
-46
8.3
7.8
8.1
7.7
-5
-2
-7
1
Includes National Endowments for the Arts and Humanities, Corporation for Public Broadcasting, Smithsonian, Library of Congress, public
library grants, NIE and smaller related programs.
These trends make clear that this component of the budget has
been stabilized and new priorities have been established. However,
given the two-fifths reduction already proposed for cultural support
programs, further reductions beyond those already assumed in the
1985 budget will inevitably raise serious policy questions about the
420-000 O - 84 - 7 : QL 3
3-48
THE BUDGET FOR FISCAL YEAR 1985
appropriate level of Federal support for medical and scientific research.
Fifthly, the constant dollar cost of major central government
functions—IRS, debt management, BLS-census, NOAA, patent
office, GSA-property supply and record management, International
Trade and NBS—has drifted steadily upward in real terms over
many years, rising from $3 billion in 1962 to $6.3 billion in 1981.
This trend has continued over the past 3 years, with the 1984
enacted budget for these functions up by 12% to $7 billion. Under
the proposed 1985 budget, constant dollar expenditures would average about $7 billion per year over 1985-89.
The failure to reverse the overall trend thus far is primarily
attributable to the rising real cost of the IRS. As shown below, the
IRS constant dollar budget has risen by 16% since 1981 and will be
24% higher by 1989. All other central function costs have risen by
8%, with a modest further rise proposed by 1989.
Given the increasing emphasis on tax compliance and debt collection it will be difficult to reduce the major, dynamic cost component of this function (IRS) appreciably in future years. However,
increased receipt collections resulting from these funding augumentations will contribute to overall deficit reduction.
TRENDS IN COSTS OF CENTRAL FUNCTIONS
(1985 constant dollar amounts in billions)
Percent
change from
1981
Internal Revenue Services:
1981
1984 enacted
1985 proposed
1989 proposed
All other central functions 1 :
1981
1984 enacted
1985 proposed
1989 proposed
1
16%
+ 18
+24
+8
-6
+ 15
Includes D.C. payment in lieu of taxes in addition to major activities referred to in text.
As a result of the rapid expansion of Federal programs during
the 1970's, the constant dollar cost of departmental overhead not
specifically allocable to direct Federal services grew rapidly—from
$7.4 billion in 1970 to $13.8 billion by 1981. However, more than
80% of this growth was attributable to the administrative costs of
major entitlement programs ranging from social security, medicare, and unemployment benefits to AFDC, SSI, medicaid and the
Federal nutrition programs.
Since 1981, central overhead costs have been held constant in
real terms, but the abrupt slowdown is almost entirely attributable
to departmental and major agency salary and expense account
3-49
BUDGET PROGRAM AND TRENDS
reductions. The cost of entitlement benefit administration has continued to rise and is projected to stabilize at about $10.6 billion per
year over 1985-89. Under the proposed 1985 budget, all other Federal overhead costs would decline by about 16% in real terms by
1989.
Thus, because nearly two-thirds of unallocated overhead costs
are now attributable to entitlement benefit administration, it is
clear that significant future savings depend upon the development
of more efficient administrative systems to serve the millions of
Federal entitlement beneficiaries. Achieving this objective while
simultaneously reducing entitlement program errors and abuse
poses one of the most formidable management challenges faced by
the administration.
TRENDS IN MAJOR ADMINISTRATIVE OVERHEAD
(1985 constant dollar amounts in billions)
Amount
Entitlement benefit administrative costs:
1981
1984 enacted
1985 proposed
1989 proposed
Departmental overhead and fringe benefits:
1981
1984 enacted
1985 proposed
1989 proposed
9.8
10.5
10.6
10.6
5.0
4.7
4.5
4.2
Percent
change from
1981
+ 7%
+9
4-8
7
-11
-16
NATIONAL INTEREST PROGRAMS
This grouping consists of programs that for the most part have
attained priority status as the administration's foreign policy, international security and national leadership objectives have been
defined and developed. Consequently, major increases to the current services funding level are proposed for many programs within
this component of the non-DOD budget.
The increases for atomic energy defense (Department of Energy)
are largely driven by the strategic weapons modernization program
and the need to upgrade weapons research, production and testing
facilities. Likewise, the emergency preparedness increases are integrally related to the administration's overall national security objectives.
In the international security assistance and economic aid area,
substantial increases for military assistance, foreign military sales
financing and the Central American initiative are partially offset
by savings in the refugee, international development bank and
international organizations categories.
3-50
THE BUDGET FOR FISCAL YEAR 1985
After declining throughout the late 1970's, the space program
has now been stabilized and will rise substantially above current
services levels in the out-years, as the manned space station development activities gain momentum.
Overall, the President's 1985 budget calls for a $4.4 billion increase over current services for national interest programs in 1985,
with a $40 billion or 27% increase projected for 1985-89. It should
be noted, however, that over 40% of this 5-year increase is the
result of the proposed conversion of the large military sales lending
program (now financed off-budget at Treasury loan rates) to a
direct grant and concessional loan program funded out of the regular foreign military sales (FMS) and military assistance accounts in
the budget. Over the near term this conversion will approximately
double the grant value (i.e. subsidy) of military sales credits to
recipient nations without increasing overall Treasury borrowing.
Over the longer run, however, reduced receipts from loan interest
and repayments will cause the true budget cost to rise appreciably.
NATIONAL INTEREST PROGRAMS: SUMMARY
(Dollars in billions)
1985
1986
1987
1988
1989
Total
Totals
Current services
Proposed increases
Percent change
Major Programs
Atomic energy defense (DOE):
Current services
28.7
29.2
29.4
29.8
30.2
147.2
+4.4
+ 15%
+ 6.8
+ 23%
+8.9
+30%
+ 10.0
+33%
+ 10.4
+34%
+40.4
+ 27%
6.5
6.8
6.6
6.5
6.6
33.0
Proposed increases
Emergency preparedness (FEMA):
Current services
+0.7
+ 1.4
+ 2.2
+ 2.6
+ 2.8
+9.7
0.3
0.3
0.3
0.3
0.3
1.5
Proposed increases
Multilateral development banks:
Current services
+0.1
+0.1
+0.2
+0.2
+0.3
+0.8
1.6
1.4
1.6
1.8
1.4
7.8
Proposed savings
Bilateral development aid (AID):
Current services
-0.1
-0.1
-0.1
-0.2
-0.2
-0.8
1.9
2.0
2.1
2.2
+0.1
+ 0.1
Proposed changes
International organization contributions/assessments and refugee aid:
Current services
+*
+*
2.3
*
10.6
+0.1
1.3
1.3
1.4
1.4
1.5
6.8
Proposed savings
Public Law 480:
Current services
-0.1
-0.2
-0.2
-0.2
-0.3
-0.9
1.3
1.3
1.3
1.4
6.6
Proposed savings
Micronesia compact:
Current services
+*
+*
1.3
_*
-0.1
-0.1
-0.2
0.0
0.0
0.0
0.0
0.0
0.0
+0.3
+0.1
+0.1
+0.1
+0.1
+0.9
Proposed increases
3-51
BUDGET PROGRAM AND TRENDS
NATIONAL INTEREST PROGRAMS: SUMMARY—Continued
(Dollars in billions)
1985
State Department and related:
Current services
ProDosed increases
BIB/USIA and related:
Current services
1.4
+0.2
1986
1.5
+0.2
1987
1.6
+ 0.3
1988
1.7
+0.3
1989
1.8
+0.4
Total
7.9
+ 1.4
0.9
0.9
1.1
1.1
1.1
5.2
+*
+0.2
+0.2
+0.1
+0.1
+0.7
6.4
6.1
5.6
5.3
5.3
28.8
+0.3
+ 1.0
+ 1.9
+2.7
+3.1
+8.9
2.4
2.5
2.7
2.6
2.7
13.0
Proposed savings
Foreign military sales: 3
Current services
+*
-0.1
-0.2
-0.1
0.1
-0.5
1.3
1.5
1.6
1.7
1.8
7.9
Proposed increases
Economic support fund:
Current services
+ 1.9
+3.3
+3.6
+3.7
+3.6
+ 16.1
Proposed savings
Military grant assistance:
Current services
Proposed increases
Central American allowance (Kissinger Commission):
Current services
Proposed increases
Space program (NASA): 1
Current services
Proposed increases
Coast Guard: 2
Current services
Proposed increases
3.2
3.4
3.5
16.0
+0.1
3.0
*
-0.1
-0.2
-0.3
-0.5
0.6
0.7
0.7
0.7
0.7
3.4
+0.2
+ 0.2
+0.2
+0.2
+0.2
+ 1.0
0.0
0.0
0.0
0.0
0.0
0.0
+0.7
+0.8
+0.8
+3.7
3.0
+0.8
+0.8
* $50 million or less.
1
All of NASA except aeronautical R&D.
2
Excluding retired pay.
3
Includes FMS receipts and reserve guarantee fund outlays.
When viewed in historical perspective, it is clear that the rising
budget levels for national interest programs proposed in the 1985
budget are not unprecedented. As shown in the table below, constant dollar funding levels for this function recorded in the early
1960's exceed the levels proposed for 1985-1989. Moreover, the real
GNP forecasted for the late 1980's will be more than twice as large
as that which supported the higher 1960's level.
Indeed, the 1985 and out-year funding levels proposed for these
priority purposes appear to be high only relative to the severely
depressed levels that obtained during the mid-1970's. The latter is
attributable to a confluence of unsustainable factors including
large one-time sales from the defense stockpile, temporary, large
negative outalys for foreign military sales transactions and historically low levels of real funding for NASA, security assistance and
foreign economic aid. By 1981, however, constant dollar national
interest funding had already risen by 36% from the mid-1970's low,
3-52
THE BUDGET FOR FISCAL YEAR 1985
as these temporary factors reversed and additional requirements
for security assistance and foreign policy support emerged.
Since 1981, constant dollar funding for national interest programs has risen another 14% in response to a wide variety of new
requirements identified by the administration—including a substantial upgrade in USIA's capabilities and effectiveness, provision
of more adequate security assistance, and augmentation of the
defense preparedness program. While these requirements were not
fully anticipated in earlier administration budget plans, the enhanced 1985 request still represents only a partial restoration of
funding levels that have been traditionally required to maintain an
effective foreign policy, national leadership in space, and a variety
of defense-related programs.
NATIONAL INTEREST TRENDS
(1985 constant dollar amounts in billions)
Average
amount
1962-1966
1967-1971
1972-1976
1977-1981
1985-1989 proposed
36.3
29.3
20.1
22.0
34.4
Percent of
1962-66 level
81%
55
61
95
The 15% constant dollar increase from 1980 level reflected in the
enacted 1984 national interest budget, as well as the planned overall growth of more than 40% over the course of the decade, results
from a substantial realignment of priorities among programs
within the overall function. The largest real growth will occur in
atomic energy defense, foreign military sales, emergency preparedness, and military grant assistance. By 1989, these programs would
account for over 40% of total national interest outlays compared to
only 26% in 1980. By contrast, real funding levels for food-forpeace, multilateral development banks, international organizations,
and refugee assistance have either already declined substantially,
or, as in the case of multilateral development banks, will decline
after 1985 as inherited commitments are run out.
The 51% real increase projected over the decade for the Department of State and the international communications agencies provide yet another illustration of unanticipated budget requirements.
These activities are personnel and overhead intensive, yet it has
been discovered that significant loss of mission capability occurred
during the decade prior to 1980 and that substantial additions to
personnel, facilities, security and specialized functions will be
needed in order to support adequately U.S. foreign policy objectives.
3-53
BUDGET PROGRAM AND TRENDS
Overall, the funding levels proposed in the 1985 budget close
what had previously been a growing gap between stated policy
objectives and projected budget paths. While the upward adjustment provided in the 1985 budget intensifies the challenges of reestablishing fiscal equilibrium, the added burden is modest and the
national interests served are of paramount importance.
MAJOR NATIONAL INTEREST PROGRAMS
(1985 constant dollar amounts in billions)
Amount
Percent
change from
1980
Total:
1980
1984 enacted
1985 proposed
1989 proposed
Atomic energy defense:
1980
1984 enacted
1985 proposed
1989 proposed
Emergency preparedness (FEMA):
1980
1984 enacted
1985 proposed
1989 proposed
Multilateral development banks:
1980
1984 enacted
1985 proposed
1989 proposed
International organizations/refugees:
1980
1984 enacted
1985 proposed
1989 proposed
Public Law 480:
1980
1984 enacted
1985 proposed
1989 proposed
State Department and related:
1980
1984 enacted
1985 proposed
1989 proposed
USIA/BIB and related:
1980
1984 enacted
1985 proposed
1989 proposed
Space program:
1980
1984 enacted
1985 proposed
1989 proposed
24.4
28.2
33.1
34.5
+ 15%
+35
+41
3.9
6.2
7.1
8.1
+60
+85
+ 109
0.2
0.3
0.3
0.5
+ 62
+90
+ 192
1.1
1.6
1.5
1.0
+ 50
+38
1.6
1.3
1.2
1.0
-16
-24
-35
1.4
1.1
1.3
1.1
-23
-8
-26
1.2
1.5
1.6
1.8
+ 27
+36
+ 51
0.7
0.8
0.9
1.1
+ 13
+ 28
+52
5.8
6.7
6.7
7.2
+ 16
+ 15
+23
3-54
THE BUDGET FOR FISCAL YEAR 1985
MAJOR NATIONAL INTEREST PROGRAMS—Continued
(1985 constant dollar amounts in billions)
Amount
Coast Guard: 1
1980
1984 enacted
1985 proposed
1989 proposed
Foreign military sales:
1980
1984 enacted
1985 proposed
1989 proposed
Economic support fund:
1980
1984 enacted
1985 proposed
1989 proposed
Military assistance grants:
1980
1984 enacted
1985 proposed
1989 proposed
1
1.9
2.4
2.4
2.2
Percent
change from
1980
+ 25%
+ 29
+ 18
2.0
0.8
3.2
4.6
-58
+ 62
+ 131
2.5
3.0
3.0
2.7
+ 21
+ 21
+8
0.3
0.6
0.8
0.8
+89
+ 138
+ 147
Excluding retired pay.
Budget Totals and Savings Plan
The table summarizes changes to the current services baseline
for major components of the budget. Outlays would be reduced by
$19 billion in 1985—with savings rising to $46 billion by 1989.
Measures to strengthen the revenue base and adjust certain unwarranted or no longer justifiable features of the Internal Revenue
Code boost receipts by $8 billion in 1985 and $75 billion over the
period. Overall, the 1985 budget proposes specific steps to reduce
the deficit by $226 billion over 1985-1989.
Additional savings of even greater magnitude will be needed in
future years to ensure the continuation of economic recovery. But
the measures outlined in the 1985 budget offer the essential first
steps toward the restoration of budget balance over the longer-run.
3-55
BUDGET PROGRAM AND TRENDS
1985 BUDGET TOTALS AND SAVINGS
(Dollars in billions)
1985
Outlays:
Current services
Defense savings (DOD)
Non-DOD savings
Debt services savings
Subtotal, outlay savings....
1986
1987
1988
1989
Total
945
-13
-5
-2
1,019
-13
-10
-5
1,094
-6
-12
-7
1,163
-7
-16
-10
1,230
-14
20
-12
5,451
-53
-62
-36
-19
-27
-26
-33
-46
-151
Budget proposal
Receipts:
Current services
Receipt increases
Budget proposal
Budget .deficit ( - )
925
992
1,068
1,130
1,184
5,300
737
8
745
180
803
12
815
-177
874
14
888
-180
960
18
978
152
1,037
23
1,060
-123
4,411
75
4,487
-813
Percent of GNP:
Budget outlays
Budget receipts
23.8%
19.2
23.4%
19.3
23.3%
19.3
22.8%
19.7
Budget deficit ( - )
-4.6
-4.2
3.9
-3.1
22.1%
19.8
-2.3
23.1%
19.5
3.6
PART 4
BUDGET RECEIPTS
4-1
BUDGET RECEIPTS
Budget receipts are taxes and other collections from the public
that result from the exercise of the Government's sovereign or
governmental powers. These receipts are compared with budget
outlays to determine the budget surplus or deficit.
This section of the budget discusses budget receipts for 1983 to
1987 and the legislative proposals and administrative actions affecting them.1
SUMMARY
Total budget receipts in 1985 are estimated to be $745.1 billion,
an increase of $75.1 billion from the $670.1 billion estimated for
1984. Receipts in 1986 and 1987 are estimated to be $814.9 billion
and $887.8 billion, respectively. These estimates include the effects
of:
• the income tax reductions and other tax changes provided in
the Economic Recovery Tax Act of 1981;
• the tax revisions and improvements in compliance and collection provided in the Tax Equity and Fiscal Responsibility Act
of 1982;
• the 5 cents a gallon increase in the motor fuels tax and other
tax changes provided in the Highway Revenue Act of 1982;
• the changes in the financing of the social security and railroad retirement systems provided in the Social Security
Amendments of 1983 and the Railroad Retirement Revenue
Act of 1983, respectively; and
• the receipts proposals in this budget.
Composition of budget receipts.—The Federal tax system relies
predominantly on income and payroll taxes. In 1985:
• Income taxes paid by individuals and corporations are estimated at $328.4 billion and $76.5 billion, respectively. These
sources combined account for 54.3% of estimated budget receipts.
• Social insurance taxes and contributions—composed largely of
payroll taxes levied on wages and salaries, most of which are
1
Detailed estimates of budget receipts by source for 1983 to 1985 are shown in Tables 14 and 21 of Part 9. The
economic assumptions on which the receipts estimates are based are presented in Part 2, and estimates of
receipts for 1988-89 are presented in table 2 of Part 9. Part 6 contains an analysis of the difference between
actual receipts for 1983 and the budget estimates for 1983 transmitted to the Congress in February 1982. Part 7
explains the conceptual basis for classifying certain amounts collected by the Federal Government as budget
receipts and other amounts as offsetting collections.
4-2
4-3
BUDGET RECEIPTS
BUDGET RECEIPTS BY SOURCE
(In billions of dollars
1983 actual
Source
1985
estimate
1986
estimate
1987
estimate
Social insurance taxes and contributions.. .
Excise taxes
Estate and gift taxes
Customs duties
Miscellaneous receipts
288.9
37.0
209.0
35.3
6.1
8.7
15.6
293.3
66.6
239.5
38.2
5.9
9.1
17.5
328.4
76.5
270.7
38.4
5.6
9.4
16.0
364.1
87.9
297.8
34.1
5.1
9.6
16.3
401.6
97.9
324.1
33.4
4.6
9.9
16.3
600.6
Individual income taxes
Corporation income taxes
Total, budget receipts
1984
estimate
670.1
745.1
814.9
887.8
paid in equal amounts by employers and employees—will
yield an estimated $270.7 billion, 36.3% of the total
• Excise taxes imposed on selected products, services, and activities are expected to provide $38.4 billion, 5.2% of the total.
• Estate and gift taxes, customs duties, and miscellaneous receipts are estimated at $31.1 billion, the remaining 4.2% of
budget receipts.
Under the tax policy and economic assumptions presented in this
budget, the income tax share of total receipts is projected to rise to
56.3% by 1987, 2.0 percentage points more than for 1985. This rise
is the combined effect of a 1.2 percentage point rise in the individual income tax share and a 0.8 percentage point rise in the corporation income tax share to 11.0%. Social insurance taxes and contributions are projected to rise as a share of total receipts from 36.3%
in 1985 to 36.5% in 1987. The excise tax share is projected to
decline to 3.8% in 1987, 1.4 percentage points less than for 1985.
The projected share of all other receipts declines by 0.7 percentage
point between 1985 and 1987.
ENACTED LEGISLATION
Several major tax laws have been enacted since this administration took office in January 1981. The first, the Economic Recovery
Tax Act of 1981 (ERTA), provides incentives for work, saving, and
investment. The substantial reductions in income taxes and other
changes provided in the Act are estimated to reduce receipts by
$133.6 billion in 1984, $165.0 billion in 1985, $207.7 billion in 1986,
and $248.5 billion in 1987. The major provisions of the Act include
an across-the-board reduction in individual income tax rates and
other reductions in individual income taxes; the annual adjustment
of the zero bracket amount, the personal exemption, and individual
income tax brackets for inflation beginning in 1985; and the accelerated cost recovery of capital expenditures.
4-4
THE BUDGET FOR FISCAL YEAR 1985
The second major tax law, the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), improves the fairness of the tax system
while preserving the incentives for work, saving, and investment
enacted in 1981. This Act increases receipts primarily by eliminating unintended benefits and obsolete incentives, and providing
mechanisms to increase taxpayer compliance and improve collection techniques. The provisions of this Act are estimated to increase receipts by $35.4 billion in 1984, $39.7 billion in 1985, $49.3
billion in 1986, and $60.7 billion in 1987.
The Highway Revenue Act of 1982 is the third major tax law
enacted since January 1981. This Act increases the excise tax on
gasoline and diesel fuel by 5 cents a gallon and restructures other
highway related taxes to make the taxes paid by various highway
users correspond more equitably to the wear and tear that such
users cause to the highway system. The provisions of this Act are
estimated to increase receipts by $4.1 billion to $4.5 billion in each
year, 1984-1987.
Three laws affecting receipts were enacted during 1983: the
Social Security Amendments of 1983, the Interest and Dividends
Tax Compliance Act of 1983, and the Railroad Retirement Revenue
Act of 1983. The first, the Social Security Amendments of 1983,
assures the future solvency of the social security trust funds
through a combination of revenue increases and benefit reductions
that restore reserves to safer levels. The revenue provisions of this
Act are estimated to increase receipts by $6.2 billion in 1984, $8.8
billion in 1985, $9.3 billion in 1986, and $11.4 billion in 1987.
The Interest and Dividends Tax Compliance Act of 1983 repeals
the withholding of taxes on interest and dividend income provided
in TEFRA, permits the deductibility of expenses incurred in attending a business convention in a qualifying Caribbean Basin
country, and pays to the Treasuries of Puerto Rico and the U.S.
Virgin Islands all excise taxes collected on rum imported into the
United States. The provisions of this Act are estimated to reduce
receipts by $2.6 billion in 1984, $2.4 billion in 1985, $2.1 billion in
1986, and $1.7 billion in 1987.
The tax increases provided in the Railroad Retirement Revenue
Act of 1983, together with the benefit reductions provided in the
Railroad Retirement Solvency Act of 1983, are designed to place
the railroad retirement program on a sound financial basis. The
provisions of the Railroad Retirement Revenue Act are estimated
to increase receipts by $0.2 billion in 1984, rising annually to $1.1
billion by 1987.
Despite the increases provided in 1982 and 1983, taxes have been
reduced by $595.4 billion over the 1983-1987 period, relative to
what they would have been under pre-1981 tax law. As shown in
the following table, there is a net tax reduction every year during
4-5
BUDGET RECEIPTS
this period, rising from $73.0 billion in 1983 to $172.6 billion in
1987.
NET EFFECT ON RECEIPTS OF ENACTED LEGISLATION *
(In billions of dollars)
1983
Economic Recovery Tax Act of 1981
Tax Equity and Fiscal Responsibility Act of 1982
Highway Revenue Act of 1982
Social Security Amendments of 1983
Interest and Dividends Tax Compliance Act of 1983
Railroad Retirement Revenue Act of 1983
Net tax reduction.
1984
-91.1 -133.6
35.4
16.6
4.1
1.5
6.2
-2.6
-0.1
0.2
-73.0
1985
-165.0
39.7
4.2
8.8
-2.4
0.7
1986
1987
19831987
-207.7 -248.5 -845.9
60.7 201.8
49.3
4.4
4.5
18.7
11.4
9.3
35.8
-1.7
-2.1
-8.8
1.1
1.1
3.1
- 9 0 . 3 -113.8 -145.7 -172.6 -595.4
*$50 million or less.
1
These estimates are based on the direct effect only of legislative changes at a given level of economic activity. Induced effects are taken
into account for forecasting incomes, however, and in this way affect the receipts estimates by major source and in total.
The major provisions of the three laws enacted in 1983 are
described below.2
SOCIAL SECURITY AMENDMENTS OF 1983
Expansion of coverage.—Federal civilian employees and employees of State and local governments and non-profit organizations
were exempt from mandatory social security coverage under prior
law. This Act extends mandatory coverage to all new Federal civilian employees and to employees of non-profit organizations effective January 1, 1984. State and local governments participating in
the social security system are no longer allowed to withdraw.
Acceleration of scheduled increases in the Old-Age and Survivors
and Disability Insurance (OASDI) payroll tax rate.—Prior to enactment of the Social Security Amendments of 1983, the combined
OASDI employer-employee tax rate was scheduled to increase from
10.8% to 11.4% on January 1,1985, and to 12.4% on January 1,1990.
Under these amendments the rate increased to 11.4% on January
1, 1984, and is scheduled to increase to 12.12% on January 1, 1988,
and to 12.4% on January 1, 1990. For 1984, employees are provided
a tax credit against the OASDI payroll tax equal to 0.3% of taxable
wages, the rescheduled portion of the employee tax rate. These
changes also apply to contributions to social security equivalent
benefits provided under railroad retirement.
Comparability of self-employment Old-Age and Survivors and Disability and Hospital Insurance (OASDHI) payroll tax rate.—Selfemployed individuals previously paid 75% of the combined employer-employee OASDI tax rate and 50% of the combined HI tax rate.
2
For a more detailed discussion of the Economic Recovery Tax Act of 1981, see Part 4 of the 1983 Budget. A
more detailed discussion of the Tax Equity and Fiscal Responsibility Act of 1982 and the Highway Revenue Act
of 1982 is provided in Part 4 of the 1984 Budget.
4-6
THE BUDGET FOR FISCAL YEAR 1985
Under these amendments self-employed individuals are required to
pay the combined employer-employee OASDHI tax rate effective
January 1, 1984. To reduce the effect of this increase, self-employed
individuals are provided a tax credit against the payroll tax equal
to 2.7% of taxable wages in 1984, 2.3% of taxable wages in 1985,
and 2.0% of taxable wages in 1986 through 1989.
Taxation of social security (OASDI) benefits.—Social security
benefits were exempt from the Federal income tax under prior law.
Effective January 1, 1984, a portion of social security benefits and
social security equivalent benefits provided under railroad retirement are subject to the Federal income tax. The amount taxed is
the lesser of one-half the benefits received, or one-half the amount
by which the sum of adjusted gross income from non-social security
sources, income from tax-exempt bonds, and 50% of social security
benefits exceeds $25,000 for a single taxpayer and $32,000 for a
married couple filing a joint return.
INTEREST AND DIVIDENDS TAX COMPLIANCE ACT OF 1983
Repeal of withholding on interest and dividend income.—Under
the Tax Equity and Fiscal Responsibility Act of 1982, withholding
at the rate of 10% was required on all interest and dividend
payments made after June 30, 1983. This Act repeals that provision
effective July 1, 1983 and replaces it with an expanded system of
"backup withholding," which is intended primarily to improve the
accuracy of information reporting and increase taxpayer compliance. Effective January 1, 1984, payers of interest, dividends and
certain other payments, as well as brokers and barter exchanges,
are required to impose backup withholding at the rate of 20%, if
the recipient of a payment or a customer fails to furnish a correct
taxpayer identification number in the manner required, or, for
interest and dividends only, has been identified by the IRS as
having failed to report interest or dividend income.
Caribbean Basin Initiative (CBI).—Under prior law, expenses incurred in attending business conventions outside the North American area were deductible only if it was as reasonable to hold the
convention outside the North American area as within it. Effective
June 30, 1983, expenses incurred in attending a business convention in a qualifying Caribbean Basin country are deductible, provided they meet the standards for deductibility of North American
business expenses and an agreement to exchange tax information
is in effect with that country. The Act also provides that effective
June 30, 1983, all excise taxes collected on rum imported into the
United States, wherever produced, be paid into the Treasuries of
Puerto Rico and the U.S. Virgin Islands. Under prior law, only
taxes collected on rum produced in Puerto Rico or the U.S. Virgin
BUDGET RECEIPTS
4-7
Islands and transported to the United States were transferred to
Puerto Rico or the U.S. Virgin Islands.
RAILROAD RETIREMENT REVENUE ACT OF 1983
Increase in railroad retirement payroll taxes.—The railroad retirement system provides payments to former rail employees under
a two tier system that is equivalent to a combination of social
security and a multi-employer industry pension plan. About
350,000 former employees also receive windfall payments that are
fully subsidized by other taxpayers. Under prior law, rail employers contributed 11.75% of monthly taxable compensation ($2,975 in
1983) to finance rail industry pension payments; the employee contribution was 2%. This Act increases the employer contribution to
12.75% on January 1, 1984, to 13.75% on January 1, 1985, and to
14.75% on January 1, 1986. The employee contribution increases to
2.75% on January 1, 1984, to 3.5% on January 1, 1985, and to
4.25% on January 1, 1986.3
Increase in railroad unemployment insurance taxes.—Effective
January 1, 1984, rail employers are subject to an unemployment
insurance tax of 8% on the first $600 of monthly wages per employee. This tax had been limited to the first $400 of monthly
wages under prior law.
Enactment of temporary Federal unemployment insurance repayment tax.— Effective July 1, 1986, a temporary Federal unemployment insurance repayment tax is levied on rail employers. The tax is
initially 2% of the first $7,000 in annual wages per employee and
increases annually thereafter by 0.3 percentage point each January
1. This tax will be used to repay loans made by the railroad
retirement trust fund to the railroad unemployment insurance fund.
Taxation of benefits.—All payments received under the rail industry pension plan after December 31, 1983, will be subject to the
Federal income tax to the extent that they exceed previously taxed
contributions. These benefits were exempt from tax under prior
law.4 Windfall payments will be taxed under similar rules.
3
Contributions to social security equivalent benefits provided under railroad retirement are at the same rate
as the social security (OASDHI) payroll tax and increase when social security taxes rise.
4
The Social Security Amendments of 1983 provide for the taxation of a portion of social security equivalent
benefits provided under railroad retirement, effective January 1, 1984.
4 2 0 - 0 0 0 O - 84 -
8 : QL 3
4-8
THE BUDGET FOR FISCAL YEAR 1985
EFFECT OF ENACTED LEGISLATION ON RECEIPTS 1
(In billions of dollars)
1983
1984
1985
1986
1987
Economic Recovery Tax Act of 1981
Individual income tax provisions
-64.0
-96.0 -113.6 -138.1 -166.4
Capital cost recovery provisions:
Individual income taxes
Corporation income taxes
-2.9
-14.9
-4.3
-21.8
-5.7
-29.4
-7.6
-41.1
-9.2
-49.6
-17.8
-26.1
-35.1
-48.7
-58.8
Saving incentive provisions
-7.0
-8.6
-10.8
-14.1
-15.2
Estate and gift tax provisions
-2.4
3.7
-4.9
-6.5
-8.1
0.1
*
0.5
-0.2
0.1
0.4
0.5
_*
-0.1
-0.5
0.5
-0.4
0.3
-0.7
0.6
-0.5
-0.1
-0.2
0.6
-0.4
0.1
0.8
-0.4
-0.3
*
Subtotal, capital cost recovery provisions
Other:
Individual income taxes
Corporation income taxes
Social insurance taxes and contributions
Excise taxes
;
Subtotal, other
Total, Economic Recovery Tax Act of 1981
- 9 1 . 1 -133.6 -165.0 -207.7 -248.5
Tax Equity and Fiscal Responsibility Act of 1982
Compliance and collection-.
Individual income taxes
Corporation income taxes
Employment taxes and contributions
30
6.1
72
7.4
7.9
1.6
0.1
5.7
0.2
1.9
0.3
2.0
0.4
1.5
0.4
Subtotal, compliance and collection
4.7
12.0
9.4
9.9
9.9
Unintended benefits and obsolete incentives-.
Individual income taxes
Corporation income taxes
Estate and gift taxes
0.3
4.2
3.3
3.8
5.4
7.1
8.0
0.2
13.0
0.2
22.8
0.2
32.5
0.2
4.6
11.6
17.1
28.5
39.8
Excise tax provisions
3.4
4.9
5.7
2.2
1.6
Employment tax provisions:
Individual income taxes
Social insurance taxes and contributions
0.6
2.1
0.7
3.1
0.6
3.2
0.5
2.9
0.5
2.6
2.7
3.8
3.7
3.4
3.1
-0.5
1.8
-0.4
3.5
-0.4
4.2
0.5
4.9
0.9
5.4
Subtotal, unintended benefits and obsolete incentives
Subtotal, employment tax provisions
Other:
Individual income taxes
Corporation income taxes
Subtotal, other
Total, Tax Equity and Fiscal Responsibility Act of 1982..
1.3
3.1
3.8
5.4
6.3
16.6
35.4
39.7
49.3
60.7
-0.4
*
1.9
-1.1
-0.1
5.2
-1.2
-0.2
5.7
-1.2
-0.2
5.9
-1.3
-0.2
6.0
1.5
4.1
4.2
4.4
4.5
Highway Revenue Act of 1982
Individual income taxes
Corporation income taxes
Excise taxes
Total, Highway Revenue Act of 1982
4-9
BUDGET RECEIPTS
EFFECT OF ENACTED LEGISLATION ON RECEIPTS ' —Continued
(In billions of dollars)
1984
1985
1986
-2.3
8.5
-0.6
9.4
-0.6
9.9
0.7
12.1
6.2
8.8
9.3
11.4
-0.1
_*
-2.6
*
-2.4
*
-2.1
_*
-1.7
*
-0.1
-2.6
-2.4
-2.1
-1.7
*
*
0.1
0.1
0.3
0.4
0.3
0.8
0.3
0.8
*
0.2
0.7
1.1
1.1
1983
1987
Social Security Amendments of 1983
Individual income taxes
Social insurance taxes and contributions
Total, Social Security Amendments of 1983
Interest and Dividends Tax Compliance Act of 1983
Individual income taxes
Corporation income taxes
Total, Interest and Dividends Tax Compliance Act of
1983
Railroad Retirement Revenue Act of 1983
Individual income taxes
Social insurance taxes and contributions
Total, Railroad Retirement Revenue Act of 1983
ADDENDUM
Effect on receipts by source.Individual income taxes
Corporation income taxes
Social insurance taxes and contributions
Excise taxes
Estate and gift taxes
Total
-71.0 -104.5 -121.4 -147.2 -175.5
-7.3
- 4 . 9 -12.6 -14.4 -13.0
16.6
27
12.5
13.9
14.5
7.2
101
7.6
51
11.0
-7.9
-4.7
-2.4
-6.3
-3.5
-73.0
-90.3 -113.8 -145.7 -172.6
* $50 million or less.
1
These estimates are based on the direct effect only of legislative changes at a given level of economic activity. Induced effects are taken into
account for forecasting incomes, however, and in this way affect the receipts estimates by major source and in total.
RECEIPTS PROPOSALS
Women's initiative.—The administration supports several tax
changes that primarily improve the structure of the tax system
and its impact upon women. These changes are estimated to reduce
receipts by $0.3 billion in 1985, $0.9 billion in 1986, and $0.9 billion in
1987:
• Expansion of individual retirement accounts (IRAs).—Under
current law, an individual generally is permitted to deduct
annual contributions to an IRA up to a maximum of $2,000 or
100 percent of compensation, whichever is less. If deductible
contributions are made to an IRA established by a working
individual for the individual and a spouse who does not receive compensation, the maximum annual contribution is increased to $2,250. The administration proposes to increase the
$2,250 annual spousal IRA limit to $4,000. In addition, the
administration proposes to permit divorced individuals to
treat taxable alimony as compensation in determining the
IRA deduction limit.
4-10
THE BUDGET FOR FISCAL YEAR 1985
• Reclassification of certain day care organizations.—The administration proposes to classify all qualified, nonprofit dependent care facilities as tax-exempt organizations.
• Restructuring of the dependent care tax credit.—The administration proposes to increase the dependent care tax credit to
40 percent of qualifying dependent care expenses for individuals with an annual income of $10,000 or less. The credit will
be reduced as the individual's income increases above $10,000,
and will phase out completely when income reaches $60,000.
Structural reform. —The administration proposes the following
structural reforms, which are estimated to increase receipts by $0.8
billion in 1984, $1.1 billion in 1985, $2.2 billion in 1986, and $3.7
billion in 1987:
• Restrictions on tax-exempt leasing.—Restrictions will be imposed on the use of the accelerated cost recovery system
(ACRS) and investment tax credits for properties that are the
subject of sale-leaseback and similar transactions with Federal, State, and local governments, or with other organizations
not subject to U.S. taxation.
• Taxation of life insurance companies.—Broad-based improvement in the system of taxing life insurance companies is
proposed. The multi-phase system adopted in 1959 will be
replaced with a more rational single-phase system, and the
definition of "life insurance" will be clarified.
• Restrictions on industrial development bonds.—A number of
proposals will limit the alarming growth in private purpose
tax-exempt bonds, including industrial development bonds.
Key features of the proposals would impose State-by-State
volume limits on certain private purpose bonds; limit the
volume of obligations that could benefit any one user;
strengthen the arbitrage bond limitations; limit the tax exemption for federally guaranteed obligations; and apply all
statutory limitations, including the arbitrage bond limitations
currently applicable to State and local governments, to obligations issued by Puerto Rico and other U.S. possessions.
Curtailment of tax shelter, accounting, and corporate tax abuse.—
Transactions have been identified that abuse existing partnership,
accounting, and corporate tax provisions. The administration proposes a number of changes that will curtail transactions that generate unintended tax benefits or form the basis for tax shelter
schemes. These changes are estimated to increase receipts by $0.8
billion in 1984, $3.2 billion in 1985, $4.3 billion in 1986, and $4.7
billion in 1987.
BUDGET RECEIPTS
4-11
Tax incentives for higher education.—The administration proposes to exclude from taxation earnings on savings deposited in
special accounts that will be used to pay future higher education
expenses of dependent children. The maximum annual contribution
to these accounts will be $1,000 per child. However, this maximum
will be reduced 5 cents for each dollar that the taxpayer's adjusted
gross income exceeds $40,000, so that any taxpayer with adjusted
gross income in excess of $60,000 will be ineligible.
Eligible expenses generally are tuition and room and board incurred by a full-time student enrolled in a postsecondary education
program leading to a degree or certification (including graduate
school). In the case of part-time students in such a program, only
tuition qualifies. Special savings accounts will qualify only if the
dependent children on whose behalf the savings are made are
under age 18. In no case may an account be kept open for a child
over the age of 25. Eligible expenses will not include amounts paid
to schools that follow a racially discriminatory policy. This proposal will be effective January 1, 1985, and is estimated to reduce
receipts by a negligible amount in 1985, $0.1 billion in 1986, and
$0.3 billion in 1987.
Tuition tax credit—The administration proposes to provide taxpayers a nonrefundable credit for 50 percent of tuition expenses
paid to private elementary and secondary schools for certain qualified dependents. The maximum credit allowable for each dependent
is $100 in 1984, $200 in 1985, and $300 thereafter, with the maximum amount in each year phased out for taxpayers with adjusted
gross incomes between $40,000 and $60,000. Credits will not be
allowed for expenses paid to private schools that follow a racially
discriminatory policy. This proposal, which will be effective for
expenses incurred after July 31, 1984, is estimated to reduce receipts by $0.3 billion in 1985, $0.6 billion in 1986, and $0.9 billion in
1987.
Enterprise zone tax incentives.—Under current law, the only tax
incentive for the redevelopment of economically distressed areas is
a relaxation of limitations on tax-exempt financing for facilities
receiving assistance under the Urban Development Action Grant
program. The administration proposes that up to 25 small areas
per year (not to exceed 75 in total) be designated "enterprise
zones/' Effective January 1, 1985, the following tax incentives will
be available for economic redevelopment in the zones: an exemption from capital gains tax on certain qualified property; a tax
credit for employees equal to 5 percent of the first $10,500 of wages
earned; a tax credit for employers equal to 10 percent of any
qualified increases in their payrolls; a separate tax credit for employers of certain disadvantaged individuals equal to 50 percent of
4-12
THE BUDGET FOR FISCAL YEAR 1985
the wages of such persons for the first three years of employment
(the percentage declines by 10 points in the fourth year and each
year thereafter); an increase of 50 percent in the regular investment tax credit for investment in equipment; a 10 percent investment tax credit for new construction and reconstruction of buildings; and continued availability of tax-exempt bond financing
beyond the 1986 sunset date for small issue bonds. These incentives, which generally will remain fully in effect for 20 years and
be phased out over the succeeding four years, are estimated to
reduce receipts by $0.1 billion in 1985, $0.4 billion in 1986, and $0.8
billion in 1987.
Tax treatment of health insurance premiums.—Under current
law, compensation paid in cash is fully taxable for both social
security and income tax purposes, while compensation in the form of
employer-paid health insurance premiums is nontaxable. The administration proposes that effective January 1, 1985, employees be
required to pay social security and income taxes on employer-paid
health insurance premiums in excess of $175 per month or $2,100 per
year for a family plan, and $70 per month or $840 per year for a
single plan. Employer-paid health insurance premiums below these
amounts still will be excluded from taxation. The $175 and $70
amounts will be indexed to rise with inflation. This proposal is
estimated to increase receipts by $3.9 billion in 1985, $6.5 billion in
1986, and $8.0 billion in 1987.
Changes in contributions to civil service retirement (CSR).—Currently, employees contribute 7% of wages and salaries to CSR,
employing agencies contribute 7%, and the general fund of the
Federal Government contributes 50% of the remaining cost. The
administration is proposing several reforms that would reduce the
cost of CSR, and increase contributions to the fund. These changes,
which are estimated to increase governmental receipts by $0.7
billion in 1985, $1.4 billion in 1986, and $1.5 billion in 1987, include
the following:
• Increase employee contributions.—The administration's proposal increases employee contributions (including District of Columbia employees who are under CSR) from 7% of wages and
salaries to 8% effective October 1984, and to 9% effective
October 1985.
• Increase the District of Columbia (D.C) employer contribution.—Matching the proposed contribution by D.C. employees,
the administration's proposal increases the D.C. Government
contribution from the current 7% to 8% effective October
1984, and to 9% effective October 1985. A corresponding increase in the contribution of Federal employing agencies is
proposed; however, these employer contributions are shown
BUDGET RECEIPTS
4-13
on the outlay side of the budget and do not affect budget
receipts.5
Extension of Federal/State unemployment insurance coverage to
railroad employment—Railroad employment is the only sector not
covered by the regular Federal/State unemployment insurance
system. The separate Railroad Sickness and Unemployment Insurance Fund (RSUI), which is financed by payroll taxes paid by rail
employers, has been insolvent for a number of years.
In the past, when contributions have been insufficient to pay
benefits, RSUI has borrowed from the rail pension fund. Even
though RSUI will not be permitted to borrow from the pension
fund after 1985, and the Railroad Retirement Revenue Act of 1983
increased RSUI contributions and established a separate debt repayment tax, it is estimated that the RSUI debt to the rail pension
fund will grow to nearly $1 billion by the end of 1985.
The administration proposes to extend regular Federal/State unemployment insurance coverage to railroad employment. Under
this proposal rail employment will be covered under Federal and
State unemployment insurance tax laws effective January 1, 1985.
Existing RSUI contributions and the special debt repayment tax
will remain in place to finance sickness payments and to ensure
that all debt to the rail pension fund is repaid. This proposal is
estimated to increase receipts by $0.1 billion in each year, 19851987.
Taxation of Foreign Sales Corporation.—Under present law,
taxes on a portion of a company's income from U.S. exports sold
through a Domestic International Sales Corporation (DISC) can be
deferred. The administration proposes to replace the current DISC
provisions with a new system of taxing export sales income that is
intended to preserve the competitiveness of U.S. exports while
addressing concerns expressed by other General Agreement on
Tariff and Trade (GATT) members. This provision is estimated to
reduce receipts by a negligible amount in 1985 and 1986, and to
increase receipts by $0.1 billion in 1987.
Withholding on U.S. real estate gains of foreign individuals.—The
administration proposes to withhold taxes on gains realized by
foreign individuals on the sale of U.S. real property. It is estimated
that this proposal will increase receipts by $0.1 billion in 1985 and
negligible amounts in subsequent years.
Change in the taxation of Trusts for Investment in Mortgages
(TIMs).—Changes in the tax laws necessary to permit the develop5
The administration proposes to increase the contributions of the Postal Service by the same amount.
Contributions of the Postal Service to CSR are shown on the outlay side of the budget and do not affect budget
receipts.
4-14
THE BUDGET FOR FISCAL YEAR 1985
ment of TIMs are being proposed. These changes will remove regulatory and tax constraints, thereby facilitating trading and expansion of the private secondary mortgage market, as well as reducing
the dependence of the mortgage market upon Government-sponsored enterprises.
Tax exemption for deceased military personnel—The administration proposes to exempt from tax the income of certain military
personnel killed in action overseas. This proposal is estimated to
have a negligible effect on receipts.
Extension of expiring provisions.—The following provisions,
which are scheduled to expire under present law, are proposed to
be extended: the credit for research and experimental expenditures, which is scheduled to expire December 31, 1985; the present
moratorium on the application of existing research and experimentation allocation regulations, which ensure that all research and
experimentation deductions can be used to offset U.S. source
income; the targeted jobs tax credit, which is scheduled to expire
December 31, 1984; and, to a limited extent, the payment-in-kind
(PIK) program. Extension of these provisions is estimated to reduce
receipts by $0.1 billion in 1984, $0.3 billion in 1985, $0.8 billion in
1986, and $1.1 billion in 1987.
Petroleum overcharge restitution fund.—The administration proposes legislation to establish a special fund in the Department of
Health and Human Services (HHS) to hold monies recovered by the
Federal Government from petroleum pricing and allocation violations under the Emergency Petroleum Allocation Act of 1973, in
instances where the overcharged customers cannot be identified
and repaid. Oil overcharge money deposited into this fund will be
used to finance the HHS Low-Income Home Energy Assistance
Program, the Department of Energy (DOE) Low-Income Weatherization Program, and DOE energy conservation grants to schools
and hospitals. It is estimated that $2.0 billion will be collected in
1984.
4-15
BUDGET RECEIPTS
EFFECT OF PROPOSED LEGISLATION AND ADMINISTRATIVE ACTION ON RECEIPTS1
(In billions of dollars)
1984
1987
1986
1985
Total
0.1
-0.3
3.9
0.7
0.1
-0.3
-0.9
2.2
4.3
-0.1
0.4
-0.6
6.5
1.4
0.1
-0.8
-0.9
3.7
4.7
-0.3
-0.8
-0.9
8.0
1.5
0.1
-1.1
*
_*
0.1
3.5
Women's initiative
Structural reform
Curtailment of tax abuse
Higher education tax incentive
Enterprise zone tax incentives . . .
Tuition tax credit
Taxation of health insurance premiums
Contributions to civil service retirement
Railroad unemployment insurance coverage
Extension of expiring provisions
Petroleum overcharge restitution fund
Other
7.9
11.6
14.2
0.8
0.7
2.0
5.0
1.1
1.8
*
6.4
1.9
3.3
*
7.2
3.1
3.9
*
3.5
7.9
11.6
14.2
0.8
0.8
. . .
-0.1
2.0
*
-0.3
1.1
3.2
*
ADDENDUM
Effect of proposals on receipts by source:
Individual income taxes
Corporation income taxes
Social insurance taxes and contributions
Other
Total
*1$ 5 0 million or less.
These estimates are based on the direct effect only of legislative changes at a given level of economic activity. Induced effects are taken into
account for forecasting incomes, however, and in this way affect the receipts estimates by major source and in total.
EFFECT OF ENACTED AND PROPOSED CHANGES ON
RECEIPTS
The actual change in receipts that will result from an enacted or
proposed tax revision will depend on both the direct effect of the
tax change and the indirect or ' "feedback" effect. The direct effect
is the increase or decrease in receipts due only to the tax change at
given levels of income. The indirect or feedback effect is the increase or decrease in receipts due to the effect of the tax change on
income levels.
The estimates of the effect of enacted and proposed tax changes
shown in this budget represent the direct effect of these changes on
receipts, based on levels of corporate and individual income that
reflect enactment of the tax change. The estimated indirect or
feedback effect on receipts due to the tax-induced change in incomes is not included in these estimates because it is already
included in gross receipts.
For example, the estimates of the effect of the Economic Recovery Tax Act of 1981 shown in this budget represent only the direct
effect of the changes provided in the Act. The increased receipts
resulting from the tax-induced increase in incomes are included in
gross receipts. The estimates of the direct effect of the Economic
4-16
THE BUDGET FOR FISCAL YEAR 1985
Recovery Tax Act of 1981 on receipts therefore overstate the net
loss to the Treasury of the income tax reductions and other tax
changes provided in the Act.
The estimates in this budget of the effect of the administration's
proposals on receipts also represent only the direct effect of these
changes. The indirect effect of these proposals is included in gross
receipts.
CHANGES IN BUDGET RECEIPTS
Budget receipts are estimated to increase by $69.5 billion in 1984,
$75.1 billion in 1985, $69.8 billion in 1986 and $72.9 billion in 1987.
The year-to-year changes can be divided between changes due to
growth in the tax base and changes due to revisions in the tax
structure. Under the tax rates and structure in effect on January
1, 1981, receipts would have risen by $79.8 billion in 1984, $81.9
billion in 1985, $87.4 billion in 1986, and $89.2 billion in 1987. Thus,
the combined effect of administrative action and enacted and proposed tax law changes, which is shown in the accompanying table,
reduces the growth in receipts by $10.3 billion in 1984, $6.8 billion
in 1985, $17.6 billion in 1986, and $16.3 billion in 1987.
1984
Growth in receipts (in billions of dollars):
Under existing law and administrative action and proposed
legislation ....
Under tax rates and structure in effect Jan. 1, 1981
Difference
69.5
79.8
-10.3
1986
1985
75.1
81.9
V
6.8
1987
69.8
87.4
72.9
89.2
-17.6
-16.3
4-17
BUDGET RECEIPTS
CHANGES IN BUDGET RECEIPTS
(In billions of dollars)
1983
Receipts under tax rates and structure in
effect January 1, 1 9 8 1 l
Administrative action
Enacted legislative changes:
Economic Recovery Tax Act of 1981
Tax Equity and Fiscal Responsibility Act of 1982..
Highway Revenue Act of 1982
Social Security Amendments of 1983 2
Interest and Dividends Tax Compliance Act of
1983
Railroad Retirement Revenue Act of 1983
Social security taxable earnings base increases: 5
$29,700 to $32,400 effective Jan. 1,1982
$32,400 to $35,700 effective Jan. 1,1983
$35,700 to $37,800 effective Jan 1,1984.. .
$37,800 to $39,300 effective Jan. 1,1985
$39,300 to $41,400 effective Jan 1 1986
$41,400 to $43,800 effective Jan 1 1987
Social security (OASDHI) tax rate increases-. 3 5
13.3% to 13.4% effective Jan. 1,1982
13.4% to 14.0% effective Jan. 1,1984
14.0% to 14.1% effective Jan. 1,1985
14.1% to 14.3% effective Jan 1 1986
Other
Total, receipts under existing legislation
1984
1985
667.6
0.2
747.4
*
829.3
0.2
916.7
0.2
1,005.9
0.2
-91.1
16.6
1.5
-133.6
35.4
4.1
2.4
-165.0
39.7
4.2
5.8
-207.7
49.3
4.4
7.3
-248.5
60.7
4.5
9.0
-0.1
*
-2.6
0.2
-2.4
0.7
-2.1
1.1
-1.7
1.1
3.2
1.2
3.7
3.6
0.7
4.3
4.2
2.2
0.6
5.1
5.0
2.6
1.7
0.8
6.0
5.9
3.1
2.1
2.6
1.0
1.4
1.5
3.8
1.6
10.2
1.7
12.6
1.9
13.9
1.2
1.8
2.0
4.0
*
*
*
0.1
2.7
*
600.6
666.6
737.2
803.3
873.7
0.3
1.1
3.2
3.9
0.7
*
-0.1
-0.3
0.1
-0.3
-0.9
2.2
4.3
6.5
1.4
0.1
-0.4
-0.6
0.1
-0.8
-0.9
3.7
4.7
8.0
1.5
-0.3
0.8
-0.9
0.1
1.1
*
*
0.1
745.1
814.9
887.8
Proposed legislation and administrative action:
Women's initiative
Structural reform...
0.8
0.8
Curtailment of tax abuseTaxation of health insurance premiums
Contributions to civil service retirement
Higher education tax incentive
Enterprise zone tax incentives
Tuition tax credit
Railroad unemployment insurance coverage
Extension of expiring provisions .
Petroleum overcharge restitution fund
Other
Total, receipts under existing and proposed legislation and administrative
action 4
1987
1986
-0.1
2.0
*
600.6
670.1
*$50 million or less.
1
These figures assume a social security taxable earnings base of $29,700.
2
Excludes the effect of increases in the OASOHI tax rate that are shown below.
3
The combined employer-employee old age and survivors, disability, and hospital insurance (OASDHI) tax rate.
4
These estimates include both the direct and indirect effects of administrative action and legislative changes.
5
Technical note: When the tax rate and the taxable earnings base increase at the same time, dividing up the total effect on receipts is
arbitrary to some small extent because of an interaction effect. The increase in receipts due to this interaction effect is attributed to the rate and
base changes in proportion to the increases in receipts that would occur if the rate and base were each changed separately.
4-18
THE BUDGET FOR FISCAL YEAR 1985
RECEIPTS BY SOURCE
Individual income taxes.—Individual income tax receipts are estimated at $293.3 billion in 1984 and $328.4 billion in 1985. These
estimates reflect the individual income tax reductions provided in
the Economic Recovery Tax Act of 1981, which reduce individual
income tax receipts in 1984 and 1985 by $108.3 billion and $128.6
billion, respectively. These reductions are partially offset by the tax
revisions and improvements in compliance and collection provided
in the Tax Equity and Fiscal Responsibility Act of 1982, which
increase individual income taxes by an estimated $9.7 billion in
1984 and $11.2 billion in 1985. The proposed changes in this budget
are estimated to increase individual income taxes by $0.8 billion in
1984 and $5.0 billion in 1985.
Individual income taxes in 1986 and 1987 are projected at $364.1
billion and $401.6 billion, respectively. The changes in individual
income taxes provided in ERTA and TEFRA result in a net reduction in individual income tax receipts of $143.5 billion in 1986 and
$172.1 billion in 1987. The administration's proposals are estimated
to increase individual income taxes by $6.4 billion in 1986 and $7.2
billion in 1987.
Corporation income taxes.—Corporation income tax receipts are
estimated at $66.6 billion in 1984 and $76.5 billion in 1985. These
estimates reflect the Accelerated Cost Recovery System and other
provisions of ERTA, which are estimated to reduce corporation
income tax receipts in 1984 and 1985 by $22.1 billion and $31.6
billion, respectively. The tax revisions and improvements in tax
collection and enforcement provided in TEFRA add $17.2 billion to
corporation income tax receipts in 1984 and $19.1 billion in 1985.
Corporation income tax receipts in 1986 and 1987 are estimated
at $87.9 billion and $97.9 billion, respectively. These estimates reflect net reductions of $14.2 billion in 1986 and $12.8 billion in 1987
due to enactment of ERTA and TEFRA. The administration's proposals are expected to increase corporation income taxes in 1986
and 1987 by $1.9 billion and $3.1 billion, respectively.
Social insurance taxes and contributions.—This category includes
social security and railroad retirement taxes, unemployment insurance taxes and deposits, and other retirement contributions.
Receipts from this source are expected to be $239.5 billion in
1984 and $270.7 billion in 1985. These estimates reflect the increases in social security coverage and tax rates, and other changes
provided in the Social Security Amendments of 1983. These
Amendments are estimated to increase social insurance taxes and
contributions by $8.5 billion in 1984 and $9.4 billion in 1985. The
changes provided in ERTA, TEFRA, and the Railroad Retirement
BUDGET RECEIPTS
4-19
Revenue Act of 1983 are estimated to increase social insurance
taxes and contributions by an additional $4.0 billion in 1984 and
$4.5 billion in 1985. Scheduled increases in the social security taxable earnings base from $35,700 in 1983 to $37,800 in 1984 and to
$39,300 in 1985 also are reflected in these estimates.
The estimates for 1986 and 1987 are $297.8 billion and $324.1
billion, respectively. These estimates reflect the legislated increases
in the combined employer-employee social security tax rate provided in the Social Security Amendments of 1983 and annual increases in the taxable earnings base to $43,800 in 1987. The increases in social insurance taxes and contributions provided in
ERTA, TEFRA, and the Railroad Retirement Revenue Act add $4.7
billion to receipts in 1986 and $4.5 billion in 1987.
Excise taxes.—Excise taxes are levied on a variety of products,
services, and activities. Receipts from these taxes are estimated at
$38.2 billion in 1984 and $38.4 billion in 1985. These estimates
include the windfall profit tax, which is estimated at $9.5 billion in
1984 and $8.2 billion in 1985. The estimates also reflect enactment
of ERTA, which reduces excise taxes by $0.4 billion in 1985.
TEFRA, which increased excise taxes on airport and airway users,
cigarettes, and telephone service, increases excise taxes in 1984 and
1985 by an estimated $4.9 billion and $5.7 billion, respectively. The
5 cent per gallon increase in the excise tax on gasoline and diesel
fuel, and other provisions of the Highway Revenue Act of 1982, add
an additional $5.2 billion to excise taxes in 1984 and $5.7 billion in
1985.
The estimates for 1986 and 1987 are $34.1 billion and $33.4
billion, respectively. These estimates include $6.8 billion from the
windfall profit tax in 1986 and $6.1 billion in 1987. They also
reflect a net increase of $7.6 billion in 1986 and $7.2 billion in 1987
due to the provisions of ERTA, TEFRA, and the Highway Revenue
Act.
Estate and gift taxes.—Estate and gift taxes are estimated at $5.9
billion in 1984, $5.6 billion in 1985, $5.1 billion in 1986, and $4.6
billion in 1987. These estimates reflect reductions due to enactment
of ERTA and partially offsetting increases due to enactment of
TEFRA.
Other receipts.—Customs duties and miscellaneous receipts
(almost all of which are deposits of earnings by the Federal Reserve System) are estimated to total $26.6 billion in 1984, $25.4
billion in 1985, $25.9 billion in 1986, and $26.1 billion in 1987.
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 and takes
4-20
THE BUDGET FOR FISCAL YEAR 1985
the form of interest, rents, royalties, and the sale of Government
property, products, and services. Because this income arises from
business-type transactions rather than from taxation, it is treated
as an offset to related outlays and budget authority rather than as
budget receipts. Proprietary receipts from the public are explained
further in Part 7 and are shown in Table 15 of Part 9.
[Insert chart: BUDGET RECEIPTS, 1975-1987]
Excise Taxes and
Other Receipts
Social Insurance Taxes
and Contributions iiiiiiO
Corporation Income Taxes
Individual Income Taxes
PART 5
MEETING NATIONAL NEEDS:
THE FEDERAL
PROGRAM BY FUNCTION
5-1
5-2
THE BUDGET FOR FISCAL YEAR 1985
INTRODUCTION
The discussion in this introduction serves two purposes: (1) for
the convenience of new readers, it describes the structure of the
Part 5 presentation; and (2) for those familiar with Part 5 from
previous budgets, it describes major changes in structure or usage
from that in previous versions of the budget.
Part 5 is structured to focus on national needs and the functional
classification. It discusses budget authority, outlays, and related
measures of Federal spending, focusing on the end purposes that
the spending serves. The presentation is organized in terms of
national needs as defined by the functional structure.1
The functional structure is divided into 18 broad areas (functions) that provide a coherent and comprehensive basis for analyzing the budget. Each function, in turn, is divided into basic groupings of programs entitled subfunctions. It has two additional categories—allowances and undistributed offsetting receipts—that are
not functions but are required in order to cover the entire budget.
Budget authority and outlays are classified in the functional structure according to the primary purpose of the activity; to the extent
feasible this classification is made without regard to agency or
organizational distinctions. Classifying each activity solely in the
function that defines its most important purpose—even though
many activities serve more than one purpose—permits adding the
budget authority and outlays of each function to obtain the budget
totals.
Structure of the Part 5 sections.—Each function has a common
structure. Each section starts with a sentence describing the national needs served by that function. Each section has a table that
shows budget authority and outlays for that function for 5 years
(1983 through 1987). The table displays each subfunction and provides programmatic detail below the subfunction level. Off-budget
authority and outlays are shown as addendum entries to these
tables.
Allowances.—The budget has two categories of undistributed allowances: an allowance for civilian agency pay raises (including
Coast Guard personnel), and an allowance for increased employing
agency matching payments to employee retirement funds. The
transactions in these categories are discussed in greater detail in
the allowances section. Additionally, the national defense function
1
See the sections entitled "Functional classification" and "National needs presentation" in Part 7 of this
volume for additional background information.
INTRODUCTION
5-3
has allowances for pay raises for military and civilian personnel of
the Department of Defense.
Changes in the functional structure.—The only major changes in
the structure of Part 5 from last year are changes in the functional
classification. It is obviously desirable to maintain stability in the
functional classification from budget to budget so that budget users
will not have to learn a new system each year. However, absolute
stability is impossible; changing conditions frequently require
modifications. For example, the Social Security Amendments of
1983 required that the 1985 budget contain a new function—social
security and medicare—that contains major programs previously
included in the income security and health functions. Whenever
such changes are made, the historical data base is revised to conform to the new usage so that budget users can compare program
trends over time without discontinuities caused by changes in classification or accounting conventions.
Other major functional changes are as follows:
The defense authorization bill for 1984 provides for a new military retirement trust fund beginning in 1985. The cash benefits for
military retirees will be paid out of the trust fund, while the costs
for retirement benefits that are currently accruing will be charged
to the defense budget. The creation of this new trust fund will put
the funding of military pensions on a basis roughly akin to the
funding of Federal pensions for civilian employees. However, it
creates severe discontinuities in functional comparisons of spending
for all years prior to 1985 with spending for 1985 and subsequent
years. The budget shows the affected functional totals without
adjustment, but it also shows an alternative display adjusting the
pre-1985 data for comparability. In the alternative display: (a) the
retirement benefits previously in subfunction 051 (DOD-military)
are shifted into subfunction 602 (Federal employee retirement and
disability); (b) the retirement benefits in subfunction 051 are replaced by a stream of retired pay accrual imputations; and (c) the
imputed accruals (in subfunction 051) are offset by equal imputed
offsetting receipts in subfunction 951 (employer share, employee
retirement).
The alternative set of data using the adjusted accounting treatment is used in the budget for time series analysis (for computing
growth rates, percentages of the budget totals, percentages of GNP,
etc.) to minimize distortion. An OMB staff paper discussing these
changes, the derivations of the data, and the reasons for developing
this alternative data series is available from the Office of Management and Budget, Room 6025, New Executive Office Building,
Washington, D.C. 20503.
Major changes have also been made in the treatment of offsetting receipts. Offsetting receipts constitute a large portion of the
420-000 O - 84 - 9 : QL 3
5-4
THE BUDGET FOR FISCAL YEAR 1985
business-type income that is recorded as offsets to outlays rather
than as budget receipts (see Part 7, "Collections/' for a more detailed explanation). Prior to the 1985 budget, data on "offsetting
receipts'' were tabulated in great detail; the result of this highly
detailed data collection and display in the agency and functional
tables of the budget and related documents created considerable
confusion and yielded few compensating benefits. In the summer of
1983 the OMB and Treasury, with the concurrence of the Appropriations and Budget Committees of the Congress, streamlined this
data base. Approximately 700 offsetting receipt accounts, each with
collections of under $10 million per year (many under $1 million
per year) were merged into three consolidated receipt accounts
reported as collections of the Treasury Department. Two of these
consolidated receipt accounts compose subfunction 809, which is a
new subfunction established to record offsetting receipts that
belong in the general government function but that are not closely
related to any particular subfunction in that function. As a result,
approximately $300 million a year of offsetting receipts that previously had been offset against various other functional locations is
now offset in the new subfunction 809. The remaining consolidation
shifted a substantial number of relatively small interest collections
into a consolidated account for offsetting receipts of interest (in
subfunction 908).
In previous budgets a substantial number of offsetting receipts
were offset at the function rather than the subfunction level. As
part of the offseting receipts streamlining, all offsetting receipts
have been shifted to be offset at the subfunction level. Although
these changes affect the totals shown in 34 different subfunctions,
only one subfunction (302; conservation and land management) was
importantly affected.
Interest paid by trust funds is also now treated differently. Trust
funds that have surplus balances generally invest these surpluses
in public debt securities. In these cases, both the interest payments
and the offsetting receipts are included in the net interest function.
Recently, certain trust funds have begun to borrow money from
other trust funds or from the Treasury. In these cases the payments of interest on these borrowings had been recorded in the
function of the paying account, while the offseting receipts were
recorded in net interest. For example, the old-age and survivors
insurance trust fund paid $1.4 billion of interest to the disability
insurance and hospital insurance trust funds in 1983. The payments were counted as outlays of the function containing the
paying account (currently subfunction 571), whereas the offsetting
receipts were included in net interest (subfunction 908). This treatment overstated the cost of programs in the function of the paying
account and also understated the cost of net interest to the public.
INTRODUCTION
5-5
To correct this deficiency, trust fund interest payments to receipt
accounts within the budget and the matching offsetting receipts
are both classified in the subfunctions of the paying accounts.
The standard rule in the budget functional classification is that
the data base should be reconstructed whenever classification
changes occur, in order to maintain a comparable data series.
Because of this rule, one can, for example, use the data base
showing social security and medicare outlays by function for all
years as if the function had always existed. This permits comparing
program trends over time without major discontinuities due to
changes in classification or accounting conventions. The data in
this budget and associated data sources have been reconstructed to
reflect these changes on a comparable basis.
Relationship to other budget tables.—Other parts of the budget
include a number of tables that supplement the tables shown in
Part 5 by showing data over a longer period of years or showing
more detailed data than those printed in the Part 5 tables.
• Budget outlays by function and subfunction for 1975 through
1985 appear in Table 22 in Part 9. (Data for earlier years are
available upon request from the Office of Management and
Budget.)
• Data on budget authority by function and major program for
1983 through 1989 are contained in Table 6 of Part 9.
• Data on budget outlays by function and major program for
the years 1983 to 1989 are published in Table 3 of Part 9.
• Part 8 contains a detailed set of budget authority and outlay
figures for all budget and off-budget accounts. Each account
has a 3-digit code indicating the function and subfunction in
which it is classified.
The Full Employment and Balanced Growth Act.—Section 4(a) of
the Full Employment and Balanced Growth Act of 1978 requires
that the President's budget incorporate the programs and policies
that the President deems necessary to achieve the goals specified
in the act. These goals are discussed in the President's Economic
Report. Programs and policies to help achieve these goals, as well
as a broad range of other goals mentioned in the act, are discussed
throughout Part 5.
As demonstrated by the following functional discussions, the
goals listed in the act were among those weighed in developing the
President's budget recommendations.
Credit budget—Federal credit activity may take the form of
direct loans or loan guarantees, and both direct loans and loan
guarantees may be issued by either on-budget agencies or offbudget Federal entities. Hence, in order to have a comprehensive
5-6
THE BUDGET FOR FISCAL YEAR 1985
system of control over Federal credit, it is necessary to include all
of these transactions in a single credit budget.
Tables in Part 5 display the program activity of the credit budget
by function; the sum of the figures in these tables add up to the
credit budget totals. The presentation that follows contains no
major changes in the credit structure from last year's budget. More
information on Federal lending activities can be found in Part 6 of
this document and in Special Analysis F ("Federal Credit Programs").
Tax expenditures.—Tax expenditures are features of the individual and corporation income tax laws that provide special benefits or
incentives in comparison with what would be permitted under the
general provisions of the Internal Revenue Code. They arise from
special exclusions, exemptions, or deductions from gross income, or
from special credits, preferential tax rates, or deferrals of tax
liability. In many cases tax expenditures can be viewed as alternatives to other means by which the Federal Government can carry
out policy objectives, such as direct outlays, loan guarantees, regulations, and other tax law provisions.
Tax expenditures are discussed in the following sections on the
Federal program by function, so that they may be compared with
outlays and loan guarantees that serve similar programs. To aid in
this comparison all tax expenditures estimates in Part 5 are shown
as outlay equivalents, that is, the amount of budget outlays required to provide the same level of after-tax benefits by substituting a direct spending program for the tax expenditure. The definition of tax expenditures and the measurement of outlay equivalents are explained in Part 6 and in Special Analyses G, "Tax
Expenditures."
Tax expenditure estimates cannot simply be added together to
obtain totals for functional areas or a grand total. In many cases,
simply adding tax expenditures together produces inaccurate totals
because certain tax expenditures affect the value of other tax
expenditures. These interaction effects are also explained in Part 6
and in Special Analysis G, "Tax Expenditures." In Part 5 the tax
expenditure totals for each function have been adjusted for interaction effects.
Other Federal fiscal activities.—The Federal Government allocates resources by means other than those reflected in budget
outlays, loan guarantees, and tax expenditures. Outlays of the offbudget Federal entities, which are federally owned and controlled
but excluded from the budget under provisions of laws, are similar
in nature to budget outlays. The regulation of economic activity
also has a major impact on the economy in many sectors. Finally,
provisions of the tax law affect the allocation of resources among
INTRODUCTION
5-7
private uses and the distribution of income among individuals in
many important ways not covered by tax expenditures, which include only special provisions of income taxes. Federal taxes other
than income taxes have economic effects, as do the tax rates,
personal exemptions, and other features of the income tax structure that are not treated as tax expenditures.
The sections that follow also include information on off-budget
Federal entities. Off-budget Federal entities and privately owned,
Government-sponsored enterprises are discussed in Part 6 of the
Budget and in Special Analyses E and F.
5-8
THE BUDGET FOR FISCAL YEAR 1985
NATIONAL DEFENSE
The objective of our national defense program is to protect the
Nation and its allies from foreign aggression. We seek to maintain
peace by preventing war. However, we must be prepared to defend
ourselves successfully, should war occur. Deterring foreign threats
to our vital interests and those of our allies and friends depends on
the maintenance of a full range of defense capabilities. These include: strategic nuclear capabilities; maritime strength; strong, forward-deployed forces in Europe and other areas critical to our
defense; and the ability to deploy rapidly and sustain our military
forces worldwide.
U.S. defense policies are designed to deter war by maintaining
nuclear and conventional forces sufficient to convince any potential
adversary that the cost of aggression would not justify an attack.
Should deterrence fail, we must have sufficient strength to defeat
the attack and achieve our national objectives, while minimizing
the scope and intensity of the conflict.
The budget proposes $313.4 billion in budget authority and $272.0
billion in outlays for the national defense function in 1985. The
accompanying table shows budget authority and outlays for the
three major national defense components: military functions of the
Department of Defense, atomic energy defense activities, and defense-related activities of other agencies.
Department of Defense-Military.—The $46.8 billion increase in
budget authority requested for the Department of Defense in 1985
reaffirms the administration's commitment to provide the military
strength needed to ensure the nation's security. In the face of large
improvements in Soviet military capabilities, U.S. forces must be
strengthened to meet the Soviet challenge and to protect our national interests. This requires that we continue efforts to:
• modernize all components of U.S. strategic forces to ensure
their ability to deter a nuclear attack, and to survive and
retaliate should an attack occur;
• improve the Nation's ability to respond militarily to crises
anywhere in the world;
• maintain sufficient maritime strength to ensure our ability to
deploy U.S. forces to critical regions overseas to protect our
interests, support our allies, and ensure continued access to
essential resources;
• maintain alliances and coalitions to protect U.S. interests
worldwide and in particular to achieve NATO objectives; and
• improve the readiness and combat endurance of conventional
forces and modernize the equipment of these forces.
Achievement of these objectives requires sustained increases in
defense resources over the coming years.
NATIONAL DEFENSE
5-9
Fiscal year 1984 supplemental.—The administration will propose
1984 supplemental appropriation requests for costs associated with
military operations in Lebanon and Grenada, and with revised
health benefits, social security taxes, and disability compensation
for defense employees.
Budget authority requested for the Department of Defense-Military is shown by mission category in the following table and discussed below.
Strategic forces.—Since October 1981, the administration has vigorously pursued a program of strategic modernization consistent
with a policy of deterrence. The budget continues efforts to modernize our nuclear forces. Only by establishing modern, capable
U.S. forces do we create the necessary incentives for the Soviet
Union to negotiate genuine arms reductions.
The budget includes a high-priority development program for a
small land-based missile. Deployment of the Peacekeeper (MX) missile is essential to maintaining effective deterrence. The 1985
budget includes funds for continued MX research and development,
production of the missile, and modifications to the Minuteman silos
that will hold the new missiles. Also included in the 1985 program
is an authorization request for the twelfth Trident submarine and
the initial funding for Trident II missile production.
Modernization of our bomber force requires deployment of airlaunched cruise missiles (ALCMs), first on B-52's and later on BlB's. In 1985, the first B-52H's will be modified to carry these
missiles, which are already deployed on B-52G's. The budget also
provides for the procurement of 34 B-1B multi-role bombers and for
continued development of an advanced technology (stealth) bomber.
Procurement of support equipment and engines to modify KC-135A
tanker aircraft will expand our aerial refueling capability.
Funding is provided for a range of technology initiatives to explore possibilities of eliminating the threat of ballistic missile
attack. These initiatives include expanded efforts in directed
energy technology; surveillance, acquisition, and tracking; and high
velocity missiles. The budget also proposes continued development
of an antisatellite system, and improvements in our strategic command, control, communications, and intelligence systems.
General purposes forces.—General purpose forces, which deter or
counter non-nuclear military aggression, must be able to respond
effectively to the most demanding of potential conflicts—a war
between NATO and the Warsaw Pact—while retaining the flexibility to meet other threats to U.S. interests. Under the budget proposals, the following active forces will be supported: 17 Army divisions, 3 Marine divisions, 3 marine airwings, 26 wings of Air Force
tactical aircraft, and 545 deployable battle force ships (including
strategic missile submarines and support ships).
5-10
THE BUDGET FOR FISCAL YEAR 1985
NATIONAL DEFENSE
(Functional code 050; in millions of dollars)
Major missions and programs
1984
estimate
1983
actual
1985
estimate
1986
estimate
1987
estimate
(65,077)
48,574
67,832
70,118
71,844
BUDGET AUTHORITY
Department of Defense—Military:
Military personnel:
Including accruals1
Excluding accruals
Retired military personnel: 2
Existing law
Proposed legislation
Operation and maintenance
Procurement
Research, development, test and evaluation
Military construction
Family housing
Revolving funds and other
Offsetting receipts
Allowance for civilian pay raises
Allowance for military pay raises and benefits.
Other legislation
Subtotal, Department 1 of Defense—Military:
Including accruals
Excluding accruals
Atomic energy defense activities....
(61,050)
45,688
16,155
66,540
80,355
22,798
4,512
2,712
1,103
-389
3
Total, budget authority ..
349,637
379,214
7,806
8,723
9,173
569
622
(238,681) (258,102) 305,000
239,474
258,151
5,718
6,712
642
Defense-related activities
16,795
-243
70,941 80,927 90,603 100,126
85,996 107,586 125,959 137,000
26,868 33,985 37,797 38,426
9,989 10,620
7,158
4,521
4,235
3,821
3,161
2,674
3,092
3,103
1,795
2,551
-721
-713
-698
-526
3,934
2,264
620
6,883 10,932
2,467
-273
168 - 1 8 6
245,835
452
700
265,316 313,375 358,982 389,087
The 1985 budget proposes budget authority of $128.2 billion for
general purpose forces, a 29% increase over 1984, in part because
of a shift in retirement costs. The request provides for strengthening our forces—including rapid deployment forces—by increasing
combat readiness and by fielding new and improved equipment.
Army general purpose forces.—The 1985 budget supports the continued acquisition of systems designed to improve the firepower,
tactical mobility, and survivability of our forces. Procurement of
720 M-l Abrams tanks, 710 Bradley Fighting Vehicles, and other
modern fighting vehicles will support our armored combat capability. In 1985 the Army's new AH-64 Apache attack helicopter will
enter service, and funds are requested for procurement of 144
additional AH-64's, and for continued procurement of assault support helicopters, such as the UH-60 Blackhawk. The budget also
supports development of a new family of light rotorcraft (LHX) to
perform scout, utility, and attack missions, as replacements for
existing helicopters now approaching the end of their useful service
lives.
The Army's conventional forces require a balanced mix of air
defense systems including shorter-range systems such as the Sting-
5-11
NATIONAL DEFENSE
NATIONAL DEFENSE—Continued
(Functional code 050; in millions of dollars)
Major missions and programs
1983
actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
OUTLAYS
Department of Defense—Military:
Military personnel:
Including accruals1
Exluding accruals
Retired military personnel:2
Existing law
Proposed legislation
Operation and maintenance
Procurement
Research, development, test and evaluation
Military construction
Family housing
Revolving funds and other
Offsetting receipts
Allowance for civilian pay raises
Allowance for military pay raises and benefits.
Other legislation
Subtotal, Department of Defense—Military:
Including accruals1
Exluding accruals
Atomic energy defense activities.
Defense-related activities
Total, outlays •
(60,885)
45,523
(64,543)
48,040
67,324
15,945
16,748
-243
68,539
64,450
25,157
4,072
2,578
2,186
-526
2
0
64,915
53,624
20,554
3,524
2,126
-810
-389
(204,429)
205,012
5,171
301
210,484
69,744
71,493
76,854
77,576
30,458
4,908
2,865
1,894
-698
610
2,421
168
86,564 95,881
91,232 106,688
34,707 37,002
8,226
6,307
3,731
3,262
2,401
1,835
-721
-713
3,905
2,236
6,812 10,867
-273
-186
(230,998) 264,400
301,800 339,200
231,000
6,002
7,133
8,179
8,746
546
507
571
649
237,548 272,040 310,550 348,595
ADDENDUM
Off-budget Federal entity:
Federal Financing Bank:
Defense production:
Budget authority
Outlays
1
The accounting for military retired pay is shifted to an accrual basis beginning in 1985. The italicized figures for 1983 and 1984 shown in
parentheses are what would have been shown if the accounting had been done on an accrual basis in these years.
2
Beginning in 1985, the cash payments for retired military personnel are included in the income security function. The accruals for retired
military personnel in 1985-87 are included in the military personnel line above. When using the imputed accruals for 1983 and 1984 shown
above, the cash retirement benefits should be shifted from this function to the income security function. A more detailed discussion of the
changes in military retirement is in the Introduction to Part 5.
3
See Table 6 in Part 9 for functional totals adjusted for military retirement accruals.
4
See Table 22 in Part 9 for functional totals adjusted for military retirement accruals.
er and Chaparral missiles, the Sergeant York gun to defend elements of deployed divisions near the front lines, and longer-range
systems like Patriot and Hawk missiles to defend larger, more
widely dispersed areas of the battlefield. Beginning in 1985, the
Patriot missile will be fielded with U.S. Army units in Europe,
where it will form the backbone of NATO's future air defense
system. The 1985 program also supports deployment of additional
Pershing II ballistic missiles in Europe as part of NATO's longrange tactical and nuclear force modernization.
Emphasis continues to be placed upon realistic unit training and
greater participation of rapid deployment force units in servicewide exercises. Funding for spare parts and depot repair work
5-12
THE BUDGET FOR FISCAL YEAR 1985
MISSION CATEGORIES: DEFENSE, MILITARY
(Functional code 051; in billions of dollars)
Budget authority
Major missions and programs
Strategic forces 1
General purpose forces
Intelligence and communications
Airlift and sealift
Guard and reserve
Research and development2
Central supply and maintenance
Training, medical, and other general personnel activities 3 ..
Administration and associated activities
Support of other nations
Total, budget authority..
1983
actual
1984 1985 1986 1987
estimate estimate estimate estimate
19.7
98.8
17.3
4.3
12.1
18.7
21.6
42.2
4.1
.7
26.3
99.7
20.1
5.6
12.9
21.4
22.5
44.2
4.8
.7
31.6
128.2
25.8
7.5
16.5
27.0
26.5
35.6
5.6
.7
33.9
151.0
28.7
9.6
19.0
30.5
29.3
40.1
6.6
.9
32.7
168.7
30.9
9.6
21.8
32.0
32.1
43.4
7.1
.9
239.5
258.2
305.0
349.6
379.2
238.7
259.1
305.7
350.3
379.9
Prior-year funds and other financial adjustments..
Total obligational authority
1
2
3
Excludes strategic systems development included in the research and development category.
Excludes research and development in other program areas on systems approved for production.
Military retired pay is included in training, medical and other general personal activities through 1984. In 1985 and later years, military
retired pay is funded on an accrual basis with costs distributed to all mission categories.
makes an essential contribution to meeting readiness objectives.
The ability to sustain our forces in conventional combat requires
adequate levels of supplies and replacement equipment and ammunition.
Improvements in the structure of Army heavy divisions are underway and efforts are being initiated to improve the combat capability and the ease and speed of deployment of our light forces. The
overall number of active divisions will increase from 16 to 17,
within planned manpower and equipment resources. The new division will be smaller, lighter, and will require less strategic air- or
sea-lift than our current infantry divisions.
Navy general purpose forces.—These forces must provide a deterrent to military aggression both in peacetime and during crises.
Should deterrence fail, they must be able to defend the sea lines of
communication over which critical U.S. reinforcements and resupply must travel to forward theaters. They must also be able to
conduct offensive operations against Soviet naval forces and facilities, if necessary.
To continue to counter military threats we must further modernize our naval weapons systems and increase our force levels. The
Navy's deployable battle force (including strategic missile submarines and support ships) will increase from 525 ships in 1984 to 545
in 1985, and will reach the administration's goal of 600 by the end
of the decade. Navy plans for 1985-1989 include modernizations to
extend the service life of two aircraft carriers now in use; modern-
NATIONAL DEFENSE
5-13
izing amphibious assault forces; and reactivating the remaining
two Iowa-class battleships. New shipbuilding planned for the same
period includes 13 AEGIS cruisers, 14 guided missile destroyers, 20
attack submarines, 30 support ships, and 25 minesweepers.
Active naval aviation forces are an integral part of naval general
purpose forces. They will consist of 16 tactical airwings (13 Navy
and three Marine Corps), 24 land-based patrol squadrons, and various support aircraft. To maintain and modernize these forces, the
budget provides funding for continued production of F-14 and F/A18 aircraft for the tactical airwings, and the P-3C long-range patrol
aircraft and SH-60B helicopter for anti-submarine warfare.
There has been a marked improvement in naval readiness. Since
January 1981, the proportion of ships in the fleet rated "combat
operationally ready" has increased by 13 percentage points. Contributing to this increase have been an improvement in recruiting
and retention of personnel and increased funding for spare parts
and other maintenance programs. Further improvements in readiness will result from shifting the funding of certain Navy aircraft
spare parts (depot level reparables) from procurement appropriations to operations appropriations, where the funds will be under
the control of operational commanders.
Realizing the full potential of the investment in naval ships and
aircraft requires highly trained crews. Navy tactical aircraft pilots
will average about 288 flying hours in 1985, up from 276 hours in
1984. Ship steaming hours are projected to increase by more than
3%.
Naval ordnance inventories have nearly doubled over the last
three years, increasing combat endurance. Special attention has
been paid to meeting requirements for torpedoes, surface-to-air and
air-to-air missiles, and anti-ship cruise missiles.
Air force general purpose forces.—Tactical air forces consist of
fighter and attack aircraft and a variety of special-purpose aircraft
that support them in combat. Their role is to respond rapidly to
aggression by quickly destroying enemy targets and by providing
an air defense umbrella for our combat forces. In 1985, the Air
Force plans to procure 48 F-15s and 150 F-16s. In addition, the 1985
program continues funding for a new variant of the F-15 or F-16
that will have ground-attack capabilities. This aircraft will significantly improve the range/payload capability of our tactical forces
as well as their ability to operate at night and in adverse weather.
Selection of an F-15 or F-16 derivative for development should
occur in 1984. In addition, there are several ongoing weapons development programs, such as the Advanced Medium-Range air-to-air
missile (AMRAAM), to improve the combat capability of our aircraft.
5-14
THE BUDGET FOR FISCAL YEAR 1985
The budget request provides for procurement of additional TR-1
aircraft for high-altitude standoff reconnaissance and surveillance,
and includes funds for highly accurate, precision-guided tactical
bombs and missiles. The ground-launched cruise missile is being
procured as part of NATO's long-range nuclear force modernization. Deployment of the cruise missile in Europe will continue in
1985.
The U.S. fighter force consists of 26 active wings. In addition to
the ongoing modernization program, the budget supports continued
improvements to readiness through emphasis on spare parts purchases and through increased flying hours and more realistic training for aircrews. In 1985, Air Force tactical aircraft pilots will
average about 240 flying hours. Joint service exercises, in which
Air Force, Navy, and Marine Corps units conduct integrated operations, increase the combat proficiency of our crews.
Intelligence and Communications.—In order to employ our
weapon systems and forces effectively, we must have the means to
direct them in accordance with national policy and military strategy. Information on both friendly and hostile or potentially hostile
forces must be gathered and evaluated and decisions made. Decisions and operational orders, in turn, must be communicated to the
appropriate forces.
The budget provides for improvement in the execution of these
functions by emphasizing development and modernization in such
areas as command centers, sensors, computers, satellites, and other
communication links. These improvements will be applied throughout five broad mission areas: strategic and non-strategic nuclear
force management; theater and tactical force management; worldwide information and communication systems; electronic warfare;
and intelligence.
Airlift and sealift forces.—In order to assure a forward defense
with limited peacetime presence, we must have the ability to deliver military personnel and combat equipment rapidly to crisis areas
anywhere in the world and to sustain them once deployed. The
budget reflects an expansion of our airlift capacity through procurement of 10 additional C-5B and 8 additional KC-10 cargo aircraft, and through the Civil Reserve Air Fleet (CRAF) enhancement program whereby civilian passenger and cargo aircraft will
be available to augment military airlift forces during an emergency. In addition, the budget continues efforts to improve existing
aircraft and increase capacity through modifications. Sealift capabilities will strengthened by modification of container ships for the
ready reserve force.
Prepositioning of equipment and materials near potential trouble
spots is critical to our ability to sustain deployed forces in distant
NATIONAL DEFENSE
5-15
areas. Under the Prepositioning of Material Combined in Unit Sets
(POMCUS) program, the Army has prepositioned heavy equipment
for 4 Army divisions and supporting units in Europe and is acquiring equipment for two more divisions.
National Guard and Reserves.—U.S. defense planning relies
heavily on the ability of reserve components to respond quickly in
times of crisis. The 1985 budget reflects the continuing trend of
improvement in guard and reserve manning, training, and equipment. The reserve components—the Army Reserve, Army National
Guard, Naval Reserve, Marine Corps Reserve, Air Force Reserve,
and Air National Guard—have experienced significant manning
improvements in recent years. Selected reserve manpower is projected to reach 1,103,696 by the end of 1985, a 5.0% increase over
1984. Guard and reserve forces will continue to be improved
through the continued introduction of modern equipment including
M-l tanks, F-16 aircraft and Perry-class guided missile frigates.
The Air Force Reserve will establish its first military airlift squadron equipped with C-5A's.
Research and development.—New and improved weapon systems
must be developed and tested in response to changing requirements
for military equipment. At the same time, a strong research and
technology base must be maintained for purposes of longer-term
weapon development. An increase of 26% in budget authority for
research and development is proposed for 1985, with a continuing
emphasis on strategic programs. Major strategic efforts, described
earlier, include the Peacekeeper and Trident II missiles, the B-1B
and advanced technology bombers, and the new strategic defense
initiative. Tactical development efforts include new Army helicopters, a new attack submarine, and an advanced air-to-air missile.
Training, medical, and other general personnel activities.—General personnel activities include the provision of training and medical services for active duty personnel and benefits for retired military personnel. The 1985 budget request continues improvements
to individual training begun several years ago. High priority is
being placed on training and facilities required to develop team
proficiency and cohesion of operational units.
Military personnel and compensation.—The budget proposes a
military pay raise of 5.5% effective January 1985. Increases in
military compensation and improvements in the quality of service
life have helped considerably in attracting and retaining qualified
personnel. Over the last few years there have been significant
improvements in the manning of our armed forces. In terms of
recruiting and retention, last year was one of the best in the past
decade. Test scores and educational levels of recruits exceed those
5-16
THE BUDGET FOR FISCAL YEAR 1985
of the civilian youth population. Continued improvements in retention have resulted in a career force that is growing in size, experience, and quality.
The Fifth Quadrennial Review of Military Compensation (QRMC)
has proposed changes to special and incentive pay programs for
military personnel and to the military retirement system. These
proposals are being reviewed, and it is anticipated that legislation
will be forwarded to the Congress upon completion of this review.
The budget reflects a change in the accounting treatment of
military retired pay. In prior years, the defense budget reflected
only the benefits paid to personnel who were already retired. Beginning in 1985, these payments are reflected in the income security function. The defense budget reflects the accruing cost of
future retirement benefits currently being earned by personnel on
active or reserve duty during the budget year. A military retirement trust fund has been established, to which amounts equal to
the estimated accruals are paid and from which benefit payments
are made. This system is more consistent with private sector pension practices and with the way in which other Federal retirement
programs are presented in the budget.
Management initiatives.—The administration seeks to strengthen
the U.S. defense posture in the most efficient manner possible. This
requires that management throughout the Department of Defense
be improved. The administration will continue efforts to improve
weapons systems acquisition through multi-year procurement; realistic budgeting of costs; and cancellation of lower priority or marginal programs. Competition will be emphasized as a means to
keep costs down, improve quality, speed innovation, and strengthen
the defense industrial base.
A program has been initiated to end price abuses in our spare
parts program. As part of this effort, the Defense Contract Audit
Agency (DCAA) has been directed to work with the contract administration officies of the military departments and defense agencies
to strengthen spare parts pricing procedures and to assist in the
negotiations of major spare parts purchases.
Legislation will be proposed to establish reimbursement procedures for the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) similar to those enacted in 1983 for
Medicare. This will lead to substantial savings and will also simplify the processing of claims. Another proposal will allow the
Government to seek reimbursement from private medical insurers
for care provided to their beneficiaries in military hospitals and
clinics.
The 1983 defense authorization act established an Inspector General for the Department of Defense. In cooperation and coordination with the military departments, the Inspector General has
5-17
NATIONAL DEFENSE
SUMMARY OF ACTIVE MILITARY PERSONNEL AND FORCES
(Year end—i.e., as of September 30)
1983
actual
Military personnel (in thousands):
End strength:
Army
Navy
Marine Corps
Air Force
Total, Department of Defense.
Average strength:
Army
Navy
Marine Corps
Air Force
Total, Department of Defense..
Strategic forces:
Intercontinental ballistic missiles.Minuteman
Titan II
Poseidon-Trident
Strategic bomber squadrons
General purpose forces:
Land forces:
Army divisions
Marine Corps divisions
Tactical air forces:
Air Force wings
Navy attack wings
Marine Corps wings
Naval Forces:
Attack and multipurpose carriers.,
Battleships
Nuclear attack submarines
Other warships
Amphibious assault ships
Airlift and sealift forces:
C-5A airlift squadrons
Other airlift squadrons
Sealift fleet
1984 1985
estimate estimate
780 780 781
558 565 575
194 197 200
592 595 610
2,123 2,136 2,166
778 781 780
552 558 571
196 196 199
590 597 605
2,117 2,132 2,154
1,000 1,000 1,000
23
42
31
568 616 640
21
21
21
16
3
16
3
17
3
26
12
3
26
13
3
26
13
3
13
1
93
199
61
13
2
93
204
59
13
2
96
211
59
4
13
75
4
13
77
4
13
92
initiated a full-scale effort to search out waste, fraud, and abuse.
Other management improvements will result from reforms that
support and encourage many of the acquisition initiatives discussed
above.
Tax expenditures.—The exclusion from taxable income of housing
and meals for military personnel, provided either in cash or inkind, results in a tax expenditure estimated at $2.5 billion in 1985.
In addition, disability pensions received by current military retirees are largely excluded from taxable income, resulting in a tax
5-18
THE BUDGET FOR FISCAL YEAR 1985
expenditure estimated at $125 million for 1985. Thus, tax expenditures for national defense total $2.6 billion in 1985.
Atomic energy defense activities.—These activities include research, development, testing, and production of nuclear weapons;
production of special nuclear materials; storage of nuclear wastes
from defense programs, and design of reactors for nuclear-powered
Navy vessels. They are conducted outside the Defense Department
by the Department of Energy, in conjunction with the civilian
energy and science programs. The accompanying table shows the
funding levels for these programs. In total, budget authority of $7.8
billion is requested for 1985, compared to $6.7 billion for 1984.
Outlays are estimated to increase from $6.0 billion in 1984 to $7.1
billion in 1985.
The nuclear weapons program involves the design, research, development, testing, and production of nuclear warheads for the
nuclear weapons stockpile, including quality control and periodic
inspection of the finished devices. Funding levels proposed for 1985
provide for increased missiles warhead production for current and
new weapon systems, and for increased production of special nuclear material for use in these warheads.
The defense nuclear waste management program provides interim storage for all defense nuclear wastes. The program also supports research to develop technology for isolation and permanent
storage of these wastes.
The naval reactor development program includes the research
and development, design, procurement, and testing of prototype
reactors for current and future naval vessels.
Other atomic energy defense and research and development programs involve security at defense nuclear facilities, security investigations, and arms control and verification technology development.
Defense-related activities.—Activities of civilian departments and
agencies that support national defense include emergency management, maintenance of strategic stockpiles, and the Selective Service
System.
The defense-related functions of the Federal Emergency Management Agency provide for the Nation's civil defense, mobilization,
and other preparedness programs, and involve outlays estimated at
$339 million in 1985. The civil defense program is responsible for
maintaining an ability to respond effectively to all types of emergencies, including natural disasters.
To meet our needs for materials that might be unavailable
during wartime, the General Services Administration stockpiles
strategic and critical materials. Sales of $78 million and purchases
of $120 million are proposed in 1985 to restructure the stockpile to
5-19
NATIONAL DEFENSE
ATOMIC ENERGY DEFENSE ACTIVITIES
(Functional code 053; in millions of dollars)
1983
actual
1984
estimate
3,344
1,827
418
129
3,767 4,543
2,303 2,617
493
497
149
174
-25
5,024 5,319
3,029 3,156
529
556
193
196
-52 -54
5,718
Major missions and programs
1985
estimate
1986
estimate
1987
estimate
6,712
8,723
BUDGET AUTHORITY
Weapons research, development, test, and production...
Weapons materials production and waste management.
Naval reactor development
Other research programs
Management savings (undistributed)
Total, budget authority...
7,806
9,173
OUTLAYS
Weapons research, development, test, and production...
Weapons materials production and waste management.
Naval reactor development
Other research programs
Management savings (undistributed)
Total, outlays
2,963 3,386 4,088 4,563 4,959
1,663 2,018 2,351 2,958 3,107
541
410
471
548
536
135
193
151
174
188
-24 -28 -66 -54
5,171
6,002
7,133
8,179
8,746
Note: 1984 figures include a proposed supplemental.
reflect current requirements. The 1985 request shows a change in
accounting treatment to a revolving fund approach.
The Selective Service System is responsible for maintaining a
standby capacity to meet defense personnel requirements during
an emergency national mobilization. The budget includes estimated
outlays of $28 million in 1985. The budget request provides for
improving the Selective Service System's mobilization capability,
including recruiting and training of appeal board members,
strengthening national registration, and continuing non-registrant
prosecution programs to ensure compliance with the law.
Credit programs.—Defense production guarantees of $25 million
committed in 1982 continue to be disbursed through the Federal
Financing Bank. These guarantees assist private businesses in fulfilling defense production contracts.
420-000 0 -
84
-
10
:
QL
3
5-20
THE BUDGET FOR FISCAL YEAR 1985
CREDIT PROGRAMS—NATIONAL DEFENSE
(In millions of dollars)
Actual
1983
Direct loans:
National defense programs:
Net outlays
Outstandings
National defense programs (loans made by FFB):
Net outlays l
Outstandings
Guaranteed loans:
National defense programs:
Net change
Outstandings
Estimate
1984
1985
1986
1987
-12
4
18
*500 thousand or less.
1
These are guarantees by the agency for loans that the FFB will disburse. In effect, they are commitments for off-budget direct loans, and are
counted as such in the credit budget.
INTERNATIONAL AFFAIRS
5-21
INTERNATIONAL AFFAIRS
The Federal Government is responsible for protecting and advancing the interests of the United States and its people in international affairs. The predominant U.S. interest is promoting a
world order that fosters peace, security and prosperity, in which
individuals may enjoy political and economic freedom. International affairs expenditures proposed in this budget support U.S. foreign
policy and national security objectives. For 1985, $22.3 billion in
budget authority is requested with outlays estimated to be $17.5
billion. These compare with estimates for 1984 of $23.0 billion in
budget authority and $13.5 billion in outlays. For 1985, total new
direct loan obligations for international affairs are proposed to be
$11.1 billion, and total new guaranteed loan commitments are proposed to be $10.3 billion.
The 1984 and 1985 budget amounts are affected by two special
factors. First, the 1984 budget authority includes a payment of $8.5
billion to increase the U.S. quota for the International Monetary
Fund, which does not recur in 1985. Second, the 1985 amounts are
increased by $3.8 billion in budget authority and $1.4 billion in
outlays, because for the first time certain foreign military sales
credit activities previously accounted for off-budget are brought
onto the budget.
Foreign aid.—Two budget subfunctions—international security
assistance and foreign economic and financial assistance—comprise
foreign aid.
International security assistance.—Security assistance programs
are vital instruments of United States national security and foreign policy, serving to strengthen allied and friendly governments
where the United States has special security concerns. Through
these programs, the United States assists other governments in
strengthening their economies and in acquiring and using modern
military equipment necessary for their defense. Security assistance
also helps ensure U.S. access to military bases and facilities overseas. For 1985, overall security assistance budget authority of $10.0
billion is proposed, and outlays are estimated to be $7.8 billion.
5-22
THE BUDGET FOR FISCAL YEAR 1985
NATIONAL NEED: CONDUCTING INTERNATIONAL RELATIONS
(Functional code 150; in millions of dollars]
Major missions and programs
1983
actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
BUDGET AUTHORITY
Foreign aid:
International security assistance:
Military aid financing
Economic support fund
Assistance to Central America (proposed)
Other.. .
Offsetting receipts
Subtotal, international security assistance....
1,558
3,089
78
-137
1,825
2,958
500
110
-126
5,915
3,068
750
389
-117
6,052
3,138
750
409
-131
6,181
3,205
750
484
-209
4,589
5,267
10,004
10,218
10,412
Foreign economic and financial assistance:
Multilateral development banks
International organizations
Agency for International Development
Public Law 480 food aid
Peace Corps
Refugee assistance
Compact of Free Association (Micronesia)
(proposed)
Other .
Offsetting receipts
1,537
270
1,861
1,028
109
375
1,644
318
1,905
1,052
115
338
1,236
242
2,049
1,319
116
341
1,287
236
2,092
1,300
118
332
1,287
200
2,111
1,288
120
322
65
-534
83
-495
295
95
-496
143
97
-597
145
100
-647
Subtotal, foreign economic and financial
assistance
4,711
4,960
5,198
5,007
4,926
Total, foreign aid
9,300
10,227
15,202
15,225
15,338
1,272
519
45
1,378
580
57
1,600
588
71
1,707
561
68
1,734
605
70
1,837
2,014
2,259
2,337
2,409
681
787
952
1,069
1,226
-4,550
2,250
-700
8,464
3,913
100
3,397
400
2,978
500
-82
84
-88
87
-89
-4,632
9,931
3,925
3,710
3,389
7,186
22,959
22,338
22,341
22,362
Conduct of foreign affairs:
Administration of foreign affairs
International organizations and conferences
Other
Subtotal, conduct of foreign affairs
Foreign information and exchange activities
International financial programs.
Export-Import Bank
Foreign military sales trust fund (net)
International monetary programs
Offsetting receipts
Subtotal, international financial programs....
Total, budget authority
Military aid financing.—This program, which includes the foreign military sales credit program and the military assistance
grant program, enables foreign governments to purchase U.S. military equipment, training, and design and construction services for
their security needs. In the face of continuing challenges to U.S.
interests and economic difficulties in many parts of the world, the
budget provides for a substantial increase in grants and a plan for
5-23
INTERNATIONAL AFFAIRS
NATIONAL NEED: CONDUCTING INTERNATIONAL RELATIONS—Continued
(Functional code 150; in millions of dollars)
1983
actual
Major missions and programs
1984
estimate
1985
estimate
1986
estimate
1987
estimate
OUTLAYS
Foreign aid:
International security assistance:
Military aid financing
Economic support fund
Assistance to Central America (proposed)
Other
Offsetting receipts
Subtotal, international security assistance....
1,011
2,676
205
-137
2,151
2,900
300
292
-126
3,694
3,050
800
347
-117
5,222
3,000
675
381
-131
5,944
3,100
750
396
-209
3,755
5,516
7,775
9,147
9,982
1,242
219
1,657
992
110
319
1,513
321
1,753
1,052
114
356
1,452
256
1,872
1,319
115
363
1,273
243
1,973
1,300
117
338
1,502
250
2,033
1,288
119
329
45
295
_7
-496
143
8
-597
145
8
-647
Foreign economic and financial assistance:
Multilateral development banks
International organizations
Agency for International Development
Public Law 480 food aid
Peace Corps
Refugee assistance.
Compact of Free Association (Micronesia)
(proposed)
Other
Offsetting receipts
-534
13
495
Subtotal, foreign economic and financial
assistance
3,960
4,601
5,170
4,797
5,027
Total, foreign aid
7,715
10,117
12,945
13,944
15,009
1243
482
42
1402
593
59
1545
588
71
1504
560
69
1718
604
70
1,766
2,054
2,204
2,133
2,392
602
770
911
1,088
1,248
578
-439
-776
150
-520
82
1,724
-78
-800
1,635
104
789
105
100
458
25
-201
84
-218
-88
-216
-87
-200
-89
-1,089
561
1,432
691
194
8,995
13,502
17,492
17,855
18,842
Conduct of foreign affairs:
Administration of foreign affairs
International organizations and conferences
Other
Subtotal, conduct of foreign affairs
Foreign information and exchange activities
International financial programs:
Export-Import Bank
Special defense acquisition fund
Foreign military sales trust fund (net)
International monetary programs
Other
Offsetting receipts
Subtotal, international
grams
Total, outlays
financial pro,
ADDENDUM
Off-budget Federal entity:
Federal Financing Bank:
Overseas Private Investment Corporation:
Outlays
Foreign military sales credit:
Budget authority
Outlays
Total:
Budget authority
Outlays
-6
5
-5
1
3,553
2,858
4,313
3,631
2,770
1,964
700
-329
194
-1,024
3,553
2,852
4,313
3,625
2,770
1,958
700
-334
194
-1,024
5-24
THE BUDGET FOR FISCAL YEAR 1985
concessional loans for the procurement of U.S. military goods and
services, using an assumed interest rate of 5%. In addition, the
1985 budget includes the shift of off-budget foreign military sales
credit loans from the Federal Financing Bank to on-budget status.
By making this change the budget reflects more accurately the
entire military aid financing program. This accounts for the large
increase in budget authority for military aid financing from the
1984 level of $1.8 billion to $5.9 billion as requested for 1985.
However, total obligations including on and off-budget amounts
would actually decrease by over $300 million in 1985, and new
direct loan obligations are reduced from $5.7 billion for 1984 to $5.1
billion for 1985.
Economic Support Fund.—Through this program the United
States makes loans and grants for general budget and balance of
payments support and finances individual development projects for
friendly governments where there are political and economic circumstances that bear on our ability to achieve important national
security objectives. The proposed budget authority of $3.1 billion
for 1985 for this program includes $378 million for direct loans and
$2.7 billion for grants. Budget authority for 1985 is $110 million
more than the amount enacted for 1984.
Assistance to Central America.—This new budget entry consists
of the additional amount reserved for various kinds of military and
economic assistance in support of friendly Central American countries that are experiencing social, political, economic and security
problems. The indicated budget authority of $500 million for 1984
and $750 million for 1985 is for planning purposes. The increased
assistance is the first part of a multiyear program to help foster
and promote democratic, free market countries in the region. Once
the recommendations of the National Bipartisan Commission on
Central America have been reviewed and the administration's program for these countries has been fully developed, definite requests
for 1984 and 1985 will be transmitted.
Other.—Security assistance also includes budget authority requested in 1985 of $49 million for peacekeeping operations, $61
million for international military education and training, $5 million for anti-terrorism assistance, and $274 million to replenish the
guarantee reserve fund. This is the first year in which appropriations are being requested for the fund, the purpose of which is to
make payments to the Federal Financing Bank for delinquent and
rescheduled foreign military sales credit loans.
Foreign economic and financial assistance.—An important com-
plement to security assistance is the achievement of international
policy objectives through foreign economic and financial assistance
INTERNATIONAL AFFAIRS
5-25
programs. These programs are designed to encourage the expansion
of a market-oriented international economic system and to help
meet the development and humanitarian needs of developing countries. Budget authority requested for 1985 is $5.2 billion, and outlays are estimated to be $5.2 billion.
Multilateral development banks.—The United States contributes
to the World Bank group of institutions and the three regional
banks for Latin America, Asia and Africa. These institutions provided nearly $20 billion of long-term loans and technical assistance
in 1983 and promoted sound economic policies in recipient countries. Lending programs are funded through direct contributions of
developed and some advanced developing members and through
borrowing in world capital markets backed by callable capital, a
means by which developed member governments guarantee repayment. Direct contributions and callable capital are provided in
accord with multiyear international agreements to replenish the
resources of each bank.
The 1985 request for the banks includes proposed budget authority of $1.2 billion. Also, $2.9 billion will be sought for callable
capital under program limitations. Three-fifths of proposed budget
authority will be used to make the first $750 million installment to
the seventh replenishment of the International Development Association. A first payment is also proposed to the Inter-American
Investment Corporation, a new institution for lending for private
sector enterprise in this hemisphere's developing countries. Remaining funds will be used to make authorized annual payments to
ongoing bank replenishments. In 1984, an additional $320 million
in budget authority and $795 million in callable capital is being
requested to permit the United States to complete 1984 commitments to current replenishments left unfunded under the 1984
continuing resolution for foreign aid.
International organizations.—Voluntary contributions of $242
million are proposed for several developmental, humanitarian and
scientific programs carried out by the United Nations and other
international organizations. The administration continues to believe that, useful as some of these programs may be, a higher
priority must be afforded other foreign assistance activities accomplishing the same objectives.
Agency for International Development (AID).—AID carries out
bilateral development assistance programs in more than 60 countries in Latin America, Africa and Asia. The agency also supports
the overseas programs of U.S. private and voluntary organizations
and assists development-related research activities in U.S. universities. Proposed budget authority for AID development programs for
5-26
THE BUDGET FOR FISCAL YEAR 1985
1985 is $2.0 billion, which includes $434 million for new direct loan
obligations. Principal objectives of bilateral development programs
include supporting sound economic policies in recipient countries,
utilizing the American and recipient country private sectors as
vehicles for economic growth, enhancing the capacity of indigenous
institutions in developing countries and increasing the use of science and technology in development.
The Africa initiative is a new, multiyear, international effort
designed to provide special support to sub-Saharan African countries that, by their actions, have shown a willingness to address
their deep-seated economic and financial problems. In 1985, $75
million of budget authority is requested for initial U.S. participation. Beginning in 1986, the administration will propose that funds
appropriated for the Sahel development program be merged with
the functional development assistance program appropriations.
Public Law 480 food aid.—Through concessional loans for food
imports and direct food distribution to the needy, food aid serves a
wide range of policy objectives, including support of security objectives, economic development, export market development, and humanitarian relief. The budget includes a request of $1.3 billion in
budget authority for 1985, an increase of $267 million from 1984.
New direct loan obligations of $867 million for 1985 are included in
the requested budget authority. Assistance will be concentrated on
the poorest developing countries and those of major importance to
the United States. A significant portion of direct food donations
will be devoted to meeting refugee and emergency relief needs.
Peace Corps.—The Peace Corps will continue to support nearly
5,000 volunteers in more than 50 countries worldwide. Budget authority of $116 million is requested in 1985, continuing the program at its 1984 level.
Refugee assistance.—Due to the persistent needs of refugees in
many parts of the world, the United States will continue its refugee assistance program at about the 1984 level. The 1985 budget
provides $341 million for refugee relief abroad, primarily in Africa,
the Near East, Pakistan and Southeast Asia, and for the admission
of up to 72,000 refugees into the United States, the same number
as in 1984. Fifty thousand Indochinese are estimated to be admitted to the United States in both years. The additional assistance
that refugees receive once they are settled in the United States is
included in the income security function.
Compact of Free Association.—The people of the Federated States
of Micronesia and the Marshall Islands have approved the Compact
of Free Association negotiated by the United States and their
governments. The President will soon transmit the Compact to the
INTERNATIONAL AFFAIRS
5-27
Congress for enactment into law and will notify the United Nations Trusteeship Council of the impending change in status of the
two states. The Compact binds the United States to make annual
payments to the two states during the next fifteen years totaling
$2.2 billion to aid in their successful development as sovereign
states. The administration will seek budget authority of $295 million for 1985 to carry out the Compact and amend the request for
funds included in the general government function to support current Trust Territory of the Pacific Islands arrangements upon enactment of the necessary authorizing legislation.
Conduct of foreign affairs.—These funds primarily cover the operating costs of the Department of State in administering United
States foreign policy and provide contributions assessed by international organizations of which the United States is a member.
Budget authority of $2.3 billion is proposed for 1985, and outlays
are estimated to be $2.2 billion.
Administration of foreign affairs.—The administration's commitment to actively promote American interests abroad is reflected in
the budget request for State Department operations. Personnel
increases are requested to strengthen the Department's overseas
reporting and analysis capability and to open several new diplomatic and consular posts. Additional staff are also provided to
handle growing passport, consular, and administrative workload.
Because the personal safety of United States Government personnel abroad and the protection of United States facilities overseas
are important, security personnel and protective measures will be
further enhanced in 1985. Funds are provided for the development
and construction of needed office buildings and staff housing
abroad. These improvements in the administration of foreign affairs increase proposed budget authority from $1.4 billion in 1984 to
$1.6 billion in 1985.
International organizations and conferences.—The United States
appreciates the importance to the world community of effective
international organizations carrying out their objectives as determined by their charters. In order to do so, it is the strong belief of
the United States that international organizations must be managed effectively and economically. Therefore, the United States
plans to continue to maintain a restrictive budget policy that emphasizes the need to reduce administrative costs and to eliminate
low priority and obsolete activities. Budget authority of $588 million for 1985 is proposed. The recent decision of the United States
to withdraw from the United Nations Educational, Scientific, and
Cultural Organization is reflected in the 1986 and later estimates.
5-28
THE BUDGET FOR FISCAL YEAR 1985
Foreign information and exchange activities.—The need to im-
prove foreign understanding of American society and policies is
reflected in the budget request of the United States Information
Agency. This agency conducts academic and leader exchanges,
broadcasts worldwide through the Voice of America radio in 42
languages, produces and disseminates media materials, holds seminars, and operates libraries and cultural centers in 127 countries.
For 1985, an increase of $183 million to $849 million in budget
authority is proposed for that agency. The most noteworthy element of that request is the administration's continuing effort to
modernize and expand the Voice of America, the country's principal vehicle for communicating directly with the peoples of the
world. Funds are included for initial work on new transmitter
facilities, replacement equipment on existing facilities and for expanded broadcasts. The request also includes increases for other
agency programs including the President's International Youth Exchange Program, academic and other exchange programs, Radio
Marti (which broadcasts to the people of Cuba), the National Endowment for Democracy, and new efforts to use television to increase international understanding and foreign policy effectiveness.
The Board for International Broadcasting provides grants to
Radio Free Europe/Radio Liberty, Inc. (RFE/RL), which broadcasts
in 21 languages to Eastern Europe and the Soviet Union. Because
of the strong dollar abroad and the completion of capital improvements in 1984, the 1985 request for the Board of $100 million in
budget authority will permit RFE/RL to continue the expanded
1984 level of operations.
International financial programs.—To assist in the steady growth
of the international economy, the United States conducts programs
to improve the functioning of the international financial system
and to facilitate U.S. participation in world trade. For 1985, proposed budget authority is $3.9 billion, and estimated outlays are
$1.4 billion for these programs. Particular attention has recently
been focused on the impact on the U.S. and world economies of the
international debt problem. Debt servicing problems of U.S. creditors are expected to increase Federal budget net outlays by $3.1
billion in 1984 and $2.7 billion in 1985.
Export-Import Bank.—The Bank provides direct loans, loan guarantees, and insurance to facilitate the export of U.S. goods and
services. The administration has determined that $3.83 billion shall
be the direct loan limitation level for 1985. If extraordinary circumstances require it, the need for an increased authorization in the
future will be reviewed. For loan guarantee commitments, a $10.0
billion level is proposed for 1985. These levels will provide substantial room for growth in activity from actual 1983 levels which were
INTERNATIONAL AFFAIRS
5-29
depressed by poor conditions in U.S. export markets. In addition,
the administration's success in reducing official subsidies through
improved international export credit agreements should permit increased participation by the private sector in export financing.
Special defense acquisition fund.—This fund finances the procurement of military equipment in advance of specific orders by
foreign governments. As a result, equipment on order for U.S.
military uses need not be diverted to meet pressing needs of foreign countries. For 1985, outlays are estimated to be $104 million.
Foreign military sales trust fund (net).—Most sales of military
equipment and services to foreign governments are made by the
Federal Government. Resources in this trust fund come from payments by foreign governments that have purchased military goods
and services from the United States. Outlays occur when payments
are made to suppliers. This fund may show substantial outlays or
receipts in a given year. These represent transactions on behalf of
foreign governments and are not a drain on the U.S. taxpayer. Net
budget authority for 1985 is expected to be $100 million, while
outlays net of receipts should equal zero for 1985.
Tax expenditures.—In an effort to encourage exports, taxes are
deferred on a portion of the profits from the export sales of domestic international sales corporations (DISCs) and Americans working
abroad are permitted to exclude substantial amounts of earned
income and housing allowances from taxation. Tax expenditures
resulting from DISCs and the foreign earned income exclusion are
$1.4 billion and $2.2 billion, respectively, for 1985. In response to
complaints by members of the European Community that DISC
violates the General Agreement on Tariffs and Trade (GATT), the
administration has proposed the creation of foreign sales corporations (FSCs) as a replacement for DISCs. FSCs would provide similar export incentives as DISCs in a manner more acceptable to
GATT. An additional tax expenditure for international affairs of
$1.0 billion results from the deferral of income tax on the undistributed earnings of foreign corporations controlled by U.S. shareholders. Total tax expenditures for international affairs are $4.7
billion in 1985.
5-30
THE BUDGET FOR FISCAL YEAR 1985
CREDIT PROGRAMS—INTERNATIONAL AFFAIRS
(In millions of dollars)
Actual
1983
Direct loans:
Foreign military sales credit:
New obligations
Net outlays
Outstandings
Foreign military sales credit (loans made by FFB):
New obligations*
Net outlays
Outstandings
Economic support fund:
New obligations
Net outlays
Outstandings
Development credit:
New obligations
Net outlays
Outstandings
Development credit (loans held by FFB): 2
Net outlays
Outstandings
Public Law 480 food aid:
New obligations
Net outlays
Outstandings
Export-Import Bank:
New obligations
Net outlays
Other-.
Outstandings
New obligations
Net outlays
Outstandings
Total, direct loans:
New obligations.
Net outlays
Outstandings
1984
1985
1986
1987
1,175
-84
226
1,315
-75
152
5,115
554
706
5,233
2,055
2,761
5,345
2,790
5,551
3,932
2,858
14,293
4,401
3,631
17,924
1,964
19,888
418
471
5,676
326
270
5,946
378
313
6,260
392
392
6,652
401
401
7,053
458
74
12,085
453
35
12,119
448
55
12,174
440
55
12,229
432
28
12,257
-5
18
-6
12
-5
7
2
1
810
494
8,801
774
480
9,281
867
628
9,909
892
542
10,451
925
525
10,976
845
317
2,580
1,388
3,830
1,264
3,830
499
3,830
213
16,883
440
115
551
18,271
481
175
727
19,535
511
232
958
20,034
536
258
1,216
20,247
551
274
1,490
8,078
4,240
58,534
10,329
5,898
64,432
11,149
5,005
69,437
11,323
3,466
72,903
11,483
3,206
76,109
- 3 2 9 -1,024
19,559 18,535
_\
5-31
INTERNATIONAL AFFAIRS
CREDIT PROGRAMS—INTERNATIONAL AFFAIRS—Continued
(in millions of dollars)
Actual
1983
Guaranteed loans:
Foreign military sales credit:
Net change
Outstandings
Development credit:
New commitments
Net change
Outstandings
Export-Import Bank:
New commitments
Net change
Outstandings
Estimate
1984
1985
1986
1987
-30
227
-68
159
40
199
244
443
420
864
232
127
1,232
250
188
1,420
300
237
1,657
305
165
1,822
305
136
1,958
8,524
-631
5,439
10,000
1,123
6,562
10,000
440
7,001
10,000
267
7,268
10,000
262
7,530
8,757
-533
6,898
10,250
1.243
8,141
10,300
716
8,857
10,305
676
9,533
10,305
818
10,351
Total credit budget (new obligations and new
16,835
commitments)
20,579
21,449
21,628
21,788
Total, guaranteed loans:
New commitments
Net change
Outstandings
1
These are obligations made by the agency to guarantee loans that the FFB will disburse. In effect, they are obligations for
off-budget direct loans, and are counted as such in the credit budget. Policy responsibility for these loans rests with the
guaranteeing agency. The totals for foreign military sales credit loans made by FFB in this table are not identical to the entries
in the addendum to the National Needs table for off-budget Federal entities due to timing differences between budget authority
and2 new obligations.
The direct lending activities of the Overseas Private Investment Corporation are financed by the FFB. Loan assets are issued
by the agency. According to law, these assets are backed by loans that the agency continues to service. The agency guarantees
the loan assets, sells them to the FFB, and repurchases them upon maturity. FFB net outlays for this account represent
acquisition of loan assets less repurchases by the agency. Increases in the volume of sales of loan assets are added to the FFB
direct loan outstandings, while the agency's direct loan outstandings decrease by the amount of loan assets sold to the FFB.
5-32
THE BUDGET FOR FISCAL YEAR 1985
GENERAL SCIENCE, SPACE, AND TECHNOLOGY
Federal investments in general science and space programs are
needed to ensure the future technological strength of the Nation.
The continued growth of scientific knowledge through basic research, the development of new technology, and the training of
scientists and engineers are vital to sustained economic growth, to
enhanced national security, and to continued improvement in the
quality of life.
Most of the Federal investment in science and technology is
reflected in research and development programs included in other
budget functions that serve specific agency missions, such as
health, defense, energy, and agriculture. The programs in this
function have the goal of generally helping to ensure U.S. strength
and leadership in science and space technology in the broad national interest. Included are all the programs of the National Science
Foundation, the space programs of the National Aeronautics and
Space Administration, and the general science programs of the
Department of Energy. Proposed budget authority for the programs
in this function is $9.1 billion in 1985, an increase of 5.9% over
1984.
Common to the programs in this function is the support of basic
research, accounting for more than one-third of the overall Federal
funding for such research. Departments and agencies in other functions, chiefly the Department of Agriculture and the National Institutes of Health, provide the major share of support of basic
research in the agricultural and life sciences. But the programs in
this function are the primary source of funding for the physical
and engineering sciences and account for some 80% of the total
Federal support for these disciplines. The balance is provided
mainly through programs of the Department of Defense.
In 1985, the Federal investment in basic research through programs in this function is projected to grow by about 16%. This
increase, together with those in other functions, reflects the high
priority that this administration continues to give to the support of
basic research. It gives further recognition to the understanding
that the private sector lacks sufficient incentives to make adequate
investments in such research to serve the broad national interest.
General science and basic research.—This part of the function
covers all the programs of the National Science Foundation and
the general science programs of the Department of Energy in high
energy and nuclear physics. Budget authority of $2.3 billion is
proposed for these programs in 1985, a 15% increase over 1984.
National Science Foundation programs.—The principal mission of
the National Science Foundation (NSF) is to promote basic re-
5-33
GENERAL SCIENCE, SPACE, AND TECHNOLOGY
NATIONAL NEED: INCREASING BASIC SCIENTIFIC KNOWLEDGE AND USE OF SPACE
(Functional code 250; in millions of dollars)
1983
actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
1,104
534
1,326
638
1,507
746
1,570
755
1,636
800
1,638
1,965
2,253
2,326
2,437
4,085
1,596
647
4,048
1,735
808
3,821
2,019
964
4,001
2,242
934
4,323
2,330
930
Subtotal, space research and technology
6,328
6,591
6,804
7,177
7,583
Total, budget authority
7,966
8,555
9,057
9,503 10,020
1,055
589
1,242
621
1,457
684
1,525
761
1,588
794
1,644
1,864
2,141
2,286
2,383
4,053
1,486
562
4,091
1,590
746
3,884
1,899
894
3,998
2,127
939
4,190
2,279
938
Subtotal, space research and technology
6,101
6,427
6,677
7,064
7,407
Total, outlays
7,745
8,291
8,818
9,350
9,790
189
189
1,079
131
-7
-86
Major missions and programs
BUDGET AUTHORITY
General science and basic research:
National Science Foundation programs
Department of Energy general science programs
Subtotal, general science and basic research
Space research and technology:
Space flight
Space science, applications, and technology
Supporting space activities
..
OUTLAYS
General science and basic research:
National Science Foundation programs
Department of Energy general science programs
Subtotal, general science and basic research
Space research and technology:
Space flight
Space science, applications, and technology
Supporting space activities
ADDENDUM
Off-budget Federal entity:
Federal Financing Bank:
Supporting space activities:
Budget authority
Outlays
search in all fields of science and engineering. The NSF's broadbased research programs complement the more specialized support
of basic research by agencies in other functions, such as the Department of Defense and the National Institutes of Health, and
helps to ensure balanced Federal support across the major scientific disciplines.
The 1985 budget includes $1.5 billion in proposed budget authority for NSF, $181 million or 14% above 1984. Within this amount,
the support of basic research will increase by 13%.
The principal increase, $112 million in 1985, will be for additional support of basic research at academic institutions through
project grants. Within this increase, further emphasis will be given
5-34
THE BUDGET FOR FISCAL YEAR 1985
to strengthening support for the physical and engineering sciences
and to the improvement of university research instrumentation
across all disciplines.
The proposed budget for NSF places special emphasis on increasing the access of academic scientists in all scientific fields to the
most advanced computers as research tools. As part of this effort,
the Foundation plans to extend and expand in 1985 its effort begun
in 1984 to provide blocks of time on supercomputers located at
existing centers and to increase funding for networks and local
user support. A related but separate proposal is to provide for an
advanced vector computer at the National Center for Atmospheric
Research to serve the special needs of researchers in the atmospheric and ocean sciences. In addition to increased support for
engineering research through traditional project grants, the 1985
budget includes $10 million in budget authority to initiate a program of support for centers for cross-disciplinary research in engineering at universities. This program will support specialized instrumentation and experiments by groups of researchers and students across the engineering disciplines.
The budget also provides for the construction of a sophisticated
instrument to further advance radio astronomy, the very long baseline array radiotelescope.
In addition, an increase is provided for the U.S. Antarctic program, managed by NSF, to assure the necessary logistical support
for Antartic research programs and thus maintain an active and
influential U.S. scientific presence in that region.
The budget also includes $76 million in budget authority to continue to develop innovative teaching materials and to improve the
instructional capabilities of the Nation's science and mathematics
teachers. These funds are intended to complement the efforts of
State and local governments and the private sector. Additional
Federal assistance to help alleviate the shortage of qualified mathematics and science teachers is included in the education^ training, employment, and social services function under the Department of Education.
Department of Energy general science programs.—The general sci-
ence programs of the Department of Energy (DOE) continue to
support basic research in nuclear and high energy physics initiated
under the Atomic Energy Commission. The goal of this research is
to achieve a comprehensive understanding of the basic constituents
of matter and energy and the forces that govern their interaction.
Budget authority of $746 million is requested for support of these
programs in 1985, $108 million above 1984.
This increase includes an additional $48 million for the operation
of particle physics accelerator facilities supported by DOE. This
amount will largely cover cost increases over 1984.
GENERAL SCIENCE, SPACE, AND TECHNOLOGY
5-35
The increase also provides an additional $40 million in 1985 for
several on-going or new research facilities. Included in high energy
physics are funds to continue construction of the Stanford linear
collider. In nuclear physics, additional support is planned to complete the upgrading of accelerator facilities at the University of
Washington and at Yale University, and to undertake an upgrading of existing accelerators at the Brookhaven National Laboratory. The budget also includes an increase to finance planning for
the construction of an advanced nuclear physics electron facility
sponsored by the Southeastern University Research Association at
Newport News, Virginia.
Funds to complete the construction of the Tevatron II upgrade at
the Fermilab accelerator, and funds to continue the Tevatron I
modifications at Fermilab are also provided for at about the 1984
level.
The budget proposes $20 million in budget authority to continue
funding preliminary research and development activities for the
design of a possible next generation of high-energy particle accelerators.
Space research and technology.—This part of the function covers
the space-related activities of the National Aeronautics and Space
Administration (NASA). For 1985, the administration is proposing
to continue a vigorous program of space science, applications, and
technology development. It is also committed to providing the resources necessary to continue progress towards making the space
shuttle fully operational and cost-effective in providing routine
access to space. Budget authority of $6.8 billion is proposed for
these programs in 1985, an increase of $213 million over 1984. New
activities for 1985 include the definition and design of a space
station.
The budget levels proposed for 1985 and later years reflect economies from management reform efforts now under way or planned.
In NASA, efficiency improvements in administrative support services will reduce budget authority and outlays over $7 million in
1985.
