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BUDGET OF THE
UNITED STATES
GOVERNMENT
Fiscal Year 1994
THE BUDGET MESSAGE OF THE PRESIDENT
To the Speaker of the House of Representatives and
the President of the Senate:
I have the honor to transmit to you the Budget of
the United States Government for Fiscal Year 1994.
In my February 17th address to the Congress, and
in the report, A Vision of Change for America, that
followed the address, I outlined the basic elements of
the plan that forms the basis of this budget. The plan
has three key elements: economic stimulus to create
jobs now and lay the foundation for long-term economic
growth; long-term public investments to increase the
productivity of American workers and businesses; and
fair, balanced, and equitable deficit reduction measures
to stop government deficits from preempting the private
investments needed to create jobs and raise living
standards.
The plan flows from the demand of the American
people for change and my vision of what America can
be if we embark upon an economic strategy of investing
in people and putting people first. Achieving this
change will not be easy, but the cost of not changing
is far greater. To ensure that our children's generation
is not the first generation of Americans to do worse
in life than their parents, we must restore the American dream.
This budget extends the elements of the plan into
each department and agency of the Federal Government and proposes appropriations language and other
required information for the Congress to place the plan
fully into effect. Enactment of the proposals in this
budget will bring the vision that underlies my plan—
a vision of a brighter, more prosperous future for America—a step closer to reality.
Although powerful special interests that profit from
the status quo may oppose the plan, the American people have demanded change, and it is our responsibility
as their elected servants to answer their call and take
the action they demand.
I am gratified by and grateful for the support this
program has received in the Congress thus far. However, much remains to be done. Therefore, I ask for
your continued support and help. Together, we can get
the American economy moving again, bring Federal finances back to a sound footing, and restore hope in
the hearts of the American people.
WILLIAM J. CLINTON
April 8, 1993
TABLE OF CONTENTS
Page
The Federal Government Dollar
1
Budget Totals
2
Summary Information:
Economic Projections
5
Federal Receipts
11
User Fees and Other Collections
17
Trust Funds and Federal Funds
21
Federal Borrowing and Debt
31
Federal Employment
37
Federal Research and Development Expenditures
43
Federal Drug Control Spending
47
Federal Credit
49
Federal Investment Outlays
71
Federal Aid to State and Local Governments
77
National Income and Product Accounts
87
Comparison of Actual to Estimated Totals for 1992
91
Relationship of Budget Authority to Outlays
97
Discretionary Proposals by Appropriations Subcommittee
99
Off-Budget Federal Entities
101
Reductions in Administrative Costs
103
Progress Report: High Risk Areas for Management Improvement
105
Budget Enforcement Act Preview Report
131
Current Services Estimates
139
APPENDIX
Federal Programs by Function and Subfunction
Federal Programs by Agency and Account
A-3
A-33
Detailed Budget Estimates:
Explanation of Estimates
A-159
Governmentwide General Provisions
A-165
Detailed Budget Estimates by Agency:
Legislative Branch
A-169
The Judiciary
A-203
Executive Office of the President
A-215
Funds Appropriated to the President
A-227
Department of Agriculture
A-283
i
Page
Department of Commerce
A-407
Department of Defense—Military
A-441
Department of Defense—Civil
A-511
Department of Education
A-531
Department of Energy
A-569
Department of Health and Human Services, except Social Security
A-601
Department of Health and Human Services, Social Security
A-635
Department of Housing and Urban Development
A-639
Department of the Interior
A-677
Department of Justice
A-753
Department of Labor
A-785
Department of State
A-809
Department of Transportation
A-825
Department of the Treasury
A-887
Department of Veterans Affairs
A-925
Environmental Protection Agency
A-971
General Services Administration
A-985
National Aeronautics and Space Administration
A-1003
Office of Personnel Management
A-1009
Small Business Administration
A-1021
Other Independent Agencies
A-1033
Stimulus and Other Supplemental Proposals
A-1163
Investment Proposals
A-1203
Amendments to and Revisions in Budget Authority for 1993
A-1249
Advance Appropriations, Advance Funding, and Forward Funding for 1994
A-1251
Estimates for Government-Sponsored Enterprises
A-1253
Glossary of Budget Terms
A-1269
List of Charts and Tables
A-1275
Index
A-1281
ii
GENERAL NOTES
1.
2.
3.
4.
5.
The 1994 Budget of the United States Government consists of A Vision of Change
For America, dated February 17, 1993; the items contained in this document; and
the information in "Tax Expenditures" and "Federal Physical Capital Spending,"
published on January 6, 1993.
All years referred to are fiscal years, unless otherwise noted.
Detail in this document may not add to the totals due to rounding.
A separate document containing the "Historical Tables" was published on January 6, 1993.
The budget estimates presented in this document are based on the technical
assumptions made during the period when the budget was prepared. Consequently, some estimates may have been revised from those presented in A Vision of Change For America.
U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON 1993
For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402
THE FEDERAL GOVERNMENT DOLLAR
FISCAL YEAR 1994
ESTIMATE
WHERE IT COMES
FROM...
OTHER
CORPORATE 4 %
INCOME
TAX
WHERE IT
GOES...
OTHER
FEDERAL
OPERATIONS
DEPOSIT
INSURANCE
GRANTS TO
STATES
& LOCALITIES
15%
1
2
THE BUDGET FOR FISCAL YEAR 1994
BUDGET TOTALS
BUDGET TOTALS REFLECTING THE PRESIDENT'S PROPOSALS
In billions of dollars
1992
1993
1994
1995
1996
1997
1998
1,090.5
1,380.9
1,145.7
1,467.6
1,251.3
1,515.3
1,327.7
1,574.4
1,412.9
1,624.6
1,476.1
1,690.1
1,530.5
1,781.0
-290.4
-322.0
-264.1
-246.7
-211.7
-214.0
-250.4
-290.4
-316.7
-254.7
-230.3
-187.8
-181.0
-202.2
On-Budget Deficit
Off-Budget Surplus
-340.5
50.1
-366.5
44.5
-322.8
58.7
-311.5
64.8
-287.8
76.1
-296.6
82.6
-340.6
90.1
Unified Deficit, except for
Social Security
-341.1
-368.1
-324.3
-312.8
-287.1
-295.4
-339.2
Federal Funds Deficit
Trust Funds Surplus
-386.4
96.0
-414.2
92.3
-367.4
103.4
-358.8
112.1
-331.1
119.3
-337.2
123.2
-374.3
123.9
Receipts
Outlays
Deficit, assuming baseline
economics
Deficit, assuming Administration economics
ADDENDUM (assuming
baseline economics):
BUDGET TOTALS REFLECTING THE PRESIDENT'S PROPOSALS
As a percent of GDP
1992
1993
1994
1995
1996
1997
1998
18.6
23.5
18.6
23.8
19.2
23.3
19.4
23.0
19.6
22.6
19.6
22.4
19.4
22.6
-4.9
-5.2
-4.1
-3.6
-2.9
-2.8
-3.2
-4.9
-5.1
-3.9
-3.3
-2.5
-2.3
-2.5
On-Budget Deficit
Off-Budget Surplus
-5.8
0.9
-5.9
0.7
-5.0
0.9
-4.5
0.9
-4.0
1.1
-3.9
1.1
-4.3
1.1
Unified Deficit, except for
Social Security
-5.8
-6.0
-5.0
-4.6
-4.0
-3.9
-4.3
Federal Funds Deficit
Trust Funds Surplus
-6.6
1.6
-6.7
1.5
-5.6
1.6
-5.2
1.6
-4.6
1.7
-4.5
1.6
-4.8
1.6
Receipts
Outlays
Deficit, assuming baseline
economics
Deficit, assuming Administration economics
ADDENDUM (assuming
baseline economics):
Summary Information
ECONOMIC PROJECTIONS
Introduction
ing slightly to 2.2 percent in 1996 and subsequent
The economy experienced a recession during the lat- years. Long-term interest rates edge down from their
ter half of 1990 and the first quarter of 1991. The fourth quarter 1992 levels, while short-term rates rise
recovery from that recession has been anemic by past moderately from their current exceptionally low levels.
cyclical standards, even with the spurt in the rate of The first table below displays these assumptions in
growth in the second half of 1992. The result has been greater detail.
an abnormally weak labor market. Even after its 0.7
Administration Forecast
percentage point decline in recent months, the unemployment rate remains higher than it was at the end
The consensus of economists is somewhat more optiof the recession. Inflation has remained mild, and inter- mistic about the future course of the economy than
est rates have declined to their lowest levels in many the cautious assumptions described above. Part of the
years. The slow recovery reflects several structural ad- difference may be due to the positive reaction to the
justments: the massive layoffs in key American indus- President's economic program. To give some sense of
tries as firms seek to become leaner and more competi- the budgetary outcomes that would result from such
tive; the downsizing of the defense sector to meet the an economic performance, alternative calculations have
new realities of the post-Cold War world; the weakness been based upon the Administration forecast, which is
of financial institutions, and the failures of shaky busi- very close to the mainstream of economic forecasters
ness ventures to which they had made loans; and the and more optimistic than the baseline projections despending reductions and tax increases imposed by gov- scribed above. This forecast assumes that the economy
ernments at all levels.
will recover somewhat more quickly, and that its susThe recovery remains fragile. The Clinton Adminis- tainable growth rate in the long run will be higher
tration has proposed a comprehensive plan to promote than the 2 percent average projected above. This higher
sustained economic growth and put the Nation's fiscal growth reflects greater optimism about productivity,
house in order. It calls for short-term stimulus to en- which in part follows from the Administration's deficit
sure that the recovery is strong and durable; invest- reduction plan.
ments in people, infrastructure and technology to exUnder this alternative forecast, real growth is expand America's capacity to produce and increase employment opportunity; and deficit reduction to free pected to be somewhat stronger in 1993 (3.1 percent,
funds for productive private investments at reduced in- fourth-quarter-to-fourth-quarter, rather than 2.8 percent) and 1994 (3.3 percent rather than 3.0 percent),
terest rates.
and to remain at or above 2.5 percent annually through
1998, rather than declining to only 1.8 percent. The
Economic Assumptions
unemployment rate is projected to decline slightly more
Past budgets have used overly optimistic economic by 1998, to 5.5 percent rather than only to 5.7 percent.
assumptions. To avoid any appearance of a "rosy sce- Inflation, as measured by the GDP deflator, is projected
nario" that would sidestep hard fiscal choiees, the Ad- to be somewhat higher—3.0 percent a year, for
ministration has based this budget on a highly cautious 1996-98, rather than 2.2 percent a year—while interest
set of economic assumptions, identical to those devel- rate projections are broadly similar.
oped by the Congressional Budget Office. This affords
The next two tables compare the Administration's ala prudent basis for estimating the current budget baseternative
projections with the baseline forecast, and
line and the effects of the Administration's budget proshow the outlay and receipt changes from the deficits
posals.
Under these assumptions, real GDP grows 2.8 per- under the baseline forecast that are attributable to the
cent between the fourth quarter of 1992 and the fourth alternative assumptions.
quarter of 1993, following 2.7 percent growth in 1992. Omnibus Trade and Competitiveness Act of 1988
(Growth in 1992 has been reestimated at 3.2 percent
As required by this Act, the fourth table shows estisince the CBO assumptions were released.) Real growth
is projected at 3.0 percent in 1994, and slows progres- mates for economic variables related to saving, investsively thereafter, to only 1.8 percent in 1998. The un- ment, and foreign trade consistent with the baseline
employment rate falls from 7.3 percent in the fourth assumptions. Between fiscal years 1992 and 1994, the
quarter of 1992 to 5.7 percent by the fourth quarter merchandise trade and current account balances are
of 1997, and remains at that level during 1998.
expected to deteriorate moderately as a result of faster
Inflation, as measured by the GDP deflator, is 2.5 growth in the United States than among our major
percent in 1993 (fourth-quarter-to-fourth-quarter), slow- trading partners. Net domestic saving and investment
5
6
THE BUDGET FOR FISCAL YEAR 1994
BASELINE ECONOMIC ASSUMPTIONS1
(Calendar years; dollar amounts in billions)
Projections
Actual
1991
1992
1993
1994
1995
1996
1997
1998
5,678
4,821
117.8
5,943
4,918
120.8
6,254
5,054
123.8
6,594
5,204
126.7
6,942
5,354
129.7
7,288
5,497
132.6
7,626
5,628
135.5
7,952
5,740
138.5
3.5
0.1
3.3
5.1
2.7
2.4
5.4
2.8
2.5
5.4
3.0
2.4
5.2
2.8
2.3
4.9
2.6
2.2
4.5
2.2
2.2
4.1
1.8
2.2
2.8
-1.2
4.0
4.7
2.0
2.6
5.2
2.8
2.4
5.4
3.0
2.4
5.3
2.9
2.3
5.0
2.7
2.3
4.6
2.4
2.2
4.3
2.0
2.2
Incomes, billions of current dollars:
Personal income
Wages and salaries
Corporate profits before tax
4,828
2,812
335
5,050
2,912
376
5,308
3,055
432
5,617
3,226
457
5,952
3,404
480
6,282
3,576
509
6,602
3,737
534
6,913
3,891
551
Consumer Price Index (all urban):2
Level (1982-84-100), annual average
Percent change, fourth quarter over fourth quarter
Percent change, year over year
136.2
3.0
4.2
140.3
3.1
3.0
144.6
2.8
3.0
148.5
2.7
2.7
152.5
2.7
2.7
156.6
2.7
2.7
160.8
2.7
2.7
165.2
2.7
2.7
Unemployment rate, civilian, percent:3
Fourth quarter level
Annual average
Federal pay raises, January, percent
6.9
6.7
4.1
7.3
7.4
4.2
6.9
7.1
3.7
6.4
6.6
6.1
6.2
2.0
5.9
6.0
1.7
5.7
5.8
1.6
5.7
5.7
2.3
Interest rates, percent:
91-day Treasury bills4
10-year Treasury notes
5.4
7.9
3.5
7.0
3.2
6.7
3.7
6.6
4.3
6.6
4.7
6.5
4.8
6.5
4.9
6.4
Gross Domestic Product (GDP):
Levels, dollar amounts in billions:
Current dollars
Constant (1987) dollars
Implicit price deflator (1987-100), annual average
Percent change, fourth quarter over fourth quarter:
Current dollars
Constant (1987) dollars
Implicit price deflator (1987-100)
Percent change, year over year.
Current dollars
Constant (1987) dollars
Implicit price deflator (1987-100)
Based on information available to CBO as of December 1992, except proposed Federal pay raises.
for all urban consumers. Two versions of the CPI are now published. The index shown here is that currently used, as required by law, in calculating automatic adjustments to individual income tax brackets.
Percent of civilian labor force, excluding armed forces residing in the U.S.
4 Average rate (bank discount basis) on new issues within period.
1
2 CPI
3
COMPARISON OF ADMINISTRATION AND BASELINE FORECASTS
(Calendar years)
1993
Percent increase, fourth quarter over fourth quarter:
Real GDP:
Baseline
Administration
GDP deflator:
Baseline
Administration
Calendar year average in percent:
Civilian unemployment rate:
Baseline
Administration
91-day Treasury bill rate:
Baseline
Administration
10-year Treasury note rate:
Baseline
Administration
are projected to increase substantially as the economy
expands.
The Act requires information on the amount of borrowing by the Government in private credit markets.
This is presented in the later section on "Federal Borrowing and Debt."
1994
1995
1996
1997
1998
2.8
3.1
3.0
3.3
2.8
2.7
2.6
2.5
2.2
2.5
1.8
2.5
2.5
2.8
2.4
2.9
2.3
3.0
2.2
3.0
2.2
3.0
2.2
3.0
7.1
6.9
6.6
6.4
6.2
6.1
6.0
5.9
5.8
5.7
5.7
5.5
3.2
3.7
3.7
4.3
4.3
4.7
4.7
4.8
4.8
4.9
4.9
5.0
6.7
6.7
6.6
6.6
6.6
6.5
6.5
6.5
6.5
6.4
6.4
6.4
It is difficult to gauge with precision the effect of
Federal Government borrowing from the public on interest rates and exchange rates, as required by the
Act. Both are influenced by many factors besides Government borrowing in a complicated process involving
supply and demand for credit and perceptions of fiscal
and monetary policy here and abroad. The proposals
SUMMARY INFORMATION: ECONOMIC PROJECTIONS
7
DEFICITS UNDER ADMINISTRATION FORECAST
(In billions of dollars)
Deficit under baseline forecast
Change in receipts
Change in outlays
Change in deficit
Deficit under Administration forecast
1993-1998
total
1993
1994
1995
1996
1997
1998
322.0
4.1
-1.1
264.1
14.5
5.1
246.7
26.2
9.9
211.7
38.1
14.2
214.0
53.2
20.2
250.5
74.9
26.7
-5.2
-9.4
-16.4
-23.9
-33.0
-48.2
-136.1
316.7
254.7
230.3
187.8
181.0
202.2
1,372.8
1,508.9
211.0
75.0
SAYING, INVESTMENT, AND TRADE BALANCE
(Fiscal years; in billions of dollars)
1994 estimate
1992 actual
-89
-48
-37
327
102
Merchandise trade balance
Current account balance
Net foreign investment
Net domestic saving (excluding Federal saving)1
Net private domestic investment
-140 to-110
-90 to -50
-85 to -45
330 to 380
190 to 220
1 Defined for purposes of Public Law 100-418 as the sum of private saving and the surpluses of State and local governments. AH series
are based on National Income and Product Accounts except for the merchandise trade balance and the current account
in the budget to reduce the deficit are expected to exert
downward pressure on interest rates and are not expected to have a substantial independent influence on
exchange rates.
Structural vs. Cyclical Deficit
The budget and the economy have reciprocal effects
on each other; the budget affects economic performance
in significant ways, while economic performance has
substantial impacts on the budget.
When there is slack in the economy, receipts are
lower than they would be if resources were fully employed, and outlays for unemployment-sensitive programs (such as unemployment compensation and food
stamps) are higher; hence the deficit is higher than
it would be at full employment. This component of the
deficit is called the cyclical deficit. The remaining deficit is called the "structural deficit." Changes in the
structural deficit give a better picture of the impact
of budget policy on the economy.
In recent years, outlays for deposit insurance (mainly
for resolving insolvencies in the savings and loan industry) have had substantial impacts on the actual deficit.
However, these outlays have little current impact on
economic performance, because the Federal liability for
S&L insolvencies occurred years ago. It has therefore
become customary to remove deposit insurance outlays
as well as the cyclical component from the structural
deficit. This results in the structural deficit shown in
the table below. The last two lines of the table indicate
the impact of the Administration's policy proposals on
the baseline structural deficit.
Sensitivity of the Budget to Economic
Assumptions
Both receipts and outlays are affected by changes
in economic conditions. This sensitivity seriously complicates budget planning because errors in economic assumptions lead to errors in the budget projections;
hence the usefulness of examining the implications of
multiple alternative assumptions.
Many of the budgetary effects of changes in economic
assumptions are fairly predictable, and a set of rules
of thumb embodying these relationships can aid in estimating how changes in the economic assumptions
would alter outlays, receipts, and the deficit. The final
table summarizes these rules of thumb.
Economic variables that affect the budget do not usually change independently of one another. Employment
and output tend to move together in the short run:
a higher rate of real GDP growth is associated with
declining unemployment, while weak or negative
growth is accompanied by rising unemployment. In the
long run, however, changes in the average rate of
CHANGES IN THE STRUCTURAL DEFICIT
(In billions of dollars)
1996
1997
Baseline deficit
Cyclical component
Deposit insurance
1993
309.7
66.8
2.8
301.6
51.6
7.5
300.8
36.3
-1.3
297.8
24.0
-13.3
346.8
16.8
-11.0
387.4
16.1
-7.4
Baseline structural deficit
Effect of policy proposals
240.1
12.2
242.5
-37.5
265.8
-54.1
287.1
-86.1
341.0
-132.8
378.7
-137.0
Proposed structural deficit
252.3
205.0
211.7
201.0
208.2
241.7
1994
1995
1998
8
growth of real GDP are mainly due to changes in the
rates of growth of productivity and labor supply, and
are not necessarily associated with changes in the average rate of unemployment. Inflation and interest rates
are also linked: a higher expected rate of inflation tends
to increase interest rates, while lower expected inflation
reduces rates. Changes in real GDP growth or inflation
have a much greater cumulative effect on the budget
over time if they are sustained for several years than
if they occur for only one year.
The table shows that if real GDP growth is lower
by one percentage point in calendar 1993 only and the
unemployment rate rises by one-half percentage point,
the 1993 deficit would increase by $6.3 billion. Receipts
would be lower by $5.7 billion, and 1993 outlays would
be higher by $0.6 billion, primarily for unemploymentsensitive programs. In 1994, receipts would decline further, by $12.7 billion, and outlays would increase by
$3.5 billion, raising the 1994 deficit by $16.2 billion
relative to the baseline. The budget effects would continue to grow slightly in later years. The larger deficit
is due to the level of real (and nominal) GDP being
permanently lower and unemployment higher, even
though the rate of real growth in calendar year 1994
and beyond is unchanged.
The budget effects are much larger if the real growth
rate is assumed to be one percentage point less in each
year, 1993-1998, while the unemployment rate is assumed to rise by one-half percentage point more in
each year. The levels of real and nominal GDP would
be below the base case by a cumulatively growing percentage. The deficit would be $118.7 billion higher than
under the base case by 1998.
The effects of slower productivity growth are shown
in a third example, where real growth is one percentage
point lower per year while the unemployment rate is
unchanged. In this case, the estimated budget effects
mount steadily over the years, but more slowly. The
effect on the deficit reaches $106.4 billion by 1998.
Joint changes in interest rates and inflation have
a smaller effect on the deficit than equal percentage
THE BUDGET FOR FISCAL YEAR 1994
point changes in real GDP growth because their effects
on receipts and outlays are substantially offsetting. An
example is the effect of a one percentage point higher
rate of inflation and one percentage point higher interest rates during calendar year 1993 only. In subsequent
years, the price level and nominal GDP would be one
percent higher than in the base case, but interest rates
return to their base levels. Outlays for 1993 rise by
$5.1 billion and receipts by $6.5 billion, for a decrease
of $1.4 billion in the 1993 deficit. In 1994, outlays
would be above the base by $12.7 billion, due in part
to lagged cost-of-living adjustments; receipts would rise
$13.6 billion above the base, however, resulting in a
$0.9 billion decrease in the deficit. In subsequent years,
the amounts added to receipts would be larger than
the additions to outlays.
If the rate of inflation and the level of interest rates
are higher by one percentage point in all years, the
price level and nominal GDP would rise by a cumulatively growing percentage above their base levels. In
this case, the effects on receipts and outlays mount
steadily in successive years, adding $71.2 billion to outlays and $84.1 billion to receipts in 1998, which reduces
the 1998 deficit by $12.9 billion.
The table also shows the interest rate and the inflation effects separately, and rules of thumb for the added
interest cost associated with higher or lower deficits
(increased or reduced borrowing).
The effects of changes in economic assumptions in
the opposite direction are approximately symmetric to
those shown in the table. The impact of a one percentage point lower rate of inflation or higher real growth
would be of about the same magnitude as the effects
shown in the table, but with the opposite sign.
These rules of thumb hold the income share composition of GDP constant. Because different income components are subject to different taxes and tax rates, estimates of total receipts can be affected significantly by
changing income shares with no change in total income.
These relationships are too complex to reduce to simple
rules, however.
9
SUMMARY INFORMATION: ECONOMIC PROJECTIONS
SENSITIVITY OF THE BUDGET TO ECONOMIC ASSUMPTIONS
(In billions of dollars)
Budget effect
1993
1994
1995
1996
1997
1998
-5.7
0.6
-12.7
3.5
-14.9
4.1
-15.1
5.4
-15.4
6.7
-15.8
8.5
6.3
16.2
19.1
20.5
22.1
24.3
-5.7
0.6
-18.7
4.8
-34.3
8.6
-50.7
14.4
-68.0
22.7
-86.2
32.6
6.3
23.5
43.0
65.2
90.7
118.7
-5.7
0.1
-18.8
0.8
-35.0
2.4
-52.6
5.1
-71.4
9.1
-91.2
15.2
5.8
19.6
37.4
57.7
80.4
106.4
6.5
5.1
13.6
12.7
14.1
10.3
13.5
8.8
14.2
8.1
14.9
8.1
Deficit increase (+)
Effects of a sustained 1 percentage point higher rate of inflation and interest rates during 1993-1998:
-1.4
-0.9
-3.7
-4.7
-6.1
-6.8
6.5
5.1
20.4
18.4
35.6
30.5
50.9
41.6
67.0
52.8
84.1
71.2
Deficit increase (+)
Effects of a sustained 1 percentage point higher interest rate during 1993-1998 (no inflation change):
-1.4
-2.0
-5.1
-9.3
-14.2
-12.9
0.7
4.7
1.8
14.7
2.4
21.8
2.7
27.3
2.9
32.7
3.2
45.9
4.0
12.9
19.4
24.5
29.8
42.6
5.8
0.4
18.6
3.7
33.2
8.7
48.2
14.3
64.1
20.1
80.9
25.3
-5.4
-14.9
-24.5
-33.8
-44.0
-55.5
1.1
5.1
5.7
6.3
6.8
7.3
Real Growth and Employment
Effects of 1 percent lower real GDP growth in calendar year 1993 only, including higher unemployment:1
Outlays
Deficit increase (+)
Effects of a sustained 1 percent lower annual real GDP growth rate during 1993-1998, including higher unemployment: 1
Deficit increase (+)
Effects of a sustained 1 percent lower annual real GDP growth rate during 1993-1998, with no change in unemployment:
Receipts
Outlays
Deficit increase (+)
Inflation and Interest Rates
Effects of 1 percentage point higher rate of inflation and interest rates during calendar year 1993 only:
Receipts
Deficit increase (+)
Effects of a sustained 1 percentage point higher rate of inflation during 1993-1998 (no interest rate change):
Deficit increase (+)
Interest Cost of Higher Federal Borrowing
Effect of $100 billion additional borrowing during 1993
1
The unemployment rate is assumed to be 0.5 percentage point higher per 1.0 percent shortfall in the level of real GDP.
FEDERAL RECEIPTS
Receipts (budget and off-budget) are taxes and other
collections from the public that result from the exercise
of the Government's sovereign or governmental powers.
The difference between receipts and outlays determines
the surplus or deficit.
receipts by a net $36.0 billion. Receipts are projected
to grow at an average annual rate of 5.2 percent between 1994 and 1998.
Composition of receipts.—The Federal tax system
will rely predominantly on income and payroll taxes
Growth in receipts.—Total receipts in 1994 are esti- in 1994, with these sources accounting for 91.5 percent
mated to be $1,251.3 billion, an increase of $105.6 bil- of receipts. The Federal tax system will continue to
lion relative to 1993. This increase is attributable in rely predominantly on these sources of receipts in 1998,
part to the first-year effect of the Administration's reve- but their combined share will fall slightly to 90.2 pernue proposals, which are estimated to increase 1994 cent.
RECEIPTS BY SOURCE: SUMMARY
(In billions of dollars)
1IsQSfZ
Q9 actual
Individual income taxes
Corporation income taxes
Social insurance taxes and contributions
On-budget
Off-budget
Excise taxes
Estate and gift taxes
Customs duties
Miscellaneous receipts
Total receipts
On-budget
Off-budget
Estimate
1993
1994
1995
1996
1997
476.0
100.3
413.7
(111.3)
(302.4)
45.6
11.1
17.4
26.5
515.3
106.3
426.8
(115.0)
(311.8)
47.6
12.6
19.2
17.9
560.0
120.3
465.0
(126.8)
(338.1)
51.4
12.7
21.3
20.6
589.8
125.4
491.6
(136.3)
(355.3)
62.3
13.7
22.3
22.6
627.3
133.8
517.6
(142.2)
(375.3)
72.6
14.8
23.2
23.5
653.2
140.1
537.7
(145,8)
(391.9)
80.9
15.8
24.2
24.3
680.3
140.7
560.0
(150.4)
(409.5)
82.7
16.8
25.2
25.0
1998
1,090.5
(788.0)
{302.4)
1,145.7
(833.9)
(311.8)
1,251.3
(913.1)
(338.1)
1,327.7
(972.3)
(355.3)
1,412.9
(1,037.5)
(375.3)
1,476.1
(1,084.3)
(391.9)
1,530.5
(1,121.0)
(409.5)
11
THE BUDGET FOR FISCAL YEAR 1994
12
REVENUE AND RECEIPTS PROPOSALS
(in billions of dollars)
1997
Revenue Raising Proposals:
Raise individual income taxes for upper incomes
Repeal HI taxable wage base1
Increase top corporation income tax rate on large corporations to 36%
Broad based energy tax1-2
Cap possessions tax credit (sec. 936) at 60% of compensation
Service industry non-compliance initiative
Modified substantial understatement penalty
Restrict deduction for business meals and entertainment to 50%
Reduce pension compensation cap
Mark to market for security dealers
Disallow moving deductions for meals and real-estate expenses
Extend 2.5 cent per gallon gas tax1
Extend 53% and 55% estate tax rate
Deny deduction for club dues
Prohibit double-dip related to FSLIC assistance
Deny lobbying deductions
Deny deduction for executive pay over $1 million
International tax provisions
Miscellaneous revenue raising provisions
Subtotal, revenue raising proposals
Investment/stimulus3
Total, net revenue proposals .
Other provisions affecting receipts:
IRS initiative
Commodity Futures Trading Commission fee ,
Harbor maintenance tax1
Inland waterway tax1
SEC registration fee
FDIC assessment fee (receipt effect)
General aviation registration fee
Federal pay raise (receipt effect)
Federal FTE levels (receipt effect)
Total, other provisions
Addendum:
Total, net revenue proposals
Total, other provisions
Tax 85% of social security benefits .
Corporate estimated tax rules
TOTAL, REVENUE AND RECEIPTS PROPOSALS
1.6
27.5
2.8
7.5
2.0
0.2
0.1
0.3
1.8
0.3
1.0
0.1
19.6
6.0
5.0
9.3
0.9
0.6
0.6
3.2
0.8
1.1
0.4
0.5
0.1
0.4
0.1
0.1
1.3
0.2
0.5
0.2
2.7
22.7
6.4
5.1
16.7
1.7
1.3
0.4
3.4
0.8
1.1
0.4
2.6
0.6
0.3
27.4
7.2
5.3
22.7
2.3
2.2
0.3
4.0
0.9
0.7
0.4
2.6
0.6
0.3
0.1
2.1
0.1
0.2
0.1
2.4
0.1
26.0
6.8
5.2
22.1
2.1
1.9
0.3
3.7
0.9
1.1
0.4
2.6
0.6
0.3
0.2
0.2
0.1
2.6
0.1
46.4
50.5
66.3
77.3
80.2
-6.0
-12.1
-12.4
-9.9
-9.3
-11.0
-3.2
34.3
38.2
56.3
68.0
69.2
-0.2
-0.1
0.1
0.1
0.1*
0.4
0.1*
0.5
0.1*
0.6
0.1*
0.1
0.1
0.2
0.1
0.3
0.1*
-0.2
-0.3
0.1
-0.3
0.3
0.1
0.1
0.1
-0.4
0.2
0.5
0.7
0.8
38.2
0.2
5.0
56.3
0.5
5.3
68.0
0.7
5.5
3.9
69.2
0.8
5;7
0.8
43.4
62.2
78.1
76.5
OA
0.6
0.2
0.1
0.1*
-0.1
-0.2
-3.2
-0.2
-3.4
34.3
17
0.2
0.2
0.2
2.7
0.1
*$50 mfflkxi or less.
1 Net of income tax offsets.
2 The impact of this proposal is offset for low-income families by increases in the low-income home energy assistance program and food stamps that are reflected elsewhere.
