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> 1 o 3! > ^3 ' %' vV' Jx^f , "Of 1 V > * ^ TABLE OF CONTENTS Part One, INTRODUCTION Page I. The Budget Message of the President 1 II. Director's Introduction and Overview Tables 5 III. Economic Assumptions and Sensitivities 29 Part Two. THEMES AND PRIORITIES IV. Investing in the Future 1 A. Investing in Human Capital and Reforming American Education 3 B. Focusing on Prevention and the Next Generation 21 C. Enhancing Research and Development and Expanding the Human Frontier 35 D. Improving the Transportation Infrastructure 77 E. Preserving America's Heritage and Protecting the Environment in a Growing Economy 87 V. Increasing Choice and Opportunity A. Increasing Choice, Expanding Distressed Communities 107 Opportunity, and Providing Hope to 109 B. Ending the Scourge of Drugs and Crime 123 C. Distributing Federal Benefits More Fairly 135 VI. Advancing States as Laboratories 145 A. Encouraging Experimentation 149 B. Reporting on Variation and Innovation 155 C. Providing Federal Aid to State and Local Governments 163 VII. Preserving National Security and Advancing America's Interests Abroad 179 A. Preserving National Security 183 B. Advancing America's Interests Abroad 193 VIII. Addressing Inherited Claims, Hidden Liabilities, and Debt 199 A. Recognizing and Reducing Federal Underwriting Risks 201 B. Identifying Long-Term Retirement Obligations 269 C. Accounting for Federal Borrowing and Debt 283 Page IX. Managing For Integrity and Efficiency 299 A. Strengthening Management and Accountability 303 B. Improving Returns on Investment 339 C. Reforming Regulation and Managing Risk-Reduction Sensibly 367 D. Reforming the Budget Process 377 E. Managing by Objectives 379 Part Three. RECEIPTS X. Receipts, User Fees, and Other Collections XI. Tax Expenditures 1 17 Part Four. FEDERAL PROGRAMS BY FUNCTION, AGENCY, AND ACCOUNT XII. Summary A. Federal Programs by Function B. Federal Programs by Agency and Account 1 3 15 C. Federal Employment 201 D. Relationship of Budget Authority to Outlays 205 E. Comparison of Actual and Estimated Totals for 1990 207 F. Off-Budget Federal Entities 213 XIII. Detailed Budget Estimates A. Detailed Budget Estimates by Agency 215 227 B. Proposed Revisions in Budget Authority—Including Supplemental and Rescissions 1199 C. Estimates for Government-Sponsored Enterprises 1223 Part Five. BUDGET ENFORCEMENT ACT PREVIEW REPORT AND CURRENT SERVICES ESTIMATES XIV. Budget Enforcement Act Preview Report XV. Current Services Estimates 1 13 Part Six. ALTERNATIVE BUDGET PRESENTATIONS XVI. National Income and Product Account Presentation XVII. Trust Funds and Federal Funds Presentation XVIII. Physical Capital Presentation XIX. General Accounting Office Preferred Presentation XX. State-Type Presentation ii 3 9 15 29 33 Page XXI. Operating, Retirement, and Debt and Interest Presentation 37 Part Seven. HISTORICAL TABLES Contents of the Historical Tables 3 Introduction 5 Historical Tables Part Eight- 13 GLOSSARY, LIST OF CHARTS AND TABLES, AND INDEX Glossary of Budget Terms 1 List of Charts and Tables 7 OMB Contributors to the 1992 Budget 19 Index 23 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 due to rounding. 3. Passage of the Omnibus Budget Reconciliation Act of 1990 in mid-November made preparation of the 1992 budget by the legal transmittal date of February 4th especially difficult. The President's 1992 budget had to comply with technically complex new spending caps, pay-as-you-go limits, and reforms of Federal credit programs. If, as a result, errors have been made, they will be corrected as soon as they are identified. U.S. GOVERNMENT PRINTING OFFICE WASHINGTON 1991 For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 iii