Space flight.—The space flight programs of NASA help sustain
and improve the Nation's ability to supply space transportation
services. These programs include the development, production, and
operation of the four-orbiter space shuttle fleet; research activities
using the shuttle-borne Spacelab; development and procurement of
the upper stage vehicles to carry shuttle-launched payloads into
high-Earth orbit; and cooperative projects with other nations.
Budget authority of $3.8 billion is proposed for the space flight
program. This includes $150 million in budget authority for a
program to define and design a space station. Planned for launch
420-000
0 - 8 4 - 1 1
:
QL 3
5-36
THE BUDGET FOR FISCAL YEAR 1985
in the early 1990's, the space station is intended to enhance the
Nation's science and applications programs, to help develop advanced technologies potentially useful to the economy, and to encourage greater commercial use of space.
Space science, applications, and technology.—These programs primarily include support for studies of the solar system and the
universe; studies in remote sensing of the Earth's resources and
environment; and research on materials processing in space.
Budget authority of $2.0 billion is proposed for 1985, a 16% increase over 1984.
In space science, funds are proposed to initiate the Mars geoscience/climatology orbiter to continue the Nation's highly successful
planetary exploration program. This mission, scheduled for launch
in 1990, will carry out a detailed mapping of Martian geological
and environmental features. The 1985 budget also proposes the
increased funding needed to continue development of approved
projects in space astronomy and planetary exploration. These include the space telescope, planned for launch in 1986, and the
Galileo mission to Jupiter, also currently planned for launch in
1986. Funding is provided to support spacecraft in flight, e.g., the
Voyager mission now enroute to Uranus, and ground-based research and support.
Within space applications, proposed activities in 1985 will include
space experiments to study the Earth and its environment; research on materials processing in space; and long-term basic technology for space communications. In 1985, development of the
upper atmosphere research satellite will be initiated. This is a $650
million project to carry out research in the Earth's stratosphere
that will investigate changes in the chemical composition of that
region. Also, development will begin on the scatterometer, a research instrument designed to provide a better understanding of
global wind patterns on the surface of the oceans. This instrument
will be carried on a Navy satellite now under development.
The basic space research and technology program of NASA, is
broadly applicable to and supportive of all major space activities.
Continued real growth in funding is proposed for 1985 to help
provide the science and technology base for the space program in
areas such as propulsion, electronics, and materials research.
Supporting space activities.—Budget authority of $964 million is
proposed for spacecraft tracking, data gathering, and processing
support for the entire space program, an increase of $156 million
over 1984. This increase is primarily to cover added costs resulting
from problems associated with the launch of the first NASA tracking and data relay satellite system (TDRSS).
5-37
GENERAL SCIENCE, SPACE, AND TECHNOLOGY
Credit programs.—The credit table reflects the 1984 level for
direct loans made by the Federal Financing Bank for the construction and acquisition of the TDRSS. No additional loans for this
system are expected in 1985.
CREDIT PROGRAMS—GENERAL SCIENCE, SPACE AND TECHNOLOGY
(In millions of dollars)
Actual
1983
Direct loans:
NASA satellite leases (loans made by FFB):
New obligations 1
Net outlays
Outstandings
Total credit budget (new obligations)
Estimate
1984
1985
1986
189
189
947
131
131
1,079
1,079
-7
1,072
189
1987
131
86
986
1
These are commitments made by the agency to guarantee loans that the FFB will disburse. In effect, they are commitments for off-budget
direct loans, and are counted as such in the credit budget. Policy responsibility for these loans rests with the guaranteeing agency.
Tax expenditures.—In addition to direct Federal funding of basic
research, the tax code encourages private sector research and development, including basic research, by allowing expenditures for
such purposes to be deducted as a current expense. The 1985 estimate for this provision is $605 million. A 25% tax credit is also
available to encourage certain basic research and experimentation;
the estimate for this tax credit is $1.1 billion in 1985. Tax expenditures for general science, space, and technology are estimated to
total $1.9 billion in 1985.
5-38
THE BUDGET FOR FISCAL YEAR 1985
ENERGY
The Nation needs adequate supplies of economical energy. The
most promising way to meet this need is to let market forces work
and to focus Federal Government energy programs on limited but
important responsibilities, such as support of longer-term research
and the strategic petroleum reserve.
The primary role of the Federal Government with respect to
energy is to establish and maintain sound policies based on economic principles that promote efficient energy production and use.
This strategy recognizes that most of the decisions about using and
producing energy in thifc country are made by millions of individuals—consumers, workers, managers, inventors and investors—
throughout the country in the private sector. It therefore emphasizes the importance of allowing our market economy to function to
ensure that these decisions are as productive and efficient as possible. As a major first step toward achieving this objective, the
President decontrolled oil markets shortly after taking office and
the administration has subsequently supported complete elimination of counterproductive controls on natural gas prices.
The Government has limited but important additional responsibilities in energy, and this budget focuses on continuing to meet
those responsibilities. They include establishing and enforcing sensible and effective environmental and nuclear safety regulations,
providing for a strategic petroleum reserve, continuing on-going
Federal energy production activities, and supporting longer term
research and development.
A total of $3.1 billion in budget authority is proposed for onbudget programs included in this function in 1985, a decrease of
$265 million from 1984 levels. The major causes of this decrease
are:
• a $223 million reduction in the Tennessee Valley Authority
and the Federal power marketing agencies largely resulting
from reduced construction of new power plants and transmission facilities; and
• a $90 million reduction in net budget authority needed for the
uranium enrichment program, as receipts from the program
exactly match budget authority in 1985 after falling short by
$90 million in 1984.
ENERGY
5-39
In addition, a reduction of about $90 million in budget authority
is estimated in 1985 as a result of savings from a variety of management reform initiatives underway or planned in the Department of Energy. For example, management improvements in the
Department will simplify and consolidate financial procurement
and other administrative systems; eliminate excessive management
requirements imposed on contractors; and contract-out support
services t h a t are readily and economically available from commercial sources.
These and other reductions are offset in part by a $288 million
increase for the strategic petroleum reserve to build storage facilities needed to complete the 750 million barrel system by 1990.
A total of $6.3 billion in budget authority is estimated for offbudget programs in 1985. This includes $3.9 billion for the electricity program of the Rural Electrification Administration and $1.9
billion for acquiring oil for the strategic petroleum reserve.
Energy supply.—The Federal Government's energy supply activities fall into three categories: research and development programs,
direct production programs and subsidies to foster private investment in synthetic fuel production.
Private industry invests billions of dollars each year in research
and development (R&D), including R&D related to energy. Federal
Government spending is, consequently, intended to complement
this private sector R&D investment. It does this by supporting
basic research where the benefits of the research do not readily
accrue to private investors. It also does this by supporting other
longer-term R&D, which broadly serves the national interest but is
beyond the investment time horizon of private industry.
A total of $2.3 billion in budget authority is proposed for energy
supply research and development programs in 1985, equal to 1984.
Virtually all of these programs are funded through the Department of Energy (DOE). They cover three main elements: work on
non-nuclear energy, on nuclear energy, and on supporting research
which contributes to both nuclear and non-nuclear technology development.
The budget proposes $514 million in budget authority for nonnuclear R&D in 1985, but with amounts available from prior years,
the program level will total $582 million. The program level for
1985 includes $226 million for work on solar and other renewable
energy resources; $261 million for research on coal, oil, gas and
other fossil fuels; and $95 million for other non-nuclear energy
research and development, including research on advanced environmental control technologies, which would be applicable in
dealing with acid rain.
For nuclear energy R&D, the budget proposes $1.1 billion in
budget authority in 1985, about equal in total to the 1984 level. The
5-40
THE BUDGET FOR FISCAL YEAR 1985
NATIONAL NEED: ENERGY
(Functional code 270; in millions of dollars)
Major missions and programs
BUDGET AUTHORITY
Energy supply:
Research and development
Direct production (net):
Uranium enrichment
Nuclear waste disposal fund
Petroleum reserves
Power marketing:
Existing law
Proposed legislation
1983
actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
2,294
2,284
2,316
2,293
137
90
-65
8
-50
- 9 8 1 -1,017 -1,057
90
-993
24
-960
2,673
788
659
436
-30
240
29
-121
-29
2,552
2,034
1,583
1,624
1,208
449
456
144
238
160
238
168
238
449
456
382
398
406
Emergency energy preparedness
242
159
447
283
189
Energy information, policy, and regulation
878
764
735
754
758
4,121
3,413
3,148
3,059
2,561
2,715
2,508
2,425
2,339
2,305
42
-52
31
-27
-28
23
95
- 9 6 3 -1,017 -1,047 -1,000
24
-957
Subtotal, energy supply
Energy conservation:
Existing law
Proposed legislation
Subtotal, energy conservation
Total, budget authority
OUTLAYS
Energy supply:
Research and development
Direct production (net):
Uranium enrichment
Nuclear waste disposal fund
Petroleum reserves
Power marketing:
Existing law
Proposed legislation
Subsidies for nonconventional fuel production
601
453
25
73
87
-29
166
2,421
2,032
1,606
1,361
1,176
477
490
339
71
306
190
162
238
477
490
410
496
400
Emergency energy preparedness
215
203
357
329
191
Energy information, policy, and regulation
886
737
771
729
750
3,999
3,463
3,144
2,914
2,517
Subtotal, energy supply
Energy conservation:
Existing law
Proposed legislation
Subtotal, energy conservation
Total, outlays
-200
-29
229
-480
-29
313
major programs within this category are magnetic fusion and fission R&D. Budget authority of $483 million is proposed for fusion,
maintaining the program at about the 1984 level of activity.
In nuclear fission related R&D, the 1985 budget provides $152
million to clean up the waste material from uranium mining, an
5-41
ENERGY
NATIONAL NEED: ENERGY—Continued
(Functional code 270; in millions of dollars)
Major missions and programs
ADDENDUM
Off-budget Federal entities:
Synthetic Fuels Corporation:
Budget authority
Outlays
Rural electrification and telephone revolving fund:
Budget authority
Outlays
Federal Financing Bank:
REA loan asset sales:
Budget authority:
Existing law
Proposed legislation
Outlays:
Existing law
Proposed legislation
REA loan guarantee originations:
Budget authority
Outlays
Alternative fuels production:
Budget authority
Outlays
Tennessee Valley Authority:
Budget authority
Outlays
Geothermal resources development fund:
Budget authority
Outlays
Strategic petroleum reserve:
Budget authority
Outlays
Total:
Budget authority..
Outlays
1983
actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
67
162
228
312
344
403
493
-33
375
-113
298
-185
344
403
493
-33
375
-113
298
-185
3,154
2,657
3,765
3,565
3,395
3,185
4,225
4,005
3,035
2,805
546
546
470
470
196
196
161
161
165
165
117
117
31
31
16
261
-2
10
-35
75
75
15
15
2,074
1,641
650
2,157
1,890
1,668
1,656
1,632
1,712
1,672
6,563
5,354
5,532
6,726
6,265
5,671
6,502
6,031
5,203
4,621
increase of $53 million over 1984. For breeder technology research,
$308 million is proposed in 1985. With the termination of the
Clinch River breeder reactor, both 1984 and 1985 will be a period of
reorientation for the breeder program. The program is now expected to focus on developing a technology base for the future development and funding of commercial plants by U.S. industry.
For supporting energy research programs, the budget includes
$669 million in budget authority in 1985, an $89 million increase
over the 1984 level. These are programs where the government
clearly has a key role to play. They support energy-related research at major universities and the national laboratories in the
physical, biological, environmental and engineering sciences. Their
goal is to provide fundamental scientific knowledge and a broad-
5-42
THE BUDGET FOR FISCAL YEAR 1985
ened engineering technology data base for future nuclear and nonnuclear technology development.
The Federal Government's direct production activities include
enriching uranium in government-owned plants primarily for use
in nuclear power reactors; providing for the permanent disposal of
commercial nuclear waste; producing and selling oil and gas from
the naval petroleum reserves; and generating and transmitting
electric power at the Tennessee Valley Authority and the five
power marketing agencies.
Receipts from the sale of uranium enrichment services to foreign
and domestic customers are expected to match program costs in
1985.
The commercial nuclear waste program provides for the permanent disposal of commercial nuclear waste. At the proposed level of
$328 million in budget authority in 1985, the program will continue
necessary steps leading to the development, construction, and operation of a repository for high-level radioactive waste from commercial nuclear power plants by the end of this century. The program
is financed by a fee on electricity generated by nuclear power.
Receipts collected by the nuclear waste fund are estimated to
exceed budget authority for the program by $50 million in 1985.
While receipts can exceed budget authority or outlays for this
program in any one year, they are expected to equal outlays
through 1998, when a waste repository is scheduled to be available.
The budget assumes that the Federal government will receive
$1.3 billion in 1985 from the oil and gas produced at Elk Hills,
California and Teapot Dome, Wyoming and sold to refineries at
competitive bid. After deducting expenditures needed to operate
these oil fields, net receipts from the naval petroleum reserve
program are expected to be $1.0 billion in 1985, in line with their
level in 1984.
Finally, there is a reduction of $223 million in budget authority
from 1984 levels for the Tennessee Valley Authority (TVA) and the
five power marketing agencies. Of this amount, $107 million is due
to a decrease in Federal borrowing to finance the construction of
new electric power generating facilities of the TVA. The balance of
the reduction primarily reflects completion of current electricity
transmission construction projects of the power marketing agencies
and a slowdown in the pace of new construction. Partially offsetting these decreases are increased costs for power to meet contractual sales agreements.
The budget provides subsidies for synthetic and other non-conventional fuel production, primarily through the Synthetic Fuels Corporation. The Corporation estimates that it will award $10.3 billion
in price and loan guarantees in 1984 and $4.4 billion in 1985. The
immediate budget impact of this activity is expected to be outlays
ENERGY
5-43
of $166 million in 1985, up from $73 million in 1984. Outlays
resulting from this program may increase above these estimates,
depending on developments in the world oil market, the terms and
conditions agreed to by the Corporation, and other factors.
Energy conservation.—The budget proposes a total of $382 million in budget authority and $410 million in outlays in 1985 for
programs in this subfunction. Of these outlays, $174 million is
estimated for energy conservation research and development, a
23% increase over the 1984 level of $142 million. These programs
provide Federal support for work on methods to increase the efficient use of energy in buildings, transportation and industrial processes.
Market forces continue to be the most promising way to stimulate sound, economically efficient energy conservation. This is demonstrated by the fact that the U.S. economy today needs 30% less
oil and gas to produce a dollar's worth of output than it did ten
years ago when oil prices first started to rise. The energy conservation R&D programs proposed in the budget are designed to complement the efforts that the private sector undertakes in response to
market forces.
In addition to this increased funding for R&D, the energy conservation subfunction includes $206 million in outlays in 1985 for
State and local government energy grant programs. This money is
used to insulate school buildings, hospitals, and the homes of low
income families.
Beginning in 1985, these programs are proposed to be financed
with monies recovered by the Government from petroleum pricing
violations under the price control program in instances where the
overcharged parties cannot be identified. Legislation is proposed to
establish a fund in the Department of Health and Human Services
(HHS). Monies in the fund will be allocated to the DOE energy
conservation grant programs noted above and to an HHS program
which provides help to the poor in paying their fuel bills. Outlays
from the fund for the HHS low income energy assistance program
are included in the budget in the income security function.
Emergency energy preparedness.—Administration policy for dealing with oil import disruptions is to rely on market forces rather
than Government allocation and price controls. That policy has
been tested during past disruptions in other countries. It has
worked and avoided the shortages and gasoline lines which accompanied Government fuel allocation and price controls in this country.
To augment market forces, the Federal Government is developing the strategic petroleum reserve. Including off-budget amounts, a
total of $2.0 billion in outlays is proposed for the program in 1985,
compared to $2.4 billion in 1984. The 1985 request provides on-
5-44
THE BUDGET FOR FISCAL YEAR 1985
budget funding for construction of storage facilities needed to complete the 750 million barrel system. It also provides off-budget
funding for the oil to fill the reserve at a rate of 145,000 barrels per
day in 1985.
This fill rate is more moderate than the 186,000 barrel per day
rate planned for 1984. It will nonetheless allow the reserve to
expand from a total of 429 million barrels of oil in storage at the
end of 1984 to 482 million at the end of 1985. Thus, even greater
security will be provided against a wide range of possible supply
disruptions.
Energy information, policy, and regulation.—Budget authority for
energy information, policy and regulation is estimated to be $735
million in 1985. Included in this total is $468 million, equal to the
1984 level, to support the work of the Nuclear Regulatory Commission and its efforts to improve the effectiveness and efficiency of its
regulations.
This subfunction also includes, for the DOE, the operating expenses of the Federal Energy Regulatory Commission and the
Energy Information Administration, as well as the DOE's general
administrative expenses. Budget authority for programs in this
subfunction is down $29 million in 1985, due to reduced regulation,
increased licensing fees and improved management efficiency.
Credit programs.—The accompanying table summarizes Federal
credit activities in the energy function. The Federal Financing
Bank (FFB) finances a substantial amount of credit activity in this
function as off-budget direct loans. The FFB will provide continued
support to the TVA, Rural Electrification Administration (REA),
and other programs in 1985.
TVA leases nuclear fuel from the Seven States Energy Corporation. The Corporation borrows from the FFB to finance its costs,
with TVA as the guarantor. Compared to presentations made in
previous years, the credit program table in this function shows a
sharp decrease in this credit activity. This decrease is due to an
accounting change that excludes rollovers of existing loans from
new direct loans. Direct loan obligations of $165 million in 1984
and $88 million in 1985 are expected to be financed through the
FFB.
REA provides direct loans and guarantees of loans from the FFB
for the construction and operation of rural electric and telephone
utilities. Total REA loans outstanding are estimated to be $37.4
billion at the end of 1984. The reduction in the annual rate of new
loans from $5.8 billion first estimated for 1983 to $4.5 billion actually made in 1983 and estimated for 1984 is due to lower than
expected demand for electricity and a surplus of electric generating
capacity. A continuation of that trend, coupled with an expectation
5-45
ENERGY
of increased reliance on private financing by rural electric systems,
allows for the further reduction to $1.9 billion for 1985. Legislation
is being proposed to fund REA administrative costs with user fees
and to provide REA direct loans at the cost of Treasury borrowing,
thus reducing the subsidy now given under the current 5% interest
rates.
CREDIT PROGRAMS—ENERGY
(In millions of dollars)
Actual
1983
Direct loans:
Alternative fuels production (loans made by the FFB):
Net outlays
Outstandings
Tennessee Valley Authority-.
New obligations
Net outlays
Outstandings
Tennessee Valley Authority (loans made by the FFB)
New obligations 1
Net outlays
Outstandings
Rural electrification and telephone revolving fund:
New obligations 2
Net outlays
Outstandings
Rural electrification and telephone revolving fund (loans
held by FFB): *
Net outlays
Outstandings
Rural electrification and telephone revolving fund (loans
made by the FFB): 2
New obligations
Net outlays
Outstandings
Geothermal and other:
New obligations
Net outlays
Outstandings
Geothermal and other (loans made by the FFB): 1
New obligations
Net outlays
Outstandings
Total, direct loans:
New obligations
Net outlays
Outstandings
Estimate
1984
1985
1986
1987
470
1,356
196
1,552
1,552
1,552
41
-4
259
85
34
293
89
27
319
77
12
331
76
6
338
161
161
1,418
165
165
1,583
1,672
117
117
1,788
31
31
1,819
56
4
575
575
575
1,101 1,100
178
92
130
277
104
9,878 10,155 10,247 10,378 10,556
344
3,468
403
3,871
459
4,330
262
4,592
113
4,705
3,442 3,360 1,325 1,325 1,325
2,657 3,565 3,185 4,005 2,805
18,939 22,504 25,689 29,694 32,499
4
3
16
100
8
45
10
8
24
40
36
61
40
36
97
40
33
130
15
100
10
0
4,848 4,720 2,118 2,134 2,047
3,818 4,888 4,159 4,577 3,167
34,908 39,796 43,955 48,531 51,698
5-46
THE BUDGET FOR FISCAL YEAR 1985
CREDIT PROGRAMS—ENERGY—Continued
(In millions of dollars)
Actual
1983
Guaranteed loans:
Biomass energy development:
Net change
Outstandings
Rural electrification and telephone revolving fund:
Net change
Outstandings
Synthetic Fuels Corporation-.
New commitments
«
Net outlays
Outstandings
Geothermal and other:
New commitments
Net change
Outstandings
Total, guaranteed loans-.
New commitments
Net change
Outstandings
Estimate
1984
1985
1987
1986
45
45
166
211
181
392
54
445
-26
419
142
862
5
867
10
877
20
897
29
926
4,098
247
247
2,400
786
1,033
1,055
2,088
1,099
3,187
78
42
75
26
22
98
41
33
131
45
-69
31
45
118
937
4,098
421
1,358
2,478
1,019
2,377
26
1,151
3,527
41
1,135
4,663
Total credit budget (new obligations and new
commitments)
4,893
8,818
4,596
2,160
2,088
1
These are commitments made by the agency to guarantee loans that the FFB will disburse. In effect, they are commitments for off-budget
direct loans, and are counted as such in the credit budget. Policy responsibility for these loans rests with the guaranteeing agency.
2
The direct lending activities of the Rural Electrification Administration are financed by the Federal Financing Bank (FFB). Certificates of
beneficial ownership (CBO's) are issued by the REA. According to law, these certificates are backed by loans that the agency continues to
service. REA guarantees the CBO's, sells them to the FFB, and repurchases them upon maturity. FFB net outlays for REA represent acquisition of
CBO's less repurchases by REA. Increases in the volume of sales of CBO's are added to FFB direct loan outstandings, while the REA direct loan
outstandings decrease by the amount of CBO's sold to the FFB.
Tax expenditures.—To encourage energy exploration and production, the tax code permits certain capital costs to be deducted as
current expenses rather than amortized over the useful life of the
property. In addition, extractive industries are generally permitted
to use percentage depletion rather than cost depletion.
A variety of residential tax incentives stimulate energy conservation and encourage conversion to energy sources other than oil or
natural gas. Business investments in specified energy property are
also eligible for special tax credits, in addition to the normally
available investment tax credit.
Tax expenditures for energy are listed in the accompanying table
and discussed in more detail in Special Analysis G.
5-47
ENERGY
TAX EXPENDITURES FOR ENERGY
(Outlay equivalents; in millions of dollars)
Estimates
Description
1983
Expensing of exploration and development costs-.
Oil and gas
Other fuels
Excess of percentage over cost depletion:
Oil and gas
Other fuels
Capital gains treatment of royalties on coal
Exclusion of interest on State and local industrial development bonds for certain
energy facilities
Residential energy credits-.
Supply incentives
Conservation incentives
Alternative, conservation and new technology credits:
Supply incentives
Conservation incentives
Alternative fuel production credit
Energy credit for intercity buses
Total (after interactions), energy ]
1
1984
1985
2,335
30
1,815
30
2,255
35
1,720
430
270
1,625
440
295
1,565
475
320
190
185
175
445
335
540
370
745
390
320
85
15
15
255
45
35
15
4,015
280
35
45
15
4,500
4,395
The estimate of total tax expenditures for this function reflects interactive effects among the individual items. Therefore the estimates cannot
simply be added.
5-48
THE BUDGET FOR FISCAL YEAR 1985
NATURAL RESOURCES AND ENVIRONMENT
Federal natural resources and environment programs manage
public lands and resources for their preservation, conservation, and
economic development; work with State governments to ensure a
clean environment; and encourage increased knowledge and understanding of the environment.
Pollution control and abatement—Efforts to control pollution of
air, water, and land are carried out through direct Federal programs and through financial assistance to State and local governments.
Regulatory, enforcement, and research programs.—Proposed
budget authority in 1985 for regulatory, enforcement, and research
programs is 8% higher than in 1984. This budget provides for an
aggressive enforcement program; initiatives to identify and remove
dioxin contamination and to establish Federal emission limits on
toxic air pollutants; and the acceleration of regulation and issuance
of permits for storage and disposal of hazardous wastes.
Research will be focused on knowledge needed to develop effective regulations within statutory deadlines, and on projects of significant environmental concern. Budget authority for the Government-wide acid rain research effort will be increased by 100%, to
$55 million in 1985. In addition to the research effort, a program to
restore lakes with high acid levels will be initiated through the
Fish and Wildlife Service, and a new pollution control technology
that cheaply reduces sulfur dioxide emissions will be demonstrated
through a joint Federal-private sector initiative.
Hazardous substance response fund.—The hazardous substance
response trust fund finances clean-up of abandoned hazardous
waste sites and hazardous chemical spills. Budget authority in 1985
is $640 million, a 39% increase over 1984. This will support a
significant increase in the number of waste sites that can be
cleaned.
Sewage treatment plant construction grants.—This program assists State and local governments in building sewage treatment
systems. The $0.5 billion decrease in outlays from 1983 to 1984
reflects completion of expenditures from grants approved before
1982. The 1985 budget continues budget authority at the authorized
level of $2.4 billion in recognition of the 1982 enactment of program reforms.
Water resources.—Most of the funds for water resources are for
continued construction of projects started in previous years. All
corps of engineers and bureau of reclamation projects are budgeted
5-49
NATURAL RESOURCES AND ENVIRONMENT
NATIONAL NEED: USING AND PRESERVING NATURAL RESOURCES AND PROTECTING THE
ENVIRONMENT
(Functional code 300; in millions of dollars)
Major missions and programs
1983
actual
1984
estimate
1985
estimate
1986 1987
estimate
estimate
BUDGET AUTHORITY
Pollution control and abatement:
Regulatory, enforcement and research programsHazardous substance response fund
Oil pollution funds
Sewage treatment plant construction grants
Offsetting receipts
Subtotal, pollution control and abatement.
Water resources:
Construction, operations, and maintenance, etc.,
Offsetting receipts:
Existing law
Proposed legislation (navigation user fees)...
Subtotal, water resources..
Conservation and land management:
Management of national forests, cooperative forestry and
forestry research
Management of public lands
Mining reclamation and enforcement
Conservation of agricultural lands
Other
Offsetting receipts
Subtotal, conservation and land management..
Recreational resources:
Federal land acquisition: *
Existing law
Proposed legislation
Urban park and historic preservation funds..
Operation of recreational resources
Offsetting receipts:
Existing law
Proposed legislation (user fees)
Subtotal, recreational resources
Other natural resources:
Program activities
Offsetting receipts:
Existing law
Proposed legislation
Subtotal, other natural resources..
Total, budget authority
1
1,028
210
9
2,430
1,088
460
9
2,430
-11
1,177
640
9
2,400
-51
1,168
475
9
2,400
-56
1,166
475
9
2,400
-86
3,677
3,976
4,175
3,996
3,964
4,742
3,885
3,975
4,283
4,480
-137
-169
-170
-200
-222
-200
-241
-200
4,605
3,716
3,605
3,861
4,039
2,058 1,692 1,751 1,746 1,739
434
455
441
433
464
379
342
361
377
274
442
614
448
446
599
285
295
274
280
319
-1,831 -2,597 -2,990 -3,291 -3,635
1,883
801
285
32
0
27
8
197
-30
197
-30
197
-30
91
1,243
35
1,148
1,219
1,230
1,245
-55
-60
-16
-65
-23
-68
-23
-72
-23
1,581
1,394
1,298
1,305
1,317
1,560
1,614
1,509
1,521
1,514
-13
-11
-36
-9
-35
-12
1,547
1,603
-32
-4
1,473
1,476
1,467
13,294 11,489
Includes budget authority from State grants financed by the land and water conservation fund.
-356
10,837 10,630 10,932
5-50
THE BUDGET FOR FISCAL YEAR 1985
NATIONAL NEED: USING AND PRESERVING NATURAL RESOURCES AND PROTECTING THE
ENVIRONMENT—Continued
(Functional code 300; in millions of dollars)
Major missions and programs
OUTLAYS
Pollution control and abatement:
Regulatory, enforcement and research programsHazardous substance response fund
Oil pollution funds
Sewage treatment plant construction grants
Offsetting receipts
Subtotal, pollution control and abatement.
Water resources:
Construction, operations, and maintenance, etc..
Offsetting receipts:
Existing law
Proposed legislation (navigation user fees)...
Subtotal, water resources..
1983
actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
1,129
148
4
2,983
1,099
340
9
2,500
-11
1,178
535
9
2,500
-51
1,170
540
9
2,340
-56
1,180
495
9
2,210
-86
4,263
3,937
4,171
4,003
3,808
4,038
4,376
4,200
4,150
4,380
-137
-169
-170
-200
-222
-200
-241
-200
3,901
4,207
3,830
3,728
3,939
1,835 1,763
453
440
210
253
634
568
327
288
-2,597 -2,990
1,789
428
300
491
295
-3,291
1,738
429
346
463
293
-3,635
Conservation and land management:
Management of national forests, cooperative forestry and
forestry research
Management of public lands
Mining reclamation and enforcement
Conservation of agricultural lands
Other
Offsetting receipts
1,823
489
163
576
283
-1,831
Subtotal, conservation and land management-
1,503
82
6
33
2
1
3
-366
330
59
1,121
385
95
1,203
284
52
1,254
242
23
1,243
230
2
1,236
-55
-60
-16
-65
-23
-68
-23
-72
-23
1,454
1,608
1,502
1,417
1,374
1,561
1,700
1,557
1,530
1,516
-13
-11
-36
-9
-35
-12
1,548
1,689
-32
-4
1,521
1,485
1,469
12,669
12,302
11,346
10,645
10,224
Recreational resources:
Federal land acquisition 1
Urban park and historic preservation funds
Operation of recreational resources
Offsetting receipts-.
Existing law
Proposed legislation (user fees)
Subtotal, recreational resources
Other natural resources:
Program activities
Offsetting receipts:
Existing law
Proposed legislation
Subtotal, other natural resourcesTotal, outlays
* $500 thousand or less.
1
Includes outlays from State grants financed by the land and water conservation fund.
NATURAL RESOURCES AND ENVIRONMENT
5-51
to continue on schedule. Even so, outlays for construction decline
because many projects are being completed.
Two new construction starts are budgeted for the Corps of Engineers and two for the Bureau of Reclamation. State and local
governments and private project sponsors will be expected to pay a
greater share of new project costs than has been the case in the
past.
The 1985 budget includes offsetting receipts of $200 million in
navigation user fees in anticipation of legislation to recover capital
and operating expenses of deep draft and inland waterway projects.
Conservation and land management—Changes in these programs
reflect the administration's efforts to improve the management and
productivity of the national forests and public lands, to streamline
mineral leasing programs, and to place maximum responsibility
with the States for coal surface mining regulatory and reclamation
programs.
Management of national forests, cooperative forestry, and forestry
research.—Proposed budget authority in 1985 for direct management of national forests is $1.0 billion. This amount provides for an
increase in planned program levels in 1985 of $17 million, after
adjusting for funding for forest fire fighting and for budgetary
accounting changes.
The productivity of national forest management will be improved
by carefully controlling costs, adjusting management procedures,
and paying close attention to benefit-cost relationships. The objective is to produce timber, recreation, and other products or services
at the lowest unit costs. Careful attention will be given to both
market values of resources and non-market values, such as water
quality, and their associated costs.
Planned timber sales from national forest lands in 1985 of 11.2
billion board feet (BBF), together with the 40 BBF sold but still
uncut at the end of 1984, should be adequate to respond to anticipated increases in housing construction in 1985 and subsequent
years. Receipts from the harvest of timber are estimated at over
$1.0 billion in 1985, 25% of which is paid under current law to
States for schools and roads in the counties of origin. Legislation
will be proposed to compute these payments on a tax equivalent
basis in 1985.
Budget authority of $103 million in 1985 for forestry research
programs will continue to address high-priority projects while
limiting Federal funding for research projects that directly support
private industry.
Budget authority for contributions to State and private forestry
programs will be reduced from $61 million in 1984 to $26 million in
1985. Funding will be retained to provide for national data collec420-000 O - 84 - 12 : QL 3
5-52
THE BUDGET FOR FISCAL YEAR 1985
tion, information dissemination, and limited but specialized technical assistance to States on national problems. General grants to
States for fire protection and forestry technical assistance are not
proposed for 1985.
Management of public lands.—These programs provide for administration of approximately 310 million surface acres of public
lands for multiple use and about 370 million acres of federally
owned subsurface mineral rights.
Streamlined procedures and management initiatives permit
slightly reduced budget authority in 1985 without reducing products or services. Emphasis will be placed on mineral leasing, realty
transfers, data support systems, and renewable resource activities
such as those affecting water, timber, or wildlife, including hazardous waste assessment.
Mining reclamation and enforcement.—An increase of $27 million
in budget authority is proposed for State grants for regulation of
the surface effects of coal mining and for approximately 375 projects to reclaim abandoned mined lands in 23 States. A part of this
increase is offset by changes in other Federal activities.
Conservation of agricultural lands.—Budget authority for these
programs declines 27% in 1985. Technical and financial assistance
for conservation will concentrate on high priority soil and water
resource problems. A greater role is envisioned for State and local
governments and landowners in financing and pursuing good soil
and water conservation practices on private lands.
Recreational resources.—The administration's first priority continues to be the improvement and maintenance of existing nationally significant recreation resources such as national parks and
wildlife refuges. Since the goal of correcting for years of past
neglect of existing parks and refuges is nearing completion, the
administration is proposing $158 million of budget authority for
acquisition of additional park and refuge land in 1985. The budget
also includes $8.0 million in budget authority for State grants for
wetland conservation in support of a comprehensive legislative
initiative to protect wetlands and waterfowl resources. Grants to
States for outdoor recreation and for historic preservation are not
funded in 1985. These needs can be met through State and local
resources and the positive effect of Federal tax incentives on private investment in historic buildings.
The administration again proposes to increase fees for recreational use of national parks, forests, and related facilities, so that
those who use them will pay more for their upkeep and maintenance than those taxpayers who do not use them. For 1985 these
receipts, including some recreation receipts not counted in this
NATURAL RESOURCES AND ENVIRONMENT
5-53
subfunction, are estimated to be about $100 million, $48 million
above 1984.
Operation of recreational resources.—An important administration initiative in the operation of recreational resources is a 5-year
effort to improve maintenance and to ensure the quality and accessibility of the national parks to all Americans. The administration
proposes $257 million in budget authority for construction and
repair of the national park system, including $157 million for the
national park restoration and improvement program and $100 million for park road improvements funded through the highway trust
fund. Additional 1985 budget authority of $558 million is proposed
to operate and maintain the 334 parks, covering 75 million acres, of
the national park system.
Other natural resources.—These activities focus on understanding, conservation, and careful husbandry of the Earth's resources,
structure, and environment through research and development and
information dissemination programs. They comprise elements of
the Geological Survey, the Bureau of Mines, and the National
Oceanic and Atmospheric Administration (NOAA).
Requested 1985 budget authority of $118 million for the Bureau
of Mines is less than requested in prior years because of reductions
in the mineral institute program, which is not authorized in 1985,
and in applied research, which should be the responsibility of the
mining industry.
Funding for NOAA programs in this category reflects a decrease
of approximately 10% in budget authority from $1,011 million in
1984 to $913 million in 1985. Reductions are proposed for State and
industry financial assistance and lower priority research and service programs. Estimated outlays for 1985 are $954 million. This
funding maintains the priority life-safety, resource management
and development programs, and atmospheric and oceanic research
and services. Additional funding is included in later years to allow
NOAA to replace obsolete equipment and to upgrade its operations
related to its severe weather detection and warning mission.
Offsetting receipts.—Offsetting receipts from the entire natural
resources and environment function—primarily from user fees,
sales of products, rents and royalties—are expected to rise from
$2.9 billion in 1984 to $3.5 billion in 1985.
Management improvements.—Management improvements are
proposed that will reduce outlays in this function by more than
$100 million over the next three years, primarily through consolidating and streamlining administrative activities.
5-54
THE BUDGET FOR FISCAL YEAR 1985
Credit programs.—The 1985 credit budget in this function is proposed to increase $20 million over 1984 in programs operated by
the Bureau of Reclamation. These direct loans are made to State
and local governmental entities for construction and rehabilitation
of irrigation systems and for storage of municipal or industrial
water supplies.
CREDIT PROGRAMS—NATURAL RESOURCES AND ENVIRONMENT
(In millions of dollars)
Actual
1983
Direct loans:
Water resources and other loan programs:
New obligations
Net outlays
Outstandings
Total credit budget (new obligations)
Estimate
1984
1985
1986
1987
96
21
371
54
74
445
66
69
514
28
19
533
9
5
528
96
54
66
28
9
Tax expenditures.—As an incentive to encourage production, certain capital costs associated with exploration and development of
nonfuel minerals may be expensed rather than depreciated over
the life of the asset. In addition, most nonfuel-mineral extractors
use percentage depletion, rather than cost depletion. Percentage
depletion is more generous than cost depletion in that total deductions are not limited to the cost of the investment. The total
estimates for these two provisions are $65 million and $625 million,
respectively, in 1985.
Interest on State and local government debt issued to finance the
pollution control and waste disposal facilities of private firms is
excluded from income subject to tax; the resulting estimate for
1985 is $1.3 billion.
A special 25% tax credit is available for expenditures made to
restore certain historic structures. The 1985 estimate of $470 million for this provision includes the remaining tax subsidies from
special depreciation treatment available under prior law.
Special benefits are provided to the timber and iron industries in
order to encourage production. The gains on the cutting of timber
and royalties from iron ore deposits are taxed at capital gains
rates, which are lower than rates on ordinary income. For 1985,
this results in a tax expenditure of $1.1 billion and $40 million,
respectively. Private forestry is additionally encouraged because a
limited amount of reforestation expenditures is eligible for special
tax credits and write-offs. This tax expenditure is $55 million in
1985.
Tax expenditures for natural resources and environment total an
estimated $3.6 billion in 1985.
AGRICULTURE
5-55
AGRICULTURE
Federal agriculture programs are intended primarily to limit
economic harm to farmers from price fluctuations and to maintain
farm income.
The administration's farm program for 1985 would continue the
price support and credit programs offered over the past several
years. In light of the greatly reduced rate of inflation in farm
production costs, legislation has been introduced to eliminate the
automatic increase in target prices for wheat, feed grains, cotton,
and rice for the 1985 crop year. This would bring production incentives down to levels that prevailed prior to recent sharp increases
in price supports mandated in the 1981 Farm Bill. The result will
be a better supply/demand balance for most major agricultural
commodities and reduced subsidy payments.
In 1983, over $35 billion of Federal resources (consisting of total
on- and off-budget authority in this function) went to farmers. Net
farm cash income is expected to reach a record level of over $42
billion in 1984. The higher income will enable farmers to repay more
of their loans and result in lower target price deficiency payments in
1984. As a result, total 1984 agriculture outlays are expected to
decline by more than 50% from 1983. The 1985 increase in total
outlays for the agriculture function of $3.6 billion is due mostly to
increased cash payments to farmers to meet the target prices set by
law, increased commodity net lending, and potential nonrepayments
of foreign debt under the CCC export credit guarantee program.
Farm income stabilization.—Reducing the economic risk in farming is the major Federal involvement in the agricultural sector,
representing 88% of estimated 1985 outlays in the agriculture function.
Commodity price support and related programs.—Price support
and related programs were created to stabilize, support, and protect farm income and prices, and to facilitate the orderly distribution and maintenance of a balanced and adequate supply of agricultural commodities and their products. The Commodity Credit
Corporation (CCC) provides price support to producers of agricultural commodities through loans, purchases, payments, and other
means.
5-56
THE BUDGET FOR FISCAL YEAR 1985
NATIONAL NEED: IMPROVED AGRICULTURE
(Functional code 350; in millions of dollars)
Major missions and programs
1984
estimate
1983
actual
1985
estimate
1986
estimate
1987
estimate
BUDGET AUTHORITY
Farm income stabilization:
Commodity price support and related programs:
Existing law
Proposed legislation
Crop insurance
Agricultural credit
Other programs:
Existing law
Proposed legislation
Subtotal, farm income stabilization..
Agricultural research and services:
Research programs
Extension programs
Marketing programs:
Existing law
Proposed legislation
Animal and plant health programs:
Existing law
Proposed legislation
Economic intelligence
Other programs
Offsetting receipts
Subtotal, agricultural research and services.
Total, budget authority
27,432
529
1,306
2 0 10,057
1
9,800
-1,202 -1,460
410
411
368
1,768
1,216
1,090
63
54
29,330
9,750
1,750
459
1,118
2,442
53
-2
10,363
10,018
53
-2
9,628
712
329
752
334
752
299
751
299
747
299
141
133
132
-2
132
—2
131
-2
21
8
23
7
167
182
-114
1,698
184
196
-87
1,786
255
-27
190
215
-97
1,717
255
-33
189
214
-97
1,707
255
-43
188
213
-97
1,690
31,028
4,227
12,080
11,725
11,318
53
_2
For several years prior to 1983, good growing conditions resulted
in unexpected increases in farm crop production. The increased
supply coinciding with a drop in expected demand caused large
surpluses of farm goods and low prices. However, the 1983 payment-in-kind (PIK) program plus the recent drought temporarily
slowed the growth in surplus supply of some crops. Thus, commodity price support outlays are expected to decline from $18.9 billion
in 1983 to $6.8 billion in 1984. Outlays of $1.3 billion in 1984 and
$2.0 billion in 1985 will be made for purchases of dairy products for
price support purposes and the new program of payments to dairy
farmers for reducing production.
If present programs were unchanged, budget outlays for price
supports would increase to $11.0 billion in 1985 and $10.7 billion in
1986. However, the administration's proposed target price freeze
will reduce outlays by more than $6 billion over 5 years, beginning
in 1985.
The CCC also provides assistance in expanding U.S. agriculture
markets abroad. The value of agricultural exports in 1983 was
$34.8 billion, while imports totaled $16.4 billion, resulting in a
5-57
AGRICULTURE
NATIONAL NEED: IMPROVED AGRICULTURE—Continued
(Functional code 350; in millions of dollars)
Major missions and programs
OUTLAYS
Farm income stabilization:
Commodity price support and related programs:
Existing law
Proposed legislation
Crop insurance
Agricultural credit
Other programs:
Existing law
Proposed legislation
Subtotal, farm income stabilization..
Agricultural research and services:
Research programs
Extension programs
Marketing programs:
Existing law
Proposed legislation
Animal and plant health programs.Existing law
Proposed legislation
Economic intelligence
Other programs
Offsetting receipts
Subtotal, agricultural research and services.
Total, outlays
ADDENDUM
Off-budget Federal entity:
Federal Financing Bank:
Agricultural credit:
Budget authority
Outlays
1983
actual
1984
estimate
18,858
6,765
330
1,408
635
1,462
32
1985
estimate
65
1986
estimate
1987
estimate
10,962 10,665 10,300
-120 -1,985 -1,725
327
409
366
1,215
1,366
1,255
55
-2
10,354
10,250
54
-2
20,628
8,927
-2
12,599
690
323
738
333
744
305
738
299
747
299
121
128
132
-2
132
-2
131
-2
21
3
25
7
159
169
-114
183
196
-87
255
-27
189
221
-97
255
-33
189
215
-97
255
-43
188
212
-97
1,578
1,766
1,720
1,695
1,690
22,206
10,693
14,319
12,048
11,940
4,160
695
6,934
1,539
4,394
237
1,314
64
459
74
positive trade balance of $18.4 billion. The sheer magnitude of
these exports mandates that reliance on free-market commercial
exports continues to be the driving force in the success of U.S.
agricultural trade. Nevertheless, export credit assistance is provided by CCC through direct loans and loan guarantees for the
relatively small portion of export sales that could not occur without Federally subsidized credit. While CCC export credit affects
only 14% of total agricultural exports, $12.7 billion in such assistance will be provided from 1981 through 1984. Total new export
credit (including direct and guaranteed loans) planned for 1985 is
$3.2 billion. Additional export assistance is provided through Public
Law 480 food aid and the Export-Import Bank, shown in the international affairs function.
5-58
THE BUDGET FOR FISCAL YEAR 1985
Crop insurance.—The Federal Crop Insurance Corporation offers
insurance to producers against crop losses from natural hazards.
All-risk crop insurance is now available in all 3,000 agricultural
counties. Insurance in force is expected to reach $7.8 billion in
1985, an increase of $2.9 billion over 1984. As the crop insurance
program continues to expand, the Farmers Home Administration
(FmHA) emergency loan program will be reduced correspondingly.
Outlays depend primarily on the weather, the number of participants, and crop prices.
Agricultural credit.—The U.S. relies primarily on private credit
for agriculture, as it does in other sectors of the national economy.
However, the Federal Government provides 16% of total farm
credit, primarily for family farmers who cannot obtain credit elsewhere and for disaster mitigation. The Farmers Home Administration has lent $47 billion during the last 10 years. In 1983 alone,
new direct loan obligations totaled $3.0 billion, with 18% of this
amount going for disaster loans. At the end of 1983, outstanding
agriculture credit insurance fund direct loans totaled $24.4 billion.
The 1985 new loan level of $3.5 billion is $1.1 billion less than in
1984 because of an unanticipated one-time increase in 1984 emergency disaster loans in response to the recent drought and a 1-year
reopening of the economic emergency loan program. Loans in 1985
are expected to return to normal levels.
Outlays arising from direct loans in the agricultural credit insurance fund are financed through the Federal Financing Bank and
are included in the off-budget deficit.
Agricultural research and services.—Research helps to increase
agricultural productivity, and it expands knowledge of human nutrition and food safety. The research program will place higher
priority on long term basic research. Applied research and development with early profit potential will receive reduced Federal effort,
since this is more appropriately financed by private industry. A
major increase in outlays for biotechnology research ($28.5 million)
is proposed for 1985, as this represents an important area of longterm basic research.
Marketing programs.—To aid in the orderly marketing of farm
products, the Federal Government provides a variety of services
such as grain inspection and weighing; tobacco inspection; cotton
classing; and meat, poultry, and livestock grading. Most of these
services are now provided on a user-fee basis. Legislation authorizing user fees for marketing activities is expected to reduce outlays by $2 million a year, beginning in 1985.
Animal and plant health.—The Federal Government carries out
a number of programs to prevent the introduction and spread of
5-59
AGRICULTURE
CREDIT PROGRAMS—AGRICULTURE
(In millions of dollars)
Actual
1983
Direct loans:
Commodity price support and related loans (CCC):
New obligations
Net outlays
Outstandings
Agricultural credit insurance fund(FmHA):
New obligations*
Net outlays
Outstandings
Agricultural credit insurance fund (loans held by
FFB): 1
Net outlays
Outstandings
Total, direct loans:
New obligations.
Net outlays
Outstandings
Guaranteed loans-.
Export credit (CCC):
New commitments
Net change
Outstandings
Agricultural and emergency credit (FmHA):
New commitments
Net change
Outstandings
Total, guaranteed loans:
New commitments
Net change
Outstandings
Total credit budget (new obligations and new
commitments)
Estimate
1984
1985
1986
1987
13,915
3,522
16,007
6,147
-7,323
8,684
6,124
589
9,272
6,700
-322
8,950
6,400
-250
8,700
3,022
-517
278
4,557
-14
264
3,503
3,451
3,432
24
6
24
6
24
6
695
24,107
1,539
25,646
237
25,884
64
25,948
74
26,022
16,937 10,704
3,701 -5,798
40,392 34,594
9,627
826
35,420
10,151
-258
35,162
9,832
-176
34,986
4,669
1,708
4,357
4,000
2,242
6,599
3,000
546
7,145
3,000
-45
7,100
3,000
-350
6,750
71
-107
1,025
156
-56
969
206
-130
839
206
-52
787
206
-62
724
4,739
1,600
5,382
4,156
2,186
7,568
3,206
416
7,984
3,206
-97
7,887
3,206
-412
7,474
21,676
14,860
12,833
13,357
13,038
1
The direct lending activities of the Farmers Home Administration (FmHA) are financed by the Federal Financing Bank (FFB). Certificates of
beneficial ownership (CBO's) are issued by the FmHA. According to law, these certificates are backed by loans that the agency continues to
service. FmHA guarantees the CBO's, sells them to the FFB, and repurchases them upon maturity. FFB net outlays for REA represent acquisition
of CBO's less repurchases by FmHA. Increases in the volume of sales of CBO's are added to FFB direct loan outstandings, while the FmHA's
direct loan outstandings decrease by the amount of CBO's sold to the FFB.
plant and animal pests and diseases that can cause severe losses in
crop yields or livestock. The 1985 budget provides for user fees to
offset partially brucellosis control program costs, which will reduce
net Federal outlays from $69.5 million in 1984 to $36.3 million in
1985.
Management
improvement.—Management
improvements
are
being implemented in the Department of Agriculture that are expected to reduce outlays by $149 million in 1985, primarily through
modernizing cash management procedures and consolidating administrative services.
5-60
THE BUDGET FOR FISCAL YEAR 1985
Tax expenditures.—Agriculture is promoted by several tax expenditures. The tax code permits farmers to immediately deduct
various expenses, such as those for feed, fertilizer, and planting,
rather than capitalizing them, as is the normal rule. In addition,
the sale of certain farm assets may qualify for capital gains treatment rather than ordinary income. The 1985 estimates for these
two provisions are $610 million and $785 million, respectively. The
tax expenditures for agriculture are expected to total $1.3 billion in
1985.
COMMERCE AND HOUSING CREDIT
5-61
COMMERCE AND HOUSING CREDIT
There is a recognized national need to promote the private financing of mortgage credit and to support an environment in
which there are fair and equitable opportunities for business development and growth. Commerce and housing credit programs supplement private sector financing of the business and housing sectors. Assistance is provided for mortgage credit, deposit insurance,
the Postal Service, and other forms of commerce, including small
business.
Direct loan or loan guarantee programs make up most of the
Federal activity in this function. The credit programs tables within
this section reflect the total credit budget activity of these programs. The 1985 budget proposes $6.0 billion in direct loan obligations and $44.2 billion in guaranteed loan commitments.
Housing activity is expected to continue at its current strong
level in calendar years 1984 and 1985. Housing starts, which
reached 1.7 million units in 1983, are expected to grow to 1.8
million units in 1984 and to exceed 1.9 million units in 1985.
To ensure that the private sector has the opportunity to compete
with the Government and Government-sponsored enterprises in the
secondary mortgage market, the administration has made a
number of regulatory and administrative changes that will eliminate unnecessary barriers to the issuance of private mortgagebacked securities (MBSs). In addition, the administration supports
further legislative changes to the Securities Act and the Securities
Exchange Act, which would remove obstacles that have restricted
private issuers of MBSs in relation to Government or Governmentsponsored agency issuers. Finally, the administration supports
amending the Internal Revenue Code to authorize TIMs (trust for
investments in mortgages), a new type of MBS that will expand the
market for MBSs to a broader range of investors, and to tax the
Federal Home Loan Mortgage Corporation (FHLMC). These
changes have resulted and will result in improved competition, and
allow the entire secondary mortgage market to keep pace with
changes in an increasingly deregulated financial environment. Consistent with these changes, the administration remains committed
to the total privatization of two housing-related, Government-sponsored enterprises—the Federal National Mortgage Association and
the FHLMC. An interagency Cabinet-level group will continue to
pursue this goal. Because they are sponsored by the Federal Government, these two enterprises receive special advantages in the
securities markets that completely private institutions do not have.
5-62
THE BUDGET FOR FISCAL YEAR 1985
NATIONAL NEED: COMMERCE AND HOUSING CREDIT
(Functional code 370; in millions of dollars)
Major missions and programs
1983
actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
BUDGET AUTHORITY
Mortgage credit and thrift insurance:
Mortgage purchase activities (GNMA)
Mortgage credit (FHA)
2
183
500
2,102
120
179
631
2,008
61
178
219
498
1,844
10
209
159
530
2,021
10
1,412
167
566
2,080
10
2,787
2,998
2,749
2,929
4,234
789
879
970
-279
807
-364
776
-332
789
879
692
443
444
1,017
598
569
613
553
211
212
236
249
206
260
186
623
242
5
206
609
234
610
299
615
Subtotal, other advancement of commerce
1,694
1,619
1,631
1,692
1,716
Total, budget authority
5,270
5,496
5,071
5,064
6,394
Housing for the elderly or handicapped
Rural housing programs (FmHA)
National Credit Union Administration
Subtotal, mortgage credit and thrift insurance
Postal Service:
Existing law
Proposed legislation
Subtotal, Postal Service
Other advancement of commerce:
Small business assistance
Technology utilization:
Existing law
Proposed legislation
Economic and demographic statistics
Other
Where use of scarce Federal resources is necessary and justified,
the 1985 credit budget targets these resources specifically to those
groups with the greatest need. This budget ensures the efficient
and effective use of limited Federal credit resources by:
• ensuring a strong private economy by acting only as a lender
of last resort in certain areas;
• targeting rural housing programs to low-income families occupying substandard housing;
• emphasizing assistance to minority and handicapped borrowers through guarantees of loans by the Small Business Administration, with the Government assuming risk for these
borrowers when the market overestimates the risk; and
• maintaining the availability of the Federal Housing Administration mortgage insurance programs while emphasizing improved processing and the absence of rate regulation.
A variety of management reform initiatives related to programs
included in this function are underway or planned. Improvements
in the Department of Commerce, Department of Housing and
Urban Development, and the Small Business Administration include consolidating administrative services; integrating and improving financial accounting and management systems; and evalu-
5-63
COMMERCE AND HOUSING CREDIT
NATIONAL NEED: COMMERCE AND HOUSING CREDIT—Continued
(Functional code 370; in millions of dollars)
Major missions and programs
OUTLAYS
Mortgage credit and thrift insurance:
Mortgage-backed securities (GNMA)
Mortgage purchase activities (GNMA)
Mortgage credit (FHA)
Housing for the elderly or handicapped
Rural housing programs (FmHA)
Federal Deposit Insurance Corporation
Federal Savings and Loan Insurance Corporation..
National Credit Union Administration
Subtotal, mortgage credit and thrift insurance..
Postal Service:
Existing law
Proposed legislation
1983
actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
-153 -189 -225 -278 -328
1,095 1,366
418 1,444
319
-192 -753 -1,157 -1,436 -1,608
800
712
803
803
648
1,830 2,085 1,842 2,012 1,974
-613 -1,424 -1,696 -1,975 -2,220
-453 -700 -1,025 -958 -946
-189 -125
-38
-38
-39
2,125
1,063 -1,177 -1,544 -1,075
807
-364
443
776
-332
879
970
-279
692
909
198
193
208
764
228
197
675
567
243
203
601
610
240
227
589
562
246
275
699
Subtotal, other advancement of commerce..
1,508
1,863
1,613
1,666
1,782
Total, outlays.
4,422
3,805
1,127
564
1,151
200
322
2,163
1,209
4,180
2,801
608
102
1,032
1,028
4,440
1,755
6,112
2,182
3,963
1,853
1,187
1,187
1,142
992
261
182
730
636
525
409
515
390
515
384
4,901
2,259
9,005
4,027
8,669
5,063
2,310
1,679
2,688
2,404
79
8
Subtotal, Postal Service
Other advancement of commerce:
Small business assistance
Technology utilization
Economic and demographic statistics.
Other
89
7
789
444
ADDENDUM
Off-budget Federal entities:
Postal Service:
Budget authority
Outlays
Federal Financing Bank:
Rural housing insurance fund:
Budget authority
Outlays
Small business assistance:
Budget authority
Outlays
Total:
Budget authority..
Outlays
ating specific functions to determine whether they can be accomplished more efficiently by the private sector.
The 1985 budget proposes $5.1 billion in budget authority and
$1.1 billion in estimated budget outlays for commerce and housing
credit. Mortgage credit and thrift insurance programs are the largest portion of the assistance, with $2.7 billion in proposed budget
authority in 1985.
5-64
THE BUDGET FOR FISCAL YEAR 1985
Mortgage credit and thrift insurance.—The most significant contribution the Federal Government can make to both the housing
industry and individual homebuyers is to promote prudent fiscal
and monetary policies that support stable, non-inflationary economic growth and reasonable interest rates. Hence, the focus of
Government mortgage credit programs will be on areas the private
sector does not serve.
Mortgage-backed securities.—The Government National Mortgage
Association (GNMA) supports the mortgage market through guarantees of mortgage-backed securities. For 1984, a new loan guarantee commitment limitation of $68.2 billion has been enacted, and
guarantees are expected to be issued on about $40.0 billion in
securities. These securities are backed by pools of mortgages that
are insured by the Federal Housing Administration, or guaranteed
by the Veterans Administration or the Farmers Home Administration. For 1985, the administration proposes to retain the new commitment limitation at $68.2 billion; about $42.0 billion of securities
are expected to be guaranteed. The credit programs table shows
the new commitment limitation proposed for GNMA guarantees.
Table F-15 of Special Analysis F, "Federal Credit Programs/' shows
the estimated guaranteed loans.
Mortgage purchase activities.—The Housing and Urban-Rural Recovery Act of 1983 repealed the statutory authority for the GNMA
tandem mortgage subsidy programs, which made direct loans at
large losses to the Federal Government. For 1985, the administration proposes that Treasury forgive the debt owed it by GNMA,
and that the remaining fund balances be transferred to the GNMA
management and liquidating functions fund. However, to retain
comparability with prior years, the data in the national needs table
for GNMA mortgage purchase activity exclude the effects of the
debt forgiveness proposal.
Mortgage credit.—Federal Housing Administration (FHA) provides mortgage and loan insurance for families who may be unable
to obtain a mortgage without Federal insurance. FHA mortgage
credit is one of the largest programs in the Federal credit budget.
Many families, particularly first-time homebuyers, can afford
only a low downpayment when purchasing a home. Mortgage lenders, however, are reluctant to make low downpayment loans unless
the mortgages are insured. Although private mortgage insurers
currently insure more mortgages and charge lower premiums than
FHA, some homebuyers—particularly those able to make only very
low downpayments—may be unable to obtain private mortgage
insurance. Thus, these homebuyers require FHA mortgage insurance to purchase a home.
COMMERCE AND HOUSING CREDIT
5-65
In addition, FHA insurance on mortgages is often sought by
mortgage bankers for use in conjunction with GNMA guarantees of
pools of insured mortgages. These GNMA guarantees provide mortgage bankers and other lenders with the means to finance mortgages, using little of their own capital. The administration proposes
to continue the 1984 commitment limitation of $50.9 billion in
1985. However, it is expected that only $40.9 billion of commitments will actually be issued in 1985.
Effective September 1983, premiums for FHA single-family mortgage insurance are being collected in one lump sum at the time of
settlement. Homebuyers have the option of paying the entire
amount out of pocket or including it in the mortgage amount.
Although the level of the insurance premium is only sufficient to
maintain actuarial soundness of the FHA fund, the up-front collections produce a sizeable increase in income to the FHA fund. Thus,
net receipts to the FHA fund are projected at $0.8 billion in 1984
and $1.2 billion in 1985.
The administration is also taking a number of steps to improve
the availability of and reduce the delay in obtaining FHA mortgage
insurance. Processing is being expedited under a new procedure
that bypasses the need for any preliminary commitment approvals.
Approved lenders take responsibility for underwriting and then
submit the mortgage loans to HUD for final insurance endorsement. By 1985, approximately half of FHA's single-family mortgage
insurance is expected to be handled under this new arrangement.
This procedure is one of the administration's major management
initiatives to deliver governmental services more efficiently
through expanded use of the private sector.
As proposed by the administration, the Housing and UrbanRural Recovery Act of 1983 eliminated FHA rate ceilings. This will
reduce delays caused by the need to adjust points that are paid to
the lender at the time of settlement on a home mortgage sale. The
Act also authorizes HUD, on a limited basis, to make FHA insurance available for a number of alternative mortgage instruments,
particularly indexed and adjustable rate mortgages, and to reinsure mortgages originally insured by private mortgage insurers.
Finally, the Act reduced the downpayment required of homebuyers
who are seeking to obtain an FHA insured mortgage for $50,000 or
less. Many of these changes will increase HUD's ability to provide
FHA insurance to potential homebuyers who have had difficulty
obtaining private mortgage insurance or home mortgage financing.
Housing for the elderly or handicapped.—In addition to supporting private market mortgage financing with FHA insurance, HUD
provides direct loans to finance the construction of rental housing
for the elderly and the handicapped. The budget proposes $500
million of new direct loan obligations in 1985. Outlays for this
5-66
THE BUDGET FOR FISCAL YEAR 1985
program are estimated to be $803 million in 1984 and 1985. The
units constructed under this program also receive Section 8 new
construction subsidies, which are discussed under the income security function, to make them affordable to low-income elderly or
handicapped households.
Rural housing programs (FmHA).—The two principal loan programs of the Farmers Home Administration (FmHA) provide lowinterest direct loans to help low-income families purchase homes
and to support construction of privately-owned rental housing.
These programs are available to rural communities of 10,000 or
less, and to communities of 10,000 to 20,000 outside metropolitan
statistical areas.
The number of households served by the low-income homeownership program will grow by about 48,000 between 1983 and 1985 to
453,000. As units in planning or under construction are completed,
the number of units financed with subsidized loans from FmHA's
rental housing program will increase by about 46,000 between 1983
and 1985, to 315,000 units. To ensure that very-low-income families
can afford these units, 124,000 households will receive additional
rent subsidies from either HUD or FmHA.
The 1985 budget proposes $2.4 billion in new direct loan obligations, a reduction of $0.9 billion from the 1984 level. This reduction
reflects both improvements in the unsubsidized housing market
and increased efforts by HUD to make its housing programs available in rural areas, including a demonstration program in cooperation with private mortgage insurers.
FmHA will improve its efforts to ensure that truly needy households are the primary beneficiaries of the rural housing programs.
The agency will first examine whether potential borrowers can
obtain credit from another source before granting eligibility for
homeownership loans. Outlays for FmHA housing programs in this
function are expected to be $1.8 billion in 1985.
A number of programs enhance the safety and soundness of the
banking system and affect its responsiveness to the needs of both
savers and borrowers. The Federal Deposit Insurance Corporation
insures the deposits of all federally and many State chartered
commercial and savings banks. Receipts are estimated to exceed
expenses by $1.4 billion in 1984 and $1.7 billion in 1985.
The Federal Savings and Loan Insurance Corporation, under the
direction of the Federal Home Loan Bank Board, insures deposits
of member savings and loan associations. Receipts are estimated to
exceed costs by $0.7 billion in 1984 and, with improving economic
conditions, an estimated $1.0 billion in 1985.
The National Credit Union Administration (NCUA) regulates
credit unions, provides liquidity assistance to member credit
unions, and insures depositors' accounts. Receipts are estimated to
COMMERCE AND HOUSING CREDIT
5-67
exceed costs by $125 million in 1984 and by $38 million in 1985.
The decline in net receipts is due to unusually high, one-time
revenues in 1984, when membership and capital stock subscriptions
in NCUA's Central Liquidity Facility will greatly expand. Membership is estimated to grow from 5,300 credit unions to more than
18,000, nearly 90% of all credit unions.
Postal Service.—The Postal Reorganization Act of 1970 established the U.S. Postal Service as an independent part of the executive branch. Outlays for the general operations of the Postal Service are excluded from Federal budget totals, except for reimbursements for revenue forgone, which subsidize the reduced rates for
certain classes of mail. In the past, these reimbursements also
included payment for certain liabilities of the former Post Office
Department. These payments for 1982 through 1984 were postponed until 1985 by the 1981 Reconciliation Act. The deferred
payments, totaling $240 million, are included in the 1985 budget.
The request for 1985 reflects the administration's belief that
postage costs should be paid by those who incur them, not by the
taxpayer. Budget authority of $692 million is requested for 1985,
$187 million below the enacted 1984 level. The administration continues to support legislation proposed last year that would reduce
the revenue forgone subsidy to preferred-rate mailers to $400 million in 1985. No portion of this reduction is applied to the mail
subsidy for the blind and handicapped. The 1985 budget also includes $52 million for a reconciliation payment to cover the cost of
1982 preferred rate mail. The administration proposes that the
Postal Service operate in the future within the amount appropriated by Congress each year, not receiving additional amounts, such
as reconciliation payments, to supplement the initial appropriation.
Other advancement of commerce.—Federal programs attempt to
support an environment for fair and equitable business opportunities by providing technical assistance and loan guarantees, by developing and distributing scientific standards, by collecting and
disseminating information on the economy and population, by encouraging innovation and productivity growth, and by providing
export promotion assistance to small and medium sized businesses.
International trade and industry.—The administration supports
the concept of a Department of International Trade and Industry
that would consolidate the trade-related functions of the Government. The administration will continue to work with the Congress
on this proposal.
Small business assistance.—Net outlays for assistance to small
business are estimated to total $567 million in 1985, a reduction of
$197 million from the estimated 1984 level. The 1985 budget re420-000 O - 84 - 13 : QL 3
5-68
THE BUDGET FOR FISCAL YEAR 1985
quest for the Small Business Administration (SBA) again seeks
elimination of subsidized on-budget direct loans with the exception
of $41 million in direct financing for minority enterprise small
business investment companies and $494 million of new direct loan
obligations to cover claims on defaulted SBA guaranteed loans. In
addition, $515 million of off-budget direct loans financed by the
Federal Financing Bank, which are guaranteed by SBA, are proposed. Finally, $3.3 billion of new guaranteed loan commitments
for business loans and pollution control equipment are proposed.
As the credit programs table shows, the budget proposes phasing
down SBA loan guarantee assistance to reach $0.9 billion by 1987.
Handicapped and minority borrowers would have first priority for
credit assistance.
The reduction in SBA financial assistance is part of the administration's overall effort to restrain and reduce Federal credit programs to increase the availability of private credit for businesses.
As a group, small businesses will benefit more from the administration's efforts to stabilize financial markets, reduce interest rates,
eliminate burdensome regulations, and lower inflation, than from
direct Federal credit subsidies. Since the vast majority of small
businesses obtain financing without Federal assistance, the administration plans to assist only those businesses for which a valid case
can be made that market imperfections may exist. Consistent with
this philosophy, it is anticipated that 15% of SBA's guaranteed
business loans will be made to minority-owned firms in 1985. In
addition, the budget proposes that the other (non-credit) minority
business assistance programs in the Department of Commerce and
the SBA will operate at current levels in 1985 with outlays of $95
million.
Other.—Several additional programs support the advancement of
commerce. The National Bureau of Standards (NBS) develops and
maintains the nation's system of measurements and standards. The
1985 budget proposes to improve the Bureau's scientific standards
capabilities, especially in the areas of process and quality control,
biotechnology, and materials. Lower priority NBS research and
standards work will be phased out in areas for which the private
sector should have a larger role.
5-69
COMMERCE AND HOUSING CREDIT
CREDIT PROGRAMS—COMMERCE AND HOUSING CREDIT
(In millions of dollars)
Estimate
Actual
1983
Direct loans:
Mortgage-backed securities (GNMA):
New obligations
Net outlays
Outstandings
Mortgage purchase activity (GNMA):
New obligations
Net outlays
Outstandings
Mortgage credit (FHA):
New obligations
Net outlays
Outstandings
Housing for the elderly or handicapped:
New obligations
Net outlays
Outstandings
Rural housing (FmHA):
New obligations 1
Net outlays
Outstandings
Rural housing of FmHA (loans held by FFB):*
Net outlays
Outstandings
Central Liquidity Facility (NCUA):
New obligations
Net outlays
Outstandings
Small business assistance: 2
New obligations
„
Net outlays
Outstandings
Small business assistance (loans made by FFB):
New obligations 3
Net outlays
Outstandings
Small business assistance (loans held by FFB): 4
Net outlays
Outstandings
FDIC, FSLIC and other:
New obligations
Net outlays
Outstandings
Total, direct loans:
New obligations
Net outlays
Outstandings
1984
1
*
6
1985
2
_\
5
1986
1987
3
-1
4
500
-603
3,465
-312 -1,638 -1,460
3,153 1,515
55
1,488
894
5,044
1,716
104
5,148
1,647
-96
5,052
1,742
-77
4,975
1,873
1
4,976
633
829
4,470
666
827
5,297
500
762
6,059
525
663
6,722
551
639
7,361
2,952
-100
347
3,301
*
347
2,370
-80
266
2,403
*
266
2,332
*
266
46
992
1,755 2,182 1,853 1,187
25,676 27,858 29,711 30,897 31,889
194
-86
45
290
55
100
437
50
150
437
-25
125
437
-25
851
224
3,320
749
77
3,397
535
-66
3,331
547
-104
3,227
480
-160
3,067
430
192
951
575
646
1,597
515
419
2,016
515
400
2,416
515
394
2,810
-10
57
-10
47
-10
37
-10
27
-10
17
59
-285
1,217
36
-74
1,143
22
-321
823
19
-60
763
17
-61
703
7,108 7,336 6,028 6,191 6,209
874
512 1,761
2,811 3,492
44,598 48,091 48,964 49,476 51,237
5-70
THE BUDGET FOR FISCAL YEAR 1985
CREDIT PROGRAMS—COMMERCE AND HOUSING CREDIT—Continued
(In millions of dollars)
Actual
1983
Estimate
1984
Guaranteed loans:
Mortgage-backed securities (GNMA): 5
64,225 68,250
New commitments
36,801 34,282
Net change
152,339 186,621
Outstandings
Mortgage credit (FHA):
New commitments
44,611 38,100
Net change
18,733 21,220
Outstandings
160,985 182,205
Rural housing (FmHA):
New commitments
21
16
Net change
-41
-70
Outstandings
957
998
Small business assistance:
New commitments
2,619 3,325
Net change
-657
257
Outstandings
8,772 9,029
Chrysler Corporation:
Net change
-1,200
FDIC, FSLIC, and other:
New commitments
55
58
Net change
9
-37
Outstandings
268
259
Less guaranteed loans held as direct loans by GNMA: 6
New commitments
500
Net change
-603 -312
3,465 3,153
Outstandings
Total, guaranteed loans:
New commitments
Net change
Outstandings
Total credit budget (new obligations and new
commitments)
1985
1986
1987
68,250 68,250 68,250
34,240 33,344 31,508
220,861 254,205 285,713
40,900 42,600 45,800
21,261 23,065 24,483
203,467 226,531 251,014
13
-180
777
4
-169
608
3,290
599
9,628
930
1,950
- 2 4 6 -1,464
9,382 7,918
4
-39
569
10
-24
243
10
-17
226
12
-18
209
-1,638
1,515
-1,460
55
4
6
46,809 41,495 44,213 44,564 46,746
17,371 21,757 23,293 24,093 22,971
167,549 189,306 212,600 236,692 259,663
53,917 48,831
50,241
50,755
52,955
* $500 thousand or less.
^ h e direct lending activities of the Farmers Home Administration (FmHA) are financed by the Federal Financing Bank (FFB). Certificates of
beneficial ownership (CBO's) are issued by the FmHA. According to law, these certificates are backed by loans that the agency continues to
service. FmHA guarantees the CBO's, sells them to the FFB, and repurchases them upon maturity. FFB net outlays for RHIF represent acquisition
of CBO's less repurchases by FmHA. Increases in the volume of sales of CBO's are added to FFB direct loan outstandings, while the FmHA's
direct loan outstandings decrease by the amount of CBO's sold to the FFB.
2
Direct loan obligations for 1983 are repurchases of defaulted guaranteed loans.
3
These are obligations to guarantee loans that the FFB will disburse. In effect, they are obligations for off-budget direct loans and are counted
as such in the credit budget. Policy responsibility for these loans rests with the guaranteeing agency. The totals for small business assistance
loans made by the FFB in this table are not identical to the entries in the addendum to the national needs table for off-budget Federal entities
due4 to timing differences between budget authority and new obligations.
Some direct lending activities of the Small Business Administration are financed by the FFB. Loan assets are issued by the agency. According
to law, these assets are backed by loans that the agency continues to service. The agency guarantees the loan assets, sells them to the FFB,
and repurchases them upon maturity. FFB net outlays for this account represent acquisition of loan assets less repurchases by the agency.
Increases in the volume of sales of loan assets are added to FFB direct loan outstandings, while the agency's direct loan outstandings decrease by
the 5amount of loan assets sold to the FFB.
GNMA guarantees securities that are backed by pools of loans previously insured by the FHA, the Veterans Administration or the Farmers
Home Administration. These secondary guarantees of loans are not added into guaranteed loan totals for the credit budget.
6
When guaranteed loans are acquired by a budget account, they become direct loans and are counted as such in this table. This deduction for
GNMA eliminates overlap with direct loans presented above.
COMMERCE AND HOUSING CREDIT
5-71
Tax expenditures.—The tax system provides a variety of incentives for investment in equipment, commercial and industrial
structures, and residential housing. For example, the accelerated
cost recovery system (ACRS), enacted as part of the Economic
Recovery Tax Act of 1981 (ERTA), increases incentives to invest in
buildings, rental housing and capital equipment by permitting
faster write-offs of such expenditures. To the extent that allowable
depreciation for tax purposes exceeds the rate at which assets
actually depreciate, business tax liabilities are deferred. The investment tax credit also provides incentives for investment in capital
equipment. Under the capital gains provisions of the tax code,
income from the sale of capital assets held for more than one year
is taxed at lower rates than income from any other source.
The Federal Government also subsidizes homeownership by allowing deductions for mortgage interest and property taxes on
owner-occupied homes. Additional benefits are provided by permitting capital gains on home sales to be either deferred or excluded
from income.
Tax expenditures for commerce and housing credit are listed in
the accompanying table and discussed in more detail in Special
Analysis G.
5-72
THE BUDGET FOR FISCAL YEAR 1985
TAX EXPENDITURES FOR COMMERCE AND HOUSING CREDIT
(Outlay equivalents; in millions of dollars)
Estimates
Description
1983
Commerce and housing credit:
Dividend and interest exclusion
Net interest exclusion
Exclusion of interest on State and local industrial development bonds
Exemption of credit union income
Excess bad debt reserves of financial institutions
Exclusion of interest on life insurance savings
Deducibility of interest on consumer credit
Deducibility of mortgage interest on owner-occupied homes
Deducibility of property tax on owner-occupied homes
Exclusion of interest on State and local housing bonds for owner-occupied
housing
Exclusion of interest on State and local debt for rental housing
Capital gains (other than agriculture, timber, iron ore and coal)
Deferral of capital gains on homes sales
Exclusion of capital gains on home sales for persons age 55 and over
Carryover basis of capital gains at death
Investment credit, other than employee stock ownership plans, rehabilitation
of structures, energy property, and reforestation expenditures
Accelerated depreciation of rental housing
Accelerated depreciation of buildings other than rental housing
Accelerated depreciation of machinery and equipment
Safe harbor leasing rules
Amortization of start-up costs
Exclusion of interest on certain savings certificates
Reinvestment of dividends in public utility stock
Reduced rates on the first $100,000 of corporate income
Total (after interactions), commerce and housing credit ]
1
1984
1985
635
620
2,195
205
680
6,175
9,270
20,945
8,050
2,155
240
1,090
6,645
10,155
23,280
8,880
640
2,730
2,105
265
1,410
7,285
10,920
25,330
9,725
1,735
715
24,815
2,170
950
5,415
1,885
895
25,450
2,370
1,040
6,045
1,645
1,080
27,445
2,550
1,120
6,845
26,435
585
320
12,950
3,450
195
670
590
8,600
30,130
715
360
19,305
2,935
290
105
670
10,100
34,190
795
415
26,715
2,640
400
685
11,045
170,590 183,990 206,155
The estimate of total tax expenditures for this function reflects interactive effects among the individual items. Therefore, the estimates cannot
simply be added.
TRANSPORTATION
5-73
TRANSPORTATION
The Federal Government seeks to ensure a transportation system
providing safe, efficient and economical movement of people and
goods, and support for national defense. This requires private enterprise, State and local governments, and the Federal Government
to carry out their responsibilities for the system. Federal programs
supporting national priorities for ground, air, and water transportation are financed substantially by user fees.
A safe and efficient transportation system is essential for the
Nation's economic health and vitality. It provides mobility to citizens and serves as a distribution network for goods and services.
The administration has placed a high priority on maintaining,
upgrading, and improving the safety of this vital component of the
economy. To this end, the administration requests increases in
Federal funding for the interstate highway system, primary highways and bridges, highway safety, the national air navigation and
traffic control system, and Coast Guard operations. Proposed
budget authority for transportation programs is $29.5 billion for
1985.
Primary responsibility for other portions of the transportation
system lies outside the Federal purview. The administration looks
to State and local governments to supply the major share of funding for non-interstate highways and public transportation, and to
the private sector for commercial transportation.
The budget reflects the continued effort of the administration to
simplify Federal regulations and reduce the Federal role, where
appropriate. The administration supports recent laws that reduce
the Federal presence in the commercial activities of rail, trucking,
airline, and ocean shipping industries. Consistent with these laws,
the administration proposes a decrease in budget authority for the
Interstate Commerce Commission to reflect its reduced statutory
responsibilities. The budget also includes the termination of the
Civil Aeronautics Board on January 1, 1985, as mandated by law.
The administration stresses that those who benefit from Federal
transportation programs should pay their cost through user fees.
The administration has been successful in increasing user fees to
support highway, transit, and aviation programs. The proportion of
the Department of Transportation's total budget authority to be
obtained from user fees will increase from 49% in 1982 to 72% in
1985.
5-74
THE BUDGET FOR FISCAL YEAR 1985
NATIONAL NEED: EFFICIENT TRANSPORTATION SYSTEMS
(Functional code 400; in millions of dollars)
Major missions and programs
1983
actual
1984 1985 1986 1987
estimate estimate estimate estimate
13,239
235
4,529
1,088
67
19,159
13,941 14,724 15,460 15,420
271 288 246 250
4,320 4,112 4,117 3,987
2,169 742 740 738
47
60
54
50
20,761 19,920 20,613 20,442
BUDGET AUTHORITY
Ground transportation:
Highways
Highway safety
Mass transit
Railroads
Regulation
Subtotal, ground transportation..
Air transportation:
Airports and airways
Aeronautical research and technologyAir carrier subsidies
Regulation
Subtotal, air transportation..
Water transportation:
Marine safety and transportation:
Existing law
Proposed legislation
Ocean shipping
Regulation
Subtotal, water transportation..
Other transportation
Total, budget authority..
4,226 4,615 5,632 5,512 5,456
547 627 687 737 754
52
52
52
52
51
14
24
21
18
16
4,850
5,314
6,389
6,317
6,276
2,446 2,804 2,585 2,656 2,710
-4
-7
-6
-6
455 426 442 462 449
12
12
12
12
11
2,912
3,166
3,237
3,032
3,123
110
115
116
117
118
27,031
29,427
29,457 30,170
30,002
The Department of Transportation has embarked on a number of
management reforms that are expected to reduce outlays by an
average of $45 million annually over the next five years, starting
with savings of $16 million in 1985. The Department will: (1) simplify and consolidate financial and administrative systems, (2) contract out services that are economically available from commercial
sources, and (3) develop an automated accounting system.
Ground transportation.—Proposed budget authority is $19.9 billion for highway, highway safety, mass transit, and railroad programs in 1985. This budget continues the policies set forth in the
Surface Transportation Assistance Act of 1982 (STAA), which increased Federal revenues and programs for highways and mass
transit. The budget also reflects the administration's continued
effort to improve highway safety, and to address highway and
transit capital rehabilitation and repair.
Highways.—The STAA established the basic thrust and framework for a much enhanced Federal highway program through 1986.
Under the Act, the highway motor fuels tax increased from four to
5-75
TRANSPORTATION
NATIONAL NEED: EFFICIENT TRANSPORTATION SYSTEMS—Continued
(Functional code 400; in millions of dollars)
Major missions and programs
1983
actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
OUTLAYS
Ground transportation:
Highways
Highway safety
Mass transit
Railroads
Regulation
8,905 11,305 13,187 13,745 14,270
227
255
293
273
276
3,759 3,936 3,990 4,261 4,236
1,364 2,558 1,125
877
759
54
63
61
51
48
Subtotal, ground transportation....
14,316 18,116 18,631 19,228 19,587
Air transportation:
Airports and airways
Aeronautical research and technology....
Air carrier subsidies
Regulation
3,360 4,048 4,380 5,046 5,250
563 641 693 711 740
52
54
56
57
52
24
22
19
16
14
Subtotal, air transportation..
Water transportation:
Marine safety and transportation:
Existing law
Proposed legislation
Ocean shipping
Regulation
Subtotal, water transportation.,
Other transportation
Total, outlays
ADDENDUM
Off-budget Federal entities:
U.S. Railway Association:
Budget authority
Outlays
Federal Financing Bank:
Railroads:
Budget authority
Outlays
Total:
Budget authority...
Outlays
4,000
4,768
5,149
5,824
6,057
2,402 2,580 2,722 2,713 2,723
-7
-6
-6
-4
555 506 416 402 379
11
12
12
12
12
2,969
3,092
3,143
3,121
3,108
99
147
137
117
118
21,385 26,123 27,061 28,290 28,870
-67
-53
12
10
-14
12
49
-52 -943
-15
-14
-15
10
*$500 thousand or less.
nine cents per gallon—the first increase since 1959. Other taxes
supporting the Federal highway program were restructured to improve the balance between the tax assigned to highway users and
the costs those users impose on the system. The Act also extended
the authorization for spending from the user-financed highway
trust fund through September 30, 1988.
The administration proposes budget authority of $14.7 billion for
highways in 1985, $0.8 billion more than in 1984. The budget
maintains the salient features of the STAA. Proposed obligations
5-76
THE BUDGET FOR FISCAL YEAR 1985
for the Federal-aid highway program are set at the level projected
by the Act, when $275 million of enacted 1983 economic recovery
legislation for highway construction is included. The proposed obligation limitation for Federal-aid highways is $13.9 billion, which
includes funding for all programs except emergency relief.
The STAA greatly increased budget authority for completing and
preserving the interstate highway system, and for rehabilitating
primary highways and bridges. The 1985 budget adheres to the Act
by providing for (1) completion of all segments of the interstate
system by the early 1990's, (2) a program level increase for interstate rehabilitation of 263% over 1982 levels, the year prior to the
Act, and (3) primary highway and bridge rehabilitation program
level increases of 28% and 79%, respectively, over 1982.
All other rural and urban roads remain primarily the responsibility of State and local governments, which must decide the priority of construction, maintenance, and rehabilitation. The budget
reflects small increases over the 1984 levels for Federal programs
for these roads.
Highway safety.—Proposed budget authority for Federal highway
safety programs in 1985 is $288 million, $17 million more than
1984. The funds would be used to support Federal vehicle safety
research and development, promulgate and enforce Federal safety
standards, and supplement State highway safety programs.
The budget includes several important highway safety initiatives.
Budget authority for the motor carrier safety grant program,
which provides grants to States to enforce Federal truck safety
standards, has been increased by 100% over the 1984 level to
redouble truck safety efforts. Another grant program, incentive
grants to States to strengthen drunk driving laws and augment
anti-drunk driving programs, is increased by 16%. Budget authority for highway safety operations and research is also increased by
16%. Finally, the administration has submitted legislation to
merge several separate traffic safety functions into a single new
agency, to be called the National Traffic Safety Administration.
The new administration would combine currently separate truck
and auto safety offices into a single bureau that would permit a
more coordinated approach to highway safety.
Mass transit.—The Federal Government provides assistance for
mass transit through a variety of formula and discretionary grant
programs. The majority of funds are reserved for capital projects;
grants are also provided for operating assistance, planning activities, demonstration projects, and research.
Budget authority of $4.1 billion is proposed for mass transit in
1985. These funds are to be used primarily for capital projects, such
as construction and rehabilitation of bus and rail facilities and
TRANSPORTATION
5-77
replacement and repair of operating equipment. The funds are
distributed largely through two programs. The discretionary grant
program is funded with one cent per gallon of the motor fuels tax
and is used for capital projects. The formula grant program, financed from the general treasury, distributes funds for capital and
transit operating subsidies in urban and rural areas. In addition to
these programs, budget authority is requested for the ongoing program of substituting transit projects for previously planned interstate highway projects, for continuing construction of the Washington, D.C. Metro system, and for research and training.
The budget proposes to increase funding for formula grant capital projects by 31% over the next 5 years. However, the administration continues to believe that operating costs associated with public
transit systems should be borne by the users and the State and
local governments, rather than general taxpayers. The administration is proposing the gradual phaseout of Federal operating subsidies over the next 5 years. The phaseout is designed to provide
municipalities, especially small cities, time to adjust to greater
reliance on their own or State and local resources by retaining
high subsidy levels in the early years.
Railroads.—In keeping with the administration's policy of reducing Federal responsibility for rail activities unrelated to safety,
proposed budget authority for railroads in 1985 is reduced to $0.7
billion, $1.4 billion less than in 1984. Of this difference, $1.2 billion
is due to the Department of Transportation's one-time only repayment in 1984 of Treasury Department loans on behalf of the National Railroad Passenger Corporation (Amtrak), which defaulted
on its payments. The rest of the decrease is attributable to the
completion of the Northeast corridor improvement program (Washington to Boston rail link), and the elimination of Federal assistance programs in conjunction with the increased ability of the
industry to be self-supporting.
The Federal Government subsidizes intercity rail passenger service throughout the United States by providing grants to Amtrak.
As Amtrak becomes more efficient, existing services can be retained at decreased cost. Proposed budget authority is $680 million
for subsidies to Amtrak in 1985, a reduction of $36 million from
1984. Also to be proposed for Amtrak are the following legislative
measures for 1986 and beyond: applying performance standards to
intrastate and commuter trains, phasing in increased State and
local funding for these trains, and tightening existing performance
standards for interstate trains.
Conrail, the Government-owned freight railroad that provides
service in the Northeast and Midwest, will not require operating
subsidies in 1985. However, the Federal Government will continue
to provide special unemployment benefits to former Conrail em-
5-78
THE BUDGET FOR FISCAL YEAR 1985
ployees in 1985. Proposed budget authority for this program is $15
million. The Northeast Rail Services Act of 1981 stipulated that the
Federal Government should sell Conrail as part of a private
market solution to rail problems.
Air transportation.—Budget authority of $6.4 billion is requested
for air transportation in 1985, an increase of $1.1 billion over 1984.
Federal spending for air transportation is for the improvement,
operation, and maintenance of the national airspace system; airport grants; aeronautical research and technology; air carrier subsidies; and the operation of two airports (National and Dulles) in
the Washington, D.C. area.
Airports and airways.—The safe and efficient movement of air
traffic nationwide is under the direction of the Federal Aviation
Administration (FAA). Budget authority of $5.6 billion is proposed
for airports and airways in 1985.
The Airport and Airway Improvement Act of 1982 increased
aviation user fees for the Airport and Airway Trust Fund. The
receipts are designated to finance the multi-year FAA capital modernization program, airport improvement grants, and an increased
share of FAA operations and maintenance costs.
The administration requests budget authority of $1.9 billion for
the third year of the FAA capital modernization program. The
request represents a 90% increase from 1984 to 1985 for research,
development, and procurement of new facilities and equipment.
Proposed budget authority for new facilities and equipment alone
totals $1.7 billion in 1985. This amount not only funds the newly
available 1985 authorization, but also restores in 1985 $250 million
of unappropriated 1984 authorizations.
Airport improvement grants will emphasize compliance with airport safety standards, expansion, and noise reduction. The administration proposes obligations of $987 million, the amount newly
authorized for 1985 under the Airport and Airway Improvement
Act of 1982, as amended by the Surface Transportation Assistance
Act of 1982. The obligation level represents a 23% increase over
the 1984 limitation of $800 million.
The 1985 request for FAA operations and maintenance activities,
$2.7 billion, provides the funds for the first full "normal" year
since the air traffic controllers strike in August 1981. The Airport
and Airway Trust Fund would finance $1.8 billion of these expenses. Of the $1.8 billion, $500 million partially restores trust
fund reimbursement foregone in 1984 due to appropriations being
below the authorization for facilities and equipment. The foregone
reimbursement resulted from a provision in the Airport and
Airway Improvement Act of 1982 requiring that the trust fund
reimbursement of operating expenses be reduced by twice the
TRANSPORTATION
5-79
amount of any facilities and equipment reduction. The administration's proposal to recoup $500 million of 1984 foregone trust fund
reimbursement is based on its request to restore $250 million of
facilities and equipment appropriations and is consistent with
views expressed by the aviation community.
Aeronautical research and technology.—The National Aeronautics and Space Administration (NASA) conducts research in basic
aeronautical sciences and long-term technology development, and
operates unique research and testing facilities—activities that are
unlikely to be funded by the private sector.
The administration proposes $687 million of budget authority for
NASA in 1985 to help maintain U.S. leadership in aeronautical
research and technology. This amount would allow an increase in
aeronautical engineering and system research efforts sufficient to
continue the initiatives in numerical aerodynamic simulation and
advanced aircraft composite structures technology that are beginning in 1984. It would also provide for an increase in basic aeronautical research and technology efforts.
Air carrier subsidies.—In conjunction with airline deregulation,
the air carrier subsidy program is designed to guarantee essential
air services to small communities. The subsidies provide compensation to air carriers for operating losses incurred in servicing communities that would otherwise lose air service. Proposed budget
authority for air carrier subsidies is $52 million in 1985.
Economic regulation.—The Civil Aeronautics Board, which has
been responsible for the economic regulation of international and
domestic aviation, is scheduled to terminate on January 1, 1985.
Those Federal activities that the CAB has carried out and that are
still required for international and domestic aviation, such as air
carrier subsidies and international routing, will be assumed by
other Federal agencies, primarily the Department of Transportation.
Water transportation.—To meet its Federal responsibility in
water transportation, the administration requests $3.0 billion in
budget authority for 1985. This will allow the Coast Guard to
continue to improve its marine safety and law enforcement activities and the Maritime Administration to continue its support for
Federal ocean shipping programs. The budget also funds the Federal Maritime Commission, Panama Canal Commission, and St. Lawrence Seaway Commission.
Marine safety and transportation.—Coast Guard services include
search and rescue, maintenance of navigation aids, enforcement of
maritime laws, and other activities.
5-80
THE BUDGET FOR FISCAL YEAR 1985
The administration requests $2.6 billion of budget authority in
1985 for Coast Guard operations and improvement of its shore
facilities, vessels, and aircraft. Following the commissioning of several new vessels in 1984, two more new large cutters and several
additional smaller ones will be commissioned in 1985. Modernization of the fleet's twelve 378-foot and sixteen 210-foot cutters will
continue in 1985, resulting in expanded capabilities and extension
of the service lives of the cutters. Replacement of the Coast
Guard's older patrol boats will also continue in 1985. The Coast
Guard's air search and rescue operations have been enhanced by
the acquisition of new, faster aircraft with improved radar, and
investment in the repair and replacement of shore facilities continues. Operations will also be upgraded and expanded by the introduction of new short-range recovery helicopters. As a result of
Federal program activities, boating safety is improving steadily.
Since 1978, requests for Coast Guard assistance have declined an
average of 3% annually.
Through improved intelligence information and interagency coordination, the Coast Guard contributed substantially to a major
reduction in maritime marijuana smuggling in 1983. A high level
of maritime law enforcement will be continued in 1985 for both
fisheries and anti-smuggling activities.
The Coast Guard plans to achieve management savings in 1985
by contracting out for a number of support activities that it presently performs in-house. In addition, the maintenance of some aids
to navigation will be performed by contractors.
Consistent with the handling of military retirement costs by the
Department of Defense, legislation will be proposed to establish a
retirement fund to pay the annuities of retired Coast Guard personnel. This would replace the current practice of requesting a
separate appropriation each year to cover annuity costs.
Ocean shipping.—Programs in ocean shipping are administered
by the Department of Transportation's Maritime Administration,
the Panama Canal Commission, the St. Lawrence Seaway Commission, and the Federal Maritime Commission. Budget authority for
ocean shipping is estimated to be $442 million in 1985.
The Maritime Administration has traditionally provided two
types of direct subsidies to assist the U.S. merchant marine and
ship-building industry in competing with foreign maritime industries. Operating subsidies offset the higher costs of operating U.S.flag vessels, while construction subsidies offset the higher costs of
building vessels in U.S. shipyards.
Based on its 1982 review of U.S. maritime policy, the administration again proposes several initiatives to help revitalize the maritime industry. Included are legislative and administrative changes
that would streamline or eliminate many of the regulatory restric-
TRANSPORTATION
5-81
tions under which the U.S. Merchant Marine now operates, thereby reducing costs. One of the most significant elements of the
administration's policy is to permit subsidized U.S.-flag ship operators to build or acquire their vessels in foreign countries. This will
permit operators to acquire modern, efficient ships in a cost-effective and timely manner. Consequently, the administration continues to propose eliminating ship contruction subsidies; that program
has been unsuccessful in fostering a modern fleet of U.S.-flag vessels. U.S. shipyards will have ample work from the expanded Navy
shipbuilding program. The approximate value of unfinished shipbuilding work in private shipyards has increased from $11.1 billion
in 1980 to $20.7 billion in 1983, all of the increase attributable to
the Navy program. The budget proposes $378 million in budget
authority for operating subsidies in 1985 to meet the Government's
obligations on existing contracts; no new contracts are anticipated.
Credit programs.—The Department of Transportation provides
direct loans and guaranteed loans for water and ground transportation projects, as shown in the accompanying table. No new commitments for railroad projects are proposed after 1984. The Department of Transportation's program providing authorization for aircraft purchase loan guarantees expired in October 1983.
The Maritime Administration guarantees construction mortgage
loans to build U.S.-flag vessels in the United States. It also makes
direct loans in the form of advances to operators to avoid defaults
on Government guaranteed loans. The administration is proposing
to provide $600 million in ship contruction loan guarantees in 1985,
holding an additional $300 million in reserve to be used if needed
for national security purposes. In 1984, Amtrak defaulted on an
$880 million Department of Transportation guaranteed loan with
the Federal Financing Bank (FFB). The Department paid the FFB
on behalf of Amtrak and assumed the loan directly. In 1985, the
administration is proposing no new commitments for guaranteed or
direct loans to railroads.
5-82
THE BUDGET FOR FISCAL YEAR 1985
CREDIT PROGRAMS—TRANSPORTATION
(In millions of dollars)
Actual
1983
Direct loans-.
Highways and mass transportation-.
New obligations
Net outlays
Outstandings
Aid to railroads:
New obligations
Net outlays
Outstandings
Aid to railroads (loans made by the FFB):
New obligations l
Net outlays
Outstandings
Aircraft purchase loan guarantees (defaults):
New obligations
New outlays
Outstandings
Assistance to ocean shipping:
New obligations
Net outlays
Outstandings...:
Other transportation programs-.
New obligations
Net outlays
Outstandings
Total, direct loans:
New obligations
Net outlays
Outstandings
Estimate
1984
1985
1986
1987
72
-21
253
30
8
260
50
5
265
50
3
227
227
33
-136
1,471
1,010
20
1,490
16
1,506
1,506
1,506
15
15
1,064
20
-890
173
13
7
-14
159
-15
144
153
130
130
-45
85
85
85
85
125
64
222
85
82
303
20
16
320
15
12
331
10
6
338
1
4
1
4
65
*
2,323
60
-9
2,313
50
4
-24
402
28
3,139
1,146
-815
2,325
70
39
2,364
5-83
TRANSPORTATION
CREDIT PROGRAMS—TRANSPORTATION—Continued
(In millions of dollars)
Actual
1983
Guaranteed loans:
Highways and mass transportation:
Outstandings
Aid to railroads.New commitments
Net change
Outstandings
Aircraft purchase loan guarantees:
New commitments
Net change
Outstandings
Assistance to ocean shipping:
New commitments
Net change
Outstandings
Other transportation programs:
Net change
Outstandings
Estimate
1984
1985
997
997
997
14
-68
149
13
-104
45
-52
510
322
144
7,320
1987
2
-41
4
9
-171
562
1986
-44
466
-56
410
-55
355
600
10
7,330
10
7,340
10
7,350
10
7,360
-2
15
-3
12
-3
9
-3
6
345
-98
9,046
Total credit budget (new obligations and new
commitments)
97
9
-2
18
Total, guaranteed loans.New commitments
Net change
Outstandings
97
9
613
-149
8,897
602
-78
8,819
8,770
-48
8,722
747
1,759
672
665
660
* $500 thousand or less.
1
These are obligations made by the agency to guarantee loans that the FFB will disburse. In effect, they are obligations for off-budget direct
loans, and are counted as such in the credit budget. Policy responsibility for these loans rests with the guaranteeing agency. Totals for loans for
aid to railroads made by FFB in this table are not identical to the entries in the addendum to the national needs table for off-budget Federal
entities due to timing differences between budget authority and new obligations.
Tax expenditures.—In addition to direct Federal funding, 3 tax
expenditures provide assistance to shipping concerns, mass transit
systems, and motor carriers. Certain companies that operate U.S.flag vessels are able to defer taxes indefinitely on income invested
in construction, repair and modernization of ships; this results in a
tax expenditure of $45 million in 1985. The Economic Recovery Tax
Act of 1981 allows state and local governments to issue tax-exempt
bonds for mass transit vehicles and provides special write-offs for
motor carriers whose operating monopolies were reduced in value
by deregulation. These two tax expenditures are estimated to be
$100 million and $75 million, respectively. Total tax expenditures
for transportation are $220 million in 1985.
420-000 O -
84
-
14
:
QL
3
5-84
THE BUDGET FOR FISCAL YEAR 1985
COMMUNITY AND REGIONAL DEVELOPMENT
Federal policy for community and regional development is directed toward supporting economic and social growth in urban and
rural neighborhoods, communities, and regions. This policy recognizes that the most important stimulus to lasting community and
regional development is a sound, expanding economy and that
private, State, and local decisions and resources should have the
primary role in community and regional development.
Specific Federal programs supporting community and regional
development supplement overall economic forces by providing
grants, loans, loan guarantees, and technical assistance to States
and local governments, intergovernmental and regional organizations, insular areas, and Indian tribes. These programs help recipients address essential development needs or recover from disasters.
For 1985, the administration is requesting budget authority of
$6.4 billion for community and regional development, compared to
$7.2 billion proposed for 1984. Outlays are estimated at $7.6 billion
in 1985. For credit programs, 1985 direct loan obligations are estimated to be $1.0 billion, and no new guaranteed loan commitments
are expected.
Community development—Several Federal programs, most of
which are administered by the Department of Housing and Urban
Development, support community development in both rural and
urban areas.
Community development block grants.—The community development block grant (CDBG) program provides flexible community
and economic development support to cities, counties, Indian tribes,
and U.S. territories. Funds are allocated by formula to States, large
cities, and urban counties. The States receive funds to distribute to
their smaller communities and rural areas by methods that the
States design. The administration estimates $3.9 billion in outlays
for this program in 1985.
Urban development action grants.—This grant program is designed to generate economic growth and jobs in distressed areas by
leveraging the investment of private capital. Through a competitive selection process, financial assistance is provided to localities
and Indian tribes. Urban development action grant (UDAG)
funds, along with private and local resources, are used to promote
locally-designed economic revitalization projects that could not go
forward without Federal assistance. The administration estimates
$490 million in outlays for this program in 1985.
5-85
COMMUNITY AND REGIONAL DEVELOPMENT
NATIONAL NEED: COMMUNITY AND REGIONAL DEVELOPMENT
(Functional code 450; in millions of dollars)
Major missions and programs
BUDGET AUTHORITY
Community development:
Community development block grants
Urban development action grants
Rental rehabilitation grants
Rental development grants
Urban homesteading
Other programs
Subtotal, community development..
Area and regional development:
Rural development
Economic development assistance
Indian programs
Regional commissions
Tennessee Valley Authority
Offsetting receipts
Subtotal, area and regional developmentDisaster relief and insurance:
Disaster relief
National flood insurance fund
Other programs
Subtotal, disaster relief and insuranceTotal, budget authority
1983
actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
4,456
440
3,468
3,468
440
150
3,468
440
150
12
373
3,468
440
300
315
12
258
12
257
12
240
12
230
5,281
4,793
4,177
4,310
4,300
982 1,017 1,037
1,353
905
12
9
294
268
22
1,178 1,093 1,108 1,166 1,214
173
162
115
216
111
86
115
-264 -307 -343 -371 -404
1,935
2,950 2,205
1,971
130
223
127
90
144
100
70
138
200
53
142
200
14
147
480
24
3
308
395
360
7,232 6,369 6,641
6,631
8,712
Rental rehabilitation and rental development grants.—In 1983,
the administration proposed, and the Congress enacted, a new program to help States and localities rehabilitate properties for lowincome renters. Under this program, the Federal Government will
subsidize up to half the costs of rehabilitating an estimated 30,000
rental housing units annually. Housing vouchers, described in the
income security section, will also be provided to ensure that eligible low-income households can afford the rents in these rehabilitated units. The administration proposes to make budget authority of
$150 million available per year, starting in 1984. The administration estimates outlays of $75 million for this program in 1985.
In the Housing Urban-Rural Recovery Act (HURRA) of 1983
(Public Law 98-181), the Congress created a new rental development grant program to subsidize the construction or substantial
rehabilitation of rental housing in low- and moderate-income
neighborhoods experiencing a severe shortage of rental housing.
This program will be funded on a demonstration basis for 2 years,
with $200 million in budget authority available in 1984 and another $115 million becoming available in 1985. The administration
5-86
THE BUDGET FOR FISCAL YEAR 1985
NATIONAL NEED: COMMUNITY AND REGIONAL DEVELOPMENT—Continued
(Functional code 450; in millions of dollars)
Major missions and programs
OUTLAYS
Community development:
Community development block grants..
Urban development action grants
Rental rehabilitation grants
Rental development grants
Urban homesteading
Other programs
Subtotal, community development.
Area and regional development:
Rural development
Economic development assistance..
Indian programs
Regional commissions
Tennessee Valley Authority
Other programs
Offsetting receipts
Subtotal, area and regional development..
Disaster relief and insurance:
SBA disaster loans
Disaster relief
National flood insurance fund
Other programs
Subtotal, disaster relief and insurance
Total, outlays..
ADDENDUM
Off-budget Federal entities:
Rural Telephone Bank:
Budget authority
Outlays
Federal Financing Bank:
Community development:
Budget authority
Outlays
Rural development:
Budget authority
Outlays
1983
actual
1984
estimate
3,554
451
3,900
480
9
279
1985
estimate
1986
estimate
1987
estimate
3,900 3,525 3,477
512
530
490
188
188
75
112
138
20
15
12
17
16
209
164
285
287
4,293 4,682
4,788
4,559
4,508
1,039 1,134 1,181 1,167 1,123
303 336 316 162 111
1,114 1,150 1,148 1,144 1,179
79
279 217 191 141
160 200 118 112 115
39
1
13
7
-264 -307 -343 -371 - 4 0 4
2,644
2,769
-430 -321
220
202
93
137
151
89
-1
143
2,618
2,357
2,203
-213 - 2 2 2 - 2 0 1
200
200
200
48
64
7
134
131
127
179
160
137
6,936 7,594 7,586 7,076 6,848
144
59
147
154
144
152
144
152
144
152
117
60
216
134
120
47 - 1 0 6
-131
1,010
505
1,626
646
1,125
530
261
231
152
152
1,271
624
1,988
934
1,389
728
405
276
296
173
Total:
Budget authorityOutlays
* $500 thousand or less.
proposes funding both the rental rehabilitation grant and the
rental development grant programs in 1984 and 1985 by transferring the entire $615 million in budget authority from HUD's subsidized housing programs in 1984.
COMMUNITY AND REGIONAL DEVELOPMENT
5-87
Urban homesteading.—The urban homesteading program reimburses the FHA fund for single-family properties transferred to
State and local governments. These properties are then conveyed to
local residents who agree to rehabilitate the properties and live in
them for 5 years. In 1984, the administration proposes to expand
its urban homesteading program to test the feasibility of multifamily homesteading. This expanded program will help improve
blighted neighborhoods and provide additional homeownership opportunities to lower-income households who cannot afford the expense of single-family homeownership. The administration estimates outlays in 1985 will total $16 million.
Area and regional development—Programs in this category support rural development, programs of American Indian tribal governments, and multi-State regional development.
Rural development.—The Department of Agriculture administers
a variety of grant and credit programs for developing rural areas.
In 1985, the administration proposes $982 million in new budget
authority for rural development, including $560 million for the
rural development insurance fund and $90 million for water and
waste disposal grants. As shown in the credit programs table, new
direct loan obligations totaling $406 million are proposed for the
rural development insurance fund. Rural areas can also receive
assistance from the Department of Housing and Urban Development "small cities" community development block grant program.
Economic development assistance.—The Department of Commerce's Economic Development Administration (EDA) provides
public works grants to States, communities, and Indian tribes.
Because the administration continues to seek the phaseout of all
EDA activities, no new budget authority is requested for 1985, with
the exception of small amounts to cover on-going administrative
expenses. There is no evidence that categorical EDA project grants
create net employment gains for the nation. At worst, they lock
resources into unproductive areas and industries, thus subsidizing
inefficiency.
Funds for community and economic development programs will
continue to be available in 1985 through the community development block grant and urban development action grant programs.
Some economic development assistance for rural areas will continue to be available through the Farmers Home Administration.
Indian programs.—The three major objectives of Federal Indian
policy are to meet the trusteeship responsibilities of the U.S. Government, to increase self-determination for American Indian tribal
governments, and to encourage economic development on Indian
reservations.
5-88
THE BUDGET FOR FISCAL YEAR 1985
Outlays for the Indian programs and miscellaneous trust funds
for regional development administered by the Bureau of Indian
Affairs are estimated to be $1.15 billion in both 1984 and 1985. The
Department of Housing and Urban Development also provides
housing and community development support for Indians through
the Indian public housing program (discussed in the income security function) and the community development block grant program (described above). Total outlays for special Indian programs
government wide, including programs in other functions such as
income security and education, are expected to total $2.8 billion in
1985, not including payments received by individual Indians from
the miscellaneous trust funds or from programs available to all
qualified U.S. citizens.
Appalachian Regional Commission.—The Appalachian Regional
Commission's (ARC) programs are intended to support development
in the 13-State region. The Commission and its non-highway and
access roads programs are again proposed for termination, this
time at the end of 1984. The administration proposes that the
Appalachian development highway system program continue to be
funded in 1985, but that program funding be provided to the Department of Transportation. This program would then be terminated by the end of 1986. Because the highway system is eligible for
funding through Federal aid for highways, continued construction
after 1986 would be through Federal aid funds, at the discretion of
the States. The administration's policy with respect to the ARC
reflects reliance on (1) the private sector and State and local governments to provide the major stimulus for economic development;
and (2) the user-financed Federal highway program to meet longrun Appalachian highway constructions needs, rather than on the
general taxpayer to finance special-interest highway projects.
Tennessee Valley Authority.—Programs in this function are
aimed primarily at strengthening the economic and natural resource base of the 7-State region the Tennessee Valley Authority
(TVA) serves. Economic and community assistance; land, water,
forest, and agricultural development; and fertilizer research, development, and introduction are among the activities sponsored. Outlays for TVA's activities in this function are estimated to be $118
million in 1985, down from $200 million in 1984.
Disaster relief and insurance.—Providing insurance against
losses from floods, hurricanes, tornadoes, and other natural disasters is primarily the responsibility of private insurers. However,
State and local governments aid recovery when necessary, and
Federal insurance and disaster relief programs are available to
5-89
COMMUNITY AND REGIONAL DEVELOPMENT
supplement State and local resources when those resources are
insufficient.
SBA disaster loans.—The Small Business Administration (SBA)
provides loans to homeowners and non-agricultural businesses that
suffer losses as a result of natural disasters, such as hurricanes or
floods. Loan repayments for this program are estimated to exceed
gross outlays by $213 million in 1985.
Disaster relief program.—The Federal Emergency Management
Agency administers this nationwide program that provides supplemental assistance to individuals and State and local governments
in the event of a Presidentially declared emergency or disaster. In
addition, States or Federal agencies may be reimbursed for disaster
relief work performed under this authority. Budget authority of
$100 million in 1985 is expected to be sufficient to cover anticipated
payments when combined with existing fund balances of $368 million. Outlays are estimated at $200 million in 1985.
National flood insurance fund.—The Federal Emergency Management Agency operates a national program of direct Federal
flood insurance at subsidized rates. Over the past 5 years, the
program has cost the taxpayer approximately $140 million per
year. The proposed 1985 budget continues the plan to phase out
this costly subsidy by 1988 through a series of rate increases,
thereby recovering clearly allocable costs of flood insurance from
those who receive the benefits of this program. Outlays for this
program are estimated to be $64 million for 1985, down from $93
million in 1984.
CREDIT PROGRAMS—COMMUNITY AND REGIONAL DEVELOPMENT
(In millions of dollars)
Actual
1983
Direct loans-.
Rural development insurance fund (FmHA):
744
New obligations*
Net outlays
-48
Outstandings
105
Rural development insurance fund (FmHA) (loans held by
FFB): i
505
Net outlays
Outstandings
6,908
Economic development assistance-.
Net outlays
-72
Outstandings
710
Small Business Administration disaster loans:
New obligations
198
-577
Net outlays
Outstandings
5,496
Estimate
1984
1985
1986
1987
410
-44
61
406
2
63
362
*
63
355
*
63
646
7,554
530
8,084
231
8,314
152
8,466
-11
700
-33
666
-57
609
-57
552
440
-436
5,060
440
-311
4,749
440
-311
4,438
440
-280
4,158
5-90
THE BUDGET FOR FISCAL YEAR 1985
CREDIT PROGRAMS—COMMUNITY AND REGIONAL DEVELOPMENT—Continued
(In millions of dollars)
Actual
1983
Rural Telephone Bank:
New obligations
Net outlays
Outstandings
Other:
New obligations
Net outlays
Outstandings
Other (loans made by the FFB): 2
New obligations
Net outlays
Outstandings
Total, direct loans:
New obligations.
Net outlays
Outstandings
Guaranteed loans:
Rural development insurance fund (FmHA):
New commitments
Net change
Outstandings
Economic development assistance-.
New commitments
Net change
Outstandings
Small Business Administration disaster loans-.
Net change
Outstandings
Estimate
1984
1985
1986
1987
1,254
185
186
1,439
185
184
1,624
185
184
1,808
185
184
1,992
53
-27
1,469
161
42
1,511
18
28
1,539
22
-60
1,479
18
-84
1,395
61
60
211
225
134
345
47
392
-106
285
-131
155
1,227
-77
16,153
1,421
516
16,669
1,049
447
17,116
1,009
-120
16,996
998
-216
16,780
82
2
3,389
300
-136
3,253
122
3,375
20
3,395
-130
3,266
3
-86
544
30
-53
491
-78
413
-50
363
-50
314
-2
9
-2
7
-2
6
-2
4
-2
2
14
-55
207
19
-20
187
-7
180
-20
159
-11
149
-140
4,149
349
-211
3,933
35
3,973
-51
3,922
-192
3,730
1,325
1,770
1,049
1,009
998
172
81
Other:
New commitments
Net change
Outstandings
Total, guaranteed loans:
New commitments
Net change
Outstandings
Total credit budget (new obligations and new
commitments)
^ h e direct lending activities of the Farmers Home Administration (FmHA) are financed by the Federal Financing Bank (FFB). Certificates of
beneficial ownership (CBO's) are issued by the FmHA. According to law, these certificates are backed by loans that the agency continues to
service. FmHA guarantees the CBO's, sells them to the FFB, and repurchases them upon maturity. FFB net outlays for RDIF represent acquisition
of CBO's less repurchases by FmHA. Increases in the volume of sales of CBO's are added to FFB direct loan outstandings, while the FmHA's
direct loan outstandings decrease by the amount of CBO's sold to the FFB.
2
These are commitments made by the agency to guarantee loans that the FFB will disburse. In effect, they are commitments for off-budget
direct loans, and are counted as such in the credit budget. Policy responsibility for these loans rests with the guaranteeing agency.
COMMUNITY AND REGIONAL DEVELOPMENT
5-91
Tax expenditures.—Direct Federal funding for community and
regional development is supplemented by several existing tax expenditures. Under certain conditions, taxpayers may elect to amortize rehabilitation expenditures for low- and moderate-income
rental housing over a 5-year period. The 1985 tax expenditure for
this provision is $85 million. Development is also assisted by the
exclusion of interest on State and local industrial development
bonds for airports, docks, and sports and convention facilities. The
estimate for this provision is $450 million in 1985. Special tax
credits are also available for rehabilitation of older nonresidential
buildings. For 1985 the estimate for this program is $470 million.
Total tax expenditures for community and regional development
for 1985 are estimated to be $1.0 billion.
The administration continues to support an enterprise zone program that would provide tax incentives for the redevelopment of
economically distressed areas. Enterprise zones offer a new private
sector approach to community revitalization by including incentives for public-private partnerships and by working to reduce regulatory burdens that often create disincentives to business investment. Up to 25 small areas per year would be designated "enterprise zones." Businesses in the zones would be entitled to exemption from tax on certain gains, and to tax credits for capital investment, for increases in employment, and for hiring disadvantaged
employees. A tax credit would also be provided to employees in the
zones. The tax expenditure from this proposal is estimated to be
$305 million in 1985.
Related programs.—Many programs that fulfill other national
needs as their primary purpose also promote community and regional development. For example, Federal outlays for all civil
public works projects; grants for local health, education, and transportation programs; and general revenue sharing support State
and local development. Community development is also encouraged
by other Federal activities, including defense contracting, management of public forests and parks, and the operation of Federal
facilities, such as Veterans Administration hospitals, naval shipyards, and NASA research facilities. Disaster relief is also provided
by the emergency disaster loan program within the Department of
Agriculture/Farmers Home Administration.
5-92
THE BUDGET FOR FISCAL YEAR 1985
EDUCATION, TRAINING, EMPLOYMENT, AND
SOCIAL SERVICES
Federal programs for education, training, employment, and
social services are intended to: (1) assist parents, States, and localities in providing education, especially for educationally disadvantaged, low-income, and handicapped persons; (2) assist economically
disadvantaged or dislocated workers in gaining job skills and finding permanent, unsubsidized employment opportunities; (3) help
employers and employees maintain stable and productive relations;
and (4) help provide social services for needy children, families, the
elderly, and other groups. Historically, the responsibility for meeting most of these needs has rested with State and local governments and the private sector. Total outlays for this function are
estimated to be $27.9 billion for 1985. This is a 2.8% decrease from
the 1984 level of $28.7 billion.
EDUCATION
The Federal Government has traditionally played a limited role
in financing education, providing less than 10% of the total national support for education.
The administration's budget and supporting legislative proposals
have reflected the belief that control over education policy must be
primarily the responsibility of States, local school districts, and
parents. The 1985 budget maintains this philosophy. Federal funds
and programs cannot be allowed to become a vehicle for Federal
prescription of State and local education policy.
Elementary, secondary, and vocational education.—The budget
requests $7.3 billion in budget authority and estimates $7.1 billion
in outlays in 1985 for these programs. Most funds are used to assist
States and localities educate students with special needs.
Block grant and discretionary fund.—In 1985, $729 million in
budget authority is requested for Chapter 2 of the Education Consolidation and Improvement Act (ECIA) of which $686 million is for
the State education block grant. With these funds, States and
localities will have over 50% more resources than in 1984 to plan
and implement strategies to improve the quality of education. They
can also support special purpose programs such as women's educational equity and civil rights training that are presently administered at the Federal level. Most importantly, they may do so without Federal interference in their choices about what is best for
their schools, students, and teachers. The remaining $43 million
will support research and demonstration activity, model program
development, dissemination of education reform ideas, and special
projects.
EDUCATION, TRAINING, EMPLOYMENT, SOCIAL SERVICES
5-93
Education for the disadvantaged.—The largest share of the funds
for elementary and secondary education goes to States and localities for supplementary compensatory education services to educationally disadvantaged children under six programs within Chapter
1 of the ECIA. In the 1985-86 school year, approximately 13,800
school districts will participate in these programs. The 1985 total
request of $3.5 billion in budget authority for Chapter 1 is the same
as the 1984 appropriation. Funds would be redistributed within the
total to provide more aid for the local school district grant program. The administration will also continue to support legislation
proposed last year to give States and local educational agencies the
option of providing compensatory education services through locally designed voucher systems.
NATIONAL NEED: EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES
(Functional code 500; in millions of dollars)
Major missions and programs
BUDGET AUTHORITY
Education:
Elementary, secondary, and vocational education:
Block grant and discretionary fund (Ch. 2)....
Education for the disadvantaged (Ch. 1)
Science and math education (proposed legislation)
Indian education
Impact aid
Education for the handicapped
Vocational education:
Existing law
Proposed legislation
Adult education
Other:
Existing law
Proposed legislation
Subtotal, elementary, secondary, and
vocational education
Higher education:
Student aid:
Pell/self-help grants
College work study
Guaranteed student loans:
Existing law
Proposed legislation
Other student aid
Other:
Existing law
Proposed legislation
Subtotal, higher education.
Research and general education aids...
Subtotal, education
1983
actual
1984
estimate
1985
estimate
estimate
1987
estimate
479
3,200
479
3,480
729
3,480
729
3,490
729
3,530
367
540
1,199
50
327
585
1,239
50
342
507
1,214
50
346
515
1,214
50
351
525
1,239
729
738
95
100
7
731
100
7
731
100
7
731
100
243
267
41
129
40
129
40
129
6,854
7,266
7,331
7,353
7,432
2,419
590
2,800
555
2,800
850
2,856
850
2,913
850
3,100
2,256
609
632*
3,079
-239
4
3,089
-153
4
2,917
-197
3
377
134
378
134
377
134
700
7,418
6,931
7,006
7,158
6,997
1,147
1,115
1,017
1,008
1,011
15,419
15,312
15,354
15,519
15,440
5-94
THE BUDGET FOR FISCAL YEAR 1985
NATIONAL NEED: EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES—Continued
(Functional code 500; in millions of dollars]
Major missions and programs
Training, employment, and other labor services:
Training and employment:
Block grants to States 1
Summer youth employment:
Existing law
Proposed legislation
Assistance to dislocated workers
Job Corps
Older Americans employment
Work incentive program
Other training programs
Federal-State employment service
1983
actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
2,181
3,301
1,886
1,886
1,886
825
135
622
319
271
321
842
1,449
-174
343
992
317
271
423
1,465
725
-87
223
600
317
725
-87
223
612
317
725
-87
223
624
317
243
938
242
960
5,515
8,388
4,845
4,878
243
982
4,914
640
687
707
723
Subtotal, training, employment, and
other labor services
6,154
9,075
5,552
5,601
5,641
Social services:
Social services block grant
Rehabilitation services
Community service programs
Family social services
Services for children, youth, and families
Services for the elderly and other special groups.
Domestic volunteer programs
Other social services
2,675
1,045
383
573
952
823
129
24
2,675
1,121
353
669
1,035
831
129
24
2,700
1,092
3
642
1,092
930
120
25
2,700
1,112
2,700
1,132
660
1,123
952
118
24
6,604
6,838
6,604
6,688
679
1,146
977
121
24
6,778
28,178
31,225
27,510
27,808
27,858
514
2,635
462
3,368
494
3,419
673
3,479
724
3,490
336
548
1,290
6
326
613
1,108
40
331
572
1,176
50
341
540
1,223
50
345
526
1,219
633
698
85
92
763
15
100
224
508
98
46
694
100
255
286
237
-4
86
95
41
129
6,294
6,959
7,144
7,320
7,363
Subtotal, training and employment..
Other labor services
Subtotal, social services.
Total, budget authority..
OUTLAYS
Education:
Elementary, secondary, and vocational education:
Block grant and discretionary fund (Ch. 2)
Education for the disadvantaged (Ch. 1)
Science and math education (proposed legislation)
Indian education
Impact aid
Education for the handicapped
Vocational education:
Existing law
Proposed legislation
Adult education
Other:
Existing law
Proposed legislation
Subtotal, elementary, secondary, and
vocational education
77
2
EDUCATION, TRAINING, EMPLOYMENT, SOCIAL SERVICES
5-95
NATIONAL NEED: EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES—Continued
(Functional code 500; in millions of dollars)
Major missions and programs
Higher education:
Student aid:
Pell/self-help grants
College work study
Guaranteed student loans:
Existing law
Proposed legislation
Other student aid
Other.
Existing law
Proposed legislation
Subtotal, higher education.
Research and general education aids..
Subtotal, education
Training, employment, and other labor services:
Training and employment:
Block grants to States*
Summer youth employment:
Existing law
Proposed legislation
Assistance to dislocated workers
Job Corps
Older Americans employment
Work incentive program
Other training programs
Federal-State employment service
Expired programs
Subtotal, training and employment..
Other labor services
Subtotal, training, employment, and
other labor services
Social services:
Social services block grant
Rehabilitation services
Community services programs
Family social services
Services for children, youth, and families
Services for the elderly and other special groups.
Domestic volunteer programs
Other social services
Subtotal, social services.
Total, outlays
1
1983
actual
1985
estimate
1986
estimate
1987
estimate
2,898
528
2,897
569
2,703
617
2,817
835
2,865
850
2,556
618
2,975
-13
632
2,913
-166
544
3,086
-174
30
2,960
-186
3
631
706
566
11
338
105
7,231
7,766
7,188
7,037
232
132
6,855
1,055
1,176
1,163
1,075
1,017
14,580
15,901
15,495
15,432
15,235
2,291
1,784
1,886
1,886
1,886
750
725
-78
230
610
725
-87
225
605
317
725
-87
227
613
317
312
902
11
725
-87
224
589
317
57
258
939
1
246
949
244
971
5,295
5,085
4,910
4,866
4,896
599
673
703
719
74
2
5,894
5,758
5,614
5,585
5,620
2,508
949
333
410
1,007
783
126
18
6,133
2,772
1,207
380
664
1,005
839
130
30
7,025
2,796
1,091
123
654
1,063
908
124
27
6,785
2,703
1,109
2,700
1,126
655
1,105
949
119
26
6,667
673
1,132
968
120
24
6,743
26,606
28,683
27,893
27,684
27,598
26
563
274
289
294
763
44
In 1983 and 1984 the numbers include programs replaced by the block grant.
1984
estimate
319
273
5-96
THE BUDGET FOR FISCAL YEAR 1985
Science and math education.—Legislation has been proposed to
provide funds to States for training additional secondary school
teachers in science and mathematics. The $50 million in budget
authority requested in 1985 for this new block grant, combined
with activities of the National Science Foundation (see the discussion in general science, space, and technology) and the education
reform resources of Chapter 2, represent a substantial commitment
to reversing the decline in the quality of science and mathematics
learning in America.
Indian education.—The budget includes $273 million in budget
authority for Bureau of Indian Affairs programs that support the
direct operation of schools on Indian lands as well as tribally
operated schools, and provide financial assistance to public schools
that serve Indian children. Budget authority of $69 million is requested for Department of Education programs that also provide
financial assistance to public schools serving Indian children and
support discretionary projects for Indian children and adults.
Impact aid.—This program compensates local school districts
deemed adversely affected by Federal activity. Reduced budget authority is requested in 1985 compared to 1984 primarily to reflect
the congressional decision to terminate, at the end of 1984, funding
for those federally-connected children whose presence imposes little
or no financial burden on most school districts. Payments would be
made to approximately 1,300 school districts on behalf of 335,000
children who live on Federal property and whose parents work on
that property.
Education for the handicapped.—Under the Education of the
Handicapped Act, formula grants help States and localities educate
handicapped children; smaller discretionary programs support
demonstrations, research, and training. For the formula grant, the
budget request would maintain the same resource level and approximately the same Federal share of local costs in 1985 as in
1984. A new program to help handicapped children in secondary
school make the transition from school to work or further education would be continued in 1985 at $6 million in budget authority,
the same level as in 1984.
Vocational education.—Vocational education assists youth in preparing for careers and assists adults who need training or retraining. The budget authority requested for 1985 would continue the
program at the 1984 level of $738 million. Legislation will be proposed to simplify Federal requirements and allow States greater
flexibility in their use of these funds.
Adult education.—The adult education program provides formula
grants to States to reduce adult functional illiteracy. These funds
are an important element in the President's adult literacy initia-
EDUCATION, TRAINING, EMPLOYMENT, SOCIAL SERVICES
5-97
tive. The budget requests $100 million in budget authority for this
activity.
Other elementary and secondary education.—Budget authority requests in this category are for bilingual education ($139 million,
under proposed legislation to make the program more responsive to
local needs), Federal administration of elementary, secondary, and
vocational education programs ($18 million), and the American
Printing House for the Blind ($5 million). Also included is funding
for two schools serving deaf children on the campus of Gallaudet
College. The 1985 request for these institutions, $8 million, reflects
a legislative proposal to allow these special schools to charge local
school districts for the cost of educating their handicapped children. The school districts are otherwise required to provide special
services for these children in their own schools.
Higher education.—The administration requests $7.0 billion in
budget authority and $7.2 billion in estimated outlays to support
higher education in 1985.
Student aid.—Under current law, schools and students can
obtain funds from as many as six different Federal student aid
programs, plus other sources of aid, to pay for post-secondary education. Only a limited family and no student contribution is required before receiving a Federal grant. The budget includes policies intended to restore primary responsibility to the family and
the student for meeting postsecondary educational costs. These
policies would require higher family contributions and eliminate
redundant aid programs.
The present Pell grant program would be modified to increase
the maximum grant and require a minimum family or student
contribution. The work-study program would be revised to improve
placement activity. Schools would be able to use up to 50% of
work-study funds as additional grants for needy students. An
annual limit of $4,500 would be imposed on the combined self-help
and work study grants, taking into consideration the family contribution. For 1985, $2.8 billion in budget authority is requested for
self-help grants and $850 million for work-study.
The guaranteed student loan (GSL) program will continue to
guarantee loans and pay interest subsidies as under current law.
However, legislation will be proposed to provide that all loan applications are subject to need analysis to help assure that Federal
interest subsidy benefits go to those who need them most. Other
legislative changes would be made in the relationship between the
Federal Government and State and other guarantee agencies that
actually insure most loans to: eliminate administrative cost allowances no longer needed; modify Federal reinsurance provisions to
5-98
THE BUDGET FOR FISCAL YEAR 1985
provide incentives for closer monitoring of lenders; and recall advances (interest-free loans) made to guarantee agencies in the early
years of the program. Billing procedures used by lenders would be
modified to reflect actual subsidies earned. Budget authority of $2.8
billion requested for this program in 1985 is net of a $239 million
reduction, the effect of the proposed changes.