3 The estimates exclude the effect of fte earned income tax credit on outlays. The proposal is estimated to increase outlays by the following amounts: 1994, $0.3 billion; 1995, $3.4 biflkxi; 1996, $6.7 billion; 1997, $6.9 billion;
and 1998, $7.2 biiHon.
13
SUMMARY INFORMATION: FEDERALRESEARCHANDD
E
V
E
L
O
P
M
E
N
TEXPENDITURES
CHANGES IN RECEIPTS
(In billions of dollars)
Estimate
1993
1994
1995
1996
1997
1998
Receipts under tax rates and structure in effect January 1,1992 1
Enacted legislative changes:
Emergency Unemployment Compensation Extension
Unemployment Compensation Amendments of 1992
Energy Policy Ad of 1992
Social security (OASDI) taxable earnings base increases:
$55,500 to $57,600 on Jan. 1,1993
$57,600 to $59,700 on Jan. 1,1994
$59,700 to $61,500 on Jan. 1,1995
$61,500 to $63,900 on Jan. 1,1996
$63,900 to $66,300 on Jan. 1,1997
$66,300 to $68,700 on Jan. 1,1998
Medicare (HI) taxable earnings base increases:
$130,200 to $135,000 on Jan. 1,1993
$135,000 to $140,100 on Jan. 1,1994
$140,100 to $144,600 on Jan. 1, 1995
$144,600 to $150,300 on Jan. 1,1996
$150,300 to $156,300 on Jan. 1,1997
$156,300 to $161,700 on Jan. 1,1998
Proposed legislation
1,143.7
1,211.1
1,278.4
1,340.9
1,385.1
1,437.8
0.6
3.0
1.1
0.1
-0.1
1.1
-0.6
0.1
0.8
-0.1
0.9
0.6
—
—
0.7
2.1
0.7
2.3
2.1
0.6
2.6
2.4
1.9
0.9
Total, receipts under existing and proposed legislation
1
These estimates assume social security and medicare taxable earnings bases of $55,500 and $130,200, respectively, through 1996.
—
—
—
—
—
—
—
—
—
—
—
—
—
—
0.6
0.5
0.1
0.5
2.9
2.6
2.1
2.5
0.9
3.2
2.9
2.3
2.8
2.5
0.9
—
—
—-
—
—
—
—
—
—
—
—
—
—
—
-3.4
36.0
43.4
62.2
78.1
0.2
0.2
0.2
0.2
0.2
0.1
76.5
1,145.7
1,251.3
1,327.7
1,412.9
1,476.1
1,530.5
0.1
—
0.2
0.1
0.2
0.2
0.1
0.2
0.2
0.2
0.1
—
0.2
0.2
0.2
0.2
0.1
14
THE BUDGET FOR FISCAL YEAR 1994
RECEIPTS BY SOURCE
(In miHons of dofers)
Estimate
1992
1993
Federal funds:
Other
Refunds
Proposed legislation
Total Federal funds net individual income taxes
Total net individual income taxes
Corporation income taxes:
Federal funds:
Gross collections
Refunds
Proposed legislation
Total Federal funds net corporation income taxes
Trust funds:
Hazardous substance superfund
1993
1994
408,288
149,436
-81,750
423,477
168,654
-75,741
-1,075
443,061
172,494
-79,047
23,512
475,974
515,315
560,020
Wines
Special taxes in connection with liquor
occupations
Refunds
475,974
515,315
560,020
Total alcohol taxes
117,571
-17,680
380
125,577
-17,597
-2,327
132,318
-18,831
6,207
105,654
119,694
607
622
380
607
622
Total net corporation income taxes ....
100,270
106,261
120,316
Proposed legislation
Disability insurance (Off-budget)
Proposed legislation
Hospital insurance
Proposed legislation
Railroad retirement
Social Security equivalent accout
Rail pension fund
281,598
29,289
30,178
79J08
305,344
63
32,713
6
87,746
3,071
1,508
2,313
1,484
2,306
385,491
83,065
302,426
84,490
311,776
432,733
94,607
338,126
Unemployment insurance:
State taxes deposited in Treasury1 ...
Federal unemployment tax receipts1 .
Railroad unemployment tax receipts1
Railroad debt repayment1
17,605
5,608
136
61
19,933
5,661
67
107
21,809
5,635
18
107
Total unemployment insurance
23,410
25,768
27,569
4,683
4,686
Total employment taxes and contributions
On-budget.
Off-budget.
Other retirement contributions:
Federal employees' retirement—employee
contributions
Proposed legislation
Contributions for non-Federal employees2
Total other retirement contributions
Total social insurance taxes and contributions
On-budget
Off-budget
4,064
3,409
608
4,023
3,416
602
117
-229
120
-228
125
-227
8,011
7,973
7,939
Cigarette papers and tubes
Smokeless tobacco
Other
Refunds
4,970
47
2
30
9
-9
5,695
46
2
29
9
-9
5,720
46
2
29
9
-9
Total tobacco taxes
5,049
5,772
5,797
44
38
18
134
92
41
19
136
95
43
21
139
233
289
298
3,146
3,299
3,476
18
136
207
91
14
637
312
-522
19
143
212
101
14
886
390
-335
20
150
217
109
15
1,002
463
-235
4,039
4,729
5,217
4,504
5,376
3,518
2,606
21,836
24,138
25,373
12,209
874
257
3,314
620
11
-552
12,354
1,238
301
3,721
624
12,479
1,382
323
3,855
642
-432
-438
Total highway trust fund
16,733
17,806
18,245
Airport and airway:
Transportation of persons
Waybill tax
Tax on fuels
International departure tax
Refunds
4,012
249
167
231
-15
2,784
260
145
249
-14
4,967
279
185
267
-15
Manufacturers' excise taxes:
Firearms, shells, and cartridges
Pistols and revolvers
Bows and arrows
Gas guzzler tax
Total manufacturers' excise taxes
273,137
1,508
2,449
Miscellaneous excise taxes:
General and toll telephone and teletype
service
Wagering taxes, including occupational
taxes
Employee pension plans
Tax on foundations
Foreign insurance policies
Ship departure tax
Ozone depletion tax
Luxury tax
Refunds
Total miscellaneous excise taxes
-112
98
105
4,788
4,782
4,673
413,689
111,263
302,426
426,815
115,039
311,776
464,974
126,848
338,126
1994
4,114
3,395
614
Tobacco taxes:
Cigarettes
Total Trust funds net corporation income
taxes
Social insurance taxes and contributions
(trust funds):
Employment taxes and contributions:
Old-age and survivors insurance (Off-budg-
Excise taxes:
Federal funds:
Alcohol taxes:
Distilled spirits
Undistributed Federal tax deposits and
unapplied collections
Proposed legislation
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
Other
Refunds
15
SUMMARY INFORMATION: FEDERALRESEARCHANDD
E
V
E
L
O
P
M
E
N
TEXPENDITURES
RECEIPTS BY SOURCE-Continued
(In millions of dollars)
Source
4,645
3,424
5,683
271
626
70
285
633
82
818
295
118
843
234
33
294
649
94
26
856
157
150
152
Total trust fund excise taxes
23,733
23,490
25,999
Total excise taxes
45,569
47,628
51,372
11,143
12,594
12,204
475
11,143
12,594
12,679
16,797
563
18,603
589
17,359
19,192
21,292
121
153
148
55
22,920
207
13,833
292
16,121
63
Total airport and airway trust fund
Aquatic resources trust fund
Black lung disability insurance trust fund ....
Inland waterway trust fund
Proposed legislation
Hazardous substances response trust fund
Oil spill liability trust fund
Vaccine injury compensation fund
Leaking underground storage tank trust
fund
Estate and gift taxes:
Existing law
Proposed legislation
Total estate and gift taxes
Customs duties and fees:
Federal funds
Trust funds
Proposed legislation
Total customs duties and fees
Miscellaneous receipts:3
Miscellaneous taxes
Proposed legislation
United Mine Workers of America combined
benefit fund
Deposit of earnings, Federal Reserve System
Proposed legislation
Fees for permits and regulatory and judicial
services:
Immigration, passport, and consular fees ...
Patent and copyright fees
Registration and filing fees
.
Proposed legislation
293
552
606
17
449*
650
715
77
Coal mining reclamation fees
Miscellaneous fees for permits, licenses,
etc
Miscellaneous fees for regulatory and judicial services
Fees for legal and judicial services
Total fees for permits and regulatory
and judicial services
Fines, penalties, and forfeitures:
Other
Total fines, penalties, and forfeitures
Restitutions, reparations, and
under military occupation
Gifts and contributions
Refunds and recoveries
Total miscellaneous receipts
Total budget receipts
On-budget
Off-budget
MEMORANDUM
On-budget:
Federal funds
Trust funds
Interfund transactions
Total on-budget
Off-budget (trust funds)
Total
recoveries
241
242
2
18
278
53
380
50
1,419
1,778
1,872
1,794
1,872
1,794
12
106
8
14
105
-5
26,457
17,880
1,090,462
788,036
302,426
1,145,685
833,909
311,776
655,480
292,621
-160,064
697,536
313,258
-176,884
788,036
302,426
833,909
311,776
1,090,462
1,145,685
*$500 thousand or less.
1 Deposits by States are State payroll taxes that cover the benefit part of the program. Federal
unemployment tax receipts cover administrative costs at both the Federal and State level. Railroad
unemployment tax receipts cover both the benefits and administrative costs of the program for the railroads.
2 Represents employer and employee contributions to thei civil service retirement and disability fund for
covered employees of Government-sponsored, privately owned enterprises and the District of Columbia municipal
' 3 Includes both Federal and trust funds. Trust fund amounts in miscellaneous receipts are: 1992, $253 million;
1993, $502 million; and 1994, $589 million.
USER FEES AND OTHER COLLECTIONS
Income to the Government arising from the exercise
of its sovereign powers (mainly, but not exclusively,
taxes) is classified as governmental receipts. Income
from the public resulting from voluntary, business-like
transactions is classified as offsetting collections, which
are offset against outlays. This section discusses offsetting collections from the public, particularly the Administration's user fee proposals.
As shown in the following table, total offsetting collections from the public, including those proposed by the
Administration (but excluding the collections of the offbudget Postal Service) are estimated to be $168.9 billion
in 1994.
The budget contains a variety of user fee and other
offsetting collections proposals that would yield $1.3
billion in 1994 and $25.8 billion over the years 1994
through 1998. Administration proposals establish or increase fees in order to recover more of the costs of
providing Government services. Descriptions of the proposals can be found in A Vision of Change For America.
The "Proposed User Fees and Offsetting Collections"
table splits the proposals between discretionary and
mandatory categories, indicating which of the Budget
Enforcement Act (BEA) requirements apply.
The table "Offsetting Receipts by Type" itemizes all
receipts on the outlay side of the budget not credited
to appropriation accounts. The presentation includes
payments from one part of the government to another,
called intragovernmental transactions, as well as collections from the public. In total, offsetting receipts are
estimated at $286.6 billion in 1994.
OFFSETTING COLLECTIONS FROM THE PUBLIC
(In millions of dollars)
Collections deposited in receipt accounts:
Defense cooperation
Medicare premiums
Military assistance trust fund property sales
Outer Continental Shelf payments, naval petroleum reserve lease and other undistributed offsetting receipts
Sale of property and services, interest income, and all other collections deposited in receipt accounts
Subtotal, collections from the public deposited in receipt accounts
Collections credited to appropriation accounts:
Postal Service stamp sales and other collections
Deposit insurance funds
*
Tennessee Valley Authority and Power Administration collections
Commodity Credit Corporation loan repayments and other collections
Other loan repayments
Loan guaranty and other insurance premiums, interest income, and all other collections credited
to appropriation accounts
Subtotal, collections from the public credited to appropriation accounts
Offsetting collections from the public
Offsetting collections from the public excluding off-budget Postal Service collections
4,921
13,232
12,182
25
15,099
12,720
17,340
12,790
2,498
2,299
3,607
14,847
15,471
17,120
47,680
45,614
50,857
45,158
65,569
8,259
8,317
9,940
46,078
49,179
8,188
9,184
9,196
48,177
43,532
9,228
9,463
8,219
45,069
45,210
47,583
182,312
229,992
184,834
167,035
212,649
166,571
166,201
217,058
168,881
17
18
THE BUDGET FOR FISCAL YEAR 1994
PROPOSED USER FEES AND OFFSETTING COLLECTIONS
(In millions of dollars)
Estimate
1994
Outlay offsets:
Mandatory:
Agriculture:
Increase grazing fees
Increase recreation fees
Increase assessments on "non-program" crops
Corps of Engineers:
Increase recreation fees
Energy.
Reform Power Marketing Administration
Health and Human Services:
Maintain 1995 ratio of medicare premium collections to program outlays
with a 27% ceiling
Charge fees for state SSI administration
Interior.
Increase grazing fees
Implement a Federal irrigation water surcharge
Increase recreation fees
Permanently extend hardrock mining holding fees
Institute hardrock royalties and increase net receipt sharing
Treasury:
Permanently extend U.S. Customs merchandise and passenger processing fees
Transportation:
Extend tonnage fees
Veterans Affairs:
Restore 1:9 contribution ratio for Gl Bill benefits
Increase home loan guarantee fees
Permanently extend Veterans medical care costs recovery
Federal Communications Commission:
Spectrum auction
Federal Deposit Insurance Corporation:
Institute examination fees for State-chartered banks
Subtotal, mandatory
Discretionary:
Agriculture:
Reduce Rural Electrification Administration 5-percent loan subsidies
Expand certain agriculture user fees
Institute fees for meat/poultry inspections during overtime
Commerce:
Increase patent and trademark fees
Energy:
Assess foreign customers decommissioning and decontamination fee ....
Health and Human Services:
Increase FDA user fees
Treasury:
Establish a Bureau of Alcohol, Tobacco and Firearms user fee
Securities and Exchange Commission:
Increase registration fees
Subtotal, discretionary
Total outlay offsets
Revenues:
Mandatory:
Transportation:
Increase registration fee on general aviation aircraft
Commodity Futures Trading Commission:
Institute transaction fees
Securities and Exchange Commission:
Increase registration fees
Subtotal, mandatory revenues
Total user fees and offsetting collections
1905
1996
1997
1998
-2
-10
-5
-11
-8
-12
-450
-13
-13
-450
-19
-13
-450
-18
-18
-18
-18
-18
-77
-77
-78
12
-57
9
-122
13
-192
-2,130
-200
-4,549
-207
-14
-10
-29
-80
-40
-23
-10
-33
-80
-105
-36
-10
-39
-80
-173
-58
-15
-44
-80
-322
-77
-15
-49
-80
-324
-572
-588
-607
-69
-74
-79
-80
-188
-326
-87
-190
-391
-93
-187
-407
-101
-186
-425
-374
-1,623
-2,083
-340
-69
-189
-46
-196
-217
-248
-283
-320
-748
-1,583
-4,262
-7,135
-7,939
-47
-14
-104
-97
-14
-104
-127
-15
-104
-162
-16
-104
-185
-16
-104
-109
-113
-118
-10
-10
-11
-11
-12
-167
-230
-285
-336
-387
-5
-5
-5
-5
-5
-47
-50
-52
-54
-56
-394
-1,142
-510
-2,093
-710
-4,972
-803
-7,938
-885
-8,822
-18
-31
-44
-58
-60
-55
-57
-60
-63
-66
-59
-63
-67
-71
-74
-132
-1,274
-151
-2,244
-171
-5,143
-192
-8,130
-200
-9,022
19
SUMMARY INFORMATION: USER FEES AND OTHER COLLECTIONS
OFFSETTING RECEIPTS BY TYPE
(In millions of dollars)
Type
Estimate
1992
actual
1993
Type
1994
INTRAGOVERNMENTAL TRANSACTIONS
Intrabudgetary transactions:
Federal intrafund transactions:
Distributed by agency:
Interest from the Federal Financing Bank
Interest on Government capital in enterprises
Other
Total Federal intrafunds
Trust intrafund transactions:
Distributed by agency
Total intrafund transactions
Interfund transactions:
Distributed by agency:
Federal fund payments to trust funds:
Contributions to insurance programs:
Military retirement fund
Supplementary medical insurance
Hospital insurance
Railroad social security equivalent fund
Rail industry pension fund
Civilian supplementary retirement contributions
Unemployment insurance
National separation liability
Other
Miscellaneous payments:
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
14,716
11,490
10,545
3,075
826
2,304
671
2,232
839
18,617
14,465
13,616
1
1
1
18,618
14,466
13,617
11,169
38,684
706
2,959
196
12,273
43,760
485
3,081
4
12,949
44,257
2,368
3,099
205
19,425
2,188
390
442
20,185
13,093
112
1,402
20,184
2,902
47
597
570
736
590
76,729
95,131
87,199
2,763
268
604
2,914
325
615
2,912
329
624
3,635
3,854
3,865
80,364
98,985
91,064
Undistributed by agency:
Employer share, employee retirement (onbudget):
Civil service retirement and disability insurance
Hospital insurance (contribution as employer)1
Military retirement fund
Other Federal employees retirement
7,211
7,675
7,671
1,886
16,314
95
1,909
13,374
107
1,949
12,544
114
Total employer share, employee retirement (on-budget)
25,507
23,065
22,279
6,166
5,963
6,101
23,637
6,373
26,967
Total payments by on-budget accounts to
off-budget accounts
35,905
39,302
Payments by off-budget accounts to on-budget
accounts:
Intrafund transactions from off-budget accounts:
Distributed by agency:
Payments to railroad retirement2
3,206
3,445
Total Intrafund transactions from off-budget accounts
3,206
3,445
438
4,735
451
4,978
Interfund transactions from off-budget accounts:
Distributed by agency:
Undistributed by agency:
Employer contributions to FHI
Retirement contributions
Total payments by off-budget accounts to
on-budget accounts
8,380
8,874
Total intragovernmental transactions ...
222,967
239,527
371
275
713
804
470
683
564
1,144
2,358
2,667
5
83
8
7
82
12
95
100
920
933
1,065
503
705
113
1,144
435
772
4
57
2,386
2,412
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
Interest received by on-budget trust funds ...
54,193
54,834
56,604
Total interfund transactions undistributed
by agency
79,700
77,899
78,883
Total interfund transactions
160,064
176,884
169,947
Total intrabudgetary transactions
178,682
191,351
183,564
Payments by on-budget accounts to off-budget
accounts:
interfund transactions:
Distributed by agency:
Federal fund payments to trust funds:
Old-age, survivors, and disability insurance
Undistributed by agency:
Employer share, employee retirement (offbudget)
Interest received by off-budget trust funds
Rents:
Rent and bonuses from land leases, etc
Rent of land and other real property
Rent of equipment and other personal property
Total rents
ies
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
20
THE BUDGET FOR FISCAL YEAR 1994
OFFSETTING RECEIPTS BY TYPE-Continued
(In millions of dollars)
Type
Fees and other charges for services and special benefits:
Medicare premiums and other charges (trust
funds)
Nuclear waste disposal revenues
Veterans life insurance (trust funds)
Other3
Total fees and other charges
Type
1,415
1,331
Total proprietary receipts from the public
distributed by agency
38,327
41,088
155
2,343
156
2,143
Miscellaneous receipt accounts3
13,232
567
421
1,522
15,099
417
375
1,872
17,340
391
320
2,058
15,743
17,762
20,110
48
51
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
Sale of Government property:
Sale of land and other real property3
Sale of equipment and other personal property:
Military assistance program sales (trust
funds)
Sale of scrap and salvage material
12,182
3
12,720
12,790
Total proprietary receipts from the public
undistributed by agency
2,498
2,299
Total sale of Government property
12,190
12,768
12,841
Total proprietary receipts from the
public4
40,825
43,387
4,921
1,934
25
2,201
6,855
270,647
2,227
285,141
Realization upon loans and investments:
Dollar repayments of loans, Agency for International Development
Foreign military credit sales
Negative loan subsidies
Downward reestimates of subsidies
Dollar conversion of foreign currency
Repayment of loans to United Kingdom
Other3
OFFSETTING GOVERNMENTAL RECEIPTS
450
374
263
25
98
475
Total realization upon loans and investments
Recoveries and
refunds3
1,536
381
414
289
205
16
100
152
366
427
482
1,557
1,563
1,558
1,760
17
102
170
Defense cooperation.
Other
Total offsetting governmental receipts
Total offsetting receipts
•$500 thousand or less.
11ncludes provision for covered Federal civilian employees and military personnel.
2 Interchange receipts between the social security and fsilroad retirement funds place the social security funds
in the same position they would have been if there were no separate railroad retirement system.
3 Includes both Federal funds and trust funds.
4 Consists of:
1992
1993
1994
actual
estimate estimate
Federal funds .
Trust funds
Off-budget
13,500
27,324
13,546
29,84t
16,499
31,883
TRUST FUNDS AND FEDERAL FUNDS
The budget consists of two major groups of funds:
Federal funds and trust funds.
The Federal funds group comprises the larger part
of the budget and includes all transactions not classified by law as being in trust funds. The main component of the Federal funds group is the general fund,
which is used for the general purposes of Government
rather than being restricted by law to a specific program. It consists of all receipts not earmarked by law
to finance other funds, including virtually all income
taxes and many excise taxes, and all outlays financed
by these receipts and by general Treasury borrowing.
The Federal funds group also includes special funds
and revolving funds. Special funds are financed by earmarked receipts. Where the law requires that Federal
fund receipts from a specified source be earmarked to
finance a particular program, such as the license fees
deposited into the land and water conservation fund,
the receipts and associated outlays are recorded in special fund receipt and expenditure accounts. As a general
rule, special fund receipts must be appropriated before
they can be obligated and payments made.
Revolving funds conduct continuing cycles of business-like activity. They charge for the sale of products
or services and use the proceeds to finance their spending. The proceeds are recorded as offsets (reductions)
to spending within the fund that makes the expenditure. These collections generally are available automatically for obligation. There are two classes of revolving
funds. Public enterprise funds, such as the Postal Service, conduct business-like operations mainly with the
public. Intragovernmental funds, such as the Federal
Buildings Fund, conduct business-like operations mainly within and between Government agencies.
Trust funds consist primarily of funds that are designated by law as trust funds. They are usually financed by earmarked receipts. The larger trust funds
finance social insurance and other payments for individuals, such as social security, medicare, Federal employees retirement, and unemployment compensation. Other
major trust funds finance highway construction and airport and airway development. Trust funds also include
a few small funds established to carry out the stipulations of trust agreements where the Government is the
fiduciary.
The Federal budget meaning of the term "trust" differs significantly from its private sector meaning. In
the private sector, the beneficiary owns the trust's assets, and the assets are managed by trustees who act
in a fiduciary capacity on behalf of the beneficiary.
In contrast, the Federal Government owns the assets
of most Federal trust funds, and it can raise or lower
future trust fund collections and payments by enacting
changes to existing law.
A trust fund must use its receipts for the purposes
designated by law, but it is not required to spend them
all in the same period they are collected. A surplus
of receipts over outlays adds to the trust fund's balances, which are available to finance future expenditures. The balances are generally invested, by law, in
Treasury debt securities. As a result, any net cash inflow from the public to the trust funds decreases the
Treasury's need to borrow from the public in order to
finance the Federal funds deficit.
Income and Outgo by Fund Group
The following table shows income, outgo, and surplus
or deficit by fund group. The estimates assume enactment of the President's budget proposals. Income consists mostly of governmental receipts (primarily taxes).
It also includes proprietary receipts (derived from business-like transactions with the public) and interfund
collections (receipts by one fund of payments from a
fund in the other fund group) that are deposited in
receipt accounts. Outgo consists of payments made to
the public and interfund payments.
Income and outgo exclude transactions between funds
within the same fund group. These intrafund transactions must be subtracted when the income and outgo
for all funds within a fund group are added together,
so that the totals for each fund group record only transactions with the public or with the other fund group.
Income also excludes collections that are offset, by law,
against the outlays of an expenditure account. Instead,
such collections offset (reduce) outgo of the receiving
fund group. For example, the Federal Employees Health
Benefits (FEHB) Fund collects health insurance premiums paid by Federal agencies. These are recorded
as offsets to outlays within the FEHB account, thereby
reducing FEHB outgo. It would be correct conceptually
to include these as income, but the total amount of
such collections is not tabulated separately at present.
The table also shows offsetting receipts, which must
be deducted from the sum of Federal fund and trust
fund income and the sum of Federal fund and trust
fund outgo in order to derive unified budget receipts
and outlays. Receipts resulting from voluntary business-like transactions with the public are income for
a fund group if they are not offset by law within an
expenditure account. However they are offset against
outgo in deriving outlays for the unified budget. In
this way, unified budget receipts measure only the
amount of collections raised by the Government in its
sovereign capacity; similarly, unified budget outlays
measure only the amount of resources allocated by the
Government in a non-market capacity.
21
22
THE BUDGET FOR FISCAL YEAR 1994
RECEIPTS, OUTLAYS, AND SURPLUS OR DEFICIT BY FUND GROUP
(In billions of dollars)
Estimate
1992
actud
1993
1994
1995
1996
1997
1996
672.2
3.6
709.5
3.9
777.4
3.9
827.0
4.0
884.5
4.2
929.8
4.5
961.6
4.6
675.8
713.3
781.3
831.0
888.7
934.2
966.2
465.9
481.8
524.7
554.4
585.4
609.3
635.3
77.8
119.7
81.8
136.0
86.1
128.5
91.5
135.5
97.3
142.5
103.9
155.7
111.0
164.5
663.5
-248.8
699.6
-267.2
739.4
-269.4
781.4
-284.7
825.2
-301.0
868.8
-326.9
910.8
-346.4
Total, unified budget receipts
Outlays:
Federal funds cash outgo
Trust funds cash outgo
Offsetting receipts
1,090.5
1,145.7
1,251.3
1,327.7
1,412.9
1,476.1
1,530.5
1,062.3
567.4
-248.8
1,127.5
607.3
-267.2
1,148.7
636.0
-269.4
1,189.8
669.2
-284.7
1,219.8
705.8
-301.0
1,271.4
745.6
-326.9
1,340.5
786.9
-346.4
Total, unified budget outlays
Surplus or deficit ( - ) :
Federal funds
Trust funds
1,380.9
1,467.6
1,515.3
1,574.4
1,624.6
1,690.1
1,781.0
-386.4
96.0
-414.2
92.3
-367.4
103.4
-358.8
112.1
-331.1
119.3
-337.2
123.2
-374.3
123.9
-290.4
-322.0
-264.1
-246.7
-211.7
-214.0
-250.4
Receipts:
Federal funds cash income:
From the public
From trust funds
Total, Federal funds cash income
Trust funds cash income:
From the public
From Federal funds:
Interest
Other
Total, trust funds cash income
Offsetting receipts
Total, unified surplus/deficit (-)
Receipts resulting from transactions between fund
groups also constitute income for a fund group, but
they are offset against interfund payments in the unified budget. In this way, unified budget receipts and
outlays record only the Government's net transactions
with the public.
Contribution to the Federal Deficit
Much attention has focused recently on trust fund
surpluses, Federal fund deficits, and the contribution
of each to the unified deficit. Over the past three decades, growing trust fund surpluses have offset a major
part of the large and growing Federal fund deficits.
As shown in the bottom of the above table, this pattern
is expected to continue for several years. It has led
to the charge that the unified deficit is solely a Federal
funds problem.
A different picture emerges if the analysis excludes
transactions between fund groups. The unified budget
deficit measures the Government's net transactions
with the public. In contrast, the surplus or deficit for
each fund group includes the effect of its transactions
with the other fund group (interfund transactions) as
well as its transactions with the public. Interfund
transactions affect the bottom line of both fund groups,
but they have no net impact on the unified deficit.
For example, Federal fund payments to trust funds increase both the Federal fund deficit and the trust fund
surplus, but the increase in one is offset by the increase
in the other, and the unified deficit is unchanged. If
interfund transactions are excluded, the trust fund surplus becomes a deficit and the Federal funds deficit
becomes much smaller.
In 1992, for example, the trust fund surplus amounted to $96 billion, and the Federal fund deficit was $386
billion. Both figures include the effects of $194 billion
of net payments from Federal funds to trust funds.
On the basis of transactions with the public, the trust
fund group experienced a $98 billion deficit, and the
Federal fund deficit was $193 billion. These amounts
are expected to converge in 1996. On this basis, therefore, both fund groups can be said to be contributing
to the unified deficit.
However, transactions with the public may not be
the best basis for identifying the source of the unified
deficit. This is because many interfund payments appropriately allocate the costs of Federal activities to the
fund group that incurs and controls the costs. In principle, these costs should be financed by each fund
group's receipts. To the extent they are not, the deficit
ultimately is higher. Including these interfund payments therefore may provide a more reasonable measure of the contribution of each fund group to the overall
deficit.
Payments by the Government to the various Federal
employee trust funds for retirement and other benefits
earned by Federal employees fall into this category.
These payments by the Government as an employer
allow total employee compensation to be charged to the
Federal fund programs that employ Federal workers,
or to the general fund. The costs of these benefits do
not show up as payments to the public for many years,
and the eventual payments to the public are recorded
as trust fund outlays. But since the eventual payments
result from commitments made in the course of carrying out past Federal fund activities, their impact on
23
SUMMARY INFORMATION: TRUST FUNDS AND FEDERAL FUNDS
the unified deficit should be attributed to the Federal
funds group. The interfund payments made currently
for these purposes are a reasonable, though imperfect,
measure of the amount that could be attributed to Federal funds. In 1992, interfund payments for Federal
employee retirement alone were almost $59 billion.
Interest payments on trust fund investments in
Treasury debt are another example of interfund payments that appropriately allocate costs and thus the
responsibility for the unified deficit. These are the largest interfund payments, comprising about two-fifths of
the total. In 1992 trust fund interest income was $78
billion, and it is expected to grow to $111 billion by
1998. These payments add equally to the trust fund
surplus and the Federal fund deficit. As shown in the
top of the table entitled "Surplus or Deficit by Fund
Group", by 1998 the trust fund surplus is nearly eliminated if interfund interest transactions are excluded,
and the Federal fund deficit is reduced substantially.
Interfund interest payments are appropriate charges
for the borrowing of accumulated trust fund surpluses
to finance Federal fund expenditures. The Federal
funds borrow from the trust funds to finance current
expenditures, and the trust funds are paid interest in
recognition of the time value of money to both the borrower and the lender. If permitted by law, the trust
fund surpluses could have been invested outside the
Government. In that case, the Federal funds would
have borrowed more from the public. Trust fund interest collections from the public would have been higher,
as would Federal fund interest payments to the public.
As a result, both the trust funds surplus and the Federal funds deficit would have been greater than current
amounts, measured on the basis of transactions with
the public. But it would not mean that trust funds
were any less responsible—or Federal funds more responsible—for the unified deficit.
There are other interfund payments that appropriately allocate costs and therefore should also be included in assigning responsibility for the unified deficit.
On the other hand, Federal law sometimes requires
interfund payments to be made by a fund group that
does not incur or control the costs. Because fund accounting reflects these legal requirements, some
interfund payments do not indicate the ultimate responsibility for Federal spending and the deficit. Instead,
they cause the impact on the deficit of the fund group
making the payment to be overstated and the impact
of the fund group receiving the payment to be understated.
The principal payment of this type is the general
fund payment to the Federal Supplementary Medical
Insurance (SMI) Trust Fund. This payment was about
$39 billion in 1992, and it funded about three-quarters
of SMI expenditures. Unlike Federal fund payments
to trust funds for employee retirement and for interest,
these are not payments for services provided by the
SMI trust fund to Federal funds. Instead, they are Federal fund subsidies that finance the bulk of the trust
fund's spending. Therefore, the effect of SMI expenditures on the unified deficit should be attributed to the
trust funds group. The budget, instead, shows most
of the impact as an addition to the Federal funds deficit.