Other student aid.—The supplemental educational opportunity
grant program and the State student incentive grant program
would not be funded in 1985. In addition, no new Federal capital
contributions to schools' national direct student loan (NDSL) revolving funds would be made. These three programs duplicate the
student aid authorities to be funded. Schools would retain the
authority to make about $585 million in new NDSL loans annually
from the revolving funds, which would remain under their control.
Other higher education aid.—The administration requests $134
million in budget authority for historically black colleges and other
schools serving large numbers of students from low-income families
under a legislative proposal to simplify program administration, to
better target available funds, and to emphasize endowment building. Budget authority is also requested for Gallaudet College ($39
million), the National Technical Institute for the Deaf ($31 million),
Howard University ($158 million), and Federal administration of
higher education programs ($80 million).
Budget authority of $136 million is requested in 1985 for special
programs for disadvantaged students, post-secondary research,
grants to improve science teaching at predominantly minority
schools, mandatory payments for subsidies under certain facilities
loan programs, and for the Harry S Truman Scholarship Foundation and reflects offsetting collections for national direct student
loans.
Research and general education aids.—The administration requests $1.0 billion in 1985 budget authority and $1.2 billion in
estimated outlays for educational research and statistics, the National Endowments for the Arts and the Humanities, the Institute
of Museum Services, the Smithsonian Institution, the Library of
Congress, and the Corporation for Public Broadcasting. For overhead costs of the Department of Education, the request also reflects
savings due to management initiatives resulting, in part, from
analyses done under the President's management reform program.
Credit programs.—The largest credit program in this function is
the guaranteed student loan program, which guarantees the repayment of loans made by commercial lenders and nonprofit institutions to students and their parents for higher education. The
budget assumes that $7.5 billion in new loans will be guaranteed in
EDUCATION, TRAINING, EMPLOYMENT, SOCIAL SERVICES
5-99
1985, approximately $352 million more than in 1984. The outstanding loan portfolio at the end of 1985 is expected to be $32.6 billion.
CREDIT PROGRAMS—EDUCATION
(In millions of dollars)
Actual
1983
Estimate
1984
1985
1986
1987
502
387
1,912
713
567
2,479
795
480
2,959
788
558
3,517
768
542
4,059
181
114
4,904
161
149
5,054
77
5,131
-66
5,065
-61
5,005
5,000
5,000
5,000
5,000
5,000
40
-7
3,537
3,457
-137
3,320
3,231
-119
3,112
Total, direct loans:
New obligations.
Net outlays
Outstandings
724
495
15,354
874
636
15,990
795
420
16,410
788
403
16,813
768
362
17,175
Guaranteed loans:
Guaranteed student loans:
New commitments
Net change
Outstandings
7,262
3,790
26,490
7,593
3,347
29,837
7,907
2,780
32,617
8,353
2,433
35,050
8,836
2,182
37,232
Total credit budget (new obligations and new
commitments)
7,986
8,467
8,702
9,141
9,604
Direct loans:
Guaranteed student loans:1
New obligations
Net outlays
Outstandings
Student financial assistance:2
New obligations
Net outlays
Outstandings
SLMA obligations (loans made by FFB):
Outstandings3
Other education:
New obligations
Net outlays
Outstandings
1
These are purchases of defaulted guaranteed student loans from lenders, prior to Federal collection efforts.
Defaulted National direct student loans assigned to the Federal Government for collection.
These are outstanding commitments made by the agency to guarantee loans that the FFB has disbursed to SLMA. In effect, they are
commitments for off-budget direct loans, and are counted as such in the credit budget. Policy responsibility for these loans rests with the
guaranteeing agency.
2
3
Tax expenditures.—A variety of exclusions, exemptions and deductions provide assistance for education. Student loans are subsidized through the exclusion of interest on State and local student
loan bonds; students receive additional benefits because scholarship
and fellowship awards are not subject to tax. These two tax expenditures are estimated as $470 million and $625 million, respectively, in 1985. Other assistance is provided through a special tax
exemption available to parents of students age 19 or over and by
the deductibility of charitable contributions for education. Tax expenditures for these two items are $1.0 billion and $1.2 billion,
respectively, in 1985. The exclusion of interest on State and local
debt for private non-profit educational facilities results in a tax
420-000 O - 84 - 15 : QL 3
5-100
THE BUDGET FOR FISCAL YEAR 1985
expenditure of $200 million in 1985. Tax expenditures for education
total $3.6 billion in 1985.
The administration continues to support enactment of a tuition
tax credit for parents with incomes below $60,000 who choose to
send their children to private elementary and secondary schools.
This is an essential measure that supports freedom of educational
choice and is expected to help improve all aspects of elementary
and secondary education. The outlay equivalent estimate for this
program is $590 million in 1985.
The administration will also continue to support legislation proposed last year to amend the Internal Revenue code to provide tax
advantages for those who save and use the savings exclusively for
the costs of higher education. A preliminary estimate of this tax
expenditure in 1985, the first full year for the program, is $75
million.
TRAINING, EMPLOYMENT, AND OTHER LABOR SERVICES
Federal training and employment programs are designed to improve individuals' abilities to obtain and retain jobs and to facilitate the operation of the labor market. Those who have difficulty
getting and keeping jobs may receive skill training or information
on the location of suitable jobs and how to seek them. Other labor
services include the compilation of labor statistics and the regulation of employer-employee relations. In 1985, these activities are
expected to spend $5.6 billion, a decrease of $144 million from the
estimate of $5.8 billion for 1984.
Training and employment.—The major Federal activities for
training and employment are financed through grants to States for
training those having greatest difficulties in the job market, helping experienced workers displaced from their jobs into new work,
providing subsidized jobs for youth in the summer, and operating
the Employment Service. In addition, the Government contracts for
the operation of other job training programs, including the Job
Corps. In 1984, the Job Training Partnership Act (JTPA) fundamentally restructured the major employment and training programs. Private sector involvement was strengthened, State choice
was increased, training was strongly emphasized, and categorical
programs were consolidated into a flexible block grant. To provide
lead time for adequate planning, the 1984 budget authority for
JTPA programs will finance 21 months: a transition period from
October 1, 1983, to June 30, 1984, and the first program year from
July 1, 1984, to June 30, 1985. For 1985 and beyond, the budget
authority will finance a 12-month program year beginning on July
1 of the year for which the appropriation is made.
EDUCATION, TRAINING, EMPLOYMENT, SOCIAL SERVICES
5-101
Block grants to States.—Under JTPA the States, operating in
close cooperation with private sector employers, are designing programs to meet the needs of their populations and the opportunities
in the State job market. These programs are intended to prepare
youth and unskilled adults for entry into the labor force and to
provide job training to those who are in special need of such
training in order to obtain productive employment. Activities are
designed in conjunction with the Employment Service, educational
institutions, and other vocational activities in the area to prepare
individuals for jobs in the area. Although few restrictions are
placed on the States and the service delivery areas, JTPA requires
that 70% of the grant amount must be used for training, 90% of
the participants must be economically disadvantaged, at least 40%
of the resources must be spent for youth, and welfare recipients
must be served on an equitable basis. Outlays of $1.9 billion in 1985
reflect the budget authority provided to enable over 1 million
people to be trained in both program years 1984 and 1985.
Summer youth employment.—Under the summer youth employment program, grants are made to States in the spring of each year
to subsidize minimum-wage public sector jobs during the following
summer months for youth between the ages of 14 and 21. The 21month 1984 JTPA appropriation will finance about 718,000
summer jobs in 1984 and again in 1985; the request for 1985 will
continue that level in the summer of 1986. To permit more youth
to gain valuable work experience in real, private sector summer
jobs, the administration continues to urge legislation to reduce the
minimum wage for youth hired during the summer months. Such
legislation will create more jobs by reducing employers' costs to
levels closer to the value of the work produced by youth just
acquiring job skills. Youth with greater skills will, of course, be
able to command higher wages. Limiting the reduction to the
summer will allay fears that youth will replace adults in jobs. In
addition, the proposed legislation would penalize any employer who
fires a worker in order to hire a youth at the lower minimum
wage. A secondary effect of this legislation will be to reduce the
cost of the last resort public sector jobs subsidized by the summer
youth employment program. The budget estimates reflect proposals
that will be transmitted, after enactment of the legislation, to
rescind $174 million of the 1984 appropriation ($87 million for each
of the summers of 1984 and 1985) and to reduce the 1985 budget
request by $87 million for the summer of 1986.
Assistance to dislocated workers.—JTPA began a new grant program to help displaced workers obtain new jobs. As a result of the
continually changing economy, as new products are introduced and
old ones fall out of favor or competitive situations are altered, some
5-102
THE BUDGET FOR FISCAL YEAR 1985
workers find they are unable to retain their jobs or find new ones
requiring their skills where they live. With grants from the Federal Government, States can develop programs to help such workers
find new jobs. They can be shown new occupations that use their
skills, trained in new skills for which there is a demand, aided in
their job search, or helped to meet the costs of moving to new
locations where they have found long-term jobs. Of amounts available for these grants, 75% are distributed to States by formula and
the remainder is granted to States at the discretion of the Secretary of Labor based on applications describing special needs. The
1984 appropriation for JTPA included $94 million for this program
for the nine months from October 1, 1983, to June 30, 1984. In
addition, $26 million was appropriated specifically for training assistance to workers determined to have been displaced by increased
imports, making a total of $120 million available for displaced
workers. The 1984 appropriation also made $223 million available
for displaced workers in the program year beginning July 1, 1984,
which will be used for both purposes, as will the $223 million
requested for 1985. The Secretary will assure that adequate
amounts are made available within the discretionary grant portion
for workers displaced because of increased imports. Outlays for
these activities are expected to total $224 million in 1985.
Job Corps.—The Job Corps residential training program will continue to provide approximately 40,000 years of service in the 1985
program year. Increased appropriations for operating costs will be
combined with the continuing cost control program to keep the cost
of a year of service below $14,500. Outlays in 1985 are expected to
be $589 million, $20 million below 1984 when Job Corps camp
rehabilitation projects (initiated under a 1983 supplemental appropriation) are being completed.
Older Americans employment.—Part-time public service employment for older workers is provided under Title V of the Older
Americans Act through contracts with eight national service organizations and through grants to States. In 1985, the amounts available for grants to States will be allotted along with and under the
formula provided for grants for other services for older Americans
under Title III of the act. Outlays are estimated at $317 million in
1985.
Work incentive program.—This separate categorical program has
for years provided job services, training, and public service employment to recipients of aid to families with dependent children
(AFDC). Although its aim is to help curb welfare dependency, it
has not proved successful or cost-effective. The Job Training Partnership Act now requires equitable service to AFDC recipients in a
EDUCATION, TRAINING, EMPLOYMENT, SOCIAL SERVICES
5-103
program better designed to provide the skills needed for private
sector jobs. The AFDC program itself has been reformed to create
new opportunities for work and work experience. Further work
enhancement legislation is being proposed, as described in the
income security function. The need for this separate categorical
program has ceased. No appropriation is requested for 1985.
Other training programs.—Outlays of $258 million are estimated
in 1985 for other national training programs, including special
programs for veterans, native Americans, and migrant and seasonal farm workers. Within these amounts new training approaches
will also be tested, labor market information development supported, training programs evaluated, and technical assistance, training,
and support and administrative services provided to the Stateoperated and national programs.
Federal-State employment services.—Under the Wagner-Peyser
Act, as amended by JTPA, grants for the Employment Service are
made to States under a formula based on each State's share of the
civilian labor force and of unemployed individuals. These grants
support 100% of the cost of job search and placement services to
job seekers and recruitment and special technical services for employers. Employment services designed to meet national needs are
performed with additional grants to cover the costs under specific
agreements in accordance with the act. National activities to be
financed in 1985 include special services to veterans, collection of
general purpose labor market statistics, determinations of labor
needs under immigration laws, and administration of the targeted
jobs tax credit. In 1985, outlays for all these Employment Service
activities are estimated at $939 million.
Other labor services.—The Federal Government establishes and
enforces standards affecting the relationship between employers
and employees and between unions and their members. This includes enforcement of the minimum wage and related laws, regulation of welfare and pension plans, supervision of labor-management
relations, regulation of the equal employment practices of Federal
contractors, and assurances that election of labor union officials
are democratic and that such officials do not abuse their stewardship. In addition, the Government collects and disseminates employment and unemployment statistics and data on wages, prices,
and productivity. Outlays for these activities are estimated at $703
million in 1985.
Tax expenditures.—Training and employment is encouraged
through a diverse group of tax expenditures. The largest employment incentive is provided by the deduction for two-earner married
couples, $6.8 billion in 1985. This provision, enacted as part of the
5-104
THE BUDGET FOR FISCAL YEAR 1985
Economic Recovery Tax Act of 1981 (ERTA), reduces the marriage
penalty that arises because the income of second earners is stacked
on top of their spouse's earnings, and thus taxed at higher marginal tax rates than if the second earner had been taxed as a single
person. ERTA also expanded the credit for child and dependent
care and created a special exclusion for employer payments for
child care. These provisions, designed to provide work incentives
for families with children, are estimated to be $2.6 billion and $90
million, respectively, in 1985. The administration proposes to
modify the dependent care credit by increasing benefits for lowand moderate-income families. Enactment of this proposal will increase tax expenditures $140 million in 1985.
The targeted jobs tax credit, estimated at $1.0 billion in 1985,
provides incentives for employers to hire disadvantaged individuals
from certain target groups and recipients of certain welfare payments. Legislation will be proposed to extend this tax credit for 1
year past its current expiration date of December 31, 1984. Special
tax credits for employee stock ownership plans (ESOPs) are designed to encourage employee ownership of their employer's stock.
The tax expenditure from the ESOP provisions is $3.6 billion in
1985. Total tax expenditures for training and employment are $14.2
billion in 1985.
Related programs.—A number of other Federal programs are
related to training and employment. Job training services provided
by the Veterans Administration are included in the veterans function; job safety and health activities are included in the health
function; and activities relating to job discrimination on the basis
of race, age, or sex are included in the administration of justice
function.
SOCIAL SERVICES
The Federal Government makes grants to States and to local
public and private institutions to defray the costs of a variety of
social services. The beneficiaries of these services are low-income
persons, the elderly, the disabled, children, youth, and native
Americans. Outlays for social services are expected to decrease
from $7.0 billion in 1984 to $6.8 billion in 1985.
Social services block grant.—Block grant funding of social services gives States wide discretion in determining the types of services offered and who is eligible to receive them. Services provided
by States include child day care, foster care, child protective services, homemaker services, family planning, preparation and delivery of meals, transportation, counselling, legal services, and day
care for adults. Funds may also be used for State and local administrative costs and are distributed among the States on the basis of
EDUCATION, TRAINING, EMPLOYMENT, SOCIAL SERVICES
5-105
population. States may transfer up to 10% of any block grant
allotment to other block grants that support health services, health
promotion and disease prevention activities, or low-income home
energy assistance.
Budget authority of $2.7 billion is requested for the social services block grant in 1985.
Rehabilitation services.—-This program makes formula grants to
States for services to physically and mentally handicapped individuals to help them become gainfully employed and live more independently. It also supports smaller discretionary programs and
projects. Budget authority of $1.1 billion is being requested in 1985,
which would maintain the formula grant at its current level. The
budget also requests funding of $5 million for a new grant initiative to help selected States develop supported work opportunities
for severely disabled persons.
Community service programs.—In 1985, budget authority of $3
million is requested to close out the community services block
grant. States may fund community services activities with social
services block grant funds.
Family social services.—In 1985, budget authority of $642 million
is requested for foster care, adoption assistance, and a consolidated
program for child welfare services and training. Funds support
State activities designed to reunite children with their families or
to place them promptly in adoptive homes when this is not possible. The budget reflects a policy that taking children from their
homes and placing them in foster care should be an explicitly
short-term, last resort solution to children's problems. An incentive
sytem will be proposed for 1985 that encourages States to resolve
children's problems quickly, and return them to permanent homes.
The system will be restructured with the objective of reducing both
duration and incidence of foster care.
Services for children, youth, and families.—Federal funds for
these programs augment State, local, and nonprofit services designed to improve the lives of low-income, neglected, abused, or
homeless children. Budget authority of $1.1 billion is requested for
these programs in 1985, an increase of $57 million from the 1984
enacted level.
Funding in this area is almost entirely for Head Start, which
assists local community groups in providing comprehensive child
development programs for low-income preschool children and their
families. The 1985 funding level would allow Head Start to maintain enrollment at approximately 430,000 children. Beginning in
1985, Head Start projects would receive all program and nutrition
funding directly from the Department of Health and Human Serv-
5-106
THE BUDGET FOR FISCAL YEAR 1985
ices. In prior years, Head Start grantees applied to the Department
of Agriculture separately for nutrition funds. For this purpose, $80
million will be transferred from the Department of Agriculture to
the Department of Health and Human Services.
Services for the elderly and other special groups.—For 1985,
budget authority of $930 million is requested for support for elderly
people and other special groups. Grants are made to State and area
agencies on aging to assist in financing a range of programs for
older Americans, particularly those with the greatest economic and
social need. Services funded include transportation, information
and referral, and legal aid in addition to a variety of services
provided in the home. Funds are also used to serve meals in group
settings or to deliver meals to the homebound elderly. Legislation
will be proposed to consolidate Title III of the Older Americans Act
grants to States for services, meals, and administration. Consolidation of Title III grants will give States more flexibility to make
allocation decisions. As described above in the older Americans
employment section, State agencies on aging will offer public service employment.
Domestic volunteer programs.—The ACTION agency operates
three programs to support social service volunteering by citizens 60
and older and provides small grants to stimulate other volunteer
services. In 1985, Foster Grandparents will support 18,350 older
volunteers to work with 63,000 children with special needs. Enrollment in the retired senior volunteer program (RSVP) is expected to
rise from 359,000 in 1984 to 368,000 in 1985. These volunteers will
work on a great variety of community needs. The senior companions program will continue to support 4,400 volunteers to work
with 15,300 older shut-ins. Funds requested for the VISTA program
will complete the phase-out begun in 1982.
Tax expenditures.—The provision of social services by a wide
variety of private charitable and religious institutions is encouraged by the tax deductibility of contributions to those institutions.
The tax expenditure estimate for charitable contributions, other
than to educational and health institutions, is $11.8 billion in 1985.
In addition, the adoption of children with special needs is encouraged by a $1500 itemized deduction; this results in an estimate of
$15 million in 1985. For social services, tax expenditures total $11.8
billion in 1985.
Total tax expenditures for education, training, employment, and
social services are estimated to be $29.8 billion in 1985.
HEALTH
5-107
HEALTH
The Federal Government contributes to meeting the Nation's
health care needs by financing and providing health care services,
promoting disease prevention, and supporting research and training. A major problem for both individuals and the Federal Government in meeting health care needs is the rapid inflation of health
care costs. Increasingly expensive health care costs undermine the
American people's ability to purchase needed health care. Federal
policies in the past have contributed significantly to the growth of
health care costs. The budget contains major initiatives to reduce
cost increases. These include building on reforms legislated recently by the Congress, steps to control costs in medicaid, as well as a
limit in tax subsidies for employment-based health insurance.
Health care services.—More than 80% of Federal outlays for
health in this function is devoted to financing or providing health
care services directly to individuals. Federal outlays for health care
services are estimated to rise from $24.6 billion in 1984 to $26.6
billion in 1985 and $28.2 billion in 1986. In the past, budget authority and outlays for medicare have been classified in this subfunction. Beginning this year, medicare is classified with social security
in the subsequent function.
Medicaid.—Estimated Federal medicaid outlays of $22.1 billion
in 1985, and an additional $19 billion provided by States, are expected to finance care for 22.9 million poor Americans. Medicaid is
expected to aid one in every nine Americans in 1985.
Since 1981, significant medicaid reforms that increased program
economy and effectiveness have been enacted in the Omnibus
Budget Reconciliation Act of 1981 (OBRA) and the 1982 Tax Equity
and Fiscal Responsibility Act (TEFRA).
OBRA reformed medicaid by establishing target amounts for
medicaid cost increases to encourage States to limit the program's
explosive growth by reducing Federal matching funds for States
whose spending exceeds targets. TEFRA authorized States to
expand copayments on certain medicaid beneficiaries and services.
The Congress also adopted a number of administration proposals to
increase the ability of States to assure continuation of basic health
care services to welfare recipients and to manage their programs
more efficiently and effectively.
For 1984, the administration proposed both to continue the OBRA
medicaid expenditure targets in 1985 and beyond and to require
States to set nominal copayments on certain mandatory medicaid
services to help deter unnecessary use of medical services. For
1985, the administration reproposes these two reforms.
5-108
THE BUDGET FOR FISCAL YEAR 1985
NATIONAL NEED: HEALTH
(Functional code 550; in millions of dollars)
1983
actual
Major missions and programs
BUDGET AUTHORITY
Health care services:
Medicaid:
Existing law l
1984
estimate
1985
estimate
1986
estimate
1987
estimate
14,795
22,280
-1,067
25,045
-1,117
27,392
-1,154
1,287
1,315
189
1,353
198
1,388
206
1,343
1,506
1,342
1,848
-432
2,087
-566
1,700
Subtotal, health care services
20,674
1,392
Proposed legislation
Health block grants:
Existing law
Proposed legislation
Federal employees' health benefits:
Existing law
Proposed legislation
Other health care services:
Existing law
Proposed legislation
1,776
-1
1,391
-4
1,399
6
1,416
-6
25,242 L _ 25,446
28,288
30,763
19,230
Health research:
National Institutes of Health research
Other research programs
3,814
438
4,356
494
4,440
503
4,529
511
4,252
4,759
4,850
4,943
5,040
210
243
38
Subtotal, health research
4,264
495
212
208
38
211
121
17
217
123
18
220
125
18
491
458
349
357
364
714
767
785
354
367
373
788
-5
375
790
-9
381
1,068
1,134
1,158
1,158
1,162
25,041
31,593
31,802
34,747
37,329
Education and training of the health care work
force:
Research training
Clinical training
Other
Subtotal, education and training of the
health care work force
Consumer and occupational health and safety:
Consumer safety:
Existing law
Proposed legislation
Occupational safety and health
Subtotal, consumer
health and safety
and
Total, budget authority
occupational
Health block grants.—Budget authority of $1.5 billion is requested for health block grants in 1985, $217 million more than the 1984
level. This increase reflects both funding increases for the existing
block grants and proposed legislation to expand the primary care
block grant to include narrow categorical programs for black lung
clinics, migrant health, and family planning. The block grants
allow States flexibility to coordinate and improve the effectiveness
of services for their citizens. States are able to streamline program
administration because unnecessary Federal regulatory, legal and
reporting requirements previously imposed on States and grantees
no longer apply.
5-109
HEALTH
NATIONAL NEED: HEALTH—Continued
(Functional code 550; in millions of dollars)
1983
actual
Major missions and programs
OUTLAYS
Health care services:
Medicaid:
Existing law
Proposed legislation
Health block grants.Existing law
Proposed legislation
Federal employees' health benefits:
Existing law
Proposed legislation
Other health care services:
Existing law
Proposed legislation
Subtotal, education and training of the
health care work force
Consumer and occupational health and safety:
Consumer safety-.
Existing law
Proposed legislation
Occupational safety and health
Total, outlays
ADDENDUM
Off-budget Federal entity:
Federal Financing Bank:
Health care services:
Budget authority
Outlays
23,196
-1,067
25,045
-1,117
27,392
-1,154
1,313
1,347
76
1,353
198
1,388
206
1,309
1,339
1,554
-240
1,756
-328
1,788
-1
1,663
_4
23,037
Other
20,237
1760
Education and training of the health care work
force:
Research training
Clinical training
health and safety-
1987
estimate
1,019
Subtotal, health research
and
1986
estimate
1,273
Health research:
National Institutes of Health research.
Other research programs
consumer
1985
estimate
18,985
Subtotal, health care services..
Subtotal,
1984
estimate
24,647
26,550
1,429
-6
28,217
1,427
-6
30,681
3,555
418
3,973
3,987
447
4,296
491
4,440
504
4,434
4,787
4,944
4,529
510
5,039
194
325
59
205
200
36
208
169
33
216
117
18
220
120
18
578
442
410
351
358
720
769
795
346
373
"373
798
-5
375
797
-9
380
1,066
1,143
1,168
1,168
1,168
28,655
30,665
32,916
34,680
37,246
12
-14
10
3
-7
occupational
-11
*$500 thousand or less.
1
The large increase in 1984 budget authority over that in 1983 is due to a technical change in the appropriations language for 1984 and
beyond.
Federal employees health benefits.—The budget includes savings
from the administration's proposal to reform the Federal employees' health benefits (FEHB) program.
FEHB is the world's largest, multiple-choice health plan. Since
Federal employees pay a share of the cost of the FEHB program
and have many plan choices available to them, competitive market
forces help to restrain FEHB cost increases.
5-110
THE BUDGET FOR FISCAL YEAR 1985
In 1983, for example, the average cost of health benefit plans
offered by private-sector FEHB carriers increased by over 20%.
After Federal employees made health plan selections for the year,
however, the actual increase in costs was only 4%.
The administration's FEHB reform legislation would build on the
competitive features of the FEHB program:
• The Federal Government's contribution for FEHB would no
longer be based on the average premiums of the six largest
plans in the program, but would be based instead on a broader measure of changes in cost.
• The current 75% limit on the Federal contribution to the cost
of any employee's health benefits would be dropped. If an
employee chose a plan with a cost lower than the Federal
contribution, he or she would be entitled to a rebate of the
difference. This would increase the incentives for employees
to select low-cost plans.
• A wider range of plans would be allowed to participate, increasing the number of choices available to employees and
sharpening competitive forces.
• Off-budget entities (such as the Postal Service) would be required to pay the Federal Government their fair share of the
cost of health benefits provided to their annuitants.
Taken together, these measures are expected to reduce outlays
for the FEHB program by 15% below current levels, or about $240
million in 1986.
Other health care services.—Legislation will be proposed to assist
Federally-funded health maintenance organizations in competing
with other health care providers by removing unnecessary Federal
requirements.
For 1985, the administration is requesting $49 million in budget
authority for the direct Federal subsidy for the care of District of
Columbia residents at St. Elizabeths Hospital. This request is a
reduction of $19 million from 1984 and represents the third year of
a 10-year phasedown of direct Federal subsidies for these residents.
In 1984, the District of Columbia will place in the community 200
nursing home patients and 89 drug and alcohol patients from the
hospital, which both reduces the hospital's operating costs and
complies with a Federal District Court order to place specified
patients in settings less restrictive than St. Elizabeths Hospital.
Legislation will also be proposed to establish a corporation to administer the hospital and other public mental health services provided to District of Columbia residents. This proposal and the
phasedown of direct Federal subsidies for St. Elizabeths Hospital
will make Federal policy with regard to the District of Columbia
consistent with the Federal relationship to other States and jurisdictions.
HEALTH
5-111
Budget authority of $742 million is requested for the Indian
Health Service (IHS) in 1985. In addition, the IHS will seek to
collect $67 million in third-party reimbursements for health services provided to American Indians and Alaskan Natives. Budget
authority for the National Health Service Corps (NHSC) is requested at a level of $67 million in 1985, a decrease of $24 million from
1984. Increased emphasis will continue to be placed on encouraging
NHSC scholarship recipients to enter into private practice in areas
with a shortage of health professionals.
Health research.—In 1983, the Federal Government provided
more t h a n four-fifths of total national health expenditures for research, excluding drug and medical industries' research. The administration proposes to increase budget authority for health research from $4.8 billion in 1984 to $4.9 billion in 1985. These funds
primarily will support basic biomedical research conducted by the
National Institutes of Health (NIH). Support will be provided for
such activities as research project grants, research centers, training
of biomedical scientists, and the NIH intramural research program.
Funds are also requested for continued support of research on
chemical and related behavioral disorders, such as mental illness
and alcohol and drug abuse, as well as health services research and
health statistical activities.
Education and training of the health care workforce.—In 1985,
$349 million in budget authority is requested for these programs.
Since the supply of most health care professionals is now adequate,
direct Federal support for health professions training is no longer
essential. For this reason, budget authority requested for clinical
training of health care professionals decreases from $208 million in
1984 to $121 million in 1985. The budget emphasizes support for
minority health professions schools and disadvantaged students. In
1985, 13,000 students in health programs will be supported by an
estimated $175 million in new loan guarantees under the health
education assistance loan program. Direct support will continue for
about 10,000 students pursuing careers in health-related research.
Consumer and occupational health and safety.—Budget authority
of $1.2 billion in 1985 is requested for protecting consumers from
unsafe and defective products and for protecting workers from
occupational hazards.
Consumer safety.—Budget authority for consumer safety activities is proposed to be $785 million in 1985. Funding will support
research, dissemination of information, and regulatory measures to
protect consumers from unreasonable consumer risks. Inspections
will be continued to assure the safety and efficacy of drugs, medical
5-112
THE BUDGET FOR FISCAL YEAR 1985
devices, and foods. Legislation will be proposed in 1985 to provide
for more efficient meat and poultry processing inspection methods.
Occupational safety and health.—The budget includes $373 million in budget authority to improve occupational safety and health
in 1985. The Occupational Safety and Health Administration
(OSHA) and the Mine Safety and Health Administration (MSHA)
in the Department of Labor issue and enforce standards to eliminate workplace hazards causing injury, illness, or death. During
1984 and 1985, both OSHA and MSHA will continue efforts to
revise or eliminate standards that burden employers without enhancing protection for workers. Resources will be focused on those
activities most likely to ensure safe and healthful working conditions. Cooperative and voluntary efforts of employers and employees to increase workplace safety and health will be encouraged.
Credit programs.—The health function includes several small
loan and loan guarantee programs, including health-related student loans and assistance to health maintenance organizations. The
proposed total credit budget for health programs is $181 million in
1985.
CREDIT PROGRAMS—HEALTH
(In millions of dollars)
Actual
1983
Direct loans:
Health programs:
New obligations
Net outlays
Outstandings
Health programs (loans held by the FFB):*
Net outlays
Outstandings
Total, direct loans:
New obligations....
Net outlays
Outstandings
Guaranteed loans:
Health programs.New commitments.
Net change
Outstandings
Total credit budget (new obligations and new
commitments)
Estimate
1984
1985
1986
1987
15
-224
650
13
-4
646
6
-4
642
6
-16
626
5
-5
621
-14
272
273
-7
265
-10
256
-11
245
15
-238
923
13
-3
919
6
-11
908
6
-25
882
5
-16
866
230
304
1,558
250
197
1,754
175
118
1,873
175
123
1,996
175
123
2,119
245
263
181
181
180
*$500 thousand or less.
1
The direct lending activities of these programs are financed by the FFB. Loan assets are issued by the agency. According to law, these
assets are backed by loans that the agency continues to service. The agency guarantees the loan assets, sells them to the FFB, and repurchases
them upon maturity. FFB net outlays for this account represent acquisition of loan assets less repurchases by the agency. Increases in the volume
of sales of loan assets are added to FFB direct loan outstandings, while the agency's direct loan outstandings decrease by the amount of loan
assets sold to the FFB.
HEALTH
5-113
Tax expenditures.—Federal tax laws help finance health care by
allowing employees to exclude from their taxable income the insurance premiums paid by their employers. The estimate for this
provision is $28.2 billion for 1985. Individuals also are permitted to
itemize as deductions certain expenses for health care. The Tax
Equity and Fiscal Responsibility Act increased the floor under the
itemized deduction for medical expenses from 3% to 5% of adjusted
gross income, and eliminated the separate deduction of health insurance premiums. In 1985, the estimated tax expenditure for these
deductions is $3.4 billion. In addition, health-related charitable contributions result in a tax expenditure estimate in 1985 of $1.9
billion, and the exclusion of interest on State and local hospital
bonds results in an estimate of $1.8 billion. After 1982, a tax credit
of 50% is allowed for qualified clinical testing of drugs used to
treat certain rare diseases or conditions. The estimate for this
provision is $25 million in 1985. Estimated tax expenditures for
existing health provisions total $35.7 billion in 1985.
The current tax subsidy for the cost of health insurance premiums paid by employers has artificially increased the value of this
fringe benefit. Thus, it has stimulated excessive health insurance
coverage and contributed to health care cost inflation, because
consumers have no incentive to hold down costs if they bear only a
very limited part of the costs directly. The administration proposes
to limit the subsidy to the portion of the monthly premium up to
$175 for a family plan and $70 for an individual plan. This legislative proposal would continue the subsidy at a level sufficient to
promote adequate coverage, but one that would make the tax law
neutral with respect to wages and added health insurance. This
proposal would reduce the current tax expenditure by $4.0 billion
in 1985.
Related programs.—The Federal Government supports health-related expenditures that are reported in other functions. Among the
most important are medicare, in the following function, and medical care for veterans and military personnel, in both veterans
benefits and services and national defense. Agency contributions to
Federal employees health benefits were described under health
care services, but are included in undistributed offsetting receipts.
5-114
THE BUDGET FOR FISCAL YEAR 1985
SOCIAL SECURITY AND MEDICARE
The Federal Government contributes to the income security and
health of aged and disabled Americans through social security and
medicare. Social security and medicare together represent 28% of
estimated Federal outlays in 1985 and provide benefits to one in
every six Americans. Because of the importance of these two programs, the Social Security Amendments of 1983 require that they
be "treated as a separate major functional category in the
budget. . . ." This is the first budget in which this single function
has been used.
The management review process and concentration on agressive
debt collection targets by the Department of Health and Human
Services will result in outlay reductions in this function in excess
of $400 million per year beginning in 1984.
Social security.—Old-age and survivors insurance (OASI), and
disability insurance (DI) touch the lives of virtually all American
either through benefits received or through payroll taxes deducted
from earnings. In almost all cases, beneficiaries have paid during
their working years to help support these programs. Outlays for
the combined OASDI programs are estimated to increase from
$179.2 billion in 1984 to $190.6 billion in 1985 because of:
• benefit increases tied to the consumer price index;
• an increase in the number of aged persons receiving benefits;
and
• increases in individual earnings histories upon which benefits
are based.
Budget authority for OASDI reflects the increase in receipts that
would result from a legislative proposal, discussed in the health
function, to include as taxable income the employer contributions
to employees' health insurance plans.
On April 20, 1983, the President signed into law the Social Security Amendments of 1983. This legislation, recommended by the bipartisan National Commission on Social Security Reform and endorsed by the President, the Speaker of the House, and the Majority Leader of the Senate, was enacted to assure the solvency of the
OASI trust fund. The main provisions of the legislation:
• extend social security coverage to government workers and
others not previously covered by social security;
• tax a portion of benefits paid to higher income beneficiaries;
• shift automatic increases in benefits to a calendar year basis;
• reschedule social security payroll tax increases;
5-115
SOCIAL SECURITY AND MEDICARE
NATIONAL NEEDS: SOCIAL SECURITY AND MEDICARE
(Functional code 570; in millions of dollars)
1983
actual
Major missions and programs
BUDGET AUTHORITY
Social security:
OASI:
Existing law
Proposed legislation
Dl:
Existing law
Proposed legislation
Offsetting interest receipts and other*
16,813
1986
estimate
1987
extimate
17,474
18,052
78
19,384
137
21,001
181
760
184,133 175,900 198,467 213,237 227,044
31,485
45,284
51,011
215
19,147
22,434
5
25,661 29,504 33,772
- 6 6 9 -1,034 -1,218
-4,253 -4,960 -5,908
-107
24
15
Subtotal, medicare
46,403
Total, budget authority.
1985
estimate
166,560 158,426 179,529 192,974 205,345
742
517
Subtotal, social security
Medicare:
Hospital insurance:
Existing law
Proposed legislation
Supplementary medical insurance:
Existing law
Proposed legislation
Premiums and collections:
Existing law
Proposed legislation
Offsetting interest receipts and other 3
1984
estimate
62,778
70,203
59,795
1,085
71,286
1,877
-6,439 - 6 , 8 7 0
-915 -2,058
81,996
96,789
230,536 238,678 268,670 295,233 323,833
OUTLAYS
Social security:
OASI
Dl
Subtotal, social security.
Medicare:
Hospital insurance:
Existing law
Proposed legislation
Supplementary medical insurance:
Existing law
Proposed legislation
Premiums and collections:
Existing law
Proposed legislation
Subtotal, medicare..
Total, outlays
1
The annually appropriated budget authority exceeded programmatic requirements.
420-000 0 - 84 - 16 : QL 3
152,445 160,700 171,891 184,665 198,454
18,279 18,460 18,747 19,494 20,375
170,724 179,161 190,639 204,159 218,829
38,524
44,918
51,967
-214
56,280
-208
18,317
21,256
-150
24,669
-725
28,746 32,860
- 9 5 9 -1,163
62,293
-229
-4,253 -4,960 -5,908 -6,439 - 6 , 8 7 0
-107
-915 - 2 , 0 5 8
52,588
61,064
69,683
76,505
84,833
223,311 240,225 260,321 280,663 303,661
5-116
THE BUDGET FOR FISCAL YEAR 1985
• make self-employment tax rates equal to the combined employee-employer tax rates;
• reimburse the trust funds for costs that should be borne by
other appropriations;
• gradually raise the age of eligibility beginning in the year
2000; and
• create safeguards that stabilize and restore the solvency of
the OASI trust fund.
Medicare.—A major problem for both individuals and the Federal
Government has been the rapid inflation of health care costs.
Federal policies contributed significantly to health care cost increases in the past. The budget contains several initiatives to
reduce cost increases, building on reforms recently enacted by Congress. The administration is proposing legislation, which is estimated to save $1.05 billion in 1985 and greater amounts in later years.
Medicare outlays are estimated to be $69.7 billion in 1985. These
outlays are expected to finance services for approximately 28 million aged and more than 3 million disabled Americans. Since 1981,
the administration has proposed, and Congress has enacted, a
series of major medicare reforms, including the establishment of a
prospective payment system for hospital insurance. The 1985
budget builds on these achievements and proposes additional measures to achieve savings and improve services in medicare.
Supplementary medical insurance (SMI) is a voluntary program
for aged and disabled medicare beneficiaries who want to buy
additional medical insurance. When SMI began in 1966, beneficiary
premiums financed 50% of program costs; the remaining 50% was
financed by general revenues. From 1972 to 1982, however, the SMI
premium increase was constrained. As a result, SMI premiums
financed only 24.4% of program costs in 1982. The administration
is proposing three major changes to SMI. First, on January 1, 1985,
the SMI premium would be set at 26.67% of program costs and
would be increased 1.67 percentage points annually until it reaches
35% on January 1, 1990. Second, for a year, starting in July 1984,
medicare payments to physicans would temporarily remain at 1984
reimbursement rates. A third change, proposed for January 1,
1985, would require the SMI deductible to be updated annually
based on changes in the medicare economic index.
Other legislative proposals for medicare include beginning medicare eligibility with the first full month after the 65th birthday,
instituting a voluntary voucher program, and selecting medicare
contractors by competitive bidding.
SOCIAL SECURITY AND MEDICARE
5-117
Tax expenditures.—The exclusion from income tax of a portion of
most social security benefits (including those for dependents and
survivors) results in a tax expenditure estimate of $17.7 billion in
1985. The Social Security Amendments require that beginning in
1984 up to one-half of social security benefits may be taxed. This
provision will only affect single taxpayers whose incomes exceed
$25,000 or married taxpayers who file jointly and have incomes
exceeding $32,000. The threshold for married taxpayers filing separately is zero. This limited taxation of social security benefits will
reduce the tax expenditure estimates from levels that would have
prevailed under prior law.
Related programs.—A number of programs related to social security and medicare are discussed in the health and income security
functions.
5-118
THE BUDGET FOR FISCAL YEAR 1985
INCOME SECURITY
Federal programs in the income security function help meet
needs of individuals by insuring against loss of income resulting
from retirement, disability, death, or unemployment of a wage
earner, and by assisting the truly needy who are unable to provide
for themselves. Beginning with this budget, social security, which
has previously been included in this function, is reflected in a new
budget function along with medicare. The income security function
continues to include retirement and disability programs for Federal
civilian workers, railroad employees, and coal miners. Benefits for
retired military personnel, previously included in national defense,
are also now included in the income security function. Retirement
and disability benefits are financed by a combination of employer
and employee contributions and direct Federal payments. The
budget proposes reforms designed to ensure the long-term solvency
of these programs, including changes in timing of cost-of-living
adjustments.
The income security function also includes unemployment compensation programs and a wide range of housing, food, and cash
assistance to meet specific needs. The budget proposes reforms
designed to improve the administration of these programs and
better target assistance on families in greatest need. These proposals include expanded use of housing vouchers for the poor, new
programs to give welfare recipients work experience to help them
become more economically self-sufficient, and improved eligibility
and payment rules for food stamps and aid to families with dependent children.
General retirement and disability insurance.—A number of programs that provide retirement and disability benefits for railroad
workers, and coal miners are included here.
Railroad retirement.—The Railroad Retirement Board (RRB) administers retirement and disability benefits to 951,000 former railroad employees, their dependents, and survivors in 1985. RRB
benefits include social security payments, rail industry pensions,
and special federally funded windfall payments. Benefits are financed through payroll deductions by railroad employers and employees, payments from social security trust funds, and direct subsidies by the American taxpayer. Estimated 1985 outlays are $4.1
billion, including $405 million for the Federal windfall subsidy
component, which represents nearly $1,100 per active railroad employee. Current rail employees, whose annual income will average
over $35,000 in 1985, can expect to receive total annual RRB pensions after they retire that exceed their preretirement take-home
pay.
5-119
INCOME SECURITY
NATIONAL NEED: PROVIDING INCOME SECURITY
(Functional code 600; in millions of dollars]
Major missions and programs
BUDGET AUTHORITY
General retirement and disability insurance:
Railroad retirementSpecial benefits for disabled coal minersOther
Subtotal, general retirement and disability insurance.
Federal employee retirement and disability:
Civilian retirement and disability programs:
Existing law
Proposed legislation
Military retirement:
Existing law
Proposed legislation
Federal employees workers' compensation:
Existing law
Proposed legislation
Subtotal, Federal employee retirement and disabilityUnemployment compensation:
Existing law
Proposed legislation
Subtotal, unemployment compensation..
Housing assistance:
Subsidized housing
Public housing operating subsidies....
Other housing assistance
Subtotal, housing assistance
Food and nutrition assistance:
Food stamps and aid to Puerto Rico:
Existing law
Proposed legislation
Child nutrition and other programs:
Existing law
Proposed legislation
Subtotal, food and nutrition assistance..
Other income security:
Supplemental security income:
Existing law
Proposed legislation
AFDC and child support enforcement:
Existing law
Proposed legislation
Earned income tax credit
Refugee assistance
Low-income home energy assistance:
Existing law
Proposed legislation
Other
Subtotal, other income security..
Total, budget authority
1987
estimate
1983
actual
1984
estimate
3,275
1,726
42
6,275
1,706
50
5,326
1,290
66
5,448
1,731
72
4,843
1,732
5,043
8,031
6,682
7,251
6,655
34,855
36,818
39,049
949
41,924
2,548
44,847
2,992
(16,155) (16,795) 27,276
(-243)
49
30,732
54
33,948
53
215
-37
225
-41
1985
estimate
1986
estimate
335
216
35,190
37,026
67,513 75,437 82,023
29,348
26,406
21,824 22,351 24,366
142
79
99
29,348
26,406
21,903
22,450
24,508
8,365
1,547
113
6,837
1,031
154
4,267
1,124
192
6,486
1,108
200
8,816
1,162
186
10,025
8,022
5,582
7,795
10,165
12,815
12,156
11,980
-374
12,621
-365
13,095
-360
5,340
5,502
5,610
-49
5,798
-104
6,148
-173
18,154
17,657
17,167
17,950
18,709
8,560
8,376
9,362
-16
9,612
-16
9,987
-15
8,401
8,282
1,213
585
1,123
514
8,160
-652
1,044
360
8,606
-866
982
332
8,792
-846
923
317
1,975
1,875
254
265
1,875
208
1,875
202
1,875
204
20,989
20,435
20,341
20,726
21,237
118,748
117,578
207
-16
139,187 151,608 163,297
5-120
THE BUDGET FOR FISCAL YEAR 1985
NATIONAL NEED: PROVIDING INCOME SECURITY—Continued
(Functional code 600; in millions of dollars)
Major missions and programs
OUTLAYS
General retirement and disability insurance:
Railroad retirement
Special benefits for disabled coal miners
Pension Benefit Guaranty Corporation:
Existing law
Proposed legislation
Other
1983
actual
1984
estimate
3,811
1,737
3,860
1,709
4,057
1,708
-10
-17
-101
46
-154
61
5,581
5,496
5,670
20,963
22,232
-239
23,610
-418
4
2
Subtotal, general retirement and disability insurance...
Federal employee retirement and disability:
Civilian retirement and disability programs:
Existing law
Proposed legislation
Military retirement:
Existing law x
Proposed legislation
Federal employees workers' compensation:
Existing law
Proposed legislation
Federal employees life insurance fund
1985
estimate
1986
estimate
1987
estimate
4,199
1,735
4,277
1,735
11
-168
22
-199
75
5,846
5,910
25,588 27,432
- 8 2 2 -1,004
(15,945) (16,748) 17,624
-298
(-234)
18,920
-481
20,144
-515
215
-37
-580
-640
207
-16
-692
-749
225
-41
-837
Subtotal, Federal employee retirement and disability.... 20,563
21,569
40,017
42,634
45,404
31,464
20,727
20,069
19,460
18,777
Housing assistance:
Subsidized housing
Public housing operating subsidies.
Other housing assistance
7,786
1,542
228
8,584
1,180
277
9,314
1,175
419
Subtotal, housing assistance..
9,556
10,041
10,908
11,330
11,954
12,653
12,061
11,970
-374
12,607
-365
13,080
-360
5,299
5,561
5,539
-46
5,778
-100
6,120
-169
17,952
17,622
Unemployment compensation
Food and nutrition assistance:
Food stamps and aid to Puerto Rico:
Existing law
Proposed legislation
Child nutrition and other programs:
Existing law
Proposed legislation
Subtotal, food and nutrition assistance..
180
216
9,815 10,424
1,117 1,135
395
398
17,090 17,920 18,671
The Railroad Retirement Solvency Act of 1983, endorsed by rail
labor and management, averted a financial crisis threatening rail
pensions and enabled RRB to continue paying full pension benefits.
This legislation conformed rail pension contributions and payments
more closely to social security, added safeguards to protect social
security equivalent benefits, and provided temporary Federal rail
pension subsidies.
Special sickness and unemployment benefits for railroad employees and proposed legislative reforms are discussed in the unemployment compensation section below.
5-121
INCOME SECURITY
NATIONAL NEED: PROVIDING INCOME SECURITY—Continued
(Functional code 600; in millions of dollars)
Other..
Subtotal, other income security..
Total, outlays
1984
estimate
1985
estimate
1986
estimate
1987
estimate
8,724
8,554
9,365
-16
9,612
-16
9,987
-15
8,392
8,079
1,213
524
1,123
599
8,355
-652
1,044
419
8,606
-866
982
352
8,792
-846
923
324
1,993
1,887
188
1,688
26
1,848
1,875
261
216
205
205
21,096
20,503
20,605
20,750
106,211
Other income security:
Supplemental security income:
Existing law
Proposed legislation
AFDC and child support enforcement:
Existing law
Proposed legislation
Earned income tax credit
Refugee assistance
Low-income home energy assistance:
Existing law
Proposed legislation
1983
actual
250
Major missions and programs
95,957
474
443
202
160
21,245
114,360 117,939 121,960
ADDENDUM
Off-budget Federal entity:
Federal Financing Bank:
Housing assistance:
Budget authority
Outlays
1,200
1,169
1,200
1,133
1,200
1,117
* $500 thousand or less.
1
As discussed in the introduction to this part, the creation of a new military retirement trust fund in 1985 causes a severe discontinuity in
the data for this function beginning in 1985. The data in parentheses and italics show the adjusted levels for earlier years comparable to the
revised usage that begins in 1985.
Special benefits for disabled coal miners.—Miners who suffer
from chronic dust disease of the lungs and who meet specified
medical criteria are entitled to monthly cash payments and medical benefits. Cash payments are also made to their dependents and
survivors. The basic monthly cash payment is based on the GS-2
Federal salary level. Total outlays are estimated to be $1.7 billion
in 1985.
Pension Benefit Guaranty Corporation (PBGC).— This Government corporation was established in 1974 to insure pension benefits
promised workers by their private employers. When a defined
benefit pension plan is terminated by a sponsoring employer, the
Corporation pays the monthly pensions required by the particular
plan, up to a maximum set by law. The Corporation may also lend
insolvent multi-employer plans amounts needed to prevent termination, thereby forestalling Government responsibility to pay benefits promised by the plans. PBGC revenues include premiums
charged to all employers with defined benefit plans, earnings on
investments, and collections from sponsors of terminated plans.
Because liabilities assumed under terminated plans exceed income
5-122
THE BUDGET FOR FISCAL YEAR 1985
from all sources, the Corporation has a growing deficit that is
expected to reach $622 million by the end of 1985 under current
law. The budget reflects the administration's request that the Congress approve an increase in the single-employer premium to a
level sufficient to cover projected claims and amortize the current
deficit over a reasonable period of time. The administration also
supports legislation to revise the insurance program for singleemployer plans to prevent unwarranted assignment to the Corporation of liabilities for unfunded benefits.
Federal employee retirement and disability.—There are a number
of employee retirement and disability programs in the legislative,
judicial, and executive branches of the Federal Government. The
largest program is civil service retirement and disability. Beginning in this budget, payments to retired military personnel, previously classified in national defense, are included in income security.
Civilian retirement and disability programs.—Benefits are paid
to former employees, and their survivors, who meet eligibility requirements based on age and length of service. Currently, full
retirement benefits begin at age 55 for employees with 30 years of
service. Benefit levels are based on the employee's three highest
salary years, and are indexed to the consumer price index (CPI).
Current workers and their employing agencies each contribute 7%
of wages toward retirement costs. The remainder—about 50% of
total costs—is paid by taxpayers through annual Treasury payments to the civil service retirement fund. This retirement system
is separate from the social security system. However, new Federal
employees hired after December 31, 1983 are covered under a combination of civil service retirement and social security. Under existing law, in 1985 an estimated 2.0 million retirees and survivors will
receive payments totaling an estimated $23.6 billion in outlays.
The administration continues its strong support of civil service
retirement reforms proposed in the 1984 budget. In 1985, the administration will focus its legislative effort on three proposals: costof-living adjustment (COLA) reform, a high 5-year salary average
for the benefit formula, and increased employee and agency retirement contributions.
• Cost-of-living adjustments (COLAs).-A set of proposals would
change the way civil service annuities are increased to reflect
changes in the cost of living. The payment date for the next
COLA increase would be shifted from June 1984 to January
1985, the CPI measurement period would be adjusted accordingly, and subsequent COLA increases would be paid in January of each year, as proposed in both the Senate and House
versions of reconciliation legislation pending in the 98th Con-
INCOME SECURITY
5-123
gress. The 1982 Reconciliation Act provision for a minimum
3.3% COLA in 1985 for retirees under age 62 would be eliminated. Beginning in 1986, the civil service retirement COLA
would be limited to the lesser of the increase in Federal white
collar pay or the CPI. This proposal is similar to a provision
of the recently enacted Social Security Amendments of 1983.
Finally, civil service retirement COLAs would be limited to
55% of regular COLAs on the amount of annuities that
exceed $10,000 in 1985. The $10,000 level would be adjusted
for inflation in future years.
• Base annuity calculations on the retiree's highest five years of
earnings, instead of the highest three.—Prior to 1970, a period
of relatively low inflation, the formula for computing annuities was based on the average of an employee's five highest
salary years; since then the three highest salary years have
been used. Employees now eligible for retirement or within
three years of retirement eligibility would not be affected.
• Increase employee and agency contributions for retirement.—
Although retirement costs have skyrocketed, the portion withheld from Federal employees' salaries has remained constant
at 7% since 1969. The budget proposes to increase the employee contribution to 8% in 1985 and 9% in 1986. Agency contributions for retirement would also increase by equal amounts.
The increase would apply to all Federal agencies and offbudget entities, including the Postal Service and the District
of Columbia government, for employees who participate in
the civil service retirement system.
The budget also proposes changes to Federal civilian retirement
that are consistent with enacted reforms in social security. These
include deleting the guaranteed minimum benefit for future annuitants and phasing out special benefits for adult students. In addition, new D.C. government employees hired after September 30,
1984 would not be eligible for coverage under civil service retirement and employee life and health insurance.
In 1985, the total reform package would increase receipts by $0.9
billion, and would reduce outlays by $0.4 billion.
Military retirement.—Benefits are also paid to former military
personnel and their survivors. It is estimated that there will be 1.5
million military retirees and survivors in 1985 receiving a total of
$17.6 billion in outlays under current law. Normal retirement eligibility is attained at 20 years of service. The initial benefit is 2.5%
of final basic pay per year of service. For personnel entering after
September 1980, the average of the member's highest three years
basic pay will be used instead of final basic pay. Benefits are
indexed to the CPI. Consistent with legislation for civil service
retirement, the budget proposes to shift the payment date for cost-
5-124
THE BUDGET FOR FISCAL YEAR 1985
of-living adjustments for military retirement to January of each
year. This proposal would save an estimated $0.3 billion in 1985
outlays. Military personnel also make contributions to and are
eligible for social security.
The financing of military retired pay has been changed in this
budget. Through 1984, retirement benefits were financed by a
charge to the Department of Defense, and were included in the
national defense function. Beginning in 1985 a newly created trust
fund will make the benefit payments, and this will be included in
the income security function. The new trust fund will be financed
from charges to the Defense budget for the estimated cost of future
retirement benefits being currently earned by active military personnel, along with payments from the general fund for the cost of
retirement benefits earned by personnel who are already retired.
The establishment of this new trust fund will shift the funding of
military pensions to a basis more comparable to most Federal
civilian pensions. The new treatment of military retired pay substantially affects the figures for the income security function. For
1985, the income security function includes $27.3 billion in budget
authority and $17.3 billion in outlays for military retirement. Comparable levels of budget authority and outlays for 1983 and 1984
are shown in parentheses in the budget authority and outlays
table. In addition, the introduction to Part 5 provides a more
detailed explanation of these changes.
Federal employees workers' compensation.—The Department of
Labor provides tax-free cash and medical benefits to Federal employees or their survivors for job-related injuries, illnesses, or
deaths. About 46,000 workers with long-term disabilities, or their
survivors, will receive monthly payments in 1984. As a result of
increased efforts to return recipients to work and to remove those
no longer eligible from the rolls, estimated 1985 recipient levels are
unchanged from 1984. Consistent with proposed legislation for civil
service retirement, the budget proposes to shift payment of the
cost-of-living adjustment from April 1985 to January 1986, with
subsequent COLA's to be payable in January of each year.
Unemployment compensation.—About 97% of wage and salaried
employment in the United States is covered by unemployment
compensation programs that pay benefits to individuals who are
temporarily out of work and are searching for jobs. Based on the
economic assumptions described in Part 2, an estimated average of
3.0 million workers per week will receive unemployment benefits
during 1984 and 2.8 million workers in 1985. Outlays are estimated
to decrease from $20.7 billion in 1984 to $20.1 billion in 1985 due to
a decline in the projected average unemployment rate from 8.0%
in fiscal year 1984 to 7.6% in 1985.
INCOME SECURITY
5-125
Regular benefits (usually up to 26 weeks) are financed by a State
tax on employers, and vary according to benefit levels set by each
State. State and Federal administrative costs are financed by a
Federal tax on employers.
Extended unemployment benefits, which increase by 50% the
number of weeks an unemployed worker can receive unemployment compensation, are payable in States with high rates of unemployment among covered individuals, as defined by statute. The
total number of weeks of regular and extended benefits may not
exceed 39. Extended benefits are financed in equal portion by State
and Federal taxes on employers.
A temporary program, Federal supplemental compensation
(FSC), pays up to 14 additional weeks of benefits to those who use
up all their weeks of regular and, where available, extended benefits. The number of weeks available varies by State, depending on
the current and previous level of unemployment among covered
individuals in the State. FSC will be payable until March 31, 1985.
It is estimated that $4.1 billion of FSC benefits will be paid during
fiscal years 1984 and 1985.
In 1985 the Department of Labor, working with the State employment security agencies, will implement a quality control program. The quality control system will uniformly measure the accuracy of unemployment insurance payments in a systematic and
representative sample of individual claims. It will identify eligibility and benefit errors and determine their causes. Using information from the system, State administrators will be able to identify
sources of payment inaccuracies and allocate resources to correct
them.
Former civilian Federal employees receive unemployment compensation through the State system on the same terms as those
covered under State laws. Beginning with the fifth week after
discharge or release from the armed services, up to 13 weeks of
unemployment compensation benefits are also available to ex-servicemembers, including those who quit the service voluntarily. Benefits to former Federal employees are financed by the Federal agencies that employed them.
In addition to regular unemployment compensation programs,
special extra benefits are available to certain workers under specific circumstances, such as former Conrail employees. In addition,
special trade adjustment assistance benefits are available for workers deemed unemployed because of increased imports.
The Railroad Retirement Board (RRB) administers special sickness and unemployment payments for railroad employees. Railroad
employment is the only sector that is not covered by regular unemployment insurance. When employer payroll contributions are insufficient to pay benefits, the railroad unemployment fund borrows
5-126
THE BUDGET FOR FISCAL YEAR 1985
from the RRB rail pension fund. Even under the most optimistic
assumptions, the railroad unemployment fund will owe the rail
pension fund almost $1 billion by the end of 1985. The Congress
recognized this problem and directed that reform options be studied and reported by April 1984.
The budget includes a proposal to solve this problem by extending regular Federal and State unemployment insurance coverage to
rail employees, as supported by the administration last summer.
Under this comprehensive proposal, the rail sickness and unemployment insurance funding crisis would be resolved and all debts
to the rail pension fund would be repaid by 1994. Under regular
unemployment insurance programs, rail workers would be eligible
for higher maximum weekly benefits, expanded job search opportunities, and the extended benefits available to all covered workers.
Special transition provisions would help States adapt to coverage of
railroad employment without additional financial burdens. Railroad labor and management would be freed from inappropriate
Federal intrusion in their affairs and would be authorized to bargain collectively over sickness insurance payments. These sickness
insurance payments would continue to be administered by the
Railroad Retirement Board.
Housing assistance.—The Federal Government provides housing
subsidies for low-income households and individuals through several programs administered by the Department of Housing and
Urban Development (HUD) and the Farmers Home Administration
in the Department of Agriculture (USDA). Eligibility is generally
limited to households with annual incomes below 50% of median
income in each community. Tenants are required to contribute up
to 30% of their cash income toward rent, with the Federal Government paying the remaining costs through the subsidy programs
described below.
At the end of 1983, 3.7 million households were receiving HUD
housing assistance and another 82,000 were receiving rental subsidies through USDA-administered programs. In 1984, the Congress
provided funding to subsidize 100,000 additional households
through HUD programs and 1,100 additional households through
USDA. The 1985 budget proposes to subsidize the same number of
additional households for HUD and maintain the current level of
households subsidized by USDA. A total of $5.6 billion in budget
authority is proposed for 1985, compared to $8.0 billion in 1984.
The decline largely reflects the administration's proposal to expand
the use of less costly and more flexible housing vouchers in 1985.
As a result of 1984 and 1985 funding, and completion of units
currently under planning or construction, the number of households receiving subsidized housing through HUD and USDA will
increase to over 4.0 million by the end of 1985.
INCOME SECURITY
5-127
Subsidized housing.—There are two main types of subsidized
housing. Subsidies are either earmarked for specific publicly or
privately owned units or are "portable" and can be used for any
private units meeting housing quality standards and renting at or
below a specified level.
At the end of 1983, HUD subsidized 0.7 million families who live
in newly constructed or substantially rehabilitated privately owned
units. HUD makes a 20-30 year commitment to landlords to pay
the portion of the monthly rent not covered by the required tenant
rent contribution. At the time of construction HUD makes the full
long term obligations to cover subsidies for both capital and operating costs. This program is often referred to as Section 8 new
construction housing assistance. Over the next 30 years, subsidies
for current commitments will result in about $92 billion in outlays.
In 1983 Congress repealed authority to make new commitments in
the Section 8 new construction program, except for units built with
elderly housing loans. The budget proposes to add 10,000 Section 8
new construction units in 1985 for the elderly or handicapped, with
budget authority of $160,000 per unit.
At the end of 1983, there were an additional 1.0 million households living in other privately owned units, which receive subsidies
under a variety of smaller HUD programs.
In addition, at the end of 1983, 0.7 million families lived in
private housing units subsidized by Section 8 existing housing assistance. These subsidies are not for specific units, but are for low
income tenants to help them afford market rents. Tenants may
select any private unit that meets housing quality standards and
does not exceed a maximum rent level. HUD pays the difference
between the actual rent and the tenant's contribution.
In 1983 the Congress enacted the administration's proposed housing voucher program as a reform of the Section 8 existing housing
program. HUD provides a voucher equal to the difference between
the area's private market rent level (the payment standard) and
the tenant rent contribution. Unlike the Section 8 existing program, tenants retain the savings if they select units that rent
below the payment standard. This gives them a powerful incentive
to shop for high quality but low cost units. The voucher program
also reduces the Federal Government's subsidy commitment from
15 years to 5 years. This shortened commitment will allow greater
flexibility to adjust or reconsider subsidized housing policies in the
future. The Congress authorized funding for 15,000 vouchers in
1984. The budget proposes to fund 87,500 additional vouchers in
1985 and to begin converting remaining tenants in the Section 8
existing housing program to the new voucher program as current
lease and subsidy commitments expire.
5-128
THE BUDGET FOR FISCAL YEAR 1985
At the end of 1983, 1.3 million households lived in units owned
and operated by local public housing authorities (PHA's). HUD
repays obligations incurred by local PHA's for the capital and
interest costs (generally new construction or substantial rehabilitation plus any subsequent modernization) of public housing projects.
Over the next 40 years, HUD will repay $68 billion in currently
outstanding PHA obligations. Public housing operating costs are
funded separately and are described later in this section.
The 1985 budget proposes to continue the level of new public
housing production on Indian reservations, with 2,500 public housing units in 1985, with budget authority of $156,000 per unit. In
addition, this budget continues the administration's emphasis on
public housing modernization by requesting the 1984 level of $1,550
million in budget authority.
Finally, the budget provides $907 million in 1985 budget authority to fund the increased interest costs of replacing short-term
public housing construction financing with long-term obligations
through the Federal Financing Bank (FFB). This permanent FFB
financing will reduce the Federal Government's exposure to fluctuations in short-term market conditions and will be a more efficient
financing vehicle.
Public housing operating subsidies.—HUD funds the difference
between total public housing operating costs (based on a HUDestablished cost formula) and income from tenant rents and other
sources. The budget includes $1.1 billion in budget authority in
operating subsidies for the 1.3 million existing public housing
units. The budget also proposes to rescind $330 million in excess
operating subsidy funds appropriated for 1984. Higher tenant rents
and reduced costs resulting from lower inflation, some minor program reforms, and energy conservation measures account for
lower-than-projected operating subsidy requirements.
Other housing assistance.—A number of smaller housing programs are included here, with estimated 1985 outlays of $419 million. The largest program is Department of Agriculture (USDA)
rural rental housing assistance program. The USDA program operates similar to HUD Section 8 new construction subsidies described
above, but subsidy contracts are for a shorter term. The budget
includes budget authority to renew expiring subsidy contracts and
maintain the current level of subsidized households. The USDA
also helps farmers construct housing for farm laborers. In addition,
the USDA finances low-income homeownership and construction of
rental housing through programs described in the commerce and
housing credit function.
INCOME SECURITY
5-129
Food and nutrition assistance.—Low- and middle-income families
and individuals receive food and nutrition assistance through a
number of Federal programs.
Food stamps and aid to Puerto Rico.—Food stamps help lowerincome Americans maintain a nutritious diet. Eligible households
receive monthly allotments of stamps based on income and household size to finance food purchases. These benefits are entirely
federally funded; administrative costs are shared equally by the
States and the Federal Government. Monthly food stamp participation is estimated at 20 million individuals in 1985, with associated
Federal outlays of $11.1 billion under current law. Outlays for the
nutrition assistance block grant for Puerto Rico are estimated to be
$825 million in 1985.
Efforts to improve program administration highlight this year's
budget proposals. Overpayments currently account for more than
9% of all benefits and cost the American taxpayer more than $1
billion annually. States lack sufficient financial incentives to improve administration, because benefits are 100% federally financed.
To encourage States to improve program integrity, the budget includes legislation, first proposed in the 1984 budget, to hold States
liable for overpayments that exceed 3% of the value of total benefits. The other major assistance programs, aid to families with
dependent children (AFDC) and medicaid, already operate under a
3% error rate limit.
The administration is proposing, as it did in 1984, that all States
adopt a community work experience program, in which employable
recipients must participate in work-related activities as a condition
of their eligibility. This program, which parallels an AFDC proposal, would encourage recipients to find work in the private sector or
perform useful public services when no private job is available.
These legislative proposals would save an estimated $374 million in
1985 food stamps outlays. The total number of individuals receiving
food stamps would be largely unaffected by these proposals.
Child nutrition and other programs.—The child nutrition programs subsidize meals for children in schools, child care facilities,
and other institutional settings. Approximately 24.6 million young
Americans will receive federally subsidized meals in 1985. Subsidies include both cash payments and commodities. Federal outlays
in 1985 are estimated to be $5.5 billion for all programs in this
category.
Legislation is proposed to consolidate the child care and summer
feeding programs into a non-school food program grant for the
States. This would reduce costly and complicated Federal regulations and maximize State flexibility in providing nutrition assist-
5-130
THE BUDGET FOR FISCAL YEAR 1985
ance for meals consumed by children outside a school setting.
Outlays for this grant are estimated to be $414 million in 1985.
Another legislative proposal, first included in the 1984 budget,
would tie the reimbursement rate for all lunches to the cost-ofliving. In addition, the budget proposes to have verification of
eligibility for free and reduced price lunches made by State and
local offices with the ability to independently verify income information. These proposals would save an estimated $46 million in
1985 outlays.
The special supplemental food program for women, infants, and
children (WIC) will provide nutritious food supplements to an estimated average monthly caseload of 2.7 million low-income women
and their young children in 1985. It is designed to lessen health
problems associated with inadequate diets during critical stages of
child development. WIC outlays are estimated to be $1.3 billion in
1985.
Related food assistance programs in other functions,—The Commodity Credit Corporation (CCC) donates surplus food, such as
cheese, butter and nonfat dry milk to needy families, charitable
institutions and schools. CCC commodities valued at $1.2 billion are
expected to be donated in 1985. In addition, the Department of
Health and Human Services administers an elderly nutrition program with estimated 1985 outlays of approximately $500 million.
Other income security.—A number of other income security programs assist the poor. Estimated outlays for these programs are
$20.6 billion in 1985.
Supplemental security income.—The Federal supplemental security income program (SSI) will make cash payments to about 4
million needy, aged, blind, or disabled persons in 1985. Federal
outlays in 1985 are estimated at $9.4 billion, compared to $8.6
billion for 1984. Some States also finance supplements to the basic
Federal grant. The recently enacted Social Security Amendments
of 1983 contained several SSI changes, including a $20 monthly
benefit increase and a 6-month postponement of annual cost-ofliving adjustments, to January instead of July. In addition, the
budget reflects proposed legislation to improve coordination between SSI and social security payments.
Outlays in 1984 are lower than 1985 outlays primarily because
the 1984 figures include only 11 months of benefits; the first 1984
monthly payment was actually made in advance at the end of 1983.
The number of recipients is expected to remain steady in 1985,
despite some increased participation resulting from the social security amendments, because aged persons increasingly receive social
INCOME SECURITY
5-131
security benefits, which are higher than maximum SSI payment
levels.
AFDC and child support enforcement,—Aid to families with dependent children (AFDC) helps State and local governments finance cash assistance to needy families. States administer the
AFDC program, determining guidelines for eligibility and the level
of benefits within broad Federal rules. The Federal Government
reimburses States, on average, for slightly more than half of benefit costs. Child support enforcement (CSE) finances most State and
local administrative expenses for establishing paternity and collecting support from legally liable absent parents. These collections
offset State and Federal AFDC costs. Federal outlays for AFDC and
CSE are estimated to be $7.7 billion in 1985, compared to $8.1
billion in 1984. About 3.6 million families are expected to receive
AFDC benefits in 1985 under current law. Child support collections
on behalf of about 1.1 million of these families are also anticipated.
Reforms enacted in the Omnibus Budget Reconciliation Act of
1981 and the Tax Equity and Fiscal Responsibility Act of 1982 have
helped refocus AFDC on its original goal: to serve as temporary aid
where the resources for complete self-support do not exist. These
reforms created new opportunities for work experience, corrected
inequities that provided higher benefits from receiving welfare
than from working, and retargeted assistance more to the needy by
taking into account resources and income available to the family
that were previously not counted.
The budget continues to propose legislation previously included
in the 1984 budget to further reform the AFDC and child support
enforcement programs. Legislation is proposed to establish comprehensive programs of work-related activity for AFDC applicants and
recipients in all States; those who are able to work would be
required to do so as a condition of AFDC eligibility. Legislation is
also proposed to make the program more equitable for similarly
situated families by including all related adults and children in the
AFDC assistance unit, and adjusting payments for shelter and
utilities where costs can be shared with other household members.
Several new incentives are proposed to improve State and local
performance in collecting child support payments. These changes
would reform Federal financing rules to reward and encourage
increased collections and improved cost effectiveness. Tougher
State laws and procedures would also be required. These reforms to
AFDC and CSE will save an estimated $652 million in Federal
outlays in 1985 and a comparable amount in State and local costs.
Proposed child support reforms will also strengthen family responsibility and improve the financial situation of women.
420-000 0 - 84 - 17 : QL 3
5-132
THE BUDGET FOR FISCAL YEAR 1985
Earned income tax credit (EITC).—Wage earners with children
are eligible for tax credits if they earn less than $10,000. When the
credit exceeds a wage earner's income tax liability, the Treasury
Department makes a cash payment. Credits can be received as
additions to paychecks or as a lump sum at the end of the year.
Total 1985 outlays for these payments are estimated to be $1.0
billion. When the credit does not exceed the wage earner's tax
liability and no direct Treasury payment is made, the credit is
considered a tax expenditure rather than an outlay. In 1985, EITC
tax expenditures are estimated to be $280 million.
Refugee assistance.—The Federal Government fully reimburses
States for initial refugee and entrant welfare, health, employment
and English language training, and other services. Estimated 1985
outlays are $419 million. Assistance is designed to help refugees
become self-sufficient as soon as possible after they arrive in the
United States. Aid to refugees while they are overseas is discussed
in the international affairs function. Estimated total Federal assistance to refugees across all programs is $1.5 billion in 1985.
The administration plans to provide assistance to refugees during
their first 90 days after arrival in the United States, principally
through voluntary agencies rather than through State and local
welfare departments. Since nearly all refugee welfare dependency
now begins during the first 90 days, this policy would encourage
resettlement organizations to help refugees find employment before
they become dependent on welfare. This policy would emphasize
the focus of the voluntary sector on resettlement by shifting resources from welfare payments to resettlement organizations.
Low-income home energy assistance.—The Federal Government
gives States block grants to aid low-income families in meeting
critical heating needs. States can make payments in the form of
direct cash assistance, payments to fuel vendors, or payments to
public housing building operators. For 1985, the administration
proposes to continue the current $1,875 million budget authority
level. However, the budget includes legislation to use recoveries
from petroleum price overcharges to partially or fully finance the
block grant. Programs for low-income home weatherization and
energy conservation for schools and hospitals would also be funded
through these recoveries.
Credit programs.—The credit budget totals for the income security function are estimated to be $15.2 billion in 1985. Most of the
credit activities in this function finance public housing operation
and construction. For 1985, new direct loan obligations in this
function are proposed to be $253 million and guaranteed loan
commitments are proposed to be $14.9 billion. A portion of the
5-133
INCOME SECURITY
guaranteed loans for public housing operation and construction
have been financed as off-budget direct loans by the Federal Financing Bank.
CREDIT PROGRAMS—INCOME SECURITY
(In millions of dollars)
Estimate
Actual
1983
Direct loans:
Low rent public housing:
New obligations
Net outlays
Outstandings
Low rent public housing (loans made by FFB)-.1
Net outlays
Outstandings
Other income security:
New obligations
Net outlays
Outstandings
1985
1984
1986
1987
150
-25
150
247
41
203
20
5
203
203
-28
175
443
2,067
160
2,227
1,169
3,396
1,133
4,529
1,117
5,647
1
3
3
3
23
23
3
*
23
23
23
248
482
2,293
253
160
2,453
253
1,169
3,623
203
1,105
4,728
153
1,092
5,820
14,261
790
19,935
15,159
875
20,810
14,919
-300
20,510
14,598
-525
19,985
14,305
-650
19,335
Total credit budget (new obligations and new
commitments)
14,509
15,412
15,172
29,599
14,458
Total, direct loans:
New obligations.
Net outlays
Outstandings
Guaranteed loans:
Low rent public housing:
New commitments
Net change
Outstandings
20
5
* $500 thousand or less.
1
These are commitments made by the agency to guarantee loans that the FFB will disburse. In effect, they are commitments for off-budget
direct loans, and are counted as such in the credit budget. Policy responsibility for these loans rests with the guaranteeing agency. The totals tor
low rent public housing loans made by the FFB in this table are not identical to the entries in the addendum to the budget authority and outlays
table for off-budget Federal entities due to timing differences between budget authority and new obligations.
Tax expenditures.—A variety of income tax exclusions, deferrals
and credits assist the retired, disabled, unemployed and elderly as
well as low-income recipients of other Federal income security
programs. The largest tax expenditure item is the net exclusion of
pension contributions and earnings, including contributions to individual retirement accounts (IRAs) and similar pension plans. The
maximum IRA contribution is generally limited to $2,000 annually.
However, married taxpayers whose spouses have no earnings may
invest up to $2,250 in a spousal IRA. The administration proposes
to increase the limit on spousal IRAs to $4,000. This recognizes the
productive value of nonworking spouses and provides them the
opportunity to save more for their retirement. The administration
also supports permitting alimony payments to be used for IRA
contributions.
5-134
THE BUDGET FOR FISCAL YEAR 1985
Many tax expenditures related to income security programs
result because Government benefits are not included in the taxable
income of recipients. For example, workers' compensation benefits,
unemployment compensation received by lower-income taxpayers,
and other income security assistance for the needy are excluded
from taxable income. In contrast, Federal employee retirement
benefits are subject to tax; therefore, the receipt of such benefits
does not result in a tax expenditure.
The Social Security Amendments of 1983 affect several tax expenditures in the income security function. Starting in 1984, onehalf of railroad retirement benefits will be taxable for recipients
whose incomes exceed certain levels. The tax credit for the elderly
has been expanded to cover the permanently disabled. The disability exclusion, which gave special tax treatment to permanently
disabled low-income taxpayers, has been repealed.
TAX EXPENDITURES FOR INCOME SECURITY
(Outlay equivalents; in millions of dollars)
Estimates
Description
1983
Net exclusion of pension contributions and earnings:
Employer plans
Individual Retirement Accounts (IRAs)
Keogh plans
Exclusion of other employee benefits:
Premiums on group term life insurance
Premiums on accident and disability insurance
Income of trust to finance supplementary unemployment benefits.
Additional exemption for elderly
Additional exemption for the blind
Tax credit for the elderly and disabled
Exclusion of disability pay
Exclusion of railroad retirement system benefits
Exclusion of special benefits for disabled coal miners
Exclusion of workmen's compensation benefits
Exclusion of untaxed unemployment insurance benefits
Deducibility of casualty losses
Exclusion of public assistance benefits
Earned income credit 1
Total (after interactions) income security 2 .
1984
1985
67,525 72,470 80,725
12,485 12,895 14,170
2,525 2,500 2,645
2,960 3,240
170
165
20
20
2,515 2,695
45
45
205
190
35
450
525
155
155
2,030 2,225
2,170 1,785
575
520
510
495
280
330
97,070 101,600 111,645
2,800
165
20
2,495
45
110
135
775
160
1,890
2,995
605
500
370
1
The figures in the table indicate the tax subsidies provided by the earned income tax credit. The effect on outlays is: 1983 $1,213 million,
1984 $1,123 million, 1985 $1,044 million.
2
The estimate of total tax expenditures for this function reflects interactive effects among the individual items. Therefore the estimates cannot
simply be added.
VETERANS BENEFITS AND SERVICES
5-135
VETERANS BENEFITS AND SERVICES
Federal funds for veterans programs are used to provide benefits
and services to veterans of military duty. These benefits and services recognize the special needs of veterans and their survivors that
result from sacrifices made in military service. Benefits compensate for loss of earnings resulting from service-related disabilities,
provide medical care for physical and psychological disabilities, and
assist in preparing returning veterans for civilian life. In addition,
veterans benefits assist needy veterans of wartime service and
their survivors. Outlays for veterans benefits and services are estimated at $25.8 billion in 1984 and $26.7 billion in 1985.
A number of management reform initiatives will be undertaken
by the Veterans Administration (VA) including integration of automated data processing planning, reducing administrative and field
staff, and contracting out support services that are readily and
economically available from commercial sources.
Income security for veterans.—In addition to Federal income security programs for the general population, such as social security,
unemployment insurance, and food stamps, several VA programs
help certain veterans and their survivors maintain their income
when the veteran is disabled, aged, or deceased. Outlays for this
mission are estimated to increase from $14.6 billion in 1984 to $15.1
billion in 1985.
Service-connected compensation.—Monthly compensation payments are provided to veterans with disabilities resulting from
military service. The amount of the benefit depends on the degree
to which average earnings capacity of individuals with a particular
disability is reduced. Payments also are made to survivors of veterans who die from service-connected injuries. Pending legislation is
expected to provide .an increase of 3.5% in compensation benefits to
be effective in April 1984. In addition, the administration is proposing legislation to provide a further 4.3% cost-of-living increase in
compensation benefits, effective in April 1985. Allowances provided
to compensate beneficiaries for dependents and clothing would also
be adjusted for increases in the cost of living.
An estimated 2.6 million veterans and survivors of deceased veterans are expected to receive compensation benefits in each of the
years 1984 through 1987. Outlays for compensation benefits are
estimated to increase from $10.0 billion in 1984 to $10.3 billion in
1985.
5-136
THE BUDGET FOR FISCAL YEAR 1985
NATIONAL NEED: PROVIDING VETERANS BENEFITS AND SERVICES
(Functional code 700; in millions of dollars)
1983
actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
9,566
3,742
122
Major missions and programs
9,903
161
3,940
141
9,844
528
4,006
142
9,836
971
4,069
148
9,836
1,451
4,149
1%
1,202
26
6
-449
1,230
23
7
-436
1,268 1,308
19
21
12
11
-434 -448
1,327
16
14
-448
BUDGET AUTHORITY
Income security for veterans:
Compensation and pensions:
Service-connected compensation:
Existing law
Proposed legislation
Non-service-connected pensions
Burial and other benefits
Insurance programs:
National service life insurance trust fund
U.S. Government life insurance trust fund
Vpterans insurance and indemnities
Insurance program receipts
....
Subtotal, income security for veterans
Veterans education, training, and rehabilitation:
Gl bill:
Existing law
Proposed legislation
Veterans jobs program
Subtotal, veterans education, training, and rehabilitation
Hospital and medical care for veterans:
Medical care and hospital services
Construction
Medical administration, research, and other
Subtotal, hospital and medical care for veterans
Veterans housing:
Loan guaranty revolving fund
Housing program receipts
Subtotal, veterans housing
14,216 14,970 15,386 15,916 16,501
1,667
1,443
1,138
133
996
167
860
140
130
1,667
1,573
1,270
1,163
1,000
7,773
831
8,204
549
8,767
856
9,139
1,173
9,505
1,?38
212
285
266
259
268
8,816
9,039
9,890 10,571 11,011
-78
-67
-75
-76
289
-78
-78
-67
75
-76
211
703
738
772
40
50
2
51
771
1
58
785
1
70
743
788
825
830
856
Other veterans benefits and services:
Cemeteries, undistributed VA overhead, and other:
Existing law
Proposed legislation
Non-VA support programs
Subtotal, other veterans benefits and services
Total, budget authority
25,364 26,303 27,297 28,404 29,580
Non-service-connected pensions.—Pensions are provided to needy
wartime-service veterans who are 65 or older or who have become
disabled subsequent to their military service. Survivors of wartimeservice veterans also may qualify for pension benefits based on
financial need. A 3.5% cost-of-living increase became effective in
January 1984. The next cost-of-living increase, to be effective in
January 1985, is estimated to be 4.3%.
5-137
VETERANS BENEFITS AND SERVICES
NATIONAL NEED: PROVIDING VETERANS BENEFITS AND SERVICES—Continued
(Functional code 700; in millions of dollars)
Major missions and programs
OUTLAYS
Income security for veterans:
Compensation and pensions:
Service-connected compensation:
Existing law
Proposed legislation
Non-service-connected pensions
Burial and other benefits
Insurance programs:
National service life insurance trust fund...
U.S. Government life insurance trust fund.,
Veterans insurance and indemnities
Insurance program receipts
Subtotal, income security for veterans.
Veterans education, training, and rehabilitation:
Gl bill:
Existing law
Proposed legislation
Post-Vietnam era education
Veterans jobs program
Other
Subtotal, veterans education, training and rehabilitation.
Hospital and medical care for veterans:
Medical care and hospital services
Construction
Medical administration, research, and other.,
Subtotal, hospital and medical care for veterans..
Veterans housing:
Loan guaranty revolving fund
Direct loan revolving fund
Other (HUD participation sales trust fund).,
Housing program receipts
1983
actual
Subtotal, other veterans benefits and services.
Total, outlays
1985
estimate
1986
estimate
1987
estimate
9,844 9,916 9,850 9,837 9,836
134
494
932 1,411
3,894 3,940 4,004 4,064 4,142
141
122
142
156
148
891
964 1,014 1,087 1,108
54
50
47
44
60
-112 -103 -64 -42 -61
-449 -436 -434 -448 -448
14,250 14,611 15,056 15,625 16,188
1,012
167
-50
2
-11
875
140
-52
-7
-53
32
-9
1,160
133
-51
96
-12
1,625
1,410
1,325
1,120
953
1,714
1,441
-82
-10
7,602 8,142 8,640 9,016 9,382
938 1,109
442
581
676
278
281
278
228
250
8,272 8,972 9,597 10,232 10,769
239
-140
-19
-78
113
-6
-20
-67
30
-5
-22
-75
116
-5
-25
-76
291
—4
-27
-78
19
Subtotal, veterans housing.
Other veterans benefits and services:
Cemeteries, undistributed VA overhead, and other:
Existing law
Proposed legislation
Non-VA support programs
1984
estimate
-72
10
183
769
1
51
81
2
781
1
67
80
5
67
5
738
3
9
66
9
49
77
8
765
2
51
87
1
24,846 25,799 26,723 27,808 28,944
Even though the number of veterans age 65 and over is expected
to double during the 1980's, the number of pension recipients is
expected to decline from 1.6 million in 1984 to 1.5 million in 1985.
Outlays for veterans pensions are estimated at $3.9 billion in 1984
and $4.0 billion in 1985.
5-138
THE BUDGET FOR FISCAL YEAR 1985
Burial and other benefits.—Families of deceased veterans who
received pension or compensation benefits and who are to be
buried in private cemeteries may receive allowances to apply
toward the purchase of burial plots. Families of these veterans also
receive burial benefits to assist in defraying funeral expenses. Outlays for burial and related benefits are estimated to increase from
$141 million in 1984 to $142 million in 1985.
Insurance programs.—The budget assumes that life insurance
programs for veterans and survivors of deceased veterans will provide an estimated $28.4 billion of coverage on nearly 4 million
policies in 1985. Direct loan obligations against life insurance policies in 1985 are expected to be $136 million, about the same as in
1984.
Veterans education, training, and rehabilitation.—Three programs, the GI bill, the post-Vietnam era education program, and
the veterans jobs program, provide education, training, and rehabilitation benefits to veterans and servicepersons who meet specific
eligibility criteria. Outlays for these programs are estimated to
decline from $1.4 billion in 1984 to $1.3 billion in 1985 and to $1.0
billion by 1987 because of a continued decline in the number of
eligible beneficiaries.
GI bill.—The GI bill provides education benefits ranging from
college courses to vocational and on-the-job training to veterans
and servicepersons whose service was, at least in part, between
February 1, 1955 and December 31, 1976. This program helps
beneficiaries make the transition from military to civilian life by
assisting them to obtain the education they might have received
had they not entered military service. Active duty servicepersons
and spouses and children of veterans who have died or been totally
disabled in military service also are eligible for these benefits.
More than 65% of all eligible Vietnam era veterans have utilized
GI bill benefits. In 1985, nearly 544,000 GI bill trainees are expected to participate in the program, compared with 642,000 in 1984.
The number of GI bill trainees (including dependents) will continue
to drop in the future as the number of eligible veterans and servicepersons becomes smaller.
Legislation will be proposed, to be effective in January 1985, to
provide for a 15% increase in Vietnam era educational assistance
and vocational rehabilitation benefits. This proposal will help offset
cost increases since GI bill benefits were last increased in January
1981.
Post-Vietnam era education.—Individuals who entered military
service after 1976 are eligible for the post-Vietnam era education
program, which allows them to set aside $25 to $100 from their
VETERANS BENEFITS AND SERVICES
5-139
monthly pay to finance future education. These amounts are
matched by the Government on a two-for-one basis and returned to
them in education payments after they are discharged. The Veterans Administration administers this program, but it is funded by
the Department of Defense.
Veterans jobs program.—The Emergency Veterans Jobs Training
Act of 1983 (P.L. 98-77) authorized the VA to establish a temporary
program to provide up to 15 months of training benefits for veterans of the Korean conflict and the Vietnam era whose earnings
have been impaired by the recent recession. Benefits are provided
to help employers offset the cost of hiring and training a veteran
who is currently unemployed. Employers must train the veteran in
a new and growing occupational skill, and must certify their intention to continue to employ the veteran after the training period is
completed. It is expected that 20,000 veterans will receive assistance under this program. The $130 million in budget authority
provided for this program in 1984 is expected to be sufficient to
meet the program's objectives. Outlays are projected to be $32
million in 1984 and $96 million in 1985.
Hospital and medical care for veterans.—The Veterans Administration provides hospital, medical and dental care to veterans by
operating a nationwide medical care system. It is expected to
handle over 18 million outpatient medical and dental visits and
treat 1.4 million patients in VA and community facilities. This
program is carried out in 172 hospitals, 229 outpatient clinics, 113
nursing homes and 16 domiciliary facilities. Outlays for medical
programs are estimated to be $9.0 billion in 1984 and $9.6 billion in
1985.
Medical care and hospital services.—In 1984 and 1985 the VA
will continue to reorder its program of health care services to
provide the most appropriate types of care to accommodate the
anticipated influx of World War II veterans. Almost all of this
group of about 11.1 million veterans (39% of all veterans) will
reach age 65 during the 1980's. This milestone is especially significant because veterans reaching age 65 become eligible for a wide
variety of medical benefits without regard to financial status. The
VA therefore anticipates a rapid increase in the number of veterans seeking long-term and geriatric care.
In addition, VA medical facilities provide care for veterans
whose disabilities could result from exposure to agent orange and
low-level ionizing radiation. These cases receive outpatient priority
second only to veterans being treated for service-connected disabilities.
5-140
THE BUDGET FOR FISCAL YEAR 1985
Outlays for medical care and hospital services are estimated to
be $8.6 billion in 1985, a 6.1% increase from the $8.1 billion estimated for 1984.
Construction of hospital and extended care facilities.—Budget authority of $822 million is requested for VA medical construction in
1985, $291 million more than the enacted amount for 1984. The
1985 request recognizes the critical need for renovation and modification of many of the aging facilities in which medical services are
provided. Funding is included for new nursing homes and projects
to remedy physical plant and safety deficiencies. Design funds are
being requested for the modernization of VA hospitals in Mountain
Home, Tennessee and New York, New York. In addition, design
funds are requested for replacement hospitals in Augusta, Georgia
and Houston, Texas. Site preparation and, if necessary, site acquisition funds are being sought for the future replacement of the
Detroit, Michigan hospital.
Budget authority of $34 million is requested for 1985, $16 million
more than enacted for 1984, for grants to States for the construction or repair of State homes for the care of veterans.
Veterans housing.—VA mortgage loan guarantee and direct loan
programs are expected to assist 240,000 veterans in obtaining mortgages in 1985. Guaranteed loan commitments and direct loan obligations for mortgage loans in 1985 are estimated at $15.0 billion
and $0.4 billion, respectively. Beginning in mid-1984, VA will uniformly pay guarantee claims of mortgagors in lieu of purchasing
properties at foreclosure. This administrative change will not affect
a veteran's entitlement to a VA guaranteed mortgage. This change
will lead to the eventual elimination of the vendee loan program,
under which any individual, regardless of veteran status, can purchase property from VA with a 100% mortgage loan held by VA.
Other veterans benefits and services.—The Veterans Administration oversees a national cemetery system for burial of eligible
veterans, servicepersons, and their survivors. Outlays for these and
other programs are estimated to be $787 million in 1984 and $817
million in 1985.
Credit programs.—Additional assistance is provided to veterans
through loan guarantees and direct loans. The credit budget for
veterans benefits and services is expected to increase from $14.2
billion in 1984 to $15.5 billion in 1985. With the improving economy, an increase in demand for mortgage insurance and other housing programs is expected to increase loan guarantee commitments
from $13.4 billion in 1984 to $15.0 billion in 1985.
5-141
VETERANS BENEFITS AND SERVICES
CREDIT PROGRAMS—VETERANS BENEFITS AND SERVICES
(In millions of dollars)
Estimate
Actual
1983
Direct loans.Income security programs:
New obligations
Net outlays
Outstandings
Education programs:
New obligations
Net outlays
Outstandings
Mortgage insurance and other housing programs:
New obligations
Net outlays
Outstandings
Total, direct loans:
New obligations
Net outlays
Outstandings
Guaranteed loans:
Mortgage insurance and other housing programs:
New commitments
Net change
Outstandings
Total credit budget (new obligations and new
commitments)
1984
1985
1986
1987
131
-51
1,349
135
-44
1,306
136
-39
1,267
137
-36
1,231
134
-34
1,197
1
*
62
1
-7
55
1
-8
37
1
-8
30
1,058
-208
1,698
630
63
1,761
396
110
1,871
305
264
2,136
323
280
2,416
1,190
-260
3,109
766
13
3,122
534
61
3,183
443
221
3,404
458
239
3,642
1
—9
45
14,674 13,408 14,988 15,086 15,498
11,157 10,013 11,326 10,901 11,048
119,941 129,954 141,280 152,181 163,229
15,864
14,174 15,522 15,529
15,956
*$500 thousand or less.
Tax expenditures.—In addition to direct Federal funding, a
number of tax expenditures provide assistance to veterans. All
benefits administered by the Veterans Administration (disability
compensation, pension, and GI bill benefits) are excluded from
taxable income. The estimates for these exclusions in 1985 are $1.9
billion, $340 million, and $115 million, respectively. Veterans are
aided in obtaining housing because interest on State and local debt
for veterans is not subject to tax. In 1985, the estimate for this
provision is $325 million. Total tax expenditures for veterans are
estimated to be $2.6 billion for 1985.
Related programs.—In addition to the assistance provided specifically for veterans by the VA, many veterans receive assistance
from other income security, health, housing, education, training,
employment, and social service programs supported by the Federal
Government and available to the general population. Some of these
programs have components specifically intended to assist veterans.
5-142
THE BUDGET FOR FISCAL YEAR 1985
ADMINISTRATION OF JUSTICE
Federal expenditures for the administration of justice are to
protect persons and their property through enforcement of Federal
laws; to provide Federal courts to resolve disputes; to defend the
public interest in criminal and civil proceedings; and to operate
detention and correctional facilities for those charged with or convicted of violating Federal law. One of the fundamental responsibilities of the Government is to provide a means to ensure the safety
of the people and to resolve disputes peacefully and fairly. In 1985,
the Federal Government will spend an estimated $6 billion to meet
these needs.
Federal initiatives center on three major themes:
• controlling the borders against illegal entry of persons and
goods;
• combatting organized crime and illegal drug trafficking; and
• providing additional litigative resources to prosecute criminal
and civil tax violators.
Federal law enforcement activities.—As in past years, over half of
the total Federal resources for the administration of justice are
dedicated to law enforcement activities. Estimated outlays of $3.5
billion in 1985, 3% above the 1984 level, will maintain current
activities and meet the objectives outlined above.
Criminal investigations.—Criminal investigations are mainly carried out in the Justice Department by the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI).
They frequently work together in one of 12 regional organized
crime drug enforcement (OCDE) task forces. The OCDE program,
an administration initiative undertaken last year, was originally
funded as a separate appropriation within the Justice Department
to ensure central program control and flexibility for the network of
task forces. Now that necessary control mechanisms are well established, the OCDE program will be funded by direct appropriations
to the participating agencies.
The FBI and DEA have concurrent jurisdiction to combat drug
trafficking. As mentioned above, they work together on narcotics
violation investigations through the OCDE task forces. In 1985, a
thirteenth OCDE task force will be initiated in Florida. Not only
will additional resources be provided for this task force, but also
the FBI will increase—to over 800—the number of agents working
on drug cases. DEA will expand its domestic intelligence staff as
well as its overseas effort.
5-143
ADMINISTRATION OF JUSTICE
NATIONAL NEED: ADMINISTRATION OF JUSTICE
(Functional code 750; in millions of dollars)
1983
actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
1,241
147
1,076
249
347
1,445
160
1,137
309
367
1,494
162
1,177
287
386
1,531
163
1,181
285
393
1,560
166
1,197
295
381
Subtotal, Federal law enforcement activities
3,061
3,417
3,505
3,554
3,598
Federal litigative and judicial activities:
Civil and criminal prosecution and representation
Federal judicial activities
Representation of indigents in civil cases
636
825
241
717
928
275
808
1,046
823
1,095
838
1,148
1,702
1,920
1,854
1,917
1,985
Federal correctional activities
468
489
568
538
543
Criminal justice assistance
137
211
146
147
151
5,367
6,038
6,074
6,156
6,277
1,113
142
1,052
232
348
1,432
156
1,143
300
376
1,534
159
1,160
279
383
1,503
160
1,165
280
389
1,532
162
1,182
289
381
Subtotal, Federal law enforcement activities
2,887
3,407
3,515
3,497
3,547
Federal litigative and judicial activities:
Civil and criminal prosecution and representation
Federal judicial activities
Representation of indigents in civil cases
597
796
234
715
922
284
791
1,036
20
802
1,078
817
1,130
1,627
1,921
1,847
1,880
1,947
Federal correctional activities
418
500
574
544
524
Criminal justice assistance
167
193
203
165
145
5,099
6,021
6,140
6,086
6,162
Major missions and programs
BUDGET AUTHORITY
Federal law enforcement activities:
Criminal investigations (DEA, FBI and OCDE)
Alcohol, tobacco, and firearms investigation (ATF)
Border enforcement activities (Customs and INS)
Protection and other activities (Secret Service)
Other enforcement
Subtotal, Federal litigative and judicial activities
Total, budget authority
OUTLAYS
Federal law enforcement activities:
Criminal investigations (DEA, FBI and OCDE)
Alcohol, tobacco, and firearms investigation (ATF)
Border enforcement activities (Customs and INS)
Protection and other activities (Secret Service)
Other enforcement
Subtotal, Federal litigative and judicial activities
Total, outlays
The FBI enforces a broad range of criminal statutes, works with
other Federal agencies when appropriate, as well as State and local
authorities, and assists States and localities through training, dissemination of information, and other activities. Additional resources are being requested in 1985 to increase the FBI's investigations of traditional organized crime violations and to expand foreign counterintelligence activities. To improve the FBI's overall
effectiveness, more resources are also being requested to conduct
research and development.
5-144
THE BUDGET FOR FISCAL YEAR 1985
Total outlays for criminal investigations are estimated to be
$1,534 million in 1985, an increase of $102 million, or 7%, over
1984 levels.
Border enforcement activities.—The Immigration and Naturalization Service (INS) administers laws related to the admission, exclusion, deportation and naturalization of aliens. For 1985, the administration proposes a major increase of 1,000 positions to strengthen
immigration control on the southwestern border of the United
States. In addition, the budget continues the administration's commitment to increased productivity and better management through
further implementation of automated systems and improved recordkeeping.
The United States Customs Service administers laws regarding
assessment and collection of customs duties, excise taxes, fees and
penalties on imported merchandise; stopping and seizing contraband; and processing persons, carriers, cargo and mail into and out
of the United States. The budget proposal for Customs would maintain enforcement in the priority areas of drug trafficking and
illegal export of critical technology. Also, the budget proposes that
savings be accomplished by greater selectivity in cargo processing
systems and implementation of a number of administrative and
management efficiencies.
Outlays for border enforcement activities are estimated to be $1.2
billion in 1985.
Federal litigative and judicial activities.—The Department of Justice litigates all of the Federal Government's criminal cases and
most of its civil cases. During the past few years, the Department
has been increasing its efforts on the more complex, lengthy criminal cases involving organized crime and drug trafficking. In the
civil area, asbestos, radiation, and other toxic substances litigation,
as well as major commercial and entitlement litigation, are consuming increasing amounts of litigative resources.
Civil and criminal prosecution and representation.—Outlays for
civil and criminal prosecution and representation are estimated to
rise from $715 million in 1984 to $791 million in 1985.
Among the administration's priorities in this area are:
• establishment of a Federal tax enforcement initiative;
• enforcement operations directed at identifying and seizing the
assets and profits of illegal drug trafficking organizations;
• maintaining an active role in civil litigation to protect the
Government's financial interests in court, commercial litigation and continued efforts in debt collection; and
ADMINISTRATION OF JUSTICE
5-145
• continued support for the recently established law enforcement coordinating committees, composed of Federal, State
and local law enforcement officials.
Federal judicial activities.—By law, budget estimates from the
judiciary are included in the budget without modification by the
executive branch. The U.S. Courts have estimated outlays of $1
billion in 1985 for judicial branch activities in this function, a 12%
increase over the 1984 level.
Representation of indigents in civil cases.—The Legal Services
Corporation is a private non-profit organization that funds State
and local agencies providing free civil legal assistance to the poor.
Grantees are currently involved in cases both for individual clients
and in broader 'law reform" activities.
The administration proposes that the Corporation not be reauthorized, and that no further separate Federal funding be provided.
The administration's social services block grant includes adequate
authority to fund legal services activities that States wish to provide for their citizens. In addition, private attorneys are expected
to increase free services to the indigent in accordance with the
legal profession's ethical obligations.
Federal correctional activities.—The Federal Government is responsible for the care and custody of prisoners charged with or
convicted of violating Federal laws.
Those people charged with a Federal crime and not yet convicted
or acquitted come under the jurisdiction of the U.S. Marshals in
their role as agents of the U.S. Courts. These prisoners are usually
detained in a State or local jail. If convicted, the offender is transferred to one of the 44 Federal prison facilities. The cooperative
agreement program provides funds to renovate and equip local jails
that house Federal prisoners. The budget contains $5 million for
this program in 1985.
In response to the continuing growth of the Federal prisoner
population, site and planning funding for one new prison, to be
located in the southeast, is proposed. Construction funds are provided for a prison in the northeast. Additional funds will be made
available to renovate and expand existing facilities. Also, increased
funding for more correctional officers positions is provided. Outlays
for correctional activities in 1985 are estimated to be $574 million,
15% above the 1984 level.
Criminal justice assistance.—A criminal justice assistance program, expected to be enacted in 1984, will provide training, technical, and financial assistance to State and local criminal justice
agencies through both formula and discretionary grants. These
5-146
THE BUDGET FOR FISCAL YEAR 1985
grants will support innovative projects or programs of proven effectiveness.
The administration is not requesting any new budget authority
for juvenile justice and delinquency prevention programs as the
primary objective of these programs—the separation of juvenile
from adult offenders—has largely been accomplished. Resources to
deal with serious juvenile offenders will be available through the
new criminal justice assistance program.
Outlays for criminal justice assistance are estimated to be $203
million in 1985. Included are $12 million for the National Institute
of Corrections, and $191 million for other justice assistance programs.
Related programs.—A number of programs classified in other
functions support the administration of justice. Over 100 agencies
and regulatory commissions perform some type of law enforcement
activity. About 30 Federal agencies, including the Departments of
Agriculture and Labor, the Environmental Protection Agency, and
most independent regulatory commissions, have some litigation authority independent of the Department of Justice.
GENERAL GOVERNMENT
5-147
GENERAL GOVERNMENT
The general government function includes the central management and policy responsibilities of the Federal Government. The
management focus is largely on Federal finances, property and
personnel. The goals of the President and his administration are to
provide a government that operates in a business-like manner and
provides essential public services as efficiently as possible. The
central services performed within this function include tax collection, fiscal operations, personnel management, property control,
and records management.
Outlays for general government are estimated to be $5.7 billion
in 1985, a very slight increase over the 1984 level. Major goals in
this function are to enhance efforts to identify and collect unpaid
taxes and to improve productivity in the Federal Government.
Legislative functions.—By law, budget estimates for the legislative branch are included in the President's budget without change
as submitted by the Congress. Estimated outlays for the legislative
branch activities in this function are $1.7 billion in 1985 and include the operation of the Congress, the General Accounting Office,
the Congressional Research Service, and similar activities.
Executive direction and management.—Outlays for the White
House, other components of the Executive Office of the President,
and related activities are estimated to be $121 million in 1985, an
increase of $7 million over 1984.
Central fiscal operations.—The mission of central fiscal operations is to collect taxes, administer the public debt, supervise the
Federal Financing Bank, and carry out certain other financial
operations of the Federal Government. Outlays are estimated to be
$3.6 billion in 1985, a slight increase over the 1984 level.
Collection of taxes.—The funds supporting this mission are for
the Internal Revenue Service (IRS). In 1985, IRS plans to strengthen its efforts to address the tax gap—taxes owed but unpaid. These
efforts will increase tax collections both directly and indirectly, the
latter by enhancing voluntary compliance. Through this tax gap
initiative, IRS expects to:
• implement the provisions of the Interest and Dividend Tax
Compliance Act of 1983 which provides for back-up withholding of 20% on interest and dividend income where compliance
problems are found;
420-000 O - 84 - 18 : QL 3
5-148
THE BUDGET FOR FISCAL YEAR 1985
NATIONAL NEED: GENERAL GOVERNMENT
(Functional code 800; in millions of dollars)
Major missions and programs
1983
actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
1,418
1,463
1,412
1,473
1,451
103
113
122
120
123
3,043
-163
367
3,326
-184
379
3,532
-207
393
3,550
-218
395
3,618
-224
402
3,246
3,520
3,717
3,727
3,795
56
15
86
320
-202
22
92
344
-238
20
93
363
-148
20
95
361
-130
20
97
367
476
255
237
328
354
142
149
153
154
156
182
31
563
18
193
2
258
25
150
1
384
33
68
1
384
30
71
1
256
33
794
478
569
483
361
BUDGET AUTHORITY
Legislative functions
Executive direction and management
Central fiscal operations:
Collection of taxes
Federal Financing Bank
Other fiscal operations
Subtotal, central fiscal operations
General property and records management:
Real property
Personal property
Records management
Other
Subtotal, general property and records management
Central personnel management
Other general government:
Territories
Indian affairs
Treasury claims
Other
Subtotal, other general government
Deductions for offsetting receipts
Total, budget authority
-636
-424
-425
-408
-408
5,544
5,553
5,786
5,878
5,832
• emphasize audits of "Schedule C" business and professional
returns which exhibit the greatest evidence of underreported
income;
• increase litigations of tax shelter cases;
• expand efforts to collect delinquent accounts; and
• launch a major study to determine the sources and reasons
for non-compliance with the tax laws.
IRS will continue its program begun in 1982 to modernize and
streamline its operations. Through these activities IRS will:
• complete a major replacement of the tax return processing
equipment used in each of the IRS service centers;
• begin the use of optical character recognition technology for
putting into computers information on Federal tax deposits
(forms used for business withholding taxes);
5-149
GENERAL GOVERNMENT
NATIONAL NEED: GENERAL GOVERNMENT—Continued
(Functional code 800; in millions of dollars;
1983
actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
1,196
Major missions and programs
1,345
1,447
1,496
1,472
OUTLAYS
Legislative functions
121
121
96
114
2,907
-163
300
3,283
-184
368
3,461
-207
388
3,477
-218
384
3,541
-224
386
3,045
3,467
3,642
3,643
3,703
-170
13
88
269
-44
22
94
327
-244 -271
20
20
91
93
371
362
-223
20
95
367
200
399
238
204
259
115
155
155
153
154
201
214
183
129
111
16
563
-11
Executive direction and management
17
258
108
1
385
4
1
384
9
1
256
-4
768
597
565
504
372
119
Central fiscal operations:
Collection of taxes
Federal Financing Bank
Other fiscal operations
Subtotal, central fiscal operations
General property and records management:
Real property
Personal property
Records management
Other
Subtotal, general property and records management
Central personnel management
Other general government:
Territories
Indian affairs ..
Treasury claims
Other
Subtotal, other general government
Deductions for offsetting receipts
-424
-425
-408
-408
4,784
Total, outlays
-636
5,652
5,744
5,712
5,674
33
-35
-1
-1
-34
-36
Total:
Outlays
...
CO
ADDENDUM
-10
11
#
*
CO
Off-budget Federal entity:
Federal Financing Bank:
Federal buildings fund:
Outlays
Territories:
Outlays
Other:
Outlays
5
3
-7
-11
*$500 thousand or less.
• implement an automated collection system, which will enhance significantly IRS' capacity to collect accounts where tax
liability is agreed to but unpaid;
• expand use of automation to other enforcement and support
programs; and
• begin research on a major redesign of the tax processing
system.
5-150
THE BUDGET FOR FISCAL YEAR 1985
Outlays for the collection of taxes are estimated to be $3.5 billion
in 1985, $0.2 billion higher than in 1984.
Federal Financing Bank.—The Federal Financing Bank (FFB) is
an off-budget Federal entity under the supervision of the Treasury
Department. It was created to reduce the cost of Federal agency
and federally assisted borrowing from the public and to ensure that
such borrowing takes place with the least disruption to financial
markets. The FFB neither initiates nor reviews Federal programs;
it is solely a financing vehicle. The Government agency initiating
the program is responsible for its review.
The FFB charges a fee to borrowers for administrative expenses.
Any unused monies are transferred to central fiscal operations and
shown as offsetting Treasury receipts. They are estimated to be
$207 million in 1985.
Further discussion of the Federal Financing Bank is in Part 6 of
this volume, in Special Analysis E, "Borrowing and Debt," and in
Special Analysis F, "Federal Credit Programs." These sources also
summarize the distribution of FFB activity according to the agencies that use the bank. The tables in each function that show
budget authority and outlays display off-budget activities of the
FFB as addendum items.
Other fiscal operations.—Other fiscal operations include manufacturing coins by the Bureau of the Mint and printing currency by
the Bureau of Engraving and Printing. Estimated outlays in 1985
for other fiscal operations are $388 million, representing a decrease
of $20 million from 1984.
General property and records management.—The General Services Administration (GSA) is the Government's builder and landlord, wholesaler and retailer, historian and records keeper. These
housekeeping services support the activities of other Federal agencies. Outlays for general property and records management are
estimated to be $238 million in 1985.
Central personnel management.—Personnel management functions are carried out by the Office of Personnel Management
(OPM), the Federal Labor Relations Authority, and the Merit Systems Protection Board. Estimated outlays for 1985 are $155 million.
In response to an OPM study identifying a serious overclassification of the general schedule workforce, the administration, through
the Office of Personnel Management and the Office of Management and Budget, has directed agencies to reduce the proportion of
upper middle and higher grade positions. Agencies' budget authorities have been reduced by the amount necessary to reflect a 2%
reduction in the number of general schedule positions in grades 11
through 15 (or equivalents), offset by the funds necessary for a
GENERAL GOVERNMENT
5-151
concurrent increase in the number of positions in grades 1 through
10. Improved position management as well as greater conformance
with classification standards will save $106 million in 1985, and
$1.7 billion in personnel costs throughout the life of the 4-year
program. Agencies are to achieve these savings through attrition,
with no reductions in the number of Federal jobs or downgrading
of employees.
Other general government.—Other activities in the general government function include payments of claims and judgments
against the Federal Government, funding for the territories, and
other activities. Outlays are expected to be $565 million in 1985,
compared to $597 million in 1984.
Territories.—Budget authority of $54 million is proposed for 1985
for continued support of the U.S. territories of Guam, American
Samoa, the Virgin Islands, and the Northern Marianas. Budget
authority of $90 million in 1985 is requested for operations and
construction in the Trust Territory of the Pacific Islands. The
Compact of Free Association, discussed in the international affairs
function, has been approved by the people of the Federated States
of Micronesia and the Marshall Islands. The President will soon
transmit the Compact to the Congress for enactment into law,
ending the trusteeship for these two states. Trust Territory funding
will be amended once the Congress has completed its enactment of
the Compact. In addition to these programs funded by the Department of the Interior, the territories and the Trust Territory receive
grants and payments from many other Federal agencies for programs classified in other functions.
Indian affairs.—Funding for American Indians in this function
includes miscellaneous trust fund payments to tribes and program
support for the Navajo and Hopi Indian Relocation Commission.
Funding in 1984 included $15 million for payment to the Papago
Indian Tribe, Arizona, to settle water rights claims of the tribe.
Additional assistance to Indian tribes is classified in a number of
functions—health; natural resources and environment; community
and regional development; and education, training, employment,
and social services.
Credit programs.—This function contains two credit programs
financed as direct loans by the Federal Financing Bank (FFB).
These are General Services Administration loans originated for
lease-purchase agreements on some Federal buildings and loans to
the territories. The accompanying table shows the level of operation of these two programs. No new activity is proposed for credit
programs in this function for 1985.
5-152
THE BUDGET FOR FISCAL YEAR 1985
CREDIT PROGRAMS—GENERAL GOVERNMENT
(In millions of dollars)
Actual
1983
Direct loans:
Loans to U.S. territories (loans made by FFB):
Net outlays x
Outstandings
General Services Administration:
Federal buildings fund (GSA) (loans made by FFB):
Net outlays
Outstandings
Total, direct loans:
Net outlays
Outstandings
Guaranteed loans:
Federal buildings fund (GSA):
Net change
Outstandings
Estimate
1984
1985
1986
1987
-1
63
6
5
6
5
6
4
-3
417
-10
408
-11
397
-33
364
-35
329
-4
483
-10
473
-11
462
-34
428
-36
392
-20
755
-20
735
-21
713
713
713
* $500 thousand or less.
1
These are guarantees made by the agency for loans that the FFB will disburse. In effect, they are guarantees for off-budget direct loans, and
are counted as such in the credit budget. Policy responsibility for these loans rests with the guaranteeing agency.
Tax expenditures.—In addition to direct Federal funds for general government, the tax code permits individuals to claim a 50% tax
credit on political contributions of up to $100 ($200 for joint returns). The tax expenditure estimate for this provision is $290
million in 1985.
GENERAL PURPOSE FISCAL ASSISTANCE
5-153
GENERAL PURPOSE FISCAL ASSISTANCE
General purpose fiscal assistance provides financial aid to State
and local governments without major restrictions or matching requirements. This assistance can generally be used for State or local
services, construction, debt retirement, and other purposes of general government. Programs in this category include general revenue sharing, payments to the District of Columbia, Forest Service
receipts paid to the States, payments in lieu of taxes, and payments
to territories and Puerto Rico. Outlays for this function are estimated to be $6.7 billion in both 1984 and 1985.
General revenue sharing.—The purpose of the general revenue
sharing program is to provide local governments with Federal
funds that have few restrictions on their use. Outlays for the
program, which was reauthorized last year, are $4.6 billion annually in 1984 and 1985.
General revenue sharing provides funds to approximately 39,000
local jurisdictions. The funds are first divided among States on the
basis of total population, urban population, personal and per capita
income, income tax collections, and general tax effort. Local governments' share of the allocation are in turn based primarily on
population, per capita income, and tax effort. This formula helps
target assistance to governments with the greatest needs.
Other general purpose fiscal assistance.—Several other programs
provide funds with minimal restrictions to States and localities.
Outlays for these programs are estimated to be $2.2 billion in 1984
and $2.1 billion in 1985.
Payments and loans to the District of Columbia.—The District of
Columbia's operating budget is financed in part by annual payments from the Federal Government in recognition of the costs to
the local government of the Federal presence. Presently, discussions are occurring between the administration and the District of
Columbia Government designed to produce a formula Federal payment. The administration requests $503 million in budget authority
for the District of Columbia in 1985. An estimated $425 million is
for the Federal payment. Budget authority of $52 million is for the
annual Federal contribution to the retirement funds for the District's police officers, firefighters, teachers, and judges as required
under pension reform legislation enacted in 1979. The remaining
$26 million is primarily for water and sewer payments for Federal
buildings using these services.
5-154
THE BUDGET FOR FISCAL YEAR 1985
NATIONAL NEED: FISCAL ASSISTANCE TO STATE AN0 LOCAL GOVERNMENTS
(Functional code 850; in millions of dollars;
Major missions and programs
1983
actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
BUDGET AUTHORITY
General revenue sharing:
General revenue sharing payments
Administration
Subtotal, general revenue sharing
Other general purpose fiscal assistance:
Payments and loans to the District of Columbia....
Other payments:
Payments to States from Forest Service receipts:
Existing law
4,567
7
4,567
7
4,567
8
4,567
8
4,567
8
4,574
4,574
4,575
4,575
4,575
494
567
469
473
Ml
144
204
306
-22
371
-78
408
-106
715
599
666
765
Proposed legislation
Payments to States from receipts under the
Mineral Leasing Act
Payments to States and counties from Federal land management activities
Payments in lieu of taxes
Payments to territories and Puerto Rico
Other
596
96
454
6
68
105
502
6
78
105
541
6
87
105
588
6
94
105
638
7
Subtotal, other general purpose fiscal assistance
1,790
2,167
2,084
2,218
2,388
Total, budget authority
6,564
6,741
6,658
6,793
6,963
4,614
6
4,567
8
4,567
8
4,567
8
4,567
8
4,620
4,574
4,574
4,575
4,575
543
567
469
473
477
144
204
306
-22
371
-78
408
-106
715
599
666
765
OUTLAYS
General revenue sharing:
General revenue sharing payments
Administration ..
Subtotal, general revenue sharing
Other general purpose fiscal assistance:
Payments and loans to the District of Columbia....
Other payments:
Payments to States from Forest Service receipts:
Existing law
Proposed legislation
Payments to States from receipts under the
Mineral Leasing Act
Payments to States and counties from Federal land management activities
Payments in lieu of taxes
Payments to territories and Puerto Rico
Other
593
96
451
7
68
105
502
6
78
105
541
6
87
105
588
6
93
105
638
7
Subtotal, other general purpose fiscal assistance
1,834
2,167
2,084
2,218
2,388
Total, outlays
6,454
6,741
6,658
6,793
6,962
GENERAL PURPOSE FISCAL ASSISTANCE
5-155
In anticipation of the District of Columbia's successful entry into
the private capital market, the 1985 estimates assume that the City
will borrow in the private market for its capital needs rather than
from the Treasury.
Other payments,—Some jurisdictions receive payments from the
Federal Government based on a percentage of receipts generated
from the sale of timber, mineral leases, grazing permits, and other
activities on Federal property.
Payments to States from Forest Service receipts will return an
estimated $204 million in 1984, and $284 million in 1985, to States
for distribution to counties in which National forests are located.
These funds are to be used for schools and roads. The administration will propose legislation to make these payments more equivalent to taxes derived from comparable private property.
Payments to States from receipts under the Mineral Leasing Act
were included in payments to States and counties from Federal
land management activities in 1983. The decrease in payments
made to States out of Mineral Leasing Act receipts in 1985, is due
to the passage of the Federal Oil and Gas Royalty Management Act
of 1983. The act requires that beginning in 1984, receipts will be
distributed to the States monthly, rather than semi-annually. This
change moved 5 additional months' payments into 1984. The payments in 1985 reflect the States' share of receipts for 12 months.
Outlays are estimated to be $599 million in 1985.
Payments to States and Counties from Federal land management
activities are estimated to be $68 million in 1984 and $78 million in
1985 for shared revenues from oil and gas, coal, timber, and grazing activities on Federal lands. The decrease from 1983 to 1984 was
caused by the transfer of responsibility for collecting and distributing mineral leasing receipts within the Department of the Interior,
from the Bureau of Land Management to the Minerals Management Service shown in the previous category.
Payments in lieu of taxes provide fees to local governments for
some Federal lands located within their jurisdictions. Outlays are
estimated to be $105 million for 1985.
Payments to territories and Puerto Rico are made because the
Federal Government returns certain taxes to the territories and
Puerto Rico. These payments comprise (1) annual advance payments of certain income tax withholding and excise tax collections
involving Guam and the Virgin Islands, and (2) excise tax withholding for Puerto Rico. Outlays are estimated to be $502 million
in 1984 and $541 million in 1985.
5-156
THE BUDGET FOR FISCAL YEAR 1985
CREDIT PROGRAMS—GENERAL PURPOSE FISCAL ASSISTANCE
(In millions of dollars)
Estimate
Actual
1983
Direct loans:
Loans to the District of Columbia:
New obligations
Net outlays
Outstandings
Guaranteed loans:
Guarantees of New York City loans:
Net change
Outstandings
Total credit budget (new obligations and new
commitments)
1984
1985
1986
1987
295
116
1,799
115
84
1,883
-34
1,849
-37
1,813
-40
1,773
-243
1,201
-273
928
367
561
380
182
-182
295
115
Tax expenditures.—The Federal Government provides general
purpose fiscal assistance through several tax provisions. Interest on
State and local government debt is excluded from the taxable
income of both businesses (mainly commercial banks and casualty
insurance companies) and individuals. As a result, States and local
governments can sell their debt at lower interest rates than would
be possible if such interest were taxable. In effect, the Federal
Government subsidizes States and localities by paying part of their
interest costs. Only the effect of excluding interest on general
purpose obligations and revenue bonds for public purposes such as
schools, sewers and roads is included in this function. The exclusion of interest on tax-exempt bonds issued for private or quasipublic activities is covered in applicable budget functions, such as
commerce and housing credit. The tax expenditure estimate for the
exclusion of interest on general purpose State and local debt is
$13.3 billion in 1985.
The Federal Government also provides indirect assistance to
States and localities by allowing individuals to deduct nonbusiness
State and local taxes, primarily income and sales taxes, from
income in calculating their Federal tax liability. The value of this
assistance is estimated at $21.6 billion in 1985; the deducibility of
taxes on owner-occupied homes is accounted for in the commerce
and housing credit function.
As a means of providing assistance to U.S. possessions, primarily
Puerto Rico, the Government permits a special tax credit for qualifying U.S. corporations doing business in the possessions. This tax
credit, which effectively exempts earnings attributable to the possessions, results in a tax expenditure of $1.7 billion in 1985. Tax
expenditures for general purpose fiscal assistance total $36.7 billion
in 1985.
GENERAL PURPOSE FISCAL ASSISTANCE
5-157
Related programs.—In addition to general purpose fiscal assistance, the Federal Government provides States and localities with
assistance through a variety of Federal grant-in-aid programs.
These programs, which range from relatively narrow categorical
programs to broader grant programs, are more restrictive than
general purpose fiscal assistance, and are designed to meet other
national needs and to serve other major missions. Therefore, they
are not included as general purpose fiscal assistance, although they
provide, when taken together, a large source—22% in 1983—of
total State and local expenditures. Total grant-in-aid outlays to
States and localities are estimated to increase from $93.0 billion in
1984 to $102.2 billion in 1985.
Grants are discussed in more detail in Special Analysis H, "Federal Aid to State and Local Governments."
5-158
THE BUDGET FOR FISCAL YEAR 1985
NET INTEREST
Interest is the cost of borrowing or the income from lending
money. As such, this function includes both interest paid by the
Federal Government and, as an offset, interest earned from loans.
Net interest outlays are estimated to rise from $108.2 billion in
1984 to $116.1 billion in 1985.
Interest on the public debt.—This subfunction includes all interest paid on the public debt. The public debt consists of Treasury
securities sold to the public and to trust funds, revolving funds, and
deposit funds within the Federal Government. Outlays for interest
on the public debt are estimated to be $164.7 billion in 1985.
Estimates of interest outlays are directly affected by assumptions
about interest rates and the size of the debt. It is assumed that the
91-day bill rate will decline steadily from an average of 8.6% in
calendar year 1983 to 6.2% by 1987. Despite the projected decline
in interest rates, interest on the public debt is estimated to increase by $20.9 billion in 1984 and an additional $15.2 billion in
1985. These increases are because of higher debt outstanding due to
Treasury borrowing to finance the Federal deficit. The estimates
include proposed legislation that increases (net) trust fund holdings
of Treasury securities, and thus interest payments, as described
below.
Interest received by trust funds.—Most trust fund balances are
required by law to be invested in Federal securities. The interest
outlays on this debt are included in interest on the public debt.
Interest earned by the trust funds is deducted in this subfunction
so that budget totals for net interest include only net transactions
with the public, not payments between Government accounts.
Trust fund interest earnings are estimated to be $19.4 billion in
1984 and $22.6 billion in 1985.
More than half of these interest earnings is received by the civil
service retirement and disability fund, and about one-fourth is
received by social security and medicare. Enacted legislation for
military retirement and proposed legislation for civil service retirement will change trust fund balances invested in public debt and
thereby affect interest earnings. The total effect of these and similar proposals is to increase interest received by trust funds by $1.0
billion in 1987.
Other interest.—This subfunction includes interest payments by
the Government on tax refunds and, as an offset, interest collections from Federal agencies and the public.
5-159
NET INTEREST
NET INTEREST
(Functional code 900; in millions of dollars)
Programs
1983
actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
128,619
149,483
17
164,531
169
177,379
521
187,580
1,020
128,619
149,500
164,700
177,900
188,600
-17,102
19,379
-17
BUDGET AUTHORITY
Interest on the public debt:
Existing law
Proposed legislation
Subtotal, interest on the public debt
Interest received by trust funds:
Existing law
Proposed legislation
Subtotal, interest received by trust funds
Other interest:
Interest on refunds of tax collections
Interest on loans to the Federal Financing Bank
Other
Subtotal, other interest
22,418 - 2 5 , 6 3 6 -29,158
521 - 1 , 0 2 0
169
-17,102 - 1 9 , 3 9 6 -22,587 -26,157
1,954
1,514
-14,116 -15,239
-9,581 -8,140
30,177
1,516
1,590
1,479
19,020 -19,322
18,259
-9,195 -10,071 -9,749
25,974
89,775
108,239
116,138
124,242
130,868
128,619
Total, budget authority
-21,742 -21,865
149,483
17
164,531
169
177,379
521
187,580
1,020
128,619
149,500
164,700
177,900
188,600
27,501 -27,555
OUTLAYS
Interest on the public debt:
Existing law
Proposed legislation
Subtotal, interest on the public debt
Interest received by trust funds:
Existing law
Proposed legislation
Subtotal, interest received by trust funds
Other interest:
Interest on refunds of tax collections
Interest on loans to the Federal Financing Bank
Other
Subtotal, other interest
Total, outlays
-17,102 -19,379 - 2 2 , 4 1 8 - 2 5 , 6 3 6 -29,158
-17
- 5 2 1 -1,020
-169
-17,102 -19,396 -22,587 -26,157
30,177
1,516
1,954
1,514
1,590
1,479
- 1 4 , 1 1 6 -15,239 - 1 8 , 2 5 9 - 1 9 , 0 2 0 - 1 9 , 3 2 2
-9,581
10,071 - 9 , 7 4 9
9,195
8,140
-21,743 - 2 1 , 8 6 5 - 2 5 , 9 7 4 - 2 7 , 5 0 1 -27,555
89,774
108,239
116,138
124,242
130,868
89,774
14,492
108,239
14,352
116,138
14,799
124,242
14,996
130,868
14,971
75,282
93,887
101,339
109,246
115,879
ADDENDUM
Net interest function
Deposits of earnings by the Federal Reserve System*
Net budgetary effect 2
1
Shown as budget receipts.
2
Net budgetary effect of interest transactions with the public. See text for discussion.
Interest on refunds of tax collections.—Interest payments by the
Treasury on tax refunds are estimated to be $1.5 billion in both
1984 and 1985. Under current law, the rate paid on refunds of tax
collections is set at the prime rate.
5-160
THE BUDGET FOR FISCAL YEAR 1985
Interest on loans to the Federal Financing Bank (FFB).—The off-
budget Federal Financing Bank is the major source of funds for a
number of Government programs. The FFB borrows directly from
the Treasury and uses these funds to purchase agency debt and
financial assets from various Government programs and to make
direct loans to the public at the request of different agencies. It
then pays interest to the Treasury on its borrowings. Interest payments from the FFB to the Treasury are estimated to be $15.2
billion in 1984 and $18.3 billion in 1985.
Other.—Offsetting interest collections other than from the FFB
are estimated to be $8.1 billion in 1984 and $9.2 billion in 1985.
These come from two principal sources: interest charged by Treasury to Federal agency revolving funds, which is by far the largest
source; and interest collected from the public by funds other than
revolving funds. Revolving funds borrow from the Treasury primarily to finance direct loans to the public, and then pay interest to
the Treasury on their borrowings. Other collections include interest on loans made to the public by non-revolving funds and interest
paid by banks on Federal tax collections deposited in those banks.
Net budgetary effect.—The Federal Reserve System owns Government securities for the purpose of carrying out monetary policy.
Most of the interest the Federal Reserve receives on these securities is paid to the Treasury as deposits of earnings and classified as
budget receipts. As shown in the addendum to the preceding table,
deposits of earnings are projected to be $14.4 billion in 1984 and
$14.8 billion in 1985. Deducting these receipts from the function
totals shows the net budgetary effect of interest transactions with
the public.