Fund group income and outgo could be adjusted for
these anomalies. However, even though the trust funds
would still have a very large surplus after the adjustment, they would not be absolved from any responsibility for the unified deficit. Both Federal fund and trust
fund expenditures have to be financed by the same
revenue source—the American people. Over the past
three decades, total receipts have been, on average, between 18 and 19 percent of gross domestic product.
If this is the politically acceptable level of total Federal
taxes, then total spending must be kept to that level
in order to avoid a deficit. The spending restraint could
be applied to Federal fund programs or to trust fund
spending. The latter could not only lead to a balanced
unified budget, it would also make it possible to reduce
the Federal funds deficit by reducing trust fund receipts
and raising Federal fund receipts without exceeding the
politically acceptable limit on total taxes. In that sense,
both fund groups are responsible for the unified deficit.
Income, Outgo, and Balances of Trust Funds
The table "Income, Outgo, and Balances of Trust
Funds" shows the trust funds balance at the start of
each year, income and outgo during the year, and the
end of year balance. Income and outgo are divided between transactions with the public and transactions
with Federal funds. Receipts from Federal funds are
divided between interest and other interfund receipts.
SURPLUS OR DEFICIT BY FUND GROUP
(In billions of dollars)
Surplus or deficit ( - ) excluding interest:
Federal funds
Trust funds
Net interfund interest receipts/payments ( - ) :
Federal funds
Trust funds
Surplus or deficit ( - ) including interest:
Federal funds
Trust funds
Estimate
1992
actual
1993
1994
1995
1996
1997
19d8
-308.6
18.2
-332.4
10.5
-281.3
17.2
-267.4
20.7
-233.8
22.1
-233.3
19.3
-263.3
12.8
-77.8
77.8
-81.8
81.8
-86.1
86.1
-91.5
91.5
-97.3
97.3
-103.9
103.9
-111.0
111.0
-386.4
96.0
-414.2
92.3
-367.4
103.4
-358.8
112.1
-331.1
119.3
-337.2
123.2
-374.3
123.9
24
THE BUDGET FOR FISCAL YEAR 1994
INCOME, OUTGO, AND BALANCES OF TRUST FUNDS GROUP
(In billions of dollars)
Estimate
1982
actual
1993
1994
1995
1996
1997
1996
876.2
972.3
1,064.4
1,167.9
1,280.0
1,399.5
1,522.5
438.6
27.3
452.0
29.8
492.8
31.9
520.4
34.0
550.3
35.2
571.2
38.0
594.4
40.9
77.8
119.7
81.8
136.0
86.1
128.5
91.5
135.5
97.3
142.5
103.9
155.7
111.0
164.5
Subtotal, income
Outgo:
To the public
Interfund payments
663.4
699.6
739.4
781.4
825.2
868.8
910.8
563.8
3.6
603.5
3.9
632.1
4.0
665.2
4.2
701.6
4.4
741.2
4.7
782.3
4.8
Subtotal, outgo
Change in fund balance:
Surplus or deficit (-):
Excluding interest
Interest
567.4
607.3
636.1
669.4
706.0
745.8
787.2
18.2
77.8
10.5
81.8
17.2
86.1
20.7
91.5
22.1
97.3
19.2
103.9
12.7
111.0
Subtotal, surplus or deficit (-)
Adjustments:
Transfers/lapses (net)
Other adjustments
96.0
92.3
103.4
112.1
119.3
123.1
123.8
0.7
0.4
-0.1
-0.1
Total, change in fund balance
97.1
92.1
103.4
112.1
119.3
123.1
123.8
973.3
1,064.4
1,167.8
1,280.0
1,399.3
1,522.6
1,646.3
Balance, start of year
Income:
Governmental receipts
Proprietary receipts
Interfund receipts:
Interest
Other
Balance, end of year
Total Trust Funds
The trust funds group is expected to have large and
growing surpluses over the projection period. As a consequence, trust fund balances will grow substantially,
as they have over the past decade. The size of the
anticipated balances is unprecedented, and it results
mainly from relatively recent changes in the way some
trust funds are financed.
Until the 1980s, most trust funds operated on a payas-you-go basis. Taxes and user fees were set at levels
high enough to finance benefits and administrative expenses and to maintain prudent reserves, generally defined as being equal to one year's expenditures. As a
result, trust fund balances tended to grow at about
the same rate as their annual expenditures.
Pay-as-you-go financing was replaced in the 1980s
by full or partial accrual funding for some of the larger
trust funds. In order to partially prefund the "babyboomers" social security benefits, the Social Security
Amendments of 1983 raised payroll taxes above the
levels necessary to finance current expenditures. In
1985 a new system was set up to finance military retirement benefits on a full accrual basis. In 1986 full
accrual funding of retirement benefits was mandated
for Federal civilian employees hired after December 31,
1983. The latter two changes require Federal agencies
to make annual payments to the Federal employees'
retirement trust funds in an amount equal to the
present value of the retirement benefits earned by employees in that year. Since these trust funds will not
pay retirement benefits to current employees for many
years, they will accumulate substantial balances over
time.
Primarily because of these changes, but also because
of the impact of real growth and inflation, trust fund
balances grew from $205 billion at the end of 1982
to $973 billion at the end of 1992. The balances are
expected to grow to $1.6 trillion by the end of 1998.
Almost all of these balances are invested in Treasury
debt and earn interest. Therefore, they effectively represent the value, in current dollars, of taxes and user
fees that have been paid in advance for future benefits
and services.
In an accounting sense, these balances are available
to finance future benefit payments and other trust fund
expenditures. However, from an economic standpoint,
the Government is not able to prefund benefits merely
by accumulating trust fund balances. That can be accomplished only by simultaneously running trust fund
surpluses and reducing the unified deficit below what
it would otherwise have been by the amount of the
trust fund surplus. This would reduce Federal borrowing by the amount of the trust funds surplus, which,
in turn, would increase the amount of savings available
to finance investments. If the additional investment increased the rate of productivity growth, future incomes
and wealth would be expanded. As a result, when the
trust funds draw down their investments in Treasury
debt to pay future benefits, the burden on future workers of redeeming this debt would be reduced.
The fact of growing balances over the five-year budget
horizon should not be interpreted to mean that all trust
25
SUMMARY INFORMATION: TRUST FUNDS AND FEDERAL FUNDS
funds are financially sound. For example, the balances
of the Medicare Hospital Insurance trust fund are expected to be depleted by the end of the decade unless
current policy is changed. Estimates of income, outgo,
and balances for 1992 through 1998 for the major trust
funds are shown in the following table.
INCOME, OUTGO, AND BALANCES OF MAJOR TRUST FUNDS
(In billions of dollars)
1992
actual
Estimate
1993
1994
1995
1996
1997
1998
15.3
15.2
13.1
13.0
13.1
13.4
14.0
4.6
3.4
5.7
6.2
6.7
7.2
7.7
1.3
1.1
0.9
0.8
0.8
0.8
0.8
Subtotal, income
Outgo:
To the public
Intrabudgetary payments
5.9
4.5
6.6
7.0
7.4
8.0
8.5
6.0
6.7
6.6
6.9
7.1
7.4
7.6
Subtotal, outgo
Change in fund balance:
Surplus or deficit (-):
Excluding interest
Interest
6.0
6.7
6.6
6.9
7.1
7.4
7.6
-1.3
1.3
-3.2
1.1
-0.9
0.9
-0.7
0.8
-0.4
0.8
-0.2
0.8
0.1
0.8
Subtotal, surplus or deficit (-)
Adjustments:
Transfers/lapses (net)
Other adjustments
-0.1
-2.2
-0.1
0.1
0.3
0.6
0.9
Total, change in fund balance
-0.1
-2.1
-0.1
0.1
0.3
0.6
0.9
15.2
13.1
13.0
13.1
13.4
14.0
14.8
264.1
290.6
318.9
347.3
376.7
406.1
435.8
4.8
4.8
4.7
4.6
4.5
4.5
4.4
24.3
31.5
25.6
33.0
27.0
33.3
28.1
34.5
29.3
34.7
30.4
35.4
31.5
36.3
Subtotal, income
Outgo:
To the public
Intrabudgetary payments
60.5
63.3
65.0
67.1
68.5
70.3
72.2
34.1
35.1
36.5
37.8
39.1
40.5
42.1
Subtotal, outgo
Change in fund balance:
Surplus or deficit (-):
Excluding interest
Interest
34.1
35.1
36.5
37.8
39.1
40.5
42.1
2.2
24.3
2.7
25.6j
1.5
27.0
1.3
28.1
0.1
29.3
-0.6
30.4
-1.4
31.5
Subtotal, surplus or deficit (-)
Adjustments:
Transfers/lapses (net)
Other adjustments
26.5
28.3
28.4
29.3
29.4
29.7
30.1
Total, change in fund balance
26.5
28.3
28.4
29.3
29.4
29.7
30.1
290.6
318.9
347.3
376.7
406.1
435.8
465.9
Balance, start of year
Income:
Governmental receipts
Proprietary receipts
Interfund receipts:
Interest
Other
Intrafund receipts
Airport and airway trust funds
Balance, end of year
Federal civilian employees retirement funds
Balance, start of year
Income:
Governmental receipts
Proprietary receipts
Interfund receipts:
Interest
Other
Intrafund receipts
Balance, end of year
26
THE BUDGET FOR FISCAL YEAR 1994
INCOME, OUTGO, AND BALANCES OF MAJOR TRUST FUNDS-Continued
(In billions of dollars)
1992
1993
Foreign military sales trust fund
Balance, start of year
Income:
Governmental receipts.
Proprietary receipts
Interfund receipts:
Interest
Other
Intrafund receipts
6.8
6.5
6.4
6.1
5.6
5.3
12.2
12.7
12.8
12.4
12.1
12.0
Subtotal, income ....
Outgo:
To the public
Intrabudgetary payments
12.2
12.7
12.8
12.4
12.1
12.0
12.4
12.9
13.1
12.9
12.4
12.0
Subtotal, outgo ...
Change in fund balance:
Surplus or deficit (-):
Excluding interest...
Interest
12.4
12.9
13.1
12.9
12.4
12.0
-0.3
-0.1
-0.3
-0.5
-0.3
-0.3
-0.1
-0.3
-0.5
-0.3
-0.3
-0.1
-0.3
-0.5
-0.3
6.5
6.4
6.1
5.6
5.3
5.3
267.8
318.5
364.7
425.0
490.7
566.1
302.4
311.8
338.1
355.3
375.3
391.9
23.6
12.3
27.0
12.3
29.5
13.3
32.9
14.0
36.7
14.7
41.4
15.4
Subtotal, income
Outgo:
To the public
Intrabudgetary payments .
338.3
351.1
380.9
402.2
426.7
448.7
284.1
3.5
301.1
3.8
316.8
3.9
332.0
4.0
347.1
4.2
362.9
4.4
Subtotal, outgo
Change in fund balance:
Surplus or deficit (-):
Excluding interest
Interest
287.6
304.9
320.7
336.1
351.3
367.3
27.1
23.6
19.2
27.0
30.7
29.5
33.2
32.9
38.7
36.7
40.0
41.4
50.7
46.2
60.3
75.4
81.4
50.7
46.2
60.3
75.4
81.4
318.5
364.7
425.0
566.1
647.5
Subtotal, surplus or deficit (-)
Adjustments:
Transfers/lapses (net)
Other adjustments
Total, change in fund balance .
Balance, end of year
Federal old-age, survivors & disability insurance trust funds
Balance, start of year
Income:
Governmental receipts
Proprietary receipts
Interfund receipts:
Interest
Other
Intrafund receipts
Subtotal, surplus or deficit (-)
Adjustments:
Transfers/lapses (net)
Other adjustments
Total, change in fund balance .
Balance, end of year
490.7
27
SUMMARY INFORMATION: TRUST FUNDS AND FEDERAL FUNDS
INCOME, OUTGO, AND BALANCES OF MAJOR TRUST FUNDS-Continued
(In billions of dollars)
Health insurance: HI trust fund
Balance, start of year
Income:
Governmental receipts.
Proprietary receipts
Interfund receipts:
Interest
Other
Intrafund receipts
109.9
120.6
125.6
131.5
136.8
136.0
79.1
0.5
80.7
0.6
90.8
0.7
99.0
0.8
104.7
0.8
109.4
0.9
10.1
3.0
10.7
2.8
10.8
4.8
11.0
7.9
11.0
8.2
10.5
8.5
Subtotal, income
Outgo:
To the public
Intrabudgetary payments .
92.7
94.7
107.1
118.7
124.7
129.3
82.0
91.5
101.2
113.4
125.5
136.2
Subtotal, outgo ...
Change in fund balance:
Surplus or deficit (-):
Excluding interest...
Interest
82.0
91.5
101.2
113.4
125.5
136.2
0.7
10.1
-7.5
10.7
-5.0
10.8
-5.7
11.0
-11.7
11.0
-17.4
10.5
10.7
3.2
5.9
5.3
-0.8
-6.8
Subtotal, surplus or deficit (-)
Adjustments:
Transfers/lapses (net)
Other adjustments
Total, change in fund balance .
Balance, end of year
Health insurance: SMI trust fund
Balance, start of year
Income:
Governmental receipts.
Proprietary receipts
Interfund receipts:
Interest
Other
Intrafund receipts
1.8
10.7
5.0
5.9
5.3
-0.8
-6.8
120.6
125.6
131.5
136.8
136.0
129.2
15.7
18.5
20.3
19.3
16.6
15.0
12.7
14.5
16.7
19.0
20.2
23.1
1.7
38.7
1.5
43.8
1.5
44.3
1.4
47.0
1.1
53.3
0.9
62.0
62.5
67.3
74.6
86.0
Subtotal, income
Outgo:
To the public.
Intrabudgetary payments
53.1
50.3
56.2
63.6
76.3
85.3
Subtotal, outgo
Change in fund balance:
Surplus or deficit (-):
Excluding interest
Interest
50.3
56.2
63.6
76.3
85.3
1.1
1.7
2.0
-2.6
1.5
1.5
-4.0
1.4
-2.8
1.1
-0.2
0.9
Subtotal, surplus or deficit (-)
Adjustments:
Transfers/lapses (net)
Other adjustments
2.9
3.6
-1.1
-2.6
-1.7
0.7
Total, change in fund balance .
2.9
1.8
-1.1
-2.6
-1.7
0.7
18.5
20.3
19.3
16.6
15.0
15.7
Balance, end of year
-1.8
28
THE BUDGET FOR FISCAL YEAR 1994
INCOME, OUTGO, AND BALANCES OF MAJOR TRUST FUNDS-Continued
(In billions of dollars)
Highway trust funds
1994
1995
1996
1997
Balance, start of year
Income:
Governmental receipts
Proprietary receipts
Interfund receipts:
Interest
Other
Intrafund receipts
20.4
22.0
20.9
18.0
14.7
14.5
16.7
17.8
18.2
18.6
22.2
22.6
1.7
1.5
1.3
1.0
0.7
0.7
Subtotal, Income
Outgo:
To the public
Intrabudgetary payments
18.4
19.3
19.5
19.5
22.9
23.3
16.8
20.4
22.8
22.8
23.1
24.4
Subtotal, Outgo
Change in fund balance:
Surplus or deficit:
Excluding interest
Interest
16.8
20.4
22.8
22.8
23.1
24.4
-0.1
1.7
-2.6
1.5
-4.6
1.3
-4.2
1.0
-0.9
0.7
-1.8
0.7
1.6
-1.1
-3.3
-3.3
-0.2
-1.1
-0.5
0.5
-0.1
1.6
-1.1
-3.3
-3.3
-0.2
-1.1
22.0
20.9
18.0
14.7
14.5
13.4
Balance, start of year
Income:
Governmental receipts
Proprietary receipts
Interfund receipts:
Interest
Other
Intrafund receipts
76.2
88.2
97.9
107.1
116.6
126.8
9.0
27.5
9.6
25.6
10.5
25.5
11.6
25.8
12.7
26.4
13.9
27.1
Subtotal, income
Outgo:
To the public
Intrabudgetary payments
36.5
35.3
36.0
37.4
39.1
41.0
24.5
25.6
26.8
27.9
28.9
30.0
Subtotal, outgo
Change in fund balance:
Surplus or deficit (-):
Excluding interest
Interest
24.5
25.6
26.8
27.9
28.9
30.0
3.0
9.0
0.1
9.6
-1.3
10.5
-2.0
11.6
-2.5
12.7
-2.9
13.9
Subtotal, surplus or deficit (-)
Adjustments:
Transfers/lapses (net)
Other adjustments
12.0
9.7
9.2
9.5
10.2
11.0
Total, change in fund balance
12.0
9.7
9.2
9.5
10.2
11.0
88.2
97.9
107.1
116.6
126.8
137.8
Subtotal, surplus or deficit
Adjustments:
Transfers/lapses (net)
Other adjustments
Total, Change in fund balance
Balance, end of year
Military retirement fund
Balance, end of year
29
SUMMARY INFORMATION: TRUST FUNDS AND FEDERAL FUNDS
INCOME, OUTGO, AND BALANCES OF MAJOR TRUST FUNDS-Continued
(In billions of dollars)
actual
1993
1994
1995
1996
1997
1998
Railroad retirement trust funds
Balance, start of year
Income:
Governmental receipts
Proprietary receipts
Interfund receipts:
Interest
Other
Intrafund receipts
10.7
12.8
13.2
13.8
14.3
14.7
15.2
4.0
3.9
3.9
3.8
3.7
3.7
3.6
1.1
3.2
3.2
0.9
3.1
3.4
0.9
3.3
3.6
0.9
3.4
3.7
0.9
3.6
3.8
0.9
3.7
4.0
1.0
3.8
4.0
Subtotal, income
Outgo:
To the public
Intrabudgetary payments
11.4
11.4
11.6
11.9
12.0
12.2
12.4
7.4
3.0
7.7
3.2
7.9
3.1
8.0
3.3
8.1
3.4
8.2
3.6
8.3
3.7
Subtotal, outgo
Change in fund balance:
Surplus or deficit (-):
Excluding interest
Interest
10.4
10.9
11.0
11.3
11.6
11.8
12.0
1.1
-0.4
0.9
-0.3
0.9
-0.4
0.9
-0.5
0.9
-0.5
0.9
-0.5
1.0
0.6
0.5
0.4
0.4
0.4
Subtotal, surplus or deficit (-)
Adjustments:
Transfers/lapses (net)
Other adjustments
1.0
0.5
1.2
-0.1
-0.1
Total, change in fund balance
2.1
0.4
0.6
0.5
0.4
0.4
0.4
12.8
13.2
13.8
14.3
14.7
15.2
15.6
47.8
34.7
35.8
37.5
41.3
45.8
49.2
23.3
0.1
25.7
0.1
27.5
0.2
28.8
0.2
29.3
0.2
28.3
0.3
27.9
0.3
3.6
2.2
2.4
13.1
2.1
2.9
2.1
0.6
2.3
0.6
2.5
0.5
2.8
0.5
29.2
41.2
32.6
31.7
32.4
31.6
31.5
41.3
40.2
30.9
27.9
27.9
28.2
28.6
41.3
40.2
30.9
27.9
27.9
28.2
28.6
-15.7
3.6
-0.1
2.4
-0.3
2.1
1.7
2.1
2.2
2.3
0.9
2.5
0.1
2.8
Subtotal, surplus or deficit (-)
Adjustments:
Transfers/lapses (net)
Other adjustments
-12.0
2.3
1.8
3.8
4.5
3.4
2.9
Total, change in fund balance
-12.0
2.3
1.8
3.8
4.5
3.4
2.9
35.7
35.8
37.5
41.3
45.8
49.2
52.1
Balance, end of year
Unemployment trust fund
Balance, start of year
Income:
Governmental receipts
Proprietary receipts
Interfund receipts:
Interest
Other
Intrafund receipts
Subtotal, income
Outgo:
To the public
Intrabudgetary payments
Subtotal, outgo
Change in fund balance:
Surplus or deficit (-):
Excluding interest
Interest
Balance, end of year
30
THE BUDGET FOR FISCAL YEAR 1994
INCOME, OUTGO, AND BALANCES OF MAJOR TRUST FUNDS-Continued
(In billions of dollars)
1992
actual
Estimate
1993
1994
1995
1996
1997
1996
12.7
12.9
13.2
13.4
13.7
13.8
13.8
0.4
0.4
0.3
0.3
0.3
0.3
0.3
1.1
1.1
1.1
1.2
1.0
1.0
1.0
Subtotal, income
Outgo:
To the public
Intrabudgetary payments
1.5
1.5
1.4
1.5
1.3
1.3
1.2
1.3
1.1
1.2
1.2
1.2
1.3
1.3
Subtotal, outgo
Change in fund balance:
Surplus or deficit (-):
Excluding interest
Interest
1.3
1.1
1.2
1.2
1.2
1.3
1.3
-0.9
1.1
-0.7
1.1
-0.9
1.1
-0.9
1.2
-0.9
1.0
-1.0
1.0
-1.0
1.0
Subtotal, surplus or deficit (-)
Adjustments:
Transfers/lapses (net)
Other adjustments
0.2
0.4
0.2
0.3
0.1
-0.1
Total, change in fund balance
0.2
0.4
0.2
0.3
0.1
-0.1
12.9
13.2
13.4
13.7
13.8
13.8
13.8
28.9
31.7
34.5
36.3
39.9
41.9
45.6
3.6
1.4
4.0
1.5
3.9
1.3
4.1
1.4
3.8
1.6
3.8
1.5
3.9
1.6
0.4
1.3
0.4
2.2
0.6
1.2
0.8
2.3
0.8
1.0
0.7
3.0
0.7
1.0
Subtotal, income
Outgo:
To the public
Intrabudgetary payments
6.8
8.2
6.9
8.5
7.2
9.0
7.2
3.6
0.3
4.9
0.4
4.9
0.4
4.5
0.4
4.8
0.4
4.9
0.5
5.2
0.5
Subtotal, outgo
Change in fund balance:
Surplus or deficit (-):
Excluding interest
Interest
4.0
5.3
5.2
4.9
5.2
5.3
5.7
2.4
0.4
2.4
0.4
1.1
0.6
2.8
0.8
1.2
0.8
3.0
0.7
0.8
0.7
Subtotal, surplus or deficit (-)
Adjustments:
Transfers/lapses (net)
Other adjustments
2.8
2.9
1.7
3.6
2.0
3.7
1.5
Total, change in fund balance
2.8
2.8
1.7
3.6
2.0
3.7
1.5
31.7
34.5
36.3
39.9
41.9
45.6
47.1
Veterans life insurance trust funds
Balance, start of year
Income:
Governmental receipts
Proprietary receipts
Interfund receipts:
Interest
Other
Intrafund receipts
Balance, end of year
Balance, start of year
Income:
Governmental receipts
Proprietary receipts
Interfund receipts:
Interest
Other
Intrafund receipts
Balance, end of year
Other trust funds
-0.1
FEDERAL BORROWING AND DEBT
Debt is the most explicit and legally binding obligation of the Federal Government. At the end of 1992
the Government owed $2,998.6 billion of principal to
the people who had loaned it the money to pay for
past deficits. The gross Federal debt, including the
amount held by trust funds and other Government accounts, was $4,002.7 billion. This year the Government
is estimated to pay about $213 billion of interest to
the public on its debt.
Debt held by the public and gross Federal
debt.—The Federal Government issues debt for two
principal purposes. First, it borrows from the public
in order to finance the Federal deficit. Second, it issues
debt to Government accounts, primarily trust funds,
that accumulate surpluses. By law, most trust fund
surpluses must be invested in Federal securities. The
gross Federal debt is thus defined to consist of both
the debt held by the public and the debt held by Government accounts. Nearly all the Federal debt has been
issued by the Treasury and is formally called "public
debt," but a small portion has been issued by other
Government agencies and is called "agency debt."
Borrowing from the public has a significant impact
on the economy. This borrowing is normally a good
approximation to the Federal demand on credit markets. The Federal demand on credit markets, even if
used productively for additional tangible or intangible
investment, has to be financed by the saving of households and businesses, the State and local sector, or
the rest of the world. Borrowing from the public moreover affects the size and composition of assets held
by the private sector and the perceived wealth of the
public. It also affects the amount of taxes required to
pay interest to the public.
Issuing debt securities to Government accounts is a
critical element in accounting for the operation of these
funds. The balances of debt represent the cumulative
surpluses of these funds due to the excess of their tax
receipts and other collections compared to their spending. These balances can be used in later years to finance future payments to the public. The interest on
this debt compensates these funds—and the members
of the public who pay earmarked taxes or user fees
into these funds—for spending some of their income
at a later time than when they receive it. Public policy
may deliberately run surpluses and accumulate debt
in trust funds and other Government accounts, as it
is doing now with social security, military retirement,
civil service retirement, and certain other funds.
However, issuing debt to Government accounts does
not have any of the economic effects of borrowing from
the public. It is an internal transaction between two
accounts, both within the Government itself. It does
not represent either current transactions of the Government with the public or an estimated amount of future
transactions with the public. If the account conducts
a retirement program, the debt that it holds does not
represent the actuarial present value of future benefits.
Debt held by the public is therefore a better concept
than gross Federal debt for analyzing the effect of the
budget on the economy.
Trends in Federal debt—The following table shows
trends in Federal debt held by the public from 1950
to the estimates for 1998. Debt is shown in various
ways: in nominal terms, adjusted for inflation, and relative to GDP (Gross Domestic Product) and total credit
market debt. The share of total Federal outlays used
to pay interest on the debt is also shown, as is the
Federal debt held by foreign residents. This table is
supplemented for earlier years by the data in "Historical Tables," tables 7.1-7.3, which were published in
Part Five of Budget Baselines; Historical Data, and Alternatives for the Future (January 1993).
Debt held by the public and the Federal deficit.—The table on Federal Government financing and
debt shows the relationship between borrowing from
the public and the Federal deficit. The total deficit of
the Federal Government includes not only the budget
deficit but also the surplus or deficit of the off-budget
Federal entities, which have been excluded from the
budget by law. Under present law the off-budget Federal entities are the social security trust funds (oldage and survivors insurance and disability insurance)
and the Postal Service fund. Borrowing from the public
depends both on the Federal Government's expenditure
programs and tax laws and on the condition of the
economy. The sensitivity of the budget to economic conditions is analyzed in the chapter on economic projections.
The total Federal deficit is financed either by borrowing from the public or by the other means shown in
the table, such as a decrease in Treasury's cash balance. Many of these other means of financing are normally small relative to borrowing from the public. Decreases in cash balances, for example, are inherently
limited by past accumulations, which themselves required financing when they were built up. In 1992
these other accounts added up to a negative amount,
-$20.3 billion, and themselves had to be financed by
borrowing from the public.
A new type of means of financing was created for
credit programs by the Federal Credit Reform Act of
1990. Budget outlays for new direct loans and loan
guarantees consist of the estimated subsidy cost of the
loans or guarantees instead of the cash flows. The por-
31
32
THE BUDGET FOR FISCAL YEAR 1994
TRENDS IN FEDERAL DEBT HELD BY THE PUBLIC
(Dollar amounts in billions)
Debt held by the public
Current dollars
Constant 1987
dollars1
Debt held by the public as a percent of:
GDP
Credit market
debt2
Interest on debt
held by the public
as a percent of
total outlays3
Debt held by foreign residents4
Amount
Percent of debt
held by public
1950
1955
1960
1965
1970
1975
219.0
226.6
236.8
260.8
283.2
394.7
1,094.0
1,001.4
907.8
922.1
818.3
829.6
82.4
58.9
46.9
38.9
28.7
26.1
55.3
43.3
33.7
27.0
20.8
18.4
11.4
7.6
8.5
8.1
7.9
7.5
NA
5.3
10.0
12.3
14.0
66.0
NA
2.3
4.2
4.7
5.0
16.7
1980
1981
1982
1983
1984
709.3
784.8
919.2
1,131.0
1,300.0
1,004.9
1,009.2
1,100.2
1,229.8
1,430.9
26.8
26.5
29.4
34.1
35.2
18.5
18.6
20.0
22.1
22.4
10.6
12.1
13.6
13.8
15.7
121.7
130.7
140.6
160.1
175.5
17.2
16.7
15.3
14.2
13.5
1985
1986
1987
1988
1989
1,499.4
1,736.2
1,888.1
2,050.3
2,189.3
1,589.7
1,787.6
1,888.1
1,978.4
2,021.5
37.8
41.2
42.4
42.6
42.3
22.8
23.1
22.7
22.6
22.2
16.2
16.1
16.0
16.2
16.5
222.9
265.5
279.5
345.9
394.9
14.9
15.3
14.8
16.9
18.0
1990
1991
1992
1993 estimate
1994 estimate
2,410.4
2,687.9
2,998.6
3,303.8
3,574.4
2,134.8
2,282.4
2,475.5
2,664.2
2,814.5
44.1
47.7
51.1
53.5
54.9
22.7
24.3
25.8
16.2
16.2
15.5
14.5
14.8
403.5
439.4
498.5
16.7
16.3
16.6
1995
1996
1997
1998
3,826.9
4,052.8
4,293.7
4,575.7
2,943.7
3,048.4
3,159.7
3,294.0
55.8
56.3
56.9
58.1
;
estimate
estimate
estimate
estimate
15.1
15.6
15.8
15.8
NA - Not Available.
1 Debt in current dollars deflated by the GDP deflator with 1987 - 100.
Source: Credit market debt from the Federal Reserve Board flow of funds accounts. Total credit market debt owed by domestic nonfinancial sectors, modified to be consistent with budget concepts for the measurement of
Federal debt Projections not available.
3 Interest on debt held by the public is estimated as the interest on the public debt less the "interest received by trust funds" (subfunction 901 less subfunotions 902 and 903). It does not include the comparatively small
amount of interest on agency debt or the offsets for other interest received by Government accounts.
4 Estimated by Treasury Department Not recorded by methods that are strictly comparable with debt held by the public. Projections not available.
2
tion of the net cash flow that does not represent a budget proposes to modify and expand the direct loan
cost to the Government is non-budgetary, recorded as pilot program for student aid. The goal is to replace
a transaction of the financing account for each program. guaranteed student lending with direct loans by 1997.
The "net financing disbursements" of a financing ac- The estimates reflect the current tentative phase-in
count are defined in the same way as the "outlays" plan, with $22.5 billion of net financing disbursements
of a budgetary account and may be either positive or in 1998. Since this is an entitlement program, direct
negative. They are positive if the gross disbursements loans will be provided in whatever amounts eligible
by the account—whether to the public or to a budgetary applicants qualify for.
account—exceed the collections from both of these
Debt held by Government accounts and the trust
sources; they are negative if the collections exceed the
fund
surplus.—The amount of Federal debt issued to
gross disbursements. If the net financing disbursements
Government accounts depends largely on the surpluses
are positive, they must be paid in cash and thus inof the trust funds, both on-budget and off-budget, which
crease the requirement for Treasury borrowing; if the owned 96 percent of the total Federal debt held by
net financing disbursements are negative, they provide Government accounts at the end of 1992. In 1992, for
cash to the Treasury that can be used to pay the Gov- example, the total trust fund surplus was $96.0 billion
ernment's bills in the same way as tax receipts, borrow- and Government accounts invested $93.0 billion in Feding, or any other cash collection. The financing accounts eral securities. The small difference is because some
are therefore a means of financing the Government, other accounts hold Federal debt and because the trust
positive or negative, just like the other means listed funds may change the amount of their cash assets not'
in the table. A positive amount of net financing dis- currently invested. The amounts held by major Governbursements is shown in the table by the financing ac- ment accounts and their annual investment are shown
count having a negative sign.
in the last table of this chapter.