Tax expenditures.—A tax expenditure arises from the optional
deferral of interest income on U.S. savings bonds. Interest is normally taxed each year as it is earned, but the holder of the savings
bond may defer paying tax until the bond is redeemed. The estimate for this provision is $795 million in 1985.
5-161
ALLOWANCES
ALLOWANCES
The budget includes allowances to cover certain forms of budgetary transactions that are expected to occur, but that are not reflected in the program details shown in the preceding functions.
When these transactions actually take place, they are reported as
outlays or receipts for the appropriate agencies and functions
rather than as allowances. For this reason, allowances for completed years are always zero.
Three allowances are included in the budget: civilian agency pay
raises, increased employing agency payments for employee retirement, and allowances for contingencies.
ALLOWANCES
(Functional code 920; in millions of dollars)
Program
1983
actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
BUDGET AUTHORITY
Civilian agency pay raises
Increased employing agency payments for employee
retirement (proposed legislation):
Department of Defense
Civilian agencies
446
3,071
5,217
229
280
487
595
516
630
954
4,153
6,363
430
2,968
5,134
229
280
487
595
516
630
938
4,050
6,280
Allowances for contingencies:
Relatively uncontrollable programs
Other requirements
Total, budget authority
OUTLAYS
Civilian agency pay raises
Increased employing agency payments for employee
retirement (proposed legislation):
Department of Defense
Civilian agencies
Allowances for contingencies:
Relatively uncontrollable programs
Other requirements
Total, outlays
Civilian agency pay raises.—This allowance covers the costs of
future civilian agency pay raises, including increases for Coast
Guard military personnel. Two other pay raise allowances are included in the national defense function.
This allowance includes an assumed pay increase for civilian
personnel of 3.5% and a pay increase for the Coast Guard military
personnel of 5.5%, both effective in January of 1985. The President's final decision on the 1985 civilian pay increase will be made
after he reviews the recommendations of his pay agent and the
recommendations of the Advisory Committee on Federal Pay, as
5-162
THE BUDGET FOR FISCAL YEAR 1985
provided for by law. The pay raise allowance includes amounts for
1986 and 1987 that are based on the assumption that Federal
civilian employees will receive the same average percentage pay
increase as private sector workers.
Increased employing agency payments for employee retirement.—
The administration is proposing reforms of Federal employee retirement programs. One of the proposed reforms is an increase in
the contribution that Federal employees make toward their own
retirement, from the current 7% of salary to 8% in 1985 and 9% in
1986, with a matching increase in contributions by employing agencies. This allowance is the amount necessary to finance the higher
employing agency payments. The allowance includes the amount of
the increased contribution both by civilian agencies and by the
Department of Defense. Upon enactment of the administration's
proposal, the allowance amounts will be distributed to individual
agencies. The administration's retirement reform proposals are discussed in more detail in the income security function.
Allowances for contingencies—The Congressional Budget Act of
1974 requires that the budget include two specific allowances for
unanticipated spending or savings in relatively uncontrollable programs (such as social security) and in discretionary programs.
The estimates for each of these contingency allowances are zero
for all years. The contingency allowance for relatively uncontrollable programs is estimated to be zero because the chance of these
outlays being lower than the estimates is as great as the chance of
being higher. The contingency allowance for other requirements is
also assumed to be zero, with probable increases being offset by
anticipated decreases.
Allowances account for estimated net outlays of $0.9 billion in
1985.
5-163
UNDISTRIBUTED OFFSETTING RECEIPTS
UNDISTRIBUTED OFFSETTING RECEIPTS
Offsetting receipts are generally deducted from outlays and
budget authority at the subfunction and agency levels. In two
instances, however, such payments are deducted from the budget
totals as undistributed offsetting receipts. These are for the employer share of employee retirement, and rents and royalties on
the Outer Continental Shelf.
Undistributed offsetting receipts are estimated to be $17.5 billion
in 1984 and $35.3 billion in 1985. The increase primarily reflects
establishment of a military retirement trust fund. A detailed discussion of the trust fund may be found in the Introduction. Details
of all offsetting receipts are shown in table 15 in Part 9.
UNDISTRIBUTED OFFSETTING RECEIPTS
(Functional code 950; in millions of dollars)
Offsetting Receipts
BUDGET AUTHORITY AND OUTLAYS
Employer share, employee retirement:
Existing law:
Including accrual offset*
Excluding accural offset
Proposed legislation
1983 actual
1984 estimate
(-23,484) (-25,347) -27,222
-8,844
8,122
-651
Subtotal, employer share, employee retirement
-8,122
8,844
Rents and royalties on the Outer Continental
Shelf
-10,491
-8,700
Total
1985
estimate
-18,614
27,873
1986
estimate
1987
estimate
30,198 -32,776
-1,381
-1,464
31,579 -34,240
- 7 , 4 0 0 -11,300 -11,600
-17,544 -35,273 -42,879 -45,840
1
Beginning in 1985, the budget reflects establishment of a military retirement trust fund. Entries in parentheses show amounts for previous
years on a comparable basis by including imputed accruals for military retirement contributions reflected in the national defense function. A more
detailed discussion may be found in the Introduction.
Employer share, employee retirement.—The payments by Federal
agencies to employee retirement funds are counted as outlays of
the agencies and as receipts of the respective retirement funds.2 A
deduction equal to the total amount of these payments is included
in undistributed offsetting receipts in order to measure properly
the transactions of the Government with the public. Nearly twothirds of these payments are to the civil service retirement fund.
Most of the remainder is paid to the social security trust funds,
including medicare.
The administration's proposal to reform civil service retirement,
which is discussed in detail in the income security function, would
increase employing agency contributions for retirement, and, therefore, undistributed offsetting receipts. The administration's propos2
Included in the estimate of employing agency payments to trust funds is the effect of projected future pay
increases for Federal civilian employees, which are discussed in the allowances function.
420-000 O - 84 - 19 : QL 3
5-164
THE BUDGET FOR FISCAL YEAR 1985
al also includes increased contributions from off-budget Federal
entities (such as the Postal Service), which increase undistributed
offsetting receipts.
Rents and royalties from the Outer Continental Shelf (OCS).—
Payments to the Government for rents and royalties on the Outer
Continental Shelf are large, and their inclusion in a particular^
function would distort the display of Federal program budget authority and outlays. These estimates include cash bonuses received
from the leasing of OCS lands that have the promise of containing
oil and gas; annual rents on existing leases; and royalties, based on
a percentage of the value of production. OCS collections from certain lands immediately adjoining State lands or from disputed
lands are recorded in deposit funds rather than as offsetting receipts until the title to these amounts is settled. On September 30,
1983, such deposit funds held $5.7 billion.
The 5-year OCS leasing program now in effect significantly accelerates leasing by offering larger areas and by streamlining leasing
procedures. The current estimates of $8.7 billion in 1984 and $7.4
billion in 1985 assume that 8 OCS sales will be conducted in 1984
and 9 sales in 1985. 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
PERSPECTIVES ON
THE BUDGET
6-1
PERSPECTIVES ON THE BUDGET
This part of the budget explains several topics that help to
interpret the budget totals and to place the budget in perspective:
• the relationship of budget authority to outlays;
• limitations on the availability of funds;
• fiscal activities outside the Federal budget:
—outlays of off-budget Federal entities,
—Government-sponsored enterprises,
—loan guarantees, and
—tax expenditures;
• Federal debt and the relationship of budget funds to changes
in Federal debt;
• the difference between the initial 1983 budget estimate and
the actual outcome for:
—total outlays,
—outlays of relatively uncontrollable programs, and
—total receipts; and
• the allocation of windfall profit tax receipts.
RELATIONSHIP OF BUDGET AUTHORITY TO OUTLAYS
The Congress must usually provide budget authority, generally
in the form of appropriations, before Federal agencies can obligate
the Government to make outlays. For 1985, $1,006.5 billion of new
budget authority is proposed for those Federal agencies included in
the budget. In addition, $24.7 billion in new budget authority is
proposed for those Federal entities that are excluded from the
budget.x
Of the total new budget authority proposed for agencies within
the budget in 1985, $560.8 billion will require congressional action.
New budget authority of $628.9 billion will be available through
permanent appropriations under existing law. This consists mainly
of trust fund receipts, which in most trust fund programs are
automatically appropriated under existing law, and interest on the
public debt, for which budget authority is automatically provided
under a permanent appropriation enacted in 1847. This gross
amount of new budget authority is offset by $183.2 billion of deductions for offsetting receipts, which consist of transactions within
the Government and proprietary receipts from the public. Most of
1
Budget authority is discussed further in Part 7 of this volume.
6-2
6-3
PERSPECTIVES ON THE BUDGET
the budget authority proposed for off-budget Federal entities will
be available under existing law.
BUDGET AUTHORITY
(In billions of dollars)
1984
estimate
1983
actual
Description
Available through current action by the
Congress:
Enacted and pending appropriations
Proposed in this budget:
Appropriations
Supplemental requests
525.6
1985
estimate
1986
estimate
1987
estimate
521.7
551.5
605.4
641.7
5.3
5.9
6.1
0.4
3.1
5.2
3.1
.5
9.1
1.1
14.9
1.1
5.3
-0.4
Rescission proposals
To be requested separately:
Upon enactment of proposed legislation
Allowances:
Civilian agencies*
Department
of DefenseMilitary 2
Other allowances3
0.3
Subtotal, available through current action by the Congress
525.6
527.0
560.8
624.6
669.0
Available without current action by the
Congress (permanent appropriations):
Trust funds (existing law)
Interest on the public debt 4
Other
326.6
128.8
52.3
355.7
149.5
29.9
417.2
164.5
47.2
451.4
177.4
46.1
488.2
187.6
47.0
507.7
535.1
628.9
674.9
722.8
Subtotal, available without
action by the Congress
current
Deductions for offsetting receipts
Total, budget authority
166.5
149.6
-183.2
-199.2
-210.6
866.7
912.5
1,006.5
1,100.3
1,181.2
2.1
0.6
1.9
1.7
1.7
19.1
28.4
22.8
10.8
8.3
21.2
29.1
24.7
12.4
10.0
887.9
941.6
1,031.2
1,112.7
1,191.2
ADDENDUM
Budget authority for off-budget Federal
entities:
Available through current action by the
Congress
Available without current action by the
Congress
Total, off-budget Federal entities
Total, budget authority including offbudget Federal entities
*1$ 5 0 million or less.
Allowance for civilian agency pay raises.
2
Includes allowances for civilian and military pay raises for Department of Defense—Military.
3
Allowance for increased employing agency payments for employee retirement.
4
Increases in interest on the public debt are included as proposed legislation above in the following amounts: 1984, less than $50 million;
1985, $0.2 billion; 1986, $0.5 billion; 1987, $1.0 billion.
Not all of the new budget authority for 1985 will be obligated or
spent in that year: 2
2
This subject is also discussed in a separate OMB report, "Balances of Budget Authority," which can be
purchased from the National Technical Information Service shortly after the budget is transmitted.
6-4
THE BUDGET FOR FISCAL YEAR 1985
• Budget authority for most trust funds comes from the authority of these funds to spend their receipts from special taxes
and contributions and from Federal fund payments. Any balances arising from these receipts remain available to these
trust funds indefinitely in order to finance benefits and other
purposes specified by law.
• Budget authority for most major construction and procurement projects covers the entire cost estimated when the projects are initiated, even though costs will be incurred and
outlays made over a period extending beyond the year for
which the budget authority is enacted. Some exceptions are
made to this convention, notably for water resource programs.
• Government enterprises are occasionally given budget authority for standby reserves that will be used only in the event of
special circumstances.
• Budget authority for the subsidized housing programs is equal
to the Government's estimated obligation to pay subsidies
under contracts, which may extend for periods of up to 40
years.
• Budget authority for most other long-term contracts also
covers the estimated maximum obligation of the Government.
• Budget authority for many direct loan programs provides financing for a number of years; budget authority for many
insurance and loan guarantee programs consists of amounts
to be used only in the event of defaults or other contingent
claims made upon the programs.
As a result of these factors, a substantial amount of budget
authority carries over from one year to the next. Most of this is
earmarked for specific uses and is not available for new programs.
A small part may never be obligated or spent, because it is primarily for contingencies that do not occur or reserves that never have
to be used.
As shown in the chart on the next page, $178.2 billion of the
budget outlays in 1985 (19% of the total) will be made from budget
authority enacted in previous years. At the same time, $259.2
billion of the new budget authority proposed for 1985 (26% of the
total amount proposed) will not lead to budget outlays until future
years. Thus, the total budget authority for a particular year is not
useful for the analysis of that year's outlays, since it combines
various types of budget authority that have different short-term
and long-term implications for budget obligations and outlays. The
relationship between budget authority, obligations, and outlays is
discussed further in Part 7 of the Budget and displayed in table 9
of Part 9.
PERSPECTIVES ON THE BUDGET
6-5
Relation of Budget Authority to Outlays-1985 Budget
New Authority
Recommended
for 1985
To be spent in 1985
747.3
925.5
1,006.5
t
Unspent Authority
Enacted in
Prior Years
950.6
Outlays
in 1985
m
^
To be spent in
Future Years
766.7
Unspent Authority
for Outlays in
Future Years
1,025.9
LIMITATIONS ON THE AVAILABILITY OF FUNDS
Limitations on the availability of funds are another control
mechanism that supplements the use of appropriations or other
budget authority discussed in the previous section. Limitations on
the availability of funds generally are not the source of authority
to incur obligations; rather, they place a special ceiling on the use
of authority by limiting the amount that can be obligated or committed for a specific purpose. These limitations are established
most often through the appropriations process.
Some limitations establish stricter control over amounts provided
by appropriations or other acts.
• Many appropriation accounts provide funding for several activities. A limitation can single out and restrict obligations for
one or more of these activities within the overall budget
authority provided for the account. For example, the 1984
appropriation of $844 million for Operation of Indian programs in the Department of the Interior includes language
specifying that an amount not to exceed $55 million is available for higher education scholarships.
• In some instances limitations are established on the amount
that can be used for a particular type of expense, such as the
6-6
THE BUDGET FOR FISCAL YEAR 1985
purchase of passenger vehicles, travel, or entertainment.
These can be restricted to a single account; can cover all
amounts within a single appropriations act; or in some cases,
can cover amounts in more than one appropriations act or
amounts provided in substantive law.
Limitations are frequently used for the above purposes. However,
such use generally does not change the overall availability of funds
within an appropriation or fund account, because the amounts
covered by these limitations could be used for other purposes as
authorized by law.
Other limitations can affect the total level—not just the composition—of on and off-budget obligations and spending. As discussed
in the previous section on budget authority, limitations in one year
can affect spending in subsequent years as well as the current
year. They are used to control funds that would otherwise become
available under relatively broad authority provided in substantive
law without Appropriations Committee action. In most cases these
limitations apply either to some trust fund activities, which are
normally financed through earmarked receipts for a specific purpose, like the payroll tax receipts for the social security trust
funds; to revolving funds, which finance business-type operations
that generate their own income to pay their expenses; or to other
accounts where substantive law provides spending authority. The
three main types of this kind of limitation are as follows:
• Under the credit control system, limitations on Federal direct
loan obligations and guaranteed loan commitments are the
principal method of controlling the allocation of Federal
credit. 3 These limitations provide a mechanism for annual
Congressional review of the gross level of new loan activity.
Most direct loan programs are financed through revolving
funds, such as the rural development insurance fund and the
Export-Import Bank. All direct lending and all loan guarantees that result in direct loans by the Treasury Department's
off-budget Federal Financing Bank will result in gross outlays. The other guaranteed loan limitations, though also important because of effects on the credit market and the economy, generally do not lead to Government spending except in
the event of default.
• Certain Federal programs in addition to credit activities are
also constrained through the use of limitations on operating
and administrative expenses. For example, the use of the
budget authority of the highway and airport and airway trust
funds is controlled by limitations on the agency's ability to
obligate the Federal Government to make payments. Non3
The credit control system is discussed further in Part 7 of this volume and in Special Analysis F, "Federal
Credit Programs."
6-7
PERSPECTIVES ON THE BUDGET
loan, business-type activities that are controlled through limitations include the Federal buildings fund and the national
defense stockpile transaction fund, both through limitations
on the use of receipts.
• For many trust funds, all receipts of the fund automatically
become budget authority and are available for spending. The
Congress exercises control over the benefits that are paid
from these funds through the use of eligibility criteria and
benefit levels established in substantive law. With the use of
limitations, the Congress can also exercise control over the
administrative expenses of these trust funds. Such limits
apply, for example, to the old-age and survivors insurance
trust fund and the hospital insurance trust fund. Administrative amounts in the unemployment trust fund are not available
in the absence of authorization in appropriations acts.
The following table summarizes some of the major limits on the
availability of funds that affect on or off-budget spending. The
amounts identified are not inclusive of all limitations, especially
for credit programs, but help to illustrate that significant spending
changes can be directed without changing budget authority.
SELECTED LIMITATIONS THAT AFFECT OUTLAYS
(In billions of dollars)
1983
enacted
Direct loans:
Direct loan obligations
Guaranteed loan commitments resulting in direct loans by the FFB
Program levels (other than loans)..
Administrative expenses
Total, selected limitations-
1984
estimate
1985
estimate
12.7
9.9
11.3
7.2
11.9
8.5
16.8
7.6
11.0
1.3
18.4
7.8
41.1
44.8
38.5
FISCAL ACTIVITIES OUTSIDE THE FEDERAL BUDGET
The budget does not include a number of fiscal activities of the
Federal Government that result in spending similar to budget outlays. These activities, nevertheless, channel economic resources
toward particular uses in ways that are analogous to the effects of
budget spending.
The outlays of off-budget Federal entities are a major exclusion
from the budget. They are discussed in some detail below. This is
followed by a description of the Government-sponsored enterprises,
which are outside the budget because of their private ownership.
Loan guarantees, which are discussed next, allocate economic resources toward particular uses by providing credit to borrowers at
more favorable terms than would otherwise be available in the
private market. Taxation and tax expenditures, which also have
6-8
THE BUDGET FOR FISCAL YEAR 1985
significant allocative effects on the economy, are discussed subsequently.
The regulation of economic activity changes resource allocation
in different ways. Some types of regulation have economic effects
that in certain respects are similar to budget outlays by requiring
the private sector to make expenditures for specified purposes such
as safety and pollution control. The effects of this spending are
very important, but many of them have not been quantified satisfactorily and therefore cannot be clearly related to the budget.
Outlays of off-budget Federal entities.—Off-budget Federal entities are federally owned and controlled, but their transactions have
been excluded from the budget totals under provisions of law.4 5
Therefore, their spending is not reflected in either budget outlays
or the budget surplus or deficit; appropriation requests for their
programs are not included in the totals of budget authority for the
budget; and their outlays are not subject to the targets set by the
congressional budget resolutions. As shown in the table on page
6-25, the outlays of the off-budget Federal entities are added to the
budget deficit to derive the total Government deficit, which for the
most part has to be financed by borrowing from the public. When
off-budget outlays are financed by Treasury borrowing, as is usual,
the additional debt is subject to the statutory debt limitation; when
financed by the entities' own borrowing, it is not. In either case the
additional debt is part of the gross Federal debt.
Since the 1969 budget, the Federal Government has used the
unified budget concept as the foundation for its budgetary analysis
and presentation. This concept measures the Government's cash
payments to and from the public. The first departure from the
unified budget concept occurred in August 1971, when the ExportImport Bank was excluded by statute from the budget. Further
departures followed in the next few years under various statutes.
The Postal Service fund, the Rural Telephone Bank, the lending
transactions that became the Rural Electrification and Telephone
revolving fund, and the Housing for the Elderly or Handicapped
fund were removed from the budget. The Federal Financing Bank,
the U.S. Railway Association, and the Pension Benefit Guaranty
Corporation were established off-budget. The Exchange Stabilization Fund had always been outside the unified budget, although it
was initially classified as a deposit fund instead of an off-budget
Federal entity.
In the past few years the trend toward steadily increasing the
number of off-budget Federal entities has been changed. The
4
Financial statements for off-budget Federal entities are published in the Appendix, Budget of the United
States Government, Fiscal Year 1985. See Part III, "Off-Budget Federal Entities."
5
The Board of Governors of the Federal Reserve System is a Federal organization. It is excluded from the
budget and from this discussion.
PERSPECTIVES ON THE BUDGET
6-9
Export-Import Bank, the Housing for the Elderly or Handicapped
fund, and the Pension Benefit Guaranty Corporation were put onbudget by statute in different years. The operations of the Exchange Stabilization Fund were put on-budget in a series of legislative and administrative actions. Most of the transactions of the
U.S. Railway Association were brought into the budget by legislation that required its purchases of Conrail securities to be included
in the budget. Whenever a former off-budget entity was put onbudget, the budget outlays and deficits of previous years were
revised to include the entity to the extent feasible so that the
historical series measuring budget transactions would be as accurate and consistent as possible.
Two new off-budget Federal entities, however, were established
to carry out energy programs. The Synthetic Fuels Corporation was
created outside of the budget in 1980, although all of its funding is
provided in the budget totals of the Treasury Department. The cost
of purchasing oil for the strategic petroleum reserve was put offbudget beginning in 1982. The costs of operations, maintenance,
construction, and administration, however, remain in the budget.
The Social Security Amendments of 1983 provide that beginning in
1993 the old-age and survivors insurance trust fund, the disability
insurance trust fund, and the hospital insurance trust fund shall
be excluded from the budget.
Despite the exclusion of the off-budget entities from the budget,
some of the outlays related to their operations are nonetheless
included in the budget totals. The budget totals include the funding
of the Synthetic Fuels Corporation, certain expenses of the strategic petroleum reserve, the Federal payment to the Postal Service
fund, and the administrative expenses of the Rural Electrification
Administration lending programs and of the U.S. Railway Association. Moreover, while the budget authority and outlays of offbudget Federal entities are excluded from the budget totals, some
of their activities are subject to other methods of Presidential and
congressional review. For example, the credit budget, discussed on
page 6-19 and in Part 7 of this volume, includes the direct loans
and guaranteed loans of off-budget entities as well as budget agencies; and the outstanding debt and annual borrowing of the Postal
Service are limited by statute.
Even though the exclusion of off-budget Federal entities from the
budget results from provisions of law, the executive and the Congress have on several occasions expressed concern about this practice and have taken actions to control off-budget spending. This
Administration has been very concerned about the effects of offbudget direct loans in allocating credit toward particular uses and
about the necessity of financing these loans by additional Federal
borrowing from the public. It has used the credit budget process to
6-10
THE BUDGET FOR FISCAL YEAR 1985
help reduce off-budget direct loans from $20.9 billion in 1981 to an
estimated $13.2 billion in 1984 and still lower levels in 1985 and
later years.
This Administration also supports the basic intent of the bills
before the Congress that would include the outlays of programs
financed by the Federal Financing Bank (FFB) in the budget and
would charge these outlays to the agencies that use the FFB to
finance their programs. This would improve the review and control
of Federal outlays by both the Congress and the executive branch.
At the same time, these bills would prevent agencies from avoiding
the budgetary control process by financing their programs through
fully guaranteed obligations of the type ordinarily financed in the
investment securities market. Thus, this change would improve
budgetary control while maintaining the principle of efficient debt
management that was the purpose for setting up the FFB.
Within Congress, the budget resolutions for 1980 recommended
that the congressional budget process should accurately relate the
off-budget outlays to the budget. Following this procedural recommendation, the budget resolutions beginning in 1981 have included
targets for credit that covered the obligations for new direct loans
made by the off-budget Federal entities. The 1984 congressional
budget resolution furthermore recommended that the outlays resulting from FFB transactions should be attributed to the agencies
using the FFB rather than to the off-budget FFB itself.
The off-budget Federal entities, except for the strategic petroleum reserve account and the Postal Service, incur their outlays in
order to carry out direct loan programs. These programs have the
same general characteristics as the direct loan programs in the
budget. The outlays of the off-budget loan programs are approximately equal to the difference between the new loans disbursed
and the repayments of principal. The difference is due to such
factors as administrative expenses and interest paid and received.
Like direct loans in the budget, the loans of the off-budget entities are designed to allocate economic resources toward particular
purposes. Part 5 of the Budget, "Meeting National Needs: the Federal Program by Function," shows the outlays of the off-budget
Federal entities by function and discusses some of their more significant activities.
As the following table shows, the Federal Financing Bank accounts for most of the off-budget outlays. The only other off-budget
Federal entities with comparatively large outlays are the strategic
petroleum reserve account and, in some years, the Postal Service
fund. The outlays of the Postal Service fund and the Synthetic
Fuels Corporation are calculated net of offsets for the payments
that they receive from accounts in the budget. These offsets are
estimated to be $1.7 billion and $0.2 billion, respectively, in 1985.
6-11
PERSPECTIVES ON THE BUDGET
OUTLAYS OF OFF-BUDGET FEDERAL ENTITIES
(In billions of dollars)
Off-budget Federal entity
Federal Financing Bank
Rural Electrification and Telephone revolving fund..
Rural Telephone Bank
Strategic Petroleum Reserve account
Postal Service fund
U.S. Railway Association
Synthetic Fuels Corporation
Total..
1983
actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
10.4
*
.1
1.6
.3
-.1
12.7
10.2
6.9
4.4
.2
2.2
1.2
-.1
.2
1.7
2.8
.2
1.6
.1
.2
1.7
1.0
12.4
16.2
14.8
8.8
7.2
*$50 million or less.
The payment to the Postal Service fund is primarily for revenue
forgone from carrying certain mail at free or reduced rates; the
payment to the Synthetic Fuels Corporation is to fund its entire
operations.
The Federal Financing Bank does not operate programs itself.
Rather, the FFB finances other programs within the Government
by purchasing their debt securities, making direct loans on their
behalf, or purchasing their loan assets. FFB obtains the funds for
these transactions by borrowing an equal amount from Treasury.
The operation of the assisted programs remains with the agencies
that FFB finances.
FFB purchases of agency debt securities do not increase FFB
outlays. An agency incurs outlays when it spends the proceeds of
its borrowing from the FFB, so FFB outlays must exclude this
borrowing transaction in order to prevent double counting.
In contrast, FFB outlays are generated by its direct loans and its
purchases of loan assets. Both types of transactions involve loan
guarantees by another agency. FFB makes direct loan disbursements to the public upon the request of an agency, with the repayment of the loan to the FFB being guaranteed by that agency.
These direct loans are outlays outside the budget.
FFB purchases loan assets from various agencies, also upon
agency request. Loan assets are loans that an agency has made to
the public and for which repayments are still owed. The agency
guarantees the loan assets sold to the FFB in order to ensure that
the FFB will be paid in the event of default. Loan asset sales are
offsets to the outlays of the agency that sells them, regardless of
whether they are sold to the FFB or the public. Sales thus reduce
the size of an agency's outlays immediately rather than over the
normal course of time during which the loans that are sold would
be repaid. Therefore, if the selling agency's outlays are included in
the budget, the budget outlays caused by its direct loans are offset
by the amount of its sales of loan assets. When the FFB buys loan
6-12
THE BUDGET FOR FISCAL YEAR 1985
assets, it in effect converts direct loans that have already been
made by another agency into off-budget direct loans of the FFB.
According to law, the category of loan assets also includes certificates of beneficial ownership issued by the Farmers Home Administration and the Rural Electrification and Telephone revolving
fund. These certificates are securities backed by loans that the
agency continues to hold and service, and they comprise almost all
of the loan assets bought by FFB. The President's Commission on
Budget Concepts recommended that the sale of such securities (also
known as participation certificates) be treated as borrowing, since
as a means of financing outlays there is little difference between
an agency selling securities labeled "certificates of beneficial ownership/' the same agency selling securities labeled "debt," and the
Treasury selling securities labeled "debt."6
The remainder of FFB outlays consists of the interest that it
pays on its borrowings from Treasury, its administrative expenses,
and its payment of surplus income to the general fund, the sum of
which is offset by the interest that it receives on its holdings of
loans and debt. However, under current policy the net interest
received (less administrative expenses) is paid in the same year to
the general fund. Therefore, this remainder is approximately zero,
and FFB outlays approximately equal direct loan disbursements to
the public plus purchases of loan assets from other agencies, less
repayments.
In order to present the effects of the FFB's transactions for
different programs, the budget documents attribute the FFB outlays that are made on behalf of an agency to that agency itself.
The following table summarizes this attribution, showing the direct
loans to the public or purchases of loan assets, less repayments, for
selected agencies and programs. The attribution of FFB outlays by
function is shown as an addendum to the tables throughout Part 5,
and a complete listing is given in Part 8 in the section that displays the off-budget entities.
As shown in this table, FFB finances a wide variety of programs.
Since its inception, over half of its outlays have been for the
purchase of certificates of beneficial ownership from the Farmers
Home Administration. This proportion is now around one-quarter,
however, and is estimated to remain about the same in the next
few years due to large repayments of previously issued certificates
and declining FFB purchases of new certificates. In 1983 and 1984
over half of FFB outlays are accounted for by direct loans to the
public guaranteed by the Rural Electrification and Telephone revolving fund and the foreign military sales credit program. The
direct loans guaranteed by the Rural Electrification and Telephone
8
See Report of the President's Commission on Budget Concepts (Washington: U.S. Government Printing Office,
1967), pp. 8, 47-48, and 54-55.
6-13
PERSPECTIVES ON THE BUDGET
ATTRIBUTION OF FEDERAL FINANCING BANK OUTLAYS
(In millions of dollars)
Description
Outlays from loans, by agency or program:
Farmers Home Administration: certificates
of beneficial ownership
Rural Electrification and Telephone revolving fund:
Certificates of beneficial ownership .
Direct loans to public
Foreign military sales credit
Enerev
Housing and Urban Development:
Section 108 loan guarantees
Low-rent public housing
Transportation: Railroad programs
National Aeronautics and Space Administration
Small Business Administration
Tennessee Valley Authority: Seven States
Energy Corporation
Other
Subtotal, outlays from loans
nterest, administrative expenses, and payment of surplus income
Total, FFB outlays
1984
estimate
1983
actual
1985
estimate
1986
estimate
1987
estimate
2,955
4,367
2,621
1,481
1,218
344
2,657
2,858
554
403
3,565
3,631
436
459
3,185
1,964
270
262
4,005
-329
15
113
2,805
-1,024
60
443
15
134
160
890
47
1,169
*
-105
1,133
-14
-129
1,117
-15
189
182
131
636
409
-7
390
-86
384
161
-22
165
-12
88
-19
117
-45
31
-45
10,396
12,725
10,194
6,903
4,369
9
3
10,404
12,729
10,194
6,903
4,369
*$500 thousand or less.
revolving fund are estimated to remain sizable during 1985-87 and
to be the largest source of FFB outlays in these years. However,
the Administration has proposed that the foreign military sales
credit program shift its new activity to on-budget direct loans
beginning in 1985. This gradually reduces the estimated outlays
made by FFB for this program, as obligations made before 1985
result in fewer and fewer new direct loan disbursements and as
repayments continue to be received from loans previously made.
During the same years that FFB outlays for the foreign military
sales credit program decrease, though, FFB outlays for low-rent
public housing rise. FFB outlays as a whole are estimated to decrease substantially.
Since the Farmers Home Administration is on-budget, FFB's purchase of its certificates of beneficial ownership reduces total budget
outlays as well as Farmers Home outlays. The total outlays of the
Federal Government are not affected, since the decrease in budget
outlays is exactly offset by the increase in off-budget outlays. FFB's
purchase of certificates of beneficial ownership from the off-budget
Rural Electrification and Telephone revolving fund reduces the
outlays of this fund to a very small amount, as shown in the
preceding table on the outlays of off-budget entities. The purchase
6-14
THE BUDGET FOR FISCAL YEAR 1985
COMPARISON OF OUTLAYS FOR THE BUDGET, OFF-BUDGET FEDERAL ENTITIES, AND GOVERNMENTSPONSORED ENTERPRISES
(In billions of dollars)
Outlays
Federal Governmentx
Fiscal year
Off-budget
Federal entities
Total
Governmentsponsored
enterprises2
1965..
1966..
1967..
1968..
1969..
118.4
134.7
157.6
178.1
183.6
118.4
134.7
157.6
178.1
183.6
1.2
1.9
-2.9
1.7
4.3
1970..
1971..
1972..
1973..
1974..
195.7
210.2
230.7
245.6
267.9
0.1
1.4
195.7
210.2
230.7
245.7
269.4
9.6
*
4.4
11.4
14.5
1975..
1976..
TQ
1977..
1978..
1979..
324.2
364.5
94.2
400.5
448.4
491.0
8.1
7.3
1.8
8.7
10.4
12.5
332.3
371.8
96.0
490.2
458.7
503.5
7.0
4.6
2.3
9.7
24.5
25.9
1980
1981
1982
1983
1984 estimate..
576.7
657.2
728.4
796.0
853.8
14.2
21.0
17.3
12.4
16.2
590.9
678.2
745.7
808.3
870.0
25.3
33.4
42.4
34.3
38.2
1985 estimate..
1986 estimate..
1987 estimate..
925.5
992.1
1,068.3
14.8
8.8
7.2
940.3
1,000.9
1,075.5
41.0
*$50 million or less.
1
The 1972-80 data have been revised to include the Export-Import Bank, the Housing for the Elderly or Handicapped fund, and the Pension
Benefit Guaranty Corporation in the budget instead of with the off-budget Federal entities. The administrative expenses and interest collections of
the Exchange Stabilization Fund are included in the budget beginning in 1976, and the actual profits and losses realized from foreign exchange
transactions are included beginning in 1979. Earlier data for the ESF are not available on a comparable basis.
2
To prevent double counting, outlays of Government-sponsored enterprises exclude loans to other Government-sponsored enterprises and loans to
or from Federal agencies and off-budget Federal entities.
^ Not available.
reduces this fund's off-budget outlays and augments the off-budget
outlays of the FFB by an equal amount.
The table above compares the outlays of the off-budget Federal
entities with budget outlays.7 The outlays of the entities that are
now off-budget were negligible in 1973 but grew rapidly afterwards
for several years, especially due to the Federal Financing Bank.
However, the outlays of the off-budget Federal entities decreased
from 3.2% of budget outlays in 1981 to 1.6% in 1983. They are
estimated to decrease further after 1985, falling to 0.7% in 1987.
7
The historical data for budget outlays include Federal entities that are now off-budget for any period when
they were in the budget, and include Government-sponsored enterprises for periods when they had any
Government ownership. The outlays of former off-budget entities are included in the budget totals for all years
to the extent practicable.
PERSPECTIVES ON THE BUDGET
Government-sponsored
enterprises.—Several
6-15
Government-spon-
sored enterprises have been established and chartered by the Federal Government to perform specialized credit functions. The earlier enterprises were all created with partial or full Government
ownership and with direct Government control. In time, however,
they were converted to private ownership and some new enterprises were created as privately owned institutions.
The rule governing the budget treatment of these enterprises
was established in 1967 in accordance with a recommendation by
the President's Commission on Budget Concepts. The Commission
basically recommended that the budget exclude those Governmentsponsored enterprises that are entirely privately owned. However,
the Commission recommended that financial statements of their
operations be included in the budget documents, because the enterprises carry out federally designed programs and receive benefits
from their close association with the Government.
These benefits differ from one enterprise to another and from
one type of debt security to another. In most cases, but not necessarily all, they include such advantages as the following: their debt
securities can be held by federally regulated financial institutions
under circumstances where other private securities or State and
local securities are not eligible; they are exempt from Federal
income taxation; the interest on their debt securities is exempt
from State and local income taxation; and the enterprises are
perceived by the securities market to have a special relationship
with the Federal Government. Because of these benefits, the Government-sponsored enterprises can borrow at interest rates only
slightly higher than the interest rates paid by Treasury on Federal
debt.
The Federal Land Banks and Federal Home Loan Banks had
both become entirely privately owned a number of years before the
unified budget was adopted and therefore have always been excluded from the unified budget. The Federal National Mortgage
Association, the Banks for Cooperatives, and the Federal Intermediate Credit Banks became wholly privately owned by repaying
their Federal equity capital late in calendar year 1968 and were
accordingly removed from the budget for all later periods. The
Federal Home Loan Mortgage Corporation and the Student Loan
Marketing Association were later established with full private ownership. The Federal Home Loan Mortgage Corporation is not privately operated, however, because its board of directors consists
entirely of members of the Federal Home Loan Bank Board, who
are Federal Government officials appointed by the President.
8
Report of the President's Commission on Budget Concepts, pp. 29-30.
Financial statements for the Government-sponsored enterprises are published in the Appendix, Part V,
"Government-Sponsored Enterprises." Their borrowing and lending are discussed in Special Analysis E, "Borrowing and Debt," and Special Analysis F, "Federal Credit Programs."
9
4 2 0 - 0 0 0 0 - 84 - 20 : QL 3
6-16
THE BUDGET FOR FISCAL YEAR 1985
The Government-sponsored enterprises were all created to carry
out loan programs, either lending their funds directly for specifically authorized purposes, or buying loans originated by the private
groups that they were established to assist. The loans of these
enterprises primarily support housing, but also support agriculture
and higher education. As shown in the previous table, their outlays
have grown considerably—from relatively small amounts in the
latter 1960's to over $20 billion in 1978 and over $30 billion each
year since 1981.
The operations of the Government-sponsored enterprises are not
subject to the Federal budget review process, and the economic
assumptions on which their estimates are based are not necessarily
the same as the Administration's economic assumptions shown in
Part 2. These enterprises estimate that they will spend $41.0 billion
in 1985, which equals 4.4% of total Federal outlays in that year.
The following table shows the total amounts of Government-sponsored loans outstanding and net loans (i.e., the change in loans
outstanding) during 1983-85, in billions of dollars: 10
1983 actual
Loans outstanding, end of year
Net loans
261.2
37.1
1984 estimate
301.0
39.8
1985 estimate
343.9
42.9
Loan guarantees.—Government-guaranteed loans are loans for
which the Government guarantees the payment of the principal
and the interest in whole or in part in the event of borrower
default. Loan guarantees are contingent liabilities of the Federal
Government. They generally do not result in budget outlays except
in case of default.
Guaranteed loans may be made to many types of borrowers:
individuals, businesses, State and local governments, and foreign
governments. The guarantees may be full or partial, and in some
programs, such as the guaranteed student loan program, they are
supplemented by explicit subsidies or other forms of assistance.
Most guaranteed loans are made by banks or other private institutional lenders, and may take the form of mortgages or bank loans.
Others are sold in securities markets. In 1983, 16% of total loan
guarantee commitments were used to guarantee direct loans disbursed or purchased by the Federal Financing Bank (FFB), which
is described above on pages 6-11 to 6-14. Since the FFB is an offbudget Federal entity, these disbursements are off-budget direct
loans. An additional amount of guaranteed loans originally made
10
In order to prevent double counting in adding Government-sponsored loans to Federal direct loans and
guaranteed loans, this table excludes loans from one Government-sponsored enterprise to another, loans from
the Federal Government, and guaranteed loans acquired.
PERSPECTIVES ON THE BUDGET
6-17
by private institutions is purchased and held by privately owned,
Government-sponsored enterprises, as the following chart shows.
$ Simons
SBilHons
600;
eoo
Held by Federal Financing Bank
Held by Government-Sponsored
Enterprises
A loan guarantee transfers some or all of the default risk of the
loan from the private lender to the Government. Where the Government guarantees timely payment of 100% of the loan principal
and interest, it effectively transforms a private loan into a neargovernment loan financed by a near-government security. The
guaranteed loan will not have all the attributes of a Government
loan, since private lenders will negotiate different financial terms
and conditions (e.g., fees) than would a Government agency. Nor
will the guaranteed loan have all of the attributes of a U.S. Treasury security. It will be less liquid and may involve higher transaction costs.
Loan guarantees are designed to allocate economic resources to
particular uses by providing credit at more favorable terms than
would otherwise be available in the private market. If loan guarantee recipients would not have been sufficiently creditworthy to
borrow without Federal assistance, the subsidy provided by the
guarantee will be large and the guarantee will directly reallocate
credit toward federally selected uses, increasing the total volume of
credit channeled into these uses. This leaves a smaller supply of
credit to be allocated to those potential borrowers who do not
receive assistance, and increases the interest rate to these borrow
6-18
THE BUDGET FOR FISCAL YEAR 1985
ers. However, the guarantee does not always change the allocation
of credit to such a large degree. Some beneficiaries of loan guarantee programs would have been able to secure the funds privately,
without Government support. For example, guaranteed mortgage
credit might be used to finance, at a lower cost, a house that would
have been purchased anyway.
Many of the guarantee programs operated by the Federal Government began in efforts to revive the economy during the depression of the 1930's. The Reconstruction Finance Corporation, created
in 1932, was the forerunner of the Export-Import Bank, the Small
Business Administration, and other credit programs. The Nation's
single largest credit program, the Federal Housing Administration's (FHA) home mortgage insurance program, was created in
1934 to stimulate housing purchases.
During the 1950s and 1960s housing credit dominated Federal
credit activities. The home mortgage programs of the FHA and
Veterans Administration accounted for 81% of the total volume of
new commitments for guaranteed loans in 1956. As the chart below
shows, the range of activities financed with Federal guarantees has
widened since that time. Guarantees are now offered for business,
agriculture, energy, and education, though housing continues to
Relative Shares of New Commitments
for Guaranteed Loans :• ^ ^<:\ 7 • •
partment
///of////
'/Agriculture
ij HOUSing :ii;i:i!iiiii;;i;K\J "lijiiiijijiiiiiiiiiiiiiiii; HOUSing::::::::::::::::::::
< y**.-,-'-T'
PERSPECTIVES ON THE BUDGET
6-19
dominate. For the 1985 budget, home mortgage programs account for
57% of all new guaranteed loan commitments. Assistance for public
housing accounts for 15%, and aid to business accounts for 17%. The
remaining 11% is primarily for the guaranteed student loan program and for agriculture.
Because loan guarantees are not included in the outlay totals or,
usually, in the budget authority totals, they were formerly excluded as well from normal budget discipline. In January 1980 a
central control system for Federal credit was instituted to subject
guaranteed and direct loans to greater scrutiny throughout the
budget process. This system consisted of the Federal credit budget
and appropriations bill limitations. The credit budget covers all
direct and guaranteed loans by Federal agencies, whether on- or
off-budget. Control is effected through appropriations bill limitations, which cover 46% of all new guaranteed loan commitments to
be extended in 1985. (See Part 5 for a discussion of credit programs
by function, Part 7 for a more complete description of the credit
budget and credit control system, and Special Analysis F, "Federal
Credit Programs," for a detailed discussion of Federal credit activities.)
Taxation and tax expenditures.—Taxation provides the Government with receipts, which withdraw purchasing power from the
private sector in order to finance direct Government expenditure.
The structure of the tax system that raises these receipts has
important effects on the allocation of resources among private uses
and the distribution of income among individuals. These effects are
caused by the choice of taxes and by the structural characteristics
of each different tax—for example, by the rate schedules, exemptions, deductions, and exclusions of the individual income tax. The
effects of taxation on resource allocation and income distribution
are analogous to the effects of outlays.
Some features of the tax system have been defined as "tax expenditures" and receive special attention in the budget. Tax expenditures are defined as amounts attributable to provisions of the
Federal income tax laws that allow a special exclusion, exemption,
or deduction from gross income or that provide a special credit, a
preferential rate of tax, or a deferral of tax liability. The Congressional Budget Act requires that estimates of tax expenditures be
published in the budget.
Tax expenditures are so designated because they are one means
by which the Federal Government pursues public policy objectives,
and because in many cases they can be regarded as an alternative
means of achieving the same objectives as direct expenditures.
They can also be regarded as an alternative means of achieving the
same objectives as other instruments of Government policy, such as
6-20
THE BUDGET FOR FISCAL YEAR 1985
loan guarantees, regulations, and provisions of the tax law other
than those provisions that cause tax expenditures. There are numerous examples of the similarity in objective between tax expenditures and direct outlays. For instance, the cost of buying ships
built in U.S. shipyards is reduced both by construction subsidies
and by the deferral of tax on the income of shipping companies
that is used to buy new ships; and the cost of borrowing by eligible
persons and businesses is reduced both by direct loans at subsidized
interest rates and by tax exemption for bonds. Similarly, State and
local governments benefit both from direct grants and from the
ability to borrow funds at tax-exempt rates; and individuals benefit
both from social security payments and from the tax exemption of
most of these payments.
Tax expenditures ordinarily result from permanent legislation
and therefore are not submitted to the Congress each year and do
not routinely receive a formal and systematic annual review. In
this sense they share a legislative status with entitlement programs, such as social security, which do not require annual appropriations. However, tax expenditures, other provisions of the
income tax, and other tax laws are generally reviewed whenever
fiscal policy decisions are considered regarding the overall level of
tax receipts. During the last three years the Administration and
the Congress have reviewed entitlement programs, tax expenditures, and other provisions of tax law. Part of this work led to the
Tax Equity and Fiscal Responsibility Act of 1982, which changed a
number of tax expenditures and other tax law provisions.
The classification of certain provisions of law as resulting in tax
expenditures requires some baseline tax structure against which
the actual tax law can be compared. Deviations of the law from
this standard are deemed to cause tax expenditures. The Congressional Budget Act does not provide an exact specification of the
baseline against which tax expenditures are measured.
The baseline used in the budget is intended to consist of the
general provisions of the Internal Revenue Code. For the individual
income tax, the baseline in the 1983 and 1984 budgets included
those provisions that exist under current law for the definition of
taxpaying units (including the separate corporation income tax),
graduated rate schedules, personal exemptions, zero-bracket
amounts (standard deductions), and basic accounting rules. The
baseline before 1983 was similar but in addition required that the
time pattern of depreciation deductions approximate the useful life
of assets and that all cash transfers from government be included
in taxable income. By definition, characteristics of the tax structure included in the baseline do not give rise to tax expenditures.
The use of many of the general provisions of the Internal Revenue Code for defining both of these baseline tax structures makes
PERSPECTIVES ON THE BUDGET
6-21
it clear that listing an item as a tax expenditure does not imply
that it is either a desirable or an undesirable provision. When
different provisions of the Code are considered to be in the baseline, the list of tax expenditures is different and the amounts of
particular tax expenditures may also be different. For example, in
contrast with the baseline used in earlier years, the baseline in the
1983 and 1984 budgets included the accelerated cost recovery
system (ACRS) as the general method for depreciating assets, and
it excluded public assistance payments from baseline income.
Therefore, under this standard, neither the use of ACRS nor the
exclusion of public assistance benefits from adjusted gross income
gave rise to tax expenditures. This year's tax expenditure estimates
show tax expenditures relative to both of these baselines.
The baselines used for the 1983-84 budgets and for earlier years
are not the only baselines that might be used. In particular, a
baseline tax structure might reflect a normative judgment about a
fully comprehensive income tax base or consumption tax base. A
fully comprehensive income tax base, among other changes, would
adjust incomes for the effects of inflation; would integrate the
individual and corporation income taxes rather than regarding the
separate tax treatment of individuals and corporations as part of
the baseline tax structure; would include imputed income, such as
the consumption benefits received from owner-occupied homes; and
would tax income when it was accrued instead of when it was
realized. Thus, for example, the failure under present law to take
account of inflation in measuring capital gains and interest income
would be regarded as negative tax expenditures. Alternatively,
under a consumption tax base, income would not be taxed until
consumed. However, the proceeds of loans and of withdrawals from
savings accounts would be taxable if they were used for consumption. Under either of these alternative baseline structures, the list
of tax expenditures and their estimated amounts would be different
than they are now.
Regardless of how the baseline is defined, the provisions of tax
law that do not result in tax expenditures deserve as much scrutiny as the provisions of tax law that do. This is because the other
provisions also have major effects on the allocation of resources
and the distribution of income, and because these other provisions
may be alternative means of achieving the same objectives or
analogous objectives as tax expenditures achieve. For example,
investment in equipment may be stimulated by either an increase
in the investment tax credit or a decrease in the corporation
income tax rate; the former is a change in a tax expenditure, but
the latter is not. Similarly, income support may be provided by
either the exclusion of social security benefits from taxable income
6-22
THE BUDGET FOR FISCAL YEAR 1985
or by the zero-bracket amount (standard deduction); the former
causes a tax expenditure, but the latter does not.
Tax expenditures are estimated in two steps. First, the revenue
loss of a tax provision is estimated, i.e., the difference between tax
receipts and what tax receipts would be if the tax law were different. If removing a tax provision would increase taxable income, for
example, the revenue loss is estimated as the increase in taxable
income multiplied by the tax rate that would be paid on the
additional income.
The revenue loss is then adjusted to an outlay equivalent, i.e.,
the amount of outlays that would be required to provide an equal
after-tax income to the taxpayer (and thereby an equal incentive)
as the special tax provision provides. In many cases the required
outlays are greater than the revenue loss, because taxpayers would
have to pay taxes on the higher income derived from the outlays.
For example, one tax expenditure provision is the exclusion from
taxable income of the value of housing and meals supplied to
military personnel. If the Government were to repeal this tax
exclusion and instead pay higher salaries, the increase in salaries
would be taxed. Consequently, if the Government were to use taxable direct expenditures rather than tax expenditures and were to
provide the same total after-tax compensation, the increase in
direct outlays for higher salaries would have to be greater than the
revenue loss under the special tax provision. The Federal deficit
would be the same in either case, however, because higher outlays
would be required only to the extent needed to make up the difference caused by higher tax receipts.
This adjustment makes the tax expenditures more comparable
with direct outlays than the revenue loss would be and therefore
more useful in analyzing Federal programs. For some tax expenditures, though, the revenue loss is equivalent to a direct outlay
without any adjustment. Special Analysis G, "Tax Expenditures,"
presents estimates of both tax expenditures and revenue losses, but
for program analysis in this budget only the outlay equivalent
estimates are used.
The size of a particular tax expenditure depends not only on the
tax provision in question but also on the interaction of this provision with the rest of the tax structure. The reductions in the
income tax rate schedule enacted in 1981, for example, automatically decreased many tax expenditures below what they otherwise
would have been. A tax rate reduction decreases the amount of
receipts that would be gained by repealing deductions, exemptions,
and exclusions, because lower tax rates are applied to the increase
in taxable income.
The interaction among tax provisions means that special calculations are generally needed to add tax expenditures together. For
PERSPECTIVES ON THE BUDGET
6-23
example, if more than one exclusion from individual income were
ended, the gain in receipts would generally be greater than the
sum of the separate tax expenditures, because some taxpayers
would move into higher tax rate brackets. If more than one personal deduction were ended, the gain in receipts would generally be
smaller than the sum of the separate tax expenditures, because
some taxpayers would switch to using the zero-bracket amount
(standard deduction). Consequently, adding together separate tax
expenditures would usually be misleading, and they are not aggregated in this budget except for specially computed totals by functional category.
Tax expenditures are presented at two places in the budget. Part
5, "Meeting National Needs: the Federal Program by Function,"
discusses the major tax expenditures in each functional category,
together with outlays and guaranteed loans, in order to describe
more fully the Government's policy. Special Analysis G, "Tax Expenditures," analyzes the concept and measurement of tax expenditures and presents a complete list of tax expenditure estimates for
1983-85.
As discussed in Part 4 of this volume, "Budget Receipts," several
tax laws were enacted last year. The bipartisan Social Security
Amendments of 1983 included changes in the payroll tax and the
individual income tax that helped to ensure the financial solvency
of the social security trust funds. One of these changes affected tax
expenditures. Part of the social security benefits received by people
whose incomes are above specified levels is now subject to tax,
which reduces the tax expenditures from not including any social
security benefits in adjusted gross income.
The Administration is proposing a number of tax changes in the
present budget. Several new or expanded tax expenditures would
serve diverse purposes. These tax expenditures include a higher
maximum annual contribution to an individual retirement account
that is established by a working person for himself or herself and
for a spouse who does not receive compensation; a larger tax credit
for dependent care expenses paid by low income individuals; a
group of incentives for the redevelopment of depressed areas designated as "enterprise zones"; a tuition tax credit for students at
private elementary and secondary schools; and education savings
accounts for college and university expenses. Other tax expenditures would be reduced. Health insurance premiums that employers pay as part of the compensation of their employees would be
included in employees' adjusted gross incomes to the extent they
exceeded specified levels; and the use of private purpose taxexempt bonds, including industrial development bonds, would be
limited. The tax expenditure for income from exports would be
6-24
THE BUDGET FOR FISCAL YEAR 1985
altered, several expiring tax expenditures would be extended, and
other measures would affect receipts but not tax expenditures.
BUDGET FUNDS AND THE FEDERAL DEBT
The budget consists of two major groups of funds: Federal funds
and trust funds.
The Federal funds are derived mainly from taxes and borrowing
and are used for the general purposes of the Government. Most of
these funds are not restricted by law to any specific Government
program. The trust funds, on the other hand, collect certain taxes
and other receipts for specified purposes, such as paying social
security and unemployment insurance benefits.
BUDGET TOTALS BY FUND GROUP
(In billions of dollars)
1983 actual
Budget receipts:
Federal funds
Trust funds
1985
estimate
1986
estimate
1987
estimate
382.4
317.4
-99.2
Interfund transactions
Total budget receipts ...
Budget outlays:
Federal funds
Trust funds
Interfund transactions
1984
estimate
.. .
Total budget outlays.. ..
Budget surplus or deficit ( — ) :
Federal funds
Trust funds
Total, budget surplus or deficit (—)
Addendum:
Deficit (-), off-budget Federal entities1
Total, surplus or deficit (—) including
off-budget Federal entities
420.0
331.5
-81.4
464.2
393.5
-112.6
507.2
428.7
-121.0
552.6
465.1
-129.9
600.6
670.1
745.1
814.9
887.8
600.9
294.3
-99.2
628.8
306.4
81.4
687.2
350.8
-112.6
737.9
375.2
121.0
797.5
400.6
-129.9
796.0
853.8
925.5
992.1
1,068.3
-218.5
23.1
-208.8
25.1
-223.0
42.6
-230.6
53.5
-245.0
64.5
-195.4
-183.7
-180.4
-177.1
-180.5
-12.4
-207.8
16.2
-199.9
14.8
-195.2
-88
-185.9
— 7.2
-187.7
1
No off-budget Federal entities collect governmental receipts, so receipts are not adjusted when on and off-budget totals are consolidated. The off-budget
outlays would be classified as Federal funds outlays if they were included in the budget.
The budget includes the receipts and outlays of both the Federal
funds and the trust funds and, as shown in the table above, deducts
the various transactions that occur between them. The budget
totals for receipts and outlays therefore generally display the net
transactions of the Federal Government with the public. The
budget does not, however, include the net transactions with the
public of the Federal Financing Bank and the other off-budget
Federal entities, which have been excluded from the budget under
provisions of law.
Thus, as shown in the following table, the combined deficit or
surplus of the budget and the off-budget entities is the principal
6-25
PERSPECTIVES ON THE BUDGET
BUDGET FINANCING AND CHANGE IN DEBT OUTSTANDING 1
(In billions of dollars)
Description
1983 actual
1984
estimate
1985
estimate
1986
estimate
1987
estimate
Budget surplus or deficit (—)
Deficit ( - ) of off-budget Federal entities
-195.4
-12.4
-183.7
-16.2
180.4
-14.8
177.1
-8.8
180.5
-7.2
Total, surplus or deficit ( - )
-207.8
-199.9
-195.2
-185.9
-187.7
Means of financing other than borrowing from
the public:
Decrease or increase ( - ) in cash and other
monetary assets
-9.7
17.1
Increase or decrease ( - ) in liabilities for:
Checks outstanding, etc
Deposit fund balances
Seigniorage on coins
2.5
2.1
.5
-1.0
.3
.5
1.5
.1
.6
.8
.8
4.6
16.9
2.2
.8
.8
-212.3
-183.0
193.0
185.2
-186.9
212.3
183.0
193.0
185.2
186.9
.7
21.3
-.3
.9
2.6
24.8
-1.3
.6
3.4
42.0
.9
-.7
53.5
64.5
22.6
26.7
43.8
53.5
64.5
234.9
209.7
236.8
238.7
251.4
Total, means of financing other than
borrowing from the public
Total, requirements for borrowing from
the public
Change in debt held by the public
Change in Federal agency investments
in Federal debt:
Federal funds
Trust funds 2
Off-budget Federal entities
Deposit funds 3
Total, change in Federal agency investments in Federal debt
Change in gross Federal debt
*$50 million or less.
1
Several amounts have been assumed to be zero in 1986 and 1987 because they are usually small and cannot be estimated accurately.
2
Estimates for 1986 and 1987 are equal to the total trust fund surplus.
3
Certain deposit funds only.
determinant of the change in the Federal debt held by the public.* *
The budget and off-budget deficits, together with the other factors
noted in this table, are estimated to increase the Federal debt held
by the public from $1,141.8 billion at the end of 1983 to $1,517.8
billion at the end of 1985, with the increase in 1985 being about the
same as in 1984. Borrowing is projected on a basis consistent with
the economic assumptions that are explained in Part 2 of this
volume.
Gross Federal debt is the sum of the debt held by the public and
the debt held by the Government itself, which includes such investments as the Treasury debt held by the social security and other
trust funds. At the end of 1985 gross Federal debt is estimated to
be $1,828.4 billion, of which debt held by the Government itself is
1x
Table 13 in Part 9 of this Budget contains more detail on budget financing through 1985 and shows the
levels of debt from 1982 to 1985. Federal debt is discussed further in Special Analysis E, "Borrowing and Debt."
6-26
THE BUDGET FOR FISCAL YEAR 1985
$310.6 billion. Thus, gross Federal debt is much larger than the
Federal debt held by the public.
Gross Federal debt is estimated to rise by $236.8 billion during
1985. As indicated in the lower section of the previous table, $43.8
billion of this increment will be held in trust funds and other
Federal accounts. This is mainly due to the investment of trust
fund surpluses in Treasury debt.
The gross Federal debt consists almost entirely of securities
issued by the Treasury Department. However, a few Government
agencies are authorized to issue their own debt instruments to the
public or to other Government agencies and funds. These securities
are part of the gross Federal debt. At the end of 1983 the public
held $3.6 billion of agency debt, most of which was issued some
years ago. The greater part consists of revenue bonds issued by the
Tennessee Valley Authority and participation certificates in pools
of loans issued by the Government National Mortgage Association
on behalf of several agencies. Agency debt is expected to fall by
small amounts each year as existing agency debt matures and most
new agency borrowing is from the Federal Financing Bank (FFB).
The FFB finances its purchases of agency debt by borrowing from
Treasury, which in turn borrows from the public. To prevent
double counting, FFB's holdings of agency debt are not included in
gross Federal debt.
FEDERAL FUNDS FINANCING AND CHANGE IN DEBT SUBJECT TO LIMIT
(In billions of dollars)
1983
actual
1984
estimate
1985
estimate
Federal funds surplus or deficit (—)
Deficit ( - ) of off-budget Federal entities
-218.5
-12.4
-208.8
16.2
-223.0
-14.8
Total, amount to be financed
-230.8
-225.0
-237.8
-9.7
17.1
4.3
2.1
.5
.7
.3
.5
2.0
.1
.6
-2.8
17.2
2.8
-1.3
1.9
1.8
-.1
-.1
-.1
-235.0
-209.8
-236.9
235.0
209.8
236.9
Description
Means of financing other than borrowing:
Decrease or increase ( - ) in cash and monetary assets
Increase or decrease (—) in liabilities for:
Checks outstanding, etc
Deposit fund balances
Seigniorage on coins
Total, means of financing other than borrowing
Decrease or increase ( — ) in investments in Federal debt by Federal
funds, off-budget entities, and deposit funds 1
Increase or decrease ( - ) in Federal funds and off-budget entity debt
not subject to limit
Total, requirements for borrowing subject to debt limit
Change in debt subject to limit
* $50 million or less.
1
Certain deposit funds only.
6-27
PERSPECTIVES ON THE BUDGET
Almost all Treasury securities are covered by a general statutory
debt limitation. The present limit is $1,490 billion. However, the
debt subject to limit is estimated to rise to $1,587.8 billion by the
end of 1984. Therefore, to permit the Federal Government to meet
its obligations, the limit will have to be raised during 1984.
Debt subject to the general statutory limit, like gross Federal
debt, includes debt held internally within the Government, such as
the Treasury issues held by the social security trust funds. Debt
subject to the statutory limit is therefore much larger than the
debt held by the public and is nearly as large as gross Federal debt.
It is a little less than gross Federal debt primarily because most
agency debt is excluded from the general statutory limitation.
Since trust fund surpluses for the most part have been invested
in debt securities, rather than being held as cash assets, the Federal funds deficit and the deficit of the off-budget Federal entities
must be financed primarily by selling Federal debt. This debt is
almost entirely subject to the statutory limit. As shown in the
previous table, the Federal funds deficit plus the off-budget deficit
was $230.8 billion in 1983, and the increase in debt subject to
statutory limit was $235.0 billion. Thus, these deficits approximately accounted for the increase in the debt subject to limit.
THE INCREASE IN TOTAL 1983 OUTLAYS OVER THE
INITIAL BUDGET ESTIMATE
Budget outlays for 1983 were $796.0 billion, which is $38.3 billion
higher than the initial estimate made by the Administration in its
budget transmitted to Congress in February 1982. The actual outlays in recent years have consistently exceeded the initial budget
estimate. The difference, however, has declined steadily from 9.0%
in 1980 to 7.0% in 1981, 5.4% in 1982, and 5.1% in 1983. This
section reviews the major causes of the 1983 increase.
The following table compares the initial outlay estimate and the
actual total in current and constant dollars and as a percent of
GNP. Constant dollar outlays were 7.5% above the initial estimate.
The table also compares defense and nondefense outlays in current
dollars. The actual outlays for defense were 4.8% below the initial
1983 OUTLAY DIFFERENCES
(Dollars in billions)
February 1982
estimate
Budget outlays:
Current dollars
National defense
Nondefense
Constant (fiscal year 1972) dollars
As a percent of GNP
Off-budget outlays (current dollars)
757.6
221.1
536.5
329.9
22.1
15.7
Actual
796.0
210.5
585.5
354.5
24.7
12.4
Percent change
5.1
4.8
9.1
7.5
11.8
-21.0
6-28
THE BUDGET FOR FISCAL YEAR 1985
estimate. Outlays for nondefense programs were 9.1% higher than
the estimate.
Chronology of outlay increases.—The Administration's initial
outlay estimate for 1983 was $757.6 billion. As shown on the table
below, this was revised several times. In April 1982, the estimate
increased $9.4 billion due primarily to changes in agricultural
market conditions. This increase was partly offset in July for several reasons, the most important of which was changes made by
Congress in the First Congressional Budget Resolution that were
endorsed by the Administration. In February 1983, the outlay estimate increased $43.7 billion, with upward revisions for unemployment compensation and farm price supports accounting for 70% of
this increase. Estimated outlays increased an additional $4.6 billion
due to revisions in April and July 1983, largely because of congressional action on the 1983 jobs bill and the Social Security Amendments of 1983. Actual outlays were $13.9 billion below the July
1983 estimates due to lower than anticipated spending by most
Government agencies. The largest shortfalls occurred in the Department of Defense and the farm price support program.
CHRONOLOGY OF THE 1983 OUTLAY INCREASE
(In billions of dollars)
February 1982
757.6
Changes:
April 1982 (April Update): The largest changes were a $4.9 billion increase in farm price
supports, a $1.9 billion increase in net interest, and a $1.1 billion decrease in offsetting
receipts from the Outer Continental Shelf
July 1982 (Mid-Session Review): A $2.5 billion increase in net interest was more than
offset by a $2.1 billion decrease in unemployment compensation and a $4.1 billion
decrease to adjust for action in the first Congressional Budget Resolution
February 1983 (1984 Budget): The largest increases were in unemployment compensation
($14.3 billion), farm price supports ($16.4 billion), and food and nutrition assistance
($4.1 billion)
April 1983 (April Update): A $5.4 billion decrease in unemployment compensation was
more than offset by a $3.0 billion increase in farm price supports and increases due to
the 1983 jobs bill ($2.1 billion) and the Social Security Amendments of 1983 ($1.0
billion)
July 1983 (Mid-Session Review): The largest increase was a $1.1 billion technical
reestimate in the Social Security program
October 1983 (Year-End Statement): The largest decreases were for the Department of
Defense ($3.9 billion) and farm price supports ($3.0 billion)
Total increase
Actual
9.4
-5.5
43.7
3.3
1.3
-13.9
38.3
796.0
PERSPECTIVES ON THE BUDGET
6-29
Major causes of the increase.—The following table shows the
approximate distribution of the increase in budget outlays according to three categories: (1) policy changes, (2) economic conditions
that were different from the original assumptions, and (3) estimating and other differences.12
Changes in policy explain approximately $18.7 billion of the total
increase. The net effect of changes in economic conditions was an
increase of $3.0 billion. Estimating differences and other changes
account for the remainder.
SUMMARY OF REASONS FOR DIFFERENCES IN 1983 OUTLAYS
(in billions of dollars)
Total
Reasons for difference (net):
Policy changes
Economic conditions
Estimating differences and other changes..
Total
18.7
3.0
16.6
38.3
Policy changes to the 1983 budget proposals were a result of both
revised Administration proposals and congressional action that differed from the initial Administration proposals. The net increase
due to policy changes was approximately $18.7 billion. Outlays for
national defense programs were $8.8 billion lower than proposed,
while outlays for nondefense programs were $27.5 billion higher.
Policy changes were much more important than in the two previous years; they accounted for a $5.7 billion increase in 1981 and a
$0.9 billion outlay decrease in 1982.
Policy changes for discretionary programs accounted for $1.4
billion, or only 7 percent of the total policy increase. This includes
increases enacted in the 1983 jobs bill and in both regular and
supplemental appropriations bills. Congress reduced outlay levels
for annually funded defense-related programs by $5.3 billion from
the Administration's request.
Outlays for entitlement programs were about $12.1 billion above
the Administration's proposal due to policy changes. Three-quarters of this increase is accounted for by changes affecting unemployment compensation, railroad retirement, and food stamps. Outlays for the unemployment compensation program were $5.8 billion
above the original proposal due to congressional enactment of the
Federal supplemental compensation program, revision of the program for unemployment compensation for ex-service members, and
failure to enact $0.1 billion in proposed savings. Railroad retirement ($2.0 billion) and food stamps ($1.7 billion) increased as a
12
The amounts in the first two categories account for only the major items, and the third category is a
residual. The figures, therefore, are approximations.
6-30
THE BUDGET FOR FISCAL YEAR 1985
result of Congress's failure to enact savings proposed by the Administration.
Policy changes for other mandatory programs and for several of
the user fee proposals also increased outlays. For the Commodity
Credit Corporation, policy changes of $3.5 billion were composed of
several items, including increases in grain reserve loan rates, increased donations of dairy products owned by the Commodity
Credit Corporation, and acreage diversion payments and export
promotion subsidies mandated by the Omnibus Budget Reconciliation Act of 1982.
Economic conditions differed from those forecast in February
1982 as shown in the following table. Growth in real GNP was 4.7
percentage points lower than projected for 1982 but slightly higher
for 1983. Inflation was lower than projected for both 1982 and 1983,
whether measured by the GNP deflator or by the Consumer Price
Index. The unemployment rate was 0.7 percentage points higher
than projected in 1982 and 1.6 percentage points higher in 1983.
Interest rates, as measured by the 91-day Treasury bill rate, were
1.0 percentage point lower than estimated for 1982 and 1.9 percentage points lower in 1983.
COMPARISON OF FEBRUARY 1982 ECONOMIC ASSUMPTIONS AND ACTUAL ECONOMIC
PERFORMANCE
(Calendar years)
February 1982 estimate
1982
Percent change:
GNP (constant 1972 dollars): 4th quarter over 4th quarter
Inflation (4th quarter over 4th quarter):
GNP deflator
Consumer Price Index (CPI)
Civilian unemployment rate (annual average)...
Interest rate (91-day bills, annual average)
Difference
Actual
1982
1983
1982
1983
1983
3.0
5.2
-1.7
6.1
-4.7
0.9
7.2
6.6
8.9
11.7
5.5
5.1
7.9
10.5
4.4
4.5
9.6
10.7
4.1
2.9
9.5
8.6
-2.8
-2.1
0.7
-1.0
-1.4
-2.2
1.6
-1.9
The difference between economic assumptions and economic performance resulted in a net increase in outlays of $3.0 billion. The
following table shows the major effects of differences between the
initial economic forecast and the actual performance of the economy. Lower inflation reduced outlays for indexed programs by $4.6
billion. Higher unemployment increased outlays by $5.6 billion;
more than half of the increase was for unemployment benefits. The
net effect of lower interest rates and higher borrowing decreased
outlays by $4.1 billion. Receipts from sales and leases on the Outer
Continental Shelf were $6.0 billion lower than initially estimated
due primarily to changes in economic conditions in world oil markets.
PERSPECTIVES ON THE BUDGET
6-31
EFFECT OF DIFFERENCES BETWEEN ESTIMATED AND ACTUAL ECONOMIC CONDITIONS ON 1983
OUTLAYS
(In billions of dollars)
Price differences:
Cost Of living adjustments:
Social security
Federal retirement
Food and nutrition assistance
Other
Medical prices:
Medicare and medicaid
Difference
-2.3
-0.6
—0.3
-0.4
Subtotal, price differences
—4.6
-1.0
Unemployment rate differences:
Unemployment compensation
Other
3.0
U
Subtotal, unemployment rate differences
Interest differences:
Net interest:*
Interest rates
Differences in borrowing
Guaranteed student loans
Subtotal, interest differences
5J5
-10.3
6.7
-0.5
—4.1
Receipts from the Outer Continental Shelf and other adjustments
Total
6.1
3.0
*$50 million or less.
1
Includes effects of differences in borrowing for all reasons, including reasons other than economic assumptions.
Estimating differences and other changes increased 1983 outlays
by $16.6 billion. The largest estimating adjustment was for the
Commodity Credit Corporation, which spent $13.5 billion more
than originally estimated for the support of agricultural commodity prices. This increase was primarily a result of unexpectedly
high levels of farm crop production. Outlays for interest were
reduced $2.8 billion because more interest than estimated was received on loans made by the Commodity Credit Corporation. Outlays also increased as a result of the failure to achieve some of the
savings proposed for management initiatives.
COMPARISON OF RELATIVELY UNCONTROLLABLE
OUTLAYS AND OF RECEIPTS
The Congressional Budget Act requires that the budget contain
two comparisons between the initial budget estimates and the
actual amounts for the last completed fiscal year: a comparison of
the differences in relatively uncontrollable outlays by major program, and a comparison of the differences in receipts by major
source. These comparisons are made in the following two sections
420-000 0 - 84 - 21 : QL 3
6-32
THE BUDGET FOR FISCAL YEAR 1985
for the 1983 budget, which was submitted in February 1982 for the
fiscal year ending on September 30, 1983.
Comparison of relatively uncontrollable outlays.—Outlays in any
one year are considered to be relatively uncontrollable when the
program level is determined by existing statutes or by contracts or
other obligations. Outlays for these programs generally depend on
factors that are beyond administrative control under existing law
at the start of the fiscal year. For example, the definition of
beneficiaries eligible for programs like medicaid and social security
is established by law. Prior-year contracts and obligations are also
legally binding.
Relatively uncontrollable outlays are grouped into two major
categories: open-ended programs and fixed costs, for which outlays
are generally mandated by law; and payments from prior-year
contracts and obligations, for which outlays are required because of
previous action, such as entering into contracts. Budget estimates
of relatively uncontrollable outlays do not include the effects of
proposed legislation.
For a number of reasons, the amounts estimated in the budget
may differ from the actual outlays that are subsequently realized.
For example, legislation may change benefit rates or coverage; the
actual number of beneficiaries may differ from the number estimated; and economic conditions (such as interest rates) may differ
from what was assumed in making the estimates.
The following table shows the differences between actual outlays
for relatively uncontrollable programs in 1983 and the amounts
estimated in the 1983 budget. The list of programs is the same as
in table 20 (Controllability of Budget Outlays) in Part 9. Beginning
in this budget, the administrative costs of relatively uncontrollable
payments for individuals, which are controlled through limitations,
are classified as relatively controllable in table 20. However, for
the purpose of making a comparison to the original estimates in
the 1983 budget, this table uses the old classification.
Actual outlays for relatively uncontrollable programs in 1983
were $600.7 billion, which is $15.2 billion, or 2.6%, higher than the
estimates based on existing law in February 1982. Outlays for openended programs and fixed costs were $16.2 billion above the initial
estimate, and outlays from prior-year contracts and obligations
were $1.0 billion lower.
Payments for individuals, which are essentially income transfers,
were 76% of all open-ended programs and fixed costs in 1983.
Actual outlays for this grouping were $6.1 billion higher than
estimated. This increase was the net effect of legislative action,
differences between actual and assumed economic conditions, and
the number of beneficiaries.
6-33
PERSPECTIVES ON THE BUDGET
RELATIVELY UNCONTROLLABLE OUTLAYS FOR 1983
(In billions of dollars)
February 1982
estimate
(existing law)
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 compensation
... .
Medical care
.
Assistance to students
Actual
Change
175.6
48 7
16.6
32.1
22.7
76.0
5.1
3.0
21.1
2.8
174.1
47.3
15.9
31.4
31.5
75.8
4.4
3,3
21.7
2.9
-1.5
-1.4
0.6
0.7
8.8
0.2
-0.7
0.3
0.7
*
354.9
361.0
6.1
96.8
4.6
1.9
-2.2
89.8
4.6
18.9
-2.2
-7.0
*
Subtotal, other open-ended programs and fixed costs
101.0
111.0
10.0
Total open-ended programs and fixed costs
455.8
472.0
16.2
70.2
59.5
68.3
60.4
1.9
0.9
129.7
123.7
-1.0
585.5
600.7
15.2
Food and nutrition assistance
Public assistance and related programs
All other relatively uncontrollable payments for individuals
...
Subtotal, payments for individuals
....
Other open-ended programs and fixed costs:
Net interest
. ...
General revenue sharing.
.
Farm price supports (CCC)
Other open-ended programs and fixed costs
Outlays from prior-year contracts and obligations:
National defense
Civilian programs
Total, outlays from prior-year contracts
and obligations
Total, relatively uncontrollable outlays
.
.
17.0
*
* $50 million or (ess.
1
Beginning in this budget, the administrative costs of relatively uncontrollable payments for individuals, which are controlled through limitations,
are classified as relatively controllable. However, for the purpose of making a comparison to the original estimates in the 1983 budget, this table
uses the old classification.
Outlays for social security and railroad retirement, the largest
category of payments for individuals, were $1.5 billion lower than
estimated. The original estimate assumed automatic benefit increases (based on inflation as measured by the Consumer Price
Index) of 8.1% in July 1982 and 6.5% in July 1983. The actual
increase in July 1982 was 7.4%. As a result of the Social Security
Amendments of 1983 there was no automatic increase in 1983.
Instead, the adjustment was delayed from July 1983 to January
1984. The original estimate also assumed that 36.3 million people
would collect social security benefits in 1983. Instead the program
was making payments to 35.9 million individuals.
Outlays for Federal employees' retirement and disability insurance programs were $1.4 billion below the budget estimate. These
programs consist of military retired pay, civilian employee retirement and disability, and veterans service-connected compensation.
6-34
THE BUDGET FOR FISCAL YEAR 1985
Except for veterans service-connected compensation, these benefits
are indexed to the consumer price index. Outlays for the indexed
programs were below the initial estimate primarily due to lower
than expected inflation in 1983.
Outlays for unemployment compensation programs were $8.8 billion above the initial estimate. This increase was the result of a
higher than assumed rate of unemployment and enacted legislation. Higher unemployment raised outlays by $3.0 billion; enactment of the Federal Supplemental Compensation Act, changes in
unemployment compensation for ex-service members, and failure
to enact $0.1 billion in proposed savings raised outlays $5.8.
Outlays for medical care were $0.2 billion lower than estimated.
Medicare outlays were $0.2 billion below the initial estimate. Outlays for the medicaid program were $0.1 above the initial estimate.
Assistance to students consists of GI bill benefits and the guaranteed student loan program. Outlays for the guaranteed student
loan program were $0.8 billion below the estimate due to the net
effect of lower than expected interest rates and participation, and
higher than expected interest subsidies reflecting recent changes in
borrowing patterns. Use of GI benefits was $0.1 billion greater than
anticipated.
Food and nutrition assistance includes the child nutrition and
special milk programs. Outlays for these programs were $0.3 billion
higher than estimated because a greater number of meals were
served than initially anticipated.
Public assistance and related programs include public assistance
payments, supplemental security income, outlays for earned
income tax credits, and veterans non-service-connected pensions.
Outlays for these programs were $0.7 billion above the estimate.
The largest change occurred in public assistance payments.
Uncontrollable outlays for all other payments for individuals
were only slightly higher than estimated, due primarily to higher
than expected payments for black lung disabilities.
Open-ended programs and fixed costs other than payments for
individuals account for 66% of the difference between estimated
and actual relatively uncontrollable outlays. Outlays for net interest were $7.0 billion—or 7.2%—lower than the original estimate.
This decrease was due in part to lower interest rates than anticipated, which were offset, to some extent, by more Federal borrowing than expected. The budget estimate assumed an 11.1% interest
rate on 91-day Treasury bills for fiscal year 1983 whereas the
actual rate averaged 8.6%. Another portion of the decrease, $2.8
billion, was a result of more interest than estimated being received
on loans made by the Commodity Credit Corporation.
6-35
PERSPECTIVES ON THE BUDGET
Outlays for farm price supports (Commodity Credit Corporation)
were $17.0 billion above the initial estimate. This change was due
to policy changes as well as unanticipated increases in farm production.
Outlays for prior-year contracts and obligations for civilian and
national defense programs were $1.0 billion below the initial estimate. National defense outlays were $1.9 billion—or 2.7%—below
the estimate because of slower than anticipated spending. Outlays
for civilian programs were $0.9 billion, or 1.5%, above the initial
estimate. The largest decreases in civilian programs occurred for
Federal aid to highways and training and employment services.
Comparison of actual and estimated receipts.—Budget receipts in
1983 were $600.6 billion, which is $65.6 billion less than the February 1982 estimate of $666.1 billion.
Lower than anticipated incomes, oil prices, and interest rates
reduced 1983 receipts by $64.2 billion below the budget estimate.
Changes in collection patterns and effective tax rates reduced receipts by an additional $8.1 billion. These decreases were offset to a
very small extent by differences in tax law and administrative
actions from the changes proposed in the budget, which increased
1983 receipts by $6.7 billion. These legislative and administrative
differences consisted of modifications of the proposals reflected in
the 1983 budget and of changes that were not proposed at that
time.
COMPARISON OF ACTUAL 1983 BUDGET RECEIPTS WITH THE FEBRUARY 1982 ESTIMATES
(In billions of dollars)
February
1982
estimate
Individual income taxes
Corporation income taxes
Social insurance taxes and contributions
Excise taxes
Estate and gift taxes
Customs duties
Miscellaneous receipts
Total
304.5
65.3
222.5
41.7
5.9
9.4
16.8
666.1
Differences in
tax law
and
administrative
actions
from
1982
proposals
Different
economic
conditions
24.4
-17.2
-12.7
-7.8
-0.3
* -0.4
* -1.4
0.7
-1.2
3.2
4.0
6.7 - 6 4 . 2
Technical
factors
Net
change
Actual
8.1 - 1 5 . 6
-9.9 -28.2
-4.0 -13.5
-6.4
-2.6
0.4
0.1
-0.7
-0.3
0.2 - 1 . 2
288.9
37.0
209.0
35.3
6.1
8.7
15.6
-8.1
600.6
-65.6
*$50 million or less.
A variety of tax changes designed to eliminate abuses and
remove obsolete incentives, together with several improvements in
tax collection and enforcement, were proposed in the 1983 budget.
These proposals were estimated to increase 1983 receipts by $12.7
billion. Other proposals, which were estimated to increase 1983
6-36
THE BUDGET FOR FISCAL YEAR 1985
receipts by a net $0.1 billion, included modification of the railroad
retirement system; the extension of social security hospital insurance taxes to Federal employees; and increases in passport, visa,
and airport and airway user fees. Together, the February 1982
proposals were estimated to increase 1983 receipts by $12.8 billion.
Two major tax laws were enacted during 1982 that affected 1983
receipts. The first, the Tax Equity and Fiscal Responsibility Act of
1982 (TEFRA), included a number of provisions that were modifications of budget proposals. This Act increased 1983 receipts primarily by eliminating unintended benefits and obsolete incentives, providing mechanisms to increase taxpayer compliance and improve
collection techniques, and revising existing excise and employment
taxes. The second major tax law, the Highway Revenue Act of
1982, included a number of changes in highway-related taxes that
had not been proposed in the 1983 budget. The main revenue
provision of this Act affecting 1983 receipts increased the excise tax
on gasoline and diesel fuel to 9 cents a gallon effective April 1,
1983. These two Acts and several minor legislative and administrative changes increased 1983 receipts by $6.7 billion more than the
Administration had proposed.
Individual income taxes were $288.9 billion in 1983, $15.6 billion
less than the budget estimate of $304.5 billion. Lower than anticipated personal incomes reduced individual income taxes by $24.4
billion. This reduction was partially offset by different collection
patterns and effective tax rates than had been assumed, which
increased individual income tax receipts by $8.1 billion. Differences
in tax law from the changes proposed in February 1982 increased
individual income taxes by an additional $0.7 billion.
Corporation income taxes were $28.2 billion below the budget
estimate, in large part due to lower than anticipated corporate
profits and different collection patterns and effective tax rates,
which reduced receipts by $17.2 billion and $9.9 billion, respectively. Substitution of TEFRA for the tax code revisions and the improvements in collection and enforcement proposed in February
1982 reduced corporation income taxes by an additional $1.1 billion. The major provisions of TEFRA that affected 1983 corporation
income taxes included the acceleration of corporation income tax
payments, changes in the taxation of life insurance companies, and
modifications of leasing rules and the completed contract method
of accounting. Several minor legislative changes that were not
proposed in February 1982 accounted for the remaining $0.1 billion
decrease in corporation income tax receipts.
Social insurance taxes and contributions (which are composed of
employment taxes and contributions, unemployment insurance receipts, and other retirement contributions) were $13.5 billion less
than the February 1982 estimate of $222.5 billion. Lower than
PERSPECTIVES ON THE BUDGET
6-37
anticipated wages and salaries and self-emplojanent earnings reduced these receipts by $12.7 billion. This decline was partially
offset by congressional inaction on the proposed privatization of the
railroad retirement system and by the changes in the Federal
unemployment insurance tax rate and base provided in TEFRA,
which increased receipts by $1.7 billion and $1.5 billion, respectively.
Lower than estimated collections of the windfall profit tax, due
in large part to the unanticipated decline in oil prices, reduced
1983 excise taxes by $11.2 billion. This was partially offset by a $4.8
billion increase in other excise taxes. Substitution of the excise tax
increases provided in TEFRA and the Highway Revenue Act of
1982 for the changes proposed in February 1982 accounted for $4,0
billion of the rise in other excise tax receipts.
Estate and gift taxes were $0.1 billion above the February 1982
estimate, and customs duties were $0.7 billion lower. An overestimate of imports was in large part responsible for the decrease in
customs duties receipts.
A decrease in deposits of earnings by the Federal Reserve
System, primarily reflecting lower interest rates than anticipated,
accounted for most of the $1.2 billion decline in miscellaneous
receipts.
ALLOCATION OF WINDFALL PROFIT TAX RECEIPTS
Section 102 of the Crude Oil Windfall Profit Tax Act of 1980
requires that each year the President propose the allocation of net
receipts from the tax in his budget.
This act establishes a Windfall Profit Tax Account in the Treasury "for accounting purposes only/' After the Secretary of the
Treasury has determined the amount of net receipts from the tax,
they are to be allocated to the Windfall Profit Tax Account. Since
the Conference Report accompanying the act stated explicitly that
the net receipts from the tax "shall not be earmarked or invested
separately from general revenues . . .", the allocations referred to
in section 102 cannot be interpreted as earmarking funds for specific purposes.
The method for these allocations is prescribed by three formulas
in subsections b(l), b(2), and b(3) of section 102. The allocations for
1985 are compared in the following table with the amounts included in this budget for the functional categories referred to in the
formula.
6-38
THE BUDGET FOR FISCAL YEAR 1985
ALLOCATION OF WINDFALL PROFIT TAX, NET RECEIPTS, 1985
(In millions of dollars)
Section 102 Formula
Total net receipts
Allocation:
Low-income assistance
Energy and transportation programs
Income tax reductions
Total
1
1985 Budget
4,120
1,030
618
2,472
4,120
4,120
1
2
20,605
21,775
42,380
This amount is the total outlays for the other income security subfunction (609).
2
This amount is the total outlays for all programs in the energy function (270) and the ground transportation subfunction (401).
PART 7
THE BUDGET SYSTEM
AND CONCEPTS
7-1
THE BUDGET SYSTEM AND CONCEPTS
The budget system of the U.S. Government provides the framework within which decisions on resource allocation and program
management are made in relation to the requirements of the
Nation, availability of Federal resources, effective financial control,
and accountability for use of the resources.
THE BUDGET PROCESS
The budget process has three main phases: (1) executive formulation and transmittal; (2) congressional action; and (3) budget execution and control. Each of these is interrelated with the others.
Executive formulation and transmittal.—The budget sets forth
the President's financial plan and indicates his priorities for the
Federal Government. The President's transmittal of his budget to
the Congress early in each calendar year is the culmination of
many months of planning and analysis throughout the executive
branch.
Formulation of a budget begins not later than the spring of the
year before it is transmitted. The budget is formulated in the
context of a multi-year budget planning and tracking system that
extends coverage to the 4 years following the budget year and
integrates long-range planning into the executive budget process.
This multi-year budget planning system requires that broad fiscal
goals and agency spending and employment targets be established
beyond the budget year.
During the period when a budget is formulated in the executive
branch, there is a continual exchange of information, proposals,
evaluations, and policy decisions among the President, the Office of
Management and Budget (OMB) and other Executive Office units,
and the various Government agencies. The President also receives
projections of the economic outlook that are prepared jointly by the
Council of Economic Advisers, OMB, and the Treasury.
Following a review of these projections, the President establishes
general budget and fiscal policy guidelines. General policy directions and planning ceilings for both the fiscal year that will begin
about 15 months later and for the 4 years beyond are then given to
the agencies to govern the preparation of their budget requests.
The primary phase of the budget process involves the formulation and preparation of the President's budget for transmittal to
7-2
THE BUDGET SYSTEM AND CONCEPTS
7-3
the Congress. Throughout the fall and early winter, the executive
branch is involved in this phase of the process. Agency budget
requests are submitted to OMB, where they are reviewed in detail,
and recommendations are made. These recommendations may be
revised as a result of Presidential review. Fiscal policy issues,
which affect budget outlays and receipts, are reexamined. The
effect of budget decisions on receipts, budget authority, and outlays
in the years that follow are also considered and are explicitly taken
into account, consistent with the multi-year budget planning
system. Thus, the budget formulation process involves the simultaneous consideration of the resource needs of individual programs
and the total outlays and receipts that are appropriate in relation
to current and prospective economic conditions.
The Congressional Budget Act of 1974 requires that current services estimates be transmitted to provide the Congress with a basis
for reviewing the President's budget. These estimates are projections of budget authority and outlays required to continue Federal
programs and activities without policy changes from the fiscal year
in progress. These current services estimates and similar estimates
for receipts are included in the President's budget to facilitate
comparison with the budget estimates. *
Congressional action.—The Congress can act to approve, modify,
or disapprove the President's budget proposals. It can change funding levels, eliminate proposals, or add programs not requested by
the President. It also enacts legislation affecting taxes and other
sources of receipts.
In making appropriations, the Congress does not vote on the
level of outlays directly, but rather on budget authority. The Congress first enacts legislation that authorizes an agency to carry out
a particular program and, in some cases, includes limits on the
amount that can be appropriated for the program. Many programs
are authorized for a specified number of years or indefinitely; other
programs, such as most nuclear energy, space exploration, defense
procurement, foreign affairs, and some construction programs, require annual authorizing legislation.
Provision of budget authority is usually a separate, subsequent
action. Generally, budget authority becomes available each year
only as voted by the Congress in appropriation acts. However, in a
number of cases the Congress has voted permanent budget authority, under which funds become available annually without further
Congressional action. Many trust fund appropriations are permanent, as are a number of Federal fund appropriations, such as the
appropriation to pay interest on the public debt.
1
See Special Analysis A, "Current Services Estimates."
7-4
THE BUDGET FOR FISCAL YEAR 1985
Congressional review of the budget begins when the President
transmits his budget estimates to the Congress within 15 days after
the start of each new session in January, as required by law.
Occasionally, the transmittal date is modified by a joint resolution
of the Congress. Under the procedures established by the Congressional Budget Act of 1974, the Congress considers budget totals
before completing action on individual appropriations. The act requires each standing committee of the Congress to report on budget
estimates to the House and Senate Budget Committees by March
15. It also requires the Congressional Budget Office to submit a
fiscal policy report to the two budget committees. The Congress
adopts the first concurrent budget resolution as a guide in its
subsequent consideration of appropriations and revenue measures.
The first budget resolution, which is scheduled to be adopted by
May 15, sets targets for total receipts and for budget authority and
outlays, in total and by functional category. For the three years
prior to 1983, the Congress enacted omnibus reconciliation legislation that reduced budget authority and outlays or increased revenues in response to directives in the concurrent budget resolution.
Congress had not completed action on omnibus reconciliation legislation for fiscal year 1984 as of the end of the first session of the
98th Congress.
Congressional consideration of requests for appropriations and
for changes in revenue laws occurs first in the House of Representatives. The Appropriations Committee, through its subcommittees, studies the requests for appropriations and examines in detail
each agency's performance. The Ways and Means Committee reviews proposed revenue measures. Each committee then recommends the action to be taken by the House of Representatives.
When the appropriation and tax bills are approved by the House,
they are forwarded to the Senate, where a similar review process is
followed. In case of disagreement between the two Houses of the
Congress, a conference committee (consisting of Members of both
bodies) meets to resolve the differences. The report of the conference committee is returned to both Houses for approval. When the
measure is agreed to, first in the House and then in the Senate, it
is ready to be transmitted to the President as an enrolled bill, for
his approval or veto.
The Congressional Budget Act also calls for the Congress to
adopt a second concurrent budget resolution by September 15. In
1981, however, the second resolution simply endorsed the totals in
the first resolution. In 1982 and 1983, the first resolution provided
that its amounts would remain in effect if Congress did not pass a
second resolution. In both years, Congress did not pass a second
resolution. The September 15 target was originally set in anticipa-
THE BUDGET SYSTEM AND CONCEPTS
7-5
tion of the enactment of all regular appropriations bills by that
time.
After the second budget resolution is adopted, the Congressional
Budget Act provides that Congress may not consider any spending
or revenue legislation that would breach the totals specified in this
resolution. The Congress may, however, adopt a new budget resolution changing the levels previously set or waive the requirement
not to exceed the resolution totals.
If action on appropriations is not completed by the beginning of
the fiscal year, the Congress enacts a continuing resolution to
provide authority for the affected agencies to continue financing
operations up to a specified date or until their regular appropriations are enacted.
Budget execution and control.—Once approved, the President's
budget, as modified by the Congress, becomes the basis for the
financial plan for the operations of each agency during the fiscal
year. Under the law, most budget authority and other budgetary
resources are made available to the agencies of the executive
branch through an apportionment system. The Director of OMB
apportions (distributes) appropriations and other budgetary resources to each agency by time periods or by activities, to ensure
the effective use of available resources and to preclude the need for
additional appropriations.
Changes in laws or other factors may indicate the need for
additional appropriations during the year, and supplemental requests may have to be sent to the Congress. On the other hand,
reserves may be established under certain circumstances to provide
for contingencies or to effect savings made possible by changes in
requirements or greater efficiency of operations. Amounts may also
be withheld from obligation for policy or for other reasons. The
Impoundment Control Act of 1974 provides that the executive
branch, in regulating the rate of spending, must report to the
Congress any deferrals or proposed rescissions 2 of budget authority; that is, any effort through administrative action to postpone or
eliminate spending provided by law.
COVERAGE OF THE BUDGET TOTALS
Agencies and programs.—The budget totals cover agencies and
programs (including Government corporations) no matter how
funded, except for the following off-budget Federal entities:
Rural electrification and telephone revolving fund
Rural Telephone Bank
Board of Governors of the Federal Reserve System
2
See page 7-9 for definitions of these terms.
7-6
THE BUDGET FOR FISCAL YEAR 1985
SPR Petroleum Account
Federal Financing Bank
Postal Service fund
United States Railway Association 3
United States Synthetic Fuels Corporation4
The off-budget Federal entities listed above are discussed in Part
6 of this volume. Schedules and financial statements are presented
in Part III of the Budget Appendix. Except for the Federal Reserve
Board, these data are also presented in selected tables throughout
the budget documents.
The budget totals do not include transactions of privately owned,
Government-sponsored enterprises, such as the Federal land banks
and Federal home loan banks. However, these enterprises are discussed in Part 6 of this volume and Special Analyses E and F, and
financial statements are presented in Part V of the Budget Appendix.
Functional classification.5—The functional classification arrays
budgetary data according to the major purpose served by the unit
being classified. In accordance with the Congressional Budget Act
of 1974, the Congressional budget resolutions establish budget targets by these functional categories.
The following criteria are used in establishing and in assigning
activities to functional categories:
• A function must have a common end or ultimate purpose
addressed to an important national need. (The emphasis is on
what the Federal Government seeks to accomplish rather
than the means of accomplishment, what is purchased, or the
clientele or geographic area served.)
• A function must be of continuing national importance and the
amounts attributable must be significant.
• Each basic unit of classification (generally the appropriation
or fund account) is classified into the single best or predominant purpose and assigned to only one subfunction. However,
when an account is large and serves more than one major
purpose, it may be subdivided into two or more subfunctions.
• Activities and programs are normally classified by common
purpose (or function) regardless of which agencies conduct the
activities.
National needs presentation.Section 601 of the Congressional
Budget Act of 1974 requires that the budget for each fiscal year
3
Amounts made available for investments in Conrail securities, which comprise almost all of the Association's
activity after 1977, are included in the budget totals.
4
Cash requirements of the Corporation are met by borrowing from the Secretary of the Treasury. Such
borrowing is financed by appropriations to the Secretary, and thus is reflected as budget authority and outlays
within the budget totals.
5
A discussion of this subject is also found in Part 5 of this volume.
THE BUDGET SYSTEM AND CONCEPTS
7-7
shall contain a presentation of budget authority, proposed budget
authority, outlays, proposed outlays, and descriptive information in
terms of—
(1) a detailed structure of national needs, which shall be
used to reference all agency missions and programs;
(2) agency missions; and
(3) basic programs.
To meet that requirement of law, the functional classification
was refined to focus more sharply on end purposes and accomplishments. Each major function is described in the context of national
needs being served, and subfunctions are described in the context
of major missions devoted to serving national needs. A statement of
national needs to be met by each major function, except net interest, can be found in Part 5 ("Meeting National Needs: the Federal
Program by Function").
Types of funds. —Agency activities are financed through Federal
funds and trust funds.
Federal funds are of several types. The general fund is credited
with receipts not earmarked by law for a specific purpose and with
the proceeds of general borrowing. It is charged with payments
from appropriations. Special funds contain Federal receipts earmarked for specific purposes, other than for carrying out a cycle of
operations. Public enterprise (revolving) funds finance a cycle of
business-type operations in which outlays generate collections, primarily from the public. Intragovernmental funds, including revolving and management funds, finance operations within and between
Government agencies and are credited with collections primarily
from other Government accounts. Intragovernmental revolving
funds are credited with collections earmarked by law to carry out a
cycle of business-type operations within and between Government
agencies.
Trust funds are established to account for the receipt and expenditure of monies by the Government for carrying out specific
purposes and programs in accordance with the terms of a statute
or trust agreement. These monies are not available for the general
purposes of the Government. Trust revolving funds are credited
with trust-type collections earmarked by law to carry out a cycle of
business-type operations.
Current expense and capital investment—The budget includes
spending for both current operating expenses and capital investment, such as the purchase of lands, structures, and equipment. It
also includes capital investment in the form of lending and the
purchase of investments.6
6
These categories of outlays are discussed in Special Analysis D, "Investment, Operating, and Other Federal
Outlays."
7-8
THE BUDGET FOR FISCAL YEAR 1985
BUDGET AUTHORITY AND RELATED TRANSACTIONS
Budget authority.— Government agencies—whether or not they
are included in the budget totals—are permitted to enter into
obligations requiring either immediate or future payment of money
only when they have been granted authority to do so by law. This
authority is usually provided as budget authority. Collections specifically authorized to be credited to appropriation and fund accounts, while not scored as budget authority, are also available for
obligation. Budget authority, and in some cases the use of other
resources, usually requires the approval of both authorizing committees and Appropriations Committees. The availability or use of
budgetary resources may be further restrained by the imposition of
legally binding limitations on direct loans or other obligation levels.7
Budget authority permits obligations to be incurred. The
amounts of budget authority requested are determined by the
nature of the programs or projects being financed and the amount
of other resources available for the purpose.
For activities such as operations and maintenance, entitlement
programs, and continuing research programs, for which the cost
depends upon the program level planned for a fiscal year, the
amount of budget authority requested covers the obligations expected to be incurred during the year.
For most projects that are separate and distinct units, particularly direct Federal major procurement and construction projects,
"full funding" is requested. That is, budget authority is requested
in sufficient amounts at the time the project is initiated to complete it, regardless of the expected time of completion.
Budget authority usually takes the form of appropriations, which
permit obligations to be incurred and payments to be made. Some
budget authority is in the form of contract authority, which permits
obligations in advance of appropriations but requires a subsequent
appropriation or the collection of revenues to liquidate (pay) these
obligations. There is also authority to borrow; such budget authority permits obligations to be incurred and liquidated by using funds
that are borrowed, generally from the Treasury.
It is not in order for either House of the Congress to consider any
bill, with certain exceptions, that provides new borrowing or contract authority unless that bill also provides that such new spending authority will be effective only to the extent or in such
amounts as provided in appropriations acts.
Most appropriations for current operations are made available
for obligation only during a specified fiscal year (annual appropriations). Some are for a specified longer period (multiple-year appropriations). Others, including most of those for construction, some
7
See "Limitations on the Availability of Funds," Part 6.
THE BUDGET SYSTEM AND CONCEPTS
7-9
for research, and many for trust funds are made available for
obligation until the amount appropriated has been expended or
until the objectives have been attained (no-year appropriations).
Budget authority can be made available by the Congress for
obligation and disbursement during a fiscal year from a succeeding
year's appropriation (advance funding). For many education programs, Congress provides forward funding—budget authority made
available for obligation in one fiscal year for the financing of
ongoing grant programs during the succeeding fiscal year. When
advantageous to the Federal Government, an appropriation is provided by the Congress for use in a fiscal year, or more, beyond the
fiscal year for which the appropriation act is passed (advance appropriations). Accounts in which budget authority is made available on these bases are listed in Part IV of the Budget Appendix.
When budget authority is made available by the Congress for a
specific period of time, any part that is not obligated during that
period expires and cannot be used later. Congressional actions that
continue the availability of unobligated amounts that have expired
or would otherwise expire are known as reappropriations. The
amounts involved are counted as new budget authority in the fiscal
year of the legislation in which the reappropriation action is included, regardless of when the amounts were originally appropriated or when they would otherwise lapse.
A rescission is a legislative action that cancels new budget authority or the availability of unobligated balances, prior to the time
the authority would otherwise have expired. Rescissions are offset
against new budget authority becoming available in arriving at the
total of budget authority for each year. A deferral is an executive
branch action or inaction—including the establishment of reserves
under the Antideficiency Act—that delays the obligation and expenditure of funds within the year that the action is taken. Deferrals are not separately identified in the budget.
Most authority to obligate funds is enacted by the Congress
during or immediately preceding the fiscal year in which it becomes available (current authority). Most current authority is
granted year by year. Some budget authority in Federal funds and
most budget authority in trust funds becomes available as the
result of previously enacted legislation and does not require current action by the Congress (permanent authority). Such authority
is presented as "current" in the year in which the legislation is
enacted and "permanent" in succeeding years.
The amount of budget authority is usually stated specifically or
in an amount stated as "not to exceed" a specific aggregate sum in
the legislation that makes it available (definite authority). In some
cases the legislation permits the amount to be determined by subsequent circumstances (indefinite authority). Examples of the latter
420-000 0 - 84 - 22 : QL 3
7-10
THE BUDGET FOR FISCAL YEAR 1985
type are authority to borrow that is limited only to the amount of
debt that may be outstanding at any time, the appropriation for
interest on the public debt, and the trust fund appropriation equal
to receipts under the Federal Insurance Contributions Act (social
security). Indefinite budget authority is recorded in the amount of
receipts collected or estimated to be collected each year in the case
of many special and trust funds, and in the amount needed to
finance obligations incurred or estimated to be incurred in the case
of certain appropriations, contract authority, and authority to
borrow.
Obligations incurred.—Following the enactment of budget authority and the completion of required apportionment action, obligations are incurred by Government agencies. Such obligations
include the current liabilities for salaries, wages, and interest;
agreements to make loans; contracts for the purchase of supplies
and equipment, construction, and the acquisition of land; and other
arrangements requiring the payment of money.
Outlays.—Obligations generally are liquidated by the issuance of
checks or the disbursement of cash; such payments are called
outlays. In lieu of issuing checks, obligations may also be liquidated
(and outlays recorded) by the accrual of interest on Treasury debt
securities held by the public; or by the issuance of bonds, debentures, notes (or by increases in the redemption value of bonds or
debentures outstanding), or monetary credits. Payments for tax
credits in excess of tax liabilities are treated as outlays rather than
as an adjustment to budget receipts. Outlays during a fiscal year
may be for payment of obligations incurred in prior years or in the
same year. Outlays, therefore, flow in part from unexpended balances of prior year budget authority and in part from budget
authority provided for the year in which the money is spent.8 Total
budget outlays are stated net of offsetting collections and exclude
outlays of off-budget Federal entities.
Balances of authority.9—Not all budget authority enacted for a
fiscal year is obligated and paid out in the same year. In multipleyear or no-year accounts, budget authority that is still available for
obligation (unobligated balances) may be carried forward for obligation in the following year. The obligated balance is that portion of
the budget authority that has been obligated but not yet liquidated
(paid). For example, in the case of salaries and wages, 1 to 3 weeks
elapse between the time of obligation and the time of payment. In
the case of major procurement and construction, payment may
8
9
See "Relationship of Budget Authority to Outlays", Part 6.
These balances may also include collections credited directly to appropriation or fund accounts.
THE BUDGET SYSTEM AND CONCEPTS
7-11
occur over several years. Obligated balances of budget authority
are carried forward until the obligations are subsequently paid.10
Therefore, a change in the amount of budget authority for a
given year does not necessarily result in a similar change in either
the obligations incurred or the budget outlays of that same year. A
change in budget authority in any one year may have an effect on
obligations for 2 or more years, and may affect budget outlays for
an even longer period.
Allocations between agencies.—In some cases, an agency may
share in the administration of a program for which appropriations
are made to another agency or to the President. This is made
possible by the establishment of allocations from the "parent" account, that is, the account to which the appropriation was made.
Obligations incurred under such allocations are included with the
parent account in the Budget (without separate identification) and
in the Budget Appendix (where the total obligations of each participating agency are identified separately under the parent account).
THE CREDIT BUDGET »
The credit budget is a presentation of direct loan obligations and
guaranteed loan commitments that provides a framework for
making planning and policy decisions on the amount of Federal
credit to be extended. It also provides a means to analyze, evaluate,
and control Federal credit activity. Development of the credit
budget is integrated thoroughly with the executive budget process.
The credit budget totals and the limitations on credit activity
proposed for enactment in appropriations language are transmitted
to the Congress as part of the President's budget.
Concepts used in the credit budget—The credit budget totals are
presented in two parts: total direct loan obligations and total guaranteed loan commitments. These totals are based on the following
concepts:
• All direct loan and guaranteed loan activities of the Government are included. The credit budget makes no distinction
between on-budget and off-budget Federal entities.
• The credit budget totals measure gross levels of credit activity, without offsets for repayments and other recoveries,
except that existing loans that are extended on similar maturities are not treated as new loans. By excluding repayments
and other recoveries, the credit budget measures the current
10
Additional information on balances of budget authority is provided in a separate report, "Balances of
Budget Authority," which is available from the National Technical Information Service, Department of Commerce, shortly after the budget is transmitted.
11
The credit budget is shown by function in Part 5 and guaranteed loans are discussed in Part 6 of this
volume. Credit schedules and proposed credit limitations in appropriations language are included in the Budget
Appendix. Additional information is provided in Special Analysis F, "Federal Credit Programs."
7-12
THE BUDGET FOR FISCAL YEAR 1985
level of program activity and enables control to be based on a
measure over which the Government has discretion—new extensions of credit.
• The credit budget is based on the amount of obligations incurred for direct loans and the amount of commitments for
guaranteed loans. Obligations for direct loans result from
agreements requiring the Government to disburse a loan immediately or at some future time. Commitments for guaranteed loans are agreements entered into by the Government to
guarantee the repayment of outstanding principal and/or interest. Since guaranteed loan commitments, unlike direct loan
obligations, do not require obligational authority and do not
require disbursements, the amounts are not included in the
President's budget totals. They create Government liabilities
of a contingent nature that result in obligations and outlays
only in the event of a borrower default. Direct loan obligations and guaranteed loan commitments represent points at
which control can most directly be exercised.
• The amount of guaranteed loans presented in the budget is
calculated on the basis of the full principal amount of the
loan involved, even though the guarantee may extend to only
a portion of the loan principal. This is done in order to
represent the full amount of credit allocated to a particular
purpose through a federally assisted lending program.
Limits on Federal credit programs.Separate limitations on the
amount of new direct loan obligations and guaranteed loan commitments are proposed for enactment in the appropriations language for the accounts that support credit activities. These limitations, if enacted, place annual ceilings on credit programs that, in
most cases, are otherwise relatively unlimited.
Appropriation bill limitations are proposed for about two-thirds
of the credit budget totals. Exemptions are primarily for entitlements and emergency and disaster programs. These programs can
be controlled, however, through changes in authorizing legislation.
Since initiation of the credit budget, Congress has voted nonbinding targets in the concurrent budget resolutions for total direct
loan obligations and total guaranteed loan commitments. Actual
control of credit program levels, however, remains with authorizing
legislation and appropriations acts.
COLLECTIONS
In general.—Amounts collected by the Government are classified
into two major categories:
• Budget receipts, which are compared with budget outlays in
calculating the budget surplus or deficit.
THE BUDGET SYSTEM AND CONCEPTS
7-13
• Offsetting collections, which are deducted from gross disbursements in calculating budget outlays.
Budget receipts.—These are collections from the public that
result from the exercise of the Government's sovereign or governmental powers. These collections, also called governmental receipts,
consist primarily of tax receipts (including social insurance taxes),
but also include receipts from customs duties, 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 the public that are of a business-type or marketoriented nature. They are classified into two major categories: offsetting collections credited to appropriation or fund accounts and
offsetting receipts (that is, amounts deposited in receipt accounts).
The offset is applied differently for each type.
When specifically authorized by law, offsetting collections are
credited to appropriation or fund accounts. In general they are to
be used without further action by the Congress. Collections are
netted against obligations and outlays.
Offsetting receipts, generally, are deducted from budget authority
and outlays by 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. These collections 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). Prior to 1983, accounts for these receipts
had been established in a manner that identified receipts by
source (interest, rent, sale of property, etc.) and by collecting
agency. This resulted in great proliferation of offsetting receipts detail. In many cases the detail was not significant,
sometimes indicating collections of less than a thousand dollars per year. In 1983, more than 700 individual accounts
were consolidated into three Treasury Department accounts
established for this purpose. This simplified approach eliminated large numbers of relatively small offsetting receipts
entries in Part 8, "The Federal Program by Agency and Account", and in the netting of outlays by subfunction in Part 5,
"The Federal Program by Agency and Account".
Collections from rents and royalties from Outer Continental
Shelf (OCS) lands are deducted from total budget authority
7-14
THE BUDGET FOR FISCAL YEAR 1985
and outlays for the Government as a whole rather than from
any single agency or subfunction. When there is a legal dispute over the disposition of these collections, the disputed
amounts are placed in deposit fund accounts and are not
included in the receipts totals. Upon settlement of the dispute, the amounts held are added to other similar OCS receipts
and deducted in the same manner.
Intragovernmental transactions.—These are payments into receipt accounts from governmental appropriation or fund accounts. Intragovernmental transactions may be intrabudgetary (where the payment and receipt both occur within the
budgetary universe) or result from receipts from off-budget
Federal entities in those cases where the payment is made by
a Federal entity whose budget authority and outlays are excluded from the budget totals. Intragovernmental transactions are deducted from both the outlays and the budget
authority for the agency receiving the payment, with two
exceptions. Intragovernmental transactions that involve agencies' payments (including payments by off-budget Federal entities) as employers into employee retirement trust funds and
interest received by trust funds appear as special deduct lines
in computing total budget authority and outlays for the Government.
Intrabudgetary transactions are subdivided into three categories: (1) interfund transactions, where the payment is from
one fund group (either Federal funds or trust funds) to a
receipt account in the other fund group; (2) Federal intrafund
transactions, where the payment and receipt both occur
within the Federal fund group; and (3) trust intrafund transactions, where the payment and receipt both occur within the
trust fund group.
OTHER TRANSACTIONS
Borrowing and repayments.— Borrowing and debt repayments are
not treated as receipts or outlays. If they were, the budget could be
balanced simply by borrowing. This rule applies both to borrowing
in the form of public debt securities and to specialized borrowing in
the form of agency securities, including the sale of certificates
representing participation in a pool of loans. However, some sales
of participation certificates, which otherwise would be treated as
borrowing, are required by law to be treated as a sale of assets.
This results in the proceeds of such sales being credited to an
appropriation or fund account with a corresponding reduction in
outlays and in the requirement for new budget authority.
THE BUDGET SYSTEM AND CONCEPTS
7-15
Exercise of the monetary power.—Seigniorage is the profit from
coining money. It is the difference between the value of coins as
money and their cost of production. Seigniorage on coins arises
from the exercise of the Government's monetary powers and differs
from receipts coming from the public, since there is no corresponding payment by another party. Therefore, seigniorage is excluded
from receipts and treated as a means of financing a deficit or as a
supplementary amount to be applied to reduce debt or to increase
the cash in the Treasury in a year with a surplus. The increment
(profit) resulting from the sale of gold as a monetary asset is
treated like seigniorage, since the value of gold is determined by its
value as a monetary asset rather than as a commodity.
Liabilities in deposit fund accounts.—Certain accounts outside
the budget, known as deposit funds, are established to record
amounts held in suspense temporarily (for example, proceeds from
mineral leases on the Outer Continental Shelf to which title is in
dispute) or held by the Government as agent for others (for example, State and local income taxes withheld from Federal employees'
salaries and payroll deductions for the purchase of savings bonds
by civilian employees of the Government). To the extent that transactions are conducted with nongovernment entities, Treasury's
cash balances are affected, even though the transactions are not a
part of the budget. To the extent that deposit fund balances are not
invested, changes in the amounts are treated as a means of financing.
Exchange of cash.—The Government's deposits with the International Monetary Fund (IMF) are considered to be similar to cash
assets. Therefore, the movement of money between the IMF and the
Department of the Treasury is not considered in itself a receipt or an
outlay, borrowing or lending. In a similar manner, the holdings of
foreign currency by the Exchange Stabilization Fund are considered
to be cash assets. Changes in these holdings are outlays only to the
extent there is a realized loss on the exchange and offsetting
collections only to the extent there is a realized profit.
BASIS FOR BUDGET FIGURES
In general.—-Outlays usually are stated in terms of checks issued,
including cash paid in lieu of checks, net of offsetting collections
received. Should a financial instrument be developed to use as a
substitute for cash or checks, the monetary value of the instrument
is normally counted in the budget to prevent the use of cash
equivalent instruments that would otherwise avoid recording transactions as receipts or outlays. The accrual basis is used generally
for interest on the public debt held by private investors; however,
interest on the public debt held by trust and other Government
7-16
THE BUDGET FOR FISCAL YEAR 1985
accounts is stated on a cash basis. When investments in debt
securities are purchased at a premium (or sold at a discount), the
difference between the purchase (or sales) price and the redemption
value is treated as an obligation and an outlay in the year of the
transaction in the investing account.
Data for 1983.—The 1983 column of this budget generally presents the actual transactions and balances as recorded in agency
accounts and as summarized in the central financial reports prepared by the Department of the Treasury.
Data for 1984.— All of the regular appropriations acts for 1984
have been enacted, directly or indirectly. Funding for activities
covered by three appropriations bills (Agriculture, Rural Development, and related agencies; Treasury, Postal Service and General
Government; Foreign Assistance and related programs) was provided in a continuing resolution that is effective through September 30, 1984. Supplemental appropriations are proposed in the 1985
budget for various civilian agency pay raises, principally those that
were effective in January 1984, and for additional amounts requested to meet unforseen program requirements.
Where the word "enacted" is used with reference to 1984 as in
tables 1 and 9 of Part 9 of this volume, the amount generally
represents budget authority already voted by the Congress. For the
budget accounts covered by the final 1984 continuing resolution,
the amount is based on the full year effect of appropriations made
available. In the case of indefinite appropriations, the enacted
sums include the amounts likely to be required. Where the word
"estimate" is used, the amounts include enacted budget authority
and requested supplemental.
Data for 1985.—This budget includes complete estimates for
1985. Part I of the Budget Appendix generally includes the proposed appropriation language for the various items identified in
the budget. In some instances, estimates are included in the budget
schedules without appropriation language for 1984 and 1985. For
these, proposed legislation may be required or the estimated
amounts will be requested later when the requirements are known.
In certain tables of the budget, the items for later transmittal and
the related outlays are separately identified. Estimates of the total
requirements for 1985 include both the amounts formally requested
and the amounts planned for later transmittal.
Data for 1986 through 1989.—To place emphasis on longer term
objectives and plans consistent with the multi-year budget planning system, this budget presents estimates through 1989. These
data often reflect specific Presidential policy determinations and
are shown in a number of budget tables.
THE BUDGET SYSTEM AND CONCEPTS
7-17
Allowances.—Lump sum allowances are included in the tables to
cover expected additional changes, such as civilian pay increases.
The allowance for civilian pay increases includes an estimate of the
additional amounts that will be required for pay raises anticipated
in January 1985 for employees of civilian agencies of the Government. Separate allowances for pay raises are shown for civilian and
military personnel of the Department of Defense, Military, and are
included in the figures for the Department of Defense.
An allowance for relatively uncontrollable programs is shown
separately, as required by the Congressional Budget Act. The estimates for such programs are zero because the probability of net
decreases or net increases for such programs is believed to be
equal. Another allowance, entitled "Increased employing agency
payments for employee retirement," contains an estimate of the
cost to on-budget Federal agencies of increasing the employer share
of contributions to the civil service retirement trust fund. In previous years the budget did not record the estimated collections (both
budget receipts and offsetting collections) by Federal employee retirement trust funds that arise from pay raise allowances. These
estimated collections are now included in the budget totals.
Budget authority and outlays included in the allowance section
are never appropriated as undistributed allowances, but rather
indicate the estimated budget authority and outlays that may be
requested.
PART 8
THE FEDERAL PROGRAM
BY AGENCY AND ACCOUNT
8-1
EXPLANATORY NOTE
This tabulation contains information on budget authority (BA) and outlays (O) for each appropriation and fund
account. The budget authority in this tabulation takes account of certain transfers between appropriations. All
budget authority items are definite appropriations except
where otherwise indicated. Also, budget authority and
outlay data for off-budget Federal entities are presented at
the end of this table. Within the Federal Financing Bank
(FFB) presentation, there is a distribution of its budget
authority and outlays to the accounts in the various agencies that are provided credit services by the FFB.
Functional code numbers are shown for each account as
a cross reference to table 14, where the figures are summarized by functional classification. Types of funds in the
budget and the deduct entries at the end of each chapter
of this tabulation are explained in Part 7.
Congressional action in the appropriation process occasionally takes the form of a limitation on the use of a trust
fund or other fund, or of an appropriation to liquidate
contract authority. Amounts for such items, which do not
affect budget authority, are included here in parentheses
and identified in the stub column, but are not included in
the totals.
8-2
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
o
8—o
BUDGET ACCOUNTS LISTING (in thousands of dollars)
1984
estimate
1983
actual
Account and functional code
1985
estimate
Legislative Branch
Senate
Federal funds
Genera! and Special Funds:
Compensation of Members, Senate
801
Appropriation, permanent, indefinite
Outlays
Mileage of the Vice President and Senators
801
Appropriation, current
Outlays
Expense allowances of the Vice President, President
Pro Tempore, Majority and Minority Leaders and
Majority and Minority Whips
801
Appropriation, current
Outlays
Salaries, officers and employees
801
Appropriation, current
BA
0
8,431
7,072
8,793
8,793
8,553
8,553
BA
0
60
49
60
60
60
60
BA
0
50
32
50
50
50
50
BA
152,116
153,487
165,702
D
M24
6,172
0
Office of the Legislative Counsel of the Senate
Appropriation, current
159,659
M24
165,702
BA
Total Salaries, officers and employees
139,980
152,116
159,783
0
Outlays
139,980
159,783
165,702
165,702
801
Outlays
BA
1,202
1,403
1,044
1,280
°33
1,313
0
1,202
1,313
1,044
1,313
1,403
1,403
BA
0
520
457
545
545
574
574
BA
0
12
7
12
12
12
12
Total Office of the Legislative Counsel of the
Senate
BA
0
Office of Senate Legal Counsel
801
Appropriation, current
Outlays
Expense allowances of the Secretary of the Senate,
Sergeant at Arms, and Doorkeeper of the Senate
and secretaries for the majority and
801
Appropriation, current
Outlays
Joint Study Panel on Social Security Administration,
Senate
801
Appropriation, current
Outlays
Senate policy committees
801
Appropriation, current
BA
0
BA
1,403
165
165
1,712
1,712
1,822
MOO
D
80
Outlays
0
1,692
1,792
1,822
^ 100
Total Senate policy committees
See footnotes at end of table.
BA
1,712
1,892
0
1,692
1,892
1,822
1,822
8-4
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Legislative Branch—Con.
Senate—Con.
Automobiles and maintenance
Appropriation, current
Outlays
Inquiries and investigations
Appropriation, current
801
BA
0
90
80
801
BA
44,964
Outlays..
0
46,767
46,767
48,849
48,849
10,406
48,849
41,414
44,964
41,414
BA
38,140
0
35,694
9,174
*280
9,174
BA
0
38,140
35,694
9,454
9,454
10,406
10,406
597
7Z
597
A
78
720
BA
0
675
675
720
720
BA
32,869
A
342
32,869
^342
35,015
33,211
33,211
35,015
35,015
39
39
12
12
801
Outlays...
Total Miscellaneous items
Secretary of the Senate
Appropriation, current
48,849
BA
0
Total Inquiries and investigations
Miscellaneous items
Appropriation, current
45,698
1,069
46,767
D
10,406
801
BA
Outlays..
A
0
Total Secretary of the Senate
720
Sergeant at Arms and Doorkeeper of the Senate
801
Appropriation, current
Outlays
0
Total Sergeant at Arms and Doorkeeper of the
Senate
BA
0
Postage stamps
Appropriation, current
Outlays
Stationery (revolving fund)
Appropriation, current
Outlays
Congressional use of foreign currency, Senate
Appropriation, permanent
Outlays
801
BA
0
11
11
BA
0
131
38
BA
0
1,325
675
801
801
Public Enterprise Funds:
Senate restaurant fund (revolving fund)
Outlays
Recording studio (revolving fund)
Outlays
See footnotes at end of table.
35,015
801
-678
801
-124
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-5
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Legislative Branch—Con.
Senate—Con.
Senate barber shops (revolving fund)
Outlays
801
0
Total Federal funds Senate
- 4
BA
248,764
262,759
273,178
0
227,439
262,759
273,178
House of Representatives
Federal funds
General and Special Funds:
Payments to widows and heirs of deceased members
of Congress
801
Appropriation, current
Outlays
Compensation of Members and related administrative
expenses
801
Appropriation, permanent
Outlays
Mileage of Members
801
Appropriation, current
Outlays
House leadership offices
801
Appropriation, current
BA
0
BA
0
200
200
33,155
32,206
BA
35,955
34,520
2,627
BA
210
210
2,923
BA
0
Total House leadership offices
69
69
210
109
0
Outlays
Salaries, officers and employees
Appropriation, current
BA
0
36,225
36,211
210
210
3,005
M16
D
83
3,088
M16
3,227
2,923
2,627
3,204
3,204
3,227
3,227
43,713
44,639
46,705
3,227
801
M71
D
1,107
Outlays
0
Total Salaries, officers and employees
41,885
45,746
M71
46,705
Committee employees
Appropriation, current
BA
43,713
45,917
46,705
0
41,885
45,917
46,705
BA
34,409
37,532
801
0
31,372
34,734
1,444
36,069
BA
34,409
36,178
37,532
0
31,372
36,069
37,532
D
Outlays
Total Committee employees
See footnotes at end of table.
37,532
8-6
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
Legislative
1984
estimate
1985
estimate
Branch—Con.
House of Representatives—Con.
Committee on Appropriations (Studies and Investigations)
801
Appropriation, current
BA
3,750
3,700
4,300
^300
D
75
Outlays
0
Total Committee on Appropriations (Studies and
Investigations)
3,659
3,775
A
4,128
300
Committee on the Budget (Studies)
Appropriation, current
Outlays
Members' clerk hire
Appropriation, current
BA
3,750
4,075
4,300
0
3,659
4,075
4,128
BA
0
276
240
299
298
329
316
BA
151,419
150,233
160,643
801
801
Outlays
* 5,560
D
4,634
154,741
* 5,560
0
BA
Allowances and expenses
Appropriation, current
151,419
160,427
160,643
0
Total Members' clerk hire
154,017
160,643
154,017
160,301
160,643
103,242
18,760
102,402
122,584
801
BA
90,471
A
Outlays
0
Total Allowances and expenses
92,610
A
121,426
18,760
Stationery (revolving fund)
Outlays
Special and select committees
Appropriation, current
BA
90,471
122,002
122,584
0
92,610
121,162
121,426
0
-306
-309
-309
BA
40,500
44,000
45,400
801
801
Outlays
D
1,400
40,000
45,400
43,584
BA
40,500
45,400
45,400
0
Total Special and select committees
0
40,000
45,400
43,584
1,500
1,431
1,800
1,800
1,800
1,800
0
-324
-324
-324
0
123
123
123
Congressional use of foreign currency, House of Representatives
801
Appropriation, permanent
BA
Outlays
0
Public Enterprise Funds:
House of Representatives restaurant fund (revolving
fund)
801
Outlays
Recording studio (revolving fund)
801
Outlays ,
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-7
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
Legislative
1984
estimate
1985
estimate
Branch—Con.
House of Representatives—Con.
Beauty shop (revolving fund)
801
Outlays
House barber shops (revolving fund)
801
Outlays
Office of the attending physician (revolving fund)
801
Outlays
Page residence hall and meal plan
801
Outlays
Total Federal funds House of Representatives
0
-43
-43
-43
0
54
54
54
0
- 1
- 1
- 1
455,536
452,525
458,955
455,282
0
-59
BA
0
402,526
399,800
BA
2,387
0
Joint Items
Federal funds
General and Special Funds:
Joint Economic Committee
Appropriation, current
801
Joint Committee on Printing
Appropriation, current
2,117
2,387
2,117
2,512
2,512
2,569
2,569
BA
Total Joint Economic Committee
2,569
BA
0
Outlays
2,437
D
75
2,512
855
918
918
918
2,569
801
0
876
876
6
6
6
6
6
BA
Statements of appropriations, Senate
Appropriation, current
Outlays
Joint Committee on Taxation
Appropriation, current
855
806
BA
0
3,377
3,395
3,622
0
BA
0
Total Joint Committee on Printing
806
BA
0
Outlays
855
2\
876
2,980
3,377
2,980
3,465
3,472
3,465
D
918
801
801
D
n
Outlays
Total Joint Committee on Taxation
Office of the Attending Physician
Appropriation, current
Outlays
General expenses, Capitol police
Appropriation, current
Outlays
Capitol Police Board
Appropriation, current
Outlays
Education of pages
Appropriation, current
Outlays
801
BA
0
420-000
O -
84 -
23
:
652
679
653
652
956
769
BA
0
945
1,014
1,612
1,586
1,645
1,579
BA
0
370
213
213
228
219
BA
0
293
267
295
295
801
801
801
S e footnotes at end of table.
e
3,477
3,622
3,477
QL
3
8-8
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Legislative Branch—Con.
Joint Items—Con.
Official mail costs
801
Appropriation, current
Outlays
Capitol Guide Service
Appropriation, current
BA
0
200,238
86,484
73,944
73,944
73,944
73,944
BA
765
775
810
0
724
794
810
BA
765
794
810
0
724
794
810
801
Outlays
Total Capitol Guide Service
Statements of appropriations, House of Representatives
801
Appropriation, current
Outlays
6
7
7
7
7
BA
Total Federal funds Joint Items
BA
0
209,524
84,384
84,705
0
95,441
84,350
84,298
BA
15,094
17,650
Congressional Budget Office
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
801
0
15,094
16,829
17,650
0
Total Salaries and expenses
13,897
BA
Outlays
16,300
D
529
16,431
13,897
16,431
17,516
5,287
17,516
Architect of the Capitol
Federal funds
General and Special Funds:
Office of the Architect of the Capitol: Salaries
Appropriation, current
801
BA
4,518
4,806
C
25
0
4,402
4,902
5,237
BA
4,518
4,930
5,287
0
4,402
4,902
5,237
210
235
D99
Outlays
Total Office of the Architect of the Capitol
Contingent expenses
Appropriation, current
801
BA
210
M50
Outlays
264
426
235
^50
Total Contingent expenses
0
M00
See footnotes at end of table.