The financing accounts had little net effect on borrowing in 1992 and are not estimated to have much effect
Debt subject to statutory limit—A statutory limit
in 1993. Their effect then increases, however, and by applies to the total of most Federal debt outstanding:
1998 they are estimated to add $32.0 billion to borrow- nearly all debt issued by the Treasury since September
ing from the public. The principal reason is that this 1917, whether held by the public or by Government
33
SUMMARY INFORMATION: FEDERAL RESEARCH AND D
E
V
E
L
O
P
M
E
N
T EXPENDITURES
FEDERAL GOVERNMENT FINANCING AND DEBT1
(In billions of dollars)
1992
actual
FINANCING
Surplus or deficit
(On-budget)
(Off-budget)
1994
-290.4
(-340.5)
(50.1)
-322.0
(-366.5)
(44.5)
-17.3
-1.4
-0.4
0.3
18.8
-0.2*
1995
1996
1997
1998
-264.1
(-322.8)
(58.7)
-246.7
(-311.5)
(64.8)
-211.7
(-287.8)
(76.1)
-214.0
(-296.6)
(82.6)
-250.4
(-340.6)
(90.1)
0.3
-2.3
-1.3
0.5
0.5
0.5
0.5
0.5
-3.3
1.9
-5.5
4.6
-7.0
3.6
-8.5
2.2
-15.4
0.7
-26.1
-1.3
-30.3
-1.7
-20.3
18.0
-6.5
-5.8
-14.3
-26.9
-31.6
-310.7
-304.0
-1.3
-270.6
-252.5
-226.0
-240.9
-282.0
310.7
305.2
270.6
252.5
226.0
240.9
282.0
3,984.6
18.1
4,374.1
22.6
4,754.4
23.2
5,119.3
22.9
5,463.8
23.7
5,827.4
24.3
6,232.6
24.9
4,002.7
4.396.7
4,777.7
5.142.3
5.487.6
5,851.7
6,257.5
1,004.0
2,998.6
(296.4)
(2,702.2)
1.092.8
3,303.8
1.203.3
3.574.4
1.315.4
3,826.9
1.434.7
4.052.8
1,557.9
4,293.7
1,681.8
4,575.7
3,984.6
-15.6
0.3
4,374.1
-15.6
0.3
4,754.4
-15.6
0.3
5,119.3
-15.6
0.3
5,463.8
-15.6
0.3
5,827.4
-15.6
0.3
6,232.6
-15.6
0.3
Means of financing other than borrowing from the public:
Change in:2
Treasury operating cash balance
Checks outstanding, etc.3
Deposit fund balances
Seigniorage on coins
Less: Net financing disbursements:
Direct loan financing accounts
Guaranteed loan financing accounts
Total, means of financing other than borrowing from the public
Total, requirement for borrowing from the public
Reclassification of debt4
Estimate
1993
Change in debt held by the public
DEBT, END OF YEAR
Gross Federal debt:
Debt issued by Treasury
Debt issued by other agencies
Total, gross Federal debt
Held by:
Government accounts
The public
(Federal Reserve Banks)
(Other)
DEBT SUBJECT TO STATUTORY LIMITATION, END OF YEAR
Debt issued by Treasury
Less: Treasury debt not subject to limitation5
Agency debt subject to limitation
Unamortized discount (less premium) on Treasury notes and bonds other than
zero-coupon bonds
Total, debt subject to statutory limitation6
3.3
4.0
4.0
4.0
4.0
4.0
4.0
3,972.6
4,362.8
4,743.1
5,108.0
5,452.5
5,816.0
6,221.3
•$0.05 billion or less.
1 Treasury securities held by the public are almost entirely measured at sales price plus amortized discount or less amortized premium. Agency debt and Treasury securities held by Government accounts are almost entirely
measured at face value.
2 A decrease in the Treasury operating cash balance (which is an asset) is a means of financing the deficit It therefore has a positive sign, which is opposite to the sign of the deficit. An increase in checks outstanding or
deposit fund balances (which are liabilities) is also a means of financing the deficit and therefore also has a positive sign.
^Besides checks outstanding, includes accrued interest payable on Treasury debt, miscellaneous liability accounts, allocations of special drawing rights, and, as an offset, cash and monetary assets other than the Treasury
operating cash balance, miscellaneous asset accounts, and profit on sale of gold.
4 The Farm Credit System Financial Assistance Corporation was reclassified from a Government-sponsored enterprise to a Federal agency as of October 1, 1992, and its debt was accordingly reclassified as Federal agency
debt Thisreclassificationdoes not constitute borrowing.
8 Consists primarily of Federal Financing Bank debt
•The statutory debt limit of $4,145 billion was enacted as of November 5, 1990.
accounts; and debt issued by other Federal agencies
that, according to explicit statute, is guaranteed as to
principal and interest by the United States Government. Because the debt subject to limit includes both
debt held by the public and debt held by Government
accounts, it is much larger than debt held by the public:
$3,972.6 billion compared to $2,998.6 billion at the end
of 1992
The lower part of the table on Federal Government
financing and debt compares the total Treasury debt
with the debt subject to statutory limit. Most of the
Treasury debt not subject to limit was issued by the
Federal Financing Bank to the civil service retirement
and disability trust fund. The sole type of agency debt
currently subject to the general limit is the debentures
issued by the Federal Housing Administration, which
were only $301 million at the end of 1992. Some of
the other agency debt, however, including TVA debt,
is subject to its own statutory limit.
A limit of $4,145 billion was established as part of
the budget negotiations between the President and the
Congress in the summer and fall of 1990. During that
period the limit was temporarily raised or extended
six times. The budget negotiations were concluded with
the Omnibus Budget Reconciliation Act of 1990, which
the President signed on November 5, 1990. The increase
in the debt limit was large enough to last nearly two
and a half years, the longest time without an increase
34
THE BUDGET FOR FISCAL YEAR 1994
AGENCY DEBT
(In millions of dollars)
Borrowing or repayment (-) of debt
Description
Borrowing from the public:
Defense
Housing and Urban Development:
Federal Housing Administration
Interior
Small Business Administration:
Participation certificates: SBIC and section 505 development
company
Architect of the Capitol
Farm Credit System Financial Assistance Corporation1
Federal Deposit Insurance Corporation:
Bank Insurance Fund
FSUC Resolution Fund
National Archives
Postal Service
Tennessee Valley Authority
Total, borrowing from the public
Borrowing from other funds:
Housing and Urban Development:
Federal Housing Administration
Total, borrowing from other funds
Total, agency borrowing
1992
actual
1993
estimate
Debt end of
1994
estimate
1994
estimate
-1
1
-2
7
-18
-7
-20
153
13
13
14
7
74
184
1,261
-2
-4,987
-93
-230
-220
5,512
-145
-3
762
298
3,500
850
20,365
296
3,186
687
23,116
-16
-1
*
122
-16
-1
•
122
280
3,186
687
23,238
*$500 thousand or less.
'The Farm Credit System Financial Assistance Corporation was reclassified from a Government-sponsored enterprise to a Federal agency as of
October 1, 1992, and its debt of $1,261 million was accordingly reclassified as Federal agency debt This reclassification does not constitute borrowing.
A Federal funds deficit must generally be financed
since the period from 1946 to 1954. A limit above
$4,145 billion is now needed, however, in order to per- by borrowing, either by selling securities to the public
mit the Government to continue to meet its obligations. or by issuing securities to Government accounts. FedThe change in debt held by the public, as shown eral funds borrowing consists almost entirely of the
in the table on Federal financing, is determined prin- Treasury issuing securities that are subject to the statcipally by the total Government deficit. Because the utory debt limit. Trust fund surpluses are almost
debt subject to limit also includes debt held by Govern- entirely invested in these securities, and trust fund
ment accounts, the change in debt subject to limit is holdings include most of the debt held by Government
determined both by the factors that determine the total accounts. The change in debt subject to limit is thereGovernment deficit and by the factors that determine fore determined principally by the Federal funds deficit,
which is equal to the arithmetic sum of the total Govthe change in debt held by Government accounts.
The change in debt held by Government accounts ernment deficit and the trust fund surplus.
So long as the trust fund surplus is large, the Federal
involves transactions between different funds within
the Government. The budget is cqmposed of two groups funds deficit will be much more than the total Governof funds, Federal funds and trust funds. The Federal ment deficit; and the increase in debt subject to limit
funds are mainly derived from tax receipts and borrow- will be much more than the increase in debt held by
ing and are used for the general purposes of the Gov- the public. In 1992, for example, the Federal funds
ernment. The trust funds, on the other hand, are fi- deficit was $386.4 billion, and other factors increased
nanced by taxes or other collections earmarked by law the change in debt subject to limit by $16.9 billion.
for specified purposes, such as paying social security As a result, the debt subject to limit increased by
or unemployment benefits. (For further discussion see $403.3 billion, which was $92.6 billion more than the
increase in debt held by the public.
chapter on trust funds and Federal funds.)
35
SUMMARY INFORMATION: FEDERAL RESEARCH AND D
E
V
E
L
O
P
M
E
N
T EXPENDITURES
DEBT HELD BY GOVERNMENT ACCOUNTS 1
(In millions of dollars)
Investment or disinvestment (-)
Description
Investment in Treasury debt:
Overseas Private Investment Corporation
Defense—Military: Defense Cooperation account
Defense—Civil: Military retirement trust fund
Energy: Nuclear waste fund
Health and Human Services:
Federal old-age and survivors insurance trust fund2
Federal disability insurance trust fund2
Federal hospital insurance trust fund
Federal supplementary medical insurance trust fund
Housing and Urban Development:
Federal Housing Administration
Other
Interior:
Outer Continental Shelf deposit funds
Abandoned Mine Reclamation fund
Labor:
Unemployment trust fund
Pension Benefit Guaranty Corporation1
State: Foreign Service retirement and disability trust fund
Transportation:
Highway trust fund
Airport and airway trust fund
Treasury: Exchange stabilization fund
Veterans Affairs:
National service life insurance trust fund
Other trust funds
Federal funds
Environmental Protection Agency: Hazardous substance trust fund .
Office of Personnel Management:
Civil Service retirement and disability trust fund
Employees life insurance fund
Employees health benefits fund
Federal Deposit Insurance Corporation:
Bank Insurance fund
FSUC Resolution fund
Savings Association Insurance fund
National Credit Union Administration: Share insurance fund
Postal Service fund2
Railroad Retirement Board trust funds
Tennessee Valley Authority
Other Federal funds
Other trust funds 3
1992
actual
1993
estimate
Holdings end
of 1994
estimate
1994
estimate
54
-5,575
11,698
489
102
-1,991
19,630
345
121
-4
8,805
378
1,923
37
116,189
4,235
50,967
-187
11,320
2,293
48,657
-2,767
4,963
1,812
63,304
-3,027
5,886
-1,094
418,486
7,124
131,495
19,252
-812
424
220
486
300
392
6,355
3,850
70
1,022
27
-268
-1,271
95
8
850
-12,436
652
578
-78
686
610
1,726
625
637
36,782
4,339
7,246
1,573
-103
936
-4,962
-7,222
936
-1,051
-747
910
14,949
7,121
5,161
160
37
-378
445
303
58
-40
425
198
35
-38
939
11,812
1,667
672
5,120
25,881
1,141
424
27,626
1,081
105
27,775
1,041
235
339,830
14,725
6,332
-1,443
379
292
233
1,340
1,094
-640
230
838
-1,147
-819
909
202
-179
-959
-991
-332
1,336
2,000
-29
1,225
168
800
231
-257
-1
156
5,518
471
2,474
2,748
5,300
10,800
991
2,824
6,465
Total, investment in Treasury debt 1 - 3
92,995
88,764
110,461
1,203,149
Investment in agency debt:
Housing and Urban Development:
Government National Mortgage Association
-16
-1
*
122
-16
-1
*
122
92,978
88,764
110,461
1,203,271
-4,153
1,340
44,942
50,780
70
-1,702
-179
44,727
45,890
27
5,884
800
44,771
60,277
-1,271
42,570
5,300
729,784
425,610
8
Total, investment in agency debt
Total, investment in Federal debt 1 ' 3
MEMORANDUM
Investment by Federal funds (on-budget)1
Investment by Federal funds (off-budget)
Investment by trust funds (on-budget)3
Investment by trust funds (off-budget)
Investment by deposit funds4
*$500 thousand or less.
1 Debt held by Government accounts is measured at face value except for the Treasury zero-coupon bonds held by the Pension Benefit Guaranty
Corporation, which were issued beginning in 1991 and recorded by an accrual method (the estimated market value). If recorded at face value, PBGC's
holdings at the end of 1992 would be $15,443 million, an increase of $5,105 million compared to 1991; and total holdings by Government accounts would
be $1,016,453 million, an increase of $97,431 million.
2Off-budget Federal entity.
3 includes the Farm Credit System Financial Assistance Corporation, which was reclassified from a Government-sponsored enterprise to a Federal agency
as of October 1, 1992. Its holding of Federal securities ($8 million at the beginning of 1993) was accordingly reclassified as debt held by Government
accounts. This reclassification does not constitute investment
4 Only those deposit funds classified as Government accounts.
FEDERAL EMPLOYMENT
This section provides data on civilian and military
employment in the Executive Branch and personnel
compensation and benefits. It also provides information
on employment in the legislative and judicial branches
and comparisons between the Federal workforce, State
and local Government workforces, and the United
States population.
Total Federal Employment in the Executive
Branch
Civilian employment in the Executive Branch is
measured on the basis of full-time equivalents (FTEs).
One FTE is equal to one work year or 2,080 hours.
The budget implements a reduction of Federal positions, measured on an FTE basis, pursuant to Executive
Order 12839 issued February 10, 1993. This order mandates an overall reduction in each executive department
and agency, from a base level of FTE employment consistent with 1993 enacted appropriations, of 1 percent
in 1993, 2.5 percent in 1994, and 4 percent in 1995.
The reduction applies to all Executive Branch departments and agencies, excluding the U.S. Postal Service,
with greater than 100 employees measured on an FTE
basis. Exemptions from the reduction may be granted
if the Director of OMB determines that such action
is necessary to assure that essential services are provided and/or applicable provisions of law are carried
out. The Director will be considering exemptions depending on the level of appropriations enacted for 1993
and 1994, and other factors. Reductions in Executive
Branch employment resulting from the Executive Order
are shown in the table entitled "Federal Employment
in the Executive Branch." The Federal Deposit Insurance Corporation is not complying with the Executive
Order.
Total Federal Employment Levels
The tables that follow show total Federal employment
in all branches of Government, as well as the U.S.
Postal Service, Postal Rate Commission, and active
duty uniformed military personnel. The table entitled
"Total Federal Employment as Measured by Total Positions Filled" displays total Federal employment as
measured by actual positions filled, and the table entitled "Total Federal Employment as Measured by FullTime Equivalents" shows total Federal employment on
an FTE basis.
Personnel Compensation and Benefits
The table entitled "Personnel Compensation and Benefits" displays personnel compensation and benefits for
all branches of Government, as well as for military
personnel.
Direct compensation of the Federal work force includes base pay, merit pay, and premium pay. In addition, it includes other cash components such as interim
geographic adjustments, recruitment and relocation bonuses, retention allowances, performance awards, and
cost-of-living and overseas allowances.
In the case of military personnel, compensation includes basic pay, special and incentive pay (including
enlistment and reenlistment bonuses), and allowances
for clothing, housing, and subsistence.
Related compensation in the form of personnel benefits for current personnel consists primarily of the Government's share (as an employer) of health insurance,
life insurance, old age survivors' disability and health
insurance, and payments to the Department of Defense's Military Retirement Fund and the Civil Service
Retirement and Disability Fund to finance future retirement benefits.
Government Employment and Population
Comparisons
As illustrated in the table entitled "Government Employment and Population," the Federal share of total
Government employment has declined significantly over
the last three decades, from 21.7 percent in 1961 to
15.2 percent in 1992. Employment for all Government
has risen steadily over the period mostly due to increases in state and local Government employment.
The ratio of Federal civilian employment to the total
U.S. population is estimated to be 11.8 per thousand
in 1993, down from a high of 14.9 in 1968 and 1969.
A further decline, to 11.6 per thousand, is expected
for 1994.
37
38
THE BUDGET FOR FISCAL YEAR 1994
FEDERAL EMPLOYMENT IN THE EXECUTIVE BRANCH
(Civilian employment as measured by Full-Time Equivalents in thousands)
Agency
Cabinet agencies:
Agriculture
Commerce
Defense—military functions1
Education
Energy
Health and Human Services
Housing and Urban Development
Justice
Labor
State
Transportation
Treasury
Veterans Affairs
Other agencies (excluding Postal Service):
Agency For International Development
Corps of Engineers
Environmental Protection Agency
Equal Employment Opportunity Commission
Federal Emergency Management Agency
Federal Deposit Insurance Corporation and Resolution Trust Corporation2
General Services Administration
National Aeronautics and Space Administration
National Archives and Records Administration
National Labor Relations Board
Nuclear Regulatory Commission
Office of Personnel Management
Panama Canal Commission
Securities and Exchange Commission
Small Business Administration
Smithsonian Institution
Tennessee Valley Authority
United States Information Agency
All other small agencies
Total, Executive Branch civilian employment3
1992
actual
1994
estimate
1995
estimate
Change:
1993 base
to 1995
113.3
36.4
927.2
5.0
20.6
130.0
13.6
77.9
98.4
19.8
26.0
71.1
165.2
232.4
112.1
36.0
927.2
4.9
20.4
128.7
13.5
77.2
97.4
19.6
25.8
70.0
163.6
232.1
110.8
35.5
895.2
4.8
20.0
126.7
13.3
76.0
95.9
19.3
25.4
69.3
163.1
234.2
108.9
34.9
865.2
4.8
19.7
124.8
13.1
74.8
94.4
19.0
25.0
68.3
161.6
225.7
-4.3
-1.5
-62.0
-0.2
-0.9
-5.2
-0.5
-3.1
-3.9
-0.8
-1.0
-2.8
-3.6
-6.7
4.4
27.4
17.4
2.8
2.6
21.8
22.8
24.5
2.6
2.1
3.4
5.9
8.6
2.5
4.0
4.4
20.0
8.3
21.0
4.4
27.4
18.3
2.8
2.7
21.3
22.7
24.9
2.8
2.1
3.4
6.1
8.7
2.7
4.0
4.9
19.1
8.7
22.0
4.3
27.2
18.1
2.9
2.7
21.3
22.5
24.2
2.7
2.1
3.3
6.0
8.7
2.7
4.0
4.8
18.9
8.6
21.6
4.3
26.8
17.8
3.0
2.7
22.8
22.1
23.8
2.7
2.1
3.3
5.9
8.8
2.6
3.9
4.8
18.5
8.5
21.2
4.2
26.3
17.6
3.0
2.6
22.8
21.8
23.9
2.6
2.1
3.2
5.9
9.0
2.6
3.9
4.7
18.4
8.4
21.0
-0.2
-1.1
-0.7
0.1
-0.1
1.6
-0.9
-1.0
-0.1
2,169.3
2,146.0
2,135.1
2,095.2
2,044.1
-101.8
10.9
0.5%
1.0%
50.8
2.4%
2.5%
101.8
4.7%
4.0%
-100.0
Because Defense was already reduced by almost 46,000 over 1992 in the 1993 base, no further reduction was required in 1993.
2 The Federal Deposit Insurance Corporation is not complying with the Executive Order.
3 Excludes Postal Service and Postal Rate Commission.
Estimate
113.4
35.2
972.9
4.9
19.7
128.8
14.1
75.3
91.7
19.7
25.5
69.9
162.8
229.0
FTE reduction from the base
Percentage reduction from the base
Percentage reduction targel/FTE reduction target
1
1993
Base
-0.2
-0.2
0.3
-0.1
-0.2
-0.2
-0.8
-0.3
-1.0
39
SUMMARY INFORMATION: FEDERALRESEARCHANDDEVELOPMENTEXPENDITURES
TOTAL FEDERAL EMPLOYMENT
(As measured by total positions filled)
Actual as of September 30
Description
Executive branch civilian employment:
All agencies except Postal Service and Postal Rate Commission:
Full-time permanent
Other than full-time permanent
1991
1,920,637
292,834
1,937,686
261,298
1,946,705
281,004
2,213,471
2,198,984
2,227,709
651,526
165,422
644,271
160,125
627,074
164,975
816,948
804,396
792,049
Special
Subtotal, executive branch civilian employment.
36,748
3,067,167
44,458
3,047,838
45,020
3,064,778
Military personnel on active duty:3
Department of Defense
Department of Transportation (Coast Guard)
2,069,357
37,087
2,002,614
38,669
1,808,131
2,106,444
2,041,283
1,847,600
5,173,611
5,089,121
4,912,378
16,681
20,814
16,783
21,719
16,740
21,769
Subtotal, Legislative Branch ,
37,495
38,502
38,509
Judicial Branch:
Full-time permanent
Other than full-time permanent ,
20,906
2,699
23,306
2,499
25,488
2,499
Subtotal, Judicial Branch
23,605
25,805
27,987
5,234,711
5,153,428
4,978,874
996,790
1,216,681
974,404
1,224,580
945,356
1,282,353
2,213,471
2,198,984
2,227,709
Subtotal
Postal Service:1
Full-time permanent
Other than full-time permanent
Subtotal.
Categories2
Subtotal, military personnel
Subtotal, Executive Branch
Legislative branch:
Full-time permanent
Other than full-time permanent
Grand total
ADDENDUM
Executive branch civilian personnel (excluding Postal Service):
DOD-Military functions
All other executive branch
Total
11ncludes
Postal Rate Commission.
2 Includes Summer Aides, Stay-in-school, Junior Fellowship, Worker-Trainee Opportunity Program.
3 Excludes reserve components.
40
THE BUDGET FOR FISCAL YEAR 1994
TOTAL FEDERAL EMPLOYMENT
(As measured by Full-Time Equivalents)
Description
Executive branch civilian personnel:
All agencies except Postal Service and Defense
Defense-Military functions (civilians)
Subtotal, excluding Postal Service
Postal Service1
Subtotal, Executive Branch civilian personnel
Executive branch uniformed personnel:2
Department of Defense
Department of Transportation (Coast Guard)
Subtotal, uniformed military personnel
Subtotal, Executive Branch
Legislative Branch:3 Total FTE
Judicial branch: Total FTE
Grand total
11ncludes
Postal Rale Commission.
Military personnel on active duty. Excludes reserve components. Data shown are average strength.
3 Actual 1992 FTE data not available for legislative branch. Data shown are estimates.
2
1992 actual
Estimate
Percent change:
1992 to 1994
1993
1994
1,196,477
972,869
1,207,871
927,215
1,199,967
895,215
0.3%
-8.0%
2,169,346
770,873
2,135,086
743,558
2,095,182
757,798
-3.4%
-1.7%
2,940,219
2,878,644
2,852,980
-3.0%
1,915,495
38,262
1,757,756
38,178
1,668,427
37,919
-12.9%
-0.9%
1,953,757
4,893,976
1,795,934
4,674,578
1,706,346
4,559,326
-12.7%
-6.8%
37,209
36,819
36,749
-1.2%
26,493
27,813
30,472
15.0%
4,957,678
4,739,210
4,626,547
-6.7%
41
SUMMARY INFORMATION: FEDERALRESEARCHANDDEVELOPMENTEXPENDITURES
PERSONNEL COMPENSATION AND BENEFITS
(In millions of dollars)
Description
Civilian personnel costs:
Executive Branch (excluding Postal Service):
Direct compensation:
DOD—military functions
All other executive branch
35,158
47,506
33,514
50,722
32,848
51,753
Subtotal, direct compensation ,
Personnel benefits:
DOD—military functions
All other executive branch1
82,664
84,236
84,601
7,566
17,097
6,455
18,714
6,110
18,924
Subtotal, personnel benefits ...
24,663
25,169
25,034
Subtotal, executive branch
107,327
109,405
109,635
28,311
8,751
28,348
9,335
29,122
10,142
37,062
37,683
39,264
770
146
785
155
833
170
916
940
1,003
1,096
228
1,227
257
1,405
319
1,324
146,629
1,484
149,512
1,724
151,626
55,285
23,799
56,567
20,402
52,917
19,366
79,084
76,969
72,283
225,713
226,481
223,909
35,766
25,057
37,594
26,111
38,994
27,316
60,823
63,704
66,310
Postal Service:
Direct compensation .
Personnel benefits ....
Subtotal
Legislative Branch:2
Direct compensation .
Personnel benefits ....
Subtotal
Judicial Branch:
Direct compensation .
Personnel benefits ....
Subtotal
Total, civilian personnel costs
Military personnel costs:
Direct compensation ..
Personnel benefits
Total, military personnel costs3
Grand total, personnel costs
ADDENDUM
Retired pay for former personnel:
Civilian personnel
Military personnel
Total .
11n
addition to the employing agency's contribution to the costs of life and health insurance, retirement and Medicare Hospital insurance, this amount includes transfers from general revenues to
amortize fte effects of general pay increases on Federal retirement systems for employees in the Legislative and Judicial Branches as well as employees (non-Postal) in the Executive Branch and to
amortize supplemental liabilities under FERS. The transfers amounted to $6,545 in 1992 and are estimated to be $7,367 million in 1993 and $7,532 in 1994.
2 Excludes members and officers of Congress.
3 Excludes reserve components.
42
THE BUDGET FOR FISCAL YEAR 1994
GOVERNMENT EMPLOYMENT AND POPULATION, 1961-1994
Government employment
Population
Federal1
Fiscal year
1961 2
1962
1963 3
1964 3
1965
1966
1967
1968
1969 4
1970 2
1971 2
1972
1973
1974
1975
1976
1977 5
1978
1979
1980 2
1981 2
1982
1983
1984
1985
1986
1987
1988
1989
1990 2
1991 2
1992
1993
1994
Executive branch
civilians
(thousands)
2,407
2,485
2,490
2,469
2,496
2,664
2,877
2,951
2,980
2,944
2,883
2,823
2,775
2,847
2,848
2,832
2,789
2,820
2,823
2,821
2,806
2,768
2,819
2,854
2,964
2,967
3,030
3,054
3,064
3,067
3,048
3,065
2,985
2,955
Uniformed military
personnel
(thousands)
2,515
2,840
2,732
2,719
2,687
3,128
3,413
3,585
3,497
3,103
2,750
2,360
2,290
2,197
2,163
2,118
2,112
2,099
2,062
2,089
2,122
2,148
2,163
2,178
2,189
2,206
2,213
2,176
2,168
2,106
2,041
1,846
1,766
1,658
Legislative and
judicial branch
personnel
(thousands)
29
30
30
31
32
33
34
35
36
38
40
42
44
46
49
50
53
55
53
55
54
55
56
56
57
55
58
59
60
61
64
66
65
64
Total Federal
personnel
(thousands)
4,951
5,355
5,252
5,219
5,215
5,825
6,324
6,571
6,513
6,085
5,673
5,225
5,109
5,090
5,060
5,000
4,954
4,974
4,938
4,965
4,982
4,971
5,038
5,088
5,210
5,228
5,301
5,289
5,292
5,234
5,153
4,977
4,816
4,677
State and local
governments
(thousands)
6,295
6,533
6,834
7,236
7,683
8,259
8,730
9,141
9,496
5,673
6,085
10,896
11,286
11,713
12,114
12,282
12,704
13,050
13,359
13,542
13,274
13,207
13,220
13,504
13,827
14,157
14,402
14,766
15,163
15,628
15,744
15,681
All governmental
units (thousands)
11,246
11,888
12,086
12,455
12,898
14,084
15,054
15,712
16,009
11,758
11,758
16,121
16,395
16,803
17,174
17,282
17,658
18,024
18,297
18,507
18,256
18,178
18,258
18,592
19,037
19,385
19,703
20,055
20,455
20,862
20,897
20,658
Federal civilian as
a percent of all
governmental
units
21.7
21.2
20.0
20.1
19.6
19.2
19.4
19.0
18.9
18.7
18.3
17.8
17.2
17.3
16.9
16.7
16.1
16.0
15.8
15.6
15.7
15.6
15.8
15.7
15.9
15.6
15.7
15.6
15.3
15.0
14.9
15.2
Total United
States
(thousands)
Federal civilian
employment per
1,000 population
183,691
186,538
189,242
191,889
194,303
196,560
198,712
200,706
202,677
205,052
207,661
209,896
211,909
213,854
215,973
218,035
220,904
223,278
225,779
228,468
230,848
233,184
235,439
237,663
239,134
241,304
243,479
245,730
248,061
250,726
253,366
254,521
258,103
260,713
13.3
13.5
13.3
13.0
13.0
13.7
14.7
14.9
14.9
14.5
14.1
13.6
13.3
13.5
13.4
13.2
12.9
12.9
12.7
12.6
12.4
12.1
12.2
12.2
12.6
12.5
12.7
12.7
12.6
12.5
12.3
12.3
11.8
11.6
1 Covers total end-of-year civilian employment of full-time permanent, temporary, part-time, and intermittent employees. Executive branch includes the Postal Service, and, beginning in 1970, includes various disadvantaged youth
and worker-trainee programs.
2 Includes temporary employees for the decennial census.
3 Excludes 7,411 project employees in 1963 and 406 project employees in 1964 for the public works acceleration program.
4 On Jan. 1, 1969, 42,000 civilian technicians of the Army and Air Force National Guard converted by law from State to Federal employment status. They are included in the Federal employment figures in this table starting
with 1969.
s Data for 1961 through 1976 are as of June 30; for 1977 through 1993, as of September 30.
FEDERAL RESEARCH AND DEVELOPMENT EXPENDITURES
On February 22, 1993, the Administration released
a report entitled "Technology for America's Economic
Growth, A New Direction to Build Economic Strength."
The report's central premise is that investing in technology is investing in America's future. The report establishes three principal technology goals:
• Long-term economic growth that creates jobs and
protects the environment;
• A Government that is more productive and more
responsive to the needs of its citizens; and
• World leadership in basic science, mathematics,
and engineering.
Public and private investments in research and development (R&D) remain an important contribution to
achieving these goals. Since World War II, Federal technology policy has been to support basic science and
mission-oriented R&D (i.e., defense, space, etc.) and to
rely on these investments to trickle down to civilian
industry. While this approach may have made sense
in earlier eras, when U.S. firms dominated world markets, it is no longer adequate. Our Nation needs improved cooperative strategies for satisfying Federal and
industrial technology requirements. This is particularly
true for technologies which are not receiving adequate
support from private firms, either because the returns
are too distant or because the level of funding required
is too great for individual firms to bear. These new
approaches need not compromise agency missions.
These missions may be accomplished even more effectively through close cooperation with industry.
R&D Investments
Such a strategy will require a change in how our
Nation makes R&D investments. Although strong support will be maintained for basic research, the Administration's new policy will result in significantly more
Federal R&D resources for pre-competitive projects of
commercial relevance. The fundamental mechanism for
carrying out this new approach is the cost-shared partnerships between the Federal Government and industry. All Federal R&D agencies (including the Nation's
726 Federal laboratories) will be encouraged to act as
partners with industry wherever possible.
This reorientation toward more commercially relevant
R&D should have high payoff for the Department of
Defense (DOD), which accounted for 59 percent of all
Federal R&D in 1993. It is expected that a growing
number of defense needs can be met effectively through
commercial technologies without compromising national
security requirements (i.e., dual use).
The increased support for civilian R&D has already
permitted progress toward balancing the civilian and
defense R&D investments levels. DOD's dual-use strategy will contribute to this transition and will focus
on science and technology research initiatives totaling
$1.7 billion in 1994. As the accompanying table shows,
the Administration is proposing $76 billion in R&D investments in 1994. This record high investment is a
three percent increase over the 1993 level. The civilian
share of this funding is $30 billion, five percent more
than the 1993 level. This increase in civilian R&D will
bring the non-defense share of the R&D total to 42
percent. It is expected that the civilian share will rise
to more than 50 percent by 1998.
Applied Research and Development—In 1994, the
Administration is proposing $58 billion for applied research and development activities. The biggest percent
increase in this category will be for civilian applied
research and development activities, a $17 billion investment or six percent increase over 1993. Many of
these increases will be focused on cost-shared and competitively selected projects that are industry-defined
and industry-led (i.e., consortia, cooperative R&D agreements, etc.).
Basic Research.—Technical advances depend on
basic research in science, mathematics, and engineering
and the benefits of these technical innovations are seen
in economic growth, improved health care, and many
other areas. The Federal Government has invested
heavily in basic research since the Second World War
and this support has paid enormous dividends. The
budget proposes $14 billion for basic research support.
The Administration will ensure that support for basic
research remains strong and stable,
R&D Budget Highlights
Federal Coordinating Council for Science, Engineering, and Technology (FCCSET) Initiatives.—
Over the last several years, FCCSET has helped coordinate Federal R&D efforts. The Administration intends
to strengthen farther the FCCSET process and continue
the current initiatives in climate research, advanced
supercomputers and networks, advanced manufacturing, materials processing, and biotechnology research.
Although not directly included in the R&D budget,
there is a sixth FCCSET initiative in math and science
education that contributes to the training of the next
generation of scientists and engineers.
Manufacturing R&D.—Manufacturing R&D will receive particular attention over the next several years
through both the FCCSET Advanced Manufacturing
Initiative and increases designed to improve the use
of and access to manufacturing technologies, including
a national network of manufacturing extension centers.
New manufacturing technologies are available that can
43
44
THE BUDGET FOR FISCAL YEAR 1994
FEDERAL CONDUCT OF RESEARCH AND DEVELOPMENT
(Budget authority in millions of dollars)1
1992
actual
1994
proposed
Percent Change:
1993 to 1994
By defense/non-defense shares:
Defense
Non-defense
Defense share (percentage)
Non-defense share (percentage)
40,083
27,970
59%
41%
41,608
28,695
59%
41%
41,978
30,115
58%
42%
1%
5%
-2%
2%
By R&D category:
Basic research
Civilian
Defense
Applied research and development
Civilian
Defense
12,984
11,838
1,146
55,069
16,132
38,937
13,701
12,306
1,395
56,602
16,389
40,213
13,940
12,688
1,252
58,153
17,427
40,726
2%
3%
-10%
3%
6%
1%
Subtotal
R&D facilities
68,053
3,903
70,303
3,259
72,093
3,498
3%
7%
R&D total with facilities
71,956
73,562
75,591
3%
37,418
10,138
7,712
5,954
1,846
1,335
545
540
494
165
1,906
38,793
10,378
8,007
5,981
2,069
1,336
562
656
508
166
1,846
39,301
10,704
8,667
5,877
2,221
1,365
731
727
548
176
1,777
1%
3%
8%
-2%
7%
2%
30%
11%
8%
6%
-4%
68,053
70,303
72,093
3%
By agency:
DOD—military
Health and Human Services
National Aeronautics and Space Administration
Energy
National Science Foundation
Agriculture
Commerce
Transportation
Environmental Protection Agency
Education
All Other
,
R&D total (excludes facilities)
1
For outlays see the section on Federal Investment Outlays.
lead to dramatic improvements in product quality, cost,
and time-to-market. However, only a few U.S. businesses have had the resources to learn about and incorporate these advances. Many of our Nation's small and
medium-sized manufacturers are still using 1950s manufacturing technology. In 1994, nearly $1.5 billion is
being proposed in the promising area.
Information Superhighways.—Access to information is also becoming critical for most parts of the
American economy. Banks, insurance companies, manufacturing concerns, hospitals, and many other vital
businesses are relying more and more on high-speed
communications links. Accelerating the introduction of
these "information superhighways" can have the same
effect on our economy and social development as public
investment in the railroads in the 19th century and
in the interstate highway system in the mid-20th century. The budget proposes over $1 billion in this area,
a 26 percent increase over the 1993 level. Some of
these activities will push the state-of-the-art of
supercomputers and networks (i.e., the FCCSET HighPerformance Computing and Communications Program), while others will concentrate on taking full advantage of nearer-term technologies (i.e., the Information Infrastructure Technology Program and Network
Pilot Program).
1993
estimate
Civil Transportation Infrastructure.—While information superhighways may provide alternatives to
physical travel in the future, our Nation's transportation system (e.g., roads, bridges, commuter systems,
etc.) must be maintained and updated for the foreseeable future. Significant R&D increases will be made
in civil transportation infrastructure, including magnetic levitation transportation, high-speed rail, "smarthighway" technologies, civilian aviation, and new techniques in assessing the expected life of existing civil
transportation infrastructure. Nearly $2 billion is being
proposed for civil transportation infrastructure R&D,
a 29 percent increase over the 1993 level.
University Research—Our Nation's research universities are the best in the world and attract scientists
and engineers from around the globe. In almost every
field, U.S. researchers continue to lead their foreign
colleagues in scientific citation and most other measures of scientific excellence. The National Science Foundation, the National Institutes of Health, the Department of Energy, the Department of Defense, and the
National Aeronautics and Space Administration provide
over 93 percent of Federal funding for university research. The Administration proposes to spend over $11
billion for these activities in 1994. Since universities
play dual roles in research and training, the long-term
scientific and technological vitality of the U.S. depends
SUMMARY INFORMATION: FEDERAL RESEARCH AND DEVELOPMENT EXPENDITURES
upon adequate and sustained funding for university research programs at these agencies.
45
beyond. Materials and life science research will be supported in connection with a redesigned space station
and other manned missions that capitalize on the lowNational Laboratories.—In fields such as high-en- gravity and high-vacuum environment of outer space.
ergy physics, biomedical science, nuclear physics, mate- In addition, the budget proposes a broad range of aerorials science, and aeronautics, the national laboratories space technology investments that can contribute more
provide key facilities used by researchers from univer- directly to the U.S. technology base and economy. Over
sities, the Government, and industry. The Federal lab- $7 billion is proposed in this area, a six percent inoratories will continue their key role in basic research crease over the 1993 level.
and will encourage more cooperative research among
the labs, industry, and universities. Some of these partEnvironmental Research.—In 1994, the Federal
nerships will be supported as Cooperative Research and Government will invest more than $3 billion in environDevelopment Agreements (CRADAs). It is expected that mental R&D, including research to improve our underthere will be over 1,700 CRADAs (non-defense) in 1994, standing of the climate, energy conservation, and altera 17 percent increase over the 1993 level. The public native energy sources. An important component of this
and private cash and non-cash investments in these effort is the interagency U.S. Global Change Research
CRADAs are expected to exceed $3 billion.
Program (USGCRP). The budget proposes $1.5 billion
for
the USGCRP, a 13 percent increase over the 1993
Space Science and Exploration.—The budget provides the needed resources to work with our foreign level. This research is essential to assess fully the impartners in exploring our solar system and the universe pact that mankind is having on our planet.
FEDERAL DRUG CONTROL SPENDING
A statement of the amount of appropriations requested for all Federal Drug Abuse Control Programs
is required under the provisions of Title 31, U.S.C.
Section 1105(a)(26).
FEDERAL DRUG CONTROL SPENDING BY FUNCTION
(Budget authority; dollar amounts in millions)
Criminal justice system
Drug treatment
Education, community action, and the workplace
International
Interdiction
Research
Intelligence
Total
Dollar
change:
1993 to 1994
1991
actual
1992
actual
1993
enacted
1994
proposed
4,386
1,874
1,479
633
2,028
450
104
4,943
2,200
1,539
660
1,960
505
99
5,375
2,368
1,524
538
1,746
531
129
5,783
2,538
1,790
494
1,765
548
129
408
170
266
-44
19
17
10,954
11,905
12,211
13,041
831
-40
Percent
change:
1993 to 1994
8%
7%
17%
-8%
1%
3%
*
7%
*$500 thousand or less.
FEDERAL DRUG CONTROL SPENDING BY AGENCY
(Budget authority; dollar amounts in millions)
ACTION
Agency for International Development
Department of Agriculture:
Agricultural Research Service
U.S. Forest Service
Total, Agriculture
Department of Defense
Department of Education
Department of Health and Human Services (HHS):
Administration for Children and Families
Substance Abuse and Mental Health Administration and NIDA
Centers for Disease Control
Food and Drug Administration
Health Care Financing Administration
Indian Health Service
Health Resources and Services Administration
Total, HHS
Department of Housing and Urban Development
Department of the Interior
Bureau of Indian Affairs
Bureau of Land Management
Fish and Wildlife Service
National Park Service
Office of Territorial and International Affairs
Total, Interior
The Judiciary
Department of Justice:
Assets Forfeiture Fund
U.S. Attorneys
Bureau of Prisons
Criminal Division
Drug Enforcement Administration
13
197
10
258
10
140
10
100
6
10
6
9
6
10
6
10
16
16
16
16
1,043
683
1,226
715
1,141
700
1,168
709
106
1,531
29
7
191
35
13
111
1,620
29
7
202
35
17
116
1,707
31
7
232
45
21
116
1,825
37
7
261
39
40
165
90
1,912
2,020
2,158
2,324
150
165
175
265
15
7
23
9
1
1
24
10
1
9
23
5
1
9
1
11
2
11
1
1
28
8
118
5
29
-6
19
-1
-5
36
45
46
40
-5
294
360
407
501
94
421
161
1,027
19
412
207
1,255
20
710
498
207
1,334
19
756
470
208
1,466
20
774
-29
1
132
1
18
47
48
THE BUDGET FOR FISCAL YEAR 1994
FEDERAL DRUG CONTROL SPENDING BY AGENCY-Continued
(Budget authority; dollar amounts in millions)
Dollar
change:
1993 to 1994
Federal Bureau of Investigation
Immigration and Naturalization Service
Interpol
U.S. Marshals Service
Office of Justice Programs
Organized Crime Drug Enforcement
Support of U.S. Prisoners
Tax Division
Weed and Seed Program Fund
Federal/State Partnerships
Total, Justice
Department of Labor
Office of National Drug Control Policy (ONDCP):
Operations
High Intensity Drug Trafficking Areas
Special Forfeiture Fund
Total, ONDCP
Small Business Administration
Department of State:
Bureau of International Narcotics
Bureau of Politico/Military Affairs
Emergencies in the Diplomatic and Consular Service
Total, State
Department of Transportation:
U.S. Coast Guard
Federal Aviation Administration
National Highway Traffic Safety Administration
Total, Transportation
Department of the Treasury:
Bureau of Alcohol, Tobacco, and Firearms
U.S. Customs Service
Federal Law Enforcement Training
Financial Crimes Enforcement Network
Internal Revenue Service
U.S. Secret Service
Treasury Forfeiture Fund
Total, Treasury
U.S. Information Agency
Department of Veterans Affairs
Community Investment Program
Total Federal Program
Supply Reduction
Demand Reduction
*$500 thousand or less.
NA - Not Applicable.
180
131
1
203
536
335
135
1
205
141
2
218
543
390
164
1
219
146
2
234
541
385
191
1
7
218
153
2
235
542
384
253
7
13
3,842
4,268
4,541
4,746
206
13
61
62
71
73
2
17
82
6
19
86
20
18
86
15
6
86
28
-12
105
125
119
120
150
108
145
75
148
52
148
39
-14
258
220
200
187
-14
719
24
7
436
23
8
420
22
8
461
20
9
-2
750
468
450
123
674
21
13
93
54
136
785
17
14
103
43
152
572
22
17
115
54
192
147
526
18
15
113
58
209
-5
-46
-4
978
1,097
1,125
1,086
-39
7
611
10
842
10
903
11
10,954
11,905
7,262
3,692
7,815
4,090
-1
7
........
1
-1
63
1
13
41
2
40
-2
-3
4
17
1
944
253
41
253
12,211
13,041
831
7,910
4,301
8,302
4,740
392
439
FEDERAL CREDIT
sure Draft, "Accounting for Direct Loans and Loan
Guarantees." OMB also revised its credit subsidy model
to make it easier to estimate direct loan and loan guarantee subsidies.
The OMB requirements for the form and content of
audited agency financial statements prescribed present
value accounting methods consistent with credit reform
for budgeting (OMB Bulletin No. 93-02, October 22,
1992). Treasury's Financial Management Service (FMS)
prepared two papers that explained the method to be
used to convert conventional accounting data (based on
a series of FMS cases) to meet these new reporting
requirements. FMS provided training in the conversion
Federal credit programs.—Federal direct loans and method to groups of staff members from agency operatloan guarantees are intended to provide benefits to cer- ing and auditing units and from the IG offices. The
tain borrowers or to channel additional resources to Standard General Ledger Board, under the auspices
certain sectors. This is accomplished by providing more of FMS, updated the Standard General Ledger with
favorable terms to targeted borrowers than are avail- new and revised accounts in order to facilitate accountable from private lenders. For example, the Federal ing under credit reform.
Government often lends or guarantees lending to those
Further developments are underway to simplify the
who have been rejected by other lenders as poor credit means of achieving the objectives of the Credit Reform
risks (e.g., students), at interest rates that are often Act:
lower than the Treasury's borrowing rates. The Federal
• FMS will soon issue regulations, developed in conGovernment also may guarantee private lending withsultation with OMB, that will permit direct loan
out charging fees that are high enough to cover default
financing accounts to do all their borrowing from
costs.
Treasury once a year.
In most cases, credit programs result in a financial
• OMB is working on plans for weighted average
loss to the Government from net interest costs, delinfinancing tranches to replace separate tranches as
quencies, and defaults. These losses are calculated in
the mechanism for calculating interest paid beaccordance with the Federal Credit Reform Act as the
tween the financing accounts and Treasury. The
"subsidy" or grant element of the loan transaction.
new method is being developed and tested in a
pilot project with the Small Business AdministraEstimating the subsidy cost of Federal credit
tion.
programs.—The subsidy element of a credit program
In addition, FASAB's Exposure Draft recommending
is calculated as the difference between the present accounting standards for direct loans and loan guaranvalue of the expected cash outflows from the Govern- tees on a basis consistent with credit reform was issued
ment and the present value of the expected cash on September 15, 1992, and numerous comments were
inflows, each discounted by the interest rate on market- received. Work is in progress to prepare the proposed
able Treasury securities of like maturity at the time standard and technical guidance for final Board apof loan disbursement. This includes the cash flows spec- proval and publication. This will firmly establish the
ified in the loan or guarantee contract as well as "ex- conceptual foundation for financial reporting on a credit
pected" deviations from the contract terms (including reform basis and will provide support for the budgeting
delinquencies, defaults, prepayments, and other fac- of direct loans and loan guarantees under credit reform.
tors).
Federal Credit Program Tables
Implementation of credit reform.—OMB is workThe tables in this section primarily contain informaing with Treasury and the agencies responsible for administering credit programs to improve the implemen- tion on Federal programs that provide direct loans and
tation of credit reform in budgeting and accounting. loan guarantees. They also contain some information
The revised OMB Circular No. A - l l (July 2, 1992) on Federal insurance programs and the credit activity
improved and clarified the instructions for credit budget of Government Sponsored Enterprises.
formulation. Some of the changes re ected conceptual
The first table shows the "Face Value and Estimated
comments by the staff of the Federal Accounting Stand- Cost of Federal Credit and Insurance Programs." A
ards Advisory Board (FASAB) as it developed the Expo- brief explanation of the contents of this table follows.
The Federal Credit Reform Act of 1990, which became
effective in 1992, made fundamental changes in the
budgetary treatment of direct loans and loan guarantees. It shifted the accounting basis for federally provided or guaranteed credit from the amount of cash
flowing out of or into the Treasury to the estimated
subsidy cost of the loans or guarantees. Credit reform
required budget authority for the subsidy cost of the
credit program and provided new mechanisms for recording loan and loan guarantee transactions. These
changes have had a substantial impact on budgeting
for credit programs.
49
50
THE BUDGET FOR FISCAL YEAR 1994
Face Value and Estimated Cost of Federal
Credit and Insurance
notably, lower interest rates lead an increase in mortgage refinancing. As a result, outstanding FHA and
The terms used in the table are defined as follows: VA mortgage guarantees contracted by almost $125 bil• Face value numbers represent the total value of lion. This contraction in mortgage guarantees, however,
outstanding direct loans, outstanding guaranteed was more than offset by a $162 billion expansion in
loans (and direct loans from defaulted guaran- credit issued by Freddie Mac and Fannie Mae.
In the past year, lower interest rates also figured
tees), and insurance at the start of each year.
prominently
in reducing the present value of expected
• Present Value of Future Costs estimates represent
a range of costs for each credit and insurance costs in Federal credit and insurance. As shown in the
program from losses embedded in each program's table, the present value of expected costs decreased suboutstanding portfolio of credit and from projected stantially from a range of $203-294 billion in 1991
future loans, guarantees, or insurance. Projections to $123-224 billion in 1992. Most of this reduction was
of future costs for new credit are based on both attributable to the decrease in expected deposit insurcurrent policy and Administration reforms, and ance costs over the past year resulting from the reEire extended to cover the next 15 years.
stored profitability of banks and thrifts under the cur• Subsidy Outlay totals show the range of projected rent low interest rate environment. For student loans,
program subsidies over the 1993-1998 budget pe- expected costs are reduced because of lower interest
riod from new loans, guarantees, and insurance rates and the Administration proposal to switch from
based on current policy and Administration re- loan guarantees to a direct loan program. Direct loans
forms.
were the only category in the table where expected
This table shows that the face value of Federal credit costs rose. This increase was primarily the result of
and insurance remained relatively flat in 1992 at $6.5 increasing costs in the Farm Service Agency and Rural
trillion. Lower interest rates, however, caused shifts Development Administration programs.
in the distribution of outstanding Federal credit. Most
51
SUMMARY INFORMATION: FEDERALRESEARCHANDDEVELOPMENTEXPENDITURES
FACE VALUE AND ESTIMATED COST OF FEDERAL CREDIT AND INSURANCE PROGRAMS
(In billions of dollars)
1993 Estimates
Present Value of
Future Costs1
Program
Direct Loans:2
Farm Service Agency, Rural Development Administration
Rural Electrification Admin, and Rural Telephone Bank ....
Export-Import
Agency for International Development
Public Law 480
Foreign Military Financing
Small Business
Other Direct
Inactive
Total Direct Loans .
Guaranteed Loans:
FHA Single-Family
VA Mortgage
FHA Multi-Family
Federal family education loan program
Small Business
Farm Service Agency
Export-import
CCC Export Credits
Other Guaranteed
Inactive
Total Guaranteed Loans .
Federal Insurance:
Banks
Thrifts
Credit Unions
Total Deposit Insurance
PBGC
Other Insurance3
Total Federal Insurance .
GSEs:4
Freddie Mac
Fannie Mae
Federal Home Loan Banks ..
Sallie Mae5
Farm Credit System
Total GSEs
Total ,
52
39
9
13
12
9
7
4
15
11-15
4-5
4-6
6-7
7-9
Face Value 1992
Current Estimates
Present Value of
Future Costs1
16-22
1-2
50
38
9
16
12
9
7
3
13
160
36-51
157
39-57
378
158
77
57
14
6
6
4
6
17
(5)-0
3-6
2-3
38-42
1-3
1-3
(14)-0
3-6
3-6
20-30
-1
-1
277
135
71
52
13
5
6
4
6
17
723
46-68
587
22-62
1,942
654
197
34-51
55-60
1,943
618
218
25-37
2,793
89-111
2,779
26-49
800
1,094
30-60
2-3
850
1,080
25-40
11-15
4,687
121-174
4,709
62-104
1-2
1-2
1-3
4-6
2-3
1-2
1-2
1^3
1-3
4-7
4-5
-1
-1
1-12
427
543
85
369
439
107
51
2-4
3-5
5-7
7-9
2-3
2-3
-1
50
966
-1
1,105
-1
6,536
203-294
6,558
123-224
Direct loan future costs are the program account (1993-1998) plus the embedded loss from outstanding loans. For guarantees, these are liquidating plus program account outlays projected into the future.
Future insurance costs are program plus fiquidating costs through 1998, plus the accrued liability remaining at the end of 1998. 1993 estimates of costs are as displayed in the 1993 budget, uncorrected for
errors. Estimates of face value have been updated.
2 Exclude loans and guarantees by deposit insurance agencies and programs not included under credit reform, such as CCC farm supports. Defaulted guarantees which become direct loans receivable are
accounted for in guaranteed loans.
3 Current estimates of other insurance costs include the National Servicemen's Group Life Insurance program, omitted in the 1993 budget
4 Net of borrowing from Federal sources, other GSEs, and federally guaranteed loans.
5 The face value and Federal costs of Guaranteed Student loans in Sallie Mae's portfolio are included in the Guaranteed Student loan account above.
1
52
THE BUDGET FOR FISCAL YEAR 1994
ESTIMATED 1994 SUBSIDY RATES, BUDGET AUTHORITY, AND LOAN LEVELS FOR DIRECT
LOANS1
(In millions of dollars)
1994 Weighted-average subsidy as a
percent of disbursements
Agriculture:
Agricultural credit insurance fund
Public Law 480 direct loans
Rural development insurance fund
Rural development insurance fund (investment proposal)
Rural development loan fund
Rural development loan fund (investment proposal)
Rural housing insurance fund
Rural housing insurance fund (investment proposal)
Self-help housing
Debt Reduction
Rural Electrification Administration:
Rural economic development loans
Rural electric and telephone
Rural electric and telephone (investment proposal)
Rural telephone bank
Rural telephone bank (investment proposal)
Education:
College housing and academic facilities
Direct loan demonstration program
Interior
Bureau of Indian Affairs
Bureau of Reclamation loan program
State Department: Repatriation Loans
Transportation:
Minority business resource center program
Veterans Affairs:
Direct loan
Education loan fund
Guaranty and indemnity fund
Loan guarantee fund
Transitional housing loans
Vocational rehabilitation
Other Executive Agencies:
Export-Import Bank
Federal Emergency Management Agency:
Disaster assistance
Funds Appropriated to the President:
Foreign military financing
Overseas Private Investment Corporation
Small Business Administration:
Business Loans
Disaster loans
Total, direct loans2*3
1994 Subsidy
budget authority
1994 Estimated
loan levels
14.1
77.0
13.4
11.5
56.0
56.0
28.8
21.8
3.7
NA
162
351
98
61
19
79
668
72
1,155
456
736
530
34
140
2,319
330
1
63
26.3
0.3
12.9
3
5
3
*
33
*
13
1,797
25
177
25
13.7
4.6
75
767
22.8
57.0
80.0
2
5
1
11
12
1
4.0
*
8
*
1
*
*
7.9
28.9
0.7
1.6
10.0
2.2
4
19
11.1
227
*
*
*
0.0
*
510
1,172
*
2
2,050
25
14.1
14.2
120
3
855
21
27.0
12.8
21
50
78
390
15.2
2,080
13,704
*$500 thousand or less.
1 Additional information on credit reform subsidy rates is contained in the Federal Credit and Insurance Supplement to the budget for Fiscal Year 1994.
2 Weighted average subsidy rate as a percent of loan disbursements.
3 Total loan levels do not include obligations for programs which are excluded from credit reform.
53
SUMMARY INFORMATION: FEDERALRESEARCHANDDEVELOPMENTEXPENDITURES
ESTIMATED 1994 SUBSIDY RATES, BUDGET AUTHORITY, AND LOAN LEVELS FOR LOAN
GUARANTEES1
(In millions of dollars)
Agency and Program
Agriculture:
Agricultural credit insurance fund
Agricultural resource conservation demonstration
Commodity Credit Corporation: Export credits
Rural development insurance fund
Rural development insurance fund (investment proposal)..
Rural housing insurance fund
Rural housing insurance fund (investment proposal)
Education:
Federal family education loan program
Historically black college and university capital fund
Health and Human Services:
Health professions graduate student loan program
Housing and Urban Development:
Community development (Sec. 108)
Federal Housing Administration general and special risk2
Federal Housing Administration mutual mortgage
QNMA secondary mortgage guarantees
Interior:
Indian loan guaranty and insurance fund
Veterans Affairs:
Guaranty and indemnity fund
Loan guaranty fund
Other Executive Agencies:
Export-Import Bank
Funds Appropriated to the President:
AID housing and other credit guarantees
Overseas Private Investment Corporation
Loan Guarantees to Israel3
Small Business Administration:
Business Loans
Business loans (investment proposal).
Total, loan guarantees4
1994 Weightedaverage subsidy as
1994 subsidy
budget authority
2.0
53.0
7.1
0.7
2.0
1.6
1.6
90
4
403
9.8
0.0
2,159
6.3
24
0.0
6.4
-2.8
0.0
1
6
6
5
147
-1,460
-8
12.7
9
1.4
13.9
278
3.6
525
14.6
1.8
4.6
16
7
2.6
2.4
124
1.1
2,408
*$500 thousand or less.
Additional information on credit reform subsidy rates is contained in the Federal Credit and Insurance Supplement to the budget for Fiscal Year 1994.
2 Subsidy rate shown is for positive subsidy risk categories only.
3 By statue the subsidy BA must be covered by the Tee payment by Israel.
4 Weighted average subsidy rate as a percent of guaranteed loan disbursements.
5 Total loan levels do not include guarantee commitments for programs which are excluded from credit reform.
54
THE BUDGET FOR FISCAL YEAR 1994
SUMMARY OF FEDERAL DIRECT LOANS AND GUARANTEED LOANS
(In billions of dollars)
Estimate
Actual
1991
Direct Loans:
Subsidies:
Budget Authority
Outlays
Loan Volume:
Obligations
Disbursements
Guaranteed Loans:
Subsidies:
Budget Authority
Outlays
Loan Volume:
Commitments
Lender Disbursements
1993
1992
1994
1995
1996
1997
1998
NA
NA
NA
NA
2.1
1.9
2.0
1.9
2.2
2.0
2.2
2.1
2.1
2.1
1.9
2.0
16.1
26.6
16.4
26.1
24.8
31.6
22.7
29.4
23.2
27.8
32.2
31.0
43.4
41.1
44.8
45.6
NA
NA
NA
NA
2.2
2.1
2.3
2.0
1.3
1.6
0.1
0.5
0.1
0.1
106.9
97.1
130.2
105.3
156.0
136.9
158.8
141.6
149.1
138.2
141.0
130.0
141.4
126.1
3.2 #
2.8
143.7
125.4
SUBSIDY BUDGET AUTHORITY FOR DIRECT LOANS AND GUARANTEED LOANS BY FUNCTION
(In millions of dollars)
Direct loan subsidy budget authority
Guaranteed loan subsidy budget authority
1994
050
150
270
300
350
370
400
450
500
550
600
700
800
National Defense
International affairs
Energy
Natural resources and environment
Agriculture
Commerce and housing credit1
Transportation
Community and regional development
Education, training, employment, and social services .
Health
Income security
Veterans benefits and services
General government
Total
Secondary guaranteed loans .
1993
735
8
5
162
761
727
5
9
165
825*
268
3
313
75
58
2,118
684
197
34
191
673
11
1994
548
810
-1,054
497
-1,117
502
-1,159
406
47
23
2,183
22
15
1,925
24
28
2,041
26
23
18
492
279
276
2,082
2,202
3,173
2,171
ADDENDUM
1 Commitments by GNMA to guarantee securities that are backed by loans previously insured or guaranteed by the Federal Housing Administration, Department of Veterans Affairs, or Farmers Home Administration (secondary
guarantees) are excluded from the totals and shown in the addendum, with its estimated subsidy of zero.
55
SUMMARY INFORMATION: FEDERALRESEARCHANDDEVELOPMENTEXPENDITURES
NEW DIRECT LOAN OBLIGATIONS AND GUARANTEED LOAN COMMITMENTS BY FUNCTION
(In millions of dollars)
Guaranteed loan commitments
Direct loan obligations
1993
050
150
270
300
350
370
400
450
500
550
600
700
800
National Defense
International affairs
Energy
Natural resources and environment
Agriculture
Commerce and housing credit1
Transportation
Community and regional development
Education, training, employment, and social services .
Health
Income security
Veterans benefits and services
General government
Total
1,638
1,859
40
7,378
2,364
45
1,739
30
4,303
1,839
77
10,991
2,327
174
3,469
29
1,307
1,622
16,400
24,831
3,446
1,887
12
9,924
2,797
50
2,082
767
22,657
11,892
531
15,107
7,244
71,130
7,874
76,173
10,249
86,370
375
14,653
290
2,675
19,415
340
2,521
19,907
375
24,576
21,590
19,608
130,160
143,705
85,894
77,700
ADDENDUM
Secondary guaranteed loans .
Commitments by GNMA to guarantee securities that are backed by loans previously insured or guaranteed by the Federal Housing Administration, Department of Veterans Affairs, or Farmers Home Administration (secondary
guarantees) are excluded from the totals and shown in the addendum.
1
56
THE BUDGET FOR FISCAL YEAR 1994
DIRECT LOAN WRITE-OFFS AND GUARANTEED LOAN TERMINATIONS FOR DEFAULTS
In millions of dollars
Agency or Program
Direct loans:
Agricultural credit insurance (FSA)
Economic development revolving fund
Export-Import Bank
Foreign assistance loans
MARAD ship financing fund
Public Law 480 Food Aid
Railroad rehabilitation and improvement
Rural housing insurance (FSA)
Small Business Administration
Veteran's housing programs
Other
Total
Guaranteed loans:
Agricultural credit insurance (FSA)
CCC export credit guarantees
Export-Import Bank
Federal family education loans
Federal Housing Administration fund
Foreign assistance loans
Health professions guaranteed student loan
MARAD ship financing fund
Rural development insurance (RDA)
Small business administration
Veteran's housing programs
Other
Total
Defaulted guaranteed loans that result in loans receivable:
CCC export loans
Federal family education loans
Federal Housing Administration
Health professions guaranteed student loan
Small Business Administration
Veterans housing programs
Total
Grand Total
1 Average
of loans outstanding over year.