BA
210
360
235
0
264
476
335
8-9
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Legislative Branch—Con.
Architect of the Capitol—Con.
Capitol buildings
Appropriation, current
801
BA
Outlays..
8,948
Total Capitol buildings
Capitol grounds
Appropriation, current
10,098
10,630
2,850
C
124
D
34
12,303
A
1,000
A
10,098
8,948
13,638
13,303
12,156
13,856
BA
4,961
3,199
2,851
801
Outlays..
Total Senate office buildings
BA
0
4,675
3,386
4,961
2,978
3,455
4,875
2,851
3,386
49,000
10
12,663
13,910
300
1
199
100
6
4,500 .
24
21,038
173
A
17,412
11,500
C
337
21,012
A
22,722
1,000
20,816
* 7,500
BA
0
210
16,518
BA
0
21,248
16,518
29,249
23,722
21,012
28,316
6,283
9,400
1,000
Construction of an extension to the New Senate Office
Building
801
Outlays
0
Senate garage
801
Outlays
0
See footnotes at end of table.
52
2,978
West central front of the Capitol
801
Appropriation, current
BA
Outlays
0
Congressional cemetery
801
Appropriation, current
BA
Outlays
0
Master plan for future development of the Capitol
grounds and related areas
801
Outlays
0
Acquisition of property as an addition to the Capitol
grounds
801
Appropriation, current
BA
Outlays
0
Senate office buildings
801
Appropriation, current
BA
Reappropriation
Outlays
12,006
1,850
A
BA
0
C
Total Capitol grounds
12,156
2 .
8-10
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Legislative Branch—Con.
Architect of the Capitol—Con.
House office buildings
Appropriation, current
801
Outlays
Total House office buildings
BA
20,842
0
19,054
BA
0
20,842
19,054
Acquisition of property, construction, and equipment,
additional House Office Building
801
Outlays
0
Installation of solar collectors in House office buildings
801
Outlays
0
Capitol Power Plant
801
Appropriation, current
BA
Outlays
Total Capitol Power Plant
Expansion of facilities, Capitol Power Plant
801
Outlays
Modifications and enlargement, Capitol Power
Plant
801
Outlays
Alterations and improvements, buildings and grounds,
to provide facilities for the physically handicapped
801
Outlays
Structural and mechanical care, Library buildings and
grounds
801
Appropriation, current
Outlays...
21,884
24,594
23,162
22,344
22,292
^52
79
849
180
0
22,432
BA
0
23,150
22,432
23,621
24,689
23,150
0
24,672
24,672
24,842
24,842
97
0
1,952
1,270
0
105
731
BA
5,151
O
6,401
Library of Congress James Madison Memorial Building
801
Outlays
0
See footnotes at end of table.
23,162
23,542
C
79
24,689
Total Structural and mechanical care, Library
buildings and grounds
BA
0
Total Federal funds Architect of the Capitol
21,361
M52
C
371
24,494
MOO
BA
0
5,151
6,401
349
143,978
90,572
A
600
5,980
111,500
c
90
6,039
7,457
*500
6,839
* 28,195
117,570
7,957
6,039
35,034
353
214,707
129,669
95,414
148,960
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-11
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Legislative Branch—Con.
Library of Congress
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
503
BA
0
BA
Total Salaries and expenses
Copyright Office: Salaries and expenses
Appropriation, current
122,823
BA
0
Outlays
124,240
126,428
11,500
C
149
^3154
127^575
A
1,120
134,678
124,240
122,823
141,231
128,695
134,678
137,713
10,657
11,133
11,089
A
133,644
* 4,069
376
0
10,329
10,981
D
469
11,324
BA
0
10,657
10,329
11,450
11,324
11,133
11,089
Congressional Research Service: Salaries and expenses
801
Appropriation, current
BA
35,240
41,066
Outlays
Total Copyright Office
0
34,154
36,620
1,442
37,618
BA
0
35,240
34,154
38,062
37,618
41,066
40,736
Books for the blind and physically handicapped: Salaries and expenses
503
Appropriation, current
BA
33,384
36,594
26,116
35,099
C
7
D
124
39,155
Total Books for the blind and physically handicapped
BA
0
33,384
26,116
35,230
39,155
36,594
35,230
Collection and distribution of library materials (special
foreign currency program)
503
Appropriation, current
BA
4,438
Outlays
Total Congressional Research Service
Outlays
0
Outlays
0
Total Collection and distribution of library materials (special foreign currency program).... BA
0
Furniture and furnishings
Appropriation, current
Outlays
See footnotes at end of table.
D
40,736
35,230
3,618
3,578
2,962
D
13
4,187
4,438
3,578
2,975
4,187
3,618
3,948
1,226
1,681
1,524
1,538
1,874
1,792
3,948
503
BA
0
8-12
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Legislative Branch—Con.
Library of Congress—Con.
Payments to copyright owners
Appropriation, permanent, indefinite
Outlays
Oliver Wendell Holmes devise fund
Appropriation, permanent, indefinite
Outlays
Trust funds
Gift and trust fund accounts
Appropriation, permanent, indefinite
Outlays
Total Federal funds Library of Congress
376
BA
0
53,908
45,771
50,000
90,800
52,000
50,505
BA
0
2
BA
0
BA
0
8,334
7,684
263,093
244,454
7,160
7,876
280,483
313,317
7,441
7,800
280,971
281,023
BA
0
8,334
7,684
7,160
7,876
7,441
7,800
BA
0
12,791
12,146
13,420
11,194
13,269
12,244
BA
0
81,747
56,038
86,580
61,677
80,879
69,819
BA
27,291
29,747
0
20,920
25,700
D
126
26,483
BA
0
27,291
20,920
25,826
26,483
29,747
27,536
-1,169
5,677
7,046
121,829
87,935
125,826
105,031
123,895
116,645
BA
252,665
328,779
0
251,140
267,161
D
5,649
271,162
BA
0
252,665
251,140
272,810
271,162
328,779
326,795
503
11
8
10
503
Total Trust funds Library of Congress
Government Printing Office
Federal funds
General and Special Funds:
Printing and binding
801
Appropriation, current
Outlays
Congressional printing and binding
801
Appropriation, current
Outlays
Office of Superintendent of Documents: Salaries and
expenses
806
Appropriation, current
Outlays
Total Office of Superintendent of Documents
27,536
Intragovernmental Funds:
Government Printing Office revolving fund
Outlays
806
0
Total Federal funds Government Printing Office... BA
0
General Accounting Office
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
Total Salaries and expenses
See footnotes at end of table.
801
326,795
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-13
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Legislative Branch—Con.
United States Tax Court
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
752
BA
B
A
0
Outlays
14,517
12,779
15,165
22,344
MOO
D
400
15,503
22,292
MOO
B
A
Total Salaries and expenses..
14,517
12,779
15,965
15,903
22,344
22,292
B
A
BA
19
9
21
4
6
8
21
4
Commission on Security and Cooperation in Europe:
Salaries and expenses
801
Appropriation, current
BA
Outlays
0
Botanic Garden: Salaries and expenses
801
Appropriation, current
BA
550
550
597
550
0
Trust funds
Tax Court judges survivors annuity fund
Appropriation, permanent, indefinite
Outlays
602
0
5
9
4
2
Other Legislative Branch Agencies
Federal funds
General and Special Funds:
519
645
1,897
Outlays
Total Botanic Garden.
2,018
c
40
2,348
2,044
2,080
1,897
2,080
2,058
2,348
2,030
2,044
2,030
469
387
210
200
217
216
0
BA
0
Copyright Royalty Tribunal: Salaries and expenses
376
Appropriation, current
BA
Outlays
0
Railroad Accounting Principles Board: Salaries and
expenses
801
Appropriation, current
BA
Outlays
0
Temporary Commission on Financial Oversight of the
District of Columbia: Salaries and expenses
801
Outlays
0
Office of Technology Assessment: Salaries and expenses
801
Appropriation, current
BA
Outlays
Total Office of Technology Assessment
See footnotes at end of table.
50
50
13,084
0
12,880
14,653
"19Q
14,663
BA
0
13,084
12,880
14,843
14,663
16,000
16,000
15,990
15,990
8-14
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
Legislative
1984
estimate
1985
estimate
Branch—Con.
Other Legislative Branch Agencies—Con.
Trust funds
Office of Technology Assessment: Contributions and
donations
801
Appropriation, permanent, indefinite
Outlays
BA
0
3
1
2
3
3
2
Total Federal funds Other legislative Branch
Agencies
BA
0
17,711
17,860
18,811
18,881
BA
3
2
3
0
Total Trust funds Other Legislative Branch Agencies
16,000
15,870
1
2
3
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
BA
0
1,687,990
1,439,327
1,747,010
1,669,007
1,704,702
1,744,870
—7oo
—722
—742
803 BA
n
908
Deductions for offsetting receipts:
Proprietary receipts from the public
-3,911
BA
Trust funds:
(As shown in detail above)
-3,454
1,683,748
1,742,377
1,699,852
0
Total Federal funds
JA
1,435,085
1,664,374
1,740,020
8,536
7,744
7,403
7,946
7,685
7,845
BA
0
503 BA
-4,108
1C
Ano
«
Total Legislative Branch
See footnotes at end of table.
—O,4UJ
f
-322
-125
-125
BA
2,999
2,162
2,207
2,705
2,317
BA
1,686,747
1,744,539
1,702,009
0
Total Trust funds
—J,1 ID
0
908
—0,2ID
1,437,292
1,667,079
1,742,337
2,157
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-15
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
The Judiciary
Supreme Court of the United States
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
752
BA
0
13,982
12,899
14,143
14,143
2,000
0
Care of the building and grounds
Appropriation, current
12,675
11,584
BA
2,240
BA
0
Total Salaries and expenses
14,143
11,584
13,635
D
347
12,899
BA
0
Outlays
12,675
2,000
2,240
14,143
752
Outlays
Total Care of the building and grounds
Acquisition of property as an addition to the grounds
of the Supreme Court building
752
Outlays
0
Total Federal funds Supreme Court of the United
States
BA
0
25
1,971
^600
C
23
2,466
*200
2,594
2,666
2,242
2,115
MOO
2,242
2,515
6
14,675
13,849
16,576
15,571
16,385
16,658
BA
4,406
6,414
0
3,938
4,680
D
137
4,727
BA
0
4,406
3,938
4,817
4,727
6,414
6,237
0
1,518
United States Court of Appeals for the
Federal Circuit
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
752
Outlays
Total Salaries and expenses
Court of Customs and Patent Appeals
Federal funds
General and Special Funds:
Salaries and expenses
Outlays
See footnotes at end of table.
752
-1,435
6,237
8-16
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
The Judiciary—Con.
United States Court of International Trade
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
752
BA
0
BA
0
Outlays
Total Salaries and expenses
5,501
5,143
5,675
°151
5,769
6,096
6,085
5,501
5,143
5,826
5,769
6,096
6,085
Court of Claims
Federal funds
General and Special Funds:
Salaries and expenses
Outlays
752
0
297
69
Courts of Appeals, District Courts, and
other Judicial Services
Federal funds
General and Special Funds:
Salaries of judges
Appropriation, current
752
BA
0
BA
0
BA
Outlays
Total Salaries of judges
Salaries of supporting personnel
Appropriation, current
68,410
74,200
67,928
69,500
3,370
72,870
68,410
67,928
72,870
72,870
74,200
74,200
309,250
382,460
D
74,200
752
0
303,053
330,000
11,960
340,976
BA
0
309,250
303,053
341,960
340,976
382,460
379,614
BA
34,215
43,715
0
38,656
37,000
M,750
D
465
29,982
* 3,280
41,366
M,470
BA
0
34,215
38,656
42,215
33,262
43,715
42,836
40,500
41,425
43,500
43,168
43,500
44,472
S3,000
61,696
75,350
73,002
108,270
102,674
D
Outlays
Total Salaries of supporting personnel
Defender services
Appropriation, current
Outlays
Total Defender services
752
Fees of jurors and commissioners
752
Appropriation, current
BA
Outlays
.'
0
Expenses of Operation and Maintenance of the
Courts
752
Appropriation, current
BA
Outlays
0
See footnotes at end of table.
379,614
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-17
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
The Judiciary—Con.
Courts of Appeals, District Courts, and
other Judicial Services—Con.
Salaries and expenses of magistrates
Outlays
Bankruptcy courts, salaries and expenses
Appropriation, current
752
0
- 1
BA
95,600
0
Outlays
91,090
Total Bankruptcy courts, salaries and expenses... BA
0
Services for drug dependent offenders
Appropriation, current
Outlays
Space and facilities
Appropriation, current
Outlays
Furniture and furnishings
Outlays
Court security
Appropriation, current
Outlays
Special rail reorganization court
Outlays
-20
752
95,600
91,090
100,895
* 3,545
D
3,400
102,102
* 1,333
119,960
107,840
103,435
119,960
119,147
5,000
4,699
897
142,624
145,580
158,250
156,468
116,935
^ 2,212
752
BA
0
4,000
3,122
752
BA
0
127,412
119,839
752
0
134
250
202
752
BA
0
12,000
1,466
18,690
29,050
25,280
25,280
752
0
Total Federal funds Courts of Appeals, District
Courts, and other Judicial Services
BA
0
221
291
274
754,387
728,629
850,049
846,563
955,635
946,064
24,066
29,360
Administrative Office of the United States
Courts
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
752
BA
0
Total Salaries and expenses
22,853
BA
0
Outlays
26,075
D
553
26,867
24,066
22,853
26,628
26,867
29,360
29,084
BA
7,684
9,631
0
7,032
8,445
D
120
8,384
BA
0
7,684
7,032
8,565
8,384
9,631
9,414
29,084
Federal Judicial Center
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
Total Salaries and expenses
See footnotes at end of table.
752
9,414
8-18
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
The Judiciary—Con.
Bicentennial Expenses, The Judiciary
Federal funds
General and Special Funds:
Bicentennial activities
Outlays
806
0
159
20
12,364
3,818
13,291
4,047
Judiciary Trust Funds
Trust funds
Judicial survivors' annuities fund
Appropriation, permanent, indefinite
Outlays
602
BA
0
Summary
Federal funds:
(As shown in detail above)
BA
0
Trust funds:
(As shown in detail above)
BA
0
Total The Judiciary
BA
0
11,800
3,613
810,719
783,259
11,800
3,613
822,519
786,872
912,461
906,674
12,364
3,818
1,023,521
1,013,562
13,291
4,047
924,825
910,492
1,036,812
1,017,609
Executive Office of the President
Compensation of the President
Federal funds
General and Special Funds:
Compensation of the President
Appropriation, current
Outlays
802
BA
0
250
244
250
250
250
250
BA
21,865
24,985
0
20,522
22,830
D
596
23,395
BA
0
21,865
20,522
23,426
23,395
24,985
25,016
The White House Office
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
Total Salaries and expenses
See footnotes at end of table.
802
25,016
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-19
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Executive Office of the President—Con.
Executive Residence at the White House
Federal funds
General and Special Funds:
Operating expenses
Appropriation, current
802
BA
4,601
3,619
4,550
C
37
D
45
4,472
0
BA
0
3,949
3,619
4,632
4,472
4,601
4,671
BA
0
416
281
262
474
219
253
BA
1,475
1,663
0
1,437
1,593
D
13
1,569
BA
0
1,475
1,437
1,606
1,569
1,663
1,613
BA
2,177
2,560
0
2,048
2,464
D
29
2,467
BA
0
2,177
2,048
2,493
2,467
2,560
2,557
Council on Environmental Quality and Office of Environmental Quality
802
Appropriation, current
BA
Outlays
0
926
827
1,300
2,184
700
940
Outlays
Total Operating expenses
3,949
4,671
Official Residence of the Vice President
Federal funds
General and Special Funds:
Operating expenses
Appropriation, current
Outlays
802
Special Assistance to the President
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
802
Outlays
Total Salaries and expenses
1,613
Council of Economic Advisers
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
802
Outlays
Total Salaries and expenses
2,557
Council on Environmental Quality and Office
of Environmental Quality
Federal funds
General and Special Funds:
See footnotes at end of table.
8-20
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Executive Office of the President—Con.
Council on Wage and Price Stability
Federal funds
General and Special Funds:
Salaries and expenses
Outlays
802
0
38
Office of Policy Development
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
802
BA
0
2,712
2,417
2,904
3,133
3,020
3,062
BA
4,064
3,852
4,497
D
55
4,475
4,605
0
BA
0
4,064
3,852
4,552
4,475
4,605
4,605
BA
13,108
12,036
14,295
°162
14,023
16,172
0
15,691
BA
0
Total Salaries and expenses
3,020
2,417
2,861
D
43
3,133
BA
0
Outlays
2,712
13,108
12,036
14,457
14,023
16,172
15,691
BA
34,987
40,005
0
32,531
37,000
"806
38,512
39,755
BA
0
34,987
32,531
37,806
38,512
40,005
39,755
3,062
National Security Council
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
802
Outlays
Total Salaries and expenses
4,605
Office of Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
802
Outlays
Total Salaries and expenses
Office of Management and Budget
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
Total Salaries and expenses
See footnotes at end of table.
802
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-21
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Executive Office of the President—Con.
Office of Management and Budget—Con.
Office of Federal Procurement Policy: Salaries and
expenses
802
Appropriation, current
BA
Outlays
0
Total Federal funds Office of Management and
Budget
BA
0
2,495
2,297
2,556
2,576
1,615
1,625
37,482
34,828
40,362
41,088
41,620
41,380
Office of Science and Technology Policy
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
802
BA
0
BA
0
Outlays
Total Salaries and expenses
1,863
2,194
1,676
1,950
D
38
1,988
1,863
1,676
1,988
1,988
2,194
2,194
2,194
Office of the United States Trade
Representative
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
802
BA
10,639
11,371
K
Outlays
0
BA
0
Total Salaries and expenses
10,147
10,639
10,147
13,775
*77
12,010
11,685
14,179
13,852
Property Review Board
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
802
BA
0
•
.
445
216
415
500
0
- 2
83
Special Action Office for Drug Abuse
Prevention
Federal funds
General and Special Funds:
Miscellaneous expired accounts
Outlays
See footnotes at end of table.
14,179
^511
D
128
11,251
M34
554
8-22
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Executive Office of the President—Con.
Summary
Federal funds:
Total Executive Office of the President
BA
0
101,371
94,186
110,657
111,786
116,768
116,084
154,400
203,000
184,000
Funds Appropriated to the President
Appalachian Regional Development Programs
Federal funds
General and Special Funds:
Appalachian regional development programs
Appropriation, current
Outlays
452
BA
0
165,133
263,451
Public Enterprise Funds:
Appalachian housing fund
Outlays
452
0
Total Federal funds Appalachian Regional Development Programs
BA
0
654
165,133
264,105
-2 .
154,400
202,998
184,000
Disaster Relief
Federal funds
General and Special Funds:
Disaster relief
Appropriation, current
453
BA
0
Trust funds
Bequests and gifts
Appropriation, permanent, indefinite
Outlays
220,047
130,000
201,905
220,047
* 100,000
200,000
100,000
200,000
BA
0
62
40
300
10
500
BA
0
Total Disaster relief
201,905
BA
0
Outlays
130,000
1,000
284
1,000
1,000
1,000
1,000
453
Unanticipated Needs
Federal funds
General and Special Funds:
Unanticipated needs
Appropriation, current
Outlays
802
Expenses of Management Improvement
Federal funds
General and Special Funds:
Expenses of management improvement
Outlays
See footnotes at end of table.
802
0
4
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-23
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Funds Appropriated to the President—Con.
International Security Assistance
Federal funds
General and Special Funds:
Foreign military sales credit
Appropriation, current
152
BA
1,616,300
* 5,115,000
2,976,250
1,175,000
609,029
1,315,000
1,616,300
5,115,000
2,976,250
BA
2,967,250
2,893,250
BA
0
122,124
2,676,419
64,363
2,900,000
3,050,000
BA
0
3,089,374
2,676,419
2,957,613
2,900,000
3,067,500
3,050,000
BA
383,325
510,000
0
401,538
534,472
"800,000
718,228
BA
0
Economic support fund
Appropriation, current
609,029
BA
0
Total Foreign military sales credit
1,315,000
0
Outlays..
1,175,000
383,325
401,538
510,000
534,472
800,000
718,228
152
* 3,067,500
Reappropriation
Outlays
Total Economic support fund
Military assistance
Appropriation, current
152
Outlays
Total Military assistance
Assistance to Central America
Appropriation, current
Outlays
International military education and training
Appropriation, current
152
J
BA
0
500,000
J
J
152
BA
750,000
800,000
300,000
46,000
0
41,720
51,532
Outlays..
J
Total International military education and training
BA
0
* 60,910
58,800
54,305
51,532
54,305
BA
31,100
56,200
BA
0
1,040
44,717
56,000
49,000
BA
0
Peacekeeping operations
Appropriation, current
46,000
41,720
32,140
44,717
56,200
56,000
49,000
49,000
16
1
27
6
118,708
179,000
60,910
58,800
152
"49,000
Reappropriation
Outlays
Total Peacekeeping operations
Assistance for relocation of facilities in Israel
Outlays
152
0
Public Enterprise funds:
Guarantee reserve fund
Appropriation, current, indefinite
Outlays
152
BA
0
S e footnotes at end of table.
e
420-000
O -
84
-
24
:
QL
3
274,000
235,000
8-24
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Funds Appropriated to the President—Con.
International Security Assistance—Con.
Summary
Federal funds:
(As shown in detail above)
BA
0
4,725,839
3,892,015
5,390,345
5,640,344
10,116,410
7,887,278
-136,732
-126,000
-117,000
Q
-78,471
-68,000
-148,000
BA
0
4,510,636
3,676,812
5,196,345
5,446,344
9,851,410
7,622,278
Contribution to the International Bank for Reconstruction and Development
151
Appropriation, current
BA
126,042
109,721
33,592
79,721
* 30,000
33,855
A
3,000
Total Contribution to the International Bank for
Reconstruction and Development
BA
0
126,042
33,592
109,721
36,855
109,721
27,019
Contribution to the International Development Association
151
Appropriation, current
BA
945,000
Deductions for offsetting receipts:
Proprietary receipts from the public
152 BA
QftO
Total International Security Assistance
DA
International Development Assistance
Multilateral Assistance
Federal funds
General and Special Funds:
Outlays
0
27,019
945,000
* 750,000
A
Outlays
0
913,940
150,000
1,018,100
M,500
910,900
18,000
A
Total Contribution to the International Development Association
BA
0
945,000
913,940
1,095,000
1,022,600
750,000
928,900
Contribution to the Inter-American Development
Bank
151
Appropriation, current
BA
284,100
118,424
130,501
* 20,000
217,393
* 92,500
289,029
284,100
217,393
210,924
289,029
Outlays
0
Total Contribution to the Inter-American Development Bank
BA
0
See footnotes at end of table.
304,613
A
2,050
150,501
306,663
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-25
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Funds Appropriated to the President—Con.
International Development Assistance—Con.
Multilateral Assistance—Con.
Contribution to the Asian Development Bank
Appropriation, current
151
BA
131,883
113,233
157,349
M7,116
Outlays
0
41,312
97,774
101,351
*942
131,883
41,312
160,349
97,774
157,349
102,293
BA
0
50,000
17,342
50,000
48,360
50,000
68,960
BA
0
17,987
17,987
17,987
17,987
17,987
BA
269,502
314,164
0
218,736
B
3,686
320,538
50,000
* 191,800
269,502
218,736
317,850
320,538
241,800
256,027
BA
0
1,806,527
1,460,302
1,961,831
1,833,143
1,477,358
1,707,849
BA
BA
0
1,303,243
42,512
1,157,761
1,326,872
15,000
1,187,500
1,408,899
Total Functional development assistance program BA
0
1,345,755
1,157,761
1,341,872
1,187,500
1,408,899
1,251,574
BA
93,757
103,000
0
66,429
76,209
* 97,500
85,600
BA
0
93,757
66,429
103,000
76,209
97,500
85,600
Total Contribution to the Asian Development
Bank
BA
0
Contribution to the African Development Fund
Appropriation, current
Outlays
Contribution to the African Development Bank
Appropriation, current
Outlays
International organizations and programs
Appropriation, current
151
151
151
Outlays
Total International organizations and programs.... BA
0
Total Federal funds Multilateral Assistance
252,341
B
3,686
Agency for International Development
Federal funds
General and Special Funds:
Functional development assistance program
Appropriation, current
Reappropriation
Outlays
Sahel development program
Appropriation, current
151
151
Outlays
Total Sahel development program
Economic policy initiative for Africa
Appropriation, current
Outlays
See footnotes at end of table.
1,251,574
151
BA
0
*75,000
* 22,500
8-26
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Funds Appropriated to the President—Con.
International Development Assistance—Con.
Agency for International Development—Con.
American schools and hospitals abroad
Appropriation, current
151
BA
20,000
30,000
0
20,633
22,929
* 10,000
21,863
8A
0
20,000
20,633
30,000
22,929
10,000
21,863
BA
40,000
25,000
BA
0
1,950
61,783
83,556
71,950
BA
0
41,950
61,783
25,000
83,556
25,000
71,950
Operating expenses Agency for International Development
151
Appropriation, current
BA
344,938
361,533
Outlays
Total American schools and hospitals abroad
International disaster assistance
Appropriation, current
151
* 25,000
Reappropriation
Outlays
Total international disaster assistance
* 398,097
* 3,700
D
4,790
Reappropriation
Outlays
BA
0
1,500
331,247
Total Operating expenses Agency for International Development
BA
0
Payment to the Foreign Service retirement and disability fund
153
Appropriation, current
BA
379,064
*740
346,438
331,247
370,023
357,844
398,097
379,804
36,537
36,537
* 3,895
40,562
36,537
Outlays..
354,884
A
2,960
36,537
* 3,895
J
- 6,400
40,562
'-6,400
Total Payment to the Foreign Service retirement
and disability fund
BA
0
Miscellaneous appropriations
Reappropriation
Outlays
36,537
36,537
40,432
40,432
34,162
34,162
BA
0
22
4,029
3,898
3,500
0
8,840
4,591
9,490
20,000
1,680
20,000
10,924
151
Public Enterprise Funds:
Housing and other credit guaranty programs
Outlays
Private sector revolving fund
Appropriation, current
Outlays
See footnotes at end of table.
151
151
BA
0
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-27
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Funds Appropriated to the President—Con.
International Development Assistance—Con.
Agency for International Development—Con.
Development loans-revolving fund
Outlays
151
929
I ntra govern mental Funds:
Advance acquisition of property-revolving fund
151
Outlays
Office of the Inspector General of Foreign Assistance
151
Outlays
-1,047
139
Trust funds
Miscellaneous trust funds
Appropriation, permanent, indefinite
Outlays
151
BA
0
13,114
6,337
15,000
15,000
15,000
15,000
8A
0
1,884,459
1,687,141
1,930,327
1,778,778
2,068,658
1,891,367
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
151
908
BA
0
BA
0
-385,400
-339,317
-341,971
-362,040
-288,779
-289,243
BA
0
Trust funds:
(As shown in detail above)..
1,137,019
939,701
1,302,231
1,150,682
1,437,444
1,260,153
BA
0
Total Federal funds..
13,114
6,337
15,000
15,000
15,000
15,000
Deductions for offsetting receipts:
Proprietary receipts from the public
151
BA
0
Total Trust funds
-13,114
-15,000
-15,000
-6,777
Total Agency for International Development
BA
0
1,137,019
932,924
1,302,231
1,150,682
BA
10,500
16,250
3,675
8,275
10,500
3,675
16,250
8,275
1,437,444
1,260,153
Trade and Development Program
Federal funds
General and Special Funds:
Trade and development program
Appropriation, current
Outlays
Total Trade and development program..
151
0
BA
0
See footnotes at end of table.
* 21,000
13,110
21,000
13,110
8-28
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Funds Appropriated to the President—Con.
International Development Assistance—Con.
Peace Corps
Federal funds
General and Special Funds:
Peace Corps operating expenses
Appropriation, current
151
BA
Trust funds
Peace Corps miscellaneous trust funds
Appropriation, permanent, indefinite
Outlays
110,146
113,835
115,000
114,675
BA
0
Total Peace Corps operating expenses
115,000
0
Outlays
109,000
109,000
110,146
115,000
113,835
115,000
114,675
K
151
BA
0
467
263
450
350
500
500
Summary
Federal funds:
(As shown in detail above)
BA
0
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
BA
0
151 BA
o
Total Trust funds
BA
Q
Total Peace Corps
BA
0
109,000
110,146
467
263
115,000
113,835
115,000
114,675
450
350
500
500
450
350
500
500
-J™
138
-66
109,138
110,080
115,450
114,185
115,500
115,175
-100,502
-82,574
-91,098
12,000
13,000
9,828
12,341
11,992
16,292
12,000
9,828
13,000
12,341
11,992
16,292
Overseas Private Investment Corporation
Federal funds
Public Enterprise Funds:
Overseas Private Investment Corporation
Outlays
151
0
Inter-American Foundation
Federal funds
Public Enterprise Funds:
Inter-American Foundation
Appropriation, current
Outlays
Total Inter-American Foundation
See footnotes at end of table.
151
BA
0
BA
0
K
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-29
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Funds Appropriated to the President—Con.
International Development Assistance—Con.
Inter-American Foundation—Con.
Trust funds
Gifts and contributions, Inter-American Foundation
151
Outlays
African Development Foundation
Federal funds
General and Special Funds:
African Development Foundation
Appropriation, current
Outlays
151
BA
0
0
Total Trust funds International Development AsBA
sistance
0
3,000
2,500
3,075,046
2,423,150
3,411,312
3,036,902
3,065,794
3,023,481
138
-6,843
450
353
500
500
-1,178
Total Federal funds International Development
BA
Assistance
3,000
1,200
20,000
International Commodity Agreements
Federal funds
General and Special Funds:
155
Contributions to international buffer stocks
Outlays
International Monetary Programs
Federal funds
General and Special Funds:
United States quota, International Monetary Fund
155
BA
Appropriation, current, indefinite
0
Outlays
Supplementary financing facility, International Monetary Fund
155
Outlays
0
Loans to International Monetary Fund
155
Appropriation, current
BA
5,812,511
149,830
365
2,651,498
Total Federal funds International Monetary ProBA
grams
8,464,009
0
150,195
0
-1,474
0
-439,310
Military Sales Programs
Federal funds
Public Enterprise Funds:
Liquidation of foreign military sales fund
Outlays
Special defense acquisition fund
Outlays
See footnotes at end of table.
155
155
-77,571
103,838
8-30
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Funds Appropriated to the President—Con.
Military Sales Programs—Con.
Trust funds
Foreign military sales trust fund
155
Contract authority, permanent, indefinite
BA
8,630,341
Liquidation of contract authority, permanent
(13,180,102)
Outlays
0
12,404,522
12,600,000
(13,300,000)
12,500,000
13,000,000
(12,900,000)
12,900,000
Summary
Federal funds:
(As shown in detail above)
0
Deductions for offsetting receipts:
Proprietary receipts from the public
-77,571
103,838
BA
0
Trust funds:
(As shown in detail above)
-440,784
8,630,341
12,404,522
12,600,000
12,500,000
13,000,000
12,900,000
15 B _
5
A
m n m
_ ^
_12,m000
M
Total Trust funds
BA
0
-4,549,761
-775,580
-700,000
-800,000
100,000
Total Military Sales Programs
BA
0
-4,549,761
-1,216,364
-700,000
-877,571
100,000
103,838
Petroleum Reserves
Federal funds
General and Special Funds:
Petroleum reserves
Outlays
271
0
2
Public Works Acceleration
Federal funds
General and Special Funds:
Public works acceleration
Outlays
452
0
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
BA
0
11 B
5 A
1,136
8,844,458
7,237,136
_
m m
18,049,162
9,672,955
_
13,914,418
12,030,811
m m
_mm
1W) RA
™
908
Total Federal funds
Trust funds:
(As shown in detail above)
See footnotes at end of table.
-136,732
-126,000
-117,000
A
|*
-440,511
-356,779
-437,243
BA
0
7,881,815
6,274,493
17,227,066
8,850,859
13,018,204
11,134,597
BA
0
8,643,984
12,411,122
12,615,490
12,515,653
13,015,510
12,916,000
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-31
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Funds Appropriated to the President—Con.
Summary—Con.
Deductions for offsetting receipts.
Proprietary receipts from the public
151 BA
0
155 BA
0
-13,443
-15,000
-15,000
-13,180,102
-13,300,000
-12,900,000
Total Trust funds
BA
0
-4,549,561
-782,423
-699,510
-799,347
100,510
1,000
Total Funds Appropriated to the President
BA
0
3,332,254
5,492,070
16,527,556
8,051,512
13,118,714
11,135,597
5,240
Department of Agriculture
Office of the Secretary
Federal funds
General and Special Funds:
Office of the Secretary
Appropriation, current
352
BA
0
Total Office of the Secretary
4,920
5,045
D
99
5,144
BA
0
Outlays
4,695
4,695
4,920
5,144
5,144
5,240
5,240
13,509
17,999
18,697
5,240
Departmental Administration
Federal funds
General and Special Funds:
Departmental administration
Appropriation, current
352
BA
c4
D
0
9,839
279
14,461
23,901
BA
0
13,509
9,839
18,282
14,461
18,697
23,901
BA
0
56,377
56,622
64,270
64,270
67,254
67,254
BA
0
1,398
702
1,398
1,398
1,398
1,398
BA
0
-4,026
-90
10,000
9,866
Total Federal funds Departmental Administration. BA
0
71,284
63,137
83,950
80,039
97,349
102,419
Outlays
Total Departmental administration
Standard level user charges
Appropriation; current
Outlays
Advisory committees
Appropriation, current
Outlays
352
352
I ntra govern mental Funds:
Working capital fund
Appropriation, current
Outlays
See footnotes at end of table.
352
8-32
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Agriculture—Con.
Office of Governmental and Public Affairs
Federal funds
General and Special Funds:
Governmental and Public Affairs
Appropriation, current
352
BA
0
BA
0
Outlays
Total Governmental and Public Affairs
7,382
7,691
6,109
7,407
D
59
7,466
7,382
6,109
7,466
7,466
7,691
7,691
46,066
7,691
Office of the Inspector General
Federal funds
General and Special Funds:
Office of the Inspector General
Appropriation, current
352
BA
0
43,041
41,011
44,996
44,302
46,066
45,362
BA
13,924
14,141
14,976
D
330
15,243
15,865
0
BA
0
13,924
14,141
15,306
15,243
15,865
15,882
BA
BA
0
460,626
483,040
459,849
471,958
2,800
481,967
BA
0
Total Office of the Inspector General
41,011
44,579
D
417
44,302
BA
0
Outlays
43,041
460,626
459,849
474,758
481,967
483,040
483,498
BA
0
4,927
8,008
27,725
10,555
13,862
45,362
Office of the General Counsel
Federal funds
General and Special Funds:
Office of the General Counsel
Appropriation, current
352
Outlays
Total Office of the General Counsel
15,882
Agricultural Research Service
Federal funds
General and Special Funds:
Agricultural Research Service
Appropriation, current
Appropriation, permanent
Outlays
352
Total Agricultural Research Service
Buildings and facilities
Appropriation, current
Outlays
See footnotes at end of table.
483,498
352
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-33
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Agriculture—Con.
Agricultural Research Service—Con.
Trust funds
Miscellaneous contributed funds
352
Appropriation, permanent, indefinite
BA
Outlays
0
Total Federal funds Agricultural Research Service BA
0
Total Trust funds Agricultural Research Service... BA
0
1,743
1,587
465,553
467,857
2,000
2,082
502,483
492,522
2,000
2,082
483,040
497,360
1,743
1587
2,000
2,082
2,000
2,082
Cooperative State Research Service
Federal funds
General and Special Funds:
Cooperative State Research Service
Appropriation, current
Outlays
352
BA
0
244,949
220,357
247,655
242,957
266,785
244,948
BA
0
328,654
322,729
334,340
333,281
299,377
305,460
BA
8,732
11,661
0
6,305
10,323
D
59
10,221
11,368
BA
0
8,732
6,305
10,382
10,221
11,661
11,368
BA
51,830
57,534
0
49,407
53,903
D
527
54,112
BA
0
51,830
49,407
54,430
54,112
57,534
57,182
Extension Service
Federal funds
General and Special Funds:
Extension Service
Appropriation, current
Outlays
352
National Agricultural Library
Federal funds
General and Special Funds:
National Agricultural Library
Appropriation, current
352
Outlays
Total National Agricultural Library
Statistical Reporting Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
352
Outlays
Total Salaries and expenses
Trust funds
Miscellaneous contributed funds
Appropriation, permanent, indefinite
Outlays
See footnotes at end of table.
57,182
352
BA
0
137
146
150
150
150
150
8-34
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Agriculture—Con.
Economics and Statistics Service
Federal funds
General and Special Funds:
Salaries and expenses
Outlays
352
0
171
Economic Research Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
352
BA
Trust funds
Miscellaneous contributed funds
Appropriation, permanent, indefinite
Outlays
36,836
43,098
545
46,733
BA
0
Total Salaries and expenses
43,841
D
488
BA
0
Reappropriation
Outlays
38,966
46,935
38,966
36,836
44,329
43,098
47,480
46,733
352
BA
0
64
54
64
85
64
64
BA
1,463
1,677
0
1,299
1,500
D
33
1,507
BA
0
1,463
1,299
1,533
1,507
1,677
1,636
World Agricultural Outlook Board
Federal funds
General and Special Funds:
World agricultural outlook board
Appropriation, current
352
Outlays
Total World agricultural outlook board
1,636
Foreign Agricultural Service
Federal funds
General and Special Funds:
Foreign Agricultural Service
Appropriation, current
Outlays
Total Foreign Agricultural Sen/ice
352
BA
75,020
0
BA
0
Salaries and expenses (special foreign currency program)
352
Outlays
0
Total Federal funds Foreign Agricultural Service.. BA
0
See footnotes at end of table.
70,662
83,717
D
266
83,983
83,291
75,020
70,662
83,983
83,983
83,291
83,291
174
75,020
70,836
83,291
177
83,983
84,160
83,291
83,291
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-35
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Agriculture—Con.
Office of International Cooperation and
Development
Federal funds
General and Special Funds:
Salaries and expenses
352
Appropriation, current
BA
Outlays
0
Scientific activities overseas (foreign currency program)
352
Appropriation, current
BA
Outlays
0
Trust funds
Miscellaneous contributed funds
352
Appropriation, permanent, indefinite
BA
Outlays
0
Total Federal funds Office of International Cooperation and Development
BA
0
Total Trust funds Office of International Cooperation and Development
BA
0
3,662
9,574
5,016
4,016
4,074
4,674
4,977
3,029
5,000
6,055
5,000
5,792
8,910
7,344
4,591
7,900
7,900
7,900
8,639
12,603
8,910
7,344
10,016
10,071
9,074
10,466
4,591
7,900
7,900
7,900
Foreign Assistance Programs
Federal funds
General and Special Funds:
Expenses, Public Law 480, foreign assistance programs, Agriculture
151
Appropriation, current
BA
Outlays
0
1,028,000
991,987
1,052,000
1,052,000
1,319,000
1,319,000
BA
55,962
51,986
0
27,535
61,374
BA
0
55,962
27,535
51,986
61,374
50,857
63,293
5,683
9,000
11,000
190,000
179,772
190,000
197,000
80,000
185,200
Agricultural Stabilization and Conservation
Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
351
Outlays
Total Salaries and expenses
Rural clean water program
Outlays
Agricultural conservation program
Appropriation, current
Outlays
Colorado river basin salinity control program
Appropriation, current
Outlays
See footnotes at end of table.
53,217
-2,360
65,653
^-2,360
L
304
0
302
BA
0
304
BA
0
12,550
6,275
8-36
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Agriculture—Con.
Agricultural Stabilization and Conservation
Service—Con.
Water Bank program
Appropriation, current
Outlays
Emergency conservation program
Appropriation, current
Outlays
Dairy and beekeeper indemnity programs
Appropriation, current
Outlays
Forestry incentives program
Appropriation, current
Outlays
302
BA
0
8,800
10,853
8,800
9,600
BA
0
9,854
7,000
13,250
BA
0
7,000
6,121
1,800
2,841
BA
0
12,500
10,554
Total Federal funds Agricultural Stabilization and
Conservation Service
BA
0
274,262
250,372
272,086
306,415
143,407
265,768
BA
236,191
227,234
0
96,763
200,000
D
495
200,495
BA
0
236,191
96,763
200,495
200,495
227,234
227,234
BA
BA
0
293,233
141,000
233,418
110,000
100,000
434,937
BA
0
293,233
233,418
210,000
434,937
141,000
100,000
Total Federal funds Federal Crop Insurance Corporation
BA
0
529,424
330,181
410,495
635,432
368,234
327,234
453
351
302
12,500
13,350 .
.
Federal Crop Insurance Corporation
Federal funds
General and Special Funds:
Administrative and operating expenses
Appropriation, current
351
Outlays
Total Administrative and operating expenses
227,234
Public Enterprise Funds:
Federal Crop Insurance Corporation fund
Appropriation, current
Authority to borrow, current, indefinite..
Outlays
351
Total Federal Crop Insurance Corporation fund
See footnotes at end of table.
A
100,000
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-37
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Department of Agriculture—Con.
Commodity Credit Corporation
Federal funds
Public Enterprise Funds:
Price support and related programs: Reimbursement
for net realized losses
351
Authority to borrow, current
Authority to borrow, permanent
Contract authority, permanent, indefinite
Liquidation of contract authority, current
Outlays
BA
BA
BA
19,013,359
8,315,213
0
18,757,324
Limitation on administrative expenses and direct
loans
L
66,205
(9,607,431)
6,585,631
-1,202,134
9,900,403
10,785,401
<<-120,000
(500,000)
Total Price support and related programs
BA
0
27,328,572
18,757,324
66,205
6,585,631
8,698,269
10,665,401
BA
0
50,000
6,717
50,000
73,103
50,000
60,000
BA
0
53,855
93,575
93,575
106,146
106,146
116,495
Total Federal funds Commodity Credit CorporaBA
tion
0
27,432,427
18,857,616
209,780
6,764,880
8,854,415
10,841,896
BA
2,030
2,423
0
1,597
2,000
°17
2,367
BA
0
2,030
1,597
2,017
2,367
2,423
2,422
752
60
2,030
2,349
2,017
2,427
General and Special Funds:
Temporary storage and distribution of Commodity
Credit Corporation emergency food assistance
351
Appropriation, current
Outlays
National Wool Act (special fund)
351
Appropriation, permanent, indefinite
Outlays
Office of Rural Development Policy
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
452
Outlays..
Total Salaries and expenses
Rural development planning grants
Outlays
2,422
452
....
Total Federal funds Office of Rural Development
Policy
See footnotes at end of table.
BA
0
2,423
2,422
8-38
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Department of Agriculture—Con.
Rural Electrification Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
271
B
A
29,526
29,585
D
320
27,282
30,566
30,340
J
Outlays..
J
-30,340
30,304
-28,715
BA
0
29,526
27,282
29,905
30,566
1,589
BA
BA
0
91
750
6,972
375
1,012
15,062
81
4
1,101
1,942
BA
0
841
6,972
1,387
15,062
1,942
1,942
Total Federal funds Rural Electrification Administration
BA
0
30,367
34,254
31,292
45,628
1,942
3,531
300,000
156,677
90,000
209,485
90,000
191,685
3,586
2,079
1,852
BA
305,530
327,251
0
292,860
327,149
c
10
D
3,244
329,766
BA
0
305,530
292,860
330,403
329,766
327,251
325,906
BA
0
3,250
1,891
3,250
3,409
1,889
BA
0
15,544
4,393
15,718
13,209
BA
0
12,500
7,116
6,000
7,228
7,617
Total Salaries and expenses...
Public Enterprise Funds:
Rural communication development fund
Appropriation, current
Authority to borrow, permanent, indefinite
Outlays
452
Total Rural communication development fund
Farmers Home Administration
Federal funds
General and Special Funds:
Rural water and waste disposal grants
Appropriation, current
Outlays
Rural development grants
Outlays
Salaries and expenses
Appropriation, current
452
BA
0
452
0
452
Outlays
Totaf Salaries and expenses
Rural community fire protection grants
Appropriation, current
Outlays
Rural housing for domestic farm labor
Appropriation, current
Outlays
Mutual and self-help housing
Appropriation, current
Outlays
Rural housing supervisory assistance grants
Outlays
See footnotes at end of table.
325,906
452
604
604
371
0
404
278 .
.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-39
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Agriculture—Con.
Farmers Home Administration—Con.
Very low income housing repair grants
Appropriation, current
Outlays
Rural rental assistance payments
Appropriation, current
Outlays
Compensation for construction defects
Appropriation, current
Outlays
604
BA
0
604
12,500
12,198
625
49,000
8,700
BA
0
12,500
13,493
116,000
157,613
371
BA
0
2,000
296
2,000
2,000
0
618
-493
-513
BA
BA
BA
0
1,109,722
103,101
887,056
1,828,214
1,508,082
143,805
353,679
2,083,540
1,843,927
BA
0
2,099,879
1,828,214
2,005,566
2,083,540
1,843,927
1,842,342
BA
BA
0
682,074
623,478
1,408,424
895,522
872,000
1,461,874
1,089,943
BA
0
1,305,552
1,408,424
1,767,522
1,461,874
1,089,943
1,366,358
BA
BA
0
336,217
405,625
574,829
477,829
560,005
572,266
655,332
BA
0
741,842
574,829
477,829
572,266
560,005
655,332
Total Federal funds Farmers Home Administration
BA
0
4,783,053
4,302,657
4,748,463
4,709,343
4,027,126
4,563,915
335,974
350,730
Public Enterprise Funds:
Self-help housing land development fund
Outlays
Rural housing insurance fund
Appropriation, current
Indefinite
Authority to borrow, permanent, indefinite
Outlays
371
371
Total Rural housing insurance fund
Agricultural credit insurance fund
Appropriation, current
Authority to borrow, permanent, indefinite
Outlays
351
Total Agricultural credit insurance fund
Rural development insurance fund
Appropriation, current
Authority to borrow, permanent, indefinite
Outlays
1,842,342
1,366,358
452
Total Rural development insurance fund
Soil Conservation Service
Federal funds
General and Special Funds:
Conservation operations
302
0
BA
0
Outlays
Total Conservation operations
River basin surveys and investigations
Appropriation, current
Outlays
See footnotes at end of table.
420-000 O - 84 - 25 : QL 3
327,482
346,947
G
8,138
354,777
335,974
327,482
355,085
354,777
350,730
355,552
BA
0
16,419
15,619
16,189
13,556
13,874
B
A
Appropriation, current-
355,552
301
15,714
8-40
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Agriculture—Con.
Soil Conservation Service—Con.
Watershed planning
Appropriation, current
Outlays
Watershed and flood prevention operations
Appropriation, current
301
BA
0
8,877
8,779
8,675
8,675
7,898
8,348
BA
307,425
86,079
0
190,844
183,200
'-8,138
264,699
250,232
307,425
190,844
175,062
264,699
86,079
250,232
BA
0
21,315
21,286
21,315
21,225
16,773
20,980
BA
0
30,744
26,077
26,000
37,816
6,204
BA
0
10,806
1,304
460
3,736
600
3,826
BA
0
100
100
100
100
100
100
Total Miscellaneous contributed funds
BA
0
10,906
1,404
560
3,836
700
3,926
Total Federal funds Soil Conservation Service
BA
0
Total Trust funds Soil Conservation Service
BA
0
301
Outlays
Total Watershed and flood prevention operations. BA
0
Great plains conservation program
Appropriation, current
Outlays
Resource conservation and development
Appropriation, current
Outlays
Trust funds
Miscellaneous contributed funds:
(Water resources)
(Appropriation, permanent, indefinite)
(Outlays)
(Conservation and land management)
(Appropriation, permanent, indefinite)
(Outlays)
302
302
301
302
720,754
590,182
10,906
1,404
601,756
703,381
475,036
655,190
560
3,836
700
3,926
Animal and Plant Health Inspection Service
Federal funds
General and Special Funds:
Animal and Plant Health Inspection Service
Appropriation, current
352
BA
267,558
0
Outlays
275,234
225,988
267,558
275,234
225,988
267,558
267,558
222,138
222,138
2,386
4,932
2,386
2,386
Total Animal and Plant Health Inspection Service
BA
0
Buildings and facilities
Appropriation, current
Outlays
See footnotes at end of table.
L
L
249,484
-27,346
249,484
-27,346
352
BA
0
2,386
1,945
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-41
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Agriculture—Con.
Animal and Plant Health Inspection
Service—Con.
Trust funds
Miscellaneous trust funds
Appropriation, permanent, indefinite
Outlays
352
BA
0
2,878
2,878
BA
0
277,620
227,933
269,944
272,490
224,524
224,524
BA
0
3,295
3,056
2,878
2,878
2,878
2,878
5,548
4,868
6,861
6,869
6,936
6,932
BA
0
Total Trust funds Animal and Plant Health Inspection Service
2,878
2,878
BA
0
Total Federal funds Animal and Plant Health
Inspection Service
3,295
3,056
2,238
BA
0
5,548
7,106
Federal Grain Inspection Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
Public Enterprise Funds:
Inspection and weighing services
Appropriation, current
Outlays
352
352
Total Federal funds Federal Grain Inspection
Service
6,000
12,861
6,869
6,936
6,932
Agricultural Marketing Service
Federal funds
General and Special Funds:
Marketing services
Appropriation, current
352
BA
32,925
30,729
29,727
-1,806
29,727
7
--1,806
L
Outlays
0
Total Marketing services
Payments to States and possessions
Appropriation, current
Outlays
Perishable Agricultural Commodities Act fund
Appropriation, permanent, indefinite
Outlays
See footnotes at end of table.
BA
0
8,224
30,729
32,925
8,224
30,729
30,729
27,921
27,921
352
BA
0
1,000
1,013
1,000
1,722
BA
0
3,683
3,081
3,272
3,272
352
3,272
3,272
8-42
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Agriculture—Con.
Agricultural Marketing Service—Con.
Funds for strengthening markets, income, and supply
(section 32)
605
Appropriation, current
Appropriation, permanent, indefinite
Outlays
75,000
400,433
546,472
355,947
440,142
483,614
353,752
BA
475,433
355,947
483,614
0
Total Funds for strengthening markets, income,
and supply (section 32)
BA
BA
0
546,472
440,142
353,752
88,643
93,006
76,237
76,237
83,109
83,109
Trust funds
Miscellaneous trust funds
Appropriation, permanent, indefinite
Outlays
Milk market orders assessment fund
Outlays
352
BA
0
351
0
Total Federal funds Agricultural Marketing Service
100
513,041
390,948
514,807
558,790
475,865
384,945
BA
88,643
76,237
83,109
0
93,006
76,337
83,109
BA
2,416
2,249
2,523
°26
2,551
2,540
0
BA
2,416
2,549
0
Total Trust funds Agricultural Marketing Service.
BA
0
2,249
2,551
Office of Transportation
Federal funds
General and Special Funds:
Office of Transportation
Appropriation, current
352
Outlays
Total Office of Transportation
2,541
2,540
2,541
Food Safety and Inspection Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
554
Total Salaries and expenses
328,077
0
Outlays
BA
356,067
323,234
333,696
D
4,362
337,834
BA
0
328,077
323,234
338,058
337,834
356,067
356,067
BA
0
664
1,355
686
686
686
686
356,067
Trust funds
Expenses and refunds, inspection and grading of farm
products
352
Appropriation, permanent, indefinite
Outlays
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-43
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Agriculture—Con.
Food and Nutrition Service
Federal funds
General and Special Funds:
Food program administration
Appropriation, current
605
BA
0
Food stamp program
Appropriation, current
82,459
82,979
83,062
83,046
83,187
83,180
BA
Total Food program administration
83,187
82,979
81,352
1,710
83,046
BA
0
Outlays
82,459
11,989,688
11,022,914
A
308,037
D
83,180
605
11,154,926
L
0
11,839,239
10,928,267
'307,729
-374,000
11,144,846
'308
*>-373,626
BA
0
11,989,688
11,839,239
11,330,951
11,235,996
10,780,926
10,771,528
BA
0
825,000
814,163
825,000
825,000
825,000
825,000
BA
0
20,100
14,912
11,920
19,302
17,600
19,406
BA
0
20,100
14,912
11,920
19,302
17,600
19,406
BA
1,014,324
705,919
' 545,544
1,422,447
BA
0
2,281,676
3,278,133
2,307,295
3,033,571
' 509,538
-48,700
2,301,833
3,675,125
* 36,006
L
-45,500
BA
0
3,296,000
3,278,133
3,558,758
3,543,109
3,675,580
3,665,631
Special supplemental food programs (WIC and
CSFP)
605
Appropriation, current
BA
1,193,350
1,100,150
'166,986
1,106,741
'146,113
1,277,292
1,264,678
* 20,873
1,267,136
1,252,854
1,277,292
1,285,551
Outlays
Total Food stamp program
Nutrition assistance for Puerto Rico
Appropriation, current
Outlays
Special milk program
Appropriation, current
Outlays
605
605
Total Special milk program
Child nutrition programs
Appropriation, current
Appropriation, permanent
Outlays
Total Child nutrition programs
Outlays
605
0
Total Special supplemental food programs (WIC
and CSFP)
BA
0
See footnotes at end of table.
1,149,831
1,193,350
1,149,831
L
8-44
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Agriculture—Con.
Food and Nutrition Service—Con.
Food donations program
Appropriation, current
Reappropriation
Outlays
Total Food donations program
605
BA
BA
0
BA
0
172,266
23,546
146,898
172,266
146,898
166,936
17,758
162,027
184,694
162,027
Total Federal funds Food and Nutrition Service.... BA
0
17,578,863
17,326,155
17,261,521
17,121,334
16,683,131
16,736,444
A
86,148
23,546
86,148
Human Nutrition Information Service
Federal funds
General and Special Funds:
Human Nutrition Information Service
Appropriation, current
352
BA
0
8,152
5,766
6,148
7,913
7,496
7,637
BA
0
8,834
8,217
9,013
9,013
9,035
9,035
BA
0
Total Human Nutrition Information Service
7,496
5,766
6,114
»34
7,913
BA
0
Outlays
8,152
4,639
4,532
4,639
4,639
3,565
3,565
7,637
Packers and Stockyards Administration
Federal funds
General and Special Funds:
Packers and Stockyards Administration
Appropriation, current
Outlays
352
Agricultural Cooperative Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
Trust funds
Miscellaneous contributed funds
Outlays
352
352
0
1
1
107,672
103,070
103,070
103,768
Forest Service
Federal funds
General and Special Funds:
Forest research
Appropriation, current
Outlays
Total Forest research
See footnotes at end of table.
302
BA
0
109,764
108,555
G
848
108,554
BA
0
107,672
109,764
109,403
108,554
103,768
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-45
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Department of Agriculture—Con.
Forest Service—Con.
State and private forestry
Appropriation, current
302
BA
0
National forest system
Appropriation, current
62,835
66,455
60,753
59,321
25,505
31,292
BA
1,097,277
888,506
^ 34,301
^9,769
966,718
* 34,301
1,036,959
1,097,277
985,617
932,576
1,001,019
1,036,959
986,330
1,007
7,274
BA
310,566
402,232
251,724
*—10,814
282,602
253,898
0
Total State and private forestry
66,455
BA
0
Outlays
60,579
6
174
59,321
310,566
402,232
240,910
282,602
253,898
255,264
985,617
Total National forest system
BA
0
0
BA
0
Youth Conservation Corps
302
Outlays
Other appropriations
302
Appropriation, current
Outlays
Acquisition of lands for national forests, special
acts
302
Appropriation, current
Outlays
Acquisition of lands to complete land exchanges
302
Appropriation, current, indefinite
Outlays
Range betterment fund
302
Appropriation, current, indefinite
Outlays
Land acquisition
303
Appropriation, current
255,264
8
2
-105 .
BA
0
2
281
490 .
BA
0
753
404
780
780
782
782
BA
0
109
183
20
20
20
20
BA
0
5,378
5,830
4,028
4,210
3,665
3,665
BA
63,077
38,552
9,635
37,284
49,135
28,555
BA
0
Total Land acquisition
0
0
Outlays
986,330
302
Total Construction
See footnotes at end of table.
31,292
302
Outlays..
Forest Service permanent appropriations
Appropriation, permanent, indefinite
Outlays
25,505
302
Outlays....
Forest management, protection and utilization
Outlays
Construction
Appropriation, current
62,835
63,077
37,284
38,575
49,135
9,635
28,555
BA
0
153,162
113,062
159,000
154,598
141,953
148,056
302
8-46
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Agriculture—Con.
Forest Service—Con.
Forest Service permanent appropriations
Appropriation, current
Appropriation, permanent, indefinite
Outlays
852
BA
BA
0
J
143,656
143,656
204,300
204,300
J
Total Forest Service permanent appropriations
BA
0
143,656
143,656
-21,500
306,000
306,000
-21,500
204,300
204,300
284,500
284,500
Intragovernmental Funds:
Working capital fund
Outlays
Trust funds
Miscellaneous trust funds
Appropriation, current
Appropriation, permanent, indefinite
Outlays
302
0
-40,638
302
BA
BA
0
Total Federal funds Forest Service
Total Trust funds Forest Service
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts.
Intrafund transactions
Proprietary receipts from the public
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
See footnotes at end of table.
90
153,270
153,106
169,937
116,290
150,090
149,954
153,360
153,106
BA
0
150,027
62,430
34,180
66,317
31,615
80,752
53
32
BA
0
1,944,485
1,824,940
1,750,626
1,872,198
BA
319,964
184,270
184,975
0
Reforestation trust fund
Appropriation, permanent, indefinite
Outlays
Highland scenic highway
Outlays
90
150,000
149,954
BA
0
Total Miscellaneous trust funds
169,937
116,290
178,773
216,303
233,858
56,836,124
46,966,238
28,820,209
35,754,335
36,291,801
38,987,916
302
401
0
BA
0
302 BA
Pi
302 BA
—109, ouo
^ ^
_lQJJm
1,859,987
1,842,232
_ ^
w
BA
0
56,259,501
46,389,615
27,743,197
34,677,323
34,962,057
37,658,172
BA
0
434,326
286,726
271,436
310,258
282,462
334,653
302 BA
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-47
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Agriculture—Con.
Summary—Con.
352 BA
0
-114,361
-87,166
-97,487
.. BA
0
150,053
2,453
34,270
73,092
31,705
83,896
BA
0
Total Trust funds
56,409,554
46,392,068
27,777,467
34,750,415
34,993,762
37,742,068
40,290
40,290
39,255
Total Department of Agriculture
Department of Commerce
General Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
376
BA
0
Total Salaries and expenses
White House conference on productivity
Appropriation, current
Reappropriation
Outlays
32,968
30,166
34,355
33,836
39,255
376
BA
BA
0
Total White House conference on productivity
Special foreign currency program
Appropriation, current
Outlays
30,166
33,839
G
516
33,836
BA
0
Outlays
32,968
1,500
1,309 .
200
1,300
...
BA
0
2,809 .
200
1,300
...
376
BA
0
500
63
693
450
0
3,868
-3,868
BA
0
380
311
200
200
200
200
Total Federal funds General Administration
BA
0
36,277
34,297
35,048
31,718
40,890
39,855
Total Trust funds General Administration
BA
0
380
311
200
200
200
200
600
600
Intragovernmental Funds:
Working capital fund
Outlays
Trust funds
Gifts and bequests
Appropriation, permanent, indefinite
Outlays
See footnotes at end of table.
376
376
8-48
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Commerce—Con.
Bureau of the Census
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
376
BA
0
Periodic censuses and programs
Appropriation, current
Outlays
88,070
66,143
77,369
G
700
76,642
69,232
66,143
78,069
76,642
88,070
87,038
BA
0
98,944
91,358
78,220
88,474
86,529
84,736
BA
0
168,176
157,501
156,289
165,116
174,599
171,774
BA
0
Outlays
Total Salaries and expenses
69,232
37,782
35,873
29,735
31,799
31,622
31,410
.. BA
0
87,038
376
Total Federal funds Bureau of the Census
Economic and Statistical Analysis
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
376
Public Enterprise Funds:
Technical information clearinghouse fund
Appropriation, current
Trust funds
Information products and services
Appropriation, current, indefinite
Appropriation, permanent, indefinite
Outlays
376
J
BA
5,000
376
J
BA
BA
0
25,167
26,100
29,000
29,000
BA
0
25,167
26,100
29,000
29,000
Total Federal funds Economic and Statistical
Analysis
BA
0
37,782
35,873
29,735
31,799
Total Trust funds Economic and Statistical Analysis
BA
0
25,167
26,100
29,000
29,000
Total Information products and services
See footnotes at end of table.
-31,000
31,000
31,000
'-31,000
36,622
31,410
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-49
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Commerce—Con.
Economic Development Assistance
Economic Development Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
452
BA
25,402
27,487
22,476
"220
Outlays
0
Economic development assistance programs
Appropriation, current
Outlays
Miscellaneous appropriations:
(Other advancement of commerce)
(Outlays)
(Area and regional development
(Outlays)
(Disaster relief and insurance
(Outlays)
(Training and employment)
(Outlays)
27,606
BA
25,402
27,707
22,476
0
25,998
27,606
23,009
268,500
264,969
240,000
332,090
287,120
0
9
1,000
509
0
17,357
15,000
5,000
0
-69
10
0
598
1,000
1,270
0
17,895
17,010
6,779
0
Total Salaries and expenses
25,998
23,009
12,281
-24,000
6,000
452
BA
0
376
452
453
504
Total Miscellaneous appropriations
Public Enterprise Funds:
Economic development revolving fund
Outlays
452
Total Federal funds Economic Development Administration
BA
293,902
267,707
22,476
0
321,143
352,706
322,908
0
5,067
3,700
3,834
0
2,702
2,783
200
Regional Development Program
Federal funds
General and Special Funds:
Regional development programs
Outlays
452
Trust funds
Regional development commissions
452
Outlays
Total Federal funds Economic Development Assistance
Total Trust funds Economic Development Assistance
See footnotes at end of table.
BA
293,902
267,707
22,476
0
326,210
356,406
326,742
0
2,702
2,783
200
8-50
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Commerce—Con.
Promotion of Industry and Commerce
International Trade Administration
Federal funds
General and Special Funds:
Operations and administration
Appropriation, current
376
BA
171,933
166,817
K
0
Outlays
Total Operations and administration
151,918
9,010
D
1,948
189,670
157,404
* 15,544
172,773
171,933
177,775
172,948
151,918
189,670
172,773
0
3,004
3,759
2,382
BA
171,933
177,775
172,948
0
Participation in United States expositions
Outlays
BA
0
154,922
193,429
175,155
47,265
49,885
376
Total Federal funds International Trade Administration
Minority Business Development Agency
Federal funds
General and Special Funds:
Minority business development
Appropriation, current
376
BA
0
47,265
53,495
49,885
0
Total Minority business development
57,062
BA
Outlays
53,290
G
205
57,485
57,062
57,485
52,594
8,189
11,986
52,594
United States Travel and Tourism
Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
376
BA
K
Outlays
0
Total Salaries and expenses
BA
0
7,765
11,986
8,583
8,871
8,189
11,986
8,583
7,765
11,986
8,871
227,387
219,749
243,256
262,900
231,416
236,620
Total Federal funds Promotion of Industry and
Commerce
See footnotes at end ol table.
BA
0
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-51
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Commerce—Con.
Science and Technology
National Oceanic and Atmospheric
Administration
Federal funds
General and Special Funds:
Operations, research, and facilities
Appropriation, current
306
B
A
798,704
* 49,146
155
22,600
913,748
23,600
996,055
38,600
927,241
BA
0
Total Operations, research, and facilities
960,712
BA
BA
0
Indefinite
Appropriation, permanent
Outlays
935,600
958,355
913,748
984,312
996,055
886,450
927,241
12,070
10,132
8,409
49,659
13,356
16,689
18,040
8,023
8,797
9,986
20,131
3,780
1,750
829
1,732
1,732
2,267
250
327
294
350
250
400
5,173
3,848
11,880
11,484
4,500
4,936
Construction
306
Outlays
0
Coastal zone management
302
Appropriation, current
BA
Outlays
0
Promote and develop fishery products and research
pertaining to American fisheries
376
Appropriation, permanent, indefinite
BA
Outlays
0
Fishing vessel and gear damage compensation
fund
376
Appropriation, current
BA
Outlays
0
Fishermen's contingency fund
376
Appropriation, current
BA
Outlays
0
Foreign fishing observer fund
376
Appropriation, current
BA
Outlays
0
Fisheries loan fund
376
Appropriation, current
BA
Outlays
0
Fishermen's guaranty fund
376
Appropriation, current
BA
Outlays
0
10,000
157
3,000 ..
.
2,883
2,267
1,800
1,682
2,079
1,962
1,800
1,791
-2,436
14,000
3,200
7,100
6,614
9,500
8,700
Public Enterprise Funds:
Coastal energy impact fund
Outlays
Federal ship financing fund, fishing vessels
Authority to borrow, current, indefinite
Outlays
See footnotes at end of table.
452
0
376
BA
0
8-52
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Department of Commerce—Con.
Science and Technology—Con.
National Oceanic and Atmospheric
Administration—Con.
Trust funds
Aviation weather services program
Appropriation, current
Outlays
306
BA
0
Total Federal funds National Oceanic and Atmospheric Administration
BA
0
27,000
27,000
Total Trust funds National Oceanic and Atmospheric Administration
BA
0
1,036,139
1,084,118
893,000
963,922
27,000
27,000
1,000,860
995,295
27,000
27,000
27,000
27,000
101,631
101,631
97,180
Patent and Trademark Office
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
376
BA
0
78,441
62,193
81,573
91,215
BA
Total Salaries and expenses
62,193
80,373
1,200
91,215
BA
0
Outlays
78,441
114,305
111,953
D
97,180
National Bureau of Standards
Federal funds
General and Special Funds:
Scientific and technical research and services
Appropriation, current
376
«120,833
0
Outlays
Total Scientific and technical research and services
113,455
1,659
118,531
BA
0
114,305
113,455
113,612
118,531
BA
6,286
3,765 .
0
5,794
5,060
* 5,229
5,140
CD CD
G
6,286
5,794
3,765
5,060
5,229
5,140
120,591
119,249
117,377
123,591
126,062
131,873
126,733
120,833
126,733
Intragovernmental Funds:
Working capital fund
Appropriation, current
376
Outlays
Total Working capital fund
Total Federal funds National Bureau of Standards
See footnotes at end of table.
BA
0
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-53
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Commerce—Con.
Science and Technology—Con.
National Telecommunications and
Information Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
376
BA
12,190
12,756
K
13,944
G
0
Outlays
Total Salaries and expenses
15,353
100
12,826
13,563
BA
Total Trust funds Science and Technology
13,563
BA
0
15,000
22,580
11,880
24,400
16,921
BA
27,190
24,736
13,944
37,933
37,226
30,484
BA
Total Federal funds Science and Technology
13,944
12,826
1,227,082
1,259,825
1,134,637
0
Total Federal funds National Telecommunications
and Information Administration
12,856
15,353
0
Public telecommunications facilities, planning and construction
503
Appropriation, current
Outlays
12,190
0
1,214,670
1,336,150
1,223,459
27,000
27,000
27,000
27,000
1,990,606
1,988,300
1,991,860
2,184,089
1,640,640
2,029,860
-37,040
-32,040
BA
0
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
Pw«ta,»™,tsl,..tl»p.b«c
BA
0
908 BA
Deductions for offsetting receipts:
Proprietary receipts from the public
See footnotes at end of table.
JA
-61825
BA
1,922,864
1,944,242
1,572,420
0
Trust funds:
(As shown in detail above)
B»
376
Total Federal funds
306
1,920,558
2,136,471
1,961,640
25,547
29,113
56,200
58,983
27,200
27,400
BA
0
376 BA
8-54
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Commerce—Con.
Summary—Con.
BA
0
BA
0
Total Trust funds
Interfund transactions
376
f
J
26,040
4,263
7,829
32.130
34,913
27,200
27,400
-3,884
-4,930
-4,960
BA
0
Total Department of Commerce
BA
0
J
1,923,243
1,924,503
4,960
1,971,442
2,166,454
1,599,620
1,989,040
15,048,533
A
3,400
E
373,200
15,201,670
* 3,330
21,172,900
Department of Defense-Military
Military Personnel
Federal funds
General and Special Funds:
Military personnel, Army
Appropriation, current
051
BA
0
Military personnel, Navy
Appropriation, current
See footnotes at end of table.
15,897,500
10,877,649
11,171,278
E
279,630
11,340,600
10,846,708
10,877,649
11,450,908
11,340,600
15,897,500
15,842,900
BA
3,347,977
4,845,900
0
3,339,203
3,433,859
^ 5,500
E
85,710
3,446,600
A
5,300
BA
0
3,347,977
3,339,203
3,525,069
3,451,900
4,845,900
4,773,600
BA
12,217,050
17,799,900
0
12,180,119
12,577,203
'328,060
12,892,600
BA
0
12,217,050
12,180,119
12,905,263
12,892,600
17,799,900
17,787,400
15,842,900
051
Total Military personnel, Marine Corps
Total Military personnel, Air Force
10,846,708
BA
0
Outlays
Outlays
21,172,900
21,097,900
0
Total Military personnel, Navy
Military personnel, Air Force
Appropriation, current
15,425,133
15,205,000
21,097,850
^50
051
Outlays
Military personnel, Marine Corps
Appropriation, current
14,620,848
14,618,089
BA
Total Military personnel, Army
14,618,089
BA
0
Outlays
14,620,848
4,773,490
M10
051
17,787,400
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-55
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
2,184,300
Department of D e f e n s e - M i l i t a r y — C o n .
Military Personnel—Con.
Reserve personnel, Army
Appropriation, current
051
BA
0
Reserve personnel, Navy
Appropriation, current
1,228,250
1,194,632
1,395,430
1,367,400
2,184,300
2,111,000
BA
Total Reserve personnel, Army
1,194,632
1,361,150
E
34,280
1,367,400
BA
0
Outlays
1,228,250
678,425
1,131,600
1,074,900
2,111,000
051
0
648,477
749,248
17,700
735,200
BA
0
678,425
648,477
766,948
735,200
1,131,600
1,074,900
BA
170,900
269,500
0
166,424
176,200
E
3,400
171,900
BA
0
170,900
166,424
179,600
171,900
269,500
256,300
BA
362,125
565,800
0
344,304
380,000
E
8,750
388,000
BA
0
362,125
344,304
388,750
388,000
565,800
554,100
BA
1,677,000
3,075,000
0
1,625,861
1,882,980
E
49,860
1,891,300
BA
0
1,677,000
1,625,861
1,932,840
1,891,300
3,075,000
2,953,100
BA
538,425
889,200
E
Outlays
Total Reserve personnel, Navy
Reserve personnel, Marine Corps
Appropriation, current
051
Outlays
Total Reserve personnel, Marine Corps
Reserve personnel, Air Force
Appropriation, current
051
Outlays
Total Reserve personnel, Air Force
National Guard personnel, Army
Appropriation, current
554,100
051
Outlays
Total National Guard personnel, Army
National Guard personnel, Air Force
Appropriation, current
256,300
2,953,100
051
0
528,697
589,100
15,040
595,600
Total National Guard personnel, Air Force
BA
0
538,425
528,697
604,140
595,600
889,200
872,900
Total Federal funds Military Personnel
BA
0
45,687,708
45,523,455
48,574,081
48,039,500
67,831,600
67,324,100
E
Outlays
See footnotes at end of table.
420-000 0 - 84 - 26 : QL 3
872,900
8-56
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Defense-Military—Con.
Retired Military Personnel
Federal funds
General and Special Funds:
Retired pay, Defense
Appropriation, current
16,154,800
... 0
Outlays..
051
... BA
15,944,644
Total Retired pay, Defense...
BA
0
16,154,800
15,944,644
16,551,600
^ 243,000
J
-243,000
16,505,100
* 243,000
J
-243,000
20,400
16,551,600
16,505,100
20,400
Operation and Maintenance
Federal funds
General and Special Funds:
Operation and maintenance, Army
Appropriation, current
051
B
A
K
19,486,518
A
Outlays..
.... 0
Total Operation and maintenance, Army
Operation and maintenance, Navy
Appropriation, current
15,499,417
90,500
c
20,000
D
129,530
16,353,810
^ 70,590
18,601,560
A
15,340
19,486,518
18,616,900
BA
0
15,841,484
15,499,417
17,327,496
16,424,400
BA
21,070,587
21,955,818
051
* 26,248,426
A
116,800
c
85,610
D
100,500
Liquidation of contract authority, current
Outlays
0
BA
0
BA
Total Operation and maintenance, Navy
Operation and maintenance, Marine Corps
Appropriation, current
(10,619)
20,701,314
21,598,620
A
84,680
24,080,400
A
25,700
21,070,587
20,701,314
22,258,728
21,683,300
26,248,426
24,106,100
1,463,471
1,524,600
051
* 1,683,069
A
Outlays...
... 0
Total Operation and maintenance, Marine Corps.. BA
0
See footnotes at end of table.
1,329,462
1,463,471
1,329,462
14,500
c
3,915
D
4,405
1,482,840
* 9,960
1,594,890
^3,610
1,547,420
1,492,800
1,683,069
1,598,500
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-57
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Defense-Military—Con.
Operation and Maintenance—Con.
Operation and maintenance, Air Force
Appropriation, current
051
BA
17,057,126
17,574,595
"20,234,500
A
Outlays
19,604,050
A
7,050
20,234,500
19,611,100
0
16,594,844
BA
0
17,057,126
16,594,844
17,714,095
17,219,900
BA
Total Operation and maintenance, Air Force
Operation and maintenance, Defense agencies
Appropriation, current
44,500
c
27,000
"68,000
17,183,850
^36,050
5,787,210
6,449,652
051
"7,338,370
A
20,400
7,731
D
84,899
6,356,550
A
17,750
7,143,760
A
2,240
7,338,370
7,146,000
c
Outlays
0
Operation and maintenance, Army Reserve
Appropriation, current
BA
0
5,787,210
5,725,385
6,562,682
6,374,300
BA
Total Operation and maintenance, Defense agencies
5,725,385
705,584
683,850
051
"715,450
A
1,300
1,000
^ 5,740
661,330
A
1,070
700,740
A
160
715,450
700,900
c
Outlays
0
Total Operation and maintenance, Army Reserve.
Operation and maintenance, Navy Reserve
Appropriation, current
655,039
BA
0
705,584
655,039
691,890
662,400
BA
629,407
634,500
051
"829,531
Outlays
Total Operation and maintenance, Navy Reserve..
See footnotes at end of table.
0
585,767
BA
0
629,407
585,767
^500
C
865
"625
602,950
^350
757,090
M10
636,490
603,300
829,531
757,200
3-58
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Defense-Military—Con.
Operation and Maintenance—Con.
Operation and maintenance, Marine Corps Reserve
051
Appropriation, current
BA
51,094
52,129
0
42,276
"220
48,800
53,000
BA
0
51,094
42,276
52,349
48,800
58,642
53,000
BA
765,735
781,600
* 58,642
Outlays
Total Operation and maintenance, Marine Corps
Reserve
Operation and maintenance, Air Force Reserve
Appropriation, current
051
* 883,461
Outlays
* 2,600
c
2,800
D
3,700
775,120
A
2,380
868,700
*200
883,461
868,900
0
BA
0
765,735
744,254
790,700
777,500
BA
Total Operation and maintenance, Air Force Reserve
744,254
1,195,067
1,170,190
Operation and maintenance, Army National Guard
051
Appropriation, current
* 1,404,643
Outlays
M,300
c
2,000
D
10,950
1,165,500
* 3,500
1,345,580
A
120
1,404,643
1,346,300
0
Total Operation and maintenance, Army National
Guard
1,136,581
BA
0
1,195,067
1,136,581
1,187,440
1,169,000
BA
1,822,603
1,789,300
Operation and maintenance, Air National Guard
051
Appropriation, current
K
Outlays
Total Operation and maintenance, Air National
Guard
See footnotes at end of table.
0
1,767,298
BA
0
1,822,603
1,767,298
1,862,148
^2,600
c
8,400
D
6,300
1,773,680
^2,320
1,834,870
^230
1,806,600
1,776,000
1,862,148
1,835,100
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-59
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Department of Defense-Military—Con.
Operation and Maintenance—Con.
National Board for the Promotion of Rifle Practice,
Army
051
Appropriation, current
BA
87
8
89
9
96
6
90
0
90
0
BA
0
887
966
909
900
914
900
BA
144,400
160,400
0
130,089
152,900
* 177,900
168,500
BA
0
144,400
130,089
160,400
152,900
177,900
168,500
BA
3,258
3,372
0
2,258
3,300
* 3,470
3,500
BA
0
3,258
2,258
3,372
3,300
3,470
3,500
BA
2,400
BA
0
50,000
31,000
16,600
BA
0
150,000
119,000
25,000
80,927,042
76,854,500
Outlays....
Total National Board for the Promotion of Rifle
Practice, Army
051
Outlays
Total Claims, Defense.
051
Outlays
Total Court of Military Appeals, Defense...
Foreign currency fluctuations, Defense
Appropriation, current
Summer Olympics
Appropriation, current
Outlays
Environmental restoration, Defense
Appropriation, current
Outlays
XIII Olympic winter games
Outlays
051
051
051
051
1
4
Total Federal funds Operation and Maintenance...
BA
0
66,540,313
64,914,964
70,940,571
68,538,800
CO
Court of Military Appeals, Defense
Appropriation, current
2,482,872
3,273,248
CD
Claims, Defense
Appropriation, current..
1,724,032
1,982,500
* 4,008,300
2,809,100
BA
0
2,482,872
1,724,032
3,273,248
1,982,500
4,008,300
2,809,100
Procurement
Federal funds
General and Special Funds:
Aircraft procurement, Army
Appropriation, current
Outlays
Total Aircraft procurement, Army
See footnotes at end of table.
051
8-60
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Defense-Military—Con.
Procurement—Con.
Missile procurement, Army
Appropriation, current
051
B
A
Reappropriation
Outlays
BA
0
K
3,442,400
1,599,678
32,600
1,985,100
2,558,800
BA
0
2,735,800
1,599,678
2,824,100
1,985,100
3,442,400
2,558,800
Procurement of weapons and tracked combat vehicles,
Army
051
Appropriation, current
BA
4,497,346
4,514,033
Total Missile procurement, Army
Reappropriation
Outlays
K
5,092,700
BA
0
198,200
3,420,401
149,000
3,707,400
4,350,900
Total Procurement of weapons and tracked
combat vehicles, Army
BA
0
4,695,546
3,420,401
4,663,033
3,707,400
5,092,700
4,350,900
BA
2,115,394
1,939,900
0
1,966,106
1,936,300
2,494,000
2,028,300
BA
0
2,115,394
1,966,106
1,939,900
1,936,300
2,494,000
2,028,300
BA
4,005,464
4,649,928
0
2,728,531
3,338,000
6,022,400
4,036,300
BA
0
4,005,464
2,728,531
4,649,928
3,338,000
6,022,400
4,036,300
BA
10,183,452
10,164,608
0
7,489,924
9,139,300
* 11,474,200
9,735,000
BA
0
10,183,452
7,489,924
10,164,608
9,139,300
11,474,200
9,735,000
BA
3,446,000
3,691,779
2,811,977
77,800
3,188,000
3,531,200
3,446,000
2,811,977
3,769,579
3,188,000
4,650,860
3,531,200
Procurement of ammunition, Army
Appropriation, current
051
Outlays..
Total Procurement of ammunition, Army
Other procurement, Army
Appropriation, current
051
Outlays...
Total Other procurement, Army
Aircraft procurement, Navy
Appropriation, current
K
051
Outlays...
Total Aircraft procurement, Navy
Weapons procurement, Navy
Appropriation, current
K
051
"4,650,860
Reappropriation..
Outlays
Total Weapons procurement, Navy
See footnotes at end of table.
BA
0
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-61
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Defense-Military—Con.
Procurement—Con.
BA
15,924,100
11,209,400
BA
0
BA
0
211,200
7,503,719
227,600
8,794,200
9,731,800
16,135,300
7,503,719
11,437,000
8,794,200
13,141,900
9,731,800
CD
3,664,675
4,314,543
CD
3,205,792
3,388,600
* 5,953,900
4,062,400
BA
0
3,664,675
3,205,792
4,314,543
3,388,600
5,953,900
4,062,400
CD
1,960,383
1,741,306
CD
783,972
1,350,100
1,978,581
1,663,600
BA
0
1,960,383
783.972
1,741,306
1.350.100
1,978,581
1,663,600
BA
17,438,100
21,064,610
BA
0
170,000
11,798,713
323,100
13,838,900
17,960,300
BA
0
17,608,100
11,798,713
21,387,710
13,838,900
28,676,500
17,960,300
Appropriation, current
BA
4,846,600
7,756,838
Reappropriation....
Outlays
BA
0
15,000
3,382,920
55,000
5,012,600
6^300
BA
0
4,861,600
3,382,920
7,811,838
5,012,600
9,820,600
6,576,300
Appropriation, current
B
A
5,506,987
6,895,937
Reappropriation..
Outlays
CD CD
4,963
4,704,505
6,048,400
7,482,200
CD CD
051
5,511,950
4,704,505
6,895,937
6,048,400
9,561,500
7,482,200
CD CD
Shipbuilding and conversion, Navy
Appropriation, current
823,545
492,554
947,157
696,000
1,243,500
886,200
* 13,141,900
Reappropriation...
Outlays
Total Shipbuilding and conversion, Navy
Other procurement, Navy
Appropriation, current...
051
Outlays
Total Other procurement, Navy..
Procurement, Marine Corps
Appropriation, current
051
K
Outlays
Total Procurement, Marine Corps..
Aircraft procurement, Air Force
Appropriation, current
051
Reappropriation..
Outlays
Total Aircraft procurement, Air ForceMissile procurement, Air Force
K
28,676,500
051
* 9,820,600
Total Missile procurement, Air ForceOther procurement, Air Force
051
* 9,561,500
Total Other procurement, Air ForceProcurement, Defense agencies
Appropriation, current
Outlays
See footnotes at end of table.
051
8-62
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Defense-Military—Con.
Procurement—Con.
National guard and reserve equipment
Appropriation, current
Outlays
Defense production act purchases
Appropriation, current
Procurement of aircraft and missiles, Navy
Outlays
Procurement of equipment and missiles, Army
Outlays
051
BA
0
125,000
2,978
176,000
39,300
159,300
051
BA
* 25,000
051
0
5,861
0
2,011
300
BA
0
80,355,081
53,623,674
85,995,887
64,450,000
BA
3,875,283
4,259,375
0
3,658,014
4,030,500
* 4,987,100
4,579,000
3,875,283
3,658,014
4,259,375
4,030,500
4,987,100
4,579,000
7,571,718
4,000
5,000
051
Total Federal funds Procurement
107,586,341
77,575,700
Research, Development, Test, and
Evaluation
Federal funds
General and Special Funds:
Research, development,
Army
Appropriation, current
test,
and evaluation,
051
Outlays..
Total Research, development, test, and evaluation, Army
BA
0
Research, development, test, and evaluation, Navy
051
Appropriation, current
BA
6,063,331
Reappropriation
Outlays
BA
0
30,300
5,853,891
6,815,300
8,620,000
Total Research, development, test, and evaluation, Navy
BA
0
6,093,631
5,853,891
7,571,718
6,815,300
9,826,076
8,620,000
Research, development, test, and evaluation, Air
Force
051
Appropriation, current
BA
10,591,211
12,220,706
* 9,826,076
Reappropriation
Outlays
K
14,401,955
BA
0
29,970
9,181,700
11,843,300
13,578,100
Total Research, development, test, and evaluation, Air Force
BA
0
10,621,181
9,181,700
12,220,706
11,843,300
14,401,955
13,578,100
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-63
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Defense-Military—Con.
Research, Development, Test, and
Evaluation—Con.
Research, development, test, and evaluation, Defense
agencies
051
Appropriation, current
BA
2,412,100
*4,707,906
3,626,500
BA
0
2,153,189
1,817,341
2,767,420
2,412,100
4,707,906
3,626,500
55,000
49,000
0
Director of test and evaluation, Defense
Appropriation, current
1,817,341
BA
43,321
55,800
62,000
53,900
BA
0
55,000
43,321
49,000
55,800
62,000
53,900
BA
0
22,798,284
20,554,267
26,868,219
25,157,000
33,985,037
30,457,500
BA
929,720
1,184,140
0
851,229
868,100
* 1,900,000
1,130,800
BA
0
929,720
851,229
1,184,140
868,100
1,900,000
1,130,800
BA
Total Research, development, test, and evaluation, Defense agencies
2,767,420
0
Outlays
2,153,189
1,080,750
1,206,517
164,100
* 1,639,200
961,472
* 30,000
1,049,960
^5,040
1,262,290
^13,110
1,080,750
961,472
1,236,517
1,055,000
1,803,300
1,275,400
051
K
Outlays
Total Director of test and evaluation, Defense
Total Federal funds Research, Development,
Test, and Evaluation
Military Construction
Federal funds
General and Special Funds:
Military construction, Army
Appropriation, current
051
Outlays
Total Military construction, Army
Military construction, Navy
Appropriation, current
051
Outlays
0
Total Military construction, Navy
Santa Margarita water project, Navy
Appropriation, current
Outlays
See footnotes at end of table.
BA
0
051
BA
0
K
142,000
* 1,200
8-64
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Defense-Military—Con.
Military Construction—Con.
Military construction, Air Force
Appropriation, current
051
BA
1,551,414
1,410,993
* 2,165,400
0
1,465,993
1,311,400
339,770
281,802
CD
179,337
324,000
* 459,500
292,000
CO CD
339,770
179,337
281,802
324,000
459,500
292,000
50,000
240,000
* 296,700
260,000
50,000
240,000
296,700
260,000
CO
54,958
67,620
CD
44,586
45,000
* 88,900
64,000
BA
0
54,958
44,586
67,620
45,000
88,900
64,000
127,900
108,888
0
77,786
114,800
102,900
112,600
CO CD
127,900
77,786
108,888
114,800
102,900
112,600
BA
41,800
54,700
0
58,422
45,600
70,400
56,000
CD OD
Military construction, Defense agencies
Appropriation, current
1,551,414
1,086,566
BA
Total Military construction, Air Force..
1,086,566
BA
0
Outlays
55,000
1,304,230
"7,170
CO
w
41,800
58.422
54,700
45,600
70,400
56,000
1,614,570
w
24,730
2,165,400
1,639,300
051
Outlays
Total Military construction, Defense agencies
North Atlantic Treaty Organization infrastructure
OD
325,000
Outlays
CD
051
Appropriation, current
202,603
BA
0
325,000
202,603
Total North Atlantic Treaty Organization infrastructure
Military construction, Army National Guard
Appropriation, current
051
Outlays
Total Military construction, Army National Guard.
Military construction, Air National Guard
Appropriation, current
051
Outlays
Total Military construction, Air National Guard....
Military construction, Army Reserve
Appropriation, current
Outlays
Total Military construction, Army Reserve
See footnotes at end of table.
K
051
K
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-65
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Defense-Military—Con.
Military Construction—Con.
Military construction, Naval Reserve
Appropriation, current
051
BA
25,200
30,605
0
30,545
29,200
* 60,800
33,800
BA
0
25,200
30,545
30,605
29,200
60,800
33,800
BA
35,600
41,200
0
31,620
38,700
* 67,800
43,100
Total Military construction, Air Force Reserve
BA
0
35,600
31,620
41,200
38,700
67,800
43,100
Total Federal funds Military Construction
BA
0
4,512,112
3,524,166
4,521,465
4,071,800
7,157,700
4,908,200
BA
1,040,341
1,235,003
Outlays
Total Military construction, Naval Reserve
Military construction, Air Force Reserve
Appropriation, current
051
Outlays
Family Housing
Federal funds
General and Special Funds:
Family housing, Army
Appropriation, current
051
«1,405,400
c
1,327,300
1,040,341
873,774
1,238,243
1,067,900
1,405,400
1,327,300
BA
740,947
610,493
0
Total Family housing, Army
Family housing, Navy
Appropriation, current
873,774
BA
0
Outlays
1,341
" 1,899
1,067,900
051
K
704,600
c
0
Total Family housing, Navy
Family housing, Air Force
Appropriation, current
559,713
BA
0
Outlays
1,178
"592
641,500
740,947
559,713
612,263
641,500
BA
913,607
804,435
655,100
704,600
655,100
051
* 1,030,700
c
Outlays
Total Family housing, Air Force
See footnotes at end of table.
0
679,451
460
"520
850,900
BA
0
913,607
679,451
805,415
850,900
862,900
1,030,700
862,900
8-66
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Department of Defense-Military—Con.
Family Housing—Con.
Family housing, Defense agencies
Appropriation, current
051
BA
14,313
17,841
0
12,937
15,600
* 19,800
18,400
BA
0
14,313
12,937
17,841
15,600
19,800
18,400
0
-56
BA
BA
0
2,000
344
256
600
1,900
600
1,700
Total Homeowners assistance fund, Defense
BA
0
2,344
256
600
1,900
600
1,700
Total Federal funds Family Housing
BA
0
2,711,552
2,126,075
2,674,362
2,577,800
3,161,100
2,865,400
BA
3,800
3,050
0
1,578
500
* 8,650
1,500
BA
0
3,800
1,578
3,050
500
8,650
1,500
0
-3
-2
-1
0
227 .
.
Outlays..
Total Family housing, Defense agencies
Family housing, Defense
Outlays
051
Public Enterprise Funds:
Homeowners assistance fund, Defense
Appropriation, current
Authority to borrow, permanent
Outlays
051
Special Foreign Currency Program
Federal funds
General and Special Funds:
Special foreign currency program
Appropriation, current
051
Outlays....
Total Special foreign currency program
Revolving and Management Funds
Federal funds
Public Enterprise Funds:
Defense production guarantees
Outlays
Laundry service, Naval Academy
Outlays
051
051
Intragovernmental Funds:
Army stock fund
Appropriation, current
Contract authority, permanent, indefinite
Outlays
Total Army stock fund
See footnotes at end of table.
051
BA
BA
0
221,138
165,265
207,664
388,600
366,448
267,100
290,000
BA
0
386,403
207,664
388,600
267,100
366,448
290,000
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-67
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Department of Defense-Military—Con.
Revolving and Management Funds—Con.
Navy stock fund
Appropriation, current
Contract authority, permanent, indefinite
Outlays
051
BA
BA
0
Total Navy stock fund
354,372
344
597,261
632,869
563,907
510,800
452^600
Marine Corps stock fund
Appropriation, current
Outlays
Air Force stock fund
Appropriation, current
Outlays
Defense stock fund
Appropriation, current
Outlays
Army industrial fund
Outlays
Navy industrial fund
Outlays
Marine Corps industrial fund
Outlays
Air Force industrial fund
Outlays
Defense industrial fund
Appropriation, current
Outlays
Army management fund
Outlays
Navy management fund
Outlays
Air Force management fund
Outlays
Army conventional ammunition
fund
Outlays
BA
354,716
632,869
0
597,261
510,800
563,907
452,600
BA
0
11,812
-2,146
20,780
34,200
34,908
18,000
BA
0
161,600
194,465
1,288,725
827,700
666,093
835,800
BA
0
160,500
-1,250,068
43,600
530,300
130,700
0
-111,939
102,000
0
-35,173
-165,200
0
2,843
5,000
0
-306,256
134,502
BA
0
-1,226
150,000
6,000
0
-5,783
0
16,119
051
051
051
251,100
051
56,000
051
120,200
051
051
-105,799
051
051
051
051
0
working
105
capital
051
-110,889
-85,800
-63,900
BA
1,075,031
2,524,574
0
-804,799
2,166,600
1,762,056
1,859,400
0
Total Federal funds Revolving and Management
Funds
Allowances
Federal funds
General and Special Funds:
Civilian pay raises
Appropriation, current
Outlays
Military pay raises and benefits
Appropriation, current
Outlays
See footnotes at end of table.
051
1
BA
0
620,118
609,600
1
051
BA
0
1
2,466,636
'2,421,200
8-68
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Defense-Military—Con.
Allowances—Con.
Other legislation
Appropriation, current
Outlays
051
J
BA
0
Total Federal funds Allowances
167,620
^167,600
BA
3,254,374
0
3,198,400
Trust Funds
Trust funds
Department of the Army trust funds
051
Appropriation, permanent, indefinite
Outlays
Department of the Navy trust funds
051
Appropriation, permanent, indefinite
Outlays
Department of the Air Force general gift fund 051
Appropriation, permanent, indefinite
Outlays
Surcharge collections, sales of commissary stores,
Army
051
Outlays
Department of the Navy trust revolving funds
051
Outlays
Department of the Air Force trust revolving funds
051
Outlays
Total Trust funds Trust Funds
BA
0
BA
0
0
0
0
BA
Deductions for offsetting receipts:
Intrafund transactions
Proprietary receipts from the public
Total Federal funds
BA
0
105
95
23,985
22,632
BA
0
0
Summary
Federal funds:
(As shown in detail above)
107
214
23,335
23,265
60
18
-13,573
60
40
120
110
24,420
24,240
60
50
-11,300
-11,500
6,200
13,300
1,000
7,200
-887
-15,386
24,152
23,500
24,600
-6,982
19,300
33,400
239,838,681
205,408,024
258,653,809
231,507,100
305,673,900
265,065,100
051 BA
0
051 BA
n
9
Trust funds:
(As shown in detail above)
BA
239,472,654
258,149,809
304,998,900
0
205,041,997
231,003,100
264,390,100
24,152
23,500
24,600
-6,982
19,300
33,400
BA
0
interfund transactions
Total Department of Defense-Military
051 BA
^
_
n m
^
See footnotes at end of table.
BA
239,473,762
258,150,909
305,000,000
0
205,011,971
231,000,000
264,400,000
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-69
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Defense-Civil
Cemeterial Expenses, Army
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
705
BA
0
BA
0
6,032
6,682
6,032
BA
139,042
0
Outlays
Total Salaries and expenses
6,682
8,203
C
71
"28
8,135
8,302
8,135
7,759
7,540
7,759
7,540
Corps of Engineers-Civil
Federal funds
General and Special Funds:
General investigations
Appropriation, current
301
Construction, general
Appropriation, current
139,042
138,029
135,810
133,000
118,000
118,000
1,508,405
1,258,237
894,104
>-4,800
1,150,000
874,000
0
922,000
BA
0
1,508,405
1,258,237
889,304
1,150,000
874,000
922,000
BA
0
1,201,367
1,098,003
1,184,492
1,264,149
1,282,000
1,305,000
BA
0
4,942
4,837
BA
0
1,206,309
1,102,840
1,190,492
1,271,000
1,297,000
1,320,000
BA
0
54,877
45,685
10,000
25,000
10,000
10,000
BA
100,100
103,723
103,000
''2,800
106,000
113,000
0
Total Construction, general
301
303
Total Operation and maintenance, general
Flood control and coastal emergencies
Appropriation, current
Outlays
General expenses
Appropriation, current
118,000
301
Outlays
Operation and maintenance, general:
(Water resources)
(Appropriation, current)
(Outlays)
(Recreational resources)
(Appropriation, current)
(Outlays)
118,000
BA
Total General investigations
138,029
BA
0
Outlays
133,810
G
2,000
133,000
6,000
6,851
15,000
15,000
301
301
Outlays
Total General expenses
113,000
Flood control, Mississippi River and tributaries
Appropriation, current
Outlays
See footnotes at end of table.
BA
100,100
105,800
113,000
0
103,723
106,000
113,000
BA
0
403,052
284,201
300,480
350,000
304,000
360,000
301
8-70
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1985
estimate
1984
estimate
Department of Defense-Civil—Con.
Corps of Engineers-Civil—Con.
Permanent appropriations.(Water resources)
(Appropriation, permanent, indefinite)
(Outlays)
(Other general purpose fiscal assistance)
(Appropriation, permanent, indefinite)
(Outlays)
301
BA
0
3,635
5,896
2,000
3,094
2,100
2,300
BA
0
5,889
6,326
5,700
5,906
5,900
5,700
BA
0
9,524
12,222
7,700
9,000
8,000
8,000
0
-13,972
9,500
8,000
2,000
BA
0
43,700
45,387
51,000
51,000
52,000
52,000
BA
0
3,421,309
2,930,965
2,649,086
3,052,000
2,724,000
2,853,000
-5,989
-5,800
852
Total Permanent appropriations
Intragovernmental Funds:
Revolving fund
Appropriation, currentOutlays
Trust funds
Rivers and harbors contributed funds
Appropriation, permanent, indefinite
Outlays
301
301
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
301 BA
0
BA
0
303 BA
0
BA
0
See footnotes at end of table.
J
-8,842
-10,000
'-16,000
-200,000
-11,000
J
-16,000
BA
0
3,406,478
2,916,134
2,617,286
3,020,200
2,491,000
2,620,000
BA
0
43,700
45,387
51,000
51,000
52,000
52,000
301 BA
0
Total Trust funds
Total Corps of Engineers-Civil
-6,000
-43,700
-51,000
-52,000
1,687
BA
0
3,406,478
2,917,821
2,617,286
3,020,200
2,491,000
2,620,000
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-71
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Defense-Civil—Con.
Military Retirement
Federal funds
General and Special Funds:
Payment to military retirement fund
Appropriation, current, indefinite
Appropriation, permanent, indefinite
Outlays
054
BA
BA
0
BA
0
Trust funds
Military retirement fund
Appropriation, current, indefinite
Appropriation, permanent, indefinite
Outlays
J
48,600
27,275,771
17,623,600
J
-298,100
BA
0
27,324,371
17,325,500
BA
0
8,948,600
8,948,600
BA
0
27,324,371
17,325,500
602
Total Military retirement fund
Summary
Federal funds:
(As shown in detail above)
Trust funds:
(As shown in detail above)
Interfund transactions
8,948,600
8,948,600
BA
BA
0
Total Payment to military retirement fund
J
48,600
8,900,000
8,900,000
J
48,600
054 BA
0
BA
0
Total Military Retirement
-8,900,000
J
BA
0
-48,600
27,324,371
17,325,500
Soldiers' and Airmen's Home
Trust funds
Operation and maintenance
Appropriation, current
705
27,059
30,924
C
78
32,352
26,983
30,796
32,217
27,059
26,983
31,286
30,796
32,352
32,217
BA
0
4,550
4,125
5,000
4,782
BA
0
5
5
5
5
BA
Outlays..
Total Operation and maintenance
Capital outlays
Appropriation, current
Outlays
Payment of claims
Appropriation, permanent, indefinite
Outlays
See footnotes at end ot table.
420-000 0 - 84 - 27 : QL 3
BA
0
705
705
8-72
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Defense-Civil—Con.
Soldiers' and Airmen's Home—Con.
Soldiers' and Airmen's Home revolving fund
Outlays
705
0
Summary
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
BA
0
705 BA
Total Soldiers' and Airmen's Home
- 7
27,059
26,978
35,841
34,926
37,357
37,004
.7K
0Q
Q..
BA
22,772
31,126
32,442
0
22,691
30,211
32,089
Wildlife Conservation, Military Reservations
Federal funds
General and Special Funds:
Wildlife conservation
Appropriation, permanent, indefinite
303
BA
Deductions for offsetting receipts-.
Proprietary receipts from the public
1,583
1,679
1,151
1,638
1,769
BA
0
Summary
Federal funds:
(As shown in detail above)
1,435
0
Outlays
1,435
1,151
1,583
1,638
1,679
1,769
303 BA
Q
Total Wildlife Conservation, Military Reservations
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts.Proprietary receipts from the public
0
BA
0
301 BA
coo
1C7Q
—l,OoJ
—1,4JO
—1,0/J
-284
55
3,429,426
2,938,148
2,658,971
3,061,773
_ ^
QA
_
J
-10,277
-16,000
m
-200,000
-11,583
J
f
Total Federal funds
11,682,038
11,810,909
_5m
QA
303
90
-12,679
J
-16,000
See footnotes at end of table.
3,413,160
2,625,588
11,447,359
2,921,882
3,028,390
11,576,230
BA
70,759
86,841
27,413,728
0
Trust funds:
(As shown in detail above)
BA
0
72,365
85,926
17,414,504
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-73
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Defense-Civil—Con.
Summary—Con.
Deductions for offsetting receipts.Proprietary receipts from the public
301 BA
75 A
0
J
Total Trust funds
BA
0
-4,287
-4,715
22,772
24,378
31,126
30,211
054 BA
Interfund transactions
-4,915
27,356,813
17,357,589
-8,900,000
J
Total Department of Defense-Civil
BA
0
3,435,932
2,946,260
-48,600
2,656,714
3,058,601
29,855,572
19,985,219
Department of Education
Office of Elementary and Secondary
Education
Federal funds
General and Special Funds:
Compensatory education for the disadvantaged
Appropriation, current
Outlays
Impact aid
Appropriation, current
Outlays
Special programs
Appropriation, current
501
BA
0
3,207,894
2,645,688
3,487,500
3,376,302
3,480,000
3,423,823
BA
0
540,200
548,205
585,000
613,209
506,630
572,089
BA
534,500
527,867
50,000
550,160
'5,500
728,879
50,000
552,169
' 40,000
778,879
592,169
501
501
J
Outlays
0
Total Indian education
Total Federal funds Office of Elementary and
Secondary Education
534,500
552,590
577,867
555,660
BA
69,185
68,780
0
69,603
72,546
* 68,780
69,302
BA
0
69,185
69,603
68,780
72,546
68,780
69,302
BA
0
4,351,779
3,816,086
4,719,147
4,617,717
4,834,289
4,657,383
501
Outlays
See footnotes at end of table.
552,590
BA
0
Total Special programs
Indian education
Appropriation, current
7
8-74
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Education—Con.
Office of Bilingual Education and Minority
Languages Affairs
Federal funds
General and Special Funds:
Bilingual education
Appropriation, current
501
BA
138,057
169,365
J
0
Total Bilingual education
163,268
143,060
139,245
132,759
J
5,422
BA
0
Outlays
138,057
163,268
169,365
143,060
139,245
138,181
1,199,402
1,289,710
1,239,445
1,108,239
1,214,445
1,175,724
1,045,347
1,121,400
948,650
1,206,548
1,004,400
"87,260
1,090,567
BA
0
1,045,347
948,650
1,121,400
1,206,548
1,091,660
1,090,567
BA
0
2,244,749
2,238,360
2,360,845
2,314,787
2,306,105
2,266,291
BA
816,500
831,314
Office of Special Education and
Rehabilitative Services
Federal funds
General and Special Funds:
Education for the handicapped
501
Appropriation, current
BA
Outlays
0
Rehabilitation services and handicapped research
506
Appropriation, current
BA
Outlays
0
Total Rehabilitation services and handicapped
research
Total Federal funds Office of Special Education
and Rehabilitative Services
Office of Vocational and Adult Education
Federal funds
General and Special Funds:
Vocational and adult education
Appropriation, current
Appropriation, permanent
Outlays
Total Vocational and adult education
See footnotes at end of table.
501
BA
0
7,161
717,569
7,161
790,050
BA
0
823,661
717,569
838,475
790,050
* 100,000
J
731,314
7,161
863,395
J
14,627
838,475
878,022
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-75
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
3,654,000
3,654,000
3,864,374
Department of Education—Con.
Office of Postsecondary Education
Federal funds
General and Special Funds:
Student financial assistance
Appropriation, current
502
BA
0
Guaranteed student loans
Appropriation, current
3,986,860
4,097,716
3,100,500
2,256,500
0
2,555,539
BA
0
3,100,500
2,555,539
2,256,500
2,961,804
B
A
421,841
418,866
*-10,000
3,855,174
^ 9,200
502
Outlays
Total Guaranteed student loans
Higher education
Appropriation, current..
3,617,800
4,043,597
BA
Total Student financial assistance
4,043,597
3,976,860
A
10,000
4,097,216
*500
BA
0
Outlays
3,617,800
2,974,769
-12,965
L
L
L
3,079,459
-238,782
2,913,045
-166,121
2,840,677
2,746,924
502
2,800
335
117,655
y
134,416
Appropriation, permanent
Reappropriation
BA
BA
Outlays
0
364,422
A
1,920
453,378
A
-1,124
BA
0
424,976
364,422
410,786
452,254
252,071
399,551
BA
BA
0
20,143
134
21,148
19,846
14,194
6,119
2,452
Total Higher education facilities loans and insurance
BA
0
20,277
21,148
19,846
6,119
14,194
2,452
BA
0
40
-16,510
-35,152
BA
0
40
-16,510
-35,152
-69,389
Total Federal funds Office of Postsecondary Education
BA
0
7,163,593
6,968,196
6,673,992
7,482,741
6,760,942
6,943,912
Total Higher education
Higher education facilities loans and insurance
Appropriation, current
Appropriation, permanent, indefinite
Outlays
400,860
^ —12,062
J
10,753
502
Public Enterprise Funds:
College housing loans
Appropriation, permanent, indefinite
Outlays
Total College housing loans
See footnotes at end ot table
502
-62,389
-7,000
A
8-76
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Education—Con.
Office of Educational Research and
Improvement
Federal funds
General and Special Funds:
Educational research and statistics
Appropriation, current
Outlays
Libraries
Appropriation, current
Outlays
503
BA
0
64,203
59,580
56,978
81,850
62,978
60,603
BA
0
130,320
124,451
86,880
88,266
90,034
Total Federal funds Office of Educational Research and Improvement
BA
0
194,523
184,031
143,858
170,116
62,978
150,637
23,090
23,090
24,256
24,997
23,090
-9,855
23,711
'-9,263
23,090
24,256
23,090
24,997
13,235
14,448
BA
0
205,410
224,820
209,110
227,081
228,230
230,766
BA
0
228,500
249,076
232,200
252,078
241,465
245,214
503
Special Institutions
Federal funds
General and Special Funds:
Payments to special institutions:
(Elementary, secondary, and vocational education)
501
(Appropriation, current)
BA
(Outlays)
0
Total (Elementary, secondary, and vocational
education)
BA
0
(Higher education)
(Appropriation, current)
(Outlays)
502
Total Payments to special institutions
Trust funds
Promotion of education for the blind
Appropriation, current
Appropriation, permanent
Outlays
J
501
y
BA
BA
0
10
10
Total Promotion of education for the blind
BA
0
10
10
Total Federal funds Special Institutions
BA
0
Total Trust funds Special Institutions
BA
0
See footnotes at end of table.
228,500
249,076
232,200
252,078
10
10
-10
10
10
y
-10
241,465
245,214
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-77
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Education—Con.
Departmental Management
Federal funds
General and Special Funds:
Salaries and expenses:
(Elementary, secondary and vocational education)
501
(Appropriation, current)
BA
(Outlays)
0
(Higher education)
502
(Appropriation, current)
BA
(Outlays)
0
(Research and general education aids)
503
(Appropriation, current)
BA
(Outlays)
0
19,594
16,974
18,306
21,473
18,013
18,102
72,434
66,191
77,419
86,433
79,763
79,552
111,018
90,079
115,656
141,016
A
2,206
127,413
125,836
BA
0
111,018
90,079
115,656
143,222
127,413
125,836
BA
0
18,954
16,268
18,619
21,212
18,316
18,396
BA
0
57,708
58,454
62,385
60,401
* 1,511
57,945
58,797
*206
Total (Federal law enforcement activities)
BA
0
57,708
58,454
62,385
61,912
57,945
59,003
Total Salaries and expenses..
BA
0
279,708
247,966
292,385
334,252
301,450
300,889
Education and research overseas.(Special foreign currency program) (Research and
general education aids)
503
BA
(Appropriation, current)
BA
(Outlays)
0
(Special foreign currency program) (Social services)
506
(Outlays)
0
516
853
1,133
1,002
1,232
390
1,610
2,217
BA
0
516
1,243
1,133
2,612
"£449
BA
0
29
30
24
149
30
Total Federal funds Departmental Management... BA
0
280,224
249,209
293,518
336,864
301,450
304,338
29
30
24
149
30
Total (Research and general education aids)
(Social services)
(Appropriation, current)
(Outlays)
(Federal law enforcement activities)
(Appropriation, current)
(Outlays)
506
751
Total Education and research overseas
Trust funds
Contributions
Appropriation, permanent, indefinite
Outlays
503
Total Trust funds Departmental Management
See footnotes at end of table.
BA
0
8-78
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Education—Con.
Summary
Federal funds:
(As shown in detail above)
BA
0
Deductions for offsetting receipts:
Proprietary receipts from the public
502 BA
Total Federal funds
BA
0
Trust funds:
(As shown in detail above)
15,425,086
14,585,795
15,431,400
16,107,413
-27877
-33621
15,397,209
14,557,918
15,397,779
16,073,792
BA
0
Deductions for offsetting receipts-.
Proprietary receipts from the public
29
30
908 BA
34
159
30
in
—1U
^
BA
0
BA
0
15,417,655
15,516,684
1A
T
Total Department of Education
-67294
—JO
n
Total Trust funds
15,484,949
15,583,978
29
30
15,397,238
14,557,948
24
149
30
15,397,803
16,073,941
15,417,655
15,516,714
6,554,875
A
157,600
5,875,550
M26.00G
7,805,825
Department of Energy
Atomic Energy Defense Activities
Federal funds
General and Special Funds:
Atomic energy defense activities
Appropriation, current
053
BA
0
5,718,300
5,171,202
6,712,475
6,001,550
7,805,825
7,133,084
BA
0
Total Atomic energy defense activities
5,171,202
BA
0
Outlays..
5,718,300
534,467
588,921
638,250
621,450
746,105
684,316
BA
BA
0
2,435,472
1,999,609
2,275,666
2,113,900
2,037,181
2,102,039
BA
0
2,435,472
2,275,666
1,999,609
2,113,900
2,037,181
2,102,039
7,101,484
A
31,600
Energy Programs
Federal funds
General and Special Funds:
General science and research activities
Appropriation, current
Outlays
Energy supply, R&D activities
Appropriation, current
Indefinite
Outlays
Total Energy supply, R&D activities
See footnotes at end of table
251
271
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-79
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Energy—Con.
Energy Programs—Con.
Uranium supply and enrichment activities
Appropriation, current, indefinite
Outlays
Fossil energy research and development
Appropriation, current
Indefinite
Appropriation, permanent
Outlays
271
BA
0
2,195,000
2,147,000
BA
BA
BA
0
217,094
260,214
402,841
333,850
187,731
15,000
280,474
BA
0
217,094
402,841
260,214
333,850
202,731
280,474
BA
0
222,000
228,002
256,600
224,076
223,804
233,354
BA
429,128
431,131
31,300
271
Total Fossil energy research and development
Naval petroleum and oil shale reserves
Appropriation, current
Outlays
Energy conservation:
(Energy conservation)
(Appropriation, current)
1,834,100
1,645,513
271
272
J
238,000
144,077
(Indefinite)
BA
(Outlays)
0
476,267
459,367
308,910
'71,000
Total (Energy conservation)
BA
0
429,128
476,267
431,131
459,367
382,077
379,910
BA
BA
0
242,118
158,770
214,794
203,101
447,190
356,989
BA
0
242,118
214,794
158,770
203,101
447,190
356,989
BA
58,582
57,863
O
67,916
55,870
D
521
58,732
BA
0
58,582
67,916
56,391
58,732
57,863
61,889
Appropriation, current
BA
35,666
27,157
Outlays
0
44,188
30,330
* 3,000
"575
32,873
^2,567
BA
0
35,666
44,188
33,905
35,440
27,157
30,508
Strategic petroleum reserve
Appropriation, current
Indefinite
Outlays
274
Total Strategic petroleum reserve
Energy information administration
Appropriation, current
276
Outlays
Total Energy information administration
61,889
Emergency preparedness and energy regulation
276
Total Emergency preparedness and energy regulation
See footnotes at end of table.
30,075
M33
8-80
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Department of Energy—Con.
Energy Programs—Con.
Federal Energy Regulatory Commission
Appropriation, current
Indefinite
Outlays
276
BA
BA
0
Geothermal resources development fund
Appropriation, current
Outlays
Alternative fuels production
Outlays
Payments to states under Federal Power Act
Appropriation, permanent, indefinite
Outlays
Nuclear waste disposal fund
Appropriation, current
Outlays
"1,731
89,582
90,045
40,677
39,467
BA
0
79,665
77,879
91,313
90,045
40,677
39,467
BA
0
190
2,460
2,100
1,790
121
685
0
8,721
5,000
2,847
BA
0
164
1,045
570
164
570
570
BA
0
Total Federal Energy Regulatory Commission
79,665
77,879
160,121
318,675
283,616
327,669
350,069
271
271
852
Trust funds
Advances for cooperative work
Appropriation, permanent, indefinite
Outlays
Total Federal funds Energy Programs
271
271
BA
0
BA
0
2,580
-21,672
32,205
58,008
18,460
23,940
6,088,646
6,194,334
6,442,528
6,577,531
4,493,145
4,554,417
BA
0
2,580
-21,672
32,205
58,008
18,460
23,940
Operation and maintenance, Alaska Power Administration
271
Appropriation, current
BA
Outlays
0
3,945
3,217
3,410
4,050
3,233
3,233
BA
BA
0
223,800
159,927
125,501
123,400
283,285
19,585
298,730
-104,500
BA
0
383,727
125,501
406,685
19,585
298,730
-104,500
Operation and maintenance, Southeastern Power Administration
271
Appropriation, current
BA
Outlays
0
3,964
5,902
20,594
19,566
35,744
34,480
Total Trust funds Energy Programs
Power Marketing Administration
Federal funds
Genera! and Special Funds:
Public Enterprise Funds:
Bonneville Power Administration fund
Authority to borrow, current
Authority to borrow, permanent, indefinite
Outlays
Total Bonneville Power Administration fund
271
General and Special Funds:
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-81
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Energy—Con.
Power Marketing Administration—Con.
Operation and maintenance, Southwestern Power Administration
271
Appropriation, current
BA
Outlays
0
Construction, rehabilitation, operation and maintenance, Western Area Power Administration
20,756
24,135
36,229
39,240
29,208
36,268
179,750
125,021
194,630
286,353
248,230
278,230
271
Appropriation, current
Outlays
Emergency fund, Western Area Power Administration
271
Appropriation, current
Outlays
BA
0
BA
0
337
327
500
665
Public Enterprise Funds:
Colorado river basins power marketing fund, Western
Area Power Administration
271
Outlays
0
-38,439
-5,000
-5,000
Total Federal funds Power Marketing Administration
BA
592,479
662,048
615,145
0
245,664
364,459
242,711
BA
0
378,822
320,028
366,056
354,925
138,575
172,003
Departmental Administration
Federal funds
General and Special Funds:
Departmental administration
Appropriation, current, indefinite
Outlays
Special foreign currency program
Outlays
276
271
0
Total Federal funds Departmental Administration.
-143
BA
378,822
366,056
138,575
0
319,885
354,925
172,003
12,778,247
11,931,085
14,183,107
13,298,465
13,052,690
12,102,215
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
Proprietary receipts from the public
BA
0
908 BA
271 BA
276
-254,719
QA
-20,482
-22,242
BA
9,259,690
9,706,806
10,806,942
0
See footnotes at end of table.
-146,287
301
Total Federal funds
QA
8,412,528
8,822,164
9,856,467
-20,785
8-82
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Energy—Con.
Summary—Con.
Trust funds:
(As shown in detail above)
BA
0
32,205
58,008
18,460
23,940
0
-24,252
25,803
5,480
BA
9,259,690
9,706,806
10,806,942
0
Deductions for offsetting receipts:
Proprietary receipts from the public
2,580
-21,672
8,388,276
8,847,967
9,861,947
271 BA
Total Trust funds
Total Department of Energy
Department of Health and Human Services
Health Programs
Public Health Service
Food and Drug Administration
Federal funds
General and Special Funds:
Program expenses
Appropriation, current
554
BA
Buildings and facilities
Appropriation, current
394,004
359,680
130
D
6,348
381,218
390,042
BA
350,844
389,052
394,004
0
Total Program expenses
382,574
0
Outlays
350,844
359,680
381,218
390,042
c
554
875
4,875
0
BA
Outlays
3,812
14,481
13,871
0
131
Public Enterprise Funds:
Revolving fund for certification and other services
554
Outlays
Total Federal funds Food and Drug Administration
See footnotes at end of table.
BA
351,719
393,927
394,004
0
363,623
395,699
403,913
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-83
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Health and Human Services—Con.
Health Programs—Con.
Public Health Sen/ice—Con.
Health Resources and Services
A dministratson
Federal funds
General and Special Funds:
Health resources and services:
(Health care services)
(Appropriation, current)
551
BA
Total (Health care services)
1,172,140
0
(Outlays)
1,266,579
1,174,389
1,182,127
60,512
* 67,174
L
-2,772
743,895
L
-2,772
BA
Indian health
Appropriation, current
741,123
BA
243,036
208,011
330,608
204,792
19,317
* 101,188
175,098
BA
243,036
208,011
120,505
330,608
204,792
175,098
BA
1,509,615
1,380,151
245,419
0
Total Health resources and services
124,914
1,182,127
0
(Outlays)
Total (Education and training of health care
work force)
,
1,172,140
1,174,389
0
(Education and training of health care work
force)
553
(Appropriation, current)
1,266,579
0
1,504,997
1,386,919
916,221
679,216
770,408
551
BA
667,408
74,632
K
L
-%
Outlays
0
625,921
760,441
744,684
^-90
Total Indian health
Indian health facilities
Appropriation, current
Outlays
BA
679,216
770,408
741,950
0
625,921
760,441
744,594
73,700
66,069
53,595
78,850
60,135
0
-2,107
-3,545
-5,144
0
-2,947
551
BA
0
Public Enterprise Funds:
Health professions graduate student loan insurance
fund
553
Outlays
Health education loans
553
Outlays
Nurse training fund
553
Outlays
Medical facilities guarantee and loan fund
551
Appropriation, current
Outlays
See footnotes at end of table.
-528
-28
0
-742
-465
-465
BA
0
32,000
28,682
32,000
31,085
26,500
31,083
8-84
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Health and Human Services—Con.
Health Programs—Con.
Public Health Service—Con.
Health Resources and Services
A dministration—Con.
Health maintenance organization loan and loan guarantee fund
551
Appropriation, current
Outlays
2,650
18,621
2,129
-884
BA
2,297,181
2,236,154
1,013,869
0
2,238,494
2,254,886
1,745,512
BA
294,592
309,624
0
300,839
308,485
144,016
* 79,903
268,452
BA
294,592
309,624
223,919
0
300,839
308,485
268,452
BA
0
Total Federal funds Health Resources and Services Administration
BA
0
57,484
60,751
64,880
59,255
56,445
63,103
Centers for Disease Control
Federal funds
General and Special Funds:
Disease control:
(Health care services)
(Appropriation, current)
551
(Outlays)
Total (Health care services)
(Health research)
(Appropriation, current)
(Outlays)
552
Total Disease control
BA
Total Federal funds Centers for Disease Control..
352,076
374,504
280,364
0
361,590
367,740
331,555
BA
352,076
374,504
280,364
0
361,590
367,740
331,555
BA
962,632
1,052,365
1,076,697
0
925,950
1,001,582
1,057,020
BA
0
25,010
22,895
24,938
24,515
24,372
24,020
National Institutes of Health
Federal funds
General and Special Funds:
National Cancer Institute:
(Health research)
(Appropriation, current)
552
(Outlays)
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
Total National Cancer Institute
National Heart, Lung and Blood Institute:
(Health research)
(Appropriation, current)
(Outlays)
See footnotes at end of table.
BA
987,642
1,077,303
1,101,069
0
948,845
1,026,097
1,081,040
BA
0
595,963
551,367
672,824
626,954
689,017
677,534
552
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-85
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Health and Human Services—Con.
Health Programs—Con.
Public Health Service—Con.
National Institutes of Health—Con.
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
28,296
26,179
30,373
28,302
BA
624,259
703,197
718,852
0
Total National Heart, Lung and Blood Institute....
BA
0
577,546
655,256
706,872
75,117
66,764
83,962
79,747
86,871
85,374
National Institute of Dental Research:
(Health research)
552
(Appropriation, current)
BA
(Outlays)
0
(Education and training of health care work
force)
553
(Appropriation, current)
BA
(Outlays)
Total National Institute of Dental Research
0
29,835
29,338
4,175
4,201
4,225
3,711
3,990
4,152
National Institute of Arthritis, Diabetes, and Digestive
and Kidney Diseases:
(Health research)
552
(Appropriation, current)
(Outlays)
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
Total National Institute of Arthritis, Diabetes,
and Digestive and Kidney Diseases
National Institute of Neurological and Communicative
Disorders and Stroke:
(Health research)
552
(Appropriation, current)
(Outlays)
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
Total National Institute of Neurological and Communicative Disorders and Stroke
National Institute of Allergy and Infectious Diseases.(Health research)
552
(Appropriation, current)
(Outlays)
See footnotes at end of table.
BA
79,292
88,163
91,096
0
70,475
83,737
89,526
BA
393,588
442,717
455,487
0
361,549
413,368
446,997
BA
19,904
19,861
19,837
0
18,918
19,877
19,837
BA
0
413,492
380,467
462,578
433,245
475,324
466,834
BA
286,749
324,875
334,447
0
257,648
297,200
327,397
10,315
10,330
10,154
9,082
10,353
10,345
BA
0
297,064
266,730
335,205
307,553
344,601
337,742
BA
0
270,268
236,676
305,211
285,203
316,231
309,282
BA
0
8-86
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Health and Human Services—Con.
Health Programs—Con.
Public Health Service—Con.
National Institutes of Health—Con.
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
Total National Institute of Allergy and Infectious
Diseases
BA
0
8,861
7,760
8,906
8,322
9,148
8,947
National Institute of General Medical Sciences:
(Health research)
552
(Appropriation, current)
(Outlays)
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
Total National Institute of General Medical Sciences
BA
279,129
314,117
325,379
0
244,436
293,525
318,229
BA
0
319,403
313,992
365,282
339,347
373,907
369,305
BA
0
50,410
49,553
50,362
46,786
49,946
49,327
National Institute of Child Health and Human Development:
(Health research)
552
(Appropriation, current)
(Outlays)
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
Total National Institute of Child Health and
Human Development
BA
369,813
415,644
423,853
0
363,545
386,133
418,632
BA
0
243,339
218,419
264,199
247,148
269,561
266,273
BA
0
10,985
9,350
10,980
10,435
10,617
10,430
National Eye Institute:
(Health research)
(Appropriation, current)
BA
254,324
275,179
280,178
0
227,769
257,583
276,703
BA
137,781
150,553
154,092
0
123,494
141,918
152,152
552
(Outlays)
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
Total National Eye Institute
BA
0
4,120
3,535
4,130
3,545
3,781
3,250
National Institute of Environmental Health Sciences:
(Health research)
552
(Appropriation, current)
(Outlays)
See footnotes at end of table
BA
141,901
154,683
157,873
0
127,029
145,463
155,402
BA
157,831
172,771
177,613
0
146,989
163,466
174,973
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-87
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Health and Human Services—Con.
Health Programs—Con.
Public Health Service—Con.
National Institutes of Health—Con.
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
BA
0
7,036
6,562
7,035
6,656
6,142
5F971
164,867
153,551
179,806
170,122
183,755
180,944
91,268
79,933
112,190
97,330
114,244
108,911
Total National Institute of Environmental Health
Sciences
BA
0
National Institute on Aging:
(Health research)
552
(Appropriation, current)
BA
(Outlays)
0
(Education and training of health care work
force)
553
(Appropriation, current)
BA
(Outlays)
0
Total National Institute on Aging
Total Research resources
114,921
99,937
117,390
111,910
BA
0
213,185
217,969
241,906
228,251
244,950
243,030
BA
0
BA
0
732
748
730
689
778
772
213,917
218,717
242,636
228,940
245,728
243,802
10,147
8,799
11,336
10,102
11,426
10,986
16,426
13,580
14,135
15,450
14,821
15,200
35,517
31,319
35,478
36,960
36,499
36,750
BA
0
Total National Library of Medicine
420-000 O - 84 - 28 : QL 3
3,146
2,999
93,996
82,537
51,943
44,899
49,613
52,410
51,320
51,950
BA
0
22,708
23,240
24,582
24,695
25,308
25,178
John E. Fogarty International Center
552
Appropriation, current
BA
Outlays
0
National Library of Medicine:
(Health research)
552
(Appropriation, current)
BA
(Outlays)
0
(Education and training of health care work
force)
553
(Appropriation, current)
BA
(Outlays)
0
See footnotes at end of table.
2,731
2,607
BA
0
Research resources:
(Health research)
552
(Appropriation, current)
(Outlays)
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
Office of the Director:
(Health research)
(Appropriation, current)
(Outlays)
2,728
2,604
552
8-88
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Health and Human Services—Con.
Health Programs—Con.
Public Health Service—Con.
National Institutes of Health—Con.
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
Total Office of the Director
Buildings and facilities
Appropriation, current
Outlays
BA
0
1,975
2,020
2,138
2,147
2,201
2,189
BA
0
24,683
25,260
26,720
26,842
27,509
27,367
BA
0
17,500
15,568
25,040
15,722
11,100
26,014
552
Intragovernmental Funds:
National Institutes of Health management fund
552
Outlays
Service and supply fund
Outlays
0
-5,855
552
0
Total Federal funds National Institutes of Health.
-669
BA
4,023,969
4,476,141
4,566,453
0
3,749,649
4,192,667
4,503,953
Alcohol, Drug Abuse, and Mental Health
Administration
Federal funds
General and Special Funds:
Alcohol, drug abuse, and mental health-.