1992
actual
1,154
97
2
53
276
1993
estimate
As percentage of outstanding ksans1
1994
estimate
1992
actual
1993
estimate
1994
estimate
955
782
7.2
70.8
6.5
5.9
589
316
0.2
52.2
2.4
1.3
80
130
386
656
15
265
48
127
377
483
18
124
297
399
16
2,849
2,814
60
655
94.1
0.4
5.8
12.0
2.2
0.4
0.4
5.6
11.5
0.4
4.0
12.3
1,982
1.6
1.5
1.1
45
726
11
2,592
5,767
36
80
148
40
694
2,521
16
1.1
7.3
0.9
11.5
3,042
6,377
23
51
113
51
713
2,088
14
59
1,140
2
2,932
6,377
31
73
148
43
683
2,535
6
5.1
1.7
0.2
2.2
4.9
4.3
4.2
1.2
0.1
4.5
1.5
0.2
3.0
7.6
3.6
3.7
1.5
0.1
0.5
7.6
0.1
3.6
1.2
0.2
3.0
9.3
3.0
3.1
1.4
0.2
13,187
14,029
12,676
2.0
1.9
1.6
415
234
12
38
811
539
363
10
25
701
428
665
218
9
22
637
3.0
9.8
4.8
48.7
33.0
3.8
16.3
3.1
13.7
33.6
7.5
4.8
11.3
2.3
6.2
32.9
1,510
1,638
1,979
7.2
7.3
8.8
17,546
18,481
16,637
—
—
—
57
SUMMARY INFORMATION: FEDERAL CREDIT
APPROPRIATIONS ACTS LIMITATIONS ON CREDIT LOAN LEVELS
(In millions of dollars)
Agency or Program
LIMITATIONS ON DIRECT LOAN OBLIGATIONS
Funds Appropriated to the President:
Foreign military financing
Overseas Private Investment Corporation1
AID Private sector investment program1
Agriculture:
Farm Service Agency:
Agricultural credit insurance fund
Rural housing insurance fund
Self-help housing direct loans
Rural Development Administration:
Rural development insurance fund
Rural development loan fund
Foreign Assistance Programs:
Public Law 480 direct credit
Debt reduction (International)
Rural Electrification Administration:
Economic development loans
Rural electric and telephone
Rural telephone bank
Education:
College housing and academic facilities
Interior:
Bureau of Reclamation direct loans
Bureau of Indian Affairs revolving fund
State Department:
Repatriation Loans
Transportation:
AMTRAK Corridor Improvement Loans
Orange County (CA) toll road
Minority business resource center
Right-of-way revolving fund
Treasury:
Emergency assistance to Rhode Island
Veterans Affairs:
Direct loan
Transitional housing
Education direct loan
Native American veteran housing
Vocational rehabilitation
Environmental Protection Agency:
Abatement, control and compliance
Small Business Administration:
Export-Import Bank1
FEMA—Disaster assistance
Credit union central liquidity facility
Total, limitations on direct loan obligations
345
25
855
30
5
1,890
2,157
1,103
2,087
736
1,170
33
495
548
73
8
1,647
177
12
1,775
177
30
29
3
16
11
1
1
4
42
8
4
120
8
42
180
1
58
2
70
817
258
600
2,800
40
9,482
11,661
600
58
THE BUDGET FOR FISCAL YEAR 1994
APPROPRIATIONS ACTS LIMITATIONS ON CREDIT LOAN LEVELS-Continued
(In millions of dollars)
Agency or Program
1992
LIMITATIONS ON GUARANTEED LOAN COMMITMENTS
Funds Appropriated to the President
AID Private sector guaranteed loans1
AID housing and other credit
Overseas Private Investment Corporation1
Loan guarantees to Israel
Agriculture:
Agricultural credit insurance fund
Agricultural resource conservation demo
Rural development insurance fund
Rural housing insurance fund
Alcohol fuels credit
Commerce:
Fishing vessel obligations guarantee
Education:
Historically black colleges/universities
Health and Human Services:
Health professions graduate student
Housing and Urban Development
FHA—General and special risk
FHA—Mututal mortgage insurance
Community development guaranteed loans
Interior
Indian loan guaranty and insurance
Small Business Administration:
Business loans
Export-Import Bank1
Total, limitations on guaranteed loan commitments
56
147
375
76
150
375
2,000
2,472
10
465
330
2,229
10
235
565
30
24
290
340
10,280
60,000
225
11,292
57,146
2,000
56
117
11,521
12,550
86,251
89,115
ADDENDUM
Secondary guaranteed loan commitment limitations:
GNMA, mortgage-backed securities
1The appropriations
2 Subsequent to the
77,700
language for this program specifies a Imitation that apples to direct and guaranteed loans in total.
release of the February 17th document, "A Vision of Change for America," the Secretary of the Interior requested that Congress transfer
the $5.6 m«on in BA (which hadrepresented$47.9 mHon in guaranteed loan commitments) originallyrequestedfor this program to the BIA Construction
program. On March 9, 1993, the House Appropriations Committee approved this adjustment asrequestedby the Adminstration.
59
SUMMARY INFORMATION: FEDERAL CREDIT
DIRECT LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT
(In millions of dollars)
Estimate
Agency or Program
Agency or Program
Funds Appropriated to the President
Foreign military loan, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Foreign military financing, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
671
-21
9,255
345
9,169
715
-177
8,992
164
164
164
855
549
549
713
-86
Overseas Private Investment Corp, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Overseas Private Investment Corp, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
AID functional develop assistance, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
AID development loans revolving fund, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
-12
48
21
22
21
32
19
742
695
644
644
1,265
1,233
879
1,523
1,155
1,153
480
2,003
Rural housing insurance fund (FSA), liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
755
-907
28,338
107
-1,334
27,004
17
-1,441
25,563
Rural housing insurance fund (FSA), financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
2,039
1,370
1,364
1,364
2,101
1,904
1,888
3,253
2,649
2,512
2,482
5,735
*
»
Self-help housing land development fund (FSA), liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Self-help housing (FSA), financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
-3,531
9,322
15,722
Agricultural credit insurance fund (FSA), financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
52
-1,408
14,313
AID private sector revolving fund liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
30
-752
13,561
2
-1
18
Rural development insurance (RDA), liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Rural development insurance fund (RDA), financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
AID private sector direct loan, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Rural development loan fund (RDA), liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
AID housing/other credit guaranty, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Rural development direct loan (RDA), financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
81
47
406
110
83
313
Debt reduction (EAI) financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
623
576
576
195
129
705
Agriculture
Agricultural credit insurance fund (FSA), liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
34
-2,479
15,363
8
-2,224
13,139
5
-1,890
11,249
Commodity Credit Corp guaranteed loans, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Commodity Credit Corp export guarantee loan, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
*
•
•
*
•
*
1
1
1
1
1
1
440
240
4,635
343
156
4,791
168
-25
4,766
700
30
30
30
1,203
256
256
286
1,266
630
628
914
20
18
68
15
12
80
12
9
89
32
975
804
4,340
1,054
960
5,300
199
199
199
*
60
THE BUDGET FOR FISCAL YEAR 1994
DIRECT LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT-Continued
(In millions of dollars)
Estimate
Agency or Program
CCC—price support loans:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Public Law 480 foreign assistance programs, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Public Law 480 direct credit financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Commerce
-27
2,524
9,726
9,726
1,418
3,942
8,769
-147
3,795
161
-198
11,632
1687
10,945
-439
10,505
457
197
197
197
548
685
685
882
456
469
469
1,351
73
69
68
68
63
56
51
119
Debt reduction (EAI), financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Rural electrification and telephone revolving fund,
liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Agency or Program
905
-645
35,353
574
-964
34,389
1,647
651
642
642
1,775
882
860
1,502
Rural telephone bank, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
85
38
1,723
75
35
1,758
1,770
177
4
4
4
175
47
47
51
202
79
79
130
REA-Economic development loan, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Financial assistance corporation assistance fund, liquidating:
Obligations
Loan disbursements
Change in outstandings
EDA miscellaneous appropriations, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
NOAA, Federal ship financing fund (fishing vessels),
liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
-130
137
130
-2
64
1
-3
13
4
-4
8
-48
1,576
-48
-30
4,820
-30
4,790
2,866
1,448
13,792
2,428
545
14,337
Student financing assistance, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
120
288
-7
281
College housing/academic facilities, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
25
23
110
46
44
154
30
29
2
1
1
Defense
Defense business operations fund, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Education
737
-1,279
35,998
Rural electrification and telephone, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Rural telephone bank direct, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Economic development program, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
1,822
1,262
1,228
2,730
57
12
13
18
17
23
1,254
1,254
-23
1,230
Guarantees of SLMA obligations, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Federal Family Education Loan Program, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Federal direct loan demonstration program, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
College housing/academic facilities, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
61
SUMMARY INFORMATION: FEDERAL CREDIT
DIRECT LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT-Continued
(In millions of dollars)
Agency or Program
College housing loans, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Higher education, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Higher education facilities loans, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Estimate
1992
actual
1993
5
-39
593
*
1
-8
76
Agency or Program
1994
22
-11
582
8
-28
554
-1
-6
70
-6
64
Energy
Bonneville Power Administration fund, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
*
3
*
3
»
3
Health and Human Services
Health resources and services, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
14
4
503
22
10
513
16
3
516
Health professions graduate student loan insurance
fund, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
47
51
249
69
71
320
76
77
397
Health loan funds (health care services):
Obligations
Loan disbursements
Change in outstandings
Outstandings
1
-14
113
2
-9
104
2
-9
95
Housing and Urban Development
Flexible subsidy fund, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
67
66
281
115
113
395
Low rent public housing—loans and other expenses,
liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
-50
1,853
-52
1,801
Housing for the elderly or handicapped, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
495
440
8,472
332
272
8,745
250
248
642
-54
1,747
-64
8,681
GNMA guarantees of mortgage-backed securities,
liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
618
951
82
700
FHA mutual mortgage and cooperative housing insurance funds, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
756
2,856
798
392
3,248
FHA general and special risk insurance funds, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
1,526
980
8,196
1,350
938
9,134
1,011*
FHA general and special risk guaranteed loan, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Revolving fund (liquidating programs):
Obligations
Loan disbursements
Change in outstandings
Outstandings
45
45
42
519
543
21
-56
487
3
1
91
2*
90
BIA revolving fund for loans, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
96
-7
89
BIA revolving fund for loans, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
13
9
9
9
Nonprofit sponsor assistance, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Interior
Bureau of Reclamation loan program, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Bureau of Reclamation direct loans, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
11
11
11
20
62
THE BUDGET FOR FISCAL YEAR 1994
DIRECT LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT-Continued
(In mMons of dollars)
Agency or Program
Agency or Program
1994
1903
BIA Indian loan guaranty and insurance fund, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
10
1
43
BIA Indian loan guaranty and insurance guaranteed
loan, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Guam power liquidating account
Obligations
Loan disbursements
Change in outstandings
Outstandings
-27
125
125
125
125
-104
21
-21
-3
79
85
Railroad rehabilitation and improvement financing
funds direct loan financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Veterans Affairs
Loan guaranty revolving fund, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Loan guaranty direct loan financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Direct loan revolving fund, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
42
33
20
129
177
120
Loan disbursements
Change in outstandings
Outstandings
Transportation
8
8
8
15
Orange County (CA) toll road demonstration project,
financing:
Treasury
Miscellaneous expired accounts (WMATA), liquidating,:
Obligations
Loan disbursements
Change in outstandings
202
140
809
Amtrak corridor improvement loans, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Minority Business Resource Center direct loan,
nancing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Repatriation loans, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Right-of-way revolving fund, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
529
150
140
669
Minority business resource center, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Repatriation loans, liquidating (formerly Emergencies
in diplomatic service):
Obligations
Loan disbursements
Change in outstandings
Outstandings
Railroad rehabilitation and improvement, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
113
-268
Amtrak corridor improvement direct loans, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
State
Emergency assistance to Rhode Island, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
MarAd Federal ship financing fund, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
1992
42
42
129
177
129
177
Direct loan, financing:
Obligations
Loan disbursements
Change in outstandings
Transitional housing loans, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
536
-1,351
4,743
-602
4,141
519
-579
3,562
1,249
1,249
253
253
1,345
1,345
434
687
1,172
1,172
185
872
630
-7
21
-6
16
63
SUMMARY INFORMATION: FEDERAL CREDIT
DIRECT LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT-Continued
(In millions of dollars)
Agency or Program
Agency or Program
Guaranty and indemnity fund, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
-19
3
Guaranty and indemnity guaranteed loan, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
268
268
56
112
Small Business Administration:
Business loan fund liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
8
Native American veteran housing direct loan, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
510
510
136
249
7
7
7
13
Education loan fund, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
-2
9
Education direct loan, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Vocational rehabilitation revolving fund, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
21
13
123
Abatement, control, and compliance direct loan,
financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
-156
777
Pollution control equip fund, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Disaster loan fund, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
17
6
129
4
-7
121
42
40
72
-33
Loans to the District of Columbia for capital project:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Export-Import Bank of the United States:
Export-Import Bank, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Export-Import Bank direct loan, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
1,174
61
2,566
125
93
83
118
-177
600
30
4
67
153
-291
2,929
-498
2,431
782
391
380
380
1,760
1,193
1,095
1,474
131
-94
37
Disaster assistance direct loan, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Other Independent Agencies
NASA, Space flight, control and data communication, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Business loan fund, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Federal Emergency Management Agency:
Disaster assistance direct loan, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Vocational rehabilitation direct loan financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Environmental Protection Agency:
Abatement, control, and compliance direct loan,
liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Business direct loans, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Disaster direct bands, financing:
Obligations
Loan disbursements
Change in outstandings
Outstandings
-1
1,304
36
2,505
259
259
253
266
-325
259
-24
235
894
-303
306
-1,161
7,500
817
87
85
85
2,800
486
471
557
64
THE BUDGET FOR FISCAL YEAR 1994
DIRECT LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT—Continued
(In millions of dollars)
Agency or Program
FDIC Bank Insurance Fund:
Obligations
Loan disbursements
Change in outstandings
Outstandings
National Credit Union Administration:
Credit union share insurance fund:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Central liquidity facility,:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Community development credit union revolving
loan fund:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Tennessee Valley Authority:
Power program:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Estimate
Agency or Program
-4
182
101
131
66
101
23
23
-115
-40
141
50
50
-50
51
50
50
25
25
-4
136
15
25
-36
15
55
55
5
30
2
1
5
1
1
6
6
60
60
6
164
63
63
18
182
64
64
17
199
»
»
Seven States:
Obligations
Loan disbursements
Change in outstandings
Outstandings
152
152
-185
2,199
-2,199
Area and regional development:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Other agencies and programs, liquidating:
Obligations
Loan disbursements
Change in outstandings
Outstandings
Grand total, net direct loans:
Obligations
Loan disbursements
Change in outstandings
Outstandings
4
-47
274
4
-39
234
4
-29
205
16,401
26,070
7,003
203,363
24,831
31,612
3,091
206,454
22,657
29,419
2,196
208,651
• $500,000 or less.
1 Direct loan obligations and disbursements for these programs represent increases in their holdings of loan
assets rather than cash disbursements.
65
SUMMARY INFORMATION: FEDERAL CREDIT
GUARANTEED LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT
(In millions of dollars)
Agency or Program
Agency or Program
Funds Appropriated to the President
Foreign military loan, liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
Overseas Private Investment Corp, liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
Overseas Private Investment Corp, guaranteed loan
financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
-476
8,265
199
149
620
256
9
9
9
-517
7,747
281
30
650
307
121
121
130
AID private sector revolving fund, liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
AID private sector guaranteed loan, financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
AID housing and other credit guaranty programs,
liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
-547
7,200
564
44
3
2,043
AID housing and other credit guaranty programs
guaranteed loan, financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
Loan guarantee to Israel, financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
89
-133
1,054
56
54
74
Rural development insurance fund guaranteed loan
(RDA) financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
160
130
130
130
50
Alcohol fuels credit guaranty financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
2,038
150
90
90
90
110
36
35
126
2,000
2,000
2,000
2,000
4,000
-10
Rural electric and telephone revolving fund, liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
-13
758
Commodity Credit Corp guaranteed loans, liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
-3,795
3,936
-753
2,506
Commodity Credit Corp export guarantee, financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
5,673
5,083
5,083
5,083
4,542
4,164
3,554
6,602
Economic development revolving fund, liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
Agriculture
Agricultural credit insurance fund (FSA), liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
Agricultural credit insurance fund guaranted loan,
(FSA) financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
279
-830
4,183
32
-924
3,259
27
22
51
Rural development insurance fund (RDA)r liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
60
5
2,048
2,000
2,000
2,000
Rural housing insurance fund (FSA), liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
214
102
102
102
375
212
198
329
100
20
20
20
10
10
10
10
Rural housing insurance fund guaranteed loan,
(FSA) financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
34
31
82
32
Agricultural resource conservation demonstration
guaranteed loan, financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
Commerce
1,561
1,236
1,236
1,236
2,164
2,060
1,812
3,049
-15
41
66
THE BUDGET FOR FISCAL YEAR 1994
GUARANTEED LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT-Continued
(In mMons of dollars)
Agency or Program
Agency or Program
NOAA Federal ship financing fund, fishing vessels,
liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
NOAA Fishing vessel obligations guarantees, financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
1
-32
313
-45
268
230
24
-2
24
Education
Federal Family Education Loan Program, liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
3,815
-5,838
51,172
48
-8,767
42,405
30
-8,019
34,387
Federal Family Education Loan Program, guarantee
financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
14,653
8,849
8,443
8,443
19,415
16,091
14,643
23,086
19,550
17,738
15,062
38,148
Historically Black Colleges and Universities—financing accounts:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
357
Health and Human Services
Health resources and services, liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
Health professions graduate student loan insurance
fund, liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
Health professions graduate student loan guaranteed loan, financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
-1
-1
14
-129
1,997
290
290
290
290
12
-158
1,839
340
340
340
630
11
-174
1,665
375
375
375
1,005
Housing and Urban Development
Low-rent public housing loans and other expenses,
liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
-303
4,950
-325
4,625
-350
4^75
1992
Revolving fund for liquidating programs:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
FHA mutual mortgage and cooperative housing insurance funds, liquidating:
Commitments
New guaranteed loans
Change in outstancSngs
Outstandings
9,365
-110,384
267,673
-10,747
256,927
-8,519
248,408
FHA mutual mortgage insurance guaranteed loan, financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
55,918
32,755
32,595
32,595
57,146
47,108
45,741
78,336
64,565
53,303
49,990
128,326
FHA general and special risk insurance funds, liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
2,610
-4,435
71,266
-2,975
68,291
-3,399
64,892
FHA general and special risk guaranteed loan, financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
8,548
5,088
5,076
5,076
11,292
10,854
9,180
14,256
13,436
11,623
9,424
23,679
GNMA guarantees of mortgage-backed securities,
liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
72,164
-446
422,480
70,000
35,532
458,012
71,000
32,382
490,395
85,894
77,700
85,000
41
200
128
469
100
50
519
2,000
2,054
50
50
111
GNMA guarantees of mortgage-backed securities, financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
Community development guaranteed loans liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
Community development guaranteed loans financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
-8
341
164
11
11
11
50
50
61
67
SUMMARY INFORMATION: FEDERAL CREDIT
GUARANTEED LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT-Continued
(In millions of dollars)
Agency or Program
Agency or Program
Interior
BIA Indian loan guaranty and insurance fund, liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
-35
202
BIA Indian loan guaranty and insurance guaranteed
loan, financing1:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
-13
-12
177
117
148
142
161
56
56
45
206
Transportation
MarAd Federal ship financing fund, liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
-354
2,290
-348
1,941
Aircraft purchase loan guarantee program, liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
Miscellaneous expired acct (WMATA), liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
-348
1,593
-9
18
820
Military useful vessel obligation, financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
820
531
531
504
504
820
-27
478
Treasury
Payments to Farm Credit System Financial Assistance Corp:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
1,261
Loan guaranty guaranteed loan financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
-15,064
121,011
-7,705
13,838
-5,174
8,664
Guaranty and indemnity fund, financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
24,574
24,574
24,277
36,565
21,588
21,588
20,416
56,981
1,891
-698
13,235
-2,805
10,430
Other Independent Agencies
Small Business Administration:
Business loan fund, liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
Business guaranteed loans, financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
-13,826
107,185
-12,184
95,001
3,669
7,114
5,469
4,452
8,121
2,963
428
6,052
1,987
-934
5,118
11,521
1,839
1,556
1,556
12,550
9,795
4,882
6,438
6,352
3,878
Disaster loan fund, liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
Export-Import Bank of the United States:
Export-Import Bank, liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
Export-Import Bank guaranteed loan, financing:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
FSUC Resolution fund:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
Veterans Affairs
Loan guaranty revolving fund, liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
Guaranty and indemnity fund, liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
4
-168
501
National Credit Union Administration:
Credit union share insurance fund, liquidating:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
Tennessee Valley Authority:
Power program:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
-90
411
10
5
-64
10
-1
68
THE BUDGET FOR FISCAL YEAR 1994
GUARANTEED LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT-Continued
(In millions of dollars)
Agency or Program
Other agencies and programs:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
Subtotal, guaranteed loans (gross):
Commitments
New guaranteed loans
Change in outstandings
Outstandings
Agency or Program
-65
142
-18
103
85
216,054 221,406
177,445 195,379
-67,766
93,819
1095,443 1188,002
240,965
207,881
101,637
Less secondary guaranteed loans 2
GNMA guarantees of FHA/VA/FmHA pools:
Commitments
New guaranteed loans
Change in outstandings
Outstandings
85,894
72,164
-446
422,480
77,700
70,000
35,532
458,012
85,000
71,000
32,382
490,395
Subtotal, guaranteed loans (net):
Commitments
New guaranteed loans
Change in outstandings
Outstandings
130,160
105,281
-67,320
672,963
143,706
125,379
58,287
729,989
Total, primary guaranteed loans: *
Commitments
New guaranteed loans
Change in outstandings
Outstandings
130,160
105,281
-67,320
672,963
143,706
125,379
58,287
729,989
* $500,000 or less.
1 Subsequent to the release of the February 17th document, A Vision of Cbtngs For Anuria, the Secretary
of fte Interiorrequestedthat Congress transfer the $5.6 miMon In BA (which hadrepresented$47.9 million in
guaranteed loan commitments) origlnalyrequestedfor this program to the BIA Construction program. On March
9, 1993, the House Appropriations Committee approved this adjustment as requested by the Administration.
2 Loans guaranteed by the Federal Housing Administration, the Veterans Administration, or the Fanners Home
Administration are included above. GNMA places a secondary guarantee on these loans, so they are deducted
here to avoid double counting.
'When guaranteed loans are acquired by a budget account, they are counted as loans receivable and
shown in the dfcect loan table.
69
SUMMARY INFORMATION: FEDERAL CREDIT
LENDING AND BORROWING BY GOVERNMENT-SPONSORED ENTERPRISES (GSEs)
(In millions of dollars)
Enterprise
LENDING
Student Loan Marketing Association
Federal National Mortgage Association:
Corporation Accounts
Mortgage-backed securities
Farm Credit System:
Banks for cooperatives
Farm Credit Banks
Farm Credit System Financial Assistance Corporation1
Federal Home Loan Bank system:
Federal home loan banks
Federal Home Loan Mortgage Corporation:
Corporation accounts
Participation certificate pools
Subtotal, lending (gross)
Less loans between GSEs
Less secondary funds advanced from Federal sources:
Student Loan Marketing Association from FFB 2
Less guaranteed loans held as direct loans by:
Federal National Mortgage Association
Federal home loan banks
Federal Home Loan Mortgage Corporation ..
Banks for cooperatives
Farm Credit Banks
Obligations
New transactions
Net change
Outstandings
8,777
8,777
2,957
33,035
9,215
9,215
3,687
36,722
Obligations
New transactions
Net change
Outstandings
Obligations
New transactions
Net change
Outstandings
67,894
61,556
22,358
150,628
240,038
169,491
78,018
429,935
72,424
76,234
36,602
187,230
200,248
175,082
66,002
495,938
Obligations
New transactions
Net change
Outstandings
Obligations
New transactions
Net change
Outstandings
Obligations
New transactions
Net change
Outstandings
48,563
48,536
695
11,313
19,551
19,278
113
38,381
51,225
51,240
-50
11,264
18,509
17,103
40
38,421
Obligations
New transactions
Net change
Outstandings
242,238
242,238
-4,593
200,000
200,000
-5,695
75,000
Obligations
New transactions
Net change
Outstandings
Obligations
New transactions
Net change
Outstandings
Obligations
New transactions
Net change
Outstandings
Obligations
New transactions
Net change
Outstandings
12,605
12,605
7,723
31,629
148,211
148,211
42,919
391,762
787,877
710,691
150,190
1,167,379
17,757
17,757
8,822
40,451
163,579
163,579
43,204
434,966
732,956
710,210
152,612
1,319,991
-920
19,810
18,549
-30
4,820
-30
4,790
81
23,951
-2,428
21,523
2,508
6,000
6,000
-644
3,528
341
3,869
711
1,043
l"043
287
287
287
Obligations
New transactions
Net change
Outstandings
Obligations
New transactions
Net change
Outstandings
Obligations
New transactions
Net change
Outstandings
Obligations
New transactions
Net change
Outstandings
Obligations
New transactions
Net change
Outstandings
Obligations
New transactions
Net change
Outstandings
1,261
70
THE BUDGET FOR FISCAL YEAR 1994
LENDING AND BORROWING BY GOVERNMENT-SPONSORED ENTERPRISES (GSEs)-Continued
(In millions of dollars)
Enterprise
Student Loan Marketing Association2
Total GSE lending (net).
BORROWING
Student Loan Marketing Association2
Federal National Mortgage Association
Farm Credit System:
Banks for cooperatives
Farm credit banks
Farm Credit System Financial Assistance Corporation1
Federal Housing Finance Board:
Federal home loan banks
The Financing Corporation
Resolution Funding Corporation
Federal Home Loan Mortgage Corporation .
Subtotal, borrowing (gross)
Less borrowing from other GSEs
Less borrowing from Federal sources:
Student Loan Marketing Association from F F B 2 .
Less investment in Federal Securities
Less borrowing for guaranteed loans held as direct loans by:
Federal National Mortgage Association
Federal home loan banks
Federal Home Loan Mortgage Corporation
Banks for cooperatives
Farm Credit Banks
Student Loan Marketing Association2
Total GSE borrowing (net)
Obligations
New transactions
Net change
Outstandings
2,987
28,215
3,717
31,932
Obligations
New transactions
Net change
Outstandings
787,877
710,692
145,210
1,080,985
732,957
710,210
151,012
1,231,999
Net change ..
Outstandings
Net change ..
Outstandings
1,980
43,651
105,290
585,167
4,360
48,011
98,785
683,952
Net change ..
Outstandings
Net change ..
Outstandings
Net change ..
Outstandings
722
12,789
375
40,717
-386
12,403
-598
40,119
Net change ..
Outstandings
Net change ..
Outstandings
Net change ..
Outstandings
Net change ..
3,702
110,754
1
8,137
-3
30,083
i"261
3,246
114,000
2
8,139
-2
30,081
57,212
485,724
162,619
1,422,429
Net change
Outstandings ,
Net change ...
Outstandings ,
428,512
160,236
,261,071
-920
19,810
Net change ...
Outstandings ,
Net change ...
Outstandings ,
-30
4,820
4,495
10,566
Net change ...
Outstandings
Net change ..,
Outstandings
Net change ..,
Outstandings
Net change ..,
Outstandings
Net change ...
Outstandings
Net change ..,
Outstandings
81
23,951
2,508
6,000
-644
3,528
711
1,043
287
287
2,987
28,215
-2,428
21,523
Net change ..
Outstandings
150,761
1,162,851
161,179
1,324,030
18^549
-30
4,790
-160
10,406
eiooo
341
3,869
1,043
287
3,717
31,932
1 For the purposes of this table FAC lending is assumed to equal borrowing. It is netted out under loans (or borrowing) between GSEs. FAC was reclassified from a GSE to a Federal
agency as of October 1, 1992. Its loans and debt were accordingly reclassified as Federal loans and Federal debt This reclassification does not constitute repayment of GSE loans or
2 All SLMA lending financed through the FFB is counted as direct loans. All SLMA loans shown in the table above are guaranteed by the Federal Government and therefore the portion
not financed by the FFB is counted as guaranteed loans. To avoid double counting, two deductions were made in this table: one for the amountfinancedthrough the FFB, and the other
for the remainder.
FEDERAL INVESTMENT OUTLAYS
Introduction
Federal investment spending plays an important role
in enhancing long-term economic growth and improving
government operations. This section identifies investment outlays in the budget, divided according to the
types of investment and the major programs for which
investment takes place.
Investment outlays are those that yield long-term
benefits. They take several forms and are made for
many purposes. They are in the form of grants to State
and local governments and direct Federal outlays. They
can be for physical investment, which yields a stream
of services over a period of years; or for research, development, education, and training, which are less tangible
but also provide long-term benefits.
There are two inherent problems in the classification
of these data, one involving grants to State and local
governments, and the other involving spending that
could be shown in more than one category.
For some grants to State and local governments, the
recipient jurisdiction, not the Federal Government, ultimately determines whether the money is used to finance investment or current programs. This analysis
classifies all of the outlays in the category where the
recipient jurisdictions are expected to spend most of
the money. Hence, shared revenues are classified as
current spending, although some may be spent by recipient jurisdictions on physical investment. Community
development block grants are classified as physical investment, although some may be spent for current purposes.
Some spending could be classified into more than
one category. For example, outlays for the construction
of research facilitiesfinancethe acquisition of physical
assets, but they also contribute to research and development. To avoid double counting, the outlays are classified in the category that is most commonly recognized
as investment. Consequently outlays for the conduct
of research and development do not include outlays for
research facilities, because these outlays are included
in the category for physical investment. Similarly, physical investment and research and development related
to education and training are included in the categories
of physical assets and the conduct of research and development.
The Federal Credit Reform Act of 1990 changed the
treatment of loans obligated or guarantees committed
in 1992 or later. For these direct and guaranteed loans,
the estimated subsidy value of the assistance is included as budget outlays beginning in 1992 and related
cash flows are not included. The subsidies are classified
according to their program purpose, such as for construction, education and training, or non-investment
outlays.
The Federal Capital Investment Program Information
Act of 1984 requires a report that includes ten-year
projections of physical investment outlays and other
information. That report was included in Budget Baselines, Historical Data, and Alternatives for the Future
(January 1993).
Composition of Federal Investment Outlays
Major Federal Investment
The composition of major Federal investment outlays
is shown in the accompanying table. They include major
public physical investment, the conduct of research and
development, and the conduct of education and training. These outlays were $233.8 billion in 1992. They
are estimated to be $246.8 billion in 1993 and $248.1
billion in 1994. Between 1992 and 1994, defense investment outlays decline $8.6 billion, or 7 percent, and
nondefense investment outlays increase by $22.9 billion,
or 20 percent. The data are shown in more detail in
the two tables at the end of this section.
Physical investment.—Outlays for major public
physical capital investment (hereafter referred to as
physical investment outlays in the text) were $131.9
billion in 1992. They are estimated to be $133.5 billion
in 1993 and $132.1 billion in 1994. Physical investment
outlays are primarily outlays for construction, rehabilitation, and major equipment. Direct physical investment outlays by the Federal Government were $102.6
billion in 1992. They are estimated to be $99.3 billion
in 1993 and $93.4 billion in 1994. Grants to State and
local governments for physical investment were $29.3
billion in 1992. They are estimated to be $34.2 billion
in 1993 and $38.7 billion in 1994.
Direct physical investment outlays by the Federal
Government are primarily for national defense, estimated to be $77.0 billion in 1993, declining to $70.5
billion in 1994. Almost all of these outlays, or an estimated $64.5 billion in 1994, are for the procurement
of weapons and other equipment, and the remainder,
$5.9 billion, is primarily for construction of military
bases and family housing for military personnel.
Outlays for direct physical investment for nondefense
purposes are estimated to be $22.4 billion in 1993 and
$22.9 billion in 1994. The 1994 outlays include $14.9
billion for construction and rehabilitation. These outlays are largely for water, energy, and natural resources projects of the Corps of Engineers, the Department of Interior, the Tennessee Valley Authority, and
the power administrations in the Department of Energy; for the construction and rehabilitation of veterans
hospitals and Postal Service facilities; and for space
and science programs. Outlays for the acquisition of
major equipment are estimated to be $7.3 billion in
1994. The largest items are for the air traffic control
system, space programs, and the Postal Service. Out71
72
THE BUDGET FOR FISCAL YEAR 1994
COMPOSITION OF FEDERAL INVESTMENT OUTLAYS
(In billions of dollars)
1992
actual
MAJOR FEDERAL INVESTMENT OUTLAYS
Major public physical capital investment:
Direct
National defense
Nondefense
Subtotal, direct mayor public physical capital investment
82.4
20.3
Estimate
1993
77.0
22.4
1994
70.5
22.9
102.6
99.3
93.4
29.3
34.2
38.7
131.9
133.5
132.1
38.2
26.6
40.7
27.9
41.6
28.8
Subtotal, conduct of research and development
Conduct of education and training:
Grants to State and local governments
Direct
64.7
68.6
70.4
20.4
16.8
24.7
20.0
25.5
20.0
Subtotal, conduct of education and training
37.2
44.7
45.6
233.8
246.8
248.1
120.8
113.0
118.0
128.8
112.2
135.9
Total, msgor Federal investment outlays
233.8
246.8
248.1
Miscellaneous physical investment:
Commodity inventories
Other physical investment (nondefense, direct)
-0.9
5.1
-0.4
6.0
-0.5
5.8
Grants to State and local governments
Subtotal, major public physical capital investment
Conduct of research and development
National defense
Nondefense
Major Federal investment outlays
MEMORANDUM
Major Federal investment outlays:
National defense
Nondefense
Total, miscellaneous physical investment
Total, Federal investment outlays, including miscellaneous physical investment....
lays for the purchase of land and buildings are estimated to be $0.7 billion in 1994, largely for the Federal
buildings fund in the General Services Administration.
Grants to State and local governments for physical
investment are estimated to be $34.2 billion in 1993,
increasing to $38.7 billion in 1994. About half of these
outlays, or $19.5 billion in 1994, are to assist with
the Federal-aid highway programs. Other major grants
for physical investment are for public housing, sewage
treatment plants, community development, airports,
and mass transit.
4.3
5.6
5.3
238.1
252.5
253.4
Nondefense outlays for the conduct of research and
development are estimated to be $27.9 billion in 1993
and $28.8 billion in 1994. This is almost entirely direct
spending by the Federal Government, and is largely
for the space programs, the National Science Foundation, health research, and research for energy facilities.
Additional information on research and development is
in the section entitled "Federal Research and Development Expenditures."
Conduct of education and training.—Outlays for
the conduct of education and training are estimated
Conduct of research and development.—Outlays to be $44.7 billion in 1993 and $45.6 billion in 1994.
for the conduct of research and development are esti- These outlays add to the stock of human capital by
mated to be $68.6 billion in 1993 and $70.4 billion developing a more skilled and productive labor force.
in 1994. These outlays are devoted to increasing our Grants to State and local governments for this category
basic scientific knowledge and promoting related re- are estimated to be $25.5 billion in 1994, more than
search and development. They increase our national half of the total. They are primarily for the disadvansecurity, improve the marginal productivity of capital taged and the handicapped, and for vocational and
and labor for both public and private purposes, and adult education. Direct education and training outlays
enhance the quality of life. Approximately three-fifths by the Federal Government are estimated to be $20.0
of these outlays, an estimated $41.6 billion in 1994, billion in 1994. Programs in this category are primarily
are for national defense. Physical investment for re- aid for higher education through student financial assearch and development is included in the physical in- sistance, loan subsidies, the veterans GI bill, and health
training programs.
vestment category.
73
SUMMARY INFORMATION: FEDERAL INVESTMENT OUTLAYS
This category does not include outlays for education
and training of Federal civilian and military employees.
Outlays for education and training that are for physical
investment and the conduct of research and development are in the categories for physical investment and
the conduct of research and development.
Miscellaneous Physical Investment
In addition, several miscellaneous categories of physical investment outlays are shown in the accompanying
table. They are generally unrelated to improving government operations or enhancing economic activity.
Sales of commodity inventories are estimated to exceed
purchases by $0.5 billion in 1994. Outlays in this category are for the purchase or sale of agricultural products pursuant to farm price support programs, purchases of oil for the strategic petroleum reserve, and
other purposes.
Outlays for other miscellaneous physical investment
are estimated to be $5.8 billion in 1994. This category
includes primarily conservation programs and assets acquired and sold as collateral on defaulted loans. These
outlays are entirely for direct spending.
Historical data on Federal investment outlays can
be found in Budget Baselines, Historical Data, and Alternatives for the Future (January 1993) in Part Five,
"Historical Tables." Section 9 contains historical data
on physical investment, and Section 10 contains historical data on the conduct of research and development
and the conduct of education and training.
Detailed Tables
The following two tables provide detail on the composition of physical and other investment outlays. They
provide two basic displays. The first divides data between national defense and nondefense investment outlays, and the second divides data between investment
grants for State and local governments and direct Federal investment outlays.
FEDERAL INVESTMENT OUTLAYS: DEFENSE AND NONDEFENSE PROGRAMS
(In millions of dollars)
1992
actual
MAJOR FEDERAL INVESTMENT OUTLAYS:
NATIONAL DEFENSE:
Major public physical investment:
Construction and rehabilitation:
Military construction
Family housing
Atomic energy defense activities and other
3,588
298
1,431
4,361
533
1,278
3,924
849
1,234
Subtotal, construction and rehabilitation
5,317
6,172
6,007
Acquisition of major equipment:
Procurement
Atomic energy defense activities and other
74,617
2,657
68,346
2,656
62,032
2,496
Subtotal, acquisition of major equipment
77,274
71,002
64,528
-7
-6
-9
82,583
77,168
70,526
35,504
2,666
38,065
2,683
38,925
2,706
38,170
40,748
41,631
82
87
53
120,836 118,004
112,211
Purchase or sale of land and structures
Subtotal, major public physical investment
Conduct of research and development
Defense military
Atomic energy and other
Subtotal, conduct of research and development
Conduct of education and training (civilian)
Subtotal, national defense investment
NONDEFENSE:
Major public physical investment:
Construction and rehabilitation:
Highways
Mass transportation
Rail transportation
Air transportation
Water transportation
Community development block grants
Other community and regional development ....
Pollution control and abatement
Water resources
Other natural resources and environment
Housing assistance
General science, space, and technology
Energy
Veterans hospitals and other health
Postal Service
Federal buildings fund
International affairs
Other programs
3,653
1,332
931
1,051
355
1,177
3,239
1,506
780
1,299
393
1,221
Subtotal, construction and rehabilitation
41,987
47,896
52,854
Acquisition of major equipment:
Air transportation
Other transportation
Space flight, research, and supporting activities
General science and basic research
Veterans medical care
Postal Service
General supply fund
Other
1,961
392
1,771
60
554
558
354
509
2,015
342
1,538
116
578
750
440
664
2,208
443
1,494
135
626
1,266
383
761
Subtotal, acquisition of major equipment
6,161
6,442
7,316
3
537
4
1,343
3
735
Purchase or sale of land and structures
International affairs
Other
Subtotal, purchase or sale of land and
structures
Subtotal, major public physical investment
17,468
2,796
156
2,185
137
3,811
1,329
3,1
2,720
875
3,122
1,118
19,543
2,995
269
2,005
149
4,983
1,497
3,861
2,342
914
4,691
1,165
1994
3,760
1,028
1,284
974
325
1,053
Other physical assets (grants)
15,080
2,763
180
1,742
143
3,090
987
3,405
2,486
585
2,192
909
Estimate
1993
Conduct of research and development:
General science, space, and technology:
NASA
National Science Foundation
Other general science
Subtotal, general science, space, technology
Energy
Transportation:
Department of Transportation
NASA
541
1,346
738
654
682
693
49,342
56,366
61,601
6,641
1,733
784
6,740
2,018
804
6,972
2,170
843
9,157
9,561
9,986
2,593
2,466
2,464
373
976
505
1,090
627
1,237
74
THE BUDGET FOR FISCAL YEAR 1994
FEDERAL INVESTMENT OUTLAYS: DEFENSE AND NONDEFENSE PROGRAMS-Continued
(In millions of dollars)
1992
actual
Subtotal,transportation
Health:
National Institutes of Health
Ail other health
Subtotal, health
Agriculture
Natural resources and environment
International affairs
All other research and development
Subtotal, conduct of research and development
Estifirate
1993
1,348
1,595
1,865
7,936
1,721
8,696
1,489
9,255
1,025
9,656
10,184
10,280
1,070
1,593
311
829
1,102
1,666
381
901
1,137
1,743
342
982
26,558
27,857
28,798
Conduct of education and training:
Education, training, employment and social services:
Elementary, secondary, and vocational education
Higher education
Research and general education aids
Training and employment
Social services
12,332
11,252
1,775
4,894
4,026
14,626
13,610
1,929
6,039
5,246
15,228
13,045
2,021
5,740
5,856
Subtotal, education, training, and social
services
34,280
41,450
41,890
113
145
137
Income security
1992
actual
1994
Veterans education, training, and rehabilitation ....
Health
Intenational affairs
Other education and training
Subtotal, conduct of education and training
Estimate
1993
1994
995
748
169
792
1,030
781
219
988
1,393
819
244
1,031
37,096
44,615
45,514
Subtotal, nondefense investment
112,996 128,838 135,914
Total, major Federal investment outlays
233,832 246,842 248,125
ADDENDUM: Miscellaneous physical investment
Commodity inventories:
Agriculture
Strategic petroleum reserve and other
Subtotal, commodity inventories
Other physical investment (direct)
Subtotal, miscellaneous physical investment ..
Total investment
cellaneous
outlays,
including
mis-
-1,062
187
-498
64
-162
-388
-875
-434
-550
5,129
6,043
5,820
4,254
5,609
5,271
238,086 252,451 253,395
75
SUMMARY INFORMATION: FEDERAL INVESTMENT OUTLAYS
FEDERAL INVESTMENT OUTLAYS: GRANT AND DIRECT FEDERAL PROGRAMS
(In millions of dollars)
1992
actual
MAJOR FEDERAL INVESTMENT OUTLAYS:
GRANTS:
Major public physical investment:
Construction and rehabilitation:
Highways
Mass transportation
Rail transportation
Air transportation
Pollution control and abatement
Other natural resources and environment
Community development block grants
Other community and regional development ....
Housing assistance
Natipnal defense
Other construction
Subtotal, construction and rehabilitation
Other physical assets
Subtotal, major public physical capital
Conduct of research and development
.
Conduct of education and training:
Elementary, secondary, and vocational education
Higher education
Research and general education aids
Training and employment
Social services
National defense (civilian)
Other
Subtotal, conduct of education and training
Subtotal, grants for investment
DIRECT FEDERAL PROGRAMS:
Major public physical investment:
Construction and rehabilitation:
National defense
International affairs
General science, space, and technology
Water resources projects
Other natural resources and environment
Energy
Transportation
Veterans hospitals and other health facilities ...
Postal Service
Federal Prison System
Federal buildings fund
Other construction
Subtotal, construction and rehabilitation
Acquisition of major equipment:
National defense
General science and basic research
Space flight, research, and supporting activities
Energy
Postal Service
Air transportation
Water transportation (Coast Guard)
Hospital and medical care for veterans
Estimate
1993
1994
General supply fund
Other
Subtotal, acquisition of mayor equipment
354
427
440
437
83,435
77,443
-7
3
537
-6
4
1,343
533
1,340
102,629
99,326
38,170
311
25,951
40,748
381
27,111
15,038
2,763
14
1,672
2,631
138
3,090
738
2,132
225
202
17,426
2,796
17
2,106
2,664
250
3,811
918
3,101
210
227
19,522
2,995
52
1,895
2,815
219
4,983
1,050
4,260
57
207
28,642
33,526
38,055
654
682
693
29,296
34,208
38,748
Subtotal, conduct of research and development
64,432
68,241
296
365
408
11,627
96
292
3,982
3,878
6
495
13,736
112
289
4,980
5,041
6
540
14,340
66
311
4,668
5,596
6
533
20,376
24,704
25,519
Conduct of education and training:
Elementary, secondary, and vocational education
Higher education
Research and general education aids
Training and employment
Health
Veterans education, training, and rehabilitation ....
National defense
International affairs
i
Other
706
11,156
1,483
912
748
995
77
169
558
13,498
1,640
1,059
781
1,030
81
219
798
49,967
59,277
64,675
Subtotal, conduct of education and training
16,803
19,998
5,092
325
909
2,374
1,334
3,760
420
988
1,284
517
974
685
5,962
355
1,118
2,522
1,839
3,653
395
1,271
931
605
1,051
839
5,950
393
1,165
2,179
1,905
3,239
497
1,434
780
771
1,299
1,193
18,661
20,542
20,805
77,274
60
1,771
259
558
1,961
215
554
71,002
116
1,538
277
750
2,015
290
580
64,528
135
1,494
379
1,266
2,208
266
627
Purchase or sale of land and and structures:
National defense
International affairs
Domestic
Subtotal, purchase or sale of land and
structures
Subtotal, major public physical investment
Conduct of research and development:
National defense
International affairs
Domestic
Subtotal, direct Federal major investment outlays
183,865 187,565
Total, major Federal investment outlays
233,832 246,842
ADDENDUM: Miscellaneous physical investment:
Commodity inventories:
Emergency energy preparedness
Commodity Credit Corporation
Other
132
-1,062
55
137
-498
-73
-875
-434
1,6
3,117
1,781
3,709
4,786
5,490
131
211
53
500
Subtotal, other physical investment
5,129
6,043
Subtotal, miscellaneous physical investment ..
4,254
5,609
Subtotal, commodity inventories
Other physical investment:
Department of Agriculture:
Conservation reserve program
Other
Subtotal, Department of Agriculture
Department of the Interior
Other
Total Federal investment outlays, including
miscellaneous
238,086 252,451
FEDERAL AID TO STATE AND LOCAL GOVERNMENTS1
State and local governments have a vital constitutional responsibility in providing government services.
They have the major role in providing domestic public
services, such as public education, law enforcement,
roads, water supply, and sewage treatment. The Federal Government contributes directly toward that role
both by promoting a healthy economy and by providing
grants, loans, and tax subsidies to State and local governments.
Federal grants help State and local governments finance programs covering most areas of domestic public
spending, including income support, capital spending,
and education and social services. Federal grant outlays
were $178.1 billion in 1992 and are estimated to be
$226.1 billion in 1994.
Grant outlays for payments for individuals are estimated to be 63 percent of total grants in 1994; for
physical capital, 17 percent; and for all other purposes,
largely education, training, and social services, 20 percent.
States and localities use loans and guarantees primarily for rural development. As a result of credit reform concepts enacted in the Federal Credit Reform
Act of 1990, the subsidies for direct loans and loan
guarantees obligated or committed in 1992 and later
are recorded in the budget as budget authority and
outlays. Therefore, the credit subsidies to State and
local governments are recorded as grants to these governments and included in this analysis in the grant
totals. Direct loan and loan guarantee subsidies to
State and local governments are estimated to be $0.1
billion in 1993 and in 1994.
Information on the credit reform concepts and other
Federal credit activities appears in the Summary Information section, "Federal Credit."
Federal aid to State and local governments is also
provided through tax expenditures. Tax expenditures
are a preferential exception to the baseline provisions
of the tax structure. The two major tax expenditures
benefiting State and local governments are the deductibility of most State and local taxes, except sales and
excise taxes, and the exclusion of interest on State and
local securities from Federal taxation. Federal aid to
State and local governments through tax expenditures
is estimated to be $61.8 billion in 1993 and $64.5 billion
in 1994 on an outlay equivalent basis.
A detailed discussion of the measurement and definition of tax expenditures and a complete list of the
amount of specific tax expenditures are in Appendix
Two, "Tax Expenditures," of Budget Baselines, Historical Data, and Alternatives for the Future (January
1993). State and local tax expenditures are displayed
separately at the end of Table 2-1 in that Appendix.
Federal Grants by Function and Agency
The "Federal Grants by Function" table shows a functional distribution of Federal grant outlays as proposed
in this budget. The functions with the largest amount
of grants are health and income security, with combined grant outlays of $148.8 billion or 66 percent of
total grant outlays in 1994.
The "Federal Grants by Agency" table shows the distribution of grants by agency. Grant outlays for the
Department of Health and Human Services are estimated to be $128.6 billion in 1994, 57 percent of total
grants, much more than any other agency.
1 Federal aid to State and local governments is defined as the provision of resources
by the Federal Government to support a State or local program of governmental service
to the public. The three primary forms of aid are grants, loans, and tax expenditures.
FEDERAL GRANTS BY FUNCTION
(Outlays in billions of dollars)
Estimate
1992
National defense
Energy
Natural resources and environment
Agriculture
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and social services
Health
Income security
Veterans benefits and services
Administration of justice
General government
Total outlays
1993
1994
1995
1997
1998
0.3
0.4
4.2
1.1
0.1
0.5
4.4
1.1
0.1
0.6
4.6
1.1
0.1
0.5
4.6
1.0
0.1
0.5
4.7
1.1
0.1
0.5
4.9
1.1
*
*
20.6
4.5
28.8
71.4
43.5
0.2
1.0
2.3
23.5
6.9
33.9
84.5
47.7
0.2
1.2
2.4
25.7
7.2
34.6
96.7
52.2
0.2
1.1
2.4
25.9
7.3
36.6
109.7
54.7
0.3
1.5
2.4
25.1
6.4
40.3
123.6
57.0
0.2
1.6
2.4
25.1
6.1
42.7
138.6
59.2
0.2
1.8
2.5
25.7
6.1
44.7
154.0
61.6
0.2
1.9
2.5
178.1
206.4
226.1
244.8
262.8
282.6
303.4
0.3
0.4
3.9
1.1
*
*
*
*
1996
*
*$50 million or less.
77
78
THE BUDGET FOR FISCAL YEAR 1994
(medicaid) and income security and restraint in most
other areas.
Section B of the table shows the composition of grants
Estimate
1992
Agency
divided
into three major categories: payments for indiactual
1993
1994
viduals, physical capital, and other grants.2 Grant out15.2
16.3 lays for payments for individuals, which are mainly
14.0
Department of Agriculture
0.4
0.2
0.3
Department of Commerce
entitlement programs in which the Federal government
13.7
16.6
16.0
Department of Education
and the States share the costs, have grown significantly
0.2
0.2
0.3
Department of Energy
as a percent of total grants. In 1980, they were 36
114.2
128.6
98.2
Department of Health and Human Services
18.4
21.3 percent of the total, and by 1992 they had grown to
15.6
Department of Housing and Urban Development
1.7
1.7 62 percent of the total. These grants are distributed
1.6
Department of the Interior
0.9
Department of Justice
0.8
1.0
7.1
7.6 through State or local governments to provide cash or
8.1
Department of labor
in-kind benefits that constitute income transfers to indi25.7
Department of Transportation
20.6
23.5
0.5 viduals or families. The major grant in this category
0.5
0.5
Department of the Treasury
3.2
3.3
3.0
Environmental Protection Agency
is medicaid, which had outlays of $67.8 billion in 1992,
1.0
0.9
2.3
Federal Emergency Management Agency
increasing to an estimated $80.5 billion in 1993. Family
1.7
1.8
1.9
Other agencies
support payments to States (AFDC), child nutrition pro206.4
226.1
178.1
Total
grams, and housing assistance are also large grants
in this category. All programs in this category are idenHistorical Perspectives
tified by footnote in the detailed "Federal Grants to
In recent decades, Federal aid to State and local gov- State and Local Governments—Budget Authority and
ernments has become a major factor in the financing Outlays" table, at the end of this section.
of certain government functions. The rudiments of the
Grants for physical capital assist States and localities
present system date back to the Civil War. The Morrill with construction and other physical capital activities.
Act, passed in 1862, established the land grant colleges The major capital grants are for highways, but there
and instituted certain federally required standards, as are also grants for airports, mass transit, sewage treatis characteristic of the present grant system. Federal ment plant construction, community development, and
aid was later initiated for agriculture, highways, voca- other facilities. Grants for physical capital were almost
tional education and rehabilitation, forestry, and public half of total grants in 1960, shortly after grants began
health. In the depression years, Federal aid was ex- for construction of the Interstate Highway System. The
tended to meet income security and other social welfare relative share of these outlays has declined, as other
needs. However, Federal grants did not become a sig- grants have grown. In 1992, grants for physical capital
nificant factor in Federal Government expenditures were 16 percent of total grants.
until after World War II.
The other grants are primarily for education, trainThe accompanying table displays trends in Federal ing, employment, and social services. These grants ingrants to State and local governments. Section A shows creased to 45 percent of total grants by 1975, but dethe percentage distribution of Federal grants by func- clined to 22 percent of total grants in 1992.
tion. Functions with a substantial amount of grants
Section B of the table also shows these three catare shown separately. Grants in the functions for na- egories in constant dollars. In constant FY 1987 dollars,
tional defense, commerce and housing credit, energy, total grants were $127.6 billion in 1980. They declined
veterans benefits and services, and the administration in the 1980's but by 1992 were $146.9 billion, an averof justice are relatively small and are combined in the age annual increase of 1.2 percent. From 1980 to 1992,
"other functions" line in the table.
payments for individuals grew from $46.2 billion to
Federal grants for transportation increased to 43 per- $88.9 billion, an average annual increase of 5.6 percent;
cent of all Federal grants in 1960 with initiation of grants for physical capital decreased from $27.7 billion
aid to States to build the Interstate Highway System to $25.9 billion, an average annual decrease of 0.6 perin the late 1950s.
cent, and other grants decreased from $53.7 billion to
By 1970 there had been significant increases in the $32.2 billion, an average annual decrease of 4.2 percent.
relative share for education, training, employment, soSection C of this table shows grants as a percent
cial services, and health (largely medicaid).
of Federal outlays, State and local expenditures, and
In the early and mid-1970s, major new grants were gross domestic product. Grants declined as a percent
created for natural resources and environment (con- of total Federal outlays from 15 percent in 1980 to
struction of sewage treatment plants), community and 13 percent in 1992 and, as a percent of Federal domesregional development (community development block tic programs, from 22 percent in 1980 to 20 percent
grants), and general government (general revenue shar- in 1992.
ing).
2 Certain grants are classified in the budget as both payments for individuals and physical
In the 1980s changes in the relative shares among capital
spending. In the text and tables in this section, these grants are included in the
functions reflect steady growth of grants for health category for physical capital spending.
FEDERAL GRANTS BY AGENCY
(Outlays in billions of dollars)
79
SUMMARY INFORMATION: FEDERAL AID TO STATE AND LOCAL GOVERNMENTS
TRENDS IN FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS
(Outlays; dollar amounts in billions)
Actual
1960
A. Percentage distribution of grants by function:
Natural resources and environment
Agriculture
Transportation
Community and regional development
Education, training, employment, and social services
Health
Income security
General government
Other
2%
3
43
2
7
3
38
2
*
1970
2%
5
38
6
10
6
32
2
1
1975
2%
3
19
7
27
16
24
2
1
5%
1
12
6
24
18
19
14
2
Estimate
1960
6%
1
14
7
24
17
20
9
1
1965
4%
2
16
5
17
23
26
6
1
1990
3%
1
14
4
17
32
26
2
1
1992
2%
1
12
3
16
40
24
1
1
1993
2%
1
11
3
16
41
23
1
1
1995
1994
1996
1997
1996
2%
2%
2%
2%
2%
11
3
15
43
23
1
1
11
3
15
45
22
1
1
10
2
15
47
22
1
1
9
2
15
49
21
1
1
8
2
15
51
20
1
1
*
*
*
*
*
100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Total
B. Composition:
Current dollars:
Payments for individuals *»2
Physical capital2
Other grants
Total
Percentage of total grants:
Payments for individuals ! » 2
Physical capital2
Other grants
Total
Constant (1987) dollars:
Payments for individuals
Physical capital2
Other grants
1965
2.5
3.3
1.2
3.7
5.0
2.2
8.7
7.1
8.3
16.8
10.9
22.2
32.6
22.5
36.3
7.0
10.9
24.1
49.8
91.5 105.9 135.4 178.1 206.4 226.1 244.8 262.8 282.6 303.4
35%
47
17
34%
46
20
36%
29
34
34%
22
45
36%
25
40
49.3
24.9
31.7
47%
23
30
75.7 110.0 126.7 142.1 157.0 172.3 188.9 206.0
27.2 29.3 34.2 38.7 40.6 42.0 43.6 45.5
32.5 38.8 45.5 45.3 47.1 48.5 50.0 51.9
56%
20
24
62%
16
22
61%
17
22
63%
17
20
64%
17
19
66%
16
18
67%
15
18
68%
15
17
100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
2
9.0
13.8
6.4
12.5
19.5
9.8
24.7
21.9
26.9
35.1
20.6
49.6
46.2
27.7
53.7
52.9
25.8
34.2
66.1
24.9
28.6
88.9
25.9
32.2
99.3 107.7 114.9 121.6 128.7 135.5
29.4 32.2 32.6 32.5 32.6 32.8
36.7 35.3 35.5 35.2 35.1 35.1
29.1
41.8
73.6 105.4 127.6 113.0 119.6 146.9 165.3 175.2 183.0 189.3 196.4 203.5
C. Total grants as a percent of:
Federal outlays:
Total
Domestic programs3
State and local expenditures
Gross domestic product
8%
18%
15%
1%
9%
18%
16%
2%
12%
23%
20%
2%
15%
22%
24%
3%
15%
22%
28%
3%
11%
18%
23%
3%
11%
17%
20%
2%
13%
20%
22%
3%
14%
21%
N/A
3%
15%
22%
N/A
3%
16%
22%
N/A
4%
16%
23%
N/A
4%
17%
23%
N/A
4%
17%
24%
N/A
4%
D. As a share of total State and local capital spending:
Federal capital grants
State and local source financing
25%
75
25%
75
25%
75
26%
74
37%
63
31%
69
23%
77
23%
77
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Total
Toy
100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
N/A-Not a
•0.5 percent or less.
1 For an identification of accounts in this category, see the "Federal Grants to Stale and Local Governments, Budget Authority and Outlays" table, inducting Its footnotes.
2 Grants that are both payments for individuals and capital investment are shown under capital investment
3 Excludes national defense, international affaire, net interest, and undistributed offsetting receipts.
As a percent of total State and local expenditures,
grants declined from 28 percent in 1980 to 22 percent
in 1992.
Section D shows the relative contribution of physical
capital grants in assisting States and localities with
capital spending. Federal capital grants declined as a
percent of State and local capital spending from 37
percent in 1980 to 23 percent in 1992, reflecting restraint in Federal spending and increased capital
spending by States and localities financed from their
own sources, such as taxes or borrowing.
Other Information on Federal Aid to State and
Local Governments
Additional information regarding aid to State and
local governments can be found elsewhere in this budget and in other documents.
• Major public physical capital investment programs
providing Federal grants to State and local governments are described in the Summary Information section, "Federal Investment Outlays."
• Data for summary and detailed grants to State
and local governments can be found in many sections of the Historical Tables, published in Budget
Baselines, Historical Data, and Alternatives for the
Future (January 1993). Section 12 is devoted exclusively to grants to State and local governments.
Additional information on grants can be found in
80
THE BUDGET FOR FISCAL YEAR 1994
Section 6 (Composition of Federal Government
• Federal Expenditures by State, a report prepared
Outlays); Section 9 (Federal Government Outlays
by the Bureau of the Census, shows Federal
for Major Physical Capital Investment); Section
spending by State for grants and other spending
10 (Federal Government Outlays for the Conduct
for the most recently completedfiscalyear.
of Research and Development and for the Conduct
• Consolidated Federal Funds Report (CFFC) is an
of Education and Training); Section 11 (Federal
annual document that shows the distribution of
Government Payments for Individuals); and SecFederal spending by State, county areas, and by
tion 15 (Total (Federal and State and Local) Govlocal governmental jurisdictions. It is released by
ernment Finances).
the Bureau of the Census in the Spring.
In addition to these sources, a number of other
• The Federal Assistance Awards Data System
sources of information are available that use slightly
(FAADS) provides computerized information about
different concepts of grants, provide State-by-State incurrent grant funding. Data on all direct assistformation, or provide information on how to apply for
ance awards are provided quarterly by the Bureau
Federal aid.
of the Census to the States and to the Congress.
• Government Finances, published annually by the
• The Catalog for Federal Domestic Assistance is a
Bureau of the Census in the Department of Comprimary reference source for communities wishing
merce, provides data on public finances, including
to apply for grants and other domestic assistance.
Federal aid to State and local governments.
The Catalog is prepared by the General Services
• The Survey of Current Business, published monthAdministration with data collected by the Office
ly by the Bureau of Economic Analysis in the Deof Management and Budget and is available from
partment of Commerce, provides data on the nathe Government Printing Office/The basic edition
tional income and product accounts (NIPA), a
of the Catalog is usually published in June and
broader statistical concept encompassing the enan update is generally published in December. It
tire economy. These accounts include data on Fedcontains a detailed listing of grant and other aseral grants to State and local governments. Data
sistance programs; discussions of eligibility criusing the NIPA concepts appear in this budget
teria, application procedures, and estimated obliin the Summary Information section, "National Ingations; and related information.
come and Product Account Presentation."
• Budget Information for States (BIS) provides estiDetailed Federal Aid Table
mates of State funding allocations for the largest
formula grant programs for the past, present, and
The following table, "Federal Grants to State and
budget year. These programs comprise approxi- Local Governments—Budget Authority and Outlays,"
mately 85 percent of total Federal aid to State provides detailed budget authority and outlay data for
and local governments. The document is prepared grants.
by the Office of Management and Budget soon
after the Budget is released.
81
SUMMARY INFORMATION: FEDERAL AID TO STATE AND LOCAL GOVERNMENTS
FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS-BUDGET AUTHORITY AND OUTLAYS
(In millions of dollars)
Budget Authority
Function, agency and program
NATIONAL DEFENSE:
Department of Defense—Military:
Military construction, Army National Guard
Federal Emergency Management Agency:
Emergency management planning and assistance .
Total, national defense
ENERGY:
Department of Agriculture:
Rural economic development grants
Department of Energy:
Energy conservation
Department of Housing and Urban Development:
Assistance for solar and conservation improvements .
Tennessee Valley Authority:
Tennessee Valley Authority fund
Total, energy
NATURAL RESOURCES AND ENVIRONMENT:
Department of Agriculture:
Resource conservation and development
Watershed and flood prevention operations
Solid waste management grants
Forest research
State and private forestry
Department of Commerce:
Operations, research, and facilities
Construction
Coastal zone management fund
Department of the Interior:
National forests fund, payments to States
Leases of lands acquired for flood control, navigation, and allied purposes
Regulation and technology
Abandoned mine reclamation fund
Bureau of Reclamation loans program account
Resource management
Construction
Cooperative endangered species conservation fund
U.S. Fish and Wildlife Service miscellaneous permanent appropriations
Sport fish restoration
Urban park and recreation fund
Land acquisition and State assistance
Historic preservation fund
National Park Service miscellaneous permanent appropriations
Environmental Protection Agency:
Water infrastructure financing
Abatement, control, and compliance
Abatement, control, and compliance loan program account
Program and research operations
Drinking water capitalization grants
Hazardous substance superfund
Leaking underground storage tank trust fund
Total, natural resources and environment
AGRICULTURE:
Department of Agriculture:
Cooperative State Research Service ..
Extension Service
Payments to States and possessions
State mediation grants
Outreach for socially disadvantaged farmers
Agricultural resource conservation demonstration guaranteed loan program account.