(Health care services)
(Appropriation, current)
551
BA
468,000
462,000
0
506,177
472,024
115,500
BA
303,414
346,157
(Outlays)
0
289,820
297,565
243,970
* 111,348
339,063
Total (Health research)
BA
0
303,414
289,820
346,157
297,565
355,318
339,063
(Outlays)
(Health research)
(Appropriation, current)
552
(Education and training of health care work
force)
553
(Appropriation, current)
BA
37,930
38,049
17,337
(Outlays)
0
59,380
36,101
32,674
Total Alcohol, drug abuse, and mental health
BA
0
809,344
855,377
846,206
805,690
372,655
487,237
BA
76,505
67,744
48,595
0
79,169
71,153
50,936
Federal subsidy for Saint Elizabeths Hospital
Appropriation, current
Outlays
See footnotes at end of table.
551
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-89
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Health and Human Services—Con.
Health Programs—Con.
Public Health Service—Con.
Alcohol, Drug Abuse, and Mental
Health Administration—Con.
Construction and renovation, Saint Elizabeths Hospital
551
Outlays
10,841
9,710
9,078
BA
0
885,849
945,387
913,950
886,553
421,250
547,251
BA
36,037
41,802
(Outlays)
0
51,179
42,266
30,330
* 22,937
52,877
Total (Health care services)
BA
0
36,037
51,179
41,802
42,266
53,267
52,877
BA
57,082
63,770
(Outlays)
0
45,661
66,269
5,448
* 53,598
62,599
Total (Health research)
BA
0
57,082
45,661
63,770
66,269
59,046
62,599
Total Public health service management
BA
0
93,119
96,840
105,572
108,535
112,313
115,476
Total Federal funds Alcohol, Drug Abuse,
Mental Health Administration
and
Office of Assistant Secretary for Health
Federal funds
General and Special Funds:
Public health service management:
(Health care services)
(Appropriation current)
552
(Health research)
(Appropriation, current)
Grants to States for health
Appropriation current .
551
...
Outlays
Total Grants to States for health
See footnotes at end of table.
551
BA
0
BA
0
1,314,800
7
189,200
762,954
L
75,700
1,504,000
838,654
8-90
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Health and Human Services—Con.
Health Programs—Con.
Public Health Service—Con.
Office of Assistant Secretary for
Health—Con.
Retirement pay and medical benefits for commissioned
officers
551
Appropriation, current
BA
L
87,698
-1,250
L
89,341
-1,250
Indefinite
BA
71,325
Outlays
0
74,462
77,663
^ —918
71,325
74,462
74,438
76,745
86,448
88,091
3,692
4,369
Total Retirement pay and medical benefits for
commissioned officers
BA
0
Scientific activities overseas (special foreign currency
program)
552
Outlays
0
2,431
75,356
L
-918
Intragovernmental Funds:
Service and supply fund
551
Outlays
0
Trust funds
Miscellaneous trust funds
551
Appropriation, permanent, indefinite..
BA
Outlays
0
Total Federal funds Office of Assistant Secretary
for Health
BA
0
164,444
187,548
Total Trust funds Office of Assistant Secretary
for Health
BA
0
17,891
9,786
13,815
17,891
9,786
-14,231
8,124
10,966
8,124
8,778
180,010
174,741
1,702,761
1,046,590
8,124
10,966
Total Federal funds Public Health Service
BA
0
8,075,238
7,846,291
Total Trust funds Public Health Service
BA
0
17,891
9,786
BA
14,794,512
20,673,708
0
18,985,244
20,236,803
BA
0
14,794,512
18,985,244
20,673,708
20,236,803
8,124
8,778
8,574,686
8,272,286
8,378,701
8,578,774
8,124
10,966
8,124
8,778
Other Health Programs
Health Care Financing Administration
Federal funds
General and Special Funds:
Grants to States for Medicaid
Appropriation, current
Outlays
Total Grants to States for Medicaid
See footnotes at end of table.
551
L
L
22,280,001
-1,067,001
23,196,321
-1,067,001
21,213,000
22,129,320
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-91
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Health and Human Services—Con.
Health Programs—Con.
Other Health Programs—Con.
Health Care Financing Administration—
Con.
Payments to health care trust funds
Appropriation, current
572
BA
Program management:
(Health care services)
(Appropriation, current)
(Outlays)
(Health research)
(Appropriation, current)
(Outlays)
Total Federal hospital insurance trust fund
154,000
17,821,000
18,803,000
18,778,991
17,836,000
17,821,000
19,553,000
19,553,000
BA
0
74,559
72,176
69,600
69,600
73,247
73,247
BA
0
20,000
20,000
20,600
20,600
23,000
23,000
BA
0
94,559
92,176
90,200
90,200
96,247
96,247
552
572
BA
BA
0
BA
0
Federal supplementary medical insurance trust
fund
572
Appropriation, current
BA
See footnotes at end of table.
J
551
Total Program management
Trust funds
Federal hospital insurance trust fund
Appropriation, current
Appropriation, permanent, indefinite
Outlays
18,778,991
19,904,000
-806,000
455,000
20,359,000
•'-806,000
BA
0
Total Payments to health care trust funds
17,682,000
BA
0
Appropriation, permanent, indefinite
Outlays
18,803,000
y
31,511,980
38,551,316
31,511,980
38,551,316
45,436,000
45,069,109
A
1,308
215,000
51,171,000
52,127,127
J
45,436,000
45,070,417
'5,000
-214,241
51,386,000
51,912,886
J
-669,000
8-92
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Health and Human Services—Con.
Health Programs—Con.
Other Health Programs—Con.
Health Care Financing Administration—
Con.
Appropriation, permanent, indefinite
Outlays
BA
0
19,147,097
18,316,750
22,434,000
21,253,126
A
2,692
•'-150,000
25,661,000
24,669,448
J
- 724,805
Total Federal supplementary medical insurance
trust fund
BA
0
19,147,097
18,316,750
22,439,000
21,105,818
24,992,000
23,944,643
Total Federal funds Health Care Financing Administration
BA
0
33,692,071
37,856,411
38,599,908
38,148,003
40,862,247
41,778,567
Total Trust funds Health Care Financing Administration
BA
0
50,659,077
56,868,066
67,875,000
66,176,235
76,378,000
75,857,529
Total Federal funds Health Programs
BA
0
41,767,309
45,702,702
47,174,594
46,420,289
49,240,948
50,357,341
Total Trust funds Health Programs
BA
0
50,676,968
56,877,852
67,883,124
66,187,201
76,386,124
75,866,307
BA
BA
0
21,890,213
21,130,168
521,258
3,960,000
4,481,175
512,722
3,198,000
3,710,722
BA
0
21,890,213
21,130,168
4,481,258
4,481,175
3,710,722
3,710,722
BA
1,093,000
1,024,131
0
1,078,759
1,068,000
-10,000
1,056,232
1,093,000
1,078,759
1,058,000
1,056,232
1,024,131
1,029,131
BA
8,560,402
8,359,000
D
6,558
G
10,000
9,362,290
0
8,723,567
8,554,095
-16,000
9,364,517
*--16,000
BA
0
8,560,402
8,723,567
8,375,558
8,554,095
9,346,290
9,348,517
Social Security Administration
Federal funds
General and Special Funds:
Payments to social security trust funds
Appropriation, current
Appropriation, permanent, indefinite
Outlays
571
Total Payments to social security trust funds
Special benefits for disabled coal miners
Appropriation, current
601
Outlays
Total Special benefits for disabled coal miners.... BA
0
Supplemental security income program
Appropriation, current
Total Supplemental security income program
1,029,131
609
Outlays
See footnotes at end of table.
F
L
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-93
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Health and Human Services—Con.
Social Security Administration—Con.
Assistance payments program
Appropriation, current
609
BA
7,877,342
7,722,364
L
Outlays
0
7,516,518
7,877,342
7,874,930
7,722,364
7,516,518
BA
523,074
559,490
0
516,443
561,919
BA
0
523,074
516,443
559,490
561,919
563,411
558,411
BA
0
585,000
523,856
514,461
598,668
359,512
418,656
BA
1,975,000
1,875,000
0
1,993,408
1,886,517
'1,875,000
187,500
'1,687,500
BA
0
1,975,000
1,993,408
1,875,000
1,886,517
1,875,000
1,875,000
L
609
Outlays
Total Child support enforcement
Refugee and entrant assistance
Appropriation, current
Outlays
Low income home energy assistance
Appropriation, current
7,874,930
BA
0
Total Assistance payments program
Child support enforcement
Appropriation, current
7,577,025
-633,000
7,777,025
-633,000
6,944,025
7,144,025
582,411
^-19,000
577,411
L
-19,000
609
609
Outlays
Total Low income home energy assistance
Payments to states from receipts for child support
609
Appropriation, permanent
BA
Outlays
0
566
520
450
612
450
450
Trust funds
Federal old-age and survivors insurance trust fund
571
Appropriation, current
Appropriation, permanent, indefinite
Outlays
BA
BA
0
168,104,127
153,988,738
160,904,415
163,179,016
'808,000
181,995,428
174,357,370
Total Federal old-age and survivors insurance
trust fund
BA
0
168,104,127
153,988,738
160,904,415
163,179,016
182,803,428
174,357,370
See footnotes at end of table.
8-94
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Health and Human Services—Con.
Social Security Administration—Con.
Federal disability insurance trust fund
Appropriation, current
Appropriation, permanent, indefinite
Outlays
Limitation on administrative expenses
571
BA
BA
0
J
78,000
18,108,000
18,803,212
(3,724,515)
16,825,550
18,291,361
(3,511,885)
17,542,000
18,528,227
(3,718,303)
D
(31,058)
BA
0
16,825,550
18,291,361
17,542,000
18,528,227
18,186,000
18,803,212
Total Federal funds Social Security Administration
BA
0
42,504,597
41,841,651
24,586,581
24,655,736
23,823,541
24,084,912
Total Trust funds Social Security Administration.. BA
0
184,929,677
172,280,099
178,446,415
181,707,243
200,989,428
193,160,582
2,675,000
2,675,000
2,507,818
2,772,080
2,700,000
2,795,638
1,775,014
1,865,847
1,789,525
1,775,014
1,789,525
1,843,735
1,865,847
1,843,735
Total Federal disability insurance trust fund
Human Development Services
Federal funds
General and Special Funds:
Social services block grant
Appropriation, current
Outlays
Human development services
Appropriation, current
506
BA
0
506
BA
Outlays
0
Total Human development services
Human resources research and demonstration
Appropriation, current
Outlays
Family social services
Appropriation, current
BA
0
BA
0
4,250
893
BA
572,669
0
410,138
BA
0
641,902
625,905
43,200
631,065
* 33,090
643,554
* 10,110
572,669
410,138
669,105
664,155
641,902
653,664
BA
0
270,760
289,328
270,760
272,582
57,098
BA
0
382,672
349,315
352,300
366,826
2,919
122,991
0
-825
7.248
A
504
506
Public Enterprise Funds:
See footnotes at end of table.
2,022,149
1,970,743
506
Total Family social services
Rural development loan fund
Outlays
70,965
1,951,184
1,970,743
506
Outlays
Work incentives
Appropriation, current
Outlays
Community services
Appropriation, current
Outlays
K
452
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-95
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Health and Human Services—Con.
Human Development Services—Con.
Community development credit union revolving loan
fund
452
Outlays
-832
1,614
-1,000
BA
5,676,115
5,833,012
5,371,220
0
Total Federal funds Human Development Services
0
5,344,467
5,928,240
5,600,027
Departmental Management
Federal funds
General and Special Funds:
General Departmental management
Appropriation, current
609
BA
Office of the Inspector General
Appropriation, current
Outlays
Office for Civil Rights
Appropriation, current
Outlays
Office of Consumer Affairs
Appropriation, current
158,143
157,963
133,000
0
148,474
157,725
134,292
BA
0
81,267
86,096
97,163
92,518
67,491
71,983
BA
0
Outlays
19,163
17,927
18,945
18,718
17,850
17,806
609
751
506
BA
2,089
1,947
2,046
2,096
0
1,777
2,043
2,089
14,718
15,386
10,000
10,931
8,000
9,261
0
-3,440
1,810
BA
275,238
286,117
228,437
0
266,220
283,745
235,431
BA
90,223,259
77,880,304
78,664,146
0
93,155,040
77,288,010
80,277,711
BA 235,606,645
246,329,539
277,375,552
0
Policy research
1,777
35
2,043
BA
Total Office of Consumer Affairs
2,011
0
Outlays
1,947
247,894,444
269,026,889
D
2,096
609
Appropriation, current
Outlays
BA
0
Intragovernmental Funds:
Working capital fund
Outlays
506
Total Federal funds Departmental Management...
Summary
Federal funds:
(As shown in detail above)
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
intrafund transactions
571 BA
908
Proprietary receipts from the public
BA
554 BA
n
See footnotes at end of table.
229,157,951
_4gm
. . 770
—14,//o
_39Ooo
c m i
—J,UU
-41,000
c/)11
—J,U11
8-96
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Health and Human Services—Con.
Summary—Con.
572 BA
0
BA
0
908 BA
0
Total Trust funds
transactions
BA
0
571 BA
0
572 BA
0
BA
0
Total Department of Health and Human Services
BA
0
-4,253,214
-4,960,000
-5,908,000
J
-107,000
-4,310
-12,000
-10,000
229,838,070
223,389,376
239,430,528
240,995,433
269,421,541
261,072,878
-21,130,168
-4,481,175
-3,710,722
-18,778,991
-17,821,000
-20,359,000
J
280,152,170
276,635,257
295,008,657
295,981,268
806,000
324,821,965
318,086,867
Department of Housing and Urban Development
Housing Programs
Federal funds
General and Special Funds:
Subsidized housing programs
Appropriation, current, indefinite
Contract authority, current
604
BA
BA
24,665
(9,344,196)
7,786,379
*-615,000
7,786,496
A
-354,270
19,398
(10,697,000)
8,584,000
22,300
(11,663,000)
9,314,000
8,364,612
7,786,379
6,836,624
8,584,000
4,266,903
9,314,000
0
-164
52,722
52,000
BA
0
4,000
3,359
7,400
8,000
BA
0
3,500
3,082
3,500
3,000
3,500
Contract authority, permanent
Liquidation of contract authority, current
Outlays
BA
Total Subsidized housing programs
BA
0
Troubled projects operating subsidy
Outlays
Congregate services program
Appropriation, current
Outlays
Housing counseling assistance
Appropriation, current
Outlays
Mobile home standards program
Outlays
Rental development grants
Appropriation, current
Outlays
Manufactured home inspection and monitoring
Appropriation, permanent, indefinite
Outlays
See footnotes at end of table.
0
8,339,947
4,244,603
604
604
506
376
0
198
451
A
BA
0
315,000
* 20,000
376
BA
0
5,065
4,923
5,632
6,485
5,952
6,537
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-97
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Housing and Urban Development—Con.
Housing Programs—Con.
Interstate land sales
Appropriation, permanent, indefinite
Outlays
376
BA
0
192
220
500
654
1,200
1,200
Public Enterprise Funds:
Federal Housing Administration fund
Appropriation, current
Authority to borrow, permanent, indefinite
Outlays
371
BA
BA
0
Housing for the elderly or handicapped fund
Authority to borrow, current, indefinite
Outlays
Nonprofit sponsor assistance
Outlays
Community disposal operations fund
Outlays
Rental housing assistance fund
Outlays
132,974
45,950
-752,909
172,683
46,628
-1,157,180
BA
0
183,152
-192,038
178,924
-752,909
219,311
-1,157,180
BA
0
Total Federal Housing Administration fund
152,635
30,517
-192,038
499,738
799,911
630,985
802,502
498,318
802,811
371
604
0
-30
-105
-140
0
-267
-258
-197
451
604
0
-3,838
-35,371
-40,000
BA
0
9,060,259
8,401,537
7,971,165
8,668,318
4,991,684
9,010,531
Payments for operation of low income housing projects
604
Appropriation, current
BA
1,350,000
1,362,200
-331,431
1,123,500
1,346,000
"-166,000
1,340,000
«-165,000
Total Federal funds Housing Programs
Public and Indian Housing Programs
Federal funds
General and Special Funds:
Reappropriation
Outlays
H
BA
0
196,828
1,541,558
Total Payments for operation of low income
housing projects
BA
0
1,546,828
1,541,558
1,030,769
1,180,000
1,123,500
1,175,000
110,603
124,856
144,673
1,546,828
1,652,161
1,030,769
1,304,856
1,123,500
1,319,673
Public Enterprise Funds:
Low-rent public housing-loans and other expenses
604
Outlays
0
Total Federal funds Public and Indian Housing
Programs
BA
0
Government National Mortgage Association
Federal funds
General and Special Funds:
Payment of participation sales insufficiencies
Appropriation, current
See footnotes at end of table.
371
BA
1,735
8-98
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Housing and Urban Development—Con.
Government National Mortgage
Association—Con.
Public Enterprise Funds:
Special assistance functions fund
Appropriation, current
Appropriation, permanent, indefinite
Outlays
371
BA
BA
0
Emergency mortgage purchase assistance
Authority to borrow, permanent, indefinite
Outlays
Management and liquidating functions fund
Outlays
Guarantees of mortgage-backed securities
Outlays
Participation sales fund:
(Mortgage credit and thrift insurance)
(Outlays)
(Other advancement of commerce)
(Outlays)
(Community development)
(Outlays)
(Higher education)
(Outlays)
(Health research)
(Outlays)
(Veterans housing)
(Outlays)
350
100
188,053
BA
0
1,141,514
1,200
1,337,693
450
188,053
BA
0
Total Special assistance functions fund
1,141,514
1,100
100
1,337,693
-21,098
118,645
121,509
177,267
178,267
-77,276
-28,542
371
371
0
1,270
371
0
-152,884
-189,450
-224,588
0
-26,556
-15,474
-18,448
0
-18,618
-15,626
-16,656
371
376
451
0
379
412
200
533
-1,606
-720
-752
502
0
-3,622
552
0
-703
704
0
-20,399
-21,510
0
Total Participation sales fund
-19,300
-68,420
-51,274
-58,772
1,735
900,382
119,845
1,141,202
177,717
54,418
20,000
262
25,000
30,500
30,500
3,468,000
3,900,000
3,468,000
3,900,000
Total Federal funds Government National Mortgage Association
BA
0
Solar Energy and Energy Conservation Bank
Federal funds
General and Special Funds:
Assistance for solar and conservation improvements
272
Appropriation, current
BA
Outlays
0
Community Planning and Development
Federal funds
General and Special Funds:
Community development grants
Appropriation, current
Outlays
See footnotes at end of table.
451
BA
0
4,456,000
3,553,972
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-99
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Department of Housing and Urban Development—Con.
Community Planning and Development—
Con.
Urban development action grants
Appropriation, current
Outlays
Urban homesteading
Appropriation, current
Outlays
Rental rehabilitation grants
Appropriation, current
Outlays
Planning assistance
Appropriation, current
Outlays
Neighborhood self-help development program
Outlays
Miscellaneous appropriations
Outlays
451
BA
0
440,000
450,772
440,000
480,000
440,000
490,000
BA
0
12,000
9,039
12,000
16,700
12,000
16,000
451
451
4
BA
0
300,000
* 75,000
451
BA
0
-1,078
843
2,534
451
0
404
426
451
0
1,136
-309
Public Enterprise Funds:
Rehabilitation loan fund
451
Outlays
0
Urban renewal programs
451
Appropriation, current
BA
Liquidation of contract authority, permanent
Outlays
0
Revolving fund (liquidating programs)
451
Appropriation, current
BA
Outlays
0
Total Federal funds Community Planning and
Development
BA
0
-32,722
16,885
20,892
6,000
(70,000)
42,037
(50,000)
34,087
(22,902)
34,990
991
-27,587
897
-32,643
395
-31,968
4,913,913
3,998,162
4,220,897
4,417,412
3,920,395
4,504,914
New Community Development Corporation
Federal funds
General and Special Funds:
New community assistance grants
Outlays
451
0
10
2
92
1
Public Enterprise Funds:
New communities fund
Authority to borrow, permanent, indefinite
Contract authority, permanent, indefinite
Outlays
451
BA
BA
0
24,482
71,751
29,342
BA
0
96,233
29,342
Total Federal funds New Community Development Corporation
BA
0
96,233
29,462
Total New communities fund
See footnotes at end of table.
92
1
8-100
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Housing and Urban Development—Con.
Policy Development and Research
Federal funds
General and Special Funds:
Research and technology
Appropriation, current
Outlays
451
BA
0
18,000
21,669
19,000
21,570
20,900
21,720
BA
0
5,700
4,634
4,700
11,000
6,700
8,400
197,722
195,327
193,510
192,646
193,066
193,081
84,077
83,048
82,286
81,908
75,860
75,860
25,701
25,389
25,154
25,040
26,309
26,309
307,500
303,764
300,950
299,594
295,235
295,250
Fair Housing and Equal Opportunity
Federal funds
General and Special Funds:
Fair housing assistance
Appropriation, current
Outlays
751
Management and Administration
Federal funds
General and Special Funds:
Salaries and expenses, Including transfer of funds-.
(Community development)
451
(Appropriation, current)
BA
(Outlays)
0
(Housing assistance)
604
(Appropriation, current)
BA
(Outlays)
0
(Federal law enforcement activities)
751
(Appropriation, current)
BA
(Outlays)
0
Total Salaries and expenses, Including transfer
of funds
BA
0
Low-income housing demonstration program
Outlays
451
0
- 1
0
-912
Intragovernmental Funds:
Working capital fund
Outlays
451
Total Federal funds Management and Administration
BA
0
307,500
302,851
300,950
299,594
295,235
295,250
Summary
Federal funds:
Total Department of Housing and Urban Development
BA
0
15,970,168
15,311,120
13,692,326
15,895,364
10,536,131
15,245,406
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-101
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of the Interior
Land and Minerals Management
Bureau of Land Management
Federal funds
General and Special Funds:
Management of lands and resources
Appropriation, current
Outlays
Construction and access
Appropriation, current
Outlays
Payments in lieu of taxes
Appropriation, current
Outlays
Oregon and California grant lands
Appropriation, current
Outlays
Special acquisition of lands and minerals
Authority to borrow, current
Authority to borrow, permanent
Outlays
302
BA
0
383,849
408,469
359,601
357,803
353,159
351,393
302
BA
0
1,743
4,845
1,700
1,132
1,228
1,189
852
BA
0
96,320
96,183
105,000
105,000
105,000
105,000
BA
0
57,620
55,419
51,536
53,268
49,747
50,991
BA
BA
0
15,500
15,500
10,000
1,300
11,300
Total Special acquisition of lands and minerals... BA
0
15,500
15,500
11,300
11,300
302
302
Land acquisition
302
Appropriation, current
Outlays
Range improvements
302
Appropriation, current, indefinite
Outlays
Recreation development and operation of recreation
facilities
302
Outlays
Service charges, deposits, and forfeitures
302
Appropriation, current, indefinite
Outlays
Miscellaneous permanent appropriations:
(Conservation and land management)
302
(Appropriation, permanent, indefinite)
(Outlays)
(Other general purpose fiscal assistance)
852
(Appropriation, permanent, indefinite)
(Outlays)
Total Miscellaneous permanent appropriations
BA
0
BA
0
0
117
3,060
11,200
10,516
1
See footnotes at end of table.
10,000
9,750
1,043
10,000
9,750
21
BA
0
5,357
4,366
8,700
8,200
BA
0
2,519
4,018
5,616
5,416
9,075
8,575
5,600
5,216
BA
0
581,893
578,135
52,307
52,307
63,047
63,231
BA
0
584,412
582,153
57,923
57,723
68,647
68,447
0
-3,610
Intragovernmental Funds:
Working capital fund
Outlays
1,701
1,113
302
8-102
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of the Interior—Con.
Land and Minerals Management—Con.
Bureau of Land Management—Con.
Trust funds
Miscellaneous trust funds
Appropriation, current, indefinite
Appropriation, permanent, indefinite
Outlays
302
BA
BA
0
100
600
700
100
600
700
BA
0
Total Miscellaneous trust funds
11
1,290
1,423
1,301
1,423
700
700
700
700
Total Federal funds Bureau of Land Management BA
0
Total Trust funds Bureau of Land Management... BA
0
1,140,618
1,161,402
1,301
1,423
611,661
609,510
700
700
608,156
607,688
700
700
Minerals Management Service
Federal funds
General and Special Funds:
Minerals and royalty management
Appropriation, current
302
BA
0
BA
0
Outlays
Total Minerals and royalty management
182,127
167,381
119,024
163,561
D
1,064
194,884
182,127
119,024
164,625
194,884
167,381
166,673
714,812
714,812
599,115
599,115
182,127
119,024
879,437
909,696
766,496
765,788
BA
60,878
69,689
0
67,137
65,450
^ 4,775
D
470
66,587
* 2,000
68,209
* 2,775
BA
0
60,878
67,137
70,695
68,587
69,689
70,984
Payments to states from receipts under Mineral Leasing Act
852
Appropriation, permanent, indefinite
BA
Outlays
0
Total Federal funds Minerals Management Service
BA
0
166,673
Office of Surface Mining Reclamation and
Enforcement
Federal funds
General and Special Funds:
Regulation and technology
Appropriation, current
Outlays
Total Regulation and technology
See footnotes at end of table.
302
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-103
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of the Interior—Con.
Land and Minerals Management—Con.
Office of Surface Mining Reclamation and
Enforcement—Con.
Abandoned mine reclamation fund
Appropriation, current
302
BA
213,184
271,228
291,701
96,336
141,099
182,495
BA
274,062
341,923
361,390
0
163,473
209,686
253,479
BA
1,596,807
1,833,021
1,736,042
0
1,443,899
1,728,892
1,626,955
BA
1,301
700
700
0
Outlays
1,423
700
700
0
Total Federal funds Office of Surface Mining
Reclamation and Enforcement
Total Federal funds Land and Minerals Management
Total Trust funds Land and Minerals Management
Water and Science
Bureau of Reclamation
Federal funds
General and Special Funds:
Construction program
Appropriation, current
301
BA
695,337
BA
0
55,106
31,386
45,000
60,000
67,537
65,037
BA
38,871
33,831
35,651
41,413
226
39,215
35,144
BA
38,871
34,057
35,651
0
41,413
39,215
35,144
301
Total General investigations
Outlays
Operation and maintenance
Appropriation, current
764,137
660,000
301
Outlays
Emergency fund
Appropriation, current
695,318
599,616
0
Loan program
Appropriation, current
Outlays
General investigations
Appropriation, current
637,909
0
Outlays
D
301
BA
1,919
1,000
1,000
0
1,372
3,000
1,000
301
BA
General administrative expenses
Appropriation, current
Outlays
Miscellaneous permanent appropriations
Appropriation, permanent
Indefinite
Outlays
142,524
134,291
149,689
0
Outlays
136,114
136,000
149,689
40,727
40,140
53,750
53,750
58,917
58,917
301
BA
0
852
See footnotes at end of table.
420-000 O - 84 -
2 9 : QL 3
600
1,909
2,409
600
2,100
2,700
BA
2,509
2,700
2,500
0
Total Miscellaneous permanent appropriations
BA
BA
0
600
1,900
2,500
2,409
2,700
2,500
8-104
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Department of the Interior—Con.
Water and Science—Con.
Bureau of Reclamation—Con.
Public Enterprise Funds:
Lower Colorado River Basin development fund 301
Outlays
0
Upper Colorado River Basin fund
301
Outlays
0
-10,196
-9,632
Trust funds
Reclamation trust funds
301
Appropriation, permanent, indefinite
BA
Outlays
0
Total Federal funds Bureau of Reclamation
• BA
.
0
16,920
16,920
15,350
15,350
919,565
832,622
966,116
954,665
1,079,431
1,007,624
BA
0
2,940
2,250
16,920
16,920
15,350
15,350
BA
BA
0
BA
0
Total Trust funds Bureau of Reclamation
2,940
2,250
371,784
422,353
373,430
8,500
407,051
382,312
9,500
390,503
371,784
422,353
381,930
407,051
391,812
390,503
Geological Survey
Federal funds
General and Special Funds:
Surveys, investigations and research
Appropriation, current
Appropriation, permanent, indefinite
Outlays
306
Total Surveys, investigations and research
Barrow area gas operation, exploration, and development
271
BA
Appropriation, current
Outlays
6,400
0
3,354
Total Barrow area gas operation, exploration,
BA
and development
6,400
3,354
0
Exploration of national
Alaska
Outlays
petroleum
Total Federal funds Geological Survey-
14,711
13,000
33,046 .
.
12,967
1,000
306
500
500
B
A
0
BA
0
378,184
440,418
R
A
0
See footnotes at end of table.
13,000
3,046
* 30,000
reserve in
271
Trust funds
Contributed funds
Appropriation, permanent, indefinite..
Outlays
Total Trust funds Geological Survey
A
.
.
500
50
0
394,930
453,064
391,812
391,503
500
500
500
50
0
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-105
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of the Interior—Con.
Water and Science—Con.
Bureau of Mines
Federal funds
General and Special Funds:
Mines and minerals
Appropriation, current
Outlays
306
BA
0
144,568
147,675
0
137,425
147,916
117,634
125,398
-5,447
Public Enterprise Funds:
Helium fund
Outlays
306
Trust funds
Contributed funds
Appropriation, permanent, indefinite
Outlays
306
BA
0
,
639
238
144,568
142,228
700
700
Total Federal funds Bureau of Mines
BA
0
Total Trust funds Bureau of Mines
BA
0
Total Federal funds Water and Science
BA
0
1,442,317
1,415,268
1,498,471
1,555,645
1,588,877
1,524,525
Total Trust funds Water and Science
BA
0
3,579
2,488
18,120
18,120
16,350
16,350
BA
266,017
291,600
BA
0
246,905
271,303
A
1,031
250
285,500
^899
M32
639
238
137,425
147,916
500
500
700
700
117,634
125,398
500
500
Fish and Wildlife and Parks
United States Fish and Wildlife Service
Federal funds
General and Special Funds:
Resource management
Appropriation, current
303
Appropriation, permanent, indefinite
Outlays
Total Resource management
Construction and anadromous fish
Appropriation, current
Outlays
Land acquisition and state assistance
Appropriation, current
BA
0
272,584
286,399
291,850
282,984
BA
0
18,815
19,156
29,151
26,000
9,127
19,100
BA
32,700
44,797
0
1W66
35,000
30,000
* 27,500
41,400
BA
0
32,700
19,666
44,797
35,000
57,500
41,400
303
Total Land acquisition and state assistance
266,017
246,905
303
Outlays
See footnotes at end of table.
250
282,852
8-106
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of the Interior—Con.
Fish and Wildlife and Parks—Con.
United States Fish and Wildlife Service—
Con.
Migratory bird conservation account
Appropriation, current
Appropriation, permanent, indefinite
Outlays
303
BA
BA
0
7,000
16,376
23,376
16,376
16,000
BA
0
Total Migratory bird conservation account
2,000
14,897
18,632
16,897
18,632
23,376
23,376
16,376
16,000
Development and operation of recreation facilities
303
Outlays
National wildlife refuge fund
Appropriation, current
Appropriation, permanent, indefinite
Outlays
0
11
852
BA
BA
0
5,760
5,480
12,329
5,760
6,778
12,938
5,760
6,740
12,600
BA
0
11,240
12,329
12,538
12,938
12,500
12,600
BA
0
147,004
149,428
127,512
131,900
138,700
148,200
BA
0
3,738
3,560
3,572
3,500
3,738
3,600
Total Federal funds United States Fish and Wildlife Service
BA
0
492,673
466,127
509,958
515,613
526,053
520,284
Total Trust funds United States Fish and Wildlife
Service
BA
0
3,738
3,560
3,572
3,500
3,738
3,600
BA
605,279
624,648
0
549,600
601,095
A
2,600
590,900
* 2,600
BA
0
605,279
549,600
603,695
593,500
624,648
650,000
BA
0
10,055
13,672
10,377
10,400
9,543
9,600
Total National wildlife refuge fund
Miscellaneous permanent appropriations
Appropriation, permanent, indefinite
Outlays
Trust funds
Contributed funds
Appropriation, permanent, indefinite
Outlays
303
303
National Park Service
Federal funds
General and Special Funds:
Operation of the national park system
Appropriation, current
303
Outlays
Total Operation of the national park system
National recreation and preservation
Appropriation, current
Outlays
See footnotes at end of table.
650,000
303
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-107
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Department of the Interior—Con.
Fish and Wildlife and Parks—Con.
National Park Service—Con.
Construction
303
Appropriation, current
Outlays
Road construction
303
Outlays
John F. Kennedy Center for the Performing Arts
303
Appropriation, current
BA
0
44,037
94,000
0
356
2,541
BA
4,336
4,542
0
Outlays
4,140
4,520
* 4,621
4,600
4,336
4,140
4,542
4,520
4,621
4,600
40,000
28,059
8,700
50,100
31,200
Total John F. Kennedy Center for the Performing
BA
Arts
0
Urban park and recreation fund
Appropriation, current
Outlays
National park system visitor facilities fund
Appropriation, current
Outlays
Land and water conservation fund
Outlays
Land acquisition
Appropriation, current
Contract authority, current
303
BA
0
303
BA
0
104
303
-104
BA
BA
206,505
-30,000
BA
0
30,000
272,636
206,505
272,636
30,000
301,000
-30,000
30,000
214,000
203,650
301,000
100,000
214,000
51
3
20
1
51,000
30,554
26,500
45,200
2
2
6
1
466
432
995
995
BA
0
Planning, development, and operation of recreation
facilities
303
Outlays
Historic preservation fund
303
Appropriation, current
Outlays
Commemorative activities fund
303
Outlays
Miscellaneous permanent appropriations
303
Appropriation, permanent, indefinite
Outlays
6,000
6,000
3,200
0
Total Land acquisition
See footnotes at end of table.
5,800
303
Contract authority, permanent
Outlays
Trust funds
Construction (trust fund)
Appropriation, current
Liquidation of contract authority, current
Outlays
78,275
78,000
160,096
105,614
0
BA
0
0
BA
0
100,000
203,650
"-30,000
401
BA
0
(250)
729
14,000
(2,350)
2,643 ..
.
20,300
1,302
1,302
8-108
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of the Interior—Con.
Fish and Wildlife and Parks—Con.
National Park Service—Con.
Miscellaneous trust funds
Appropriation, permanent, indefinite
Outlays
303
BA
0
2,409
1,539
12,722
12,722
16,522
16,522
Total Federal funds National Park Service
BA
0
1,077,737
1,005,720
908,296
1,105,623
824,389
1,015,002
Total Trust funds National Park Service
BA
0
2,409
2,268
26,722
15,365
16,522
16,522
Total Federal funds Fish and Wildlife and Parks.. BA
0
1,570,410
1,471,847
1,418,254
1,621,236
1,350,442
1,535,286
30,294
18,865
20,260
20,122
92,688
M4,000
c
107
D
540
91,407
A
14,000
96,922
Total Trust funds Fish and Wildlife and Parks
BA
0
6,147
5,828
Indian Affairs
Bureau of Indian Affairs
Federal funds
General and Special Funds:
Operation of Indian programs:
(Conservation and land management)
(Appropriation, current)
302
BA
119,241
(Outlays)
0
105,745
Total (Conservation and land management)
BA
0
119,241
105,745
107,335
105,407
96,922
92,858
BA
536,743
484,999
(Outlays)
0
482,410
475,460
A
7,400
c
500
D
2,235
469,497
* 7,400
Total (Area and regional development)
BA
0
536,743
482,410
485,595
476,897
484,999
465,646
(Area and regional development)
(Appropriation, current)
See footnotes at end of table.
92,858
452
465,646
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-109
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Department of the Interior—Con.
Indian Affairs—Con.
Bureau of Indian Affairs—Con.
(Elementary, secondary, and vocational education)
501
(Appropriation, current)
BA
273,451
266,000
255,754
C
444
D
2,045
253,039
298,143
266,000
258,243
253,039
273,451
262,187
BA
0
954,127
854,155
851,173
835,343
855,372
820,691
BA
(Outlays).
131,940
78,920
9,600
131,000
A
7,600
73,324
117,700
A
2,000
131,940
87,628
88,520
138,600
73,324
119,700
43,585
45,041
4,000
24,000
11,000
0
Total (Elementary, secondary, and vocational
education)
BA
0
Total Operation of Indian programs
Construction
Appropriation, current
87,628
Total Construction..
BA
0
Road construction
452
Appropriation, current
BA
Outlays
0
Payments to Papago trust and cooperative fund:
(Area and regional development)
452
(Appropriation, current)
BA
(Outlays)
0
(Other general government)
806
(Appropriation, current)
BA
(Outlays)
0
Total Payments to Papago trust and cooperative
fund
BA
0
4
5,250
5,250
15,000
15,000
20,250
20,250
806
BA
0
900
1,256
452
BA
0
35,941
34,426
39,000
36,500
39,000
36,500
BA
0
990
992
1,000
1,000
1,000
1,000
BA
0
36,931
35,418
40,000
37,500
40,000
37,500
806
Total Miscellaneous permanent appropriations
See footnotes at end of table.
262,187
452
Outlays..
Eastern Indian land claims settlement fund
Appropriation, current
Outlays
Miscellaneous permanent appropriations:
(Area and regional development)
(Appropriation, permanent, indefinite)
(Outlays)
(Other general government)
(Appropriation, permanent, indefinite)
(Outlays)
298,143
8-110
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of the Interior—Con.
Indian Affairs—Con.
Bureau of Indian Affairs—Con.
Public Enterprise Funds:
Revolving fund for loans
Outlays
Indian loan guaranty and insurance fund
Outlays
452
3,850
6,200
1,076
3,410
3,664
BA
5,250
6,200
1,375
BA
BA
BA
0
2,027
58,122
359,295
457,808
4,000
60,000
405,399
466,500
4,000
60,000
445,102
505,500
BA
0
419,444
457,808
469,399
466,500
509,102
505,500
BA
0
15,000
Total Miscellaneous trust funds
BA
0
434,444
457,808
469,399
481,500
509,102
505,500
Total Federal funds Bureau of Indian Affairs
BA
0
1,186,833
1,043,838
984,593
1,043,959
968,696
998,755
Total Trust funds Bureau of Indian Affairs
BA
0
439,694
457,808
475,599
481,500
510,477
505,500
BA
85,989
53,829
0
69,855
79,262
* 2,248
D
54
80,738
A
1,908
85,989
81,564
53,829
69,855
82,646
64,719
Trust funds
Cooperative fund (papago)
Appropriation, permanent, indefinite
Miscellaneous trust funds:
(Area and regional development)
(Appropriation, current)
(Indefinite)
(Appropriation, permanent, indefinite)
(Outlays)
0
0
452
452
Total (Area and regional development)
(Other general government)
(Appropriation, permanent)
(Outlays)
269
452
806
15,000
Territorial and International Affairs
Territorial and International Affairs
Federal funds
General and Special Funds:
Administration of territories
Appropriation, current
Outlays
Total Administration of territories
806
BA
0
See footnotes at end of table.
.
64,379
A
340
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-111
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Department of the Interior—Con.
Territorial and International Affairs—Con.
Territorial and International Affairs—Con.
Trust Territory of the Pacific Islands
Appropriation, current
806
BA
96,132
130,751
130,000
^ —264
118,246
BA
0
Total Trust Territory of the Pacific Islands
112,109
0
Outlays
95,840
95,840
130,751
111,845
129,736
96,132
118,246
Micronesian claims fund, Trust Territory of the Pacific
Islands
806
Outlays
0
Payments to the United States territories, fiscal assistance
852
Appropriation, permanent, indefinite
BA
Outlays
0
38
1,578
55,563
58,722
59,800
59,800
63,000
63,000
Total Federal funds Territorial and International
Affairs
BA
0
237,392
259,366
253,209
273,760
212,961
245,965
42,587
44,068
47,371
45,336
44,080
47,091
BA
0
42,587
45,336
44,268
44,080
47,371
47,091
BA
0
575
420
1,500
72
8
BA
0
8,118
1,934
5,884
BA
0
896
3,452
800
4,581
Departmental Offices
Office of the Secretary
Federal funds
General and Special Funds:
Office of the Secretary
Appropriation, current
306
B
A
Outlays
Total Office of the Secretary
Office of the Secretary (special foreign currency program)
306
Appropriation, current
Outlays
Office of Water Policy
301
Appropriation, current
Outlays
Construction management
306
Appropriation, current
Outlays
Youth conservation corps
302
Outlays
0
- 1 0 2 ..
.
Intragovernmental Funds:
Working capital fund
Outlays
Total Federal funds Office of the Secretary
See footnotes at end of table.
306
0
BA
0
-15,361
51,601
35,834
15,000 ..
.
45,488
71,045
47,371
47,873
8-112
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of the Interior—Con.
Departmental Offices—Con.
Office of the Solicitor
Federal funds
General and Special Funds:
Office of the Solicitor
Appropriation, current
306
BA
0
19,551
19,866
19,683
19,852
20,157
19,943
BA
Total Office of the Solicitor
20,157
19,866
19,463
"220
19,852
BA
0
Outlays
19,551
21,900
18,053
19,943
Office of Inspector General
Federal funds
General and Special Funds:
Office of Inspector General
Appropriation, current
306
0
16,166
16,814
"387
25,614
Total Office of Inspector General
BA
0
21,900
16,166
17,201
25,614
18,053
18,473
Total Federal funds Departmental Offices
BA
0
93,052
71,866
82,372
116,511
85,581
86,289
BA
0
6,126,811
5,706,084
6,069,920
6,340,003
5,942,599
6,017,775
_ ^
_/2m
_
Outlays
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
31 B
0
A
m
18,473
M
302
QA
-1,083,407
-1,368,872
-1,506,139
303
QA
-41,244
-45,008
-48,257
Q
A
J
-6,600
306
QA
-35,940
-39,001
-39,001
908
Trust funds:
(As shown in detail above)
-7.074
452
Total Federal funds
JA
A
-5,580
-8,261
-9,052
BA
0
4,889,587
4,468,860
4,535,977
4,806,060
4,257,941
4,333,117
BA
0
450,721
467,547
524,713
519,185
547,787
542,672
Q
-1
-1
Deductions for offsetting receipts:
Proprietary receipts from the public
See footnotes at end of table.
301 BA
_2940
-16920
-15,350
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-113
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of the Interior—Con.
Summary—Con.
302
B
A
Q
-1301
303
QA
-3,738
306
JA
452
QA
-700
-700
-3,572
-3J38
_lf200
-1,000
-223,616
-263,754
-303,800
-87,358
-110,529
-110,286
_639
908 BA
Q
Total Trust funds
BA
0
°
Total Department of the Interior
128,038
122,510
112,913
107,798
\k
-65,230
-75,000
-75,000
BA
0
8 6
131,129
147,955
4,955,486
4,551,585
4,589,015
4,853,570
4,295,854
4,365,915
67,584
67,584
64,994
Department of Justice
General Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
BA
0
Total Salaries and expenses
55,818
63,460
1,025
63,313
BA
0
Outlays
56,673
56,673
55,818
64,485
63,313
BA
0
5,656
BA
0
56,673
61,474
D
64,994
Intragovernmental Funds:
Working capital fund
Appropriation, current
Outlays
Total Federal funds General Administration
See footnotes at end of table.
751
967
64,485
64,280
6,000
4,523
73,584
69,517
8-114
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Justice—Con.
United States Parole Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
BA
0
Total Salaries and expenses
6,810
BA
0
Outlays
6,879
7,248
A 449
D
161
7,271
M27
6,879
6,810
8,778
8,592
^22
7,858
7,698
8,778
8,614
158,385
10,742
D
3,370
158,272
* 10,742
203,720
145,428
140,532
172,497
169,014
203,720
199,646
44,489
45,620
43,255
43,475
D
754
43,239
44,489
43,255
44,229
43,239
45,620
44,521
Legal Activities
Federal funds
General and Special Funds:
Salaries and expenses, General Legal Activities
752
Appropriation, current
BA
145,428
Outlays
0
140,532
Total Salaries and expenses, General Legal Activities
BA
0
Salaries and expenses, Antitrust Division
Appropriation, current
Outlays
BA
0
Salaries and expenses, Foreign Claims Settlement
Commission
153
Appropriation, current
BA
0
Total Salaries and expenses, Foreign Claims Settlement Commission
BA
0
Payment of Vietnam and U.S.S. Pueblo prisoner of
war claims
153
Outlays
0
See footnotes at end of table.
199,646
752
Total Salaries and expenses, Antitrust Division.... BA
0
Outlays
A
774
44,521
1,011
666
827
"16
840
774
666
843
840
1,011
1,011
10
20
54
1,011
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-115
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Justice—Con.
Legal Activities—Con.
Salaries and expenses, United States Attorneys and
Marshals
752
Appropriation, current
BA
344,197
372,330
C
2
D
7,358
376,133
422,190
348,081
344,197
379,690
376,133
425,626
422,190
55,754
33,283
50,320
58,868
58,240
52,416
35,700
29,809
37,883
37,223
40,988
40,168
5,864
34,128
5,904
32,196
D
131
30,356
31,963
5,864
5,904
32,327
30,356
34,128
31,963
BA
0
636,090
597,656
717,789
715,693
809,333
791,969
BA
127,500
89,050
1,132
2,559
BA
0
3,400
28,807
125,266
64,930
BA
0
Outlays
130,900
28,807
90,182
125,266
2,559
64,930
BA
854,254
1,157,223
0
824,269
1,047,000
C
345
D
16,591
1,019,581
1,141,538
BA
0
854,254
824,269
1,063,936
1,019,581
1,157,223
1,141,538
0
Total Salaries and expenses, United States Attorneys and Marshals
BA
0
Support of United States prisoners
752
Appropriation, current
BA
Outlays
0
Fees and expenses of witnesses
752
Appropriation, current
BA
Outlays
0
Salaries and expenses, Community Relations Service
752
Appropriation, current
BA
Outlays
0
Total Salaries and expenses, Community Relations Service
BA
0
Total Federal funds Legal Activities
348,081
425,626
Interagency Law Enforcement
Federal funds
General and Special Funds:
Organized crime drug enforcement
Appropriation, current
751
Reappropriation
Outlays
Total Organized crime drug enforcement
D
Federal Bureau of Investigation
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
Total Salaries and expenses
See footnotes at end of table.
751
8-116
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Justice—Con.
Drug Enforcement Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
BA
0
255,496
259,908
290,623
286,766
334,654
327,816
BA
495,631
501,257
C
84
D
9,297
574,539
BA
0
5,341
484,874
524,096
566,502
BA
0
500,972
484,874
510,638
524,096
574,539
566,502
BA
401,083
397,932
424,284
^ 9,467
c
1,188
D
6,318
425,651
* 8,710
485,088
0
BA
0
401,083
397,932
441,257
434,361
485,088
475,387
BA
0
11,050
11,718
14,000
13,222
12,574
11,967
BA
0
Total Salaries and expenses
334,654
259,908
286,123
D
4,500
286,766
BA
0
Outlays
255,496
66,667
17,918
47,711
65,572
82,556
98,626
0
3,411
(2,624)
(1,941)
D
(19)
(6,613)
(2,044)
327,816
Immigration and Naturalization Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
Reappropriation
Outlays
Total Salaries and expenses
Federal Prison System
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
753
Outlays
Total Salaries and expenses
National Institute of Corrections
Appropriation, current
Outlays
Buildings and facilities
Appropriation, current
Outlays
474,630
A
1V
754
753
Intragovemmental Funds:
Federal Prison Industries, Incorporated
Outlays
Limitation on administrative expenses
Limitation on vocational expenses
See footnotes at end of table.
753
(6,316)
D
(65)
(6,920)
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-117
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Justice—Con.
Federal Prison System—Con.
Trust funds
Commissary funds, Federal prisons (trust revolving
fund)
753
Outlays
0
-1,280
Total Federal funds Federal Prison System
6A
0
478,800
430,979
Total Trust funds Federal Prison System
0
-1,280
BA
125,523
502,968
513,155
580,218
585,980
66,921
* 66,818
191,526
133,739
191,526
Office of Justice Assistance
Federal funds
General and Special Funds:
Justice assistance
Appropriation, current
754
0
Total Justice assistance
155,437
BA
0
Outlays
130,954
* 66,398
180,017
125,523
155,437
197,352
180,017
Public Enterprise Funds:
Revolving fund
Outlays
754
0
Total Federal funds Office of Justice Assistance.. BA
0
Summary
Federal funds:
(As shown in detail above)
BA
0
Trust funds:
(As shown in detail above)
0
Total Department of Justice
BA
0
-72
209
125,523
155,365
197,352
180,226
133,739
191,526
3,045,587
2,850,142
• 3,445,831
3,436,761
3,674,627
3,748,392
3,445,831
3,436,761
3,674,627
3,748,392
65,922
65,922
67,895
-1,280
3,045,587
2,848,862
Department of Labor
Employment and Training Administration
Federal funds
General and Special Funds:
Program administration
Appropriation, current
Outlays
Total Program administration
See footnotes at end of table.
504
BA
92,217
0
86,894
82,739
D
538
85,598
BA
0
92,217
86,894
83,277
85,598
67,895
8-118
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Labor—Con.
Employment and Training Administration—
Con.
Training and employment services
Appropriation, current
504
Reappropriation
Outlays
BA
4,006,702
BA
0
3,724
3,857,533
BA
0
Community service employment for older Americans
504
Appropriation, current
BA
Total Training and employment services
Outlays..
0
Total Community service employment for older
Americans
BA
0
Temporary employment assistance
504
Outlays
Federal unemployment benefits and allowances
603
Appropriation, current
Outlays
State unemployment insurance and employment service operations:
(Training and employment)
504
(Appropriation, current)
(Outlays)
(Unemployment compensation)
603
(Outlays)
6,419,408
^-174,000
3,610,624
-87,000
J
3,582,508
-78,300
3,609,944
' -87,000
4,010,426
3,857,533
6,245,408
3,504,208
3,523,624
3,522,944
319,450
317,300
274,215
318,912
* 317,300
317,300
319,450
274,215
317,300
318,912
317,300
317,300
J
0
45,470
BA
0
230,000
232,856
12,000
22,000
56,000
56,000
BA
0
22,200
-5,450
72,500
69,731
23,500
29,250
0
15,482
4,307
22,200
10,032
72,500
74,038
23,500
29,250
BA
0
328,051
357,773
391,000
391,000
412,000
BA
0
10,730,949
11,685,700
6,718,000
4,027,000
1,230,000
Total Advances to the unemployment trust fund
and other funds
BA
0
11,059,000
12,043,473
7,109,000
4,418,000
1,642,000
Total State unemployment insurance and employment service operations
BA
0
Advances to the unemployment trust fund and other
funds:
(General retirement and disability insurance)
601
(Appropriation, current)
(Outlays)
(Unemployment compensation)
603
(Appropriation, current)
(Outlays)
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-119
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Labor—Con.
Employment and Training Administration—
Con.
Intragovernmental Funds:
Advances to the Employment Security Administration
account of the Unemployment trust fund 603
Outlays
0
Trust funds
Gifts and bequests
Appropriation, permanent, indefinite
Outlays
Unemployment trust fund:
(Training and employment)
(Appropriation, permanent, indefinite)
-303,000
-2,000
504
BA
0
10
82
44
10
11
504
BA
(Unemployment compensation)
(Appropriation, current, indefinite)
(Appropriation, permanent, indefinite)
799,762
1,398,685
914,490
0
(Outlays)
746,220
832,754
914,490
603
J
BA
BA
Total (Unemployment compensation)
26,701,315
78,600
26,785,510
0
(Outlays)
30,819,986
31,908,863
23,967,246
23,785,510
BA
30,819,986
26,701,315
26,864,110
0
31,908,863
23,967,246
23,785,510
BA
0
31,619,748
32,655,083
28,100,000
24,800,000
27,778,600
24,700,000
Total Federal funds Employment and Training
Administration
BA
15,733,293
13,839,485
3,986,346
16,550,473
8,119,756
5,633,389
31,619,748
28,100,010
27,778,610
32,655,127
24,800,082
24,700,011
58,077
62,136
61,186
Total Unemployment trust fund
0
Total Trust funds Employment and Training Administration
BA
0
Labor-Management Services Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
505
BA
D
0
Outlays
Total Salaries and expenses
51,236
580
61,456
61,038
BA
58,077
62,716
61,186
0
51,236
61,456
61,038
0
-9,515
Pension Benefit Guaranty Corporation
Federal funds
Public Enterprise Funds:
Pension Benefit Guaranty Corporation fund
Outlays
601
-16,867
-101,004
J
Total Pension Benefit Guaranty Corporation fund. 0
See footnotes at end of table.
420-000 O - 84 - 30 : QL 3
-9,515
-117,871
413
-154,469
J
-154,056
8-120
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Labor—Con.
Employment Standards Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
505
BA
0
173,162
164,879
188,483
183,767
191,982
190,062
BA
0
4,220
6,455
BA
Total Salaries and expenses
191,982
164,879
185,677
D
2,806
183,767
BA
0
Outlays
173,162
335,380
190,062
Special benefits:
(General retirement and disability insurance)
601
(Appropriation, current)
(Outlays)
(Federal employee retirement and disability)
4,100
4,100
4,400
4,400
602
(Appropriation, current)
216,000
207,000
-16,000
J
(Outlays)
0
Trust funds
Black lung disability trust fund
Appropriation, current
191,000
191,000
339,600
186,156
220,100
220,100
195,400
195,400
854,852
949,244
647
851,338
853,994
D
328
1
28,000
756
859,239
'28,000
BA
0
207,000
-16,000
855,499
851,338
883,078
887,239
950,000
950,000
BA
0
37,971
36,089
46,000
42,000
62,000
57,000
BA
0
512,762
351,035
408,583
403,867
387,382
385,462
BA
0
893,470
887,427
929,078
929,239
1,012,000
1,007,000
756
950,000
601
Total Federal funds Employment Standards Administration
Total Trust funds Employment Standards Administration
216,000
216,000
BA
0
Total Black lung disability trust fund
See footnotes at end of table.
335,380
179,701
J
601
Indefinite
Outlays
Special workers' compensation expenses
Appropriation, permanent, indefinite
Outlays
BA
0
BA
Total Special benefits
216,000
BA
0
Total (Federal employee retirement and disability)
179,701
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-121
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Labor—Con.
Occupational Safety and Health
Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Indefinite
Outlays
554
BA
BA
0
BA
0
206,649
200,189
210,860
215,369
217,752
217,035
BA
0
152,435
151,228
151,397
153,004
150,550
150,864
BA
0
121,743
120,847
136,587
135,278
146,860
145,889
BA
94,264
95,059
0
95,186
D
955
95,914
99,509
BA
0
94,264
95,186
96,014
95,914
99,730
99,509
BA
38,133
24,630
37,707
D
293
35,883
39,465
0
BA
0
Total Salaries and expenses
206,649
38,133
24,630
38,000
35,883
39,465
38,571
200,189
212,560
" -1,700
216,814
// _1,445
217,752
217,205
« — 170
Mine Safety and Health Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
554
Bureau of Labor Statistics
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
505
Departmental Management
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
505
Outlays
Total Salaries and expenses
Office of the Inspector General
Appropriation, current
505
Outlays
Total Office of the Inspector General
Special foreign currency program
Appropriation, current
Outlays
See footnotes at end of table.
98,601
1,129
K
38,571
505
BA
0
67
89
67
67
200
200
8-122
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS
LISTING (in thousands of
dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Labor—Con.
Departmental
Management—Con.
Intragovernmental Funds:
Working capital fund
Outlays
505
0
-8,333
BA
0
132,464
111,572
134,081
131,864
139,395
138,280
BA
0
16,917,423
17,527,065
14,943,709
9,102,723
5,089,471
6,577,901
BA
0
16,771,177
17,380,819
14,569,709
8,728,723
4,532,471
6,020,901
BA
0
32,513,218
33,542,554
29,029,088
25,729,321
28,790,610
25,707,011
908 BA
Q
onn
onn
— oZl
—oUU
—JUU
BA
0
32,512,897
33,542,233
29,028,788
25,729,021
28,790,310
25,706,711
Q A -12,513,247
-7,004,450
-4,945,300
36,203,047
27,062,294
27,965,481
26,370,312
1,112,710
A
25,840
D
10,196
1,141,438
^ 12,920
1,311,300
1,291,799
A
12,920
Total Federal funds Departmental Management...
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
908
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
Total Trust funds
Interfund transactions
BA
601
603
Total Department of Labor
001
BA
BA
0
36,413,054
38,052,032
Department of State
Administration of Foreign Affairs
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
153
BA
0
Total Salaries and expenses
Representation allowances
Appropriation, current
Outlays
See footnotes at end of table.
1,052,134
BA
0
Outlays
1,013,726
1,013,726
1,052,134
1,148,746
1,154,358
1,311,300
1,304,719
BA
0
3,876
3,930
4,148
4,103
4,500
4,410
153
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-123
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of State—Con.
Administration of Foreign Affairs—Con.
Protection of foreign missions and officials
153
Appropriation, current
BA
Outlays
0
Acquisition, operation, and maintenance of buildings
abroad
153
Appropriation, current
BA
* 9,500
*7,695
235,607
161,848
8,760
215,349
*760
185,929
^8,000
BA
215,296
198,760
235,607
0
Total Acquisition, operation, and maintenance of
buildings abroad
190,000
0
Outlays
215,296
161,848
216,109
193,929
A
Acquisition, operation, and maintenance of buildings
abroad (special foreign currency program)
153
Appropriation, current
BA
Outlays
0
Outlays
10,012
23,353
16,806
18,911
BA
0
4,400
2,691
4,356
3,683
4,400
4,355
BA
15,494
4,600
BA
8,744
9,380
0
Emergencies in the diplomatic and consular service
153
Appropriation, current
Outlays
Buying power maintenance
153
Appropriation, current
Payment to the American Institute in Taiwan
153
Appropriation, current
8,360
13,993
8,054
9,221
Payment to the Foreign Service retirement and disability fund
153
Appropriation, current
BA
95,970
9,875
9,751
103,791
M,628
106,738
J
Appropriation, permanent, indefinite
BA
218,500
219,600
Outlays
0
314,470
323,391
^ 4,628
-77,900
221,400
328,138
^-77,900
Total Payment to the Foreign Service retirement
and disability fund
I ntragovernmental Funds:
Working capital fund
Appropriation, current
Outlays
See footnotes at end of table.
BA
314,470
328,019
250,238
0
314,470
328,019
250,238
BA
0
976
-1,562
-67
57
153
8-124
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of State—Con.
Administration of Foreign Affairs—Con.
Trust funds
Foreign Service retirement and disability fund
Appropriation, current
Indefinite
Appropriation, permanent, indefinite
Outlays
602
A
BA
BA
BA
0
8,523
566,794
198,863
583,538
209,144
-78,800
598,010
220,996
J
-9,200
BA
0
566,794
198,863
592,061
209,144
519,210
211,796
J
Total Foreign Service retirement and disability
fund
Miscellaneous trust funds
Appropriation, permanent, indefinite
Outlays
153
BA
0
1,656
1,730
1,849
1,736
1,800
1,800
Total Federal funds Administration of Foreign
Affairs
BA
0
1,585,342
1,555,558
1,708,021
1,732,232
1,848,773
1,794,065
Total Trust funds Administration of Foreign Affairs
BA
0
568,450
200,593
593,910
210,880
521,010
213,596
520,515
-4,723
525,506
A
-4,723
522,570
International Organizations and Conferences
Federal funds
General and Special Funds:
Contributions to international organizations
Appropriation, current
153
BA
436,204
0
414,278
BA
0
436,204
414,278
515,792
520,783
522,570
523,102
Contributions for international peacekeeping activities
153
Appropriation, current
BA
73,400
66,279
^ —10,879
73,676
*-10,879
55,400
55,400
62,797
55,400
55,400
Outlays
Total Contributions to international organizations
Outlays
0
Total Contributions for international peacekeeping activities
BA
0
Missions to international organizations
Outlays
International conferences and contingencies
Appropriation, current
Outlays
International trade negotiations
Outlays
See footnotes at end of table.
60,903
73,400
60,903
A
523,102
55,400
153
0
-27
BA
0
9,200
6,499
153
153
0
- 5
8,910
9,856
10,195
9,788
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-125
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of State—Con.
International Organizations and
Conferences—Con.
Trust funds
Gifts and bequests, National Commission on Educational, Scientific, and Cultural Cooperation
153
Appropriation, permanent, indefinite
BA
Outlays
0
Total Federal funds International Organizations
and Conferences
BA
0
Total Trust funds International Organizations and
Conferences
BA
0
43
75
518,804
481,648
43
75
43
51
580,102
593,436
43
51
50
50
588,165
588,290
50
50
International Commissions
Federal funds
General and Special Funds:
International Boundary and Water Commission, United
States and Mexico:
Salaries and expenses
301
Appropriation, current
BA
Outlays
0
8,477
10,651
D
125
10,828
Total Salaries and expenses
BA
0
8,928
8,477
10,776
10,828
BA
0
7,875
BA
2,918
0
Construction
Appropriation, current
Outlays
American sections, international commissions
Appropriation, current
672
2,700
2,143
1,830
3,814
2,733
3,426
D
38
3,459
2,918
2,733
3,464
3,459
3,814
3,809
8,526
8,213
8,876
8,899
9,482
9,482
23,788
25,886
27,513
26,936
3,809
302
Total Federal funds International Commissions
12,074
11,815
11,815
301
Total American sections, international commissions
BA
0
See footnotes at end of table.
12,074
301
Outlays
International fisheries commissions
Appropriation, current
Outlays
8,928
BA
0
BA
0
20,372
27,298
8-126
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of State—Con.
Other
Federal funds
General and Special Funds:
Migration and refugee assistance
Appropriation, current
151
B
A
341,450
321,147
323,000
14,650
345,190
* 7,325
BA
0
375,000
321,147
337,650
352,515
341,450
359,968
United States emergency refugee and migration assistance fund
151
0
Outlays
International narcotics control
151
BA
Appropriation, current
-1,980
3,000
3,000
36,700
41,200
0
36,560
37,749
* 50,217
42,841
BA
0
36,700
36,560
41,200
37,749
50,217
42,841
Outlays..
Total Migration and refugee assistance-
Outlays
Total International narcotics control
Anti-terrorism assistance
Appropriation, current..
375,000
A
352,643
A
7,325
152
Outlays
Total Anti-terrorism assistance..
BA
2,500
0
2,000
5,000
4,500
BA
0
2,500
2,000
5,000
4,500
1,683
1,683
2,000
2,000
U.S. bilateral science and technology agreements
153
Appropriation, current
Outlays
Compact of free association
151
Appropriation, current
Outlays
Soviet-East European research and training
153
Appropriation, current
Outlays
Payment to the Asia Foundation
153
Appropriation, current
Outlays
Special assistance to refugees from Cambodia and
Vietnam
609
Outlays
International Center, Washington, D.C.
153
Appropriation, permanent, indefinite
Outlays
Total Federal funds Other
See footnotes at end of table.
BA
0
1,700
1,700
J
BA
0
295,490
' 295,490
BA
0
BA
0
5,000
5,000
7,000
4,751
9,900
12,400
10,000
10,000
60
BA
0
200
247
4,250
4,183
775
900
BA
0
420,600
362,485
397,183
413,530
709,932
723,699
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-127
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of State—Con.
Summary
Federal funds:
(As shown in detail above)
BA
0
_m
_^^
2,544,918
2,426,789
2,704,844
2,760,834
3,173,608
3,132,215
BA
0
568,493
200,668
593,953
210,931
521,060
213,646
564,937
197,112
590,453
207,431
517,560
210,146
2,758,807
2,272,853
2,926,805
2,599,773
3,406,727
3,057,920
14,066
13,765
153 BA
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
2,709,094
2,765,084
BA
0
Deductions for offsetting receipts:
Proprietary receipts from the public
2,545,118
2,426,989
3,174,383
3,132,990
_??5
602 BA
Total Trust funds
BA
0
Interfund transactions
153 BA
I"
83 B
0 A
Q
Total Department of State
BA
0
Department of Transportation
Federal Highway Administration
Federal funds
General and Special Funds:
Motor carrier safety
Appropriation, current
401
Outlays
Total Motor carrier safety
Highway beautification
401
Appropriation, current
Outlays
Railroad-highway crossings demonstration projects
401
Appropriation, current
Outlays
See footnotes at end of table.
BA
11,800
0
13,871
13,020
D
114
14,074
BA
0
11,800
13,871
13,134
14,074
14,066
13,765
BA
0
500
4,754
12,763
9,572
BA
0
5,476
5,000
6,745
7,326
8-128
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Department of Transportation—Con.
Federal Highway Administration—Con.
Access highways to public recreation areas on certain
lakes
401
Appropriation, current
BA
Reappropriation
BA
Outlays
0
6,518
3,727
10,272
10,910
Total Access highways to public recreation areas
on certain lakes
BA
0
6,518
3,727
4,270
10,272
10,910
313,107
122,265
Sandhill crane wildlife refuge
Outlays
Interstate transfer grants - highways
Appropriation, current
Outlays
Miscellaneous appropriations
Appropriation, current
Reappropriation
Outlays
303
0
BA
0
Trust funds
Federal-aid highways (trust fund)
Contract authority, current
Contract authority, permanent
Liquidation of contract authority, current
Outlays
BA
BA
0
See footnotes at end of table.
41,568
36,474
36,465
37,224
6,800
41,568
36,474
6,800
401
BA
0
80,000
4,000
401
BA
BA
0
11,725,403
953,896
(8,500,000)
8,718,244
13,906,563
(11,600,000)
10,906,000
14,644,821
(12,800,000)
12,985,000
BA
0
12,679,299
8,718,244
13,906,563
10,906,000
14,644,821
12,985,000
BA
BA
BA
-9,623
-56
9,869
(22,998)
13,018
9,802
(9,738)
11,318
9,802
(5,000)
12,115
BA
0
190
13,018
9,802
11,318
9,802
12,115
BA
0
9,007
10,000
15,206
14,981
BA
0
7,700
5,733
8,500
9,193
10,325
10,681
8,000
7,200
16,000
15,200
401
0
Total Highway-related safety grants
Trust fund share of other highway programs
Appropriation, current
Outlays
Highway safety research and development
Appropriation, current
Outlays
Motor carrier safety grants
Appropriation, current
Outlays
36,000
465
37,224
BA
0
Total Federal-aid highways (trust fund)
Highway-related safety grants
Contract authority, current
Indefinite
Contract authority, permanent
Liquidation of contract authority, current
Outlays
518,000
172,000
401
Total Miscellaneous appropriations
Appalachian highway system
Appropriation, current
Outlays
-98
401
401
401
401
BA
0
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-129
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Transportation—Con.
Federal Highway Administration—Con.
Miscellaneous trust funds
151
Appropriation, permanent
BA
Liquidation of contract authority, permanent
Outlays
0
Miscellaneous trust funds-Highway
401
Outlays
0
Right-of-way revolving fund (trust revolving
fund)
401
Outlays
0
-47,480
Total Federal funds Federal Highway Administration
BA
0
Total Trust funds Federal Highway Administration
BA
0
5,566
(159)
5,712
9,741
(959)
10,146
8,820
7,962
4,828
3,937
573,283
236,954
29,204
398,529
94,066
204,312
12,692,755
8,712,196
13,952,606
10,963,891
14,689,768
13,051,273
BA
52,315
62,697
0
51,088
56,116
D
218
54,277
BA
0
52,315
51,088
56,334
54,277
62,697
57,041
3,000
2,000
27,460
24,171
21,884
D
109
24,254
21,685
24,171
21,993
24,254
27,460
25,650
141,233
(106,552)
106,200
148,100
(118,000)
125,400
148,100
(132,000)
132,000
Total Federal funds National Highway Traffic
Safety Administration
BA
0
52,315
58,274
56,334
57,277
62,697
59,041
Total Trust funds National Highway Traffic
Safety Administration
BA
0
162,918
130,371
170,093
149,654
175,560
157,650
9,359
National Highway Traffic Safety
Administration
Federal funds
General and Special Funds:
Operations and research
Appropriation, current
401
Outlays
Total Operations and research
Miscellaneous safety programs
Outlays
401
Trust funds
Highway safety research and development
Appropriation, current
57,041
401
0
BA
Outlays
0
Total Highway safety research and development. BA
0
Highway traffic safety grants
Contract authority, permanent
Liquidation of contract authority, current
Outlays
See footnotes at end of table.
7,186
21,685
25,650
401
BA
0
8-130
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Transportation—Con.
Federal Railroad Administration
Federal funds
General and Special Funds:
Office of the Administrator
Appropriation, current
Outlays
Railroad research and development
Appropriation, current
Outlays
Rail service assistance
Appropriation, current
401
BA
0
31,675
8,357
713
52,478
25,094
M45
515
80,813
M45
BA
0
32,388
52,478
25,754
80,958
BA
28,000
28,900
0
25,840
30,995
BA
0
28,000
25,840
28,900
BA
10,000
0
50,727
51,000
M0,000
80,157
A
15,000
22,000
*10,000
BA
0
10,000
50,727
61,000
95,157
15,000
32,000
0
135,176
92
45,507
8,357
45,507
401
30,995
* 26,691
26,691
26,691
26,691
603
Total Conrail labor protection..
15,000
401
401
A
0
86,505
86,505
16,721
23,105
23,105
A
16,721
BA
0
86,505
86,505
39,826
39,826
BA
0
115,000
296,039
100,000
310,000
BA
BA
Outlays
Total Settlements of railroad litigation
15,653
18,478
BA
0
Outlays..
See footnotes at end of table.
16,225
21,970
BA
Total Railroad safety
Northeast corridor improvement program
Appropriation, current
Outlays
17,000
18,546
401
Outlays
Commuter rail service
Outlays
Settlements of railroad litigation
Appropriation, current
Authority to borrow, current
11,051
13,171
BA
0
Total Rail service assistance
Conrail labor protection
Appropriation, current
11,680
11,374
401
Authority to borrow, current
Outlays
Railroad safety
Appropriation, current
13,000
11,504
401
266,100
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-131
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Transportation—Con.
Federal Railroad Administration—Con.
Grants to National Railroad Passenger Corporation
401
Appropriation, current
BA
"680,000
A
Authority to borrow, current
Outlays
108,793
1,119,636
1,880,966
A
108,793
BA
0
665,428
Total Grants to National Railroad Passenger Corporation
BA
0
780,000
665,428
1,944,829
1,989,759
7,600
13,870
146
738,200
680,000
738,200
Public Enterprise Funds:
Alaska Railroad revolving fund
401
Appropriation, current
BA
Outlays
0
Railroad rehabilitation and improvement financing
funds
401
Appropriation, current
BA
Authority to borrow, current
BA
Outlays
0
5,749
50,859
Total Railroad rehabilitation and improvement
financing funds
BA
0
Total Federal funds Federal Railroad Administration
BA
0
*66
67,500
*66
15,830
5,749
50,859
66
67,566
15,830
1,095,242
1,406,972
2,228,280
2,647,843
756,752
1,155,977
1,691,650
(677,197)
1,060,491
1,264,577
1,041,408
BA
28,407
29,200
31,487
0
26,253
29,931
31,283
BA
0
28,407
26,253
29,446
29,931
31,487
31,283
BA
0
58,250
38,836
54,800
75,023
44,800
58,795
BA
0
412,000
219,223
295,400
401,992
250,000
413,969
Urban Mass Transportation Administration
Federal funds
General and Special Funds:
Urban mass transportation fund
Appropriation, current
Liquidation of contract authority, current
Outlays
Administrative expenses
Appropriation, current
401
BA
0
401
Outlays...
Total Administrative expenses
Research, training, and human resources
Appropriation, current
Outlays
Interstate transfer grants-transit
Appropriation, current
Outlays
See footnotes at end of table.
401
401
8-132
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Transportation—Con.
Urban Mass Transportation Administration—
Con.
Washington metro
Appropriation, current
Outlays
Formula grants
Appropriation, current
Outlays
401
BA
0
240,000
250,000
63,000
250,000
138,200
BA
0
1,268,500
2,360,589
2,388,592
1,831,753
2,389,500
1,736,038
779,000
(55,000)
3,131
1,250,000
(242,000)
203,463
1,100,000
(450,000)
502,281
3,018,238
3,666,276
2,965,787
3,419,693
1,250,000
203,463
1,100,000
502,281
958,844
401
Trust funds
Discretionary grants
401
Contract authority, permanent
BA
Liquidation of contract authority, permanent
Outlays
0
r
Total Federal funds Urban Mass Transportation
Administration
BA
0
Total Trust funds Urban Mass Transportation
Administration
BA
0
3,698,807
3,705,392
779,000
3,131
Federal Aviation Administration
Federal funds
General and Special Funds:
Operations
Appropriation, current
402
BA
0
Total Operations
Facilities, engineering and development
402
Appropriation, current
Outlays
Operation and maintenance, Metropolitan Washington
Airports
402
Appropriation, current
Outlays
Construction, Metropolitan Washington Airports
402
Appropriation, current
Outlays
1,474,495
2,556,900
D
42,432
2,352,133
BA
0
Outlays
1,301,777
1,301,777
1,474,495
2,599,332
2,352,133
958,844
902,580
BA
0
18,255
14,605
8,236
1,648
BA
0
31,955
32,442
34,557
33,956
35,932
34,882
BA
0
11,080
13,597
14,250
24,367
13,500
18,280
-2,018
-2,878
-2,642
902,580
Public Enterprise Funds:
Aviation insurance revolving fund
Outlays
See footnotes at end of table.
402
0
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-133
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Transportation—Con.
Federal Aviation Administration—Con.
General and Special Funds:
Aircraft purchase loan guarantee program
Appropriation, current
Authority to borrow, current
Outlays
402
4
BA
BA
0
102,490
79,000
Total Aircraft purchase loan guarantee program.. BA
0
102,490
79,000
Trust funds
Grants-in-aid for airports (Airport and airway trust
fund)
402
Appropriation, current
Contract authority, current
Contract authority, permanent
Reappropriation
Liquidation of contract authority, current
Outlays
BA
BA
BA
BA
7,750
23,490
7,750
A
7,750
31,240
-7,450
200,000
600,000
7,450
(234,000)
452,863
993,500
987,000
(745,000)
800,000
(810,000)
810,000
800,000
452,863
993,500
800,000
987,000
810,000
BA
0
625,000
247,538
750,000
400,000
1,657,000
653,000
BA
0
103,000
71,203
263,452
192,344
269,000
252,000
BA
0
1,276,680
1,020,017
256,688
1,763,360
1,763,360
Total Federal funds Federal Aviation Administration
BA
0
1,465,557
1,612,121
2,655,889
2,447,054
1,008,276
954,748
Total Trust funds Federal Aviation Administration BA
0
2,804,680
1,791,621
2,006,952
1,649,032
4,676,360
3,478,360
0
Total Grants-in-aid for airports (Airport and
airway trust fund)
BA
0
Facilities and equipment (Airport and airway trust
fund)
402
Appropriation, current
Outlays
Research, engineering and development (Airport and
airway trust fund)
402
Appropriation, current
Outlays
Operations (Airport and airway trust fund)
402
Appropriation, current
Outlays
See footnotes at end of table.
8-134
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
- Account and functional code
1984
estimate
1985
estimate
Department of Transportation—Con.
Coast Guard
Federal funds
General and Special Funds:
Operating expenses
Appropriation, current
403
BA
1,603,798
1,668,542
* 1,758,869
* 6,258
10,540
G
6,542
1,655,582
* 6,258
E
Outlays
0
BA
0
Acquisition, construction, and improvements
Appropriation, current
Outlays
1,603,798
1,561,584
1,691,882
1,661,840
BA
400,000
669,000
0
483,990
510,000
362,000
580,000
400,000
483,990
669,000
510,000
362,000
580,000
BA
12,700
8,600
0
BA
0
5,487
12,700
5,487
12,000
8,600
12,000
BA
Total Operating expenses
1,561,584
305,350
328,750
-6,258
- 2,592
^_ 4,500
326,158
*-6,258
L
-4,500
Total Acquisition, construction, and improvements
BA
0
K
403
Outlays
Total Alteration of bridges..
Retired pay
Appropriation, current
1,758,869
1,698,276
403
.
Alteration of bridges
Appropriation, current
1,698,276
* 5,200
10,000
5,200
10,000
403
342,000
A
F
Outlays
0
292,238
_____
Total Retired pay
Reserve training
Appropriation, current
Outlays
Total Reserve training
See footnotes at end of table.
^-7,200
342,000
L
-7,200
BA
0
305,350
292,238
315,400
315,400
334,800
334,800
BA
54,000
54,805
0
52,901
G
550
55,355
11,945
* 46,888
BA
0
54,000
52,901
55,355
55,355
403
58,833
58,833
58,833
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-135
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Department of Transportation—Con.
Coast Guard—Con.
Research, development, test, and evaluation
Appropriation, current
403
BA
20,000
22,500
0
23,119
18,000
* 23,500
23,000
Total Research, development, test, and evaluaBA
tion..
0
20,000
23,119
22,500
18,000
23,500
23,000
National recreational boating safety and facilities improvement fund
403
Appropriation, current
BA
Contract authority, permanent
BA
Liquidation of contract authority, current
Outlays
0
5,000
45,000
(7,500)
5,095
45,000
(12,500)
12,500
45,000
(14,750)
15,000
Total National recreational boating safety and
facilities improvement fund
BA
0
50,000
5,095
45,000
12,500
45,000
15,000
7,257
7,000
7,000
7,000
7,000
1,000
1,000
1,000
1,000
1,000
1,000
Outlays
Pollution fund
Appropriation, permanent, indefinite
Outlays
Offshore oil pollution compensation fund
Appropriation, current
Indefinite
Outlays
304
BA
0
2,902
304
BA
BA
0
1,000
Total Offshore oil pollution compensation fund.... BA
0
1,141
1,000
1,141
1,000
1,000
BA
BA
0
1,000
1,000
-15
1,000
1,000
1,000
BA
0
1,000
-15
1,000
1,000
1,000
1,000
Deepwater port liability fund
Appropriation, current
Indefinite
Outlays
304
Total Deepwater port liability fund
Intragovernmental Funds:
Coast Guard supply fund
Outlays
Coast Guard yard fund
Outlays
403
3,622
0
Trust funds
Coast Guard general gift fund
Appropriation, permanent, indefinite
Outlays
See footnotes at end of table.
420-000 0 - 8 4 - 3 1
40
0
403
: QL 3
-25,843
-2,223
5,000
49
-6
80
50
80
50
403
BA
0
8-136
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Transportation—Con.
Coast Guard—Con.
Miscellaneous trust revolving funds
Outlays
403
-7
2
5
2
5
Total Federal funds Coast Guard
BA
0
2,455,105
2,406,221
2,816,737
2,592,272
2,597,202
2,733,909
Total Trust funds Coast Guard
BA
0
49
-13
7
5
7
5
BA
0
25,000
84,511
23,280
BA
339,689
(400,036)
352,500
(352,500)
0
368,194
367,500
BA
15,300
11,385
0
13,466
18,362
* 3,000
11,518
BA
0
15,300.
13,466
11,385
18,362
3,000
11,518
BA
78,113
73,283
0
73,482
84,983
* 72,730
74,258
BA
0
78,113
73,482
73,283
84,983
72,730
74,258
13,789
26,300
-43,500
-768
-950
-950
242
121
385
385
385
385
Maritime Administration
Federal funds
General and Special Funds:
Ship construction
Appropriation, current
Outlays
Operating-differential subsidies
Contract authority, permanent, indefinite
Liquidation of contract authority, current
Outlays
Research and development
Appropriation, current
403
403
* (377,750)
387,750
403
Outlays..
Total Research and development
Operations and training
Appropriation, current
377,750
403
Outlays
Total Operations and training
Public Enterprise Funds:
Federal ship financing fund
Outlays
Vessel operations revolving fund
Outlays
War risk insurance revolving fund
Outlays
Trust funds
Special studies, services and projects
Appropriation, permanent, indefinite
Outlays
See footnotes at end of table.
403
403
- 4 002
403
0
403
BA
0
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-137
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Transportation—Con.
Maritime Administration—Con.
Gifts and bequests
403
Appropriation, permanent, indefinite
BA
Outlays
0
Total Federal funds Maritime Administration
BA
0
Total Trust funds Maritime Administration
BA
0
14
4
458,102
548,672
15
15
437,168
519,475
15
15
453,480
429,076
256
125
400
400
400
400
Saint Lawrence Seaway Development
Corporation
Federal funds
Public Enterprise Funds:
Saint Lawrence Seaway Development Corporation
403
Outlays
Limitation on administrative expenses
0
-1,748
(1,740)
(1,800)
(1,822)
27,306
Office of the Inspector General
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
407
BA
0
25,355
22,385
27,205
28,852
27,306
27,305
BA
20,022
20,200
0
19,453
20,398
3,323
* 15,300
18,945
BA
0
Total Salaries and expenses
22,385
26,795
°410
28,852
BA
0
Outlays
25,355
20,022
19,453
20,200
20,398
18,623
18,945
-7,332
20,514
22,500
20,022
12,121
20,200
40,912
18,623
41,445
27,305
Research and Special Programs
Administration
Federal funds
General and Special Funds:
Research and special programs
Appropriation, current
407
Outlays
Total Research and special programs
Intragovernmental Funds:
Working capital
Center
Outlays
fund,
Transportation
Systems
407
0
Total Federal funds Research and Special Programs Administration
BA
0
See footnotes at end of table.
8-138
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of Transportation—Con.
Office of the Secretary
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current..
407
BA
0
Total Salaries and expenses..
40,196
BA
0
Outlays
39,400
39,400
40,196
41,275
D
450
50,009
42,191
41,725
50,009
42,191
42,368
42,368
Activities transferred from Civil Aeronautics Board
402
Appropriation, current
Outlays
Transportation planning, research, and development
407
Appropriation, current
Outlays
Transportation research activities overseas (special
foreign currency program)
407
Outlays
Intragovernmental Funds:
Limitation on Working capital fund
Outlays
Trust funds
Gifts and bequests
Appropriation, permanent, indefinite..
51,646
51,646
BA
0
BA
0
4,900
4,013
4,878
6,901
6,754
5,936
19
407
2,143
407
BA
Total Federal funds Office of the Secretary
BA
0
Total Trust funds Office of the Secretary
44,300
46,352
46,603
56,929
100,591
99,950
9,888,088
10,053,716
11,335,858
12,455,419
8,084,780
9,125,456
-2,492
-3,852
-4,507
-6000
-6000
-43,768
-47,700
-52,900
-11,176
-19,013
-21,682
BA
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
BA
O
908 BA
O
A
304 B
402
CD OO C
Proprietary receipts from the public
403 BA
908
Total Federal funds
See footnotes at end of table.
0
BA
0
BA
0
-1
9,830,651
9,996,279
11,259,293
12,378,854
7,999,691
9,040,367
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-139
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Department of Transportation—Con.
Summary—Con.
Trust funds:
(As shown in detail above)..
BA
0
Deductions for offsetting receipts:
Proprietary receipts from the public
1 1 BA
5
0
4 1 BA
0
0
4 3 BA
0
98
0
o
BA
0
16,439,658
10,637,431
17,380,132
12,966,515
20,642,168
17,190,039
-4,295
-9,721
-8,200
-1,430
-968
-609
-242
-385
-385
-27
Total Trust funds
BA
0
16,433,664
10,631,437
17,369,058
12,955,441
20,632,974
17,180,845
Total Department of Transportation
BA
0
26,264,315
20,627,716
28,628,351
25,334,295
28,632,665
26,221,212
84,242
Department of the Treasury
Office of the Secretary
Federal funds
General and Special Funds:
Salaries and expenses
803
Appropriation, current
BA
62,409
0
57,997
65,743
c41
1,368
67,400
BA
0
62,409
57,997
67,152
67,400
84,242
81,989
BA
0
35,527
11,720
40,000
121,409
43,000
1,113
0
-517,577
-221,269
-218,225
0
-387
107,152
-32,460
127,242
-135,123
D
Outlays
Total Salaries and expenses
Presidential election campaign fund
Appropriation, permanent, indefinite
Outlays
81,989
806
Public Enterprise Funds:
Exchange stabilization fund
Outlays
155
Intragovernmental Funds:
Working capital fund
Outlays
Total Federal funds Office of the Secretary
See footnotes at end of table.
803
BA
0
97,936
-448,247
8-140
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of the Treasury—Con.
Office of Revenue Sharing
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
851
BA
7,278
D
150
7,941
BA
0
400
5,999
7,668
7,788
BA
0
7,267
5,999
7,428
7,668
7,941
7,788
BA
0
4,566,700
4,566,700
4,566,700
4,566,700
4,566,700
4,566,700
BA
0
4,566,700
4,614,383
4,566,700
4,566,700
4,566,700
4,566,700
Total Federal funds Office of Revenue Sharing.... BA
0
4,573,967
4,572,699
4,574,128
4,574,368
4,574,641
4,574,488
Total Trust funds Office of Revenue Sharing
BA
0
4,566,700
4,614,383
4,566,700
4,566,700
4,566,700
4,566,700
BA
12,803
16,964
16,964
16,794
Reappropriation
Outlays
Total Salaries and expenses
Payments to State and local government fiscal assistance trust fund
851
Appropriation, current
Outlays
Trust funds
State and local government fiscal assistance trust
fund
851
Appropriation, permanent, indefinite
Outlays
6,867
Federal Law Enforcement Training Center
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
0
Total Salaries and expenses
13,334
BA
0
Outlays
14,481
D
183
14,599
12,803
13,334
14,664
14,599
Construction, Federal Law Enforcement Training
Center
751
Outlays
0
Total Federal funds Federal Law Enforcement
Training Center
BA
0
2,717
4,531
16,794
623
12,803
16,051
14,664
19,130
16,964
17,417
243,946
233,930
239,995
235,195
239,908
235,110
Bureau of Government Financial Operations
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
New York City loan guarantee program
Outlays
See footnotes at end of table.
803
BA
0
852
0
50
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-141
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
aciual
Account and functional code
1984
estimate
1985
estimate
Department of the Treasury—Con.
Bureau of Government Financial
Operations—Con.
Chrysler Corporation loan guarantee program
Appropriation, current
Outlays
Claims, judgments, and relief acts
Appropriation, permanent, indefinite
Outlays
Advances to the railroad retirement account
Appropriation, permanent, indefinite
Outlays
Interest on uninvested funds
Appropriation, current, indefinite
Appropriation, permanent, indefinite
Outlays
376
BA
0
BA
0
Intragovernmental
562,714
562,806
256,900
256,993
BA
0
1,133,000
1,133,000
525,000
525 000
BA
BA
0
13,805
13,292
17,323
17,323
-10
18,711
18,711
'-10
BA
0
13,805
13,292
17,323
17,323
18,701
18,701
90
10
4
10
4
495
485 .
.
806
384,400
384,400
601
908
Total Interest on uninvested funds
Payment of Government losses in shipment
Outlays
Postal savings system liquidation
Appropriation, current
Outlays
Energy security reserve
Outlays
Biomass energy development
Outlays
1,211
655
y
803
0
806
A
BA
0
1,000
*750
^250
271
0
14,967
66,597
162,431
0
872
96
0
950
7
1
4
7
271
Funds:
Fishermen's protective fund
Outlays
Trust funds
Miscellaneous trust funds:
(Other veterans benefits and services)
(Appropriation, permanent, indefinite)
(Outlays)
(Other general government)
(Appropriation, permanent, indefinite)
(Outlays)
376
0
17 .
.
705
BA
0
1
1
BA
0
73
58
1
8
5
9
1
8
BA
0
84
58
25
7
3
2
5
2
5
Total Federal funds Bureau of Government Financial Operations
BA
0
1,954,676
1,959,679
1,040,713
1,103,389
643,009
801,982
Total Trust funds Bureau of Government Financial Operations
BA
0
84
5
8
25
7
3
25
2
5
Total Miscellaneous trust funds
See footnotes at end of table.
7
806
1
8
8-142
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of the Treasury—Con.
Bureau of Alcohol, Tobacco and Firearms
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
BA
0
147,492
141,682
159,553
156,354
161,771
158,539
BA
571,317
567,097
584,943
C
37
D
9,924
585,632
585,335
0
BA
0
Total Salaries and expenses
161,771
141,682
157,260
D
2,293
156,354
BA
0
Outlays
147,492
571,317
567,097
594,904
585,632
585,335
577,053
31,000
32,808
17,070
16,216
76,000
76,000
78,000
78,000
6,000
6,000
6,500
6,500
701,904
694,440
680,405
671,269
6,000
6,000
6,500
6,500
-5,036
3,000
158,539
United States Customs Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
Outlays
Total Salaries and expenses
Operation and maintenance, air interdiction program
751
Appropriation, current
Outlays
Miscellaneous permanent appropriations
852
Appropriation, permanent, indefinite
Outlays
BA
0
BA
0
Trust funds
Refunds, transfers and expenses, unclaimed, abandoned and seized goods
803
Appropriation, permanent, indefinite
BA
Outlays
0
Total Federal funds United States Customs Service
BA
0
Total Trust funds United States Customs Service
BA
0
3,750
102
71,963
75,788
5,583
5,541
647,030
642,987
5,583
5,541
577,053
Bureau of Engraving and Printing
Federal funds
Intragovernmental Funds:
Bureau of Engraving and Printing fund
Outlays
See footnotes at end of table.
803
0
-11,653
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-143
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of the Treasury—Con.
Bureau of the Mint
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
803
BA
Expansion and improvements
Appropriation, current
Outlays
Coinage profit fund
Appropriation, permanent, indefinite
Outlays
44,077
48,058
* 47,758
46,803
BA
0
47,558
44,077
49,000
48,058
47,758
46,803
BA
0
5,200
2,963
3,070
7,002
4,135
BA
0
94,451
93,802
297,203
297,203
105,956
105,956
BA
0
147,209
140,842
349,273
352,263
153,714
156,894
BA
0
199,934
166,516
196,427
192,315
197,955
193,996
BA
Total Salaries and expenses
49,000
0
Outlays
47,558
130,686
104,687
803
803
Total Federal funds Bureau of the Mint
Bureau of the Public Debt
Federal funds
General and Special Funds:
Administering the public debt
Appropriation, current
Outlays
803
Internal Revenue Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
803
0
Processing tax returns
Appropriation, current
Total Examinations and appeals
See footnotes at end of table.
104,687
102,593
968,619
893,404
929,000
13,150
946,894
1,002,457
0
BA
0
Total Processing tax returns
Outlays
101,494
99,464
968,619
893,404
942,150
946,894
1,002,457
982,408
BA
1,088,305
1,357,073
0
1,068,881
1,232,000
D
26,310
1,233,144
BA
0
1,088,305
1,068,881
1,258,310
1,233,144
1,357,073
1,329,932
102,593
803
Outlays
Examinations and appeals
Appropriation, current
130,686
127,602
BA
Total Salaries and expenses
127,602
BA
0
Outlays
99,800
1,694
99,464
D
D
982,408
803
1,329,932
8-144
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of the Treasury—Con.
Internal Revenue Service—Con.
Investigation, collection and taxpayer service
Appropriation, current
803
BA
855,402
Outlays
0
Total Investigation, collection and taxpayer service
BA
0
Payment where energy credit exceeds liability for
tax
271
Appropriation, current
Outlays
Payment where credit exceeds liability for tax 609
Appropriation, permanent, indefinite
Outlays
Refunding internal revenue collections, interest
908
Appropriation, permanent, indefinite
Outlays
Internal revenue collections for Puerto Rico
852
Appropriation, permanent, indefinite
Outlays
BA
0
1,067,642
817,133
1,004,000
»19,676
1,003,202
855,402
817,133
1,023,676
1,003,202
1,067,642
1,046,289
300
-122
200
200
1,046,289
100
100
BA
0
1,213,292
1,213,292
1,123,000
1,123,000
1,044,000
1,044,000
BA
0
1,953,820
1,953,820
1,514,000
1,514,000
1,479,000
1,479,000
BA
0
326,429
316,419
366,000
366,000
400,000
400,000
Public Enterprise Funds:
Federal tax lien revolving fund
Outlays
803
0
Total Federal funds Internal Revenue Service
376
-100
100
BA
0
6,536,853
6,390,805
6,328,830
6,285,804
6,454,959
6,384,422
BA
240,462
275,731
United States Secret Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
0
221,673
294,555
D
3,174
289,086
BA
0
240,462
221,673
297,729
289,086
275,731
268,458
BA
0
9,000
9,940
11,000
11,000
11,000
11,000
Total Federal funds United States Secret Service. BA
0
249,462
231,613
308,729
300,086
286,731
279,458
-2,569
-3,056
Outlays
Total Salaries and expenses
Contribution for annuity benefits
Appropriation, permanent, indefinite
Outlays
268,458
751
Comptroller of the Currency
Trust funds
Assessment funds
Outlays
See footnotes at end of table.
376
0
2,017
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-145
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of the Treasury—Con.
Interest on the Public Debt
Federal funds
General and Special Funds:
Interest on the public debt
901
Appropriation, permanent
BA
Outlays
0
Interest on the public debt paid to trust funds 901
Appropriation, current
BA
Appropriation, permanent
BA
Outlays
0
111,710,930
111,710,930
130,103,965
130,103,965
J
142,112,638
142,112,638
J
17,102,148
17,102,148
17,243
19,378,792
19,378,792
^17,243
168,892
22,418,470
22,418,470
J
168,892
Total Interest on the public debt paid to trust
funds
BA
0
17,102,148
17,102,148
19,396,035
19,396,035
22,587,362
22,587,362
Total Federal funds Interest on the Public Debt... BA
0
128,813,078
128,813,078
149,500,000
149,500,000
164,700,000
164,700,000
143,380,440
142,616,052
163,281,373
163,140,653
177,997,391
177,806,342
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
BA
0
803 BA
...
«
806 BA
—249
-15,820
-7,027,288
803 B
A
809
-40
-16,600
-17,400
DA
°
Receipts from off-budget Federal entities
-40
DA
0
nno
— 166
-50
Q
QAQ
— 184
f
_
;
^
-10
-5,344,971
_
m
M
-10
-5,925,037
_
m
m
-10
908 BA
Q
Proprietary receipts from the public
151 BA
155
Q
376
f
803
A
QA
809 RA
J
901
See footnotes at end of table.
-14,184,023
_ ^ ^
-81,915
-15,318,804
_ ; ^
-18,345,703
_ ^
-83,553
-88,225
-136,834
-346,203
-153,714
-620,277
-407,679
-407,679
-312,685
I" -193,994
8-146
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Department of the Treasury—Con.
Summary—Con.
908
BA
139,585,796
151,084,664
117,941,866
139,445,076
150,893,615
BA
4,572,367
4,572,725
4,573,225
4,621,999
4,570,204
4,570,169
Q
-27,112
-152,000
-160,000
Q
Interfund transactions
118,706,254
0
Trust funds:
(As shown in detail above)
-1,862,647
0
Total Federal funds
jj A -1,807,379
-1,346,467
-793,000
-453,000
-154,657
-132,795
-135,000
«
571
-1,636,912
BA
803
QA
809
BA
«
.7
«
—35
—37
—39
0
-4,566,700
-4,566,700
-4,566,700
BA
117,074,366
137,850,326
149,704,156
0
116,359,610
Environmental Protection Agency
137,707,085
149,510,051
Total Department of the Treasury
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
304
BA
555,613
574,900
G
K
293,378
345,897
0
Research and development:
(Energy supply)
(Appropriation, current)
3,500
566,777
627,611
BA
Total Salaries and expenses
540,947
555,613
578,400
639,275
0
Outlays
540,947
566,777
627,611
20,433
26,474
271
BA
* 44,320
* 5,500
(Outlays)
0
58,612
31,809
1,100
A
Total (Energy supply)
A
33,777
2,365
See footnotes at end of table.
BA
20,433
31,974
44,320
0
58,612
32,909
36,142
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-147
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Environmental Protection Agency—Con.
(Pollution control and abatement)
(Appropriation, current)
304
BA
100,567
116,226
F
* 119,117
(Outlays)
0
124,078
-3,500
100,504
Total (Pollution control and abatement)
BA
0
100,567
124,078
112,726
100,504
119,117
112,800
Total Research and development
BA
0
121,000
182,690
144,700
133,413
163,437
148,942
BA
369,075
393,900
0
455,020
416,984
10,915
* 385,127
415,290
BA
0
369,075
455,020
393,900
416,984
396,042
415,290
BA
0
3,000
3,266
2,600
4,233
10,500
4,148
BA
0
2,430,000
2,982,669
2,430,000
2,500,000
2,400,000
2,500,000
Abatement, control, and compliance
Appropriation, current
112,800
304
Outlays
Total Abatement, control, and compliance
Buildings and facilities
304
Appropriation, current
Outlays
Construction grants
304
Appropriation, current
Outlays
Scientific activities overseas (Special foreign currency
program)
304
Outlays
United States Regulatory Council
304
Outlays.....
Operations, research, and facilities
304
Outlays
Enforcement
304
Outlays
Payment to the hazardous substance response trust
fund
304
Appropriation, current
Outlays
0
232
183
0
28
2
0
-525
1,250
601
0
268
232
116
BA
0
175
40,000
40,000
44,000
44,000
44,000
44,000
13
15
15
BA
210,000
640,000
0
147,803
410,000
^50,000
325,000
A
15,000
Public Enterprise Funds:
Revolving fund for certification and other services
304
Outlays
Trust funds
Hazardous substance response trust fund
Appropriation, current
0
304
Outlays
Total Hazardous substance response trust fund... BA
0
Miscellaneous contributed funds
Appropriation, permanent, indefinite
Outlays
See footnotes at end of table.
210,000
147,803
515,000
20,000
A
460,000
340,000
640,000
535,000
25
25
304
BA
0
23
24
8-148
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Environmental Protection Agency—Con.
Summary
Federal funds:
(As shown in detail above)
BA
0
Deductions for offsetting receipts:
Proprietary receipts from the public
3,593,600
3,667,089
3,653,254
3,740,898
BA
0
Trust funds:
(As shown in detail above)
3,518,688
4,204,608
210,023
147,827
460,000
340,025
640,000
535,025
304 BA
Total Trust funds
BA
0
interfund transactions
_J/g
_ ^
_ ^
209,644
147,448
455,000
335,025
595,000
490,025
3,688,332
4,312,056
4,004,600
3,958,114
4,204,254
4,186,923
-5,632
304 BA
Total Environmental Protection Agency
BA
0
General Services Administration
Real Property Activities
Feelers/ funds
Intragovernmental Funds:
Federal buildings fund
Appropriation, current
Outlays
804
BA
0
2,650
160,712
*50
BA
0
125,000
-101,077
2,650
160,762
-5,632
BA
0
Total Federal buildings fund
125,000
-101,077
145,161
134,921
161,981
160,037
167,244
166,924
161,981
160,037
167,244
166,924
Personal Property Activities
Federal funds
General and Special Funds:
Personal property, operating expenses
Appropriation, current
Outlays
804
Intragovernmental Funds:
General supply fund
Outlays
804
0
Total Federal funds Personal Property Activities.. BA
0
See footnotes at end of table.
-59,124
145,161
75,797
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-149
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
General Services Administration—Con.
Office of Information Resources
Management
Federal funds
General and Special Funds:
Operating expenses, Office of Information Resources
Management
804
Appropriation, current
BA
Outlays
0
Total Operating expenses, Office of Information
Resources Management
BA
0
50,869
36,999
50,869
36,999
29,234
A
230
28,884
*230
33,393
29,464
29,114
33,393
32,126
32,126
Public Enterprise Funds:
Consumer information center fund
Appropriation, current
Outlays
376
BA
0
1,416
208
1,349
1,342
349
347
Intragovernmental Funds:
Federal telecommunications fund
Outlays
Automatic data processing fund
Outlays
804
0
41,215
-15,344
9,750
0
-2,385
3,400
2,900
52,285
76,037
30,813
18,512
33,742
45,123
85,615
88,069
91,708
95,016
92,325
91,430
804
Total Federal funds Office of Information Resources Management
BA
0
Records Activities
Federal funds
General and Special Funds:
National Archives and Records Service, operating expenses
804
Appropriation, current
BA
Outlays
0
Trust funds
National archives gift fund
Appropriation, permanent
Outlays
National archives trust fund
Outlays
804
13
103
184
213
184
213
0
-515
-800
-824
Total Federal funds Records Activities
BA
0
85,615
88,069
91,708
95,016
92,325
91,430
Total Trust funds Records Activities
BA
0
13
_412
184
-587
184
-611
See footnotes at end of table.
BA
0
804
8-150
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
General Services Administration—Con.
Federal Property Resources Activities
Federal funds
General and Special Funds:
Operating expenses, federal property resources service:
(Defense-related activities)
054
(Appropriation, current)
(Outlays)
(General property and records management)
804
(Appropriation, current)
(Outlays)
BA
0
21,230
17,014
23,004
26,810
28,014
27,725
BA
0
12,404
12,279
14,464
14,318
12,243
12,117
Total Operating expenses, federal property resources service
BA
0
33,634
29,293
37,468
41,128
40,257
39,842
7,400
7,400
7,600
7,600
117,097
-8,416
36,213
-202,541
44,868
165,625
47,857
39,026
105,091
99,993
132,738
131,254
140,987
138,385
Expenses, disposal of surplus real and related personal
property
804
Appropriation, permanent, indefinite
BA
Outlays
0
2,183
1,986
Public Enterprise Funds:
National defense stockpile transaction fund
054
Outlays
0
William Langer Jewel bearing plant revolving fund
054
Appropriation, current
BA
Outlays
0
Total Federal funds Federal Property Resources
Activities
BA
0
-232,023
396
-1,797
General Activities
Federal funds
General and Special Funds:
General management and administration, salaries and
expenses
804
Appropriation, current
Outlays
Economic Opportunity Act close-out activities 506
Reappropriation
Outlays
Office of Inspector General
804
Appropriation, current
Outlays
Allowances and office staff for former Presidents
802
Appropriation, current
Outlays
Expenses, presidential transition
802
Appropriation, current
Outlays
See footnotes at end of table.
BA
0
BA
0
BA
0
BA
0
BA
0
1,238
19,200
17,759
1,106
1,016
49
1,000
480
19,536
19,146
1,171
1,148
1
322
21,473
21,081
1,170
' 1,146
3,000
3,000
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-151
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
General Services Administration—Con.
General Activities—Con.
Refunds under Renegotiation Act
Outlays
908
0
- 1
0
-79
Public Enterprise Funds:
Virgin Islands Corporation liquidation fund
Outlays
804
-215
-133
-200
-200
Intragovernmental Funds:
Working capital fund
Outlays
804
0
Total Federal funds General Activities
-1,011
BA
Deductions for offsetting receipts:
Proprietary receipts from the public
154,445
166,630
118,964
151,614
163,601
BA
0
Summary
Federal funds:
(As shown in detail above)
125,397
0
569,671
55,249
486,465
751,566
507,798
500,472
054 BA
804 BA
Q
Total Federal funds
-69,380
-205,000
-238,000
BA
Trust funds:
(As shown in detail above)
696,488
281,465
269,798
0
182,066
546,566
262,472
BA
0
13
184
184
-587
-611
BA
696,501
281,649
269,982
0
Total General Services Administration
_412
181,654
545,979
261,861
National Aeronautics and Space Administration
Federal funds
General and Special Funds:
Research and development:
(Space flight)
(Appropriation, current)
253
Total (Space flight)
See footnotes at end of table.
420-000 0 - 84 - 32 : QL 3
3,566,460
431,700
0
3,515,992
1,022,000
* 511,400
592,200
BA
3,566,460
431,700
511,400
0
(Outlays)
BA
3,515,992
1,022,000
592,200
8-152
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
National Aeronautics and Space Administration—Con.
(Space science, applications, and technology)
254
(Appropriation current)
BA
1,193,600
1,280,000
(Outlays)
0
1,070,943
1,144,900
* 1,531,000
1,410,600
BA
0
1,193,600
1,070,943
1,280,000
1,144,900
1,531,000
1,410,600
BA
498,900
14,200
0
446,124
135,000
* 15,300
31,700
BA
0
498,900
446,124
14,200
135,000
15,300
31,700
BA
280,000
302,300
(Outlays)
0
283,125
301,700
342,400
340,500
Total (Air transportation)
BA
0
280,000
283,125
302,300
301,700
342,400
340,500
Total Research and development
BA
0
5,538,960
5,316,184
2,028,200
2,603,600
2,400,100
2,375,000
Total (Space science, applications, and technology)
(Supporting space activities)
(Appropriation, current)
255
(Outlays)
Total (Supporting space activities)
(Air transportation)
(Appropriation current)
402
K
Space flight, control, and data communications:
(Space flight)
(Appropriation, current)
253
BA
3,101,300
(Outlays)
0
2,578,800
2,804,600
2,768,000
Total (Space flight)
BA
0
3,101,300
2,578,800
2,804,600
2,768,000
(Appropriation, current)
BA
674,000
(Outlays)
0
491,800
* 795,700
733,000
Total (Supporting space activities)
BA
0
674,000
491,800
795,700
733,000
BA
0
3,775,300
3,070,600
3,600,300
3,501,000
K
(Supporting space activities)
255
Total Space flight, control, and data communications
Construction of facilities:
(Space flight)
(Appropriation current)
253
BA
25,245
61,300
0
25,770
37,600
31,200
50,200
BA
25,245
25,770
61,300
37,600
31,200
50,200
K
(Outlays)
Total (Space flight)
0
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-153
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
National Aeronautics and Space Administration—Con.
(Space science, applications, and technology)
254
BA
1,740
12,000
0
497
3,000
* 8,300
8,500
1,740
497
12,000
3,000
8,300
8,500
BA
54,240
58,200
(Reappropriation)
(Outlays)
BA
0
Total (Supporting space activities)
BA
0
37,599
58,012
91,839
58,012
58,100
58,200
58,100
BA
20,115
24,000
0
23,860
39,800
30,300
38,500
Total (Air transportation)
BA
0
Total Construction of facilities
BA
0
20,115
23,860
138,939
108,139
24,000
39,800
155,500
138,500
30,300
38,500
160,000
163,000
BA
493,592
446,100
(Appropriation, current)
(Outlays)
Total (Space science, applications, and technolBA
ogy).
0
(Supporting space activities)
(Appropriation, current)
255
* 90,200
(Air transportation)
(Appropriation, current)
90,200
65,800
402
(Outlays)
Research and program management:
(Space flight)
(Appropriation, current)
65,800
K
253
D
BA
0
510,994
493,592
510,994
7,100
452,600
453,200
452,600
BA
400,695
436,000
(Outlays).
Total (Space flight)
* 473,800
473,800
473,800
473,800
(Space science, applications, and technology)
254
(Appropriation, current)
D
0
414,804
7,000
441,700
Total (Space science, applications, and technology)
BA
0
400,695
414,804
443,000
441,700
(Outlays).
See footnotes at end of table.
* 479,500
479,500
479,500
479,500
8-154
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
National Aeronautics and Space Administration—Con.
(Supporting space activities)
(Appropriation, current)
255
BA
55,789
60,500
* 63,300
D
0
BA
Total (Supporting space activities)
(Air transportation)
(Appropriation, current)
57,752
55,789
61,500
63,300
0
(Outlays)
1,000
61,300
57,752
61,300
63,300
247,324
295,900
63,300
402
BA
* 314,400
D
0
BA
Total (Air transportation)
Total Research and program management
256,012
247,324
300,800
314,400
0
(Outlays)
4,900
299,900
256,012
299,900
314,400
314,400
BA
1,197,400
1,258,500
1,331,000
0
1,239,562
1,255,500
1,331,000
0
2
45
6,875,299
6,663,885
7,217,500
7,068,200
2
45
6,875,299
6,663,887
7,217,500
7,068,245
7,491,400
7,370,000
101,809
107,046
110,953
79,243
106,540
111,427
(45,110)
(48,572)
(50,687)
Trust funds
Miscellaneous trust funds
Outlays
255
Summary
Federal funds:
(As shown in detail above)
BA
0
Trust funds:
(As shown in detail above)
0
Total National Aeronautics and Space Administration
BA
0
7,491,400
7,370,000
Office of Personnel Management
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
805
Outlays
BA
0
Limitation payable under trust funds
Government payment for annuitants, employees health
benefits
551
Appropriation, current
Outlays
See footnotes at end of table.
D
(898)
BA
1,342,610
1,506,339
1,341,553
0
1,215,004
1,341,572
1,565,350
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-155
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Office of Personnel Management—Con.
Payment to civil service retirement and disability
fund
805
Appropriation, current
BA
3,941,107
3,908,490
A
203,173
-19,986
11,530,317
15,438,807
A
203,173
J
-19,986
J
Appropriation, permanent, indefinite
Outlays
BA
0
Total Payment to civil service retirement and
disability fund
BA
0
Intergovernmental personnel assistance
Outlays
11,367,000
15,308,107
15,308,107
15,308,107
15,621,994
15,621,994
4,366,868
J
-397,776
11,986,683
16,353,551
J
-397,776
15,955,775
15,955,775
806
0
310
Intragovemmental Funds:
Revolving fund
Outlays
805
0
0
Total Revolving fund
Trust funds
Civil service retirement and disability fund
Appropriation, current
-4,624
-4,624
602
6,410
-5
1,700
J
-b
6,405
1,695
A
BA
Appropriation, permanent, indefinite
Outlays
J
203,173
-7,743
36,045,020
22,053,327
' -239,030
1,027,398
38,473,478
23,421,498
J
-408,365
J
J
BA
0
34,310,932
20,795,873
Total Civil service retirement and disability fund. BA
0
34,310,932
20,795,873
36,240,450
21,814,297
39,500,876
23,013,133
0
-195,749
-32,809
-225,992
0
-580,276
-639,903
-692,362
Employees health benefits fund
Outlays
Employees life insurance fund
Outlays
Retired employees health benefits fund
Outlays
Summary
Federal funds:
(As shown in detail above)
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
551
602
551
0
See footnotes at end of table.
-72
-81
BA
0
16,752,526
16,598,040
17,235,379
17,076,511
17,408,281
17,634,247
BA
0
34,310,932
20,019,764
36,240,450
21,141,513
39,500,876
22,094,698
602 BA
A
Total Trust funds
-84
BA
0
1on
1in
inn
— loU
—llu
—1UU
34,310,802
20,019,634
36,240,340
21,141,403
39,500,776
22,094,598
8-156
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Office of Personnel Management—Con.
Summary—Con.
interfundtransactions
602 BA
805
^
_nm
Q A -15,308,107
-15,641,980
-16,353,551
BA
J
Q
Total Office of Personnel Management
BA
0
35,723,727
21,278,073
19,986
J
397,776
37,822,625
22,564,820
40,920,782
23,740,570
246,100
Small Business Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
376
BA
0
274,609
287,769
225,543
262,143
246,100
262,700
BA
0
Total Salaries and expenses
287,769
223,643
D
1,900
262,143
BA
0
Outlays
274,609
742,700
591,649
363,400
489,000
312,000
296,000
-429,504
-321,000
-213,000
2,000
1,000
1,000
8,910
16,000
10,000
.15,000
262,700
Public Enterprise Funds:
Business loan and investment fund
Appropriation, current
Outlays
Disaster loan fund
Outlays
Lease guarantees revolving fund
Appropriation, current
Outlays
Surety bond guarantees revolving fund
Appropriation, current
Outlays
Pollution control equipment contract guarantee
ing fund
Outlays
Summary
Federal funds:
Total Small Business Administration
See footnotes at end of table.
376
453
0
376
BA
0
1,030
376
BA
0
25,835
revolv376
0
BA
0
2,580
-5,400
-8,000
1,017,309
479,359
597,853
442,743
569,100
353,700
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-157
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Veterans Administration
Federal funds
General and Special Funds:
Compensation
Appropriation, current
701
BA
0
Pensions
Appropriation, current
9,565,916
9,843,853
10,023,300
10,008,700
10,372,400
10,339,400
BA
3,741,634
3,893,900
3,838,500
A
101,900
3,838,100
* 101,900
4,006,400
0
BA
0
Total Compensation
9,843,853
BA
0
Outlays
9,565,916
9,844,300
528,100
9,845,700
J
493,700
3,741,634
3,893,900
3,940,400
3,940,000
4,006,400
4,004,000
122,250
122,250
141,200
141,200
142,200
142,200
J
701
Outlays
Total Pensions
Burial benefits and miscellaneous assistance
701
Appropriation, current
BA
Outlays
0
Reinstated entitlement program for survivors under
Public Law 97-377
701
Appropriation, current
BA
Outlays
4,004,000
41,000
y
200
41,000
'200
0
Total Reinstated entitlement program for survivors under Public Law 97-377
Readjustment benefits
Appropriation, current
9,862,300
J
161,000
9,874,500
^134,200
BA
0
4,173
41,200
41,200
4,173
702
BA
Total Readjustment benefits
1,391,000
A
52,200
0
Outlays
1,666,800
1,713,702
1,388,590
A
52,200
1,137,800
J
132,700
1,160,300
J
132,700
Veterans job training
Appropriation, current
Outlays
Veterans insurance and indemnities
Appropriation, current
Outlays
See footnotes at end of table.
BA
1,666,800
1,443,200
1,270,500
0
U13J02
1,440,790
1,293,000
130,000
31,800
95,700
7,400
7,484
11,000
11,083
702
BA
0
701
BA
0
6,400
6,629
8-158
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Veterans Administration—Con.
Medical care
Appropriation, current
703
BA
8,070,726
A
15,000
c
10,200
D
108,488
8,767,435
BA
0
8,126,622
*'15,000
8,639,643
7,773,254
7,602,087
8,204,414
8,141,622
8,767,435
8,639,643
BA
154,839
192,695
0
151,583
216,299
D
1,381
171,841
205,324
BA
0
154,839
151,583
217,680
171,841
192,695
205,324
Medical administration and miscellaneous operating
expenses
703
Appropriation, current
BA
56,420
73,013
58,365
66,552
D
451
69,143
56,420
58,365
67,003
69,143
73,013
73,834
BA
690,152
712,088
* 3,588
D
7,811
755,454
0
673,710
718,119
* 3,588
Total Medical care
Medical and prosthetic research
Appropriation, current
4,200
7,602,087
BA
0
Reappropriation
Outlays
7,769,054
703
Outlays
Total Medical and prosthetic research
Outlays
0
Total Medical administration and miscellaneous
operating expenses
BA
0
General operating expenses
Appropriation, current
Outlays
73,834
705
J
1,685
750,954
'1,685
Total General operating expenses
BA
0
Construction, major projects
703
Appropriation, current
BA
Outlays
0
Construction, minor projects
703
Appropriation, current
BA
Outlays
0
Grants for construction of state extended care facilities
703
Appropriation, current
BA
Outlays
0
Grants to the Republic of the Philippines
703
Appropriation, current
BA
Outlays
0
See footnotes at end of table.
690,152
673,710
723,487
721,707
757,139
752,639
670,792
337,782
345,692
435,123
619,594
498,123
141,748
90,872
185,378
130,717
202,200
160,089
18,000
13,612
18,000
14,796
34,500
18,095
500
353
500
647
500
500
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-159
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Veterans Administration—Con.
Grants for the construction of State veterans cemeteries
705
Appropriation, current
BA
Outlays
0
Total Grants for the construction of State veterans cemeteries
BA
0
Assistance for health manpower training institutions
703
Outlays
0
2,500
3,000
1,593
4,753
* 5,000
2,600
2,500
1,593
3,000
4,753
5,000
2,600
8,000
1,400
239,268
112,700
29,592
-139,764
-5,986
-5,382
17,467
Public Enterprise Funds:
Construction and operation of garage and parking
facilities
703
Outlays
0
Loan guaranty revolving fund
704
Outlays
0
Direct loan revolving fund
704
Outlays
0
Canteen service revolving fund
705
Outlays
0
Service-disabled veterans insurance fund
701
Outlays
0
Veterans reopened insurance fund
701
Outlays
0
Education loan fund
702
Outlays
0
Total Education loan fund
0
Vocational rehabilitation revolving fund
702
Outlays
0
Servicemen's group life insurance fund
701
Outlays
0
Special therapeutic and rehabilitation activities
fund
703
Outlays
0
176
-5,333
432
1,991
1,009
1,200
-1,150
-22,475
-17,900
21,300
-6,577
-9,015
-12,375
'-97
-6,577
-9,015
-12,472
-21
-39,751
-10
14
-24,100
-10
15
-23,500
-10
Intragovernmental Funds:
Supply fund
Outlays
Trust funds
Post-Vietnam era veterans education account
Appropriation, permanent, indefinite
Outlays
General post fund, national homes
Appropriation, permanent, indefinite
Outlays
National service life insurance fund
Appropriation, permanent, indefinite
Outlays
See footnotes at end of table.
705
0
-22,376
702
BA
0
222,315
140,329
201,200
147,900
225,500
174,200
BA
0
10,667
9,449
11,500
10,000
11,800
10,300
BA
0
1,202,072
890,928
1,229,700
964,200
1,267,500
1,014,400
705
701
8-160
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Veterans Administration—Con.
United States government life insurance fund
Appropriation, permanent, indefinite
Outlays
Veterans special life insurance fund
Outlays
701
BA
0
26,268
59,851
23,100
54,200
20,800
50,000
-56,486
-69,200
-72,000
24,611,205
24,531,327
25,491,854
25,368,417
26,454,576
26,251,205
BA
0
24,533,695
24,453,817
25,424,754
25,301,317
26,379,676
26,176,305
BA
0
1,461,322
1,044,071
1,465,500
1,107,100
1,525,600
1,176,900
-158,410
-158,600
701
0
Summary
Federal funds:
(As shown in detail above)
BA
0
Deductions for offsetting receipts:
Proprietary receipts from the public
704 BA
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
701
709
BA
DA
Q
Total Trust funds
interfund transactions
BA
0
701
-161,000
856,217
438,966
872,610
514,210
932,495
583,795
-63,905
-42,600
-64,500
25,324,001
24,826,872
26,252,833
25,770,996
27,245,766
26,693,695
129,321
129,502
120,217
123,506
BA
702 BA
Q
Total Veterans Administration
BA
0
Other Independent Agencies
ACTION
Federal funds
General and Special Funds:
Operating expenses
Appropriation, current
Outlays
See footnotes at end of table.
506
BA
0
129,321
126,160
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-161
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent Agencies—Con.
Administrative Conference of the United
States
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
BA
1,468
1,009
1,065
1,421
BA
0
1,159
1,009
1,123
1,065
1,468
1,421
BA
0
200
170
215
213
220
218
BA
Total Salaries and expenses
1,100
0
Outlays
1,159
1,522
1,546
Advisory Committee on Federal Pay
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
805
Advisory Council on Historic Preservation
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
303
D
Outlays
0
Trust funds
Donations
Appropriation, permanent
Outlays
1,508
BA
0
Total Salaries and expenses
1,522
1,508
15
' 1,560
1,561
1,560
H168
1,169
1,168
1,169
303
BA
0
5
5
5
5
10,462
10,375
11,065
10,974
American Battle Monuments Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
Trust funds
Contributions
Appropriation, permanent, indefinite
Outlays
See footnotes at end of table.
705
BA
0
10,669
9,954
705
BA
0
31
27
34
34
34
34
8-162
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent A g e n c i e s — C o n .
Architectural and Transportation Barriers
Compliance Board
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
BA
1,836
2,145
* 2,000
1,980
BA
0
Total Salaries and expenses
1,900
0
Outlays
2,020
2,020
1,836
1,900
2,145
2,000
1,980
Arms Control and Disarmament Agency
Federal funds
General and Special Funds:
Arms control and disarmament activities
Appropriation, current
153
BA
16,006
18,500
D
* 24,400
15,681
128
18,142
24,103
16,006
15,681
18,628
18,142
24,400
24,103
BA
0
98,317
90,936
118,182
117,636
100,498
101,048
Payment to the Central Intelligence Agency retirement
and disability fund
054
Appropriation, current
BA
Outlays
0
91,300
91,300
86,300
86,300
99,300
99,300
BA
23,825
5,375
0
23,640
18,400
* 2,490
C
6
D
508
20,640
^990
BA
0
23,825
23,640
Outlays
0
Total Arms control and disarmament activities.... BA
0
Board for International Broadcasting
Federal funds
General and Special Funds:
Grants and expenses
Appropriation, current
Outlays
154
Central Intelligence Agency
Federal funds
General and Special Funds:
Civil Aeronautics Board
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
Total Salaries and expenses
See footnotes at end of table.
402
21,404
21,630
A
5,375
1,500
5,375
6,875
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-163
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Other Independent Agencies—Con.
Civil Aeronautics Board—Con.
Payments to air carriers
Appropriation, current
Contract authority, permanent
Liquidation of contract authority, current
Outlays
402
BA
BA
48,400
3,743
50,800
0
53,868
(3,743)
56,118
17,215
Total Payments to air carriers
BA
0
52,143
53,868
50,800
56,118
13,000
17,215
Total Federal funds Civil Aeronautics Board
BA
0
75,968
77,508
72,204
77,748
18,375
24,090
BA
328
340
380
0
316
343
30
8
328
343
343
380
380
12,747
13,000
Commission of Fine Arts
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
451
Outlays
Total Salaries and expenses
BA
0
316
Commission on Civil Rights
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
BA
0
11,704
11,976
11,704
12,010
12,027
12,747
12,645
BA
0
Total Salaries and expenses
11,887
D
123
12,027
BA
0
Outlays
11,976
662
624
687
665
710
687
BA
23,857
27,292
27,292
26,473
12,645
Committee for Purchase from the Blind
and other Severely Handicapped
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
505
Commodity Futures Trading Commission
Federal funds
General and Special Funds:
Commodity Futures Trading Commission
Appropriation, current
376
Outlays
Total Commodity Futures Trading Commission
See footnotes at end of table.
0
22,997
26,400
D
339
25,936
BA
0
23,857
22,997
26,739
25,936
26,473
8-164
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent Agencies—Con.
Community Services Administration
Federal funds
General and Special Funds:
Community services program
Outlays
506
0
-18,031
12,284
BA
0
34,038
32,840
35,000
35,728
35,000
35,000
BA
BA
0
-35,000
172,000
137,000
130,000
130,000
130,000
130,000
BA
0
137,000
137,000
130,000
130,000
130,000
130,000
BA
427,213
485,812
0
427,213
485,812
464,470
* 39,000
503,470
427,213
427,213
485,812
485,812
503,470
503,470
BA
0
96,168
145,000
115,000
115,000
BA
0
150,000
150,000
BA
0
673,381
722,213
Consumer Product Safety Commission
Federal funds
General and Special Funds:
Product safety
Appropriation, current
Outlays
554
Corporation for Public Broadcasting
Federal funds
General and Special Funds:
Public broadcasting fund
Appropriation, current
Appropriation, permanent
Outlays
503
Total Public broadcasting fund
District of Columbia
Federal funds
General and Special Funds:
Federal payment to the District of Columbia
Appropriation, current
852
Outlays..
Total Federal payment to the District of Columbia
BA
0
Loans to the District of Columbia for capital projects
852
Appropriation, current
Outlays
Repayable advances to the District of Columbia general fund
852
Appropriation, permanent, indefinite
Outlays
Summary
Federal funds:
(As shown in detail above)
See footnotes at end of table.
600,812
600,812
503,470
503,470
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-165
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent Agencies—Con.
District of Columbia—Con.
Deductions for offsetting receipts:
Proprietary receipts from the public
852 BA
Total District of Columbia
BA
0
494,012
542,844
566,812
566,812
469,470
469,470
BA
147,421
161,155
0
142,868
151,399
D
2,640
153,037
BA
0
147,421
142,868
154,039
153,037
161,155
159,958
577,923
(15,115)
2,250,386
1,723,673
(16,899)
3,912,951
1,634,951
(18,930)
-1,846
(18,186)
(18,186)
445
(20,551)
(20,551)
Equal Employment Opportunity Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
Outlays
Total Salaries and expenses
159,958
Export-Import Bank of the United States
Federal funds
Public Enterprise Funds:
Export-Import Bank of the United States
Authority to borrow, current, indefinite
Outlays
Limitation on administrative expenses
155
BA
0
Farm Credit Administration
Federal funds
Public Enterprise Funds:
Revolving fund for administrative expenses
Outlays
Limitation on administrative expenses
351
0
c
c
c
(22,092)
(22,092)
Federal Communications Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
376
BA
82,917
0
81,628
87,083
C
15
1,038
90,317
92,611
BA
0
82,917
81,628
88,136
90,317
92,611
92,668
-613,186
-1,424,000
-1,696,000
D
Outlays
Total Salaries and expenses
Federal Deposit Insurance Corporation
Trust funds
Federal Deposit Insurance Corporation
371
Outlays
0
See footnotes at end of table.
92f668
8-166
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent Agencies—Con.
Federal Election Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
806
BA
0
10,271
9,897
9,447
10,744
10,600
10,230
10,271
BA
58,497
64,871
38,815
* 33,478
0
Total Salaries and expenses
9,447
10,649
D
95
10,600
BA
0
Outlays
9,897
10,230
61,481
76,224
68,333
Federal Emergency Management Agency
Federal funds
General and Special Funds:
Salaries and expenses:
(Defense-related activities)
(Appropriation, current)
054
D
(Outlays)
Total (Defense-related activities)
611
BA
58,497
65,482
72,293
0
61,481
76,224
68,333
BA
54,448
56,239
(Outlays)
0
36,785
D
453
64,865
56,235
* 5,486
Total (Disaster relief and insurance)
BA
0
54,448
36,785
56,692
64,865
61,721
62,346
Total Salaries and expenses
BA
0
112,945
98,266
122,174
141,089
134,014
130,679
Emergency management planning and assistance:
(Defense-related activities)
054
(Appropriation, current)
BA
235,863
235,271
(Disaster relief and insurance)
(Appropriation, current)
453
62,346
(Outlays)
0
133,567
199,274
221,640
* 98,227
270,500
Total (Defense-related activities)
BA
0
235,863
133,567
235,271
199,274
319,867
270,500
BA
72,735
80,213
(Outlays)
0
42,179
72,953
54,628
* 21,563
65,051
Total (Disaster relief and insurance)
BA
0
72,735
42,179
80,213
72,953
76,191
65,051
Total Emergency management planning and assistance
BA
0
308,598
175,746
315,484
272,227
396,058
335,551
(Disaster relief and insurance)
(Appropriation, current)
See footnotes at end of table.
453
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-167
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent Agencies—Con.
Federal Emergency Management AgencyCon.
Emergency food distribution and shelter program
605
BA
0
100,000
79,395
40,000
60,605
BA
0
25,773
15,888
14,136
15,290
17,355
16,601
BA
0
223,154
137,386
89,848
92,722
69,934
64,372
Total Federal funds Federal Emergency ManageBA
ment Agency....
0
770,470
506,681
581,642
581,933
617,361
547,203
Appropriation, currentOutlays
Public Enterprise Funds:
National insurance development fund
Authority to borrow, permanent, indefinite
Outlays
National flood insurance fund
Authority to borrow, permanent, indefinite
Outlays
451
453
Trust funds
Gift and bequests, fire administration
Outlays
451
Total Trust funds Federal Emergency Management Agency
Federal Home Loan Bank Board
Federal funds
General and Special Funds:
Interest adjustment payments
Outlays
371
37
Public Enterprise Funds:
Federal Home Loan Bank Board revolving fund
371
Outlays
Federal Savings and Loan Insurance Corporation
fund
371
Outlays
-1,057
1,059
-451,896
-701,037
-1,025,183
Total Federal funds Federal Home Loan Bank
Board
—452,916
-699,978
-1,025,183
15,500
17,197
17,197
17,172
Federal Labor Relations Authority
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
Total Salaries and expenses..
See footnotes at end of table.
420-000 O - 84 - 33 : QL 3
805
BA
0
14,741
16,695
fl
168
16,838
BA
0
15,500
14,741
16,863
16,838
17,172
8-168
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent Agencies—Con.
Federal Maritime Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
403
BA
0
12,302
11,770
11,587
10,946
10,956
12,292
12,302
BA
22,015
22,668
23,161
D
97
22,736
22,451
0
BA
0
Total Salaries and expenses
11,587
10,756
D
190
10,956
BA
0
Outlays
11,770
12,292
22,015
22,668
23,258
22,736
22,451
23,283
3,858
3,838
3,837
3,837
66,481
Federal Mediation and Conciliation Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
505
Outlays
Total Salaries and expenses
23,283
Federal Mine Safety and Health Review
Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
554
BA
0
3,686
3,351
Federal Trade Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
376
BA
0
Total Salaries and expenses
65,464
63,500
C
6
D
644
65,524
BA
0
Outlays
66,871
66,871
65,464
64,150
65,524
66,481
67,201
4,335
2,252
4,349
2,423
67,201
Harry S Truman Scholarship Foundation
Trust funds
Harry S Truman memorial scholarship trust fund
502
Appropriation, permanent, indefinite
Outlays
See footnotes at end of table.
BA
0
3,740
1,795
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-169
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent Agencies—Con.
Historical and Memorial Agencies
Other Historical and Memorial Agencies
Federal funds
General and Special Funds:
Franklin Delano Roosevelt Memorial Commission: Salaries and expenses
806
Appropriation, current
BA .,
Reappropriation
BA
Outlays
0
26
21
40
20
24
24
Total Franklin Delano Roosevelt Memorial Commission
BA
0
40
20
20
24
21
24
Intelligence Community Staff
Federal funds
General and Special Funds:
Intelligence community staff
Appropriation, current
054
BA
15,856
17,323
D
127
E
21,797
0
14,148
16,115
21,519
BA
0
15,856
14,148
17,467
16,115
21,797
21,519
n
Outlays
Total Intelligence community staff
Intragovernmental Agencies
Advisory Commission on Intergovernmental
Relations
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
806
BA
0
Total Salaries and expenses
Trust funds
Contributions
Appropriation, permanent, indefinite
Outlays
2,131
1,889
2,000
D
16
2,016
BA
0
Outlays
1,940
1,940
1,889
2,016
2,016
2,131
2,131
BA
0
267
210
270
270
270
270
BA
0
1,940
1,889
2,016
2,016
2,131
2,131
BA
0
267
210
270
270
270
270
2,131
806
Summary
Federal funds:
(As shown in detail above)
Trust funds:
(As shown in detail above)
See footnotes at end of table.
8-170
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent Agencies—Con.
Intragovernmental Agencies—Con.
Advisory Commission on Intergovernmental
Relations—Con.
Deductions for offsetting receipts:
Proprietary receipts from the public
806 BA
0
-1
BA
0
266
209
270
270
270
270
Total Advisory Commission on Intergovernmental
BA
Relations
0
2,206
2,098
2,286
2,286
2,401
2,401
BA
0
2,900
2,896
2,700
2,700
27
BA
0
4,775
4,196
4,500
5,015
BA
0
2,900
2,896
2,700
2,700
BA
0
4,775
4,196
4,500
5,015
3,067
2,325
1,746
2,250
2,765
3,067
2,900
2,317
2,700
3,215
3,094
Total Trust funds
Appalachian Regional Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
Trust funds
Miscellaneous trust funds
Appropriation, permanent, indefinite
Outlays
452
452
3,067
Summary
Federal funds:
(As shown in detail above)
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
Total Trust funds
Interfund transactions
Total Appalachian Regional Commission
See footnotes at end of table.
27
452 BA
0
BA
0
452 BA
0
BA
0
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-171
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent Agencies—Con.
Intragovernmental Agencies—Con.
Delaware River Basin Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
301
BA
Total Salaries and expenses..
191
172
0
Outlays
129
128
"-19
191
"-19
172
BA
129
172
172
0
128
172
172
BA
0
269
269
269
269
283
283
Total Federal funds Delaware River Basin Commission
BA
398
441
455
397
441
455
BA
0
55
55
68
68
BA
128
191
"-24
167
0
128
191
"-24
167
Contribution to Delaware River Basin Commission
301
Appropriation, current
Outlays
0
Interstate Commission on the Potomac
River Basin
Federal funds
General and Special Funds:
Contribution to Interstate Commission on the Potomac
River Basin
304
Appropriation, current
Outlays
Susquehanna River Basin Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
301
Outlays
Total Salaries and expenses
Total Federal funds Susquehanna River Basin
Commission
See footnotes at end of table.
128
167
167
128
167
167
BA
0
217
217
230
230
230
230
BA
345
397
397
0
Contribution to Susquehanna River Basin Commission
301
Appropriation, current
Outlays
BA
0
345
397
397
8-172
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent Agencies—Con.
Intragovernmental Agencies—Con.
Washington Metropolitan Area Transit
Authority
Federal funds
General and Special Funds:
Interest payments
Appropriation, current
Outlays
401
BA
0
51,664
50,242
51,664
66,664
46,176
67,664
Total Federal funds Intragovernmental Agencies.. BA
0
57,302
55,824
57,286
72,286
49,159
70,674
2,520
3,035
270
3,337
28,152
Total Trust funds Intragovernmental Agencies
BA
0
2,591
1,955
International Trade Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
153
BA
0
19,650
18,640
21,238
21,833
28,152
28,152
BA
0
Total Salaries and expenses
18,640
20,774
D
464
21,833
BA
0
Outlays
19,650
65,600
61,577
60,000
60,265
53,966
54,439
2,320
:.
60,000
62,585
53,966
54,439
28,152
Interstate Commerce Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
Payments for directed rail service
Outlays
401
401
0
Total Federal funds Interstate Commerce Commission
BA
0
3,711
65,600
65,288
Japan-United States Friendship Commission
Trust funds
Japan-United States friendship trust fund
Appropriation, current
Outlays
154
BA
0
1,700
2,364
1,683
2,300
1,600
2,200
Legal Services Corporation
Federal funds
General and Special Funds:
Payment to the Legal Services Corporation
Appropriation, current
Outlays
See footnotes at end of table.
752
BA
0
241,000
233,962
275,000
284,039
20,290
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-173
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent Agencies—Con.
Marine Mammal Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
302
BA
0
822
860
929
937
648
700
BA
20,812
19,622
20,477
20,984
273
19,990
20,262
(700)
(1,200)
(1,200)
BA
20,812
19,895
20,477
0
20,984
19,990
20,262
BA
4,139
4,583
0
4,907
4,359
°85
4,460
BA
4,139
4,444
4,583
0
4,907
4,460
4,582
BA
0
24,951
25,891
24,339
24,450
25,060
24,844
BA
2,404
2,447
2,765
0
2,474
2,473
2,767
BA
0
2,404
2,474
2,475
2,473
2,765
2,767
BA
674
674
690
0
681
937
751
Merit Systems Protection Board
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
805
Outlays
0
Limitation payable under transfers from trust funds
Total Salaries and expenses
Office of the Special Counsel
Appropriation, current
D
805
Outlays
Total Office of the Special Counsel
4,582
Total Federal funds Merit Systems Protection
Board
National Capital Planning Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
451
Outlays
Total Salaries and expenses
National Commission on Libraries and
Information Science
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
503
Outlays
Trust funds
Contributions
Outlays
See footnotes at end of table.
503
0
3
8-174
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent Agencies—Con.
National Credit Union Administration
Federal funds
Public Enterprise Funds:
Operating fund
371
Outlays
0
-11,657
4,269
-1,128
0
-80,267
-27,381
-25,500
60,859
9,757
-96,979
-102,177
-11,700
60,859
9,757
-188,903
-125,289
-38,328
143,875
162,000
143,875
0
125,741
"123
145,168
156,179
BA
143,875
162,123
143,875
0
Credit union share insurance fund
Outlays
Central liquidity facility
Authority to borrow, permanent
125,741
145,168
156,179
371
371
BA
Outlays
0
Total Federal funds National Credit Union Administration
BA
0
National Foundation on the Arts and the
Humanities
National Endowment for the Arts
Federal funds
General and Special Funds:
National endowment for the arts: Grants and administration
503
Appropriation, current
BA
Outlays
Total National endowment for the arts
Trust funds
Gifts and donations (arts)
Appropriation, permanent, indefinite
503
BA
Outlays
0
46
54
-13
66
54
130,247
140,000
D
125,475
National Endowment for the Humanities
Federal funds
General and Special Funds:
National endowment for the humanities-. Grants and
administration
503
Appropriation, current
BA
Reappropriation
BA
Outlays
0
132,007
144,722
135,553
BA
135,447
140,118
125,475
0
132,007
144,722
135,553
Total National endowment for the humanities
Trust funds
Gifts and donations (humanities)
Appropriation, permanent, indefinite
Outlays
See footnotes at end of table.
5,200
m
503
BA
0
430
2,079
450
450
614
516
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-175
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent Agencies—Con.
National Foundation on the Arts and the
Humanities—Con.
Institute of Museum Services
Federal funds
General and Special Funds:
Institute of Museum Services
Appropriation, current
Outlays
503
BA
0
10,800
9,464
20,150
19,822
11,612
21,304
BA
126,045
137,964
0
122,639
133,594
D
1,395
131,594
BA
0
126,045
122,639
134,989
131,594
137,964
138,066
BA
0
5,468
4,682
6,238
5,834
6,358
6,059
B
A
1,061,300
1,308,212
995,897
1,140,300
D
655
1,064,955
1,061,300
995,897
1,140,955
1,064,955
1,308,212
1,264,112
115,080
0
102,100
*356
75,356
BA
0
102,456
75,356
115,080
111,000
2,200
3,201
2,900
2,900
2,800
2,800
30,000
50,126
75,000
94,000
75,700
74,000
National Labor Relations Board
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation current
505
Outlays
Total Salaries and expenses
138,066
National Mediation Board
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation current
Outlays
505
National Science Foundation
Federal funds
General and Special Funds:
Research and related activities
Appropriation, current
251
OutlaysTotal Research and related activities
U.S. Antarctic program
Appropriation, current
Outlays
Total U.S. Antarctic program
BA
0
251
BA
Scientific activities overseas (special foreign currency
program)
251
Appropriation, current
BA
Outlays
,... 0
Science and engineering education activities
251
Appropriation, current
BA
Outlays
0
vSee footnotes at end of table.
1,264,112
111,000
8-176
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent Agencies—Con.
National Science Foundation—Con.
Trust funds
Donations
Appropriation, permanent, indefinite
Outlays
251
BA
0
10,020
6,186
1,093,500
1,049,224
5,000
5,200
5,000
5,000
1,321,311
1,237,211
1,501,792
1,451,912
Total Federal funds National Science Foundation.
BA
0
Total Trust funds National Science Foundation....
BA
0
10,020
6,186
5,000
5,200
5,000
5,000
BA
19,970
20,845
0
18,633
20,858
D
194
20,630
BA
0
19,970
18,633
21,052
20,630
20,845
20,415
National Transportation Safety Board
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
407
Outlays
Total Salaries and expenses
20,415
Native Hawaiians Study Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
806
BA
0
190
174
16
Neighborhood Reinvestment Corporation
Federal funds
General and Special Funds:
Payment to the Neighborhood Reinvestment Corporation
451
Appropriation, current
BA
Outlays
0
15,512
15,512
15,512
15,512
15,271
15,271
BA
465,274
468,200
0
514,613
465,800
D
2,100
450,000
BA
0
465,274
514,613
467,900
450,000
468,200
464,000
Nuclear Regulatory Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
Total Salaries and expenses
See footnotes at end of table.
276
464,000
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-177
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent Agencies—Con.
Occupational Safety and Health Review
Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
554
BA
0
6,316
6,102
5.982
6,038
6,143
6,134
BA
0
6,125
8,072
2,963
2,900
2,934
2,900
Office of the Federal Inspector for the
Alaska Natural Gas Transportation System
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
276
Panama Canal Commission
Federal funds
General and Special Funds:
Operations and facilities
Appropriation, current
403
BA
434,403
439,100
* 443,946
H
0
Outlays
Total Operations and facilities
446,006
-25,375
436,600
" -25,375
441,946
BA
Deductions for offsetting receipts:
Intrafund transactions
413,725
443,946
446,006
411,225
441,946
BA
0
Summary
Federal funds:
(As shown in detail above)
434,403
0
434,403
446,006
413,725
411,225
443,946
441,946
403 BA
r\
Proprietary receipts from the public
403 BA
Total Panama Canal Commission
BA
0
00 onn
—Zo,Z\jU
_m ^
7,822
_^
g2g
_^
^
-103
19,425
-2,603
-2,000
BA
2,350
2,275
2,330
0
1,810
2,225
2,160
8,750
9,600
4,500
13,718
5,300
8,100
Pennsylvania Avenue Development
Corporation
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
451
,
Outlays
Public development
Appropriation, current
Outlays
See footnotes at end of table.
451
BA
0
8-178
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Other Independent Agencies—Con.
Pennsylvania Avenue Development
Corporation—Con.
Public Enterprise Funds:
Land acquisition and development fund
Outlays
451
-986
8,200
3,300
11,875
15,725
6,830
13,560
879,000
970,212
-278,656
970,212
*-278,656
Trust funds
Gifts and donations
Outlays
451
15
3
Total Federal funds Pennsylvania Avenue Development Corporation
BA
0
Total Trust funds Pennsylvania Avenue Develop- ment Corporation
0
11,100
14,542
15
3
Postal Service
Federal funds
General and Special Funds:
Payment to the Postal Service fund
Appropriation, current
372
.. BA
.
789,000
L
Outlays-
.. 0
.
789,088
879,000
BA
0
789,000
789,088
879,000
879,000
691,556
691,556
BA
0
430,000
440,026
420,000
420,000
405,000
405,000
BA
0
125,750
125,750
BA
BA
0
2,550,650
2,550,650
15,000
2,875,700
2,889,700
Total Federal subsidy to the Rail Industry Pension Fund
BA
0
2,550,650
2,550,650
2,890,700
2,889,700
405
14
2
Total Payment to the Postal Service fund
Railroad Retirement Board
Federal funds
General and Special Funds:
Federal windfall subsidy
601
Appropriation, current
Outlays
Ad Hoc Federal subsidy for rail unemployment insurance
603
Appropriation, current
Outlays
Federal subsidy to the Rail Industry Pension Fund
601
Appropriation, current
Appropriation, permanent, indefinite
Outlays
Milwaukee railroad restructuring, administration
603
Appropriation, current
Outlays
See footnotes at end of table.
BA
0
250
13,294
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-179
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent Agencies—Con.
Railroad Retirement Board—Con.
Trust funds
Rail Industry Pension Fund
Appropriation, permanent, indefinite
601
BA
6,276,929
8,753,000
3,537,000
0
6,802,994
6,337,771
2,401,969
(47,785)
Outlays
(56,046)
(55,422)
Limitation on administration
Railroad social security equivalent benefit account
601
Appropriation, permanent, indefinite
Outlays
BA
0
5,655,000
5,522,025
Summary
Federal funds:
(As shown in detail above)
BA
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
intrafund transactions
556,000
2,970,650
3,295,700
0
579,070
2,971,055
3,294,824
6,276,929
6,802,994
8,753,000
6,337,771
9,192,000
7,923,994
-55,761
-82,000
-87,000
BA
0
601 BA
603
gA
QQO
DA
0
Total Trust funds.....
49,091
39,000
29,000
BA
6,829,000
3,954,771
5,560,994
f
-1,133,000
-3,075,650
-4,676,700
BA
Total Railroad Retirement Board
6,370,000
4,517,690
3,414,625
6,265,000
5,448,000
0
601
3,991,625
0
3,963,760
3,850,176
4,179,118
* 104,683
Securities and Exchange Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
376
BA
89,690
Total Salaries and expenses
See footnotes at end of table.
0
89,905
BA
89,690
94,320
104,683
0
Outlays
* 93,000
D
1,320
93,411
89,905
93,411
103,634
103,634
8-180
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent Agencies—Con.
Selective Service System
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
054
BA
0
23,100
21,128
24,894
24,551
28,130
28,132
BA
147,256
145,211
155,263
C
263
D
1,157
156,158
170,682
0
BA
0
147,256
145,211
156,683
156,158
170,682
170,027
BA
0
2,000
3,365
7,040
3,740
9,000
4,700
BA
0
1,550
1,427
3,500
2,650
3,500
3,500
BA
0
8,450
9,069
9,000
8,600
13,750
13,865
BA
0
36,500
1,842
—8,000
8,500
12,000
BA
33,137
30,690
34,639
C
64
D
179
37,162
36,121
0
Total Salaries and expenses
28,130
21,128
24,500
D
197
£
197
24,551
BA
0
Outlays
23F100
BA
0
33,137
30,690
34,882
37,162
36,121
36,260
28,132
Smithsonian Institution
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
503
Outlays
Total Salaries and expenses
Museum programs and related research (special foreign currency program)
503
Appropriation, current
Outlays
Construction and improvements, National Zoological
Park
503
Appropriation, current
Outlays
Restoration and renovation of buildings
503
Appropriation, current
Outlays
Construction
503
Appropriation, current
Outlays
Salaries and expenses, National Gallery of Art 503
Appropriation, current
Outlays
170,027
36,260
Total Salaries and expenses, National Gallery of
Art
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-181
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Other Independent Agencies—Con.
Smithsonian Institution—Con.
Salaries and expenses, Woodrow Wilson International
Center for Scholars
503
Appropriation, current
BA
2,341
2,568
D
2,712
18
0
Outlays
Total Salaries and expenses, Woodrow Wilson
International Center for Scholars
2,091
2,586
2,712
BA
0
2,341
2,091
2,586
2,586
2,712
2,712
Trust funds
Canal Zone biological area fund
Appropriation, permanent
Outlays
251
BA
0
88
100
115
106
115
115
BA
0
231,234
205,691
219,396
235,765
243,064
BA
0
88
106
100
115
115
115
803 BA
0
-4
-4
—4
BA
0
231,318
193,797
205,787
219,507
235,876
243,175
Summary
Federal funds:
(As shown in detail above)
193,695
Trust funds:
(As shown in detail above)
Interfund transactions
Total Smithsonian Institution
Temporary Study Commissions
Other Temporary Commissions
Federal funds
General and Special Funds:
Commission on Executive, Legislative, and Judicial
Salaries: Salaries and expenses
805
Appropriation, current
BA
Outlays
0
M60
16
M15
Total Commission on Executive, Legislative, and
Judicial Salaries
BA
0
Commission on Wartime Relocation and Internment of
Civilians: Salaries and expenses
752
Appropriation, current
BA
Outlays
0
See footnotes at end of table.
M5
160
131
300
413
33
45
8-182
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Other Independent Agencies—Con.
Temporary Study Commissions—Con.
Other Temporary Commissions—Con.
Motor Carrier Ratemaking Study Commission: Salaries
and expenses
401
Appropriation, current
BA
Reappropriation
BA
Outlays..
0
Total Motor Carrier Ratemaking Study Commission
BA
0
National Commission on Air Quality: Salaries and expenses
304
Outlays
0
National Commission on Social Security: Salaries and
expenses
601
Outlays
0
National Transportation Policy Study Commission: Salaries and expenses
407
Outlays
0
Navajo and Hopi Indian Relocation Commission: Salaries and expenses
806
Appropriation, current
BA
1,000
283 .
.
1,028
643 ..
.
1,283
1,028
643 ..
.
18
4
4
0
9,544
18,783
D
22
14,864
Total Navajo and Hopi Indian Relocation Commission
BA
0
7,691
9,544
18,805
14,864
947
2
0
Outlays..
President's Commission for the Study of Ethical Problems in Medicine: Salaries and expenses 551
Outlays
O
President's Commission on Pension Policy: Salaries
and expenses
601
Outlays
0
Select Commission on Immigration and Refugee
Policy: Salaries and expenses
751
Outlays
0
Total Federal funds Other Temporary Commissions
BA
0
7,691
4 ..
.
9,274
11,990
18,965
15.691
840
1,245
48
Federal funds
General and Special Funds:
See footnotes at end of table.
502
BA
0
20,736
20,738
20,738
28 .
National Commission on Student Financial
Assistance
Salaries and expenses
Appropriation, current
Outlays
20,736
20,736
20,783
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-183
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
1985
estimate
Other Independent Agencies—Con.
Temporary Study Commissions—Con.
National Commission on Student Financial
Assistance—Con.
Trust funds
Grants, gifts and bequests
Outlays
502
0
-36
36 ...
Total Federal funds Temporary Study CommisBA
sions
0
10,114
13,235
18,965
15,739
Total Trust funds Temporary Study Commissions. 0
-36
36
BA
0
545,955
708,882
464,367
555,000
357,065
380,000
BA
0
216,433
160,183
85,629
200,000
115,308
117,500
BA
0
762,388
869,065
549,996
755,000
472,373
497,500
Total Federal funds Tennessee Valley Authority... BA
0
762,388
869,065
549,996
755,000
472,373
497,500
BA
836
1,853
2,051
0
982
1,864
2,051
BA
0
836
982
1,864
1,864
2,051
2,051
BA
0
-1
100
100
100
100
20,736
20,783
...
Nuclear Safety Oversight Committee
Federal funds
General and Special Funds:
Salaries and expenses
Outlays
276
0
Tennessee Valley Authority
Federal funds
Public Enterprise Funds:
Tennessee Valley Authority fund:
(Energy supply)
271
(Authority to borrow, permanent, indefinite)
(Outlays)
(Area and regional development)
452
(Appropriation, current)
(Outlays)
Total Tennessee Valley Authority fund
United States Holocaust Memorial Council
Federal funds
General and Special Funds:
Holocaust Memorial Council
Appropriation, current
806
Outlays
Total Holocaust Memorial Council
Trust funds
Gifts and donations
Appropriation, permanent
Outlays
See footnotes at end of table.
420-000 0 - 84 -
34
: QL 3
806
8-184
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent Agencies—Con.
United States Information Agency
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
154
BA
513,932
0
Salaries and expenses (special foreign currency program)
154
Appropriation, current
Outlays
Educational and cultural exchange programs
154
Appropriation, current
Outlays
National Endownment for Democracy
154
Appropriation, current
Outlays
Radio broadcasting to Cuba
154
Appropriation, current
476,992
513,932
476,992
477,270
486,600
545,292
533,965
BA
0
10,327
9,726
10,450
10,652
8,235
11,027
BA
0
100,000
79,500
120,264
111,907
BA
0
18,000
16,200
31,300
29,970
BA
10,000
C
6
D
94
8,045
11,203
10,100
8,045
11,203
10,614
18,000
17,258
18,362
20,261
19,050
19,050
35,800
4,795
31,000
26,893
113,680
88,105
BA
0
3,685
1,335
2,625
2,537
2,125
3,641
BA
0
Total Salaries and expenses
545,292
BA
0
Outlays
471,853
c
204
D
5,213
486,600
578,059
508,771
665,182
648,151
849,024
804,638
BA
0
3,685
1,335
2,625
2,537
2,125
3,641
Outlays....
Total Radio broadcasting to Cuba
BA
0
Center for Cultural and Technical Interchange Between
East and West
154
Appropriation, current
BA
Outlays
0
Acquisition and construction of radio facilities 154
Appropriation, current
BA
Outlays
0
Trust funds
Miscellaneous trust funds
Appropriation, permanent, indefinite
Outlays
533,965
10,614
154
Summary
Federal funds:
(As shown in detail above)
Trust funds:
(As shown in detail above)
See footnotes at end of table.
,
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-185
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Other Independent Agencies—Con.
United States Information Agency—Con.
Deductions for offsetting receipts:
Proprietary receipts from the public
154 BA
0
Total United States Information Agency..
BA
0
-925
-925
2,759
409
580,818
509,180
1,700
1,612
666,882
649,763
1,200
2,716
850,224
807,354
30
1
Total Trust funds
-926
24
1
United States Metric Board
Federal funds
General and Special Funds:
Salaries and expenses
Outlays
Trust funds
Gifts and donations
Outlays
376
376
-1
United States Railway Association
Federal funds
General and Special Funds:
Administrative expenses
Appropriation, currentOutlays
401
BA
0
2,950
3,583
2,100
2,572
BA
0
4,083
1,009
-348
1,100
Water Resources Council
Federal funds
General and Special Funds:
Water resources planning
Appropriation, current...
Outlays
Trust funds
River Basin Commissions
Outlays
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
Proprietary receipts from the public
Total Federal funds..
See footnotes at end of table.
301
301
1,214
BA
0
403 BA
0
403 BA
0
852 BA
0
BA
0
13,106,396
11,819,792
14,788,154
11,386,540
-398,381
-413,828
-443,946
-179,369
-34,000
-34,000
7,782,099
7,467,511
12,658,568
11,371,964
14,310,208
10,908,594
8,388,049
8,073,461
-28,200
8-186
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1985
estimate
6,301,665
6,209,408
8,772,148
4,932,325
9,206,102
6,245,419
-2,278,634
-2,340,000
-2,305,000
-55,761
-82,000
-87,000
1983
actual
Account and functional code
Other Independent Agencies—Con.
Summary—Con.
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
Proprietary receipts from the public
Total Trust funds
Interfund transactions
Total Other Independent Agencies
B
A
0
601 B
A
0
A
603 B
0
A
908 B
0
154 B
A
0
452 B
A
0
A
806 B
0
B
A
0
49,091
39,000
29,000
-926
-925
-925
-2,450
-2,250
-1
4,012,984
3,920,727
6,385,973
2,546,150
452 B
A
0
A
601 B
0
A
803 B
0
-2,325
-2,250
-1,133,000
-3,075,650
B
A
0
10,659,754
10,252,909
6,842,177
3,881,494
-4
-4
15,966,637
10,840,210
-4,676,700
-4
16,475,681
10,113,384
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-187
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Allowances
Allowances for:
Federal funds
General and Special Funds:
Civilian agency pay raises
Appropriation, current
BA
Outlays
0
Coast Guard military pay raises
Appropriation, current
BA
Outlays
0
Increased employing agency payments for employee
retirement
Appropriation, current
BA
Outlays
0
Contingencies for:
Relatively uncontrollable programs
Appropriation, current
BA
Outlays
0
Other requirements
Appropriation, current
BA
Outlays
0
Total Federal funds Allowances for:
Summary
Federal funds:
Total Allowances
See footnotes at end of table.
7
406,000
'390,000
'39,500
'39,500
J
509,000
'509,000
0
0
0
0
BA
0
954,500
938,500
BA
0
954,500
938,500
8-188
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Budget Totals
Federal funds:
(As shown in detail above)
BA
0
Deductions for offsetting receipts:
(As shown in detail above):
Intrafund transactions
BA
Q
Receipts from off-budget Federal entities
Proprietary receipts from the public
691,572,349
643,623,635
703,646,108
670,891,932
-,1OOOn?
— /, 100, oUb
BA
,..,,,,_
Q
—14,347,115
,. BA
0
QA
765,576,018
730,592,840
c
—D,J
, . _„_ in.
—15,503,120 —1
J
J
-16,000
-226,915
(Undistributed by agency):
Proprietary receipts from the public:
Otherinterest
908
JA
-419,000
Rents and royalties on the Outer Continental
Shelf
953
Q A -10,491,496
-8,700,000
-7,400,000
Total deductions
BA
0
Federal fund totals
BA
O
648,868,940
600,920,226
661,543,181
628,789,005
722,204,174
687,220,996
BA
0
341,656,770
318,829,589
358,473,905
332,471,072
424,126,100
378,063,676
-3785,263
-4,308,610
-4,290,600
-18,762,276
-19,655,532
-20,279,119
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):
Receipts from off-budget Federal entities:
Employer share, employee retirement
BA
0
BA
0
BA
0
951 BA
0
BA
0
-42,703,409
-42,102,927
-43,371,844
J
-1,994,561
-2,086,925
-80,950
-2,427,180
J
-136,188
Total deductions-
BA
0
Trust fund totals..
BA
0
317,114,670
294,287,489
332,422,838
306,420,005
396,912,063
350,849,639
902 BA
0
-17,102,148
-19,378,792
- 22,418,470
Interfund transactions ( — ) :
Interest received by trust funds
See footnotes at end of table.
-24,542,100
-26,051,067
-27,214,037
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-189
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Budget Totals—Con.
QA
Employer share, employee retirement
•'-17,243
•'-168,892
951 BA
f
Applied by agency above
BA
Total interfund transactions
BA
Budget totalsA
See footnotes at end of table.
BA
0
866,745,362
795,969,467
912,516,713 1,006,537,842
853,759,704
925,492,240
8-190
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
actual
Account and functional code
Budget Totals—Continued
ABudget totals are distributed as follows:
1984
B
A
Federal funds:
Enacted, pending and initial requests:
Appropriations
Legislative action required ('-)
Supplemental requests pending ( ^ )
Proposed in this budget:
Supplemental requests:
Programs:
Under existing legislation (A)
Add. authorizing leg. req. ( " )
Pay:
Wage-board pay raises ( c ")
Civilian pay raises {")
Military pay raises (>-)
Rescission proposal ( " )
To be proposed separately.
Under proposed legislation ( y )
Allowances
Deductions for offsetting receipts
Under proposed legislation ( J )
Total Federal funds
Trust funds:
Enacted, pending and initial requests:
Appropriations
Proposed in this budget:
Supplemental requests:
Programs:
Under existing legislation (A)
Pay:
Wage-board pay raises ( c )
Civilian pay raises ( l ) )
To be proposed separately:
Under existing legislation (•')
Under proposed legislation (J)
Deductions for offsetting receipts
Under proposed legislation ( ' )
Total Trust funds
interfund transactions ( - )
Budget totals
See footnotes at end of table.
1985
Outlays
B
A
761,482,380
-3,730,897
Outlays
698,697,254
-5,418
85,000
666,510,180
-18,383
12,210
726,700,412
-2,686,028
37,840
2,716,716
3,686
2,316,138
356,282
3,686
177,361
861,861
1,206,740
-388,549
175,082
876,861
1,197,859
-192,863
2,971
24 587
16,126
-165,170
291,457
14,848
-42,086,927
-16,000
-42,086,927
-16,000
4,292,281
3,532,254
-43,144,929
-226,915
2,841,834
3,460,300
-43,144,929
-226,915
661,543,181
628,789,005
722,204,174
687,220,996
358,186,153
332,812,327
422,649,312
379,729,373
261,696
19,000
20,000
74
701
4
20
78
721
28,000
-2,743
-26,051,067
332,422,838
-81,449,306
912,516,713
28,000
-389,030
-26,051,067
306,420,005
1,476,788
-26,996,899
-217,138
-1,685,721
-26,996.899
-217,138
396,912,063
350,849,639
-81,449,306 -112,578,395
-112,578,395
853,759,704
1,006,537,842
925,492,240
1985
estimate
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-191
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Off-Budget Federal Entities
Department of Agriculture
Federal funds
Public Enterprise Funds:
Rural electrification and telephone revolving fund
271
Appropriation, current
BA
Authority to borrow, permanent
Outlays
BA
0
260,522
-1,765
Total Rural electrification and telephone revolving fund
BA
0
260,522
-1,765
Rural telephone bank
Appropriation, current
197,862
"-197,862
2,059 .
2,059 .
.
452
BA
30,000
Authority to borrow, permanent, indefinite
BA
113,910
Outlays
0
58,592
30,000
-30,000
116,864
H
30,000
154,060
BA
0
143,910
58,592
146,864
154,060
144,413
151,611
Total Federal funds Department of Agriculture.... BA
0
404,432
56,827
148,923
154,060
144,413
151,611
BA
0
2,074,060
1,640,635
650,000
2,157,000
1,889,550
1,668,320
Foreign military sales credit, FFB (loan guarantee
originations)
152
Authority to borrow, permanent, indefinite
BA
Outlays
0
3,553,114
2,857,517
4,312,750
3,630,950
2,770,200
1,963,500
H
Total Rural telephone bank
144,413
151,611
Department of Energy
Federal funds
General and Special Funds:
SPR petroleum
Appropriation, current
Outlays
274
Department of the Treasury-Federal
Financing Bank v 'f
Funds Appropriated to the President
International Security Assistance
Federal funds
General and Special Funds:
See footnotes at end of table.
8-192
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Off-Budget Federal Entities—Con.
Department of the Treasury-Federal
Financing Bank—Con.
Funds Appropriated to the President—Con.
Overseas Private Investment Corporation
Federal funds
Public Enterprise Funds:
Overseas Private Investment Corporation, FFB (loan
asset sales)
151
Outlays
—5,209
-5,865
-5,289
BA
3,553,114
4,312,750
2,770,200
0
Total Federal funds Funds Appropriated to the
President
0
2,852,308
3,625,085
1,958,211
343,800
403,400
Department of Agriculture
Rural Electrification Administration
v
Federal funds
Public Enterprise Funds:
REA, FFB (loan asset sales)
Authority to borrow, permanent, indefinite
271
BA
Outlays
J
492,700
-33,300
0
REA, FFB (loan guarantee originations)
Authority to borrow, permanent, indefinite
Outlays
403,400
BA
343,800
403,400
459,400
0
Total REA, FFB (loan asset sales)
343,800
492,700
' -33,300
343,800
403,400
459,400
BA
0
3,153,551
2,657,356
3,765,000
3,565,000
3,395,000
3,185,000
271
Total Federal funds Rural Electrification Administration
BA
3,497,351
4,168,400
3,854,400
0
3,001,156
3,968,400
3,644,400
BA
4,160,000
6,934,247
4,394,461
695,000
1,539,247
237,461
BA
4,440,000
6,111,606
3,963,263
0
1,755,000
2,181,606
1,853,263
Farmers Home Administration
Federal funds
Public Enterprise Funds:
Agricultural credit insurance fund, FFB (loan asset
sales)
351
Authority to borrow, permanent, indefinite
Outlays
Rural housing insurance fund, FFB (loan asset
sales)
371
Authority to borrow, permanent, indefinite
Outlays
See footnotes at end of table.
0
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-193
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Off-Budget Federal Entities—Con.
Department of the Treasury-Federal
Financing Bank—Con.
Department of Agriculture—Con.
Rural development insurance fund, FFB (loan asset
sales)
452
Authority to borrow, permanent, indefinite
Outlays
Total Federal funds Department of Agriculture....
1,010,000
505,000
1,625,654
645,654
1,124,857
529,857
BA
9,610,000
14,671,507
9,482,581
0
Total Federal funds Farmers Home Administration
BA
0
2,955,000
4,366,507
2,620,581
13,107,351
18,839,907
13,336,981
5,956,156
8,334,907
6,264,981
3,000
3,000
5,000
5,000
BA
0
Department of
Defense-Military
Federal funds
Public Enterprise Funds:
DOD, Defense production guarantees, FFB (loan guarantee originations)
051
Authority to borrow, permanent, indefinite
Outlays
BA
0
1,057
1,057
BA
0
8,363
8,363
10,000
-35,000
74,600
74,600
BA
0
545,500
545,500
470,500
470,500
195,800
195,800
Total Federal funds Energy Programs
BA
0
553,863
553,863
480,500
435,500
270,400
270,400
Total Federal funds Department of Energy
BA
0
553,863
553,863
480,500
435,500
270,400
270,400
BA
0
3,014
-2,048
-6,900
-7,400
Department of Energy
Energy Programs
Federal funds
General and Special Funds:
Geothermal resources development fund, FFB (loan
guarantee originations)
271
Authority to borrow, permanent, indefinite
Outlays
Alternative fuels production, FFB (loan guarantee
originations)
271
Authority to borrow, permanent, indefinite
Outlays
Department of Health and Human Services
Health Resources and Services Administration
Federal funds
Public Enterprise Funds:
Medical facilities guarantee and loan fund, FFB (loan
asset sales)
551
Authority to borrow, permanent, indefinite
Outlays
See footnotes at end of table.
8-194
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Off-Budget Federal Entities—Con.
Department of the Treasury-Federal
Financing Bank—Con.
Department of Health and Human
Con.
Services-
Health maintenance organization loan and loan guarantee fund, FFB (loan asset sales)
551
Authority to borrow, permanent, indefinite
Outlays
Total Federal funds Health Resources and Services Administration
BA
0
BA
0
Total Federal funds Department of Health and
Human Services
BA
0
9,113
-12,278
9,800
7,300
12,127
9,800
-14,326
12,127
-14,326
400
9,800
400
2,600
100
2,600
-7,300
2,600
-7,300
Department of Housing and Urban
Development
Housing Programs
Federal funds
Public Enterprise Funds:
Low-rent public housing-loans and other expenses,
FFB (loan guarantee originations)
604
Authority to borrow, permanent, indefinite
Revolving fund (liquidating programs), FFB (loan
guarantee originations)
451
Authority to borrow, permanent, indefinite
Outlays
Total Federal funds Housing Programs
BA
473,944
202,000
1,200,000
0
Outlays
442,539
160,208
1,169,306
BA
0
33,500
33,500
BA
473,944
235,500
1,200,000
0
442,539
193,708
1,169,306
BA
0
117,053
60,325
182,000
134,000
120,000
47,000
Community Planning and Development
Federal funds
General and Special Funds:
Community development grants, FFB (loan guarantee
originations)
451
Authority to borrow, permanent, indefinite
Outlays
New Community Development Corporation
Federal funds
Public Enterprise Funds:
New communities fund, FFB (loan guarantee originations)
451
Outlays
Total Federal funds Department of Housing and
Urban Development
0
-33,500
See footnotes at end of table.
BA
590,997
417,500
1,320,000
0
502,864
294,208
1,216,306
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-195
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Off-Budget Federal Entities—Con.
Department of the Treasury-Federal
Financing Bank—Con.
Department of Interior
Territorial Affairs
Federal funds
General and Special Funds:
Territory of the Virgin Islands, FFB (loan guarantee
originations)
806
Outlays
0
-404
0
-17,289
-438
-468
Department of Transportation
Federal Railroad Administration
Federal funds
General and Special Funds:
Rail service assistance, FFB (loan guarantee originations)
401
Outlays
Grants to National Railroad Passenger Corporation,
FFB (loan guarantee originations)
401
Authority to borrow, permanent, indefinite
0
24,631
24,631
-880,000
BA
0
Outlays
18,963
7,910
12,000
-10,108
10,000
-111
BA
0
43,594
15,252
12,000
-890,108
10,000
-111
BA
0
43,594
15,252
12,000
-890,108
10,000
-111
8,780
3,332
BA
Public Enterprise Funds:
Railroad rehabilitation and improvement financing
fund, FFB (loan guarantee originations)
401
Authority to borrow, permanent, indefinite
Outlays
Total Federal funds Federal Railroad Administration
Total Federal funds Department of Transportation
Department of the Treasury
Federal funds
Intragovernmental Funds:
Federal Financing Bank °
Outlays
803
National Aeronautics and Space
Administration
Federal funds
General and Special Funds:
Space flight, control, and data communication, FFB
(loan guarantee originations)
255
Authority to borrow, permanent, indefinite
Research and development, FFB (loan guarantee originations)
255
Authority to borrow, permanent, indefinite
Outlays
See footnotes at end of table.
1,078,624
BA
BA
0
189,467
189,467
-947,224
8-196
THE BUDGET FOR FISCAL YEAR 1985
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Off-Budget Federal Entities—Con.
Department of the Treasury-Federal
Financing Bank—Con.
National Aeronautics and Space
Administration—Con.
Space flight, control, and data communication, FFB
(loan guarantee originations)
255
Outlays
,
1,078,624
0
Total Federal funds National Aeronautics and
Space Administration
BA
0
189,467
189,467
1,078,624
131,400
0
-3,267
-9,516
-10,521
BA
0
159,906
92,286
235,000
153,000
200,000
98,000
BA
0
101,004
99,367
495,000
493,000
325,000
321,000
0
-9,582
-10,000
-10,000
BA
0
260,910
182,071
730,000
636,000
525,000
409,000
BA
0
160,515
160,515
164,800
164,800
88,300
88,300
BA
0
421,425
339,319
894,800
791,284
613,300
486,779
BA
0
18,472,995
10,404,336
26,048,881
12,728,570
18,328,481
10,193,798
Other Independent Agencies
General Services Administration
Federal funds
Intragovemmental Funds:
Federal buildings fund, FFB (loan guarantee originations)
804
Outlays
Small Business Administration
Federal funds
Public Enterprise Funds:
SB A, Small business investment companies, FFB (loan
guarantee originations)
376
Authority to borrow, permanent, indefinite
Outlays
SBA, Section 503 loan guarantees, FFB (loan guarantee originations)
376
Authority to borrow, permanent, indefinite
Outlays
SBA, Small business development company loans, FFB
(loan asset sales)
376
Outlays
Total Federal funds Small Business Administration
Tennessee Valley Authority
Federal funds
Public Enterprise Funds:
Tennessee Valley Authority fund, Seven States Corp.,
FFB (loan guarantee originations)
271
Authority to borrow, permanent, indefinite
Outlays
Totai Federal funds Other Independent Agencies..
Total Federal funds Department of the Treasury—Federal Financing Bank
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-197
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
actual
Account and functional code
1984
estimate
1985
estimate
Off-Budget Federal Entities—Con.
Postal Service
Federal funds
Public Enterprise Funds:
Postal Service
Authority to borrow, permanent, indefinite
372
BA
200,404
2,163,435
4,180,377
0
322,206
1,208,911
2,800,771
BA
0
5,632
-66,788
-52,676
BA
16,214
66,597
162,431
BA
0
21,173,737
12,357,216
29,077,836
16,195,865
24,705,252
14,814,500
Budget totals
BA
0
866,745,362
795,969,467
912,516,713 1,006,537,842
853,759,704 925,492,240
Total, including off-budget entities
BA
0
887,919,099
808,326,683
941,594,549 1,031,243,094
869,955,569 940,306,740
Outlays
United States Railway Association
Federal funds
Public Enterprise Funds:
Regional rail reorganization program
Authority to borrow, permanent, indefinite
Outlays
401
Synthetic Fuels Corporation
Federal funds
Public Enterprise Funds:
Synthetic Fuels Corporation
Contract authority, permanent
271
Summary
Federal funds:
(As shown in detail above)
A
Supplemental under existing legislation.
"Supplemental Additional authorizing legislation required.
Supplemental for wage-board pay raises.
"Supplemental for civilian pay raises.
E
Supplemental for military pay raises.
''Proposed transfer to other accounts for pay rates ( - ) .
° Proposed transfer from other accounts for pay raises.
"Rescission proposal.
'Proposed for later transmittal under existing legislation.
J
Proposed for later transmittal under proposed legislation.
A
Additional authorizing legislation required.
c
'- Legislative action required.
M
Negative amounts indicate that the offsetting collections credited to the respective subfunctions exceed the gross disbursements.
* Off-budget Federal entity (Rural Electrification and Telephone Revolving Fund).
° Miscellaneous outlays not attributed to any single program.
"Supplemental request pending.
t In order to reflect the transactions of the Federal Financing Bank (FFB) account on behalf of other agencies, budget authority and outlays of the
FFB account are shown by agency, account title, and subfunction of the account being serviced. The non-lending FFB transactions are shown in
subfunction 803 (central fiscal operations).
PART 9
SUMMARY TABLES
420-000 O - 84 - 35 : QL 3
9-1
9-2
THE BUDGET FOR FISCAL YEAR 1985
EXPLANATORY NOTE RELATING TO THE
SUMMARY TABLES
Types of tables.—This part of the budget consists of
tables as follows:
• Tables 1 through 13 are short summary tables of the
budget.
• Tables 14 through 16 provide greater detail in support of
financial data in the first three tables.
• Table 17 presents 5-year projections of the estimated
costs of proposed legislation pursuant to section 221(a) of
the Legislative Reorganization Act of 1970.
• Tables 18 and 19 provide detailed information on direct
loan and guaranteed loan activity within the Federal
credit control system.
• Tables 20 through 26 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 or stub entries:
• July 1 through June 30 for the 1976 and prior fiscal
periods.
• July 1 through September 30, 1976, for the transition
quarter (TQ).
• October 1 through September 30 for the 1977 and subsequent fiscal periods.
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.
NOTES
The 1985 budget reflects establishment of a military retirement trust fund in
Department of Defense-Civil presentations effective October 1, 1984, in accordance
with Public Law 98-94. In selected summary tables, additional entries in parentheses show amounts for previous years adjusted to reflect imputed charges for accruals in subfunction 051, the accrual offset in subfunction 951, and transfer of cash
payments to retired military personnel to subfunction 602.
The outlay totals for 1983 exceed Treasury outlay totals by $53 million primarily
due to adjustments in outlays of the (a) Tennessee Valley Authority ( + $49 million),
(b) Department of Interior payments to Papago trust and cooperative fund ( + $15
million), and (c) National Credit Union Administration central liquidity facility
(-$11 million).
PART 9—TABLE OF CONTENTS
Page
Table 1. Budget summary
Table 2. Budget receipts by source and budget outlays by agency, 1983-89
Table 3. Budget outlays by function, 1983-89
Table 4. Differences between current services and the budget: outlays by
function, 1984-89
Table 5. Budget authority by agency, 1983-89
Table 6. Budget authority by function, 1983-89
Table 7. Differences between current services and the budget: budget authority by function, 1984-89
Table 8. Budget authority and outlays available through current action by
Congress
Table 9. Relation of budget authority to outlays
Table 10. Obligations incurred, net
Table 11. Balances of budget authority
Table 12. Full-time equivalent of total Federal civilian employment in the
executive branch
Table 13. Budget financing and debt
Table 14. Budget receipts by source
Table 15. Offsetting receipts by type
Table 16. Outlays by function and agency
Table 17. Legislative proposals for major new and expanded programs in the
1985 budget, projections of costs
Table 18. New direct loan obligations by agency
Table 19. New guaranteed loan commitments by agency
Table 20. Controllability of budget outlays, 1975-85
Table 21. Budget receipts by source, 1975-85
Table 22. Budget outlays by function, 1975-85
Table 23. Federal transactions in the national income accounts, 1974-85
Table 24. Federal finances and the gross national product, 1966-87
Table 25. Composition of budget outlays in current and constant (fiscal year
1972) prices: 1965-87
Table 26. Budget receipts and outlays, 1789-1989
9-3
9-4
9-5
9-6
9-8
9-9
9-10
9-12
9-13
9-14
9-15
9-16
9-17
9-18
9-19
9-22
9-25
9-40
9-42
9-43
9-44
9-46
9-48
9-59
9-60
9-61
9-62
9-4
THE BUDGET FOR FISCAL YEAR 1985
Table 1. BUDGET SUMMARY
(In millions of dollars)
1983
actual
1984
estimate
525,556
507,673
166,484
521,830
4,835
317
535,138
-149,603
551,517
9,301
628,885
-183,164
866,745
(21,174)
(887,919)
912,517
(29,078)
(941,595)
1,006,538
(24,705)
(1,031,243)
600,562
670,071
745,127
795,969
(12,357)
(808,327)
853,760
(16,196)
(869,956)
925,492
(14,814)
(940,307)
-195,407
(-12,357)
(-207,764)
-183,689
(-16,196)
(-199,884)
-180,365
(-14,814)
(-195,179)
Description
1985
estimate
THE BUDGET
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 l
Total budget authority..
Budget authority, off-budget Federal entities..
Receipts, outlays, and surplus or deficit:
Receipts:
Total budget receipts
Outlays:
Total budget outlays
Outlays, off-budget Federal entities
Outlays, including off-budget Federal entities..
Surplus or deficit ( — ) :
Total budget deficit ( - )
Deficit, off-budget Federal entities
Total deficit (-)
THE CREDIT BUDGET
New obligations and commitments:
New direct loan obligations
New guaranteed loan commitments 2 ..
41,358
97,221
130,483
-3,879
13,150
39,385
2,547
10,470
38,938
49,408
Total
135,233
4,814
10,496
34,098
Net loans and loan guarantees:
Net direct loans:
On-budget
Off-budget
Net guaranteed loans 2
31,694
98,789
138,579
Total
37,862
97,371
48,656
51,955
FEDERAL DEBT
1982
actual
Debt outstanding, end of period:
Gross Federal debt
Held by:
Government agencies
The public
Federal Reserve System
Others
1
These
2
1,146,987
1,381,886
1,591,573
1,828,388
217,560
929,427
134,497
794,929
240,116
1,141,770
155,527
986,243
266,803
1,324,770
310,618
1,517,770
consist of intragovernmental transactions and proprietary receipts from the public.
To avoid double counting, excludes guarantees (or commitments) of loans previously guaranteed and guarantees (or commitments) by one
Government account of direct loans made by another Government account.
9-5
SUMMARY TABLES
Table 2. BUDGET RECEIPTS BY SOURCE AND BUDGET OUTLAYS BY AGENCY, 1983-89
(In billions of dollars)
1983
actual
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..
Estimate
1984
1985
1986
1987
1988
1989
288.9
37.0
209.0
35.3
6.1
8.7
15.6
293.3
66.6
239.5
38.2
5.9
9.1
17.5
328.4
76.5
270.7
38.4
5.6
9.4
16.0
364.1
297.8
34.1
5.1
9.6
16.3
401.6
97.9
324.1
33.4
4.6
9.9
16.3
447.3
103.9
362.2
33.9
4.3
10.3
16.3
490.7
107.9
394.8
34.5
4.7
11.1
16.6
600.6
670.1
745.1
814.9
887.8
978.3 1,060.3
1.7
1.0
.1
11.1
37.7
2.0
1.8
1.1
.1
12.1
36.1
1.8
1.8
1.1
.1
12.6
36.4
1.8
1.8
1.2
.1
12.6
36.2
1.9
1.8
1.2
.1
11.9
36.3
2.0
264.4
301.8
339.2
369.8
398.8
20.0
21.1
22.5
23.9
25.2
15.5
9.9
318.1
15.2
4.4
3.7
26.4
3.1
26.2
149.5
4.2
.3
15.5
11.0
340.3
15.1
4.2
3.7
25.5
2.8
27.4
162.8
4.0
.2
15.3
11.3
366.3
16.5
4.2
3.7
25.0
3.1
28.0
173.2
3.8
.3
15.3
11.7
394.0
16.7
4.2
3.7
23.8
3.2
27.9
177.1
3.7
.3
15.2
11.9
421.0
16.7
4.3
3.8
23.5
3.3
27.8
177.7
3.6
.3
7.4
23.7
.4
26.7
10.1
.9
7.8
25.2
.4
27.8
9.0
4.0
8.1
26.9
.4
28.9
8.4
6.3
8.6
28.6
.3
30.0
7.6
8.5
9.0
30.2
.3
-58.3
-70.5
-76.9
-82.3
-91.1
Budget outlays by agency:
Legislative branch
1.7
1.4
The Judiciary
.9
.8
Executive Office of the President
.1
.1
Funds appropriated to the President
8.1
5.5
Agriculture
34.8
46.4
Commerce
2.2
1.9
Defense—Military:1
(204.4) (231.0)
Including accruals
Excluding accruals
205.0
231.0
Defense—Civil:
Including military retirees
(18.9) (19.6)
Excluding military retirees
3.1
2.9
Education
14.6
16.1
Energy
8.4
8.8
Health and Human Services
276.6 296.0
Housing and Urban Development
15.3
15.9
Interior
4.9
4.6
Justice
3.4
2.8
Labor
27.1
38.1
State
2.6
2.3
Transportation
25.3
20.6
Treasury
116.4 137.7
Environmental Protection Agency
4.0
4.3
General Services Administration
.5
.2
National Aeronautics and Space Adminis6.7
7.1
tration
22.6
Office of Personnel Management
21.3
Small Business Administration
.4
.5
Veterans Administration
24.8
25.8
Other agencies
10.3
10.8
Allowances2
Undistributed offsetting receipts:
Including accrual offset
(-51.1) ( -53.4)
Excluding accrual offset
-35.7 -36.9
Total budget outlays.
Budget surplus or deficit(-)
1
2
796.0
853.8
925.5
87.9
30.9
6.9
10.9
992.1 1,068.3 1,130.3 1,183.7
-195.4 -183.7 -180.4 -177.1 -180.5 -152.0 -123.4
Includes allowances for civilian and military pay raises for Department of Defense.
Includes allowances for civilian agency pay raises and increased employing agency payments for employee retirement.
Note.—Beginning in 1985, the budget reflects establishment of a military retirement trust fund. Entries in parentheses show amounts for 1983
and 1984 on a comparable basis.
9-6
THE BUDGET FOR FISCAL YEAR 1985
Table 3. BUDGET OUTLAYS BY FUNCTION, 1983-89
(In billions of dollars)
1983
actual
National defense:
Military personnel:
Including accruals
Excluding accruals
Retired military personnel:
Consistent with accrual presentation
Cash payments
Operation and Maintenance
Procurement
Other 1
Total national defense:
Including accruals
Excluding accruals
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
Social security and medicare:
Social security
Medicare
Total social security and medicare
Estimate
1984
1985
1986
1987
1988
1989
69.7
71.5
73.0
73.9
76.9
77.6
50.3
86.6
91.2
63.0
95.9
106.7
74.5
103.6
117.1
86.1
111.1
126.4
97.7
272.0
310.6
348.6
379.7
409.1
13.5
8.3
3.5
12.3
10.7
3.8
26.1
7.6
17.5
8.8
3.1
11.3
14.3
1.1
27.1
7.6
17.9
9.4
2.9
10.6
12.0
.6
28.3
7.1
18.8
9.8
2.5
10.2
11.9
1.2
28.9
6.8
18.9
10.3
2.6
10.1
11.4
.2
28.7
6.6
18.3
10.8
2.6
10.1
10.9
-.6
28.8
6.4
26.6
28.7
28.7
30.7
27.9
32.9
27.7
34.7
27.6
37.2
27.7
39.9
27.8
42.7
170.7
52.6
179.2
61.1
190.6
69.7
204.2
76.5
218.8
84.8
233.7
93.8
248.6
103.3
223.3
240.2
260.3
280.7
303.7
327.5
351.9
(60.9)
45.5
(64.5)
48.0
(• - )
15.9
64.9
53.6
30.5
(
;
16.5
68.5
64.4
40.0
(209.9)
210.5
(237.5)
237.5
9.0
7.7
4.0
12.7
22.2
4.4
21.4
6.9
67.3
*
Income security:
General retirement and disability insurance
Federal employee retirement:
Including military retirees
Excluding military retirees
Unemployment compensation
Housing assistance
Food and nutrition assistance
Other income security
5.6
5.5
5.7
5.8
5.9
6.1
6.3
(36.5)
20.6
31.5
9.6
18.0
21.1
(38.1)
21.6
20.7
10.0
17.6
20.5
40.0
42.6
45.4
48.2
51.1
20.1
10.9
17.1
20.6
19.5
11.3
17.9
20.7
18.8
12.0
18.7
21.2
17.3
12.5
19.2
22.5
16.7
13.0
19.9
22.3
Total income security:
Including military retirees
Excluding military retirees....
(122.2)
106.2
(U2.5)
114.4
117.9
122.0
125.8
129.3
96.0
9-7
SUMMARY TABLES
Table 3. BUDGET OUTLAYS BY FUNCTION, 1983-89—Continued
(In billions of dollars)
1983
actual
Veterans benefits and services
Administration of justice
General government
General purpose fiscal assistance
Net interest
Estimate
1985
1986
1987
1988
1989
25.8
6.0
5.7
6.7
108.2
26.7
6.1
5.7
6.7
116.1
27.8
6.1
5.7
6.8
124.2
28.9
6.2
5.7
7.0
130.9
30.2
6.3
5.9
7.1
130.8
31.0
6.4
5.9
7.3
126.3
.4
3.0
5.1
7.3
9.6
.5.
1.1
1.1
1.2
1.3
.9
24.8
5.1
4.8
6.5
89.8
1984
4.0
6.3
8.5
10.9
27.9
-31.6
-34.2
-37.1
-39.8
-7.4
-11.3
-11.6
-11.0
-12.2
-35.3
-42.9
-45.8
-48.1
-52.0
925.5
992.1
1,068.3
1,130.3
1,183.7
Allowances:
Civilian agency pay raises 2
Increased employing agency payments for employee retirement
Total allowances
Undistributed offsetting receipts:
Employer-share, employee retirement:
Including accrual offset
(-23.5) (-25.3)
Excluding accrual offset
-8.1
-8.8
Rents and royalties on the Outer
Continental Shelf
-8.7
-10.5
Total undistributed offsetting
receipts:
Including accrual offset
(-310) (-34.0)
Excluding accrual offset
-18.6 -17.5
Total budget outlays
796.0
853.8
*50 million or less.
1
Includes allowances for civilian and military pay raises for Department of Defense—Military.
2
includes allowances for military pay raises for the Coast Guard.
Note. Beginning in 1985, the budget reflects the establishment of a military retirement trust fund. Entries in parentheses show amounts for
1983 and 1984 on a comparable basis.
9-8
THE BUDGET FOR FISCAL YEAR 1985
Table 4. DIFFERENCES BETWEEN CURRENT SERVICES AND THE BUDGET:
OUTLAYS BY FUNCTION, 1984-1989
(In billions of dollars)
Estimate
1984
Current services estimates
Differences:
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
Social security and medicare:
Social security
Medicare
Total social security and medicare...
Income security:
General retirement and disability insurance
Federal employee retirement
Unemployment compensation
Housing assistance . .
Food and nutrition assistance
Other income security
Total income security
Veterans benefits and services
Administration of justice
General government
General purpose fiscal assistance
Net interest
Allowances 2
Undistributed offsetting receipts
Total differences
Total budget outlays
1985
854.0
944.9
1,019.2
1,094.2
1,163.1
1,229.9
.1
.3
*
*
-12.2
3.4
.4
-.2
-.5
*
-11.4
4.3
1.2
-.4
-.7
-2.0
-.5
.1
-4.1
4.7
2.2
-.6
-.9
-1.8
-.7
-4.6
4.4
2.9
-.6
-1.0
-1.6
-.9
.8
-.7
10.5
4.0
3.4
-.6
-1.1
-1.6
1.1
1.1
-.9
-1.1
-1.5
-2.5
-2.1
-3.5
-2.4
-4.3
-2.8
-5.1
-3.2
-.1
-.1
-1.0
.1
-2.1
-.1
3.5
.2
-5.2
.2
-7.2
-.1
-1.1
-2.2
-3.6
-5.4
-7.4
-.1
-.2
*
*
.2
.7
.2
1.3
*
.2
1.6
*
.3
-1.8
*
.3
-2.0
*
-.1
*
.1
-.6
.9
.5
-.7
-1.3
.6
-.8
-1.3
.7
-.8
-1.4
-.9
-.9
-1.5
-.4
-2.5
-4.0
-4.5
-5.0
-5.6
*
*
*
.1
*
*
-.1
-1.8
.7
-.2
-.1
-.3
-7.4
.7
.8
-.2
-.2
-.3
-9.6
.7
.9
-.2
-.1
.5
-.2
-.1
-.2
-4.6
.6
-.7
-2.4
-3.0
-3.6
-4.1
-.3
-19.4
27.1
-25.9
32.8
-46.2
853.8
925.5
992.1
1,068.3
1,130.3
1,183.7
.1
*
*
*
*
-.1
1987
1986
-.4
4
1988
-.1
* 50 million or less.
1
Includes allowances for civilian and military pay raises for Department of Defense-Military.
2
Includes allowances for civilan agency pay raises and increased employing agency payments for employee retirement.
1989
.4
12.2
.8
9-9
SUMMARY TABLES
Table 5. BUDGET AUTHORITY BY AGENCY, 1983-89
(In billions of dollars)
Estimate
Department or other unit
1983 actual
1984
Legislative branch
1.7
1.7
.9
The Judiciary
.8
Executive Office of the President
.1
.1
3.3
Funds appropriated to the President
16.5
56.4
27.8
Agriculture
1.9
Commerce
2.0
Defense—Military: *
(238.7)
Including accruals
(258.1)
239.5
258.2
Excluding accruals
Defense—Civil:
(19.2)
Including military retirees
(19.6)
2.7
Excluding military retirees
3.4
15.4
15.4
Education.
9.3
9.7
Energy
280.2
295.0
Health and Human Services
16.0
13.7
Housing and Urban Development
Interior
5.0
4.6
3.0
Justice
3.4
Labor
36.4
36.2
State
2.8
2.9
Transportation
26.3
28.6
Treasury
117.1
137.9
Environmental Protection Agency
3.7
4.0
General Services Administration
.7
.3
National Aeronautics and Space Admin
7.2
6.9
istration
35.7
37.8
Office of Personnel Management
1.0
.6
Small Business Administration
25.S
26.3
Veterans Administration
10.7
16.0
Other agencies
Allowances2
Undistributed offsetting receipts:
-17.1
-19.4
Interest received by trust funds
Interest received from Outer Continental Shelf escrow account
Employer share, employee retirement:
(-23.5) (-25.3)
Including accrual offset
-8.1
-8.8
Excluding accrual offset
Rents and royalties on the Outer
-10.5
-8.7
Continental Shelf
Total undistributed offsetting receipts:
(-5U)
Including accrual offset
-35.7
Excluding accrual offset
Total budget authority
1
866.7
(-53.4)
1985
1986
1987
1988
1989
1.7
1.0
.1
13.1
35.0
1.6
1.8
1.1
.1
13.5
35.5
1.6
1.8
1.1
.1
13.3
35.7
1.7
1.8
1.2
.1
13.2
36.3
1.9
1.8
1.3
.1
13.1
36.2
2.0
305.0
349.6
379.2
411.5
446.1
29.9
33.4
36.8
40.3
43.4
15.4
10.8
324.8
10.5
4.3
3.7
28.0
3.4
28.6
149.7
4.2
.3
15.6
11.8
354.8
12.9
4.3
3.7
28.7
3.3
29.3
162.9
4.0
.4
15.5
12.1
386.5
16.5
4.3
3.7
30.9
3.4
29.1
173.2
4.0
.4
15.5
12.3
434.5
14.0
4.3
3.8
31.6
3.5
28.8
176.8
3.9
.4
15.4
12.6
475.4
14.3
4.3
3.8
32.0
3.5
28.5
177.4
3.9
.4
7.5
40.9
.6
27.2
16.5
1.0
7.9
45.5
.6
28.3
15.9
4.2
8.3
48.9
.6
29.5
14.8
6.4
8.8
52.3
.4
30.5
14.5
8.6
9.2
55.5
.4
31.3
13.2
11.0
-22.6
-26.2
-30.2
-34.2
-39.1
-.4
-1.4
-.9
-27.9
-31.6
-34.2
-37.1
-7.4
-11.3
-11.6
-11.0
-12.2
-58.3
-70.5
-76.9
-82.3
-91.1
-36.9
912.5
1,006.5 1,100.3 1,181.2 1,268.2 1,345.1
Includes allowances for civilian and military pay raises for Department of Defense.
2
Includes allowances for civilian agency pay raises and increased employing agency payments for employee retirement.
Note.—Beginning in 1985, the budget reflects establishment of a military retirement trust fund. Entries in parentheses show amounts for 1983
and 1984 on a comparable basis.
9-10
THE BUDGET FOR FISCAL YEAR 1985
Table 6. BUDGET AUTHORITY BY FUNCTION, 1983-89
(In billions of dollars)
1983
actual
National defense:
Military personnel:
Including accruals
Excluding accruals
Retired military personnel:
Consistent with accrual presentation
Cash payments
Operation and maintenance
Procurement
Other 1
1986
1987
1988
1989
67.8
70.1
71.8
73.3
74.4
48.6
(...)
. ..
Total social security and
medicare
Income security:
General retirement and disability insurance
Federal employee retirement:
Including military retirees
Excluding military retirees
Unemployment compensation
Housing assistance
Food and nutrition assistance
Other income security
Total income security:
Including military retirees ...
Excluding military retirees
16.2
66.5
80.4
37.1
16.6
70.9
86.0
43.3
80.9
107.6
57.0
90.6
126.0
72.3
100.1
137.0
80.1
107.8
147.1
93.3
115.4
161.5
105.3
(265.3)
313.4
359.0
389.1
421.6
456.4
245.8
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...
(•••••)
(65.1)
1985
(245.0)
Total national defense:
Including accruals
Excluding accruals
Social security and medicare.Social security
Medicare
(610)
45.7
Estimates
1984
265.3
7.2
23.0
22.3
22.3
22.4
22.4
21.3
8.0
4.1
13.3
31.0
5.3
27.0
8.6
3.4
11.5
4.2
5.5
29.4
9.1
3.1
10.8
12.1
5.1
29.5
9.5
3.1
10.6
11.7
5.1
30.2
10.0
2.6
10.4
11.3
6.4
30.0
10.5
2.4
10.4
11.4
6.4
29.7
11.0
2.4
10.4
10.7
6.6
29.4
8.7
7.2
6.4
6.6
6.6
6.7
6.8
28.2
25.0
31.2
31.6
27.5
31.8
27.8
34.7
27.9
37.3
27.9
40.0
28.0
42.8
184.1
46.4
175.9
62.8
198.5
70.2
213.2
227.0
82.0 . 96.8
271.8
96.1
302.2
104.0
230.5
238.7
268.7
295.2
323.8
368.0
406.2
5.0
8.0
6.7
7.3
6.7
6.6
6.7
(5U)
(53.6)
67.5
75.4
82.0
88.5
94.7
35.2
29.3
10.0
18.2
21.0
37.0
26.4
8.0
17.7
20.4
21.9
5.6
17.2
20.3
22.5
7.8
17.9
20.7
24.5
10.2
18.7
21.2
24.9
7.6
19.2
22.5
25.0
7.8
20.0
22.3
(134.9)
(134.1)
139.2
151.6
163.3
169.3
176.4
118.7
117.6
9-11
SUMMARY TABLES
Table 6. BUDGET AUTHORITY BY FUNCTION, 1983-89—Continued
(In billions of dollars)
1983
actual
Veterans benefits and services
Administration of justice
General government
General purpose fiscal assistance
Net interest
Estimates
1985
1986
1987
1988
1989
26.3
6.0
5.6
6.7
108.2
27.3
6.1
5.8
6.7
116.1
28.4
6.2
5.9
6.8
124.2
29.6
6.3
5.8
7.0
130.9
30.5
6.4
6.0
7.1
130.8
31.4
6.5
6.1
7.3
126.3
.4
25.4
5.4
5.5
6.4
89.8
1984
3.1
5.2
7.4
9.7
Allowances:
Civilian agency pay raises 2
Increased employing agency
payments for employee retirement
.5
1.1
1.1
1.2
1.3
1.0
4.2
6.4
8.6
11.0
Undistributed offsetting receipts:
Employer share, employee retirement:
Including accrual offset
(-23.5) (-25.3)
Excluding accrual offset
-8.8
-8.1
Rents and royalties on the
Outer Continental Shelf
-8.7
-10.5
-27.9
-31.6
-34.2
-37.1
-39.8
-7.4
-11.3
-11.6
-11.0
-12.2
Total undistributed offsetting receipts:
Including accrual offset- (-34.0) (-34.0)
Excluding accrual offset
-18.6
-17.5
-35.3
-42.9
-45.8
-48.1
-52.0
1,006.5
1,100.3
1,181.2
1,268.2
1,345.1
Total allowances
Total budget authority....
1
866.7
912.5
Includes allowances for civilian and military pay raises for Department of Defense—Military.
2
Includes allowances for military pay raises for the Coast Guard.
Note: Beginning in 1985, the budget reflects the establishment of a military retirement trust fund. Entries in parentheses show amounts for
1983 and 1984 on a comparable basis.
9-12
THE BUDGET FOR FISCAL YEAR 1985
Table 7. DIFFERENCES BETWEEN CURRENT SERVICES AND THE BUDGET:
BUDGET AUTHORITY BY FUNCTION, 1984-1989
(In billions of dollars)
Estimate
1984
Current services estimates
Differences:
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
Social security and medicare:
Social security
Medicare
Total social security and medicare...
Income security:
General retirement and disability insurance
Federal employee retirement
Unemployment compensation
Housing assistance
Food and nutrition assistance
Other income security
Total income security
Veterans benefits and services
Administration of justice
General government
General purpose fiscal assistance
Net interest
Allowances2
Undistributed offsetting receipts
Total differences
Total budget authority
1985
1986
911.8
1,031.0
1,118.4
.3
.9
*
*
-15.4
5.3
.5
-.2
-.9
-1.1
-.6
.5
-.5
_ \
*
1987
1988
1989
1,204.0
1,301.9
1,389.7
-4.6
5.0
1.3
.3
-1.2
-1.5
-.7
*
-.5
-6.4
4.7
2.4
.4
-1.4
-1.8
-.8
.5
-.8
-10.1
4.3
3.1
.4
-1.5
-1.4
-.9
.9
-1.0
-15.0
3.8
3.5
-.5
-1.7
-1.6
-1.0
-1.3
-1.2
-2.5
-1.6
-3.3
-2.3
-4.1
-2.7
-4.9
-3.1
-5.7
-3.5
*
.8
.6
.7
1.5
4.7
-6.2
3.3
6.0
*
.3
.9
.9
*
-.8
-1.5
-2.8
*
*
.9
.1
-4.6
-.6
-.9
3.6
.2
-5.7
-.7
-1.3
4.7
.2
-3.4
.8
-1.3
5.8
.3
-6.5
-.8
-1.4
6.9
.3
-6.7
-.9
-1.5
-5.0
4.0
.6
-2.6
2.0
.1
.1
.1
-.1
-1.8
-.6
.7
.2
-.1
-.2
-4.6
.7
.7
-.2
-.1
-.3
-7.4
.7
.7
-.2
_ I
-.3
-9.6
.7
.7
.3
-.4
-12.2
8
*
.1
.1
*
*
*
-.3
-.1
-.4
*
*
*
-.1
*
-.7
-2.4
-3.0
-3.6
-4.1
.7
-24.3
18.1
-22.9
-33.6
44.6
912.5
1,006.5
1,100.3
1,181.2
1,268.2
1,345.1
* 50 million or less.
1
2
Includes allowances for civilian and military pay raises for Department of Defense-Military.
Includes allowances for civilian agency pay raises and increased employing agency payments for employee retirement.
9-13
SUMMARY TABLES
Table 8. BUDGET AUTHORITY AND OUTLAYS AVAILABLE THROUGH CURRENT ACTION BY CONGRESS
(In millions of dollars)
Budget authority
Department or other unit
Legislative branch
The Judiciary
Executive Office of the President
Funds appropriated to the President
Agriculture
Commerce
Defense—Military 1
Defense—Civil
Education
Energy
Health and Human Services
Housing and Urban Development
Interior
Justice
Labor
State
Transportation
Treasury
Environmental Protection Agency
General Services Administration
National Aeronautics and Space Administration
Office of Personnel Management
Small Business Administration
Veterans Administration
Other independent agencies
Allowances 2
Total..
Outlays
1384
estimate
1985
estimate
1983
actual
1984
estimate
1985
estimate
1,590
811
101
8,844
24,554
1,960
239,673
3,446
15,415
12,618
90,223
15,813
5,310
3,046
17,773
2,326
23,446
9,153
3,729
567
1,650
912
111
18,049
24,401
1,985
258,653
2,686
15,424
13,899
73,771
13,502
5,067
3,446
15,827
2,494
11,993
9,572
4,054
479
1,606
1,024
117
13,914
23,048
1,598
305,673
2,858
15,478
12,738
75,443
10,283
5,029
3,675
6,118
2,873
11,398
9,902
4,293
500
1,240
733
83
2,924
21,669
1,204
140,456
2,042
4,534
5,675
82,635
1,214
3,475
2,473
16,118
1,902
8,041
8,533
801
368
1,378
826
95
3,973
22,166
1,206
151,671
1,708
4,891
6,892
66,220
1,015
3,522
2,873
8,458
2,109
7,322
8,999
966
425
1,458
930
100
6,296
22,280
1,044
170,731
1,772
4,848
6,335
68,134
1,101
3,463
3,151
2,238
2,471
6,349
9,199
1,084
444
6,875
5,386
1,017
24,611
7,269
7,218
5,900
598
25,492
9,798
7,491
6,449
569
26,455
11,330
954
4,991
5,154
877
21,595
5,490
5,406
5,431
541
22,534
5,854
5,612
5,253
511
23,180
5,576
938
525,556
526,982
560,817
344,230
336,482
354,498
1983
actual
MEMORANDUM
Appropriations to liquidate contract
authority: 3
Agriculture
Defense—Military
Housing and Urban Development
Interior
Transportation
Other independent agencies
Total..
9,607
11
9,344
*
9,948
10,697
2
12,838
4
11,663
19,303
33,148
25,802
525,556
526,982
560,817
344,230
336,482
354,498
507,673
535,138
628,885
412,002
163,630
42,591
430,426
184,808
51,647
505,396
204,766
43,997
14,140
ADDENDUM
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...
Total budget authority and outlays
-126,554 -108,719 -143,938 -126,554
-39,930 -40,884 -39,226 -39,930
866,745
912,517 1,006,538
795,969
-108,719 -143,938
-39,226
853,760
925,492
*$500 thousand or less.
1
Includes allowances for civilian and military pay raises for Department of Defense.
2
Includes allowances for civilian agency pay raises and increased employing agency payments for employee retirement.
3
Excluded from budget authority above.
4
Outlays from appropriations to liquidate contract authority are included as outlays from balances.
9-14
THE BUDGET FOR FISCAL YEAR 1985
Table 9. RELATION OF BUDGET AUTHORITY TO OUTLAYS
(In millions of dollars)
Description
Budget authority available through current action by Congress:
Enacted, pending, or recommended herein:
Appropriationsl
Contract authority
Authority to borrow
Reappropriations and ^authorizations
To be requested separately:
Appropriationsx
Contract authority
Total budget authority available through current action by Congress (table 8)
Budget authority available without current action by Congress
(permanent authorizations):
Appropriations1
Contract authority
Authority to borrow
Deductions for offsetting receipts (table 15):
Intragovernmental transactions
Proprietary receipts from the public
Total budget authority for the year (table 5 ) .
Unobligated balances and adjustments:
Unobligated balances:
Brought forward at start of year (table 11)
Written off (rescinded, lapsed, e t c . ) 2
Carried forward at end of year (table 11)
Obligations incurred, net (table 10)..
Obligated balances:
Brought forward at start of year, funded (table 11)
Adjustments in expired accounts
Adjustments in unexpired accounts
Deficiency appropriations
Carried forward at end of year (table 11)
Budget outlays (table 3)..
1983 actual
1984 estimate
1985 estimate
514,040
7,402
4,258
965
544,052
4,245
3,219
1
317
9,331
-30
525,556
526,982
560,817
465,622
20,110
21,940
503,397
29,355
2,386
587,640
30,365
10,880
-126,554
-39,930
-108,719
-40,884
866,745
912,517
-143,938
-39,226
1,006,538
360,706
-2,894
-384,793
384,793
-4,308
-399,168
399,168
-2,804
-434,863
839,764
893,833
968,038
484,391
-1,748
-10,152
516,285
-357
-4,583
551,419
-40
-2,894
-516,285
-551,419
-591,031
795,969
853,760
925,492
510,452
648,869
641,210
600,920
524,225
661,543
663,660
628,789
555,079
722,204
725,452
687,221
503,303
20,226
926
1,102
MEMORANDUM
Federal funds included above:
Budget authority available through current action by Congress..
Budget authority 3
Obligations incurred, net 3
Budget outlays 3
1
Excludes appropriations to liquidate contract authority:
Enacted, pending, or recommended herein
2
3
1983
actual
32,609
1984
estimate
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.
46,741
1985
estimate
39,175
9-15
SUMMARY TABLES
Table 10. 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.
Agriculture
Commerce
Defense—Military:1
Including accruals
Excluding accruals
Defense—Civil:
Including military retirees
Excluding military retirees
Education
Energy
Health and Human Services
Housing and Urban Development
Interior
Justice
Labor
State
Transportation
Treasury
Environmental Protection Agency
General Services Administration
National Aeronautics and Space Administration..
Office of Personnel Management
Small Business Administration
Veterans Administration
Other independent agencies.Export-Import Bank
Federal Deposit Insurance Corporation
Federal Home Loan Bank Board
U.S. Postal Service
Railroad Retirement Board
All other independent agencies
Allowances2
Undistributed offsetting receipts:
Including accrual offset
Excluding accrual offset
Total..
1983 actual
1984 estimate
1985 estimate
1,609
808
100
1,813
52,554
1,921
1,726
918
111
12,905
24,342
2,140
1,752
1,029
117
13,480
33,321
1,600
(227,037)
227,629
(257,638)
257,687
297,473
(19,151)
3,197
14,922
8,701
272,801
29,782
4,883
2,931
38,463
2,257
26,080
116,486
5,021
731
6,695
21,819
432
25,220
(19,494)
2,942
16,494
10,471
296,842
23,546
5,101
3,575
28,952
2,727
28,644
137,815
4,196
733
7,579
23,342
536
26,149
20,097
-875
-982
-231
789
3,904
6,019
1,768
-1,424
-325
879
3,876
6,528
2,850
-1,696
-874
692
4,197
6,256
954
(-51,078)
-35,716
839,764
(-53,443)
-36,940
893,833
-58,279
641,210
297,791
-99,238
839,764
663,660
311,622
-81,449
893,833
725,452
355,165
-112,578
968,038
15,372
10,670
318,637
21,480
4,313
3,699
26,363
3,102
27,855
149,611
4,207
443
7,497
24,633
362
26,825
968,038
MEMORANDUM
Federal funds
Trust funds
Interfund transactions..
Total
1
(ncludes allowances for civilian and military pay raises for Department of Defense.
2
Includes allowances for civilian agency pay raises and increased employing agency payments for employee retirement.
Note.—Beginning in 1985, the budget reflects establishment of a military retirement trust fund. Entries in parentheses show amounts for
1983-84 on a comparable basis.
9-16
THE BUDGET FOR FISCAL YEAR 1985
Table 11. BALANCES OF BUDGET AUTHORITY
(In millions of dollars)
Start 1983
End 1984
End 1983
End 1985
Department or other unit
Obligated
Legislative branch
The Judiciary
Executive Office of the
President
Funds appropriated to the
President
Agriculture
Commerce
Defense—Military J
Defense—Civil 2
Education
Energy
Health and Human Services
Housing and Urban
Development
Interior
Justice
Labor
State
Transportation
Treasury
Environmental Protection
Agency
General Services Administration..
National Aeronautics and Space
Administration
Office of Personnel
Management
Small Business Administration....
Veterans Administration
Other independent agencies:
Export-Import Bank
Federal Deposit Insurance
Corporation
Federal Home Loan Bank
Board
Railroad Retirement Board
All other independent
agencies
3
Allowances
Total..
278
64
Unobligated
196
78
Obligated
407
Unobligated
265
85
465
Unobligated
284
93
17
19
15
Obligated
Obligated
475
99
Unobligated
234
101
18
44,373 23,581 38,972 26,250 43,740 29,685 46,077 29,331
16,257 1,655 21,971 2,513 11,346 2,511 6,924 2,857
1,437
201
955
207
380 1,344
379
1,381
107,610 34,634 128,672 43,386 155,358 42,966 188,432 50,492
427
707
952 10,139
840
666
957
381
11,245 1,943 11,398 2,467 11,819 1,205 11,673 1,120
58
383 9,773
7,200 1,139 7,434 1,491 9,014
23,452 33,843 19,426 40,366 20,287 38,514 20,838 44,692
203,994 73,073 213,390 62,768 217,501
2,163 1,815 2,366 1,962 2,613
287
595
456
173
396
1,969 12,242 2,266 10,332 3,888
494 1,806
560 1,347
610
25,012 8,584 30,142 9,018 33,437
1,647 29,574 1,752 30,360 1,859
54,788 221,630 45,669
1,438 2,560 1,397
133
545
157
17,834 3,841 18,155
2,006
655 2,310
8,983 35,071 9,731
30,395 1,961 30,488
10,100
181
2,054
1,214
10,245
667
1,258
1,139
10,483
854
1,066
627
10,503
1,035
1,063
454
1,322
661
1,346
803
1,857
442
1,984
436
8,146 123,113
149 1,259
12,001
4,002
9,038 139,401
158 1,444
12,402
4,133
399
5,716
6,198
13,787
9,165
7
171
1,639
491
3,089
6,838 94,731
980
104
11,865
3,266
7,369 108,633
1,218
56
3,624
11,920
8,978
6,421
171
1,264
465
3,072
539
1,043
524
3,118
12,805
8,934
787
1,992
2,060
15,211
9,491
2,140
1,989
171
1,790
509
3,016
16
16,907
10,365
3,247
2,035
484,391 360,706 516,285 384,793 551,419 399,168 591,031 434,863
MEMORANDUM
Federal funds...
Trust funds
Total..
1
425,428 189,715 454,963 193,361 484,899 186,936 520,199 180,889
58,963 170,990 61,322 191,432 66,520 212,232 70,832 253,974
484,391 360,706 516,285 384,793 551,419 399,168 591,031 434,863
Includes balances of allowances for civilian and military pay raises for Department of Defense.
2
Includes obligated balances of $69 million and unobligated balances of $9,583 million in 1985 due to the establishment of the military
retirement trust fund.
3
Includes balances of allowances for civilian agency pay raises.
9-17
SUMMARY TABLES
Table 12. FULL-TIME EQUIVALENT OF TOTAL FEDERAL CIVILIAN EMPLOYMENT IN THE EXECUTIVE
BRANCH *
{Excluding the Postal Service)
Fiscal year
1982 revised
Budget
estimate 2
Agriculture
Commerce
Defense—civil functions
Education
Energy
Health and Human Services
Housing and Urban Development
Interior
Justice
Labor
State
Transportation
Treasury
Environmental Protection Agency
National Aeronautics and Space Administration
Veterans Administration
Other:
Agency for International Development
General Services Administration
Nuclear Regulatory Commission
Office of Personnel Management
Panama Canal Commission
Small Business Administration
Tennessee Valley Authority
United States Information Agency
Miscellaneous
Contingencies
Estimated nondefense lapse
Subtotal
Defense—military functions4
Total
1
1983 actual 3
1984 estimate
1985 estimate
1986 estimate
121,000
36,300
32,100
6,600
18,700
154,000
15,700
81,700
54,400
21,600
22,900
68,100
124,300
12,900
109,773
32,715
30,973
5,360
16,984
141,715
13,779
73,451
55,686
18,968
23,786
61,752
118,507
10,883
108,900
33,505
29,088
5,189
16,757
137,321
12,878
73,232
58,748
19,246
24,759
62,000
125,526
11,598
107,400
32,507
29,034
4,979
16,042
130,445
12,442
72,826
60,473
18,634
25,442
61,369
122,522
12,298
107,400
33,095
29,034
4,749
15,711
127,184
12,073
72,826
61,488
18,697
25,744
60,468
122,400
12,298
22,700
209,600
22,246
216,848
22,000
219,347
22,000
221,555
22,000
222,677
5,600
32,800
3,400
6,600
9,100
4,700
44,700
7,600
45,000
1,000
5,169
28,391
3,403
5,601
8,636
4,231
35,646
7,906
39,625
5,201
29,128
3,416
5,837
8,578
4,200
35,500
8,356
39,853
5,108
28,812
3,491
5,822
8,490
4,100
36,000
8,810
39,578
4,983
28,209
3,491
5,822
8,525
3,900
36,000
8,897
39,199
1,163,100
937,700
1,092,034
984,806
2,076,840
-13,752
1,086,411
995,499
2,081,910
-8,176
1,082,003
1,002,823
2,084,826
-5,434
1,081,436
1,003,000
2,084,436
2,100,800
Excludes developmental positions under the Worker-Trainee Opportunity Program (WTOP) as well as certain statutory exemptions.
As contained in the revised 1982 Budget, transmitted to the Congress in March 1981.
Data are estimated for portions of Defense-civil functions as well as for the Federal Reserve System, Board of Governors and the International
Trade Commission.
4
Section 904 of the 1982 Defense Authorization Act (Public Law 97-86) exempts the Department of Defense from full-time equivalent
employment controls. Data shown are estimated.
2
3
420-000 O - 84 - 36 : QL 3
9-18
THE BUDGET FOR FISCAL YEAR 1985
Table 13. BUDGET FINANCING AND DEBT
(In millions of dollars)
BUDGET FINANCING
1983
actual
-199,884
195,179
17,116
2,511
2,133
477
1,039
293
514
1,456
143
580
Change in debt held by the public
16,884
2,179
-183,000
-193,000
212,344
Total requirements for borrowing from the public
-4,580
-212,344
Total, means of financing other than borrowing from the public...
Nonbank investors
Commercial banks
Federal Reserve System
-180,365
-14,814
-9,701
Means of financing other than borrowing from the public-.
Decrease or increase ( —) in cash and other monetary assets
Increase or decrease (—) in liabilities for:
Checks outstanding etc 1 .
Deposit fund balances
Seigniorage on coins
-183,689
-16,196
-207,764
Total deficit ( - )
1985
estimate
-195,407
-12,357
Budget surplus or deficit (—)
Deficit ( - ) , off-budget Federal entities
1984
estimate
183,000
193,000
132,814
58,500
21,030
.
DEBT, END OF YEAR
1982
actual
Gross Federal debt:
Debt issued by Treasury
Debt issued by other agencies..
Total gross Federal debtHeld by:
Government agencies
The public
Federal Reserve System..
Others
1,142,035
4,952
1,146,987
1,377,211
4,675
1,381,886
1,587,106
4,467
1,591,573
1,824,041
4,347
1,828,388
217,560
929,427
134,497
794,929
240,116
1,141,770
155,527
986,243
266,803
1,324,770
310,618
1,517,770
DEBT SUBJECT TO STATUTORY LIMITATION END OF YEAR
Debt issued by Treasury
Treasury debt not subject to limitation
Agency debt subject to limitation
Total debt subject to statutory limitation 2
1
1,142,035
606
1,485
1,377,211
605
1,347
1,587,106
-604
1,276
1,824,041
604
1,237
1,142,913
1,377,953
1,587,778
1,824,674
Includes military payment certificates, accrued interest (less unamortized discount) on Treasury debt, and as an offsetting change in assets,
certain collections in transit.
2
The statutory debt limit is permanently established at $1,490 billion (Public Law 98-161). Legislation is required to change the limit.
9-19
SUMMARY TABLES
Table 14. BUDGET RECEIPTS BY SOURCE
(In millions of dollars)
Source
Individual income taxes:
Withheld
Other
Proposed legislation
Gross individual income taxes.
Refunds
Net individual income taxes..
Corporation income taxes:
Existing law
Proposed legislation
Refunds
Net corporation income taxes..
Social insurance taxes and contributions (trust funds):
Employment taxes and contributions:
Old-age and survivors insurance
Proposed legislation
Disability insurance
Proposed legislation
Hospital insurance
Proposed legislation
Railroad retirement:
Social security equivalent account
Railroad retirement*•
Total employment taxes and contributions
Unemployment insurance:
State taxes deposited in Treasury 2
Proposed legislation
Federal unemployment tax receipts 2
Proposed legislation
Railroad unemployment tax receipts 2
Total unemployment insurance
Other retirement contributions:
Federal employees' retirement—employee contributions..
Proposed legislation
Contributions for non-Federal employees3
Proposed legislation
Total other retirement contributions..
1984
estimate
1985
estimate
266,046
83,585
273,112
79,817
783
300,794
82,983
5,050
349,631
60,692
353,712
60,452
388,827
60,417
288,938
293,260
328,410
61,780
24,758
84,900
698
18,992
88,124
1,063
12,647
37,022
66,606
76,540
128,972
152,543
18,348
15,907
"35,641"
"40,040
173,738
796
16,633
77
45,279
207
2,805
3,202
1,478
2,182
185,766
211,692
240,390
14,425
17,910
4,206
5,225
1983
actual
168
195
18,985
63
5,916
15
227
18,799
23,330
25,207
4,351
4,392
78
79
4,342
651
82
12
4,429
4,471
5,086
208,994
239,494
270,683
3,779
1,597
237
22
-78
3,925
1,666
259
21
3,968
1,690
273
21
Total alcohol taxes...
5,557
5,791
5,872
Tobacco taxes:
Cigarettes
Cigars
Cigarette papers and tubes..
Other
Refunds
4,099
34
2
5
-4
5,106
36
2
5
-5
5,180
36
2
5
-5
Total social insurance taxes and contributions..
Excise taxes:
Federal funds:
Alcohol taxes:
Distilled spirits
Beer
Wines
Special taxes in connection with liquor occupations..
Refunds
9-20
THE BUDGET FOR FISCAL YEAR 1985
Table 14. BUDGET RECEIPTS BY SOURCE—Continued
(In millions of dollars)
Source
Total tobacco taxes..
Manufacturers' excise taxes:
Gasoline
Firearms, shells, and cartridges..
Fishing rods, creels, etc
Pistols and revolvers
Bows and arrows
Gas guzzler tax
Windfall profit tax
Refunds
Total manufacturers' excise taxes..
Miscellaneous excise taxes:
General and toll telephone and teletype service..
Wagering taxes, including occupational taxes
Employee pension plans
Tax on foundations
Foreign insurance policies
Other
Refunds
Total miscellaneous excise taxes..
Undistributed Federal tax deposits and unapplied collections..
Total Federal fund excise taxes
Trust funds:
Highway:
Gasoline
Trucks, buses, and trailers
Tires, innertubes, and tread rubber..
Diesel fuel used on highways
Use-tax on certain vehicles
Truck parts and accessories
Lubricating oils
Refunds
Total highway trust f u n d Airport and airway:
Transportation of persons
Waybill tax
Tax on fuels
International departure tax
Tires and innertubes
Refunds
,
Total airport and airway trust fund
Black lung disability insurance trust fund
Inland waterway trust fund
Hazardous substances response trust fund....
Post-closure liability trust fund
1984
estimate
1983
actual
4,136
5,144
5,218
49
63
34
24
7
4
12,999
-92
13,088
69
84
40
34
7
6
9,846
-383
9,703
69
89
44
36
8
6
8,262
-62
8,452
1,343
12
9
118
-44
4
-193
1,249
1,973
14
10
102
78
1
-10
2,168
37
3
23,143
2,201
14
10
103
86
1
-14
2,401
56
24,086
6,140
338
616
958
236
48
28
-68
-222
12,763
1,889
118
95
62
1
2,222
133
118
84
2,480
150
126
89
2,165
494
29
230
2,555
493
39
264
32
15,052
38,195
-2
2,843
538
46
276
34
16,500
38,443
8,655
5,922
9,064
5,645
9,370
86
14,492
91
14,352
93
14,799
8,297
11,214
Total excise taxes
35,300
Customs duties
4
Miscellaneous receipts: 5
Miscellaneous taxes
Deposit of earnings, Federal Reserve System.
21,943
8,875
721
310
1,412
592
-14
3
-231
11,668
Total trust fund excise taxes...
Estate and gift taxes..
1985
estimate
6,053
9,150
1,057
200
1,515
1,063
9-21
SUMMARY TABLES
Table 14. BUDGET RECEIPTS BY SOURCE—Continued
(In millions of dollars)
Source
Alternative fuels production
Fees for permits and regulatory and judicial services:
Immigration, passport, and consular fees
Patent and copyright fees
Registration and filing fees
Coal mining reclamation fees
Miscellaneous fees for permits, licenses, etc
Miscellaneous-fees for regulatory and judicial services.
Fees for legal and judicial services
Proposed legislation
Total fees for permits and regulatory and judicial services
Fines, penalties, and forfeitures
Proposed legislation
Restitutions, reparations, and recoveries under military occupation..
Gifts and contributions
Refunds and recoveries
Total miscellaneous receipts..
Total budget receipts
1983
actual
1984
estimate
1985
estimate
184
1
179
196
48
72
2
211
219
217
207
51
131
225
219
48
136
681
817
330
4
26
-26
250
2,000
2
34
-15
860
267
1
32
-15
15,601
17,531
16,037
600,562
670,071
745,127
13
MEMORANDUM
Federal funds
Trust funds
Interfund transactions....
382,432
317,368
-99,238
420,009 464,246
331,511 393,460
-81,449 -112,578
*$500 thousand or less.
1
In 1985, rail pension fund.
2
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
the railroads.
3
Represents employer and employee contributions to the civil service retirement and disability fund for covered employees of Governmentsponsored, privately owned enterprises and the District of Columbia municipal government.
4
Includes both Federal and trust funds. Trust fund amounts in customs duties are: 1983, $30 million; 1984, $30 million; and 1985, $30
million.
5
Includes both Federal and trust funds. Trust fund amounts in miscellaneous receipts are: 1983, $110 million; 1984, $128 million; and 1985,
$143 million.
Note.—Estimates for 1984 and 1985 include effects of proposed legislation.
9-22
THE BUDGET FOR FISCAL YEAR 1985
Table 15. OFFSETTING RECEIPTS BY TYPE
(In millions of dollars)
Type
1983
actual
1984
estimate
1985
estimate
INTRAGOVERNMENTAL TRANSACTIONS
Intrabudgetary transactions:
Federal intrafund transactions:
Interest on Government capital in enterprises
Other
x
Total trust intrafunds
Total intrafund transactions
Interfund transactions:
Distributed by agency:
Federal fund payments to trust funds:
Contributions to insurance programs:
Old-age, survivors, and disability insurance
Military retirement fund
Supplementary medical insurance
Hospital insurance
Railroad social security equivalent benefits
Railroad industry pension
Civilian supplementary retirement contributions
Unemployment insurance
Other
Miscellaneous contributions:
State and local government fiscal assistance
Other
Subtotal
Trust fund payments to Federal funds:
Repayment of loans or advances to trust funds
Charges for services to trust funds
Other
Subtotal
Total interfunds distributed by agency
Undistributed by agency:
Employer share, employee retirement:
Civil service retirement and disability insurance
Old-age, survivors, disability, and hospital insurance (contribution as
employer) 2
Military retirement fund
Other Federal employees retirement
Total employer share, employee retirement
5,345
26
5,925
28
7,189
Total Federal intrafunds
Trust intrafund transactions:
Railroad retirement/social security
Other
7,027
162
5,371
5,953
2,279
1,507
2,340
1,969
2,305
1,986
3,785
4,309
4,291
10,974
9,679
10,243
21,130
4,481
14,238
4,541
16,811
1,010
15,659
11,933
1,524
2,551
15,990
4,104
949
3,711
8,949
18,217
1,336
1,906
984
16,240
1,645
446
4,567
198
4,567
191
4,567
207
73,791
50,655
58,208
1,713
155
350
3,425
133
1,084
5,087
135
1,252
2,218
4,642
6,474
76,008
55,296
64,682
3,380
3,455
4,083
2,709
3,261
38
41
3,752
17,426
48
6,128
6,757
25,309
9-23
SUMMARY TABLES
Table 15. OFFSETTING RECEIPTS BY TYPE—Continued
(In millions of dollars)
Type
1983
actual
1984
estimate
1985
estimate
INTRAGOVERNMENTAL TRANSACTIONS—Continued
Undistributed by agency—Continued
Interest received by trust funds
Total interfund transactions
Total intrabudgetary transactions
Receipts from off-budget Federal entities:
Distributed by agency:
Interest on loans to Government-owned enterprises
Surplus income, Federal Financing Bank
Other
Total distributed by agency
17,102 19,396 22,587
99,238 81,449 112,578
110,212 91,129 122,822
14,184 15,319 18,346
184
207
163
14,347 15,503 18,553
Undistributed by agency:
Employer share, employee retirement
Total receipts from off-budget Federal entities
Total intragovernmental transactions
1,995 2,087 2,563
16,342 17,590 21,116
126,554 108,719 143,938
PROPRIETARY RECEIPTS FROM THE PUBLIC
Distributed by agency:
Interest:
Interest on loans, Foreign Assistance Act
Other interest on foreign loans and deferred foreign collections....
Interest on deposits in tax and loan accounts
Other interest (domestic-civil) 3
Total interest
Dividends and other earnings
Rents:
Rent and bonuses from land leases, etc
Rent of land and other real property
Rent of equipment and other personal property
Total rents
Royalties
Sale of products:
Sale of timber and other natural land products
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
289
362
602
614
925
970
909
546
2,492 2,725
14
9
289
681
700
1,091
2,761
94
-11
30
33
29
13
1
13
4
8 0 1,063
7
99
32
35
16
6
1,164
485
1,209
514
7
137
2,352
1,157 1,422
1,287 1,281
692
548
*
*
154
346
3,482 3,404
9-24
THE BUDGET FOR FISCAL YEAR 1985
Table 15. OFFSETTING RECEIPTS BY TYPE—Continued
(In millions of dollars)
Type
1983
actual
1984
estimate
1985
estimate
PROPRIETARY RECEIPTS FROM THE PUBLIC—Continued
Fees and other charges for services and special benefits:
Medicare premiums and other charges (trust fund)
Revenues for enrichment of uranium
Nuclear waste disposal revenues
Veterans life insurance (trust funds)
Tolls and other revenues, Panama Canal
Other 3
Total fees and other charges..
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)
Sale of scrap and salvage material
Total sale of property..
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
Other
Total realization upon loans and investments
Recoveries and refunds 3
Miscellaneous receipt accounts 3
Total proprietary receipts from the public distributed by agency
Undistributed by agency:
Other interest: Interest received from Outer Continental Shelf escrow account.
Rents and royalties on the Outer Continental Shelf:
Rents and bonuses
Royalties
Total proprietary receipts from the public undistributed by agency..
Total proprietary receipts from the public 4
Total offsetting receipts
6,015
4,253
1,697
65
447
398
934
7,794
4,960
2,105
311
434
414
990
9,213
378
432
444
1,175
8,444
33
208
222
-196
13,180 13,300 12,900
82
75
78
13,092 13,586 13,204
385
137
131
82
620
339
126
131
84
138
342
117
131
88
188
817
1,355
86
6
496
21
9
94
904
864
1,083
29,438 32,184 31,407
419
7,544
2,948
10,491
5,200 4,100
3,500 3,300
8,700 7,819
39,930 40,884 39,226
166,484 149,603 183,164
*$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.
2
Includes provision for covered Federal civilian employees and military personnel.
3
Includes both Federal funds and trust funds.
4
Consists of-.
1984
1983
1985
estimate
actual
estimate
Federal funds
Trust funds
21,167
18,762
21,229
19,656
18,866
20,360
9-25
SUMMARY TABLES
Table 16. OUTLAYS BY FUNCTION AND AGENCY
(In millions of dollars)
Function and department or other unit
050
1984
estimate
1985
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 1
Allowances
Deductions for offsetting receipts
Total 0 5 1 .
053 Atomic energy defense activities:
Department of Energy
054 Defense-related activities:
Department of Defense—Civil
General Services Administration
Other independent agencies:
Central Intelligence Agency
Federal Emergency Management Agency..
Intelligence Community Staff
Selective Service System
Deductions for offsetting receipts
Total 054.
Total national defense.
150
1983
actual
45,523
15,945
64,915
53,624
20,554
3,524
1,316
48,040
16,505
68,539
64,450
25,157
4,072
4,764
-389
-526
67,324
20
76,854
77,576
30,458
4,908
4,760
3,198
-698
205,012
231,000
264,400
5,171
6,002
7,133
-217
144
8,949
19
91
195
14
21
196
86
275
16
25
99
339
22
28
-8,949
301
546
507
210,484
237,548
272,040
3,141
992
356
6
-534
3,640
1,052
393
10
-495
3,636
1,319
701
9
-496
3,960
4,601
5,170
3,892
-137
5,640
2
-126
7,887
4
-117
3,755
5,516
7,775
37
1
2,046
40
1
2,346
34
1
2,402
16
19
-351
18
22
-373
24
28
-285
1,766
2,054
2,204
INTERNATIONAL AFFAIRS
151 Foreign economic and financial assistance:
Funds appropriated to the Presidentx
Department of Agriculture
Department of State
Department of Transportation (trust funds)
Deductions for offsetting receipts
Total 151.
152 International security assistance:
Funds appropriated to the President
Department of State
Deductions for offsetting receipts
Total 152.
153 Conduct of foreign affairs:
Funds appropriated to the President
Department of Justice
Department of State 1
Other independent agencies:
Arms Control and Disarmament Agency.
International Trade Commission
Deductions for offsetting receipts
Total 153.
9-26
THE BUDGET FOR FISCAL YEAR 1985
Table 16. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
154 Foreign information and exchange activities:
Other independent agencies-.
Board for International Broadcasting
Japan-United States Friendship Commission (trust funds) .
United States Information Agency*
Deductions for offsetting receipts
1983
actual
1984
estimate
1985
estimate
91
2
510
-1
118
2
651
-1
101
2
808
-1
602
770
911
12,113
-518
12,442
-221
13,004
-218
578
-13,262
1,724
-13,384
1,635
-12,988
-1,089
561
1,432
8,995
13,502
17,492
589
621
684
1,055
*
1,242
*
1,457
*
1,644
1,864
2,141
253 Space flight:
National Aeronautics and Space Administration
4,053
4,091
3,884
254 Space, science, applications, and technology:
National Aeronautics and Space Administration
1,486
1,590
1,899
Total 154
155 International financial programs:
Funds appropriated to the President1
Department of the Treasury
Other independent agencies: Export-Import Bank of the United
States
Deductions for offsetting receipts
Total 155
Total international affairs
250
GENERAL SCIENCE, SPACE, AND TECHNOLOGY
251 General science and basic research:
Department of Energy
Other independent agencies:
National Science Foundation *
•
Smithsonian Institution (trust funds)
Total 251
255 Supporting space activities:
National Aeronautics and Space Administration1
Total general science, space, and technology
270
562
746
894
7,745
8,291
8,818
27
4,947
18
16
59
709
-3,354
31
5,532
46
68
33
555
-4,232
2
3,267
1
163
36
380
-2,243
2,421
2,032
1,606
476
*
459
30
380
30
477
490
410
ENERGY
271 Energy supply:
Funds appropriated to the President
Department of Agriculture
Department of Energy *
Department of the Interior
Department of the Treasury
Environmental Protection Agency
Other independent agencies: Tennessee Valley Authority
Deductions for offsetting receipts
Total 271
272 Energy conservation:
Department of Energy
Department of Housing and Urban Development
Total 272
*
9-27
SUMMARY TABLES
Table 16. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
274 Emergency energy preparedness:
Department of Energy
276 Energy information, policy, and regulation:
Department of Energy
Other independent agencies:
Nuclear Regulatory Commission
Office of the Federal Inspector for the Alaska Natural Gas Transportation System
Nuclear Safety Oversight Committee
Deductions for offsetting receipts
Total 276
Total energy
300
1983
actual
1984
estimate
1985
estimate
215
203
357
510
539
304
515
450
464
8
*
-146
3
3
-255
886
737
771
3,999
3,463
3,144
217
2,965
834
19
293
3,090
975
17
276
2,884
1,020
17
*
*
2
-137
*
*
*
-169
*
*
-370
3,901
4,207
3,830
2,399
50
877
8
1
-1,831
2,469
17
963
9
1
-2,597
862
2,331
18
953
9
1
-2,990
37
6
1,465
*
49
8
1,625
29
17
1,543
2
-55
2
-76
1
-87
1,454
1,608
1,502
6
4
4,294
9
9
3,974
17
9
4,240
*
*
-40
*
NATURAL RESOURCES AND ENVIRONMENT
301 Water resources:
Department of Agriculture x
Department of Defense—Civil 1
Department of the Interior 1
Department of State
Other independent agencies:
Delaware River Basin Commissions
Susquehanna River Basin Commission
Water Resources Council x
Deductions for offsetting receipts
Total 301
302 Conservation and land management:
Department of Agriculture*
Department of Commerce
Department of the Interior 1
Department of State
Other independent agencies: Marine Mammal Commission
Deductions for offsetting receipts
Total 302
303 Recreational resources:
Department of Agriculture
Department of Defense—Civil
Department of the Interior 1
Department of Transportation
Other independent agencies: Advisory Council on Historic
Preservationx
Deductions for offsetting receipts
Total 303
304 Pollution control and abatement:
Department of Agriculture
Department of Transportation
Environmental Protection Agency J
Other independent agencies:
Interstate Commission on the Potomac River Basin
Other temporary commissions
Deductions for offsetting receipts
1,503
-55
323
-95
9-28
THE BUDGET FOR FISCAL YEAR 1985
Table 16. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
Total 304.
306 Other natural resources:
Department of Commerce1
Department of the Interior 1
Deductions for offsetting receipts..
Total 306
Total natural resources and environment..
350
1985
estimate
4,263
3,937
4,171
926
635
-13
1,548
12,669
1,033
667
-11
1,689
12,302
954
603
-37
1,521
11,346
20,630
-2
20,628
8,927
12,599
8,927
12,599
1,692
-114
1,578
22,206
1,853
-87
1,766
10,693
1,817
-97
1,720
14,319
1,830
1,550
2,085
1,227
1,842
-260
-613
-453
-189
2,125
-1,424
-700
-125
1,063
-1,696
-1,025
-38
-1,177
79
8
89
7
62
9
56
693
-13
3
102
797
-8
-2
1
764
62
738
-9
-3
*
567
AGRICULTURE
351 Farm income stabilization:
Department of Agriculture 1
Other independent agencies: Farm Credit Administration..
Total 3 5 1 .
352 Agricultural research and services:
Department of Agriculture x
Deductions for offsetting receipts
Total 352
Total agriculture
370
1984
estimate
1983
actual
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 funds).
Federal Home Loan Bank Board
National Credit Union Administration
Total 371.
372 Postal Service:
Other independent agencies: Postal Service
376 Other advancement of commerce:
Legislative branch
Department of Commercex
Department of Housing and Urban DevelopmentDepartment of the Treasury1
General Services Administration
Small Business Administration
Other independent agencies:
Commodity Futures Trading Commission
Federal Communications Commission
Federal Trade Commission
Securities and Exchange Commission
United States Metric Board 1
Deductions for offsetting receipts
Total 376.
Total commerce and housing credit..
909
23
82
65
90
*
-400
1,508
4,422
26
26
90
93
66
67
104
93
*
-66
-32
1,863
1,613
3,805 | 1,127
9-29
SUMMARY TABLES
Table 16. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
400
1984
estimate
1983
actual
TRANSPORTATION
401 Ground transportation:
Department of Agriculture (trust funds)
Department of the Interior (trust funds)
Department of Transportation1
Other independent agencies-.
Washington Metropolitan Area Transit AuthorityInterstate Commerce Commission
Other temporary commissions
United States Railway Association
Deductions for offsetting receipts
Total 401
402 Air transportation:
Department of Transportation*
National Aeronautics and Space Administration
Other independent agencies: Civil Aeronautics Board
Deductions for offsetting receipts
Total 402
403 Water transportation:
Department of Transportation l
Other independent agencies:
Federal Maritime Commission
Panama Canal Commission
Deductions for offsetting receipts
Total 403
1
14,197
Total 407
Total transportation
3
17,982
18,509
67
63
1
3
-1
1
-1
14,316
18,116
18,631
3,404
563
78
-44
4,096
641
78
-48
4,485
693
24
-53
4,000
4,768
5,149
2,949
3,103
3,154
12
446
-438
11
411
-433
12
442
-466
2,969
3,092
3,143
127
117
21
20
50
65
1
4
—1
407 Other transportation:
Department of Transportation
Other independent agencies.National Transportation Safety Board
Other temporary commissions
450
1985
estimate
68
54
99
147
137
21,385
26,123
27,061
4,244
4,633
4,740
COMMUNITY AND REGIONAL DEVELOPMENT
451 Community development:
Department of Housing and Urban Development
Other independent agencies:
Commission of Fine Arts
Federal Emergency Management Agency J
National Capital Planning Commission
Neighborhood Reinvestment Corporation
Pennsylvania Avenue Development Corporation l .
Total 451
452 Area and regional development:
Funds appropriated to the President
Department of Agriculture
Department of Commerce l
Department of Health and Human Services
Department of the Interior*
17
3
15
14
4,293
4,682
4,788
264
1,039
326
-2
1,114
204
1,134
371
9
1,150
184
1,181
328
-1
1,148
9-30
THE BUDGET FOR FISCAL YEAR 1985
Table 16. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Other independent agencies:
Appalachian Regional Commissionl
Tennessee Valley Authority
Deductions for offsetting receipts
Total community and regional development
Total 501
502 Higher education:
Department of Education
Department of Housing and Urban Development
Other independent agencies:
Harry S Truman Scholarship Foundation (trust funds)
National Commission on Student Financial Assistancex
Deductions for offsetting receipts
Total 502
503 Research and general education aids:
Legislative branch l
Department of Commerce
Department of Educationx
Other independent agencies:
Corporation for Public Broadcasting
National Commission on Libraries and Information Science x
National Endowment for the Arts 1
National Endowment for the Humanitiesx
Institute of Museum Services
Smithsonian Institution
Deductions for offsetting receipts
Total 503
2,769
2,618
202
220
13
200
10
*
-430
-321
-213
216
-1
231
192
143
179
7,594
7,586
6,028
266
6,706
253
6,882
262
6,294
6,959
7,144
7,259
7,796
1
7,254
-2
2
1
-28
2
-34
-67
7,231
7,766
7,188
162
23
275
181
24
314
186
17
278
137
1
126
134
9
194
-5
130
1
145
145
20
219
-5
130
1
156
136
21
243
-5
1,055
1,176
1,163
1
289
5,005
1
273
4,811
1
57
4,852
5,295
5,085
4,910
AND SOCIAL
501 Elementary, secondary, and vocational education:
Department of Education1
Department of the Interior
504 Training and employment:
Department of Commerce
Department of Health and Human Services
Department of Labor 1
3
118
-343
6,936
Total 453
EMPLOYMENT,
200
-307
2,644
Total 452
Total 504
1985
estimate
7
160
-264
453 Disaster relief and insurance:
Funds appropriated to the President*
Department of Agriculture
Department of Commerce
Small Business Administration
Other independent agencies: Federal Emergency Management
Agency
500 EDUCATION, TRAINING,
SERVICES
1984
estimate
1983
actual
Function and department or other unit
9-31
SUMMARY TABLES
Table 16. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
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
506 Social services:
Department of Education
Department of Health and Human Services
Department of Housing and Urban Development
General Services Administration
Other independent agencies:
ACTION
Community Services Administration
Total 506
Total education, training, employment, and social services
550
1985
estimate
449
512
535
1
23
123
5
1
23
132
6
1
23
138
6
599
673
703
965
5,055
3
1
1,229
5,651
3
*
1,111
5,546
4
*
126
18
130
12
124
6,133
7,025
6,785
26,606
28,683
27,893
22,017
1,019
1
23,338
1,309
*
25,211
1,339
23,037
24,647
26,550
3,974
-1
4,435
1
4,788
1
3,973
4,434
4,787
578
442
410
HEALTH
551 Health care services:
Department of Health and Human Services*
Office of Personnel Managementx
Other independent agencies: Other temporary commissions
Total 551
552 Health research:
Department of Health and Human Services
Department of Housing and Urban Development
Total 552
553 Education and training of health care work force:
Department of Health and Human Services
554 Consumer and occupational health and safety:
Executive Office of the President
Department of Agriculture
Department of Health and Human Services
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
Total health
570
1984
estimate
1983
actual
*
*
323
364
351
338
396
368
356
404
368
33
3
6
-15
36
4
6
-5
35
4
6
-5
1,066
1,143
1,168
28,655
30,665
32,916
193,410
186,188
196,871
SOCIAL SECURITY AND MEDICARE
571 Social security:
Department of Health and Human Servicesx
9-32
THE BUDGET FOR FISCAL YEAR 1985
Table 16. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
1983
actual
Function and department or other unit
-6,233
190,639
-22,687
223,311
61,064
240,225
1,079
1,242
1,133
1,056
1,206
525
1,029
1,269
7,243
9,308
11,219
-5,116
5,581
-6,600
5,496
-7,847
5,670
4
4
180
199
20,216
-35
216
209
21,174
-35
21,569
4
17,326
191
212
22,321
-36
40,017
27,718
95
*
-7,086
20,727
25,070
3.2
*
-5,032
20,069
9,556
45
9,995
10,041
179
10,729
10,908
17,873
Total social security and medicare..
83,997
-22,933
52,588
Total 572
179,161
75,647
-23,059
Total 571
572 Medicare:
Department of Health and Human Services 1 .
Deductions for offsetting receipts
-7,028
170,724
Deductions for offsetting receipts.
600
1985
estimate
1984
estimate
17,561
17,090
79
61
17,622
17,090
19,380
19,561
95,411
-25,728
69,683
260,321
INCOME SECURITY
601 General retirement and disability insurance:
Department of Health and Human Services
Department of Labor 1
Department of the Treasury
Other independent agencies:
Railroad Retirement Board x
Other temporary commissions
Deductions for offsetting receipts
Total 6 0 1 .
602 Federal employee retirement and disability:
Legislative branch (trust funds)
The Judiciary (trust funds)
Department of Defense—Civil (trust funds)
Department of Labor
Department of State (trust funds)
Office of Personnel Management (trust funds)
Deductions for offsetting receipts
20,563
Total 602.
603 Unemployment compensation:
Department of Labor 1
Department of Transportation
Other independent agencies: Railroad Retirement Board.
Deductions for offsetting receipts
31,464
Total 603.
604 Housing assistance:
Department of Agriculture
35
9,521
Department of Housing and Urban DevelopmentTotal 604
605 Food and nutrition assistance:
Department of Agriculture
Other independent agencies: Federal Emergency
Agency
Total 605.
609 Other income security:
Department of Health and Human Services....
Department of State
Department of the Treasury
43,843
51
139
-12,569
Management
17,952
19,883
*
1,213
""i"(J44
9-33
SUMMARY TABLES
Table 16. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
Total 609
1983
actual
1984
estimate
1985
estimate
21,096
20,503
20,605
106,211
95,957
114,360
14,699
-449
15,047
-436
15,490
-434
14,250
14,611
15,056
1,847
-222
1,611
-201
1,550
-226
1,625
1,410
1,325
703 Hospital and medical care for veterans:
Veterans Administration
8,272
8,972
9,597
704 Veterans housing:
Department of Housing and Urban DevelopmentVeterans Administration
Deductions for offsetting receipts
-19
100
-78
-20
107
-67
-22
24
-75
3
19
-72
33
657
43
*
738
45
*
767
10
-4
10
-5
11
-5
Total income security
700
VETERANS BENEFITS AND SERVICES
701 Income security for veterans:
Veterans Administration 1
Deductions for offsetting receipts
Total 7 0 1 .
702 Veterans education, training, and rehabilitation:
Veterans Administration 1
Deductions for offsetting receipts
Total 702
Total 704.
705 Other veterans benefits and services:
Department of Defense—Civil 1
Department of the Treasury (trust funds)
Veterans Administration l
Other independent agencies: American Battle Monuments Commission *
Deductions for offsetting receipts
Total 705
Total veterans benefits and services..
750
696
787
817
24,846
25,799
26,723
58
18
30
62
19
36
59
18
35
1,666
2,028
1,094
2,179
1,049
1
2
12
143
*
1
2
12
153
1
2
13
160
2,887
3,407
3,515
13
783
597
16
907
715
1,014
ADMINISTRATION OF JUSTICE
751 Federal law enforcement activities:
Department of Education
Department of Health and Human Services
Department of Housing and Urban Development
Department of Justice
Department of the Treasury
Other independent agencies:
Administrative Conference of the United States
Architectural and Transportation Barriers Compliance Board.
Commission on Civil Rights
Equal Employment Opportunity Commission
Other temporary commissions
Total 751...
752 Federal litigative and judicial activities:
Legislative branch
The Judiciary
Department of Justice
420-000 O - 84 - 37 : QL 3
957
22
791
9-34
THE BUDGET FOR FISCAL YEAR 1985
Table 16. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
Other independent agencies:
Legal Services Corporation
Other temporary commissions
1984
estimate
1983
actual
1985
estimate
234
*
284
*
20
1,627
1,921
1,847
753 Federal correctional activities:
Department of Justice x
418
500
574
754 Criminal justice assistance:
Department of Justice
167
193
203
Total administration of justice
5,099
6,021
6,140
1,196
1,345
1,447
94
*
1
112
1
1
116
1
4
96
114
121
3,500
-456
4,131
-664
4,139
-497
3,045
3,467
3,642
269
-69
604
-205
476
238
200
399
238
15,383
15,735
16,069
*
*
*
15
26
17
24
17
25
*
-15,308
15,622
-15,956
115
155
155
20
32
35
217
575
*
231
379
184
386
9
*
2
*
11
*
10
*
2
Total 752
800
GENERAL GOVERNMENT
801 Legislative functions:
Legislative branch x
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 receipts
Total 803
804 General property and records management:
General Services Administration1
Deductions for offsetting receipts
Total 804
805 Central personnel management:
Office of Personnel Management
Other independent agencies:
Advisory Committee on Federal Pay
Federal Labor Relations Authority
Merit Systems Protection Board
Other temporary commissions
Deductions for offsetting receipts
Total 805
806 Other general government:
Legislative branch
The Judiciary
Department of the Interior 1 ...
Department of the Treasury 1
Office of Personnel Management
Other independent agencies:
Federal Election Commission
Other historical and memorial agencies
Advisory Commission on Intergovernmental Relationsx
Native Hawaiians Study Commission
Other temporary commissions
10
2
*
15 \
21
9-35
SUMMARY TABLES
Table 16. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
United States Holocaust Memorial Councilx
Deductions for offsetting receipts
1983
actual
1984
estimate
1985
estimate
1
-65
2
75
2
-75
768
597
565
-636
-424
-425
4,784
5,652
5,744
9,187
-4,567
9,141
-4,567
9,141
4,567
4,620
4,574
4,574
144
6
1
748
392
722
-179
204
6
*
948
442
601
— 34
284
6
1
845
478
503
-34
Total 852
1,834
2,167
2,084
Total general purpose fiscal assistance
6,454
6,741
6,658
128,813
-194
149,500
164,700
128,619
149,500
164,700
-17,102
-19,396
-22,587
1,967
*
1,531
1,498
-23,710
-23,397
-21 Ml
-21,743
21,865
-25,974
89,774
108,239
116,138
Total 806
809
Deductions for offsetting receipts
Total general government
850
GENERAL PURPOSE FISCAL ASSISTANCE
851 General revenue sharing:
Department of the Treasury 1
Deductions for offsetting receipts
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
NET INTEREST
901 Interest on the public debt:
Department of the Treasury
Deductions for offsetting receipts
Total 901
902 Interest received by trust funds:
Deductions for offsetting receipts
908 Other interest:
Department of the Treasury
General Services Administration
Deductions for offsetting receipts
Total 908
Total net interest
Allowances for:
Civilian agency pay raises 2
Contingencies for other requirements
Increased employing agency payments for employee retirement...
Undistributed offsetting receipts:
Employer share, employee retirement:
Interfund transactions... .
Receipts from off-budget Federal agencies
Total employer share, employee retirement
430
509
-6,128
-1,995
6,757
-2,087
-25,309
-2,563
-8,122
-8,844
-27,873
9-36
THE BUDGET FOR FISCAL YEAR 1985
Table 16. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Total outlays
1985
estimate
-10,491
-8,700
-7,400
853,760
925,492
600,920
294,287
-99,238
Rents and royalties on the Outer Continental Shelf
1984
estimate
795,969
Function and department or other unit
628,789
306,420
-81,449
687,221
350,850
-112,578
1
3
5
1983
actual
MEMORANDUM
Federal funds
Trust funds
Interfund transactions
ADDENDUM
Outlays of off-budget Federal entities: 3
050
NATIONAL DEFENSE
051 Department of Defense—Military:
Federal Financing Bank (Department of Defense—Military)
150
INTERNATIONAL AFFAIRS
151 Foreign economic and financial assistance:
Federal Financing Bank (Funds appropriated to the President)
-5
-6
152 International security assistance:
Federal Financing Bank (Funds appropriated to the President)
2,858
3,631
1,964
2,852
3,625
1,958
189
131
-2
3,001
554
161
3,968
436
165
3,644
270
88
3,714
4,569
4,003
1,641
2,157
1,668
5,354
6,726
5,671
695
1,539
237
Total international affairs
250
GENERAL SCIENCE, SPACE, AND TECHNOLOGY
255 Supporting space activities:
Federal Financing Bank (National Aeronautics and Space Administration)
270
ENERGY
271 Energy supply:
Department of Agriculture
Federal Financing Bank (Department of Agriculture) 4
Federal Financing Bank (Department of Energy)
Federal Financing Bank (Tennessee Valley Authority)
Total energy supply
274 Emergency energy preparedness:
Department of Energy
Total energy
350
-5
AGRICULTURE
351 Farm income stabilization:
Federal Financing Bank (Department of Agriculture)
9-37
SUMMARY TABLES
Table 16. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
1983
actual
Function and department or other unit
370
1985
estimate
1984
estimate
COMMERCE AND HOUSING CREDIT
371 Mortgage credit and thrift insurance:
Federal Financing Bank (Department of Agriculture)
1,755
376 Other advancement of commerce:
Federal Financing Bank (Small Business Administration)
2,182
1,853
322
372 Postal Service:
Postal Service
1,209
2,801
182
636
409
2,259
4,027
5,063
15
-67
890
-53
*
Total ground transportation
-52
943
*
Total transportation
-52
943
*
60
134
47
59
505
154
646
152
530
Total area and regional development
564
800
681
Total community and regional development
624
934
728
-14
*
-7
443
160
1,169
9
3
Total commerce and housing credit
400
TRANSPORTATION
401 Ground transportation:
Federal Financing Bank (Department of Transportation)
United States Railway Association
450
COMMUNITY AND REGIONAL DEVELOPMENT
451 Community development:
Federal Financing Bank (Department of Housing and Urban Development)
452 Area and regional development:
Department of Agriculture
Federal Financing Bank (Department of Agriculture)
550
HEALTH
551 Health care services:
Federal Financing Bank (Department of Health and Human Services)
600
INCOME SECURITY
604 Housing assistance:
Federal Financing Bank (Department of Housing and Urban Development)
800
GENERAL GOVERNMENT
803 Central fiscal operations:
Federal Financing Bank (Department of the Treasury)
5
804 General property and records management:
Federal Financing Bank (General Services Administration)
806 Other general government:
Federal Financing Bank (Department of the Interior)
-3
1
0
11
*
*
*
9-38
THE BUDGET FOR FISCAL YEAR 1985
Table 16. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
Total general government
Outlays, off-budget Federal entities
Outlays including off-budget Federal entities
1984
estimate
1983
actual
1985
estimate
5
-7
11
12,357
16,196
14,814
808,327
869,956
940,307
*$500 thousand or less.
1
Includes both Federal and trust funds.
2
Includes allowance for military pay raises for the Coast Guard.
3
Negative amounts indicate that the offsetting collections credited to the respective subfunctions exceed the gross disbursements.
4
Off-budget Federal entity (Rural Electrification and Telephone Revolving Fund).
5
Miscellaneous outlays not attributed to any single program.
SUMMARY TABLES
9-39
Table 17—LEGISLATIVE PROPOSALS FOR MAJOR NEW AND EXPANDED PROGRAMS IN THE 1985 BUDGET, PROJECTIONS OF COSTS*
(In millions of dollars)
Estimates
Explanation
1984
1987
1985
1988
1989
Funds Appropriated to the President:
Agency for International Development:
100
95
100
100
10
0
BA..
0...
125 This proposal would provide funds to support growth-oriented policy
108 reforms in African countries. These funds would be in addition to
ffl
funds available for Africa in AID'S Functional Development Assistance
program and Sahel Development program accounts.
Economic policy initiative for Africa..
§
International securities assistance.Assistance to Central America....
BA...
0
500
300
750
800
750
675
750
750
71
71
48
24
24
750
750
750 This proposal would provide multi-purpose military and economic assist750 ance to Central American countries beset by numerous problems.
Defense:
Incentive pay for nuclear-trained officers..
BA..
0....
Reenlistment bonuses.
BA..
0....
125
125
This proposal would authorize the Navy to change the contracted length
of service and to resume lump sum payments instead of installment
payments to officers who enter and remain in jobs requiring training
and skills in nuclear propulsion.
This proposal would authorize the Army to resume lump sum bonus
payments instead of installment payments to soldiers who reenlist.
50
40
This proposal would provide funds to States to train science and
mathematics teachers.
Education:
Science and math education..
BA
0
Interior:
Wetlands acquisition:
Federal
State (grants).
Justice:
Criminal justice assistance.
BA.
0...
BA..
This proposal would provide funds for Federal acquisition of lands or
waters for conservation of wetlands.
This proposal would provide funds to States for wetlands conservation.
BA.,
0....
This proposal provides training, technical assistance and financial aid to
State and local criminal justice agencies.
W
8
State:
Compact of Free Association..
Veterans Administration:
Readjustment benefits
25
9
25
9
13
4
13
4
15
4
15
4
16
4
16
4
18
4
18
4
This proposal would provide funds necessary to implement the proposed
Compact of Free Association between the United States and the
Federal States of Micronesia and the Marshall Islands.
13
3
13
3
17
6
17
6
10
4
10
4
16
1
16
1
9
7
9
7
This proposal would provide a 15% increase in educational assistance
and special training allowances to Gl bill trainees and disabled
veterans receiving vocational rehabilitation assistance.
28
3
7
1
28
3
10
9
28
3
28
3
28
3
28
3
28
3
28
3
1,875
1,688
1,875
1,875
1,875
1,875
1,875
1,875
1,875
1,875
The "Petroleum Overcharge Restitution Fund", established in the
Department of Health and Human Services (HHS), will receive
monies determined to be allocation violations under the Emergency
Petroleum Act of 1973 in instances where the overcharged customers cannot be identified and repaid. Oil overcharge money deposited
in this fund will be used to support the HHS Low-Income Home
Energy Assistance program and the DOE Low-Income Weatherization
program and energy grants to schools and hospitals.
MEMORANDUM
Proposed new financing of existing programs
Energy:
Low-income weatherization and energy grants
to schools and hospitals
Health and Human Services:
Low-income home energy assistance....
*This table is supplied to meet the requirements of section 221 (a) of the Legislative Reorganization Act of 1970 (Public Law 91-510). The economic assumptions used to prepare these estimates are shown in Part 2, "Economic Assumptions
and the Budget". These estimates do not reflect the effects of experience gained in operating the programs or reductions in the costs of other programs that might come about if the proposals were adopted. Since the assumptions upon which these
estimates are based may change, they do not represent a commitment to specific funding levels in future years.
Cfl
5
td
ID
9-42
THE BUDGET FOR FISCAL YEAR 1985
Table 18. NEW DIRECT LOAN OBLIGATIONS BY AGENCY
(In millions of dollars)
Department or other unit
1983
actual
1984
estimate
1985
estimate
ON-BUDGET AGENCIES
Funds Appropriated to the President.
FFB direct loans
Agriculture 1
FFB direct loans
Commerce
Education
Energy
FFB direct loans
Health and Human Services
Housing and Urban Development
FFB direct loans
Interior
Labor
State..
Transportation
FFB direct loans
Environmental Protection Agency
National Aeronautics and Space Administration: FFB direct loans..
Small Business Administration
FFB direct loans
Veterans Administration
Other independent agencies:
District of Columbia
Export-Import Bank
Federal Home Loan Bank Board
National Credit Union Administration
Tennessee Valley Authority
FFB direct loans
Total..
2,491
3,932
22,715
3,442
15
724
4
100
15
2,914
61
61
1
*
387
15
42
189
1,050
430
1,190
2,573
4,401
16,475
3,360
12
874
10
295
845
19
220
41
161
41,358
115
2,580
2
312
85
165
37,862
26
2,769
225
70
2
1
1,126
20
131
1,189
575
766
6,451
14,029
1,325
795
40
6
2,401
84
2
1
70
975
515
534
3,830
3
456
89
31,694
*$500 thousand or less.
1
Includes Rural Electrification Administration (REA) off-budget activities as follows: 1983, $1,272 million, 1984, $1,285 million; 1985, $760
million. Agriculture FFB direct loans reflect REA activity exclusively.
Note-. Loans guaranteed by Federal agencies and disbursed by the Federal Financing Bank are identified.
9-43
SUMMARY TABLES
Table 19. NEW GUARANTEED LOAN COMMITMENTS BY AGENCY
(In millions of dollars)
Department or other unit
1984
estimate
1983
actual
1985
estimate
Funds Appropriated to the President
Agriculture
Commerce
Education
Energy
Health and Human Services
Housing and Urban Development
Interior
Transportation
Small Business Administration
Veterans Administration
Other independent agencies:
Export-Import Bank
National Credit Union Administration.
Synthetic Fuels Corporationl
232
4,842
27
7,262
45
230
123,097
14
345
2,619
14,674
8,524
34
10,000
28
4,098
10,000
10
2,400
Subtotal, guaranteed loans (gross)
Less.Secondary guaranteed loans
Guaranteed loans held as direct loans by GNMA.,
161,945
165,621
167,039
-64,225
-500
-68,250
-68,250
97,221
97,371
98,789
Total
1
250
4,472
57
7,593
250
121,509
19
613
3,325
13,408
300
3,219
7,907
78
175
124,069
602
3,290
14,988
The Synthetic Fuels Corporation is an off-budget Federal entity.
Note: Loans guaranteed by Federal agencies and disbursed by the Federal Financing Bank are excluded from these totals and included in Table
Table 20. CONTROLLABILITY OF BUDGET OUTLAYS, 1975-35
(Dollars in billions)
Actual
Estimate
1975
Relatively uncontrollable under present law:
Open-ended programs and fixed costs-.
Payments for individuals:1
Social security and railroad retirement
Federal employees' retirement and insurance
Unemployment assistance
Medical care
Assistance to students
Food and nutrition assistance
Public assistance and related programs
All other relatively uncontrollable payments for individuals
1976
T
Q
1977
1978
1979
1980
1981
1982
1983
1984
1985
67.3
74.9
20.4
86.3
94.8
105.4
120.3
141.5
157.4
171.8
180.2
193.6
18.4
12.8
20.6
4.7
1.6
12.2
21.2
18.6
25.1
5.7
1.9
14.1
5.7
3.8
6.8
.8
.4
3.6
24.0
14.3
30.1
3.8
2.8
15.1
26.7
10.8
34.3
3.9
2.7
16.0
29.9
9.8
39.9
3.7
3.0
15.8
34.7
16.9
47.2
3.9
3.5
17.9
40.5
18.2
57.2
4.7
3.5
20.0
44.4
22.2
65.6
5.1
3.0
19.9
47.3
29.7
73.5
4.4
3.3
20.9
49.4
19.1
83.8
4.6
3.6
20.2
51.7
18.5
97.0
4.2
3.7
21.3
2.0
1.9
.5
2.0
2.0
2.7
3.0
3.0
2.9
2.9
3.0
3.0
139.5
23.2
6.1
.6
2.5
163.3
26.7
6.2
.6
3.1
41.9
6.9
1.6
.7
.8
178.4
29.9
6.8
3.5
1.9
191.2
35.4
6.8
5.5
3.3
210.1
42.6
6.8
3.7
1.3
247.3
52.5
6.8
2.9
6.4
288.6
68.7
5.1
4.1
3.9
320.6
85.0
4.6
11.6
-1.1
353.8
89.8
4.6
18.9
-2.2
363.8
108.2
4.6
6.7
-4.2
393,0
116.1
4.6
10.9
-7.4
171.9
(6.3)
(165.6)
199.9
(7.4)
(192.6)
51.9
(2.0)
(50.0)
220.5
(8.2)
(212.4)
242.3
(9.2)
(233.1)
264.7
(10.4)
(254.3)
316.0
(12.1)
(303.9)
370.4
(13.9)
(356.6)
420.6
(15.1)
(405.5)
464.8
(16.0)
(448.8)
479.0
(16.8)
(462.2)
517.3
(17.7)
(499.6)
Outlays from prior-year contracts and obligations: 2
National defense
Civilian programs
22.3
31.0
17.9
35.8
7.7
13.4
18.5
40.3
28.2
48.7
30.9
54.4
36.5
66.7
41.4
67.2
56.9
64.5
68.3
60.4
83.1
70.5
97.4
73.7
Total, outlays from prior-year contracts
and obligations
53.3
53.7
21.1
58.8
76.9
85.3
103.2
108.6
121.5
128.7
153.6
171.2
Total, relatively uncontrollable outlays. 225.2
253.6
73.0
279.3
319.2
350.0
419.2
479.0
542.1
593.6
632.6
688.4
Subtotal, payments for individuals
Net interest
General revenue sharing
Farm price supports (CCC)
Other open-ended programs and fixed costs...
Total, open-ended programs and fixed
costs
(National defense)
(Civilian programs)
8
£
O
I
O
O
o
Relatively controllable outlays:
National defense
Civilian programs
(Administrative expenses of relatively uncontrollable payments for individuals) 1
(Other)
57.0
46.0
64.2
50.9
12.7
9.6
70.8
55.0
67.8
66.4
76.4
69.9
87.3
76.0
104.5
80.1
115.4
77.9
126.2
84.3
137.7
92.3
174.5
90.5
(3.2)
(42.8)
(3.9)
(47.0)
(0.9)
(8.7)
(4.2)
(50.8)
(4.6)
(61.8)
(4.8)
(65.1)
(5.2)
(70.7)
(6.0)
(74.1)
(6.6)
(71.4)
(7.2)
(77.1)
(7.7)
(84.6)
(8.0)
(82.5)
Total, relatively controllable outlays 3..
103.0
115.1
22.2
125.8
134.1
146.2
163.3
184.6
193.3
210.5
230.0
264.9
-4.0
-4.2
-1.0
-4.5
5.0
-5.3
-5.8
-6.4
-7.0
-8.1
-8.8
27.9
324.2
364.5
94.2
400.5
448.4
491.0
576.7
657.2
728.4
796.0
853.8
925.5
Undistributed employer share, employee retirement 4
Total budget outlays
MEMORANDUM—Percent of total outlays
Relatively uncontrollable under present law:
Open-ended programs and fixed costs:
Payments for individuals
Other
44.8%
10.1
44.5%
10.6
44.5%
10.5
42.6%
11.4
42.8%
11.1
42.9%
11.9
43.9%
12.4
44.0%
13.7
44.4%
14.0
42.6%
13.5
42.5%
13.4
53.0
54.9
55.1
55.0
54.0
53.9
54.8
56.4
57.7
58.4
56.1
55.9
16.4
14.7
22.4
14.7
17.1
17.4
17.9
16.5
16.7
16.2
18.0
18.5
69.4
31.8
Total open-ended programs and fixed
costs
Outlays from prior-year contracts and obligations
43.0%
10.0
69.6
31.6
77.5
23.6
69.7
31.4
71.2
29.9
71.3
29.8
72.7
28.3
72.9
28.1
74.4
26.5
74.6
26.4
74.1
26.9
74.4
28.6
-1.2
-1.0
-1.1
-1.1
-1.1
1.0
-1.0
-1.0
-1.0
-1.0
-3.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Total relatively uncontrollable outlays..
Relatively controllable outlays
Undistributed employer share, employee retirement 4
-1.2 .
Total budget outlays
1
2
3
100.0
Administrative expenses of relatively uncontrollable payments for individuals that are controlled through appropriation limitations have been reclassified as relatively controllable outlays.
Excluding prior year contracts and obligations for activities shown as "open-ended programs and fixed costs .
In addition to amounts provided under current law, includes the effect of proposed legislation as follows:
National defense
1984
For open-ended programs and fixed costs
For other relatively controllable programs
* Includes - $ 0 . 7 billion in 1985 from proposed legislation.
1985
-0.2
0.2
Total
Civilian programs
1984
1985
1984
1985
-0.4
0.2
-3.4
2.9
-0.6
0.2
-3.4
3.1
Table 21. BUDGET RECEIPTS BY SOURCE, 1975-85
(In millions of dollars)
Source
Actual
1975
1976
1977
1978
1979
Estimate
1980
1981
1982
1983
1984
1985
122,386
40,621
131,603
41,409
157,626
54,892
180,988
59,952
217,841
65,677
244,069
64,600
285,917
61,137
297,744
49,207
288,938
37,022
293,260
66,606
328,410
76,540
55,207
7,250
11,252
1,489
58,703
7,686
11,987
1,525
68,032
8,786
13,474
1,908
73,141
12,250
16,668
1,822
83,410
14,584
19,874
2,190
96,581
16,639
23,217
2,312
117,757
12,418
30,340
2,457
122,840
20,626
34,301
2,917
128,972
18,348
35,641
2,805
152,543
15,907
40,040
3,202
174,534
16,710
45,486
3,660
75,199
79,901
92,199
103,881
120,058
138,748
162,973
180,686
185,766
211,692
240,390
Unemployment insurance
6,771
8,054
11,312
13,850
15,387
15,336
15,763
16,600
18,799
23,330
25,207
Other retirement contributions:
Federal employees' retirement—employee contributions
Contributions for non-Federal employees
2,513
52
2,760
54
2,915
59
3,174
62
3,428
66
3,660
59
3,908
76
4,140
72
4,351
78
4,392
79
4,993
94
2,565
2,814
2,974
3,237
3,494
3,719
3,984
4,212
4,429
4,471
5,086
84,534
90,769
106,485
120,967
138,939
157,803
182,720
201,498
208,994
239,494
270,683
5,238
2,312
5,318
2,484
5,295
2,393
5,492
2,444
5,531
2,492
5,606
2,581
23,245
2,696
5,382
2,537
18,881
1,868
5,557
4,136
12,999
1,394
5,791
5,144
9,846
2,362
5,872
5,218
8,262
2,591
34,128
28,668
24,086
23,143
21,943
Individual income taxes
Corporation income taxes
Social insurance taxes and contributions (trust funds):
Employment taxes and contributions:
Old-age and survivors insurance
Disabilitv insurance
HosDital insurance
Railroad retirement
Total employment taxes and contributions
Total other retirement contributions
Total social insurance taxes and contributions....
Excise taxes:
Federal funds:
Alcohol
Tobacco
Windfall profit tax
Other
Total Federal fund excise taxes
1,850
2,810
1,960
2,118
1,785
5,601
2,443
6,246
1,273
9,400
10,612
9,648
10,054
9,808
15,563
3
Trust funds:
Highway
Airport and airway
Black lung disability insurance
Inland waterway
Hazardous substances response
Post-closure liability trust fund
6,188
962
5,413
938
6,709
1,191
6,904
1,326
92
7,189
1,526
222
6,620
1,874
272
6,305
21
237
20
128
6,744
133
491
30
244
8,297
2,165
494
29
230
11,668
2,555
493
39
264
32
12,763
2,843
538
46
276
34
7,151
6,351
7,900
8,323
8,937
8,766
6,711
7,642
11,214
15,052
16,500
16,551
16,963
17,548
18,376
18,745
24,329
40,839
36,311
35,300
38,195
38,443
Estate and gift taxes
Custom duties
4,611
3,676
5,216
4,074
7,327
5,150
5,285
6,573
5,411
7,439
6,389
7,174
6,787
8,083
7,991
8,854
6,053
8,655
5,922
9,064
5,645
9,370
Miscellaneous receipts:
Deposit of earnings by Federal Reserve System
Other miscellaneous receipts
5,777
935
5,451
2,576
5,908
623
6,641
778
8,327
925
11,767
981
12,834
956
15,186
975
14,492
1,109
14,352
3,179
14,799
1,238
6,712
8,027
6,531
7,419
9,251
12,748
13,790
16,161
15,601
17,531
16,037
279,090
298,060
355,559
399,561
463,302
517,112
599,272
617,766
600,562
670,071
745,127
187,505
116,683
-25,098
201,099
131,750
-34,789
241,312
150,560
-36,313
270,490
165,568
-36,498
316,366
186,988
-40,052
350,856
210,930
-44,674
401,422
239,413
-50,563
409,253
268,407
-59,894
382,432
317,368
-99,238
Total trust fund excise taxes
Total excise taxes
Total miscellaneous receipts l
Total budget receipts
MEMORANDUM
Federal funds
Trust funds
Interfund transactions
I
s
>
420,009
464,246
331,511
393,460
-81,449 -112,578
1
Includes both Federal and trust funds.
Note: Excludes the transition quarter.
r
4
Table 22. BUDGET OUTLAYS BY FUNCTION, 1975-85
1
oo
(In millions of dollars)
Actual
Function
050 National defense:
051 Department of Defense—Military:
Military personnel:
Including accruals2
Excluding accruals
Retired military personnel:3
Consistent with accrual presentation
Cash payments
Operation and maintenance
Procurement
Research and development
Military construction
Family housing
Other
Allowances for pay raises 4
Subtotal, 051:
Including accruals 2
Excluding accruals
053 Atomic energy defense activities
054 Defense-related activities
Total national defense:
Including accruals
Excluding accruals
1981
1982
(37,345)
28,407
(40,897)
30,842
(47,941)
36,409
(55,170)
42,341
13,729
51,864
35,191
15,278
2,458
1,721
-614
14,938
59,674
43,271
17,729
2,922
1,993
-18
(130,976)
132,840
(153,838)
156,035
(180,741)
182,850
2,541
129
2,878
142
3,398
111
4,309
258
(116,342)
117,683
(133,995)
135,860
(157,513)
159,710
(185,308)
187,417
1977
(32,162)
24,968
(32,546)
25,064
(33,672)
25,715
(35,553)
6,242
26,297
16,042
8,866
1,462
1,124
-100
7,296
27,837
15,964
8,923
2,019
1,192
-402
8,216
30,587
18,178
9,795
1,914
1,358
-206
9,171
33,578
19,976
10,508
1,932
1,405
-602
10,279
36,424
25,404
11,152
2,080
1,468
-201
(85,852)
84,900
(88,078)
87,891
(95,298)
95,557
(102,348)
103,042
(113,672)
115,013
1,506
-850
1,565
-23
1,936
7
2,070
76
(97,241)
97,500
(104,495)
105,189
(86,509)
85,556
(89,619)
89,433
27,075
c ;
Estimate
1980
1976
c ;
1978
1979
1975
(
;
11,920
44,770
29,021
13,127
2,450
1,680
-969
1983
(60,885)
1984
1985
(64,543)
48,040
67,324
45,523
(
;
15,945
64,915
53,624
20,554
3,524
2,126
-1,199
16,505
68,539
64,450
25,157
4,072
2,578
1,660
20
76,854
77,576
30,458
4,908
2,865
1,364
3,031
(230,998)
231,000
264,400
205,012
5,171
301
6,002
546
7,133
507
(237,546)
237,548
272,040
(204,429)
(209,901)
210,484
W
I
3
150 International affairs:
151 Foreign economic and financial
assistance
152 International security assistance
153 Conduct of foreign affairs
154 Foreign information and exchange activities
155 International financial programs.
3,222
2,423
659
2,731
1,896
727
2,871
1,666
982
2,738
2,464
1,128
3,007
2,362
1,310
3,725
2,831
1,366
4,221
3,150
1,346
3,866
3,128
1,630
348
421
382
4
386
-913
423
-642
465
-881
534
2,425
525
2,007
571
911
3,960
3,755
1,766
602
-1,089
4,601
5,516
2,054
5,170
7,775
2,204
770
561
911
1,432
Total international affairs
7,073
5,740
4,991
6,111
6,263
10,882
11,250
10,105
8,995
13,502
17,492
General science, space, and
technology:
251 General science and basic research
253 Space flight
254 Space, science, applications,
and technology
255 Supporting space activities
1,038
1,661
1,035
2,000
1,078
2,252
1,160
2,260
1,298
2,217
1,381
2,594
1,477
3,053
1,607
3,543
1,644
4,053
1,864
4,091
2,141
3,884
958
334
980
358
1,006
343
972
354
1,153
383
1,346
405
1,384
444
1,457
473
1,486
562
1,590
746
1,899
894
3,991
4,373
4,679
4,746
5,051
5,726
6,358
7,080
7,745
8,291
8,818
1,715
48
33
2,457
51
65
3,225
143
123
3,920
221
897
4,848
252
1,021
4,520
568
342
5,298
729
3,280
3,085
518
191
2,421
Ml
215
2,032
490
203
1,606
410
357
389
558
664
798
742
882
971
887
886
737
771
2,185
3,131
4,154
5,837
6,863
6,312
4,681
3,999
3,463
3,144
250
Total general science, space,
and technology
270 Energy:
271 Energy supply
272 Energy consepvation
274 Emergency energy preparedness.,
276 Energy information, policy, and
regulation
Total energy
Natural resources and environment:
301 Water resources
10,277
300
I
>
i
CO
2,606
2,740
3,208
3,428
3,850
4,220
4,129
3,945
3,901
4,207
3,830
L
CO
Table 22. BUDGET OUTLAYS BY FUNCTION, 1975-85 x—Continued
(In millions of dollars)
O
Actual
Estimate
Function
1975
302
303
304
306
Conservation and land management
Recreational resources
Pollution control and abatement..
Other natural resources
Total natural resources and
environment
350 Agriculture:
351 Farm income stabilization
352 Agricultural research and services
Total agriculture
370 Commerce and housing credit:
371 Mortgage credit and thrift insurance
372 Postal Service
376 Other advancement of commerce
Total commerce and housing
credit
400 Transportation:
401 Ground transportation
402 Air transportation
403 Water transportation
407 Other transportation
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
655
803
2,523
757
615
868
3,067
891
589
985
4,279
966
1029
1,408
3,965
1,151
822
1,487
4,707
1,266
1,044
1,677
5,510
1,405
1,191
1,597
5,170
1,478
1,084
1,435
5,012
1,519
1,503
1,454
4,263
1,548
862
1,608
3,937
1,689
323
1,502
4,171
1,521
7,343
8,181
10,027
10,980
12,133
13,856
13,565
12,995
12,669
12,302
11,346
785
1,574
4,485
6,588
4,850
3,459
3,993
13,289
20,628
8,927
12,599
3
*4
876
921
1,052
1,129
1,340
1,398
1,540
1,599
1,578
1,766
1,720
1,661
2,495
5,537
7,717
6,191
4,857
5,533
14,889
22,206
10,693
14,319
2,791
1,877
1,209
1,720
-3,280
2,267
210
1,778
-677
1,787
3,696
1,677
651
1,343
1,216
707
2,125
789
1,063
879
-1,177
692
944
868
1,115
L_ !'348
1,469
2,415
1,959
1,943
1,508
1,863
1,613
5,612
3,796
102
3,337
2,579
7,788
3,953
3,867
4,422
3,805
1,127
6,499
2,387
1,430
74
9,300
2,531
1,542
65
10,037
2,786
1,741
76
10,355
3,243
1,787
61
12,051
3,355
1,969
93
15,077
3,723
2,229
104
17,090
3,814
2,381
110
14,266
3,526
2,687
90
14,316
4,000
2,969
99
18,116
4,768
3,092
147
18,631
5,149
3,143
137
5
Total transportation
Community and regional development:
451 Community development
452 Area and regional development..
453 Disaster relief and insurance
10,390
13,438
14,640
15,445
17,468
21,132
23,395
20,570
21,385
26,123
27,061
2,297
1,047
398
2,765
1,481
522
3,406
2,292
649
3,302
4,900
2,871
3,995
3,938
1,611
4,878
3,152
2,043
5,036
2,679
1,680
4,565
2,702
-102
4,293
2,644
-1
4,682
2,769
143
4,788
2,618
179
3,741
4,767
6,348
11,072
9,544
10,072
9,395
7,166
6,936
7,594
7,586
4,176
2,050
4,190
2,663
4,589
3,104
5,125
3,486
6,019
4,528
6,732
5,694
7,104
6,792
6,780
6,506
6,294
7,231
6,959
7,766
7,144
7,188
s
954
4,063
259
4,380
782
6,288
301
4,526
934
6,877
374
5,122
1,082
10,784
410
5,588
1,234
10,833
488
6,592
1,357
10,345
551
6,116
1,169
9,241
587
6,531
1,041
5,464
589
5,950
1,055
5,295
599
6,133
1,176
5,085
673
7,025
1,163
4,910
703
6,785
>
15,882
18,749
20,999
26,475
26,693
30,795
31,424
26,329
26,606
28,683
27,893
9,459
1,923
11,669
2,341
12,975
2,543
13,895
2,822
15,974
3,023
17,986
3,442
21,202
3,836
21,783
3,948
23,037
3,973
24,647
4,434
26,550
4,787
856
982
981
930
583
719
779
670
578
442
410
450
Total community and regional
development
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
506 Social services
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
Total health
CO
632
686
747
838
896
1,001
1,042
1,034
1,066
1,143
1,168
12,870
15,677
17,246
18,485
20,477
23,148
26,858
27,435
28,655
30,665
32,916
B
Table 22. BUDGET OUTLAYS BY FUNCTION, 1975-85 1—Continued
CD
(In millions of dollars)
to
Actual
Estimate
Function
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
570 Social security and medicare:
64,658
12,874
572 Medicare
Total social
medicare
600
security
73,903
15,834
85,068
19,345
93,861
22,768
104,073
26,495
118,559
32,089
139,584
39,149
155,964
46,567
170,724
52,588
179,161
61,064
190,639
69,683
77,532
571 Social security
89,736
104,414
116,629
130,567
150,648
178,733
202,531
223,311
240,225
260,321
5,571
5,581
5,496
5,670
and
8
Income security:
601
General retirement and disabil-
4,689
ity insurance
602
Federal
employee
td
3,248
3,558
3,365
4,373
5,072
5,439
(13,222)
6,980
13,459
2,058
6,643
10,088
(15,469)
8,174
19,452
2,499
7,959
12,157
(17,719)
9,503
15,258
2,968
8,527
13,017
(19,836)
10,665
11,764
3,677
8,926
13,917
(22,658)
12,379
10,741
4,367
10,787
13,433
(26,594)
14,675
18,023
5,514
14,016
17,191
(31,277)
17,548
19,656
6,942
16,205
19,723
(34,325)
19,388
23,728
8,043
15,581
19,774
(36,508)
20,563
31,464
9,556
17,952
21,096
(38,074)
21,569
20,727
10,041
17,622
20,503
40,017
(50,160)
43,918
(60,784)
53,488
(61,047)
52,830
(61,485)
52,314
(66,359)
56,080
(86,411)
74,491
(99,243)
85,514
(107,022)
92,084
(122,156)
106,211
(112,462)
95,957
114,360
7,860
8,350
9,216
9,745
10,780
11,688
12,909
13,710
14,250
14,611
15,056
4,593
5,531
3,710
3,365
2,760
2,342
2,254
1,947
1,625
1,410
1,325
3,665
24
4,046
-72
4,708
-145
5,254
28
5,611
154
6,515
-23
6,965
201
7,517
102
8,272
3
8,972
9,597
-72
n
retirement
and disability:
Including military retirees 5
Excluding military retirees
603
Unemployment compensation
604
Housing assistance
605
Food and nutrition assistance
609
Other income security
20,069
10,908
17,090
20,605
Total income security:
Including military retirees 5
Excluding military retirees
700
CO
Veterans benefits and services:
701
Income security for veterans
702
Veterans education, training,
703
Hospital and medical care for
704
Veterans housing
and rehabilitation
veterans
19
00
cn
705
Other veterans benefits and
services
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
Total administration of justice
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
809 Deductions for offsetting receipts
458
578
16,599
18,433
18,038
1,349
1,498
550
200
853
549
627
665
662
18,978
19,931
21,185
22,991
23,958
24,846
25,799
26,723
1,673
1,831
1,992
2,237
2,437
2,529
2,887
3,407
3,515
697
208
921
842
240
847
943
307
729
1,130
337
710
1,347
342
656
1,491
361
473
1,517
364
294
1,627
418
167
1,921
500
193
1,847
574
203
2,951
3,324
3,602
3,810
4,169
4,582
4,762
4,703
5,099
6,021
6,140
593
678
849
909
921
1,038
1,041
1,181
1,196
1,345
1,447
63
1,716
68
1,778
76
1,761
73
2,082
81
2,284
97
2,465
100
2,537
96
2,606
96
3,045
114
3,467
121
3,642
384
88
424
61
107
393
108
100
390
176
129
448
210
127
524
287
154
560
187
159
746
230
136
504
200
115
768
399
155
597
238
155
565
585
682
696
787
817
-355
-417
-343
-375
-291
-468
-363
-304
-636
-424
2,913
2,668
2,941
3,442
3,855
4,133
4,405
4,448
4,784
5,652
5,744
General purpose fiscal assistance:
851 General revenue sharing
852 Other general purpose fiscal assistance
6,130
6,240
6,762
6,830
6,854
6,835
5,140
4,575
4,620
4,574
5
-425
Total general government
g
g
>
4,574
850
CD
1,057
994
2,737
2,772
1,518
1,749
1,716
1,818
1,834
2,167
2,084
CO
Table 22. BUDGET OUTLAYS BY FUNCTION, 1975-85 1—Continued
CD
(In millions of dollars)
Function
Total general purpose fiscal
assistance
900 Net interest:
901 Interest on the public debt
902 Interest received by trust funds..
908 Other interest
Total net interest
Actual
Estimate
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
7,187
7,235
9,499
9,601
8,372
8,584
6,856
6,393
6,454
6,741
6,658
32,665
-7,667
-1,753
37,063
-7,800
-2,552
41,900
-8,131
-3,890
48,695
-8,530
-4,724
59,837
-9,950
7,272
74,781
-12,045
-10,225
95,503
-13,810
12,959
117,190
-16,067
-16,128
128,619
-17,102
-21,743
149,500
-19,396
-21,865
164,700
-22,587
-25,974
23,245
26,711
29,878
35,441
42,615
52,511
68,734
84,995
89,774
108,239
116,138
Allowances:
Civilian agency pay raises 6
Increased employing agency payments
for employee retirement
Contingencies for:
Relatively uncontrollable programs
Other requirements
430
509
938
Total allowances
950
Undistributed offsetting receipts:
951 Employer share, employee retirement:
Including accrual offset 7
Excluding accrual offset
953 Rents and royalties on the
Outer Continental Shelf
(-1U74)
(-11,724) ( 12,505) (-13,461) (-14,209) (-15,842) (-17,903) (-19,849) (-23,484) (-25,347)
-3,980
-4,242
-4,548
-4,983
-5,271
-5,787
-6,371
-7,020
-8,122
-2,428
-2,662
2,374
-2,259
-3,267
-4,101
-10,138
-6,250
-10,491
-8,700
-27,873
-8,844
-7,400
M
Total undistributed offsetting receipts:
Including accrual offset 7 .... (-13,602)
Excluding accrual offset
-6,408
(-14,386)
-6,904
(-14,879)
-6,922
(-15,720)
-7,242
(-17,476)
-8,538
(-19,942)
-9,887
(-28,041)
-16,509
(-26,099)
-13,270
324,245
364,473
400,506
448,368
490,997
576,675
657,204
240,081
109,261
-25,098
269,921
129,341
-34,789
295,756
141,063
-36,313
331,991
152,874
-36,498
362,396
168,653
-40,052
419,220
202,129
-44,674
475,171
232,596
-50,563
Total budget outlays
(-33,976) (-34,047)
-35,273
-18,614
-17,544
728,375
795,969
853,760
925,492
526,113
262,155
59,894
600,920
294,287
-99,238
628,789
306,420
-81,449
687,221
350,850
-112,578
MEMORANDUM
Federal Funds
Trust Funds
Interfund transactions
OUTLAYS OF OFF-BUDGET FEDERAL
ENTITIES 8
050 National defense:
051 Department of Defense—military...
1
150 International affairs:
151 Foreign economic and financial
assistance
152 International security assistance.
Total international affairs
3
5
1
Total national defense
3
5
>
4
1,462
4
1,293
4
1,932
-5
1,945
-5
2,288
5
2,858
-6
3,631
-5
1,964
787
1,448
1,458
1,289
1,928
1,940
2,283
2,852
3,625
180
184
107
111
120
189
131
180
184
107
111
120
189
131
1,616
2,155
2,317
3,843
4,889
5,162
3,714
4,569
1
1
1,641
2,157
w
1
1,958
57
117
787
39
1,409
57
5
112
General science, space, and
technology:
255 Supporting space activities
tr
250
Total general science, space,
and technology
270 Energy:
271 Energy supply.
272 Energy conservation
274 Emergency energy preparedness..
731
1,072
4,003
CO
-2
3,687
1,668
Or
Table 22. BUDGET OUTLAYS BY FUNCTION, 1975-85 x — Continued
CD
k
(In millions of dollars)
Actual
Function
Total energy
350 Agriculture:
351 Farm income stabilization
Total agriculture
370 Commerce and housing credit:
371 Mortgage credit and thrift
insurance
372 Postal Service
376 Other advancement of commerce
Total commerce and housing
credit
400 Transportation:
401 Ground transportation
Total transportation
Community and regional development:
451 Community development.
452 Area and regional development...
Estimate
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1,072
1,616
2,155
2,317
3,844
4,890
8,847
5,354
6,726
5,671
1,375
675
1,250
3,640
5,045
3,982
5,790
1,055
695
1,539
237
1,375
675
1,250
3,640
5,045
3,982
5,790
1,055
695
1,539
237
3,175
1,112
2,550
1,085
3,105
-173
3,360
-496
2,930
-891
1,906
-431
4,045
89
2,800
-553
1,755
322
2,182
1,209
1,853
2,801
1975
731
47
188
58
54
68
127
119
142
182
636
409
4,253
2,389
2,259
4,027
5,063
-52
-943
*
-943
*
4,335
3,823
2,990
2,917
2,107
1,601
528
302
189
76
64
197
-16
55
528
302
189
76
64
197
21
560
6
668
5
669
-4
773
5
931
29
1,151
34
1,139
43
1,139
60
564
134
800
47
681
581
675
674
769
936
1,180
1,173
1,181
624
934
728
-16
55
-52
450
Total community and regional
development
I
500
Education, training, employment, and social services:
502 Higher education
140
550 Health:
551 Health care services
160
105
235
530
1,070
1,955
700
140
160
105
235
530
1,070
1,955
700
60
Total education, training, employment, and social services
56
56
39
17
22
8
10
17
56
56
39
600 Income security:
604 Housing assistance
22
8
10
119
60
Totalhealth
-14
*
-7
-14
*
-7
800 General government:
803 Central fiscal operations
804 General property and
records management.
80S Other general government
175
268
114
45
24
67
58
128
*
239
47
221
Total general government
-244
General purpose fiscal assistance:
852 Other general fiscal assistance....
-81
-110
90
*
-21
810
696
443
160
1,169
CO
119
Total income security
810
696
443
160
1,169
S
148
79
40
9
13
*
-11
>
197
92
-12
9
8
*
-5
-3
*
5
3
-10
*
-7
*
-11
i
850
75
-1,157
75
Total general purpose fiscal
assistance
-1,157
Total outlays of off-budget
Federal entities
8,088
7,307
8,700
10,359
12,467
14,245
21,005
17,331
12,357
16,196
14,814
Total outlays including offbudget Federal entities
332,332
371,779
409,206
458,726
503,464
590,920
678,209
745,706
808,327
869,956
940,307
ID
k
Table 22. BUDGET OUTLAYS BY FUNCTION, 1975-85 J—Continued
(In millions of dollars)
00
*$500 thousand or less.
1
Beginning in 1985, the budget reflects establishment of a military retirement trust fund. Entries in parentheses show amounts for previous years on a comparable basis.
2
Includes imputed charges for accruals for military retirement contributions for years prior to 1985.
3
Cash payments to retired military personnel are reflected in subfunction 602 in 1985. Entries shown that are consistent with accrual presentation also reflect this change for previous years.
4
Includes allowances for civilian and military pay raises for the Department of Defense.
5
Includes cash payments to retired military personnel.
6
Includes allowance for military pay raises for the Coast Guard.
7
Includes offsetting receipts equal to the imputed charges for accruals for military retirement contributions reflected in subfunction 051.
8
Off-budget Federal entities begin in 1973. Negative amounts indicate that the offsetting collections credited to the respective subfunctions exceed the gross disbursements.
Note.—Excludes the transition quarter
W
So
I
Table 23. FEDERAL TRANSACTIONS IN THE NATIONAL INCOME ACCOUNTS, 1974-85
(In billions of dollars)
Actual
Description
1974
1975
122.7
43.4
21.4
84.2
271.6
127.5
41.8
22.2
91.9
283.4
104.5
(73.6)
(30.9)
104.8
(101.8)
(3.0)
41.6
19.6
117.9
(80.2)
(37.7)
134.5
(131.4)
(3.1)
48.4
21.7
RECEIPTS, NATIONAL INCOME BASIS
Personal tax and nontax receipts..
Corporate profits tax accruals
Indirect business tax and nontax accruals
Contributions for social insurance
Total receipts, national income basis...
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
Subsidies less current surplus of Government
enterprises
Wage disbursements less accruals
1976
Estimate
1977
1978
1979
1980
1981
1982
1983
1984
1985
137.2
52.5
24.3
101.0
314.9
166.4
58.9
24.5
116.2
365.9
186.5
67.3
27.2
133.3
414.3
222.6
76.1
29.1
153.1
289.3
70.5
53.6
196.9
610.3
310.4
51.3
50.3
215.7
295.3
54.3
50.7
230.4
302.1
74.8
56.6
257.8
340.8
93.5
55.4
289.5
480.8
250.4
69.9
35.5
170.0
525.9
627.8
630.7
691.3
779.2
125.1
(84.4)
(40.7)
156.8
(153.8)
(3.0)
57.5
25.2
139.8
(91.4)
(48.4)
169.8
(166.6)
(3.2)
66.3
28.4
150.4
(97.8)
(52.6)
182.2
(178.7)
(3.5)
74.7
33.5
164.1
(108.2)
(55.9)
201.8
(197.8)
(4.1)
79.1
40.6
189.3
(126.0
(63.3
239.4
(234.6
(4.8
86.7
50.7
218.5
(147.1)
(71.4)
279.3
(273.5)
(5.8)
90.1
67.7
251.0
(173.3)
(77.7)
310.2
(304.1)
(6.1)
83.4
82.2
274.7
(196.5)
(78.2)
344.7
(338.5)
(6.2)
85.7
90.6
292.6
(224.0)
(68.6)
354.4
(347.0)
(7.4)
91.8
108.6
340.0
(257.1)
(82.9)
376.3
(367.8)
(8.5)
95.6
117.1
C/5
7.6
.2
6.0
.4
6.2
6.9
9.7
9.9
10.4
12.5
13.2
20.3
28.1
18.8
Total expenditures, national income
basis
278.2
328.8
370.7
411.2
450.4
495.6
576.5
668.1
740.0
816.4
875.5
947.8
Excess of receipts ( + ) or expenditures ( - ) ,
national income basis
-6.6
-45.4
-55.8
-45.3
-36.1
-14.8
-50.7
-57.8
-112.2
-185.7
-184.2
-168.6
*$50 million or less.
Note.—Excludes the transition quarter.
Table 24. FEDERAL FINANCES AND THE GROSS NATIONAL PRODUCT, 1966-87
(Dollar amounts in billions)
Budget receipts
Fiscal year
Gross
national
product
Amount
Percent
ofGNP
Outlays
Surplus or deficit ( - )
Off-budget Federal
entities
Amount
Percent
ofGNP
Amount
Percent
ofGNP
Amount
Percent
ofGNP
1966..
1967..
1968..
1969..
1970..
1971..
1972..
1973..
724.1
777.3
831.3
130.9
148.9
153.0
18.1
19.2
18.4
134.7
157.6
178.1
18.6
20.3
21.4
134.7
157.6
178.1
18.6
20.3
21.4
910.6
968.8
1,031.5
1,128.8
1,252.0
186.9
192.8
187.1
207.3
230.8
20.5
19.9
18.1
18.4
18.4
183.6
195.7
210.2
230.7
245.6
20.2
20.2
20.4
20.4
19.6
.1
183.6
195.7
210.2
230.7
245.7
1974..
1975..
1976..
1977..
1978..
1,379.4
1,479.9
1,640.1
1,862.8
2,091.3
263.2
279.1
298.1
355.6
399.6
19.1
18.9
18.2
19.1
19.1
267.9
324.2
364.5
400.5
448.4
19.4
21.9
22.2
21.5
21.4
1.4
8.1
7.3
8.7
10.4
269.4
332.3
371.8
409.2
458.7
1979
1980
1981
1982
1983
1984 estimate...
1985 estimate...
1986 estimate...
1987 estimate...
2,357.7
2,575.8
2,882.0
3,057.3
3,228.8
3,558.7
3,890.1
4,231.3
4,589.3
463.3
517.1
599.3
617.8
600.6
670.1
745.1
814.9
887.8
19.7 491.0
20.1 576.7
20.8 657.2
20.2 728.4
18.6 796.0
18.8 853.8
19.2 925.5
19.3 992.1
19.3 1,068.3
20.8
22.4
22.8
23.8
24.7
24.0
23.8
23.4
23.3
12.5
14.2
21.0
17.3
12.4
16.2
14.8
8.8
7.2
503.5
590.9
678.2
745.7
808.3
870.0
940.3
1,000.9
1,075.5
*0.05% or less.
1
The off-budget deficits are equal to the off-budget outlays but with the opposite sign.
Federal debt, end of year
Total (including offbudget) »
Total
Amount
Percent
ofGNP
Amount
Percent
ofGNP
Held by the public
Total
Amount
Percent
ofGNP
Amount
Percent
ofGNP
-3.8
-8.7
-25.2
.5
1.1
3.0
329.5
341.3
369.8
45.5
43.9
44.5
264.7
267.5
290.6
36.5
34.5
34.8
20.2
3.2
20.2 - 2 . 8
20.4 - 2 3 . 0
20.4 - 2 3 . 4
19.6 - 1 4 . 8
3.2
.4
.3 - 2 . 8
2.2 - 2 3 . 0
2.1 - 2 3 . 4
1.2 - 1 4 . 9
.4
.3
2.2
2.1
1.2
367.1
382.6
409.5
437.3
468.4
40.3
39.5
39.7
38.7
37.4
279.5
284.9
304.3
323.8
343.0
30.7
29.4
29.5
28.7
27.4
19.5 ^-4.7
22.5 - 4 5 . 2
22.7 - 6 6 . 4
22.0 - 4 4 . 9
21.9 - 4 8 . 8
.3
3.1
4.0
2.4
2.3
-6.1
-53.2
-73.7
-53.6
-59.2
.4
3.6
4.5
2.9
2.8
486.2
544.1
631.9
709.1
780.4
35.3
36.8
38.5
38.1
37.3
346.1
396.9
480.3
551.8
610.9
25.1
26.8
29.3
29.6
29.2
-27.7
-59.6
-57.9
-110.7
-195.4
-183.7
-180.4
-177.1
-180.5
1.2
2.3
2.0
3.6
6.1
5.2
4.6
4.2
3.9
-40.2
-73.8
-78.9
-127.9
-207.8
-199.9
-195.2
-185.9
-187.7
1.7
2.9
2.7
4.2
6.4
5.6
5.0
4.4
4.1
833.8
914.3
1,003.9
1,147.0
1,381.9
1,591.6
1,828.4
2,067.0
2,318.4
35.4
35.5
34.8
37.5
42.8
44.7
47.0
48.9
50.5
644.6
715.1
794.4
929.4
1,141.8
1,324.8
1,517.8
1,702.9
1,889.8
27.3
27.8
27.6
30.4
35.4
37.2
39.0
40.2
41.2
21.4
22.9
23.5
24.4
25.0
24.4
24.2
23.7
23.4
-3.8
-8.7
-25.2
.5
1.1
3.0
8
I
2
5
w
Table 25. COMPOSITION OF BUDGET OUTLAYS IN CURRENT AND CONSTANT (FISCAL YEAR 1972) PRICES: 1965-87
(In billions of dollars)
Current prices
o
o
o
Constant (fiscal year 1972) prices
Nondefense
Fiscal year
Total
budget
outlays
National
defense
Total nondefense
Payments
for
individuals
67.8
76.5
86.2
96.2
101.1
114.0
131.3
151.5
169.0
188.6
237.7
274.9
303.3
343.9
374.7
442 7
499.7
543.1
586.1
616.2
653 5
681.5
719.7
33.7
37.8
44.9
50.8
57.8
66.1
82.1
94.8
106.6
122.8
156.8
184.1
200 8
215.8
237.9
2831
330.4
363.7
402.5
413.2
440 6
469.2
500.7
Net
interest
Nondefense
Other
Undistributed
offsetting
receipts
Total
budget
outlays
National
defense
Total nondefense
Payments
for
individuals
92 9
101.7
110.7
118.8
118.6
126.2
137 7
151.5
161.4
167.2
190.9
207.3
213.4
226.6
227.6
245.3
253.0
259.0
268.6
270.4
273.5
272.9
276.4
43 4
47.6
55.0
60.3
65.7
71.8
85 4
94.8
102.4
109.1
127.0
140.6
143.5
145.0
147.2
159.2
170.3
176.2
186.9
183.9
186.9
190.3
194.7
Net
interest
Other
Undistributed
offsetting
receipts
I
1965
1966
1967
1968
1969
1970
1971
1972...
1973
1974
1975
1976
1977
1978
1979
1980 . ...
1981
1982
1983
1984 estimate
1985 estimate
1986 estimate
1987 estimate
118 4
134.7
157.6
178.1
183.6
195.7
210.2
230.7
245.6
267.9
324.2
364.5
400.5
448.4
491.0
576.7
657.2
728.4
796.0
853.8
925.5
992.1
1,068.3
50 6
58.1
71.4
81.9
82.5
81.7
78.9
79.2
76.7
79.3
86.5
89.6
97.2
104.5
116.3
134 0
157.5
185.3
209.9
237.5
272.0
310.6
348.6
8.6
9.4
10.3
11.1
12.7
14.4
14.8
15.5
17.3
21.4
23.2
26.7
299
35.4
42.6
52.5
68.7
85.0
89.8
108.2
116.1
124.2
130.9
31.4 - 5 . 9
35.8 - 6 . 5
38.3 - 7 . 3
42.3 - 8 . 0
38.6 - 8 . 0
42.1 - 8 . 6
44.4 - 1 0 . 1
50.8 - 9 . 6
58.4 - 1 3 . 4
61.1 - 1 6 . 7
71.3
13 6
78.4 - 1 4 . 4
87.5 - 1 4 . 9
108.4 - 1 5 . 7
111.6
17 5
127.0 - 1 9 . 9
128.6 - 2 8 . 0
120.4
261
127.8 - 3 4 . 0
128.8
34 0
132 0 - 3 5 . 3
130.9 - 4 2 . 9
134.0 - 4 5 . 8
Note: Beginning in 1985, the budget reflects establishment of a military retirement trust fund, Amounts for previous years are shown on a comparable basis.
166.9
183.0
207.5
224.6
220.2
220.2
222.6
230.7
233.3
236.7
260.1
274.2
280.7
293.8
297.1
316.6
327.6
339.1
354.5
364.4
376.3
384.1
395.3
741
81.3
96.8
105.7
101.6
94.0
84 9
79.2
71.8
69 6
69.2
67.0
67.3
67.2
69.5
71.3
74.6
80.0
85.9
93.9
102.8
111.2
118.9
115
12 2
12.9
13.5
14.7
15.8
15 5
15.5
16.6
19.1
18.9
20.3
21.2
23.6
26.1
29.6
35.3
40.7
41.2
47.7
48.8
49.9
50.4
47.1
51.4
53.0
55.8
48.3
48.8
47.8
50.8
54.9
53.8
55.7
57.0
58.6
68.0
64.8
67.6
60.9
54.1
55.4
53.3
52.0
49.2
48.2
-9 0
95
-10.3
-10.8
101
-10.1
110
-9.6
-12.5
14 8
-10.7
10 6
-10.0
-10.0
10 5
-11.1
-13.5
11.9
-15.0
144
-14.2
-16.5
16 9
9-62
Table 26. BUDGET RECEIPTS AND OUTLAYS, 1789-1989 (in millions of dollars)
Fiscal year
1789-1849.
1850-1900.
1901-1905.
1906-1910.
1911-1915.
1916-1920.
Budget
receipts
Budget
outlays
Budget
surplus
or
deficit ( - )
1,160
14,462
2,797
3,143
3,517
17,286
1,090
15,453
2,678
3,196
3,568
40,195
+ 70
-991
+ 119
-52
-49
-22,909
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
5,571
4,026
3,853
3,871
3,641
3,795
4,013
3,900
3,862
4,058
5,062
3,289
3,140
2,908
2,924
2,930
2,857
2,961
3,127
3,320
+ 509
+ 736
+713
+ 963
+ 717
+ 865
+ 1,155
+939
+ 734
+ 738
1931...
1932...
1933...
1934...
1935...
1936...
1937...
1938..,
1939...
1940...
3,116
1,924
1,997
3,015
3,706
3,997
4,956
5,588
4,979
6,361
3,577
4,659
4,598
6,645
6,497
8,422
7,733
6,765
8,841
9,456
-462
-2,735
-2,602
-3,630
-2,791
-4,425
-2,777
-1,177
-3,862
-3,095
1941..
1942..
1943..
1944..
1945..
1946..
1947..
1948..
1949..
1950..
8,621
14,350
23,649
44,276
45,216
39,327
38,394
41,774
39,437
39,485
13,634
35,114
78,533
91,280
92,690
55,183
34,532
29,773
38,834
42,597
-5,013
-20,764
-54,884
-47,004
-47,474
-15,856
+ 3,862
+ 12,001
+ 603
-3,112
1951..
1952..
1953..
1954..
1955..
1956..
1957..
1958..
1959..
I960..
1961..
1962..
1963..
51,646
66,204
69,574
69,719
65,469
74,547
79,990
79,636
79,249
92,492
94,389
99,676
106,560
45,546
67,721
76,107
70,890
68,509
70,460
76,741
82,575
92,104
92,223
+ 6,100
-1,517
-6,533
-1,170
-3,041
+ 4,087
+3,249
-2,939
-12,855
+ 269
97,795
106,813
111,311
-3,406
-7,137
-4,751
Fiscal year
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
TQ
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
est
est
est
est
est
est
Budget
receipts
112,662
116,833
130,856
148,906
152,973
186,882
192,807
187,139
207,309
230,799
263,224
279,090
298,060
81,232
355,559
399,561
463,302
517,112
599,272
617,766
600,562
670,071
745,127
814,940
887,829
978,303
1,060,304
Budget
outlays
118,584
118,430
134,652
157,608
178,134
183,645
195,652
210,172
230,681
245,647
267,912
324,245
364,473
94,188
400,506
448,368
490,997
576,675
657,204
728,375
795,969
853,760
925,492
992,072
1,068,293
1,130,335
1,183,698
Budget
surplus
or
deficit (-)
-5,922
-1,596
-3,796
-8,702
-25,161
+ 3,236
-2,845
-23,033
-23,373
-14,849
-4,688
-45,154
-66,413
-12,956
-44,948
-48,807
-27,694
-59,563
-57,932
-110,609
-195,407
-183,689
-180,365
-177,132
-180,464
-152,032
-123,394
Totals, including outlays of off-budget Federal entities
Fiscal year
1973
1974
1975
1976
TQ
1977
1978
1979
1980
1981
1982
1983
1984 est
1985 est
1986 est
1987 est
1988 est
1989 est
Outlays
of offbudget
Federal
entities
60
1,447
7,307
1,785
8,700
10,359
12,467
14,245
21,005
17,331
12,357
16,196
14,814
8,789
7,221
7,631
4,767
Total
outlays
245,707
269,359
332,332
371,779
95,973
409,206
458,726
503,464
590,920
678,209
745,706
808,327
869,956
940,307
1,000,861
1,075,513
1,137,967
1,188,465
Total
surplus
or
deficit (-)
-14,908
-6,135
-53,242
-73,719
-14,741
-53,647
-59,166
-40,162
-73,808
-78,936
-127,940
-207,764
-199,884
-195,179
-185,922
-187,685
-159,664
-128,161
Data for 1789-1939 are for the administrative budget: data for 1940 and all following years are for the unified budget.
In calendar year 1976, the Federal fiscal year was converted from a July 1-June 30 basis to an Oct. 1-Sept. 30 basis. The TQ refers to the
transition quarter from July 1 to Sept. 30, 1976.
Off-budget Federal entity outlays begin in 1973.
INDEX
Accounting Office, General, 8-12
Acid rain research, 5-48
ACTION, 5-106, 8-160
Administration, Office of, 8-20
Administrative Conference of the
United States, 8-161
Administrative Office of the United
States Courts, 8-17
Adult Education, Office of Vocational
and, 8-74
Advisory Commission on Intergovernmental Relations, 8-169
Advisory Committee on Federal Pay, 8161
Aeronautical research and technology,
5-79
Aeronautics Board, Civil, M12, 5-79, 8162
Aeronautics and Space Administration,
National, 5-32, 5-79, 8-151, 8-195
Africa, humanitarian aid for, M13
African Development Bank, 5-25
African Development Foundation, 8-29
Aged:
Community service employment, 5102, 8-118
Housing, 5-65
Insurance, 8-93
Social services, 5-106
Agency operations, improvement of,
M18
Agent orange, veterans, 5-139
Aging, National Institute on, 8-87
Agricultural Cooperative Service, 8-44
Agricultural lands, conservation of, 552
Agricultural Library, National, 8-33
Agricultural Marketing Service, 8-41
Agricultural Outlook Board, World, 834
Agricultural programs, 3-35
Agricultural Research Service, 8-32
Agricultural Service, Foreign, 8-34
Agricultural Stabilization and Conservation Service, 8-35
Agricultural Trade Development and
Assistance Act (Public Law 83-480),
8-35
Agriculture:
Credit programs, 5-59
Export markets, 5-57
Agriculture—Continued
Federal programs, 5-55
Major missions and programs, totals,
table, 1983-87, 5-56
Marketing programs, 5-58
Markets aboard, 5-56
National needs, 5-55
Research, 5-58
Tax expenditures, 5-60
Agriculture, Department of, 5-32, 5-87,
5-128, 8-31, 8-191, 8-192
Aid to families with dependent children, 5-102, 5-129
Air carrier subsidies, 5-79
Air Force general purpose forces, 5-13
Air Force tactical aircraft, 5-14
Air National Guard, 5-15
Air Quality, National Commission on,
8-182
Air safety, 5-78
Air transportation, 5-78
Airlift forces, 5-14
Airmen's Home, Soldiers' and, 8-71
Airport and airway trust fund, 8-133
Airports, Metropolitan Washington, 8132
Airways and airports, 5-78
Alaska Natural Gas Transportation
System, Office of the Federal Inspector for the, 8-177
Alaska Power Administration, 8-80
Alaska Railroad, 8-131
Alcohol, Drug Abuse, and Mental
Health Administration, 8-88
Alcohol, Tobacco and Firearms, Bureau
of, 8-142
Allergy and Infectious Diseases, National Institute of, 8-85
Allocations between agencies, explanation, 7-11
American Battle Monuments Commission, 8-161
American Printing House for the Blind,
5-97
American Samoa, 5-151
Amtrak, 5-77, 5-81, 8-131
Animal pests and diseases, 5-59
Animal and Plant Health Inspection
Service, 8-40
Antarctic program, 5-34
Anti-drunk driving programs, 5-76
Ind-1
Ind-2
THE BUDGET FOR FISCAL YEAR 1985
Anti-terrorism assistance, international, 8-126
Anti-terrorism assistance, 5-24
Appalachian highway system, 8-128
Appalachian Regional Commission, 588, 8-170
Appalachian regional development programs, 8-22
Appeals, Court of Military, 8-59
Appeals Courts, 8-16
Appeals for the Federal Circuit, Court
of, 8-15
Apportionment system, 7-5
Appropriations:
Advance funding, 7-9
Annual, 7-8
Discussion, 7-8
Federal fund, 7-3
Multiple-year, 7-8
No-year, 7-9
Trust fund, 7-3
Appropriations, 7-3
Architect of the Capitol, 8-8
Architectural and Transportation Barriers Compliance Board, 8-162
Area and regional development, 5-87
Arms Control and Disarmament
Agency, 8-162
Arms reduction talks, Mil
Army:
Cemeterial expenses, 8-69
Civil functions, 8-69
Corps of Engineers, 8-69
General purpose forces, 5-9
Art, National Gallery of, 8-180
Arthritis, Diabetes, and Digestive and
Kidney Diseases, National Institute
of, 8-85
Arts, Commission of Fine, 8-163
Arts, National Endowment for the, 8174
Arts and the Humanities, National Endowment for the, 5-98
Asia Foundation, 8-126
Asian Development Bank, 5-25
Assessment, Office of Technology, 8-13
Atmospheric Administration, National
Oceanic and, 5-53, 8-51
Atmospheric research, 5-53
Atomic Energy Commission, 5-34
Atomic energy defense activities, 5-18,
8-78
Atomic energy defense research and development, 5-18
Aviation Administration, Federal, 8132
B
B-1B bomber, 5-9
Balances:
Budget authority, explanation, 7-10
Budget authority, totals, table, 198385, 9-16
Unobligated, 7-10
Banks:
Cooperatives, 6-15
Federal home loan, 6-15, 7-6
Federal Intermediate Credit, 6-15
Federal land, 6-15, 7-6
Federal Reserve, 5-160
Basis for budget figures, 7-15
Bicentennial expenses, The Judiciary,
8-18
Bilingual Education and Minority Languages Affairs, Office of, 8-74
Blind, American Printing House for
the, 5-97
Blind and Other Severely Handicapped,
Committee for Purchase from the*
8-163
Blood Institute, National Heart, Lung,
and, 8-84
Bonneville Power Administration, 8-80
Border enforcement, M13
Border enforcement activities, 5-144
Border inspection programs, M13
Borrow, authority to, 7-8
Borrowing and debt repayments, definition, 7-14
Botanic Garden, 8-13
Bridges, alteration of, 8-134
Bridges, rehabilitation, M12
Broadcasting, Board for International,
5-28
Broadcasting, Corporation for Public,
5-98, 8-164
Broadcasting activities, international,
M13
Brucellosis control program, 5-59
Budget:
Accounts listing, 8-1
Allowances:
Budget authority and outlays,
totals, table, 1983-87, 5-161
By program, totals, table, 1983-87,
5-161
Contingencies, 5-162
Allowances, 5-2, 7-17
Balanced, M7
By agency, for each account and
functional code, 8-1
INDEX
Budget—Continued
By fund group, totals, table, 1983-87,
6-24
Capital expenditures, discussion, 6-21
Collections, discussion, 7-12
Composition in current and constant
prices, totals, table, 1966-87, 9-61
Congressional action, 7-3
Continuing resolution, 7-5
Controllability, totals, table, 1975-85,
9-44
Credit activities, discussion, 7-11
Credit activities, limits on, 7-12
Credit activities, 5-5
Current services, differences between,
by budget authority, totals, table
1984-89, 9-12
Current services, differences between,
by outlays, totals, table, 1984-89, 98
Data for 1983, 1984, and 1985, 198689, 7-16
Deficit, cyclical components, 2-12
Deficit, discussion, 2-13
Deficit, high employment, 2-18
Deficit, structural components, 2-12
Deficit reduction program, 2-14
Definition, 7-13
Definition of terms, 7-2
Earned income tax credit, 5-132
Economic assumption changes due to,
table, 1984-88, 2-12
Economic assumptions, comparison
of, table, 1983-88, 2-15
Economic assumptions, long-range,
table, 1986-89, 2-13
Economic assumptions, longer range,
discussion, 2-11
Economic assumptions, sensitivity of
the budget to rules of thumb, 2-17
Economic assumptions, sensitivity to,
table, 1984-89, 2-23
Economic assumptions, 2-1, 2-9
Employment, high, 2-17
Estimates, current, table, 1984-88, 212
Estimates, reports on, 7-4
Execution and control, 7-5
Executive formulation and transmittal, 7-2
Federal program, by agency and account, 8-1
Federal program by function, discussion, 5-2
Figures, basis for, 7-15
Financing, table, 1983-85, 9-18
Ind-3
Budget—Continued
Financing and change in debt outstanding, table, 1983-87, 6-25
Financing and change in debt subject
to limit, table, 1983-85, 6-26
Fiscal activities outside of, 6-7
Fiscal policy guidelines, 7-2
Functional classification:
Changes, 5-3
Discussion, 5-2
Functional classification, 7-6
Funds, discussion, 6-24
Funds, limitations on the availability
of, 6-5
Funds, types of, explanation, 7-7
Legislative proposals for major new
and expanded programs in the 1985
budget, projection costs of, 9-40
Long range assumptions discussion,
2-12
Multi-year planning system, 7-2
National needs, discussion, 5-2
Nondefense spending growth, 3-2
Outlays:
Percent growth in, M4
Outlook, changes in, 2-15
Perspectives, 6-1
Preparation for transmittal to the
Congress, 7-3
Process, discussion, 7-2
Program and trends, discussion, 3-1
Projections, 2-13, 7-2
Receipts and outlays, totals, table,
1789-1989, 9-62
Short-range assumptions discussion,
2-8
Summary, totals, table, 1983-85, 9-4
Summary tables, explanation of, 9-2
Surplus or deficit, by fund group, 624
System and concepts, explanation of,
7-2
Targets, 7-6
Totals, coverage of, 7-5
Totals, table, 1789-1989, 9-62
Totals and savings plan, 3-54
Budget, Office of Management and, 5150, 7-2, 8-20
Budget authority:
Agriculture, totals, table, 1983-87, 556
Allowances, by program, total, table,
1983-87, 5-161
Appropriations, 7-8
As voted by Congress, 7-3
Ind-4
THE BUDGET FOR FISCAL YEAR 1985
Budget authority—Continued
Atomic energy defense activities, 519
Available through current action by
Congress, table, 1983-87, 6-3
Available through current action by
Congress, totals, table, 1983-85, 913
Available without current action by
Congress, table, 1983-87, 6-3
Balances, by agency, totals, table,
1983-85, 9-16
Balances, explanation, 7-10
Borrow, authority to, 7-8
Budget targets of, 7-4
By agency, for each account and
functional code, 8-1
Commerce and housing credit, totals,
table, 1983-87, 5-62
Community and regional development, totals, table, 1983-87, 5-85
Contract authority, 7-8
Current services and the budget, diffenerces between, totals, table
1984-89, 9-12
Defense, national, 5-8
Defense—Military, 5-10
Deferrals, 7-5
Education, training, employment and
social services, totals, table, 198387, 5-93
Energy, totals, table, 1983-87, 5-40
Explanation, 7-8
Fiscal assistance, general purpose,
totals, table, 1983-87, 5-154
Forward funding, 7-9
General government, totals, table,
1983-87, 5-148
General science, space, and technology, 5-33
Health, totals, table, 1983-87, 5-108
Income security, totals, table, 198387, 5-119
Interest, totals, table, 1983-87, 5-159
International affairs, 5-22
Intragovernmental transactions, 7-14
Justice, administration of, totals,
table, 1983-87, 5-143
Natural resources and environment,
totals, table, 1983-87, 5-49
Obligations, 7-8
Off-budget Federal entities, table,
1983-87, 6-3
Off-setting receipts, undistributed,
total, table, 1983-87, 5-163
Permanent, 7-3
Reappropriations, 7-9
Budget authority—Continued
Relation to outlays, totals, table,
1983-85, 9-14
Rescission, 7-5
Reserves, 7-5, 7-9
Social security and medicare, totals,
table, 1983-87, 5-115
Summary:
By agency, totals, table, 1983-85, 99
By agency, totals, table, 1983-89, 95,9-9
By function, totals, table, 1983-89,
9-10
Totals, table, 1983-89, 9-9
Targets, 7-4
Transportation, totals, table, 1983-87,
5-74
Veterans benefits and services, totals,
table, 1983-87, 5-136
Budget Concepts, President's Commission on, 6-15
Budget Message of the President, Ml
Budget Office, Congressional, 7-4, 8-8
Cancer Institute, National, 8-84
Capitol, Architect of the, 8-8
Caribbean basin initiative, 4-6
Cash, exchange of, 7-15
Cash management system, M17
Cemeterial expenses, Army, 8-69
Census, Bureau of the, 8-48
Centers for Disease Control, 8-84
Central America, assistance to, M13, 524
Central Intelligence Agency, 8-162
Chemical spills, hazardous, 5-48
Child Health and Human Development,
National Institute of, 8-86
Child support, payments to States from
receipts for, 8-93
Child support enforcement, 5-131, 8-93
Children:
Aid to families with dependent, 5-129
Nutrition programs, 5-129
Chrysler Corporation loan guarantee,
8-141
Civil Aeronautics Board, M12, 5-79, 8162
Civil and criminal justice, 5-142
Civil defense program, 5-18
Civil Rights, Commission on, 8-163
Civil Rights, Office for, 8-95
Civil service reform proposals, M14
INDEX
Civil service retirement system, discussion, M14
Civilian retirement and disability programs, 5-122
Claims, Court of, 8-16
Claims, Defense, Department of, .8-59
Coal miners, disabled, 5-121, 8-92
Coal mining, regulation of surface, 5-52
Coast Guard, 5-79, 8-134
COLA, cost-of-living adjustment, M4,
M14, 5-122
Colorado river basin power marketing
fund, 8-81
Commerce, Department of, 8-47
Commerce Commission, Interstate, 8172
Commerce and housing credit:
Credit programs, table, 1983-87, 5-69
Major missions and programs, totals,
table, 1983-87, 5-62
National needs, 5-61
Tax expenditures, 5-71
Commerce and industry, promotion of,
8-50
Commerical programs, 3-20
Commodity Credit Corporation, 5-55, 5130, 8-37
Commodity Futures Trading Commission, 8-163
Communication technology satellite, 536
Communications Commission, Federal,
8-165
Communicative Disorders and Stroke,
National Institute of Neurological
and, 8-85
Community assistance, 3-20
Community development block grants,
5-84
Community Development Corporation,
New, 8-99, 8-194
Community development credit unions
revolving fund, 8-95
Community planning and development,
8-98, 8-194
Community and regional development:
Credit programs, table, 1983-87, 5-89
Federal policy, 5-84
Major missions and programs, totals,
table, 1983-87, 5-85
National needs, 5-84
Tax expenditures, 5-91
Community service programs, 5-105
Community Services Administration, 8164
Community services program, 8-94
Ind-5
Commuter rail service, 8-130
Compact of Free Association, 5-26, 5151, 8-126
Comptroller of the Currency, Office of
the, 8-144
Conciliation Service, Federal Mediation
and, 8-168
Congress, Library of, 8-11
Congress of the United States, 5-147, 83
Congressional Budget Act of 1974, 7-3
Congressional Budget Office, 7-4, 8-8
Congressional Research Service, 5-147,
8-11
Conrail, 5-77, 6-9, 8-130
Conservation:
Energy, 5-43
Soil and water, 5-52
Wildlife, 8-72
Conservation and land management, 551
Construction grants, sewage treatment
plants, 5-48
Construction programs:
Defense—Military, 8-63
Energy, Department of, 5-35
Hospitals and extended care facilities, 5-140
National Aeronautics and Space Administration, 5-35, 8-152
Stanford Linear Collider, 5-35
Tennessee Valley Authority, 5-42
Veterans Administration, 8-158
Construction projects:
Corps of Engineers, 5-51
Consumer Affairs, Office of, 8-95
Consumer Price Index, M3, 2-2, 2-22
Consumer Product Safety Commission,
8-164
Consumer safety, 5-111
Contract authority, 7-8
Conventional forces, modernization of,
Mil
Conventional military forces, 5-10
Cooperation in Europe, Commission on
Security and, 8-13
Cooperative Service, Agricultural, 8-44
Cooperative State Research Service, 833
Cooperatives, banks for, 6-15
Copyright Office, 8-11
Copyright Royalty Tribunal, 8-13
Corporate income taxes, 4-18
Corporate sector, nonfinancial, 2-6
Corps of Engineers—Civil, 5-51, 8-69
Correctional activities, Federal, 5-145
Ind-6
THE BUDGET FOR FISCAL YEAR 1985
Corrections, National Institute of, 5146, 8-116
Cost-of-living adjustments (COLA's),
M4, M14, 5-122
Cotton classing, 5-58
Council of Economic Advisers, 8-19
Council on Environmental Quality, 819
Council on Wage and Price Stability, 820
Credit activities, Federal, M5, 5-5, 7-11
Credit Administration, Farm, 8-165
Credit assistance, Ml5
Credit budget, discussion, 5-5, 7-12
Credit budget, limits on, 7-12
Credit control system, 5-3, 6-6
Credit programs:
Agriculture, totals, table, 1983-87, 559
Commerce and housing credit, 5-69
Community and regional development, 5-89
Controlling Federal, M15
Defense, national, 5-19
Education, 5-98
Energy, 5-45
Fiscal assistance, general purpose, 5156
General government, 5-151
General science, space, and technology, 5-37
Health, 5-112
Income security, 5-132
International affairs, 5-30
Natural resources and environment,
5-54
Transportation, 5-81
Veterans benefits and services, 5-140
Credit Union Administration, National,
5-66, 8-174
Crime, drug enforcement, organized, 5142
Criminal justice, discussion, M12
Criminal justice assistance, 5-145
Crop insurance, 5-58
Crop Insurance Corporation, Federal,
5-58, 8-36
Crude Oil Windfall Profit Tax Act of
1980, 6-37
Cruise missile, 5-9
Cuba, radio broadcasting to, 5-28
Current budget authority, definition, 79
Current expense and capital investment, explanation, 7-7
Current services and the budget, differences between, by outlays, totals,
table 1984-89, 9-8
Current services and the budget, differences between, by budget authority, totals table, 1984-89, 9-12
Current services estimates, 7-3
Custom duties, 4-19
Customs Court, 8-16
Customs and Patent Appeals, Court of,
8-15
Customs Service, United States, 5-144,
8-142
D
Deaf, National Technical Institute for
the, 5-98
Debt, Bureau of Public, 8-143
Debt service program, 3-13
Defense, Department of—Civil, 8-69
Defense, Department of—Military:, 854
Budget authority, totals, table, 198387, 5-10
Construction programs, 8-63
Major mission and program, total obligational authority, table, 1983-87,
5-12
Military personnel, 5-15
Military personnel and forces, summary of active, table, 1983-85, 5-17
Operation and maintenance, 8-56
Outlays, totals, table, 1983-87, 5-11
Procurement, 5-11, 5-17, 8-59
Production guarantees, 8-193
Research and development, 5-15, 862
Revolving and management funds, 866
Tax expenditures, 5-17
Defense, national:
Credit programs, table, 1983-87, 520
Atomic energy defense activities,
totals, table, 1983-87, 5-19
Major missions and programs, 5-10
National needs, 5-8
Resources, increases in, 5-8
Defense acquisition fund, special, 5-29
Defense buildup, M4
Defense and national interest programs, 3-6
Defense spending, increase, 5-8
Deferral, definition, 7-9
Deficit, cyclical components, 2-12
INDEX
Deficit, high employment, 2-18
Deficit, reduction study, M9
Deficit, structural components, 2-12
Deficit or surplus, totals, table, 17891989, 9-62
Deficit or surplus, 6-25, 7-13
Definite budget authority, definition, 79
Delaware River Basin Commission, 8171
Dental Research, National Institute of,
8-85
Deposit fund accounts, liabilities in, 715
Development assistance, economic, 8-49
Development assistance, international,
8-24
Diabetes, and Digestive and Kidney
Diseases, National Institute of Arthritis,, 8-85
Direct loans, M15, 5-5, 5-64, 7-11
Disability insurance, Federal, 8-94
Disability insurance, 5-114
Disaster assistance, international, 8-26
Disaster assistance, 5-89
Disaster relief and insurance, 5-88
Disaster relief programs, 5-89, 8-22
Disease Control, Centers for, 8-84
Dislocated workers, 5-101
District of Columbia, payments and
loans to the, 5-153
District of Columbia, Temporary Commission on Financial Oversight of
the, 8-13
District of Columbia, 8-164
District Courts, 8-16
Dividends Tax Compliance Act of 1983,
Interest and, 4-6
Domestic International Sales Corporation, 4-13, 5-29
Domestic volunteer programs, 5-106
Drug Abuse, Mental Health, and Alcohol Administration, 8-88
Drug Abuse Prevention, Special Action
Office for, 8-22
Drug Administration, Food and, 8-82
Drug enforcement, M12
Drug Enforcement Administration, 5142, 8-116
Drunk driving programs, anti, 5-76
E
Earth radiation budget experiment satellite, 5-36
Economic activity, regulation of, 5-6
Economic Advisers, Council of, 8-19
Ind-7
Economic assumptions, comparison of
January 1983 and current, 2-16
Economic assumptions, comparison of,
6-30
Economic assumptions, discussion, 2-2
Economic assumptions, effects on the
Budget of changes in, 2-16
Economic assumptions, long-range,
table, 1986-89, 2-13
Economic assumptions, longer range,
discussion, 2-11
Economic assumptions, sensitivity of
the budget to rules of thumb, 2-17
Economic assumptions, sensitivity of
the budget to, 2-23
Economic assumptions, 2-9
Economic change, sensitivity of the
budget to rates of, 2-19
Economic changes, unanticipated, 2-11
Economic conditions, prospective, 7-3
Economic Development Administration,
5-87, 8-49
Economic development assistance, 8-49
Economic forecast, short-range, table,
1982-85, 2-11
Economic growth, discussion, M9
Economic outlook, discussion, 2-2
Economic outlook, 7-2
Economic policy, 2-2
Economic recovery, discussion, M6
Economic recovery, 1983, 2-5
Economic recovery, M3
Economic Recovery Tax Act of 1981, 43
Economic Research Service, Agriculture Department, 8-34
Economic and Statistical Analysis, 8-48
Economic subsidies, 3-19
Economic support fund, 5-24
Economics and Statistics Service, 8-34
Economy, actual vs. projected, chart, 27
Education:
Adult, 5-96, 8-74
Block grants, M9
Credit programs, table, 1983-87, 5-99
Credit programs, 5-98
Disadvantaged, 5-93, 8-73
Disadvantaged children, M9
Elementary and secondary, 5-92, 873
Federal impacted areas, 5-96
Handicapped, 5-96, 8-74
Health manpower, 5-111
Higher, 5-97, 8-75
Indians, 5-96, 8-73
Ind-8
THE BUDGET FOR FISCAL YEAR 1985
Education—Continued
Languages, bilingual and minority,
8-74
Loan guarantees, 5-97
Math and science, M9, 5-96
Postsecondary, 8-75
Reforms, M9
Rehabilitative, 8-74
Research and improvement, 8-76
Savings accounts, M9
Student aid programs, M9
Tax expenditures, 5-99
Tax incentives for higher, 4-11
Training and employment programs,
M9
Tuition tax credits, M9, 4-11
Veterans, 5-138, 8-159
Vocational, 5-92, 5-96, 8-76
Voucher programs, M9
Work-study program, 5-97
Education, Department of, 8-73
Education, training, employment, and
social services:
Federal programs, 5-92
Major missions and programs, totals,
table, 1983-87, 5-93
National needs, 5-92
Tax expenditures, 5-103, 5-106
Education programs, 3-30
Educational Research and Improvement, Office of, 8-76
Egypt, military and economic support
for, M13
Election Commission, Federal, 8-166
Electrification Administration, Rural,
8-38
Elementary and Secondary Education,
Office of, 8-73
Emergency energy preparedness, 5-43
Emergency Management Agency, Federal, 5-18, 5-89, 8-166
Emergency national mobilization, 5-19
Employment, full, 2-16
Employment, full-time permanent civilian, by agency, totals, table, 198386, 9-17
Employment assistance, temporary, 8118
Employment Opportunity Commission,
Equal, 8-165
Employment Services, 8-118
Employment Standards Administration, 8-120
Employment and Training Administration, 8-117
Employment and training block grants,
5-101
Enacted Legislation And Administration Action, 4-3
Energy:
Activities, atomic, 8-78
Budget authority and outlays, totals,
table, 1983-87, 5-40
Conservation, 5-43
Credit programs, 5-45
Emergency preparedness, 5-43, 8-79
Federal role, 5-38
Major missions and programs, totals,
table, 1983-87, 5-40
National needs, 5-38
Nuclear, 5-39
Production and use, 5-38, 5-42
Programs, 8-193
Research, Mil, 8-78
Research and development, 5-39
Solar, 5-39
Strategic Petroleum Reserve, Mil, 8191
Supplies, 5-39
Tax expenditures, 5-47
Energy, Department of, 5-32, 5-44, 878, 8-191, 8-193
Energy assistance, low-income home, 5132
Energy and Energy Conservation Bank,
Solar, 8-98
Energy Information Administration, 544
Energy and minerals, 8-109
Energy programs, 8-78
Energy Regulatory Commission, Federal, 5-44, 8-80
Engraving and Printing, Bureau of, 5150, 8-142
Enterprise zone programs, 5-91
Enterprise zone tax incentives, 4-11
Entitlement programs, means-tested,
M5
Environmental Health Sciences, National Institute of, 8-86
Environmental Protection Agency, 8146
Environmental Quality, Council on and
Office of, 8-19
Environmental regulatory enforcement,
5-48
Equal Employment Opportunity Commission, 8-165
Equal opportunity, fair housing and, 8100
Estate and gift taxes, 4-19
INDEX
Europe, Commission on Cooperation
and Security in, 8-13
Exchange Commission, Securities and,
8-179
Exchange stabilization fund, 6-8, 7-15,
8-139
Excise taxes, 4-19
Executive, Legislative, and Judicial Salaries, Commission on, 8-181
Executive Office of the President, 5147, 8-18
Executive Residence at The White
House, 8-19
Expenditures, national income accounts, totals, table, 1974-85, 9-59
Export credit, Commodity Credit Corporation, 5-57
Export-Import Bank, 5-28, 6-8, 8-165
Extension Service, Agriculture, 8-33
Eye Institute, National, 8-86
Family housing, Defense Department,
8-65
Family social services, 5-105, 8-94
Farm Credit Administration, 8-165
Farm income stabilization, 5-55
Farmers Home Administration, 5-58,
5-64, 5-66, 5-87, 6-12, 8-38, 8-192
Federal Aviation Administration, 5-78,
8-132
Federal Bureau of Investigation, 5-142,
8-115
Federal Communications Commission,
8-165
Federal credit activities, M5
Federal Crop Insurance Corporation, 558, 8-36
Federal debt, discussion, 6-24
Federal debt, 9-4
Federal debt as a percent of GNP,
chart, 6-30
Federal Deposit Insurance Corporation,
5-66, 8-165
Federal Election Commission, 8-166
Federal
Emergency
Management
Agency, 5-18, 5-89, 8-166
Federal employee health benefits, 5-109
Federal employees:
Benefit formula, M14
Benefits for, 5-122
Employment reduction, M18
Pay increases, 5-161
Retirement, increased payments, 5162
Retirement contributions, M14, 4-12
Ind-9
Federal employees—Continued
Retirement and disability, 5-122
Workers' compensation, 5-124
Federal Energy Regulatory Commission, 5-44
Federal finance and the gross national
product, 1966-87, 9-60
Federal Financing Bank, 5-150, 5-160,
6-8, 7-6, 8-191
Federal fund appropriations, 7-3
Federal funds, explanation, 7-7
Federal Grain Inspection Service, 8-41
Federal grants-in-aid programs, 5-157
Federal Highway Administration, 8-127
Federal Home Loan Bank Board, 8-167
Federal home loan banks, 6-15
Federal Home Loan Mortgage Corporation, 6-15
Federal hospital insurance trust fund,
8-91
Federal Housing Administration, 5-64
Federal Housing Administration fund,
8-97
Federal Insurance Contributions Act,
7-10
Federal Intermediate Credit Banks, 615
Federal intrafund transactions, definition, 7-14
Federal Judicial Center, 8-17
Federal Labor Relations Authority, 5150, 8-167
Federal land banks, 6-15
Federal law enforcement activities, 5142
Federal Law Enforcement Training
Center, 8-140
Federal litigative and judicial activities,
5-144
Federal Maritime Administration, M12
Federal Maritime Commission, 5-80, 8168
Federal Mediation and Conciliation
Service, 8-168
Federal Mine Safety and Health
Review Commission, 8-168
Federal National Mortgage Association,
6-15
Federal Pay, Advisory Committee on,
5-161, 8-161
Federal pay raises effect on budget outlays, 2-22
Federal Prison System, 8-116
Federal Procurement Policy, Office of,
8-21
Federal program, by function, 5-1
Ind-10
THE BUDGET FOR FISCAL YEAR 1985
Federal Railroad Administration, 8-130
Federal Reserve System, 5-160, 7-5, 713
Federal responsibilities, discussion, M8
Federal Savings and Loan Insurance
Corporation, 5-66
Federal ship financing fund, 8-136
Federal spending, M7, 2-18
Federal supplementary medical insurance trust fund, 8-91
Federal system, reform for, M14
Federal tax collections, 2-18
Federal tax system, M4
Federal taxes, 5-6
Federal Trade Commission, 8-168
Federal-aid highways, 8-128
Federal-State employment service, 5103
Financial Operations, Bureau of Government, 8-140
Financial Oversight of the District of
Columbia, Temporary Commission
on, 8-13
Financial programs, 3-20
Firearms, Bureau of Alcohol, Tobacco
and, 8-142
Fiscal assistance, general purpose:
Credit programs, table, 1983-87, 5156
Federal funds, 5-153
Major missions and programs, totals,
table, 1983-87, 5-154
National needs, 5-153
Tax expenditures, 5-156
Fiscal assistance program, 5-153
Fiscal operations, central, 5-147
Fiscal policy guidelines, 7-2
Fiscal policy report, 7-4
Fiscal priorities, reordering of the Nation's, 3-9
Fiscal procedures, reform of, M7
Fish, wildlife, and parks programs, 8105
Fish and Wildlife Service, United
States, 5-48, 8-105
Fisheries:
International commissions, 8-125
Flood insurance fund, national, 5-89
Food aid, international, 5-26
Food and Drug Administration, 8-82
Food and nutrition assistance, 5-129
Food and Nutrition Service, 8-43
Food program, special supplemental, 5130
Food Safety and Inspection Service, 842
Food stamp program, 5-129, 8-43
Foreign affairs, administration of, 8122
Foreign affairs, conduct of, 5-27
Foreign agents, M13
Foreign aggression, protection from, 58
Foreign Agricultural Service, 8-34
Foreign aid, 5-21
Foreign assistance, M13, 8-23, 8-35
Foreign currency, special programs, Defense, Department of—Military, 866
Foreign economic and financial assistance, 5-24
Foreign informational and exchange activities, 5-28
Foreign military sales credit, 5-21, 5-30
Foreign military sales trust fund, 5-29
Foreign policy, M13, 5-21
Foreign Service, 5-27
Forest Service, 5-155, 8-44
Forestry research, 5-51
Forests, management of, 5-51
Fossil energy program, 5-39
Foster Grandparents program, 5-106
Franklin Delano Roosevelt Memorial
Commission, 8-169
Fuels Corporation, Synthetic, 5-42, 6-9,
7-6, 8-197
Full Employment and Balanced Growth
Act, 5-5
Functional classification, definition, 7-6
Functional classification, 5-2
Funds, limitations on the availability
of, 6-5
Funds, types of, explanation, 7-7
Funds appropriated to the President, 822
Gallaudet College, 5-98
General Accounting Office, 5-147, 8-12
General fund, explanation, 7-7
General government:
Credit programs, table, 1983-87, 5152
Federal funds, 5-147
Major missions and programs, totals,
table, 1983-87, 5-148
National needs, 5-147
Programs and trends, 3-43
Tax expenditures, 5-152
General purpose forces, defense, 5-12
General revenue sharing, 5-153
Ind-11
INDEX
General science, space, and technology:
Budget authority and outlays, totals,
table, 1983-87, 5-33
Federal support, 5-32
Major missions and programs, totals,
table, 1983-87, 5-33
National needs, 5-32
Tax expenditures, 5-37
General Services Administration, 5-18,
5-150, 8-148, 8-196
Geological Survey, 5-53, 8-104
Geothermal program, 5-41
Government, improving the efficiency
of, M16
Government corporations, 7-5
Government
Financial
Operations,
Bureau of, 8-140
Government National Mortgage Association (GNMA), 5-64, 8-97
Government Printing Office, 8-12
Government-sponsored enterprises:
Cooperatives, banks for, 6-15
Discussion, 5-7
Federal home loan banks, 6-15
Federal Home Loan Mortgage Corporation, 6-15
Federal Intermediate Credit Banks,
6-15
Federal land banks, 6-15
Federal National Mortgage Association, 6-15
Student Loan Marketing Association,
6-15
Government-sponsored enterprises, 615, 7-6
Governmental receipts, definition, 7-13
Grace Commission, M7, M17
Grain Inspection Service, Federal, 8-41
Grain inspection and weighing, 5-58
Grants, Pell, 5-97
Grazing permits, 5-155
Grenada, military operations in, 5-9
Gross national product (GNP):
Federal finance and, table, 1966-87,
9-60
Public debt as a percent of, table,
1966-87, 9-60
Gross national product (GNP), 2-2, 2-5,
2-13, 2-15
Gross national product growth, real, 221
Ground transportation, 5-74
Guam, 5-151, 5-155
Guaranteed loans, discussion, 6-16
Guaranteed loans, outstanding, chart,
6-17
Guard forces, 5-15
H
Handicapped, Committee for Purchase
from the Blind and Other Severely,
8-163
Handicapped, education of, 5-96, 8-74
Harry S Truman Scholarship Foundation, 8-168
Hawaiians Study Commission, Native,
8-176
Hazardous substance response fund, 548, 8-146
Head Start program, 5-105
Health:
Block grants, 5-108
Credit programs, table, 1983-87, 5112
Federal programs, 5-107
Indians, 5-111
Insurance programs, Mil
Major missions and programs, totals,
table, 1983-87, 5-108
Manpower, education and training,
5-111
National needs, 5-107
Occupational safety, 5-111
Programs and trends, 3-30
Research, 5-111
State grants, 8-89
Tax expenditures, 5-113
Health, National Institutes of, 5-33, 5111, 8-84
Health, Office of Assistant Secretary
for, 8-89
Health Administration, Mine Safety
and, 5-112, 8-121
Health Administration, Occupational
Safety and, 5-112, 8-121
Health care costs, Mil
Health Care Financing Administration,
8-90
Health care services, 5-107
Health and Human Services, Department of, 8-82, 8-193
Health maintenance organizations, 5110
Health Resources and Services Administration, 8-83, 8-193
Health Review Commission, Federal
Mine Safety and, 8-168
Health and Safety Review Commission,
Occupational, 8-177
Ind-12
THE BUDGET FOR FISCAL YEAR 1985
Health services management, public, 889
Heart, Lung, and Blood Institute, National, 8-84
Helicopters, recovery, Coast Guard, 580
High energy physics program, 5-34
Highway Administration, Federal, 8127
Highway Revenue Act of 1982, 4-4
Highway Traffic Safety Administration,
National, 8-129
Highways:
Beautification, 8-127
Improvement and construction, 5-76
Interstate system, M12
Interstate transfer grants, 8-128
Public recreation areas, 8-128
Railroad crossings, 8-127
Rehabilitation, M12
Safety, 5-76, 8-127
Territorial, 8-128
Historic Preservation, Advisory Council
on, 8-161
Historical agencies, 8-168
Holocaust Memorial Council, United
States, 8-183
Home Administration, Farmers, 6-12,
8-192
Home Loan Bank Board, Federal, 8-167
Hopi Indian Relocation Commission,
Navajo and, 5-151
Hospital insurance trust fund, Federal,
8-91
House of Representatives, 8-5
Housing:
Assistance, 5-126
Elderly, 5-65
Handicapped, 5-65
Indians, 5-128
Insurance, 5-66
Loans, direct and guaranteed, 5-64
Mortgage credit, 5-64
Mortgage credit and thrift insurance,
5-64
Mortgage purchase activities, 5-64
New starts, 2-7
Programs, 8-96, 8-194
Public and Indian, 8-97
Rental development grants, 5-85
Rental rehabilitation grants, 5-85
Rural programs, 5-66, 5-128
Subsidies, 5-127
TIM's, trusts for investments in
mortgages, 5-61
Veterans, 5-140
Housing Administration, Federal, 5-64
Housing for the elderly or handicapped
fund, 6-8
Housing and equal opportunity, fair, 8100
Housing and Urban Development, Department of, 5-65, 5-84, 8-96, 8-194
Howard University, 5-98
Human Development, National Institute of Child Health and, 8-86
Human Development Services, 8-94
Human Nutrition Information Service,
8-44
Human Services, Department of Health
and, 8-82, 8-193
Humanities, National Endowment for
the, 8-174
Humanities, National Endowment for
the Arts and, 5-98
I
Immigration and Naturalization Service, 5-144, 8-116
Immigration and Refugee Policy, Select
Commission on, 8-182
Impoundment Control Act, 7-5
Improvement initiatives, management,
M5
Income program, supplemental security, 8-92
Income security:
Credit programs, table, 1983-87, 5133
Federal programs, 5-118
Major missions and programs, totals,
table, 1983-87, 5-119
National needs, 5-118
Tax expenditures, 5-133
Income taxes, 4-2, 4-18
Indefinite budget authority, definition,
7-9
Independent agencies, 8-160
Indian Affairs, Bureau of, 5-96, 8-108
Indian programs, 5-87
Indians:
Education, 8-73
Health, 5-111
Housing, 5-128, 8-97
Indians, education and welfare, 5-96
Individual retirement account (IRA), 49
Industry, Department of International
Tvade and, M13, 5-67
Industry and commerce, promotion of,
8-50
INDEX
Infectious Diseases, National Institute
of Allergy and, 8-85
Inflation, discussion, M6
Inflation, impact on Federal spending,
2-18
Inflation, impact on Federal tax collections, 2-18
Inflation rates, annual, table, 1977-83,
2-4
Inflation rates, reduction in, 2-2
Information Administration, National
Telecommunications and, 8-53
Information Agency, United States, 523, 5-28, 8-183
Information Resources Management,
Office of, 8-149
Information Science, National Commission on Libraries and, 8-173
Inspection Service, Food Safety and, 842
Insurance:
Agriculture credit, 5-58
Crop, 5-58
Disability, Federal, 8-94
Disability, 5-114
Health, M13
Hospital, Federal, 8-91
Life, 5-138
Medical, Federal supplementary, 891
Mortgage credit and thrift, 5-64
Old-age and survivors, Federal, 8-93
Old-age and survivors, 5-114
Old-age survivors and disability, 5114
Railroad Employment, Extension of
Federal/State Unemployment Coverage, 4-13
Retirement and disability, 5-118
Rural housing, 5-66
Supplemental medical, 5-116
Veterans, 5-138, 8-157
Insurance Corporation, Federal Deposit, 8-165
Intelligence Community Staff, 8-169
Inter-American Foundation, 8-28
Inter-American Investment Corporation, 5-25
Interest:
Budget authority and outlays, by programs, totals, table, 1983-87, 5-159
Public debt, 5-158, 8-145
Trust funds, 5-158
Interest and Dividends Tax Compliance
Act of 1983, 4-6
Ind-13
Interest rates, effect on the public debt,
2-23
Interest rates, reduction in, 2-3
Interest rates, selected, table, 1977-83,
2-3
Interfund transactions, definition, 7-14
Intergovernmental assistance, Ml4
Intergovernmental Relations, Advisory
Commission on, 8-169
Interior, Department of the, 5-155, 8101, 8-195
Internal Revenue Service, M13, 5-147,
8-143
International affairs:
Budget authority and outlays, totals,
table, 1983-87, 5-22
Credit programs, table, 1983-87, 5-30
Discussion, M13
Federal responsibility, 5-21
Major missions and programs, totals,
table, 1983-87, 5-22
National needs, 5-21
Tax expenditures, 5-29
International Broadcasting, Board for,
5-28, 8-162
International broadcasting activities,
M13
International Center, Washington, D.C.,
8-126
International commissions, 8-125
International Cooperation and Development, Office of, 8-35
International Development, Agency for,
5-25, 8-25
International development assistance,
8-24
International Development Association,
5-25
International disaster assistance, 8-26
International financial programs, 5-28
International fisheries commissions, 8125
International food aid, 5-26
International military education and
training, 5-24
International Monetary Fund, 5-21, 715
International monetary programs, 8-29
International narcotics control, 8-126
International organizations, contributions to, 5-25
International organizations and conferences, 5-27, 8-124
International Sales Corporation, Domestic, 4-13
Ind-14
THE BUDGET FOR FISCAL YEAR 1985
International security assistance, 5-21,
8-23, 8-191
International and territorial affairs, 8110
International Trade, United States
Court of, 8-16
International Trade Administration, 850
International Trade Commission, 8-172
International Trade and Industry, Department of, M13, 5-67
Interstate Commerce Commission, M12,
8-172
Interstate Commission on the Potomac
River Basin, 8-171
Intrabudgetary transactions, definition,
7-14
Intragovernmental agencies, 8-169
Intragovernmental funds, explanation,
7-7
Intragovernmental transactions, definition, 7-14
Israel, military and economic support
for, M13
Japan-United States Friendship Commission, 8-172
Job Corps, 5-102
Job training, block grants, M14
Job Training Partnership Act, 5-100
Job training programs, M10
John E. Fogarty International Center
for Advanced Study in the Health
Sciences, 8-87
Judicial Center, Federal, 8-17
Judicial Salaries, Commission on Executive, Legislative, and, 8-181
Judiciary, The, 8-15
Justice, administration of:
Federal expenditures, 5-142
Major missions and programs, totals,
table, 1983-87, 5-143
National needs, 5-142
Justice, Department of, M13, 5-144, 8113
Justice Assistance, Office of, 8-117
K
Kidney Diseases, National Institute of
Arthritis, Diabetes, and Digestive
and, 8-85
Labor, Department of, 8-117
Labor Relations Authority, Federal, 5150, 8-167
Labor Relations Board, National, 8-175
Labor Statistics, Bureau of, 8-121
Labor-Management Services Administration, 8-119
Land acquisition, Federal, 5-52
Land Management, Bureau of, 5-155,
8-101
Land management activities, 5-155
Land and minerals management, 8-101
Law enforcement, interagency, 8-115
Law enforcement activities, M12
Law Enforcement Training Center,
Federal, 8-140
Lebanon, military operations in, 5-9
Legal activities, Justice, Department of,
8-114
Legal Services Corporation, 5-145, 8172
Legislative, and Judicial Salaries, Commission on Executive, 8-181
Legislative Branch, 5-147, 8-3
Legislative proposals for major new and
expanded programs in the 1985
budget, projection costs of, 9-40
Liabilities in deposit fund accounts, 715
Libraries and Information Science, National Commission on, 8-173
Library, National Agricultural, 8-33
Library of Congress, 5-98, 8-11
Library of Medicine, National, 8-87
Livestock grading, 5-58
Loan Bank Board, Federal Home, 8-167
Loan guarantees, Veterans Administration, 8-159
Loan guarantees, M15, 5-5, 5-64, 7-11
Loans:
Direct obligations by agency, totals,
table, 1983-85, 9-42
Education, 5-97
Guarantees by agency, totals, table,
1983-85, 9-43
Low-income benefits programs, 3-27
Low-income home energy assistance, 5132
Lung, and Blood Institute, National
Heart, 8-84
M
Mammal Commission, Marine, 8-173
Management and Budget, Office of, 5150, 7-2, 8-20
Ind-15
INDEX
Management improvement, expenses
of, 8-22
Management systems, streamlining of,
M18
Marine Mammal Commission, 8-173
Marine safety, 5-79
Marine transportation system, 5-79
Maritime Administration, Federal, M12
Maritime Administration, 5-80, 8-136
Maritime Commission, Federal, 5-80, 8168
Maritime strength, 5-8
Marketing Service, Agricultural, 8-41
Mass transit program, 5-76
Mass transit systems, M12
Meat grading, 5-58
Mediation Board, National, 8-175
Mediation and Conciliation Service,
Federal, 8-168
Medicaid, Mil, 5-107, 8-90
Medical care, veterans, 8-158
Medical insurance, supplemental, 5-116
Medical insurance trust fund, Federal
supplementary, 8-91
Medical research, Veterans Administration, 8-158
Medical Sciences, National Institute of
General, 8-86
Medicare, 5-107, 5-114
Medicine, National Library of, 8-87
Medicine, President's Commission for
the Study of Ethical Problems in,
8-182
Memorial agencies, 8-169
Mental Health Administration, Alcohol, Drug Abuse and, 8-88
Merchant Marine, United States, 5-80
Merit Systems Protection Board, 5-150,
8-173
Metric Board, United States, 8-185
Metropolitan Washington Airports, 8132
Micronesian governments, 5-151
Migration and refugee assistance, 8-126
Military Appeals, Court of, 8-59
Military assistance, 5-21
Military compensation, 5-15
Military forces, M4
Military personnel:
Active forces, 8-54
Pay and benefits, 5-16
Reserve forces, 8-55
Retired forces, 8-56
Retirement, 5-16, 5-123, 8-71
Summary of active, table, 1983-85, 517
Military personnel—Continued
Tax exemption for deceased, 4-14
Military retirement trust fund, 5-3
Military sales programs, 8-29
Military sales trust fund, foreign, 5-29
Military strength, increase in, M10
Military strength, restoration of, M4
Mine lands, reclamation of abandoned,
5-52
Mine Safety and Health Administration, 5-112, 8-121
Mine Safety and Health Review Commission, Federal, 8-168
Mineral leasing programs, 5-155
Minerals Management Service, 5-155,
8-102
Mines, Bureau of, 5-53, 8-105
Mining Reclamation and Enforcement,
Office of Surface, 8-102
Mining reclamation and enforcement,
5-52
Minority
Business
Development
Agency, 8-50
Minority Languages Affairs, Office of
Bilingual Education and, 8-74
Mint, Bureau of the, 5-150, 8-143
Monetary power, exercise of, 7-15
Monetary programs, international, 8-29
Mortgage Association, Government National (GNMA), 5-64, 8-97
Mortgage credit programs, 5-64
Mortgage credit and thrift insurance,
5-64
Mortgage purchase activites, 5-64
Motor Carrier Ratemaking Study Commission, 8-182
Multilateral development assistance, 524, 8-24
Museum Services, Institute of, 8-175
N
Narcotics control, international, 8-126
Narcotics violation investigation, 5-142
National Aeronautics and Space Administration, 5-32, 5-79, 8-151, 8195
National Agricultural Library, 8-33
National Board for Promotion of Rifle
Practice,, 8-59
National Bureau of Standards, 5-68, 852
National Capital Planning Commission,
8-173
National Cemetery System, 5-140
Ind-16
THE BUDGET FOR FISCAL YEAR 1985
National Credit Union Administration,
5-66, 8-174
National Endowment for the Arts, 8174
National Endowment for the Arts and
the Humanities, 5-98
National Endowment for the Humanities, 8-174
National Gallery of Art, 8-180
National Highway Traffic Safety Administration, 8-129
National income accounts, transactions
in, totals, table, 1974-85, 9-59
National Institute of Corrections, 5146, 8-116
National Institutes of Health, 5-33, 5111, 8-84
National interest programs, 3-49
National Labor Relations Board, 8-175
National Library of Medicine, 8-87
National Mediation Board, 8-175
National needs, discussion, 7-6
National needs, the Federal program
by function, 5-1
National Oceanic and Atmospheric Administration, 5-53, 8-51
National Park Service, 8-106
National Park System, 5-53
National Railroad Passenger Corporation (Amtrak), 5-77, 8-131
National Science Foundation, 5-32, 8175
National security, 5-9, 5-21
National Security Council, 8-20
National Service Life Insurance, 8-159
National Telecommunications and Information Administration, 8-53
National Traffic Safety Administration,
5-76
National Transportation Safety Board,
8-176
National Zoological Park, 8-180
Native Hawaiians Study Commission,
8-176
NATO, 5-8, 5-9, 5-14
Natural gas, deregulation of, M12
Natural resources and environment:
Credit programs, table, 1983-87, 5-54
Federal responsibility, 5-48
Major missions and programs, totals,
table, 1983-87, 5-49
National needs, 5-48
Receipts, offsetting, 5-53
Tax expenditures, 5-54
Naturalization Service, Immigration
and, 5-144, 8-116
Navajo and Hopi Indian Relocation
Commission, 5-151, 8-182
Naval aviation forces, 5-13
Naval general purpose forces, 5-12
Naval petroleum and oil shale reserve,
8-79
Naval petroleum reserve, 5-42
Naval reactor development, 5-18
Neighborhood Reinvestment Corporation, 8-176
Neurological and Communicative Disorders and Stroke, National Institute
of, 8-85
New Community Development Corporation, 8-99
New York City loan guarantees, 8-140
Nondefense spending, M4
Nondefense spending growth, 3-2
Northeast
Corridor
Improvement
Project, 5-77
Northern Marianas, 5-151
Nuclear attack, deterance of, 5-8
Nuclear breeder reactors, 5-41
Nuclear capabilities, strategic, 5-8
Nuclear energy programs, 5-39
Nuclear materials production, 5-18
Nuclear physics program, 5-34
Nuclear power plants, 5-42
Nuclear power regulation, 5-44
Nuclear Regulatory Commission, 5-44,
8-176
Nuclear Safety Oversight Committee,
8-183
Nuclear waste, disposal of, 5-42
Nuclear waste management, 5-18
Nuclear weapons, 5-18
Nutrition Information Service, Human,
8-44
Nutrition programs, 5-129
Nutrition Service, Food and, 8-43
O
Obligations:
Incurred, net, by agency, totals, table
1983-85, 9-15
Incurred, 7-8, 7-10
Liquidation of, 7-10
Occupational Safety and Health Administration, 5-112, 8-121
Occupational Safety and Health Review
Commission, 8-177
Ocean shipping, deregulation of, M12
Ocean shipping, 5-80
Oceanic and Atmospheric Administration, National, 5-53, 8-51
INDEX
Off-budget Federal entities: 8-191
Discussion, 5-7, 7-5
Exchange stabilization fund, 6-8
Export-Import Bank, 6-8
Federal Financing Bank, 5-160, 6-10
Housing for the elderly or handicapped fund, 6-8
Outlays, discussion, 6-8
Outlays, totals, table, 1973-89, 9-62
Outlays, totals, table, 1983-87, 6-11
Pension Benefit Guaranty Corporation, 6-8
Postal Service fund, 6-9
Railway Association, U.S., 6-9
Receipts, 7-14
Rural electrification and telephone
revolving fund, 6-8
Rural Telephone Bank, 6-8
Synthetic Fuels Corporation, 6-9
Off-setting receipts, major changes, 5-3
Offsetting collections, definition, 7-13
Offsetting receipts, by type, 9-22
Offsetting receipts, undistributed:
Budget authority and outlays, totals,
table, 1983-87, 5-163
Explanation, 5-163
Oil pipelines, deregulation of, Ml2
Old-age and survivors disability insurance, Federal, 5-114, 8-93
Old-age and survivors insurance, 5-114
Olympic Winter Games, XIII, 8-59
Olympics, Summer, 8-59
Outer Continental Shelf, rents and royalties, 5-164, 7-13
Outlays:
Agriculture, totals, table, 1983-87, 557
Allowances, by program, total, table,
1983-87, 5-161
As a percent of GNP, table, 1966-87,
9-60
Atomic energy defense activities, 519
Available through current action by
Congress, totals, table, 1983-85, 913
Budget targets of, 7-4
By agency, for each account and
functional code, 8-1
By function, totals, table, 1975-85, 948
By function and agency, totals, table,
1983-85, 9-25
Civil defense, 5-18
Commerce and housing credit, totals,
table, 1983-87, 5-63
Ind-17
Outlays—Continued
Community and regional development, totals, table, 1983-87, 5-86
Comparisons of relatively uncontrollable, discussion, 6-32
Composition in current and constant
prices, totals, table, 1965-87, 9-61
Controllability, totals, table, 1975-85,
9-44
Current services and the budget, differences between, total, table,
1984-89, 9-8
Defense, national, 5-10
Defense—Military, 5-11
Discussion, 5-6
Education, training, employment and
social services, totals, table, 198387, 5-94
Energy, totals, table, 1983-87, 5-40
Explanation, 7-10
Federal Financing Bank, total, table,
1983-87, 6-13
Fiscal assistance, general purpose,
totals, table, 1983-87, 5-154
General government, totals, table,
1983-87, 5-149
General science, space, and technology, 5-33
Government sponsored enterprises,
discussion, 6-14
Health, totals, table, 1983-87, 5-109
Income security, totals, table, 198387, 5-120
Increase, chronology of 1983, 6-28
Interest, totals, table, 1983-87, 5-159
International affairs, 5-23
Intragovernmental transactions, 7-14
Justice, administration of, totals,
table, 1983-87, 5-143
Natural resources and environment,
totals, table, 1983-87, 5-50
Off-budget Federal entities, table,
1966-87, 9-60
Off-budget Federal entities, totals,
table, 1983-87, 6-11
Off-budget Federal entities, 6-8
Off-setting receipts, undistributed,
total, table, 1983-87, 5-163
Percent growth in real budget, M8
Relation to budget authority, totals,
table, 1983-85, 9-14
Relationship to outlays, 6-2
Relationship of budget authority to,
6-2
Relatively uncontrollable, totals,
table, 1983, 6-33
Ind-18
THE BUDGET FOR FISCAL YEAR 1985
Outlays—Continued
Social security and medicare, totals,
table 1983-87, 5-115
Summary:
By agency, totals, table, 1983-85, 95
By function, totals, table, 1983-89,
9-6
Totals, table, 1983-89, 9-5
Summary of reasons for changes, 628
Totals, table, 1789-1989, 9-62
Transportation, totals, table, 1983-87,
5-75
Unified budget, table, 1966-87, 9-60
Veterans benefits and services, totals,
table, 1983-87, 5-137
Overseas Private Investment Corporation, 8-28, 8-192
Pacific Islands, Trust Territory of the,
5-27, 5-151, 8-113
Packers and Stockyards Administration, 8-44
Panama Canal Commission, 5-80, 8-177
Papago Indian tribe, 5-151
Paperwork burden, reduction of, M13
Park Service, National, 8-106
Park System, National, 5-53
Parole Commission, United States, 8114
Patent Appeals and Customs, Court of,
8-15
Patent and Trademark Office, 8-52
Pay, Advisory Committee on Federal,
8-161
Peace Corps, 5-26, 8-28
Peacekeeper missile, 5-9
Peacekeeping operations, 5-24
Pennsylvania Avenue Development
Corporation, 8-177
Pension Benefit Guaranty Corporation,
5-121, 6-8, 8-119
Pension Policy, President's Commission
on, 8-182
Pensions, veterans, 8-157
Pensions, 3-23
Permanent budget authority, definition, 7-9
Personnel management, central, 5-150
Personnel Management, Office of, 5150, 8-154
Petroleum overcharge restitution fund,
4-14
Petroleum reserve, naval, 5-42
Petroleum reserve, strategic, 6-9, 7-6
Petroleum reserves, national, 5-39, 543
Petroleum reserves, 8-30, 8-79
PIK, payment-in-kind, 5-56
Planets, exploration of, 5-36
Planning Commission, National Capital, 8-173
Plant Health Inspection Service,
Animal and, 8-40
Plant pests and diseases, 5-59
Policy Development, Office of, 8-20
Policy development and research, housing, 8-100
Pollution control and abatement programs, 5-48, 8-147
Pollution fund, Coast Guard, 8-135
Ports and channels, construction of,
M12
Postal Service, 5-67, 8-178, 8-197
Postal Service fund, 6-8, 7-6
Postsecondary Education, Office of, 875
Poultry grading, 5-58
Power marketing administrations, 5-42
President, Executive Office of the, 5147, 8-18
President, The:
Budget Message, Ml
Compensation of, 8-18
Executive Residence at The White
House, 8-19
Funds appropriated to, 8-22, 8-191
Needs, unanticipated, 8-22
Special assistance to, 8-19
President's Commission on Budget Concepts, 6-15
President's Commission on Pension
Policy, 8-182
President's Commission For the Study
of Ethical Problems in Medicine, 8182
President's Council on Integrity and Efficiency, Ml 6
President's Private Sector Survey on
Cost Control, M7, M16
Presidential election campaign fund, 8139
Price Index, Consumer, M3, 2-2
Price Index, Producer, 2-2
Price Stability, Council on Wage and,
8-20
Price support, Commodity Credit Corporation, 5-55
Prices effect on the budget of higher, 221
INDEX
Printing, Bureau of Engraving and, 5150, 8-142
Printing Office, Government, 8-12
Prison System, Federal, 8-116
Procurement:
Army, 5-10
Defense, 5-11, 5-17, 8-59
Navy, 5-13
Procurement Policy, Office of Federal,
8-21
Producer Price Index, 2-2
Product Safety Commission, Consumer,
8-164
Property:
General, 5-150
Management, 5-150
Personal, 8-148
Real, 8-148
Surplus, 8-148
Property Review Board, 8-21
Proprietary receipts, 4-19
Proprietary receipts from the public,
definition, 7-13
Prosecution and representation, civil
and criminal, 5-144
Public Broadcasting, Corporation for,
5-98
Public debt:
As a percent of GNP, table, 1966-87,
9-60
Interest on, 5-158, 7-3, 7-10, 7-16, 8145
Limit, totals, table, 1982-85, 9-18
Outstanding, table, 1982-85, 9-18
Public Debt, Bureau of, 8-143
Public enterprise revolving funds, explanation, 7-7
Public Health Service, 8-82
Public infrastucture, 3-37
Public land management, 5-52
Public works acceleration, 8-30
Public works projects, civil, 5-91
Puerto Rico, aid to, 5-129
Puerto Rico, payment to, 5-155
R
Radio broadcasting to Cuba, 5-28
Radio Free Europe, 5-28
Radio Liberty, 5-28
Rail crossings, 8-127
Railroad, research and development, 8130
Railroad Accounting Principles Board,
8-13
Railroad Administration, Federal, 8130, 8-195
Ind-19
Railroad Employment, Extension of
Federal/State Unemployment Insurance Coverage, 4-13
Railroad litigation, settlements of, 8130
Railroad Passenger Corporation, National (Amtrak), 5-77, 5-81, 8-131
Railroad rehabilitation and improvement, 8-131
Railroad retirement, 5-118
Railroad Retirement Board, 8-178
Railroad Retirement Revenue Act of
1983, 4-5
Railroad safety, 8-130
Railroads, 5-77
Railway Association, United States, 69, 7-6, 8-185, 8-197
Ratemaking Study Commission, Motor
Carrier, 8-182
Readjustment benefits, veterans, 8-157
Reappropriations, definition, 7-9
Receipts:
Allocation of Windfall Profit Tax,
total, table, 1985, 6-38
Budget, definition, 7-13
Budget targets of, 7-4
By source, discussion, 4-18
By source, totals, table, 1975-85, 9-46
By source, totals, table, 1983-85, 9-19
By source, totals, table, 1983-87, 4-3
Changes in, discussion, 4-16
Changes in, totals, table, 1983-87, 417
Comparison of, actual and estimated,
discussion, 6-35
Comparison of, actual and estimated,
totals, tables, 6-35
Comparison of fiscal year 1983, totals,
table, 6-35
Comparison of relativelyaincontrollable, discussion, 6-35
Composition of, 4-2
Discussion, 4-2
Effect of Enacted Legislation, totals,
table, 1983-87, 4-9
Effect of Proposed Legislation, totals,
table, 1984-87, 4-15
Governmental, 7-13
National income accounts, totals,
table, 1974-85, 9-59
Natural resources and environment,
5-53
Off-setting, major changes, 5-3
Offsetting, by type, totals, table,
1983-85, 9-22
Offsetting, 7-13
Ind-20
THE BUDGET FOR FISCAL YEAR 1985
Receipts—Continued
Proposals, discussion, 4-9
Reimbursements, 7-13
Relation to GNP, table, 1966-87, 9-60
Rents and royalities, 7-14
Social insurance, 7-13
Summary:
By source, totals, table, 1983-89, 95
Totals, table 1983-89, 9-5
Totals, table 1789-1989, 9-62
Recession, 2-2
Reclamation, Bureau of, 5-51, 8-103
Records management, General Services
Administration, 5-150, 8-149
Recreational resources, 5-52
Reform 88, M16
Refugee assistance, 5-26, 5-132, 8-93,
8-126
Refugee Policy, Select Commission on
Immigration and, 8-182
Regional development programs, 5-87,
8-49
Regional rail reorganization program,
8-197
Regulatory
Commission,
Federal
Energy, 5-44
Regulatory Commission, Nuclear, 5-44
Regulatory Council, United States, 8147
Regulatory reform, M12
Rehabilitation services, 5-105
Rehabilitative Services, Office of Special Education and, 8-74
Reimbursements, definition, 7-13
Rental development grants, 5-85
Rental rehabilitation grants, 5-85
Rescission, definition, 7-9
Research:
Agricultural, 5-58
Basic scientific, 5-32
Energy, Mil
Environmental, 5-48
Health, 5-111
Housing policy, 8-100
National Aeronautics and Space Administration, 8-153
Science and technology, M10
Space, M10, 5-32, 5-36
Transportation, 8-137
Research and development:
Atomic energy defense, 5-18
Coast Guard, 8-135
Defense—Military, 5-15, 8-62
Education, 5-98
Energy, Department of, 5-34
Energy, 5-39
Research and development—Continued
Energy activities, 8-78
Environmental Protection Agency, 8146
Federal Bureau of Investigation, 5143
Highway Safety, 8-128
Maritime Administration, 8-136
National Aeronautics and Space Administration, 8-151
Railroad, 8-130
Vehicle safety, 5-76
Research Service, Agricultural, 8-32
Research Service, Congressional, 5-147,
8-11
Research Service, Cooperative State, 833
Reserve forces, 5-15
Resource conservation and development
program, 5-53
Retired senior volunteer program, 5106
Retirement, employer share, 5-163
Retirement, Federal employees, 5-163
Retirement, military, 8-71
Retirement and disability insurance, 5118
Retirement Revenue Act of 1983, Railroad, 4-7
Retirement trust fund, military, 5-3
Revenue laws, changes in, 7-4
Revenue Sharing, Office of, 8-140
Rural development, 5-87
Rural development loan fund, 8-94
Rural Development Policy, Office of, 837
Rural Electrification Administration,
5-44, 8-38, 8-192
Rural electrification and telephone revolving fund, 6-8, 7-5, 8-191
Rural housing programs, 5-66
Rural programs, 3-35
Rural Telephone Bank, 6-8, 7-5, 8-191
Safety:
Aviation, 5-78
Boating, 8-135
Highways and motor carrier, 5-76, 8127
Marine, 5-79
Nuclear, 5-39
Occupational and health, 5-111
Railroad, 8-130
INDEX
Safety Administration, National Traffic, 5-76
Safety Board, National Transportation,
8-176
Safety Commission, Consumer Product,
8-164
Safety and Health Administration,
Mine, 5-112, 8-121
Safety and Health Administration, Occupational, 5-112, 8-121
Safety and Health Review Commission,
Federal Mine, 8-168
Safety and Health Review Commission,
Occupational, 8-177
Sahel development program, 5-26, 8-25
Saint Elizabeth's Hospital, 5-110, 8-88
Saint Lawrence Seaway Development
Corporation, 8-137
Salaries, Commission on Executive,
Legislative, and Judicial, 8-181
Satellite system, tracking and data
relay, 5-36
Scatterometer, 5-36
Science, National Commission on Libraries and Information, 8-173
Science Foundation, National, 5-32, 8175
Science programs, general, 5-32
Science and technology, M10
Science and technology agreements,
United States bilateral, 8-126
Science and Technology Policy, Office
of, 8-21
Science and technology programs, Commerce Department, 8-51
Science and water programs, 8-104
Sealift forces, 5-14
Secret Service, United States, 8-144
Securities and Exchange Commission,
8-179
Security, national, 5-8, 5-21
Security assistance, international, 5-21,
8-23, 8-191
Security assistance, M13, 5-24
Security Council, National, 8-20
Security in Europe, Commission on Cooperation and, 8-13
Security income program, supplemental, 5-130
Seigniorage, 7-15
Selective Service System, 5-19, 8-180
Senate, United States, 8-3
Senior companions program, 5-106
Sergeant York, air defense gun, 5-11
Services, improvement of delivery, M18
Ind-21
Sewage treatment plant construction
grants, 5-48
Shipbuilding, Navy, 5-13
Ships:
Construction, 8-136
Financing fund, 8-136
Small Business Administration, 5-68,
5-89, 8-156, 8-196
Small business assistance, 5-67, 5-67
Smithsonian Institution, 5-98, 8-180
Social insurance programs, 3-5, 3-23
Social insurance taxes, 4-18
Social Security, National Commission
on, 8-182
Social security, 5-114
Social Security Administration, 8-92
Social Security Amendments of 1983, 45
Social security and medicare:
Major missions and programs, totals,
table, 1983-87, 5-115
Social Security Reform, National Commission on, 5-114
Social security system, M5, M7, 5-118
Social security taxes, 4-18
Social secutiry tax expenditures, 5-117
Social services, 5-104, 8-94
Social services block grants, 5-104, 8-94
Social services programs, 3-30
Soil Conservation Service, 8-39
Solar energy, 5-39
Solar Energy and Energy Conservation
Bank, 8-98
Solar system, study and exploration, 536
Soldiers' and Airmen's Home, 8-71
Southeastern Power Administration, 880
Southwestern Power Administration,
8-81
Space Administration, National Aeronautics and, 5-32, 5-79, 8-151, 8195
Space applications program, 5-36
Space exploration, 5-36
Space flight, 5-35
Space research, M10, 5-36
Credit programs, table, 1983-87, 5-37
Space research and technology, 5-38
Space science, applications, and technology, 5-36
Space shuttle, M10, 5-35
Space station, M10, 5-35
Space telescope, 5-36
Space transportation system, M10, 5-35
Spacelab, 5-35
Ind-22
THE BUDGET FOR FISCAL YEAR 1985
Special funds, explanation, 7-7
Spending restraint program, 3-16
St. Lawrence Seaway Commission, 5-80
Stagflation, legacy of, 2-3
Standards, National Bureau of, 8-52
State, Department of, 5-27, 8-122
State Research Service, Cooperative, 833
States:
Block grants, job training, 5-101
Boating safety assistance, 8-135
Education, block grants for, 5-92
Employment services, 8-118
Federal grants-in-aid programs, 5-157
Revenue sharing, general, 5-153
Unemployment insurance, 8-118
Statistical activities:
Agriculture, Department of, 8-34
Commerce, Department of, 8-48
Labor, Department of, 8-121
Statistical Reporting Service, 8-33
Statistics, Bureau of Labor, 8-121
Statistics Service, Economics and, 8-34
Stockyards Administration, Packers
and, 8-44
Strategic and critical materials, stockpile of, 5-18
Strategic forces, defense, 5-9
Strategic forces, modernization of, Mil
Strategic modernization program, 5-9
Strategic petroleum reserve, Mil, 5-39,
5-43, 6-9, 7-6, 8-79
Stroke, National Institute of Neurological and Communicative Disorders
and, 8-85
Student Financial Assistance, National
Commission on, 8-182
Student financial assistance, 5-97
Student Loan Marketing Association,
6-15
Summer youth employment, 5-101
Supplemental security income program,
5-130, 8-92
Supreme Court of the LTnited States, 815
Surplus or deficit, summary, totals,
table, 1983-85, 9-4
Surplus or deficit, totals, table, 17891989, 9-62
Surplus or deficit, 6-25, 7-13
Susquehanna River Basin Commission,
8-171
Synthetic Fuels Corporation, 5-42, 6-9,
7-6, 8-197
Tax collections, refunds of, 5-159
Tax Court, United States, 8-13
Tax Equity and Fiscal Responsibility
Act of 1982, 4-4
Tax expenditures:
Agriculture, 5-60
Commerce and housing credit, 5-71
Community and regional development, 5-91
Defense—Military, 5-17
Deferral of interest on U.S. saving
bonds, 5-160
Discussion, 5-6, 6-17
Education, 5-99
Employment, 5-103
Energy, table, 1983-85, 5-47
Fiscal assistance to States and localities, 5-156
General government, 5-152
General science, space, and technology, 5-37
Health, 5-113
Income Security, 5-133
International affairs, 5-29
Natural resources and environment,
5-54
Social security, 5-117
Social services, 5-106
Transportation, 5-83
Veterans benefits and services, 5-141
Tax system, reform of, M8
Taxes:
Collection of, 2-18, 5-147
Corporate income, 4-18
Curtailmant of shelters, accounting,
and corporate tax abuse, 4-10
Earned income credit, 5-132
Education, higher, incentives, 4-11
Enterprise zone incentives, 4-11
Estate and gift, 4-19
Excise, 4-19
Federal, 5-6
Federal system, M4
Foreign sales corporation, 4-13
Income, 4-2, 4-18
Social insurance, 4-18
Social security, 4-18
Structural reform, 4-10
Trusts for investment in mortgages,
4-13
Tuition credit, 4-11
Winfall profit receipts, 6-37
Withholding on real estate gaines of
foreign individuals, 4-13
Ind-23
INDEX
Taxes—Continued
Women's initiative, 4-9
Technology Assessment, Office of, 8-13
Technology Policy, Office of Science
and,8-21
Telecommunications and Information
Administration, National, 8-53
Tennessee Valley Authority, 5-42, 5-88,
8-183, 8-196
Territorial highways, 8-128
Territorial and international affairs, 8110
Timber sales, 5-51, 5-155
Tobacco and Firearms, Bureau of Alcohol, 8-142
Tobacco inspection, 5-58
Tourism Administration, United States
Travel and, 8-50
Trade, United States Court of International, 8-16
Trade Administration, International, 850
Trade Commission, Federal, 8-168
Trade Commission, International, 8-172
Trade and development program, 8-27
Trade and Industry, Department of International, M13, 5-67
Trade Representative, Office of the
United States, 8-21
Trademark Office, Patent and, 8-52
Traffic and highway safety, 5-76
Traffic Safety Administration, National, 5-76
Training:
Programs and trends, 3-30
Training Administration, Employment
and, 8-117
Training and employment block grants,
5-101
Training and employment programs, 5100
Transit Authority, Washington Metropolitan Area, 8-172
Transportation:
Air, 5-78
Credit programs, table, 1983-87, 5-82
Federal responsibility, 5-73
Ground, 5-74
Major missions and programs, totals,
table, 1983-87, 5-74
National needs, 5-73
Production and use, Mil
Rail, 5-77
Space, 5-35
Tax expenditures, 5-83
User fees, M12
Water, 5-79
Transportation, Department of, 8-127,
8-195
Transportation Barriers Compliance
Board, Architectural and, 8-162
Transportation Policy Study Commission, National, 8-182
Transportation Safety Board, National,
8-176
Travel and Tourism Administration,
United States, 8-50
Treasury, Department of the, M10, 8139, 8-191, 8-195
Trident missiles, 5-9
Trident submarine, 5-9
Trust fund appropriations, 7-3
Trust funds, explanation, 7-7
Trust funds, limitations on, 6-7
Trust intrafund transactions, definition, 7-14
Trust revolving funds, 7-7
Trust Territory of the Pacific Islands,
5-151, 8-113
U
Unemployment benefits, higher, 2-21
Unemployment benefits and allowances, 8-118
Unemployment compensation, 5-124
Unemployment insurance and employment services, 8-118
Unemployment rates, 2-7
United States, Supreme Court of the,
8-14
United States bilateral science and
technology agreements, 8-126
United States Court of International
Trade, 8-16
United States Courts, Administrative
Office of the, 8-17
United States Fish and Wildlife Service, 8-105
United States Government Life Insurance Fund, 8-159
United States Holocaust Memorial
Council, 8-183
United States Information Agency, 528, 8-184
United States Merchant Marine, 5-80
United States Metric Board, 8-185
United States Parole Commission, 8114
United States Railway Association, 7-6,
8-185, 8-197
United States Regulatory Council, 8147
Xnd-24
THE BUDGET FOR FISCAL YEAR 1985
United States Secret Service, 8-144
United States Tax Court, 8-13
United States Travel and Tourism Administration, 8-50
United States-Japan Friendship Commission, 8-172
Universe, study of, 5-36
Uranium enrichment, 5-42, 8-79
Urban Development, Department of
Housing and, 5-65, 5-84, 8-96, 8194
Urban development action grants, 5-84
Urban homesteading program, 5-87
Urban Mass Transportation Administration, 8-131
User fees:
Cotton and tobacco marketing news,
5-58
Deep draft and inland waterway projects, M12, 5-51
Maps and charts, nautical and aviation, Ml 2
Reclamation, Bureau of, 5-51
Recreational facilities, 5-52
Recreational use of national parks
and forests, 5-52
Veterans:
Agent orange, 5-139
Burial benefits, 8-157
Cemetery and burial benefits, 5-138
Compensation and pensions, 8-157
Education, training and rehabilitation, 5-138
Education, 8-159
GI bill, 5-138
GI Bill rate increase, M14
Hospital services, 5-139
Housing, 5-140
Income security, 5-135
Insurance, 8-157
Jobs program, 5-139
Life insurance, 5-138
Loans, 5-140, 8-159
Medical care, 5-139, 8-158
Nonservice-connected pensions, 5-136
On-the-job training, 5-138
Post-Vietnam era, 5-138
Programs and trends, 3-40
Readjustment benefits, 8-157
Service-connected compensation, 5135
Vietnam-era, 5-138
Vocational rehabilitation, 5-138
Veterans—Continued
Vocational rehabilitation assistance,
M14
Veterans Administration, 5-64, 5-135,
8-157
Veterans benefits and services:
Credit programs, table, 1983-87, 5141
Federal funds, 5-135
Major missions and programs, totals,
table, 1983-87, 5-136
National needs, 5-135
Tax expenditures, 5-141
Veto, line item, M7
Vice President, The, official residence
of, 8-19
Virgin Islands, 5-151, 5-155
Vocational and Adult Education, Office
of, 8-74
Vocational education, 5-92, 5-96, 8-76
Voice of America, 5-28
Volunteers in Service to America
(VISTA), 5-106
W
Wage and Price Stability, Council on,
8-20
Warsaw Pact, 5-9
Wartime Relocation and Internment of
Civilians, Commission, 8-181
Washington Metropolitan Area Transit
Authority, 8-172
Water resources, 5-48
Water Resources Council, 8-185
Water and science programs, 8-103
Water transportation, 5-79
Water and waste disposal grants, 5-87
Weapons, nuclear, 5-18
Western Area Power Administration,
8-81
White House Office, 5-147, 8-18
Wildlife, parks, and fish programs, 8105
Wildlife conservation, military reservations, 8-72
Wildlife Service, United States Fish
and, 5-48, 8-105
Woodrow Wilson International Center
for Scholars, 8-181
Work incentive program (WIN), 5-102,
8-94
Work-study program, 5-97
Workforce, nondefense, M5
Workplace hazards, 5-112
INDEX
Workplace safety and health inspections, 5-112
World Agricultural Outlook Board, 834
World Bank, 5-25
Youth, disadvantaged, M10
Youth employment, summer, 5-101
Ind-25
Z
Zoological Park, National, 8-180
@FedFRASER