Commodity Credit Corporation fund
P.L 102-552 temporary assistance
Emergency food assistance program
218
204
218
100
102
94
320
297
145
318
230
316
207
1
240
241
241
230
316
7
169
3
6
192
3
6
150
3
5
113
1*
"96
83
109
96
168
191
30
8
204
36
8
48
4
1
52
135
4
26
4
1
52
135
5
6
48
135
2
1
27
139
1
1
160
215
5
25
40
2
1
167
227
3
20
35
1,528
495
2,412
407
7
179
229
5
20
35
7
172
225
2,400
519
17
3,395
556
30
3
125
140
65
599
120
65
154
64
4,236
5,412
3,975
3,929
223
419
1
4
223
425
219
404
1
2
4
349
4
225
42
188
233
430
1
3
10
4
207
209
"165
165
1
3
11
1
349
82
THE BUDGET FOR FISCAL YEAR 1994
FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS-BUDGET AUTHORITY AND OUTLAYS-Continued
(In millions of dollars)
Budget Authority
Function, agency and program
Total, agriculture
Outlays
1994
1,166
1,112
10
10
17
65
17,108
551
64
20
76
20,148
17
325
20
80
20,271
126
171
196
1,097
1,142
1,126
COMMERCE AND HOUSING CREDIT:
Department of Commerce:
U.S. Travel and Tourism Administration salaries and expenses
Fisheries promotional fund
Promote and develop fishery products and research pertaining to American fisheries
Industrial technology services
Department of the Treasury:
Emergency assistance to Rhode Island program account
Total, commerce and housing credit
TRANSPORTATION:
Department of Transportation:
Highway-related safety grants
Motor carrier safety grants
Federal-aid highways
Miscellaneous appropriations
Miscellaneous highway trust funds
Miscellaneous safety programs
Highway traffic safety grants
Office of the Administrator
Local rail freight assistance
High speed ground transportation development
Conrail commuter transition assistance
Research, training, and human resources
Interstate transfer grants—transit
Washington metro
Formula grants
Discretionary grants
Transit planning and research
Discretionary grants (trust fund)
Miscellaneous expired accounts
Grants-in-aid for airports (airport and airway trust fund)
Research, development, test, and evaluation
Boat safety
Pipeline safety
Emergency preparedness grants
Washington Metropolitan Area Transit Authority:
Interest payments
Total, transportation
COMMUNITY AND REGIONAL DEVELOPMENT:
Department of Agriculture:
Emergency community water assistance grants
Rural development grants
Rural water and waste disposal grants
Rural community fire protection grants
Rural development insurance fund program account
Rural development loan fund liquidating account
Distance learning and medical link programs
Economic development grants
Department of Commerce:
Economic development assistance programs
Department of Housing and Urban Development:
Other assisted housing programs
Community development grants
Urban development action grants
Supplemental assistance for facilities to assist the homeless
Revolving fund (liquidating programs)
Department of the Interior:
Operation of Indian programs (area and regional development)
Indian direct loan program account
Indian guaranteed loan program account
Appalachian Regional Commission:
Appalachian regional development programs
11
1
12
14
5
160
124
1,520
1,900
3
1,900
10
63
14,884
115
46
2
130
6
106
75
170
2,182
270
29
1,725
45
200
2,455
2,050
1,879
46
1,785
52
8
11
238
163
1,868
7
64
17,145
194
128
1
134
3
11
1,268
28
1,672
3
17
154
179
1,818
122
8
1,291
34
2,106*
36
6
35
7
53
52
23,663
27,379
27,194
20,608
23,518
25
10
312
4
118
558
4
150
10
21
449
4
148
5
14
5
5
4
10
153
4
55
1
11
13
217
3
100
2
5
4
302
300
223
141
223
3,419
-19
6,601
4,224
13
3,090
52
3
185
43
3,811
50
5
130
57
3
8
110
2
9
84
2
9
58
2
1
11
184
184
183
125
124
3
-25
11
2
83
SUMMARY INFORMATION: FEDERAL AID TO STATE AND LOCAL GOVERNMENTS
FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS-BUDGET AUTHORITY AND OUTLAYS-Continued
(In millions of dollars)
Outlays
Budget Authority
Function, agency and program
Community Investment Program:
Community investment program
Federal Emergency Management Agency:
Emergency management planning and assistance
Disaster relief
Neighborhood Reinvestment Corporation:
Payment to the Neighborhood Reinvestment Corporation
Total, community and regional development
EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES:
Department of Commerce:
Public telecommunications facilities, planning, and construction
Department of Education:
Indian education
Impact aid
Chicago litigation settlement
Education reform
Compensatory education for the disadvantaged
School improvement programs
Educational excellence
Bilingual and immigrant education
Special education
Rehabilitation services and disability research
American printing house for the blind
Vocational and adult education
Student financial assistance1
Higher education
College housing and academic facilities program account
Libraries
Education research, statistics, and improvement
Department of Health and Human Services, except Social Security:
Selected community services block grant act programs
Interim assistance to States for legalization
Payments to States for AFDC work programs
Family support and preservation
Social services block grant
Children and families services programs
Payments to States for foster care and adoption assistance
Aging services programs1
Department of the Interior:
Operation of Indian programs (elementary, secondary, and vocational education)
Department of Labor:
Training and employment services
Community service employment for older Americans
State unemployment insurance and employment service operations
Unemployment trust fund
Federal unemployment benefits and allowances
Corporation for Public Broadcasting:
Public broadcasting fund
National Endowment for the Arts:
Grants and administration
Institute of Museum Services:
Grants and administration
Total, education, training, employment, and social services
HEALTH:
Department of Agriculture:
Food Safety and Inspection Service salaries and expenses
Department of Health and Human Services, except Social Security:
Health resources and services1
Disease control, research, and training
Substance abuse and mental health services (health care services)1
Program management (health care services)
Grants to States for Medicaid1
Department of Labor:
Occupational Safety and Health Administration salaries and expenses
1992
actual
1993
estimate
21
2,677
1992
actual
1994
estimate
1993
estimate
1994
estimate
500
514
21
248
20
248
22
606
22
2,019
17
802
200
15
11
10
15
11
10
7,143
8,704
6,158
4,539
6,872
7,174
75
686
491
7,084
1,473
63
785
13
71
836
17
6,129
1,361
7,281
1,572
192
2,885
2,043
6
1,384
25
34
160
2,067
1,835
5
1,020
73
23
184
2,522
2,001
8
1,233
89
23
115
33
190
4
150
29
442
501
594
447
355
833
2,708
3,621
2,505
2,845
4,325
2,946
574
441
562
849
48
2,803
4,149
2,969
823
16
70
822
72
746
6,676
1,469
90
185
2,622
1,908
6
1,363
72
25
4
130
38
7,414
1,429
-90
187
2,725
1,978
6
1,411
73
25
1
129
35
437
441
311
1,000
10
*
73
722
17
145
6,901
1,701
190
3,208
2,034
6
1,339
40
26
1
142
36
2,805
3,637
2,614
2,800
3,907
2,924
819
441
810
1,100
60
2,800
4,829
3,065
819
42
96
58
41
43
51
3,516
87
24
1,099
72
4,409
93
24
1,078
75
5,709
93
177
1,104
57
3,388
88
-38
1,023
65
4,147
83
24
1,098
71
3,819
92
54
1,089
69
327
319
275
84
84
92
45
49
49
37
46
47
7
7
7
7
6
7
31,191
34,507
37,977
28,795
33,940
34,556
39
43
40
39
39
40
1,532
465
1,897
1,612
509
1,999
1,359
343
1,778
1,488
447
1,936
69,766
82,596
2,099
791
2,114
400
88,792
67,827
80,511
1,552
568
2,070
400
91,961
72
69
70
65
62
64
1,000
84
THE BUDGET FOR FISCAL YEAR 1994
FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS-BUDGET AUTHORITY AND OUTLAYS-Continued
(In millions of dollars)
Budget Authority
Function, agency and program
Mine Safety and Health Administration salaries and expenses
Total, health
INCOME SECURITY:
Department of Agriculture:
Funds for strengthening markets, income, and supply (section 32) 1
Rural housing for domestic farm labor2
Supervisory and technical assistance grants
Rural housing preservation grants2
Special milk program1
Food donations programs for selected groups1
Food stamp program1
Special supplemental food program for women, infants, and children1
Commodities supplemental food program1
State child nutrition payments1
Nutrition assistance for Puerto Rico1
Department of Health and Human Services, except Social Security:
Family support payments to States1
Low income home energy assistance1
Refugee and entrant assistance1
Payments to States for day care assistance1
Payments to States from receipts for child support
Department of Housing and Urban Development:
Housing programs annual contributions for assisted housing2
Congregate services1
Assistance for renewal of expiring Section 8 subsidy contracts
Section 8 moderate rehabilitation, single room occupancy1
Homeownership and opportunity for people everywhere grants2
Payments for operation of low-income housing projects1
Community partnerships against crime1
Revitalization of severely distressed public housing projects2
Low-rent public housing—loans and other expenses1
Emergency shelter grants program1
Supportive housing program1
Shelter plus care1
Home investment partnerships program
Youthbuild program
Department of Labor:
Unemployment trust fund
Federal Emergency Management Agency:
Emergency food and shelter program1
Total, income security
VETERANS BENEFITS AND SERVICES:
Department of Veterans Affairs:
Medical care1
Grants for the construction of State extended care facilities2
Grants for the construction of State veterans cemetaries
Total, veterans benefits and services
ADMINISTRATION OF JUSTICE:
Department of Housing and Urban Development:
Fair housing activities
Department of Justice:
Weed and seed program fund
Federal/State partnerships
Assets forfeiture fund
National Institute of Corrections
Justice assistance
Crime victims fund
Department of the Treasury:
Department of the Treasury forfeiture fund
Customs forfeiture fund
Equal Employment Opportunity Commission:
Salaries and expenses
1992
actual
Outlays
1994
estimate
estimate
1992
actual,
1993
estimate
6
6
6
6
73,775
86,833
94,312
71,416
407
611
494
2
23
23
265
1,538
2,595
90
6,014
1,002
2
23
15
257
1,589
2,930
94
6,712
1,040
3
24
20
244
1,614
3,282
94
7,259
1,091
543
18
15,460
1,500
328
825
15,695
1,346
325
893
1994
estimate
6
84,488-
475
13
6
96,660
10
19
244
1,611
2,542
96
5,974
one
3TO
11
20
267
1,586
2,900
96
6,667
1,043
450
13
1
10
20
247
1,612
3,263
94
7,190
1,091
15,884
1,507
337
933
15,103
1,142
304
15,768
1,040
318
412
15,988
2,114
332
1,009
5,694
21
6,313
105
321
2,282
175
300
102
50
573
267
1,060
40
5,904
6
5,689
108
109
2,521
265
483
79
51
320
274
1,600
48
8,602
5
1,104
1
8,213
6
2,658
14
59
2,406
210
3
173
70
212
10
277
8,242
6
3,615
26
136
2,529
185
30
144
58
312
43
856
4
2,608
2,618
2,510
2,488
2,613
2,444
134
129
123
135
129
123
48,921
51,582
52,876
43,486
47,666
52,187
114
85
5
131
40
5
164
41
5
114
41
9
131
60
6
164
72
5
204
176
210
164
197
241
13
15
21
12
7
14
12
9
240
3
594
150
13
100
245
3
592
155
240
3
654
129
13
19
245
4
471
152
110
160
110
160
25
25
25
25
4,342
18
6,713
105
361
2,450
165
119
73
150
111
1,500
218
2
629
128
24
*
*
2,162
37
207
71
69
200
3
505
141
92
24
*
85
SUMMARY INFORMATION: FEDERAL AID TO STATE AND LOCAL GOVERNMENTS
i
,,
FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS—BUDGET AUTHORITY AND OUTLAYS-Continued
(In millions of dollars)
Budget Authority
Function, agency and program
State Justice Institute:
Salaries and expenses
Total, administration of justice
GENERAL GOVERNMENT:
Department of Agriculture:
Forest Service permanent appropriations
Department of Defense—Civil:
Corps of Engineers permanent appropriations
Department of Energy:
Payments to States under the Federal Power Act
Department of the Interior:
Payments in lieu of taxes
Bureau of Land Management miscellaneous permanent appropriations
Mineral leasing and associated payments
National wildlife refuge fund
Administration of Territories
Trust Territory of the Pacific Islands
Payments to the United States Territories, fiscal assistance
Department of the Treasury:
Internal revenue collections for Puerto Rico
Miscellaneous permanent appropriations
Commission on National and Community Service:
Salaries and expenses
District of Columbia:
Federal payment to the District of Columbia
Total, general government
Total, grants
Outlays
1994
estimate
1993
estimate
1992
actual
1992
actual
1993
estimate
1994
estimate
11
12
11
1,314
987
1,188
1,113
366
424
338
358
409
6
5
5
6
6
5
2
3
3
2
3
3
104
134
432
18
87
24
90
104
86
431
18
75
23
104
101
126
104
65
479
81
83
432
18
74
29
90
104
89
431
18
77
24
81
83
271
268
142
265
147
271
93
268
121
115
265
119
65
66
67
3
90
66
12
11
1,026
1,160
336
61
479
21
71
20
21
71
21
701
716
705
691
726
705
2,391
2,385
2,454
2,274
2,391
2,417
194,287
219,788
228,033
178,117
206,406
226,138
•$500 thousand or less.
1 Programs included in the "grants for payments to individualsn category shown in the 'Trends in Federal Grants to State and Local Governments" table.
2 All or a portion of these accounts are classified as both payments for individuals and physical capital investment. In the table, 'Trends in Federal Grants to State and Local Governments," they are classified as physical
capital.
NATIONAL INCOME AND PRODUCT ACCOUNTS
The National Income and Product Accounts (NIPAs)
are an integrated set of measures of aggregate economic
activity that are prepared by the Department of Commerce. One of the many purposes of the NIPAs is to
measure the Nation's total current production of goods
and services, known as gross domestic product (GDP),
and the incomes generated in its production. Because
the NIPAs are widely used in economic analysis, it
is important to show the NIPA presentation of Federal
transactions.
GDP is the sum of the net products of the household,
business, government, and foreign-owned sectors. Federal transactions are included in the NIPAs as part
of the government sector. The concepts for the Federal
sector have been designed to measure certain important
economic effects of Federal transactions in a way that
is consistent with the conceptual structure of the entire
set of integrated accounts. The NIPA Federal sector
is not itself a budget, for it is not a financial plan
for proposing, determining, and controlling the fiscal
activities of the Government. Rather, it is an accounting
translation of the budget to meet specialized and important needs, chiefly the measurement of the impact of
Federal receipts, outlays, and the deficit on the national
economy. NIPA concepts differ in many ways from
budget concepts, and therefore the NIPA presentation
of Federal finances is significantly different from that
of the budget.
GDP is a measure of final output which excludes
intermediate product to avoid double counting. Government purchases of goods and services are included in
GDP as part of final output, together with personal
consumption expenditures, gross private domestic investment, and net exports of goods and services. Other
Federal expenditures—transfer payments, grants to
State and local governments, subsidies, and net interest
payments—are not part of final output. Rather, they
are transfers of income to others, whose consumption,
investment, purchases, or transactions with foreigners
are part of final output. An entire set of receipt and
expenditure transactions of the Federal Government is
prepared as one sector of the NIPAs; however, when
the accounts for all the sectors are consolidated into
a summary account for the Nation as a whole, transfer
payments, grants, subsidies, and net interest expenditures are canceled out by the receipt of those payments
as income in other sectors. This leaves only purchases
to be included infinaloutput.
Differences Between the NIPAs and the Budget
Federal transactions in the NIPAs are measured
according to NIPA accounting rules in order to be compatible with the purposes of the NIPAs and other transactions recorded in the NIPAs. As a result they differ
from the budget in netting, timing, and coverage. These
differences cause total receipts and expenditures in the
NIPAs to differ from total receipts and outlays in the
budget. Differences in timing and coverage also cause
the deficit to differ. Netting differences have the same
effect on both receipts and expenditures and thus have
no effect on the deficit. Besides these differences, the
NIPAs combine transactions into different categories
from those used in the budget.
Netting differences arise when the budget records
certain transactions as offsets to outlays while they
are recorded as receipts in the NIPAs (or vice versa).
The budget treats all income that comes to the Government due to its sovereign powers—mainly, but not exclusively, taxes—as governmental receipts. However,
any intragovernmental income from one account to
another is offset against outlays rather than being recorded as a receipt. Government contributions for employee retirement is one example. The budget offsets
these payments against outlays, while the NIPAs treat
the Federal Government as any other employer and
show contributions for employee social insurance as expenditures by the employing agencies and receipts to
the appropriate social insurance funds. The NIPAs also
include certain imputations which the budget does not.
For example, unemployment benefits for Federal employees are financed by direct appropriations rather
than social insurance contributions. The NIPAs impute
social insurance contributions by employing agencies to
finance these benefits.
The budget also offsets against outlays any income
that arises from voluntary business-type transactions
with the public. The NIPAs generally follow this convention as well, and all income to government enterprises such as the Post Office or the power enterprises
is offset against expenditures. However, the NIPAs
have a narrower definition of "business-type transactions". Rents, royalties, and regulatory or inspection
fees are recorded as business nontaxes. The budget
classifies Medicare Part B premiums as business-type
transactions, whereas the NIPAs record them as social
insurance receipts.
Timing differences occur for receipts because the
NIPAs generally record personal taxes and social insurance contributions when they are paid and business
taxes when they are accrued, while the budget records
all receipts when they are received. The principal timing difference between NIPA expenditures and budget
outlays occurs because purchases are recorded on a delivery basis in the NIPAs, but when cash is disbursed
in the budget. This difference can be large for major
defense purchases because progress payments are recorded as outlays in the budget, while the NIPAs do
not record expenditures until delivery is made. The
87
88
THE BUDGET FOR FISCAL YEAR 1994
NIPAs count work in progress as part of business inventories until delivery is made to the Government.
The budget and the NIPAs also have coverage differences. The NIPAs include off-budget Federal entities
and exclude transactions with U.S. territories. The
NIPAs also exclude the proceeds from the sales of assets such as land. Bonuses paid on Outer Continental
Shelf oil leases are shown as offsetting receipts in the
budget and are deducted from budget outlays. In the
NIPAs these transactions are excluded as an exchange
of assets.
Financial transactions such as loans, loan repayments, loan asset sales, and loan guarantees are
excluded from the NIPAs on the grounds that such
transactions involve an exchange of assets with no production involved. Through 1991, in contrast, the budget
recorded loans as outlays when disbursed and as offsets
to outlays when repaid or sold. With the enactment
of the Federal Credit Reform Act of 1990, the budget
has made a fundamental change in the way that it
records lending transactions. For direct loan obligations
and loan guarantee commitments made after 1991, the
budget records the estimated subsidy cost of the direct
loan or loan guarantee when the direct loan or guaranteed loan is disbursed. The nonsubsidized cash flows
are recorded in nonbudgetary accounts as a means of
financing the budget deficit rather than as budgetary
transactions themselves. This treatment recognizes that
part of a Federal direct loan is an exchange of assets
with equal value but that part is normally a subsidy
to the borrower. It also recognizes the subsidy normally
granted by loan guarantees. In the NIPAs, neither the
subsidies nor the loan transactions are included; how-
ever, the NIPAs will continue to include all interest
transactions with the public, including interest paid to
the new financing accounts.
Deposit insurance outlays for resolving failed banks
and thrift institutions are similarly excluded from the
NIPAs on the grounds that there are no offsetting current income flows from these transactions. In recent
years, this exclusion has been the largest difference
between the NIPAs and the budget and has tended
to make the unified budget deficit larger than the NIPA
deficit. In coming years, as assets acquired from failed
financial institutions are sold, these collections will
tend to make the unified deficit smaller than the NIPA
deficit.
Federal Sector Receipts
The table entitled "Federal Transactions in the National Income and Product Accounts, 1983-1994" shows
Federal receipts in the four major categories used in
the NIPAs, which are similar to the budget categories
but with significant differences.
Personal tax and nontax receipts is the largest category. It is composed primarily of personal income
taxes, but also includes estate and gift taxes, fees, fines,
and other receiptsfrompersons.
Corporate profits tax accruals differ in classification
from the corresponding budget category primarily because the NIPAs include the deposit of earnings of the
Federal Reserve System as corporate profits taxes,
while the budget treats these collections as miscellaneous receipts. The timing difference between the NIPAs
and the budget is especially large for this category of
receipts.
FEDERAL TRANSACTIONS IN THE NATIONAL INCOME AND PRODUCT ACCOUNTS, 1983-1994
(In billions of dollars)
Description
RECEIPTS
Personal tax and nontax receipts
Corporate profits tax accruals
Indirect business tax and nontax accruals
Contributions for social insurance
Total receipts
Actual
Estimate
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
290.7
56.4
52.0
247.3
300.4
75.1
57.0
279.3
337.0
75.0
59.1
305.9
353.1
80.4
53.8
326.5
396.3
99.4
57.8
345.5
403.8
107.6
59.6
384.1
456.9
119.2
62.2
411.8
473.2
113.8
63.8
438.7
472.1
104.4
74.8
463.5
486.3
110.5
80.5
484.6
515.2
126.3
85.5
513.9
562.7
132.2
93.9
547.8
646.4
711.7
777.0
813.8
899.1
955.1
1,050.1
1,089.6
1,114.9
1,161.8
1,240.9
1,336.6
289.8
(210.2)
(79.6)
346.3
(339.8)
(6.5)
86.2
89.6
302.2
(228.2)
(74.0)
351.1
(342.4)
(8.7)
91.5
107.5
335.1
(251.7)
(83.5)
372.2
(360.7)
(11.5)
98.6
125.2
363.7
(274.3)
(89.3)
393.1
(380.6)
(12.5)
108.3
130.5
379.9
(287.6)
(92.2)
409.3
(399.4)
(9.9)
103.4
133.6
386.3
(295.1)
(91.2)
430.9
(420.7)
(10.2)
108.4
143.8
399.4
(299.5)
(99.9)
461.1
(449.6)
(11.6)
115.8
160.5
417.6
(308.9)
(108.8)
504.5
(490.5)
(14.0)
128.3
175.1
447.1
(326.6)
(120.6)
510.7
(536.1)
(-25.4)
146.9
183.1
444.5
(313.6)
(130.9)
603.4
(593.7)
(9.7)
168.5
188.0
447.2
(306.4)
(140.8)
651.5
(636.1)
(15.4)
195.4
189.5
436.4
(292.2)
(144.2)
689.5
(673.7)
(15.8)
213.7
200.3
16.8
0.4
23.0
-0.1
21.6
0.1
22.1
24.9
-0.1
28.9
0.1
27.6
23.9
23.1
25.2
32.9
30.7
829.2
875.3
952.9
1,017.6
1,051.0
1,098.5
1,164.5
1,249.5
1,310.9
1,429.6
1,516.4
1,570.6
—182.8
-163.6
-175.9
-203.9
-151.9
-143.3
-1143
-159.9
-196.1
-267.8
-275.5
-234.0
EXPENDITURES
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
Total expenditures
Deficit ( - )
4 $50
miion or less.
•
89
SUMMARY INFORMATION: NATIONAL INCOME AND PRODUCT ACCOUNTS
Indirect business tax and nontax accruals are composed of excise taxes, customs duties, royalties, fines,
and other receipts.
Contributions for social insurance differ from the corresponding budget category primarily because: (1) the
NIPAs include Federal employer contributions for employee retirement in this category as a Government
receipt, while the budget offsets the contributions
against outlays as undistributed offsetting receipts; (2)
the NIPAs include premiums for social insurance programs including Part B of medicare as Government
receipts, which the budget also nets against outlays;
and (3) the NIPAs include imputations for Federal
employees' unemployment insurance and workers'
compensation.
Federal Sector Expenditures
The table entitled "Federal Transactions in the
National Income and Product Accounts, 1983-1994"
shows expenditures in the six major NIPA categories,
which are very different from the budget categories.
Purchases of goods and services include the goods
and services purchased by the Federal Government,
including employee compensation. This category is divided into defense and non-defense components.
Transfer payments is the largest expenditure category. Domestic transfer payments are mainly for income security programs, such as social security and
medicare. Foreign transfer payments include grants to
foreign governments and payments under social secu-
rity and other similar programs to individuals living
abroad. In 1991, foreign transfers were negative, reflecting contributions from foreign governments for
Desert Storm.
Grants-in-aid to State and local governments are designed to help finance a range of programs. Grants
are for income security, capital expenditures for infrastructure, and other purposes.
Net interest paid is the interest paid by the Government on its borrowing, less interest received on its
lending.
Subsidies less current surplus of Government enterprises consists of two elements: (1) subsidy payments
for resident businesses (including farms); and (2) the
current surplus (or deficit) of "Government enterprises",
such as the Postal Service, which are business-type
operations of Government that usually appear in the
budget as public enterprise revolving funds. NIPA subsidies do not include the imputed credit subsidies estimated as part of credit reform in the budget. Rather,
loans and guarantees are categorized asfinancialtransactions and are excluded from the NIPAs.
Wage disbursements less accruals is an adjustment
that is necessary when wages are earned in a different
period than they are paid.
Differences in the Estimates
Since the introduction of the unified budget in January 1968, NIPA receipts have exceeded budget receipts
in each year, due principally to the imputed employer
RELATIONSHIP OF THE BUDGET TO THE FEDERAL SECTOR, NIPA
(In billions of dollars)
Estimate
Actual
1984
1983
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
RECEIPTS
Unified budget receipts
Government contributions for employee retirement (grossing)
Other netting and grossing
Timing adjustments
Geographic exclusions
Other
NIPA receipts
600.6
666.5
734.1
769.1
854.1
909.7
990.7
1,031.3
1,054.3
1,090.5
1,145.7
1,251.3
28.3
9.5
9.2
-1.3
0.2
29.7
11.6
5.2
-1.4
0.2
32.3
13.0
-1.2
-1.5
0.3
33.7
10.6
2.7
-1.6
-0.6
35.4
11.1
-1.8
0.1
38.7
14.1
-5.1
-1.4
41.2
15.1
4.2
-1.3
0.2
44.2
17.5
-1.8
-1.4
-0.2
48.2
19.8
-5.8
-1.5
-0.1
54.3
22.3
-3.5
-1.8
57.5
24.9
14.7
-1.9
59.5
28.1
-0.1
-2.1
646.4
711.7
777.0
813.8
899.1
955.1
1,050.1
1,089.6
1,114.9
1,161.8
1,240.9
1,336.6
808.4
851.8
946.4
990.3
1,003.9
1,064.1
1,143.2
1,252.7
1,323.0
1,380.9
1,467.6
1,515.3
28.3
9.5
-16.0
29.7
11.6
-11.7
32.3
13.0
-31.9
33.7
10.6
-14.3
35.4
11.1
-0.5
38.7
14.1
-3.5
41.2
15.1
-3.8
44.2
17.5
-10.2
48.2
19.8
-14.4
54.3
22.3
-19.4
57.5
24.9
-24.5
59.5
28.1
-25.9
-2.3
-0.8
-4.8
-3.6
0.3
-0.8
-5.1
-0.9
-0.2
-1.4
-5.3
-3.2
2.8
-0.7
-5.4
-2.9
4.0
4.1
-5.4
-12.5
3.2
-0.3
-5.6
-19.4
-7.3
0.8
-6.0
-57.2
4.9
4.2
-6.5
-63.4
5.6
0.3
-7.3
-1.8
2.0
0.2
-7.6
-3.9
4.0
2.7
0.8
-7.9
-8.3
7.5
-0.4
3.4
-0.4
1.9
-1.1
2.1
1.8
1.6
-0.4
1.3
-1.0
0.9
-0.2
1.1
-1.2
1.3
-2.2
0.9
-2.1
0.8
-2.1
0.4
-2.1
829.2
875.3
952.9
1,017.6
1,051.0
1,098.5
1,164.5
1,249.5
1,310.9
1,429.6
1,516.4
1,570,6
*
*
EXPENDITURES
Unified budget outlays
Government contributions for employee retirement (grossing)
Other netting and grossing
Lending transactions
Deposit insurance and other financial
transactions
Defense timing adjustment
Other timing adjustments
Payments to U.S. territories
Bonuses on outer continental shelf
land leases
Other
NIPA expenditures
•$50 milKon or toss.
*
90
contributions for employee retirement. NIPA expenditures have usually been higher than budget outlays
for the same reason. However there are two components
of budget outlays that are sometimes sufficiently large
to overwhelm the grossing adjustments. These are financial transactions and payments to U.S. territories.
Budget outlays were greater in 1990 and 1991. With
the enactment of credit reform, effective in 1992, lending activity with the public as recorded in the budget
has been treated in a way that is closer to the NIPA
treatment. Disbursement and repayment of loans now
occur outside the budget as in the NIPAs, and only
imputed credit subsidies will remain as budget outlays.
THE BUDGET FOR FISCAL YEAR 1994
However, this narrowing of differences in lending activity is likely to be overwhelmed, at least in the short
run, by large increases in other financial transactions,
principally outlays for the resolution of failed financial
institutions.
Since 1968, the unified on-budget plus off-budget surplus or deficit has exceeded the Federal surplus or deficit as measured in the NIPAs in all but three years.
In 1991, the unified budget deficit was $269.5 billion,
while the NIPA deficit was $196.1 billion.
Additional details will be published in a forthcoming
issue of the Department of Commerce publication, Survey of Current Business.
COMPARISON OF ACTUAL TO ESTIMATED TOTALS FOR 1992
The following three parts of this section compare the
actual total receipts, outlays, and the deficit for 1992
with the current services baseline estimates shown in
the 1992 Budget in February 1991. The fourth part
shows additional details for this comparison for mandatory and related programs, and the final part has a
reconciliation of the actual receipts, outlays, and the
deficit totals for 1992 previously published by the Department of the Treasury and those in this budget.
Receipts
Receipts in 1992 were $1,090.5 billion, which is $71.9
billion less than the February 1991 baseline estimate
of $1,162.3 billion. As shown in the table, this decrease
was the net effect of legislative, administrative and regulatory changes; economic conditions that differed from
what had been expected; and different collection patterns and effective tax rates than had been assumed.
accounted for a net decrease in 1992 receipts of $34.6
billion. Substantial reductions in wages and salaries
relative to what had been assumed in the 1992 budget,
were in large part responsible for the shortfalls in individual income taxes and social insurance taxes and contributions of $18.0 billion and $12.2 billion, respectively. Lower than expected imports reduced customs
duties by $1.7 billion and lower than previously assumed increases in the value of assets reduced estate
and gift taxes by $0.4 billion. Lower than anticipated
interest rates reduced deposits of earnings by the Federal Reserve system, which are classified as miscellaneous receipts, by $3.0 billion.
Technical reestimates.—Different collection patterns and effective tax rates than had been assumed
in February 1991 were in large part responsible for
the shortfalls in individual and corporation income
taxes of $20.1 billion and $4.1 billion, respectively.
These
shortfalls were attributable in large part to the
Policy differences.—The Tax Extension Act of 1991
and the Emergency Unemployment Compensation Act difficulty in accurately assessing the effect of the interof 1991 were the only major laws enacted in 1991 that action of various legislated tax changes on taxpayer
affected 1992 receipts. These two laws, together with behavior and the timing of collections. Increased deposseveral trade agreements, increased 1992 receipts by its of earnings of the Federal Reserve, attributable to
a net $3.6 billion. Changes in Federal individual income higher-than-expected asset values on securities denomitax withholding tables, which became effective March nated in foreign currencies, accounted for most of the
1, 1992, reduced 1992 receipts by $14.4 billion. Admin- $5.7 billion increase in miscellaneous receipts.
istrative actions that affected reserve requirements of
Outlays
the Federal Reserve, and regulatory changes that affected the timing of the payment of payroll taxes by
Outlays for 1992 were $1,380.9 billion. This was
small businesses and the allocation of research and ex- $66.4 billion lower than the initial current services
perimentation expenditures between domestic and for- baseline estimate of $1,447.2 billion, which was ineign operations, reduced 1992 receipts by an additional cluded in the original 1992 budget transmitted to the
$0.4 billion. On net, legislative, administrative and reg- Congress in February 1991.
ulatory changes reduced 1992 receipts by $11.2 billion.
Major causes of the change.—The following table
Economic differences.—Differences between the distributes the $66.4 billion decrease in outlays among
economic assumptions upon which the original receipts discretionary and mandatory programs and net interestimates were made and actual economic performance est, and also according to four reasons for the changes:
COMPARISON OF ACTUAL 1992 RECEIPTS WITH THE FEBRUARY 1991 BASELINE ESTIMATES
(In billions of dollars)
Legislative,
administrative,
andregulaiory
Different
economic
conditions
527.2
102.8
428.1
47.7
13.3
19.3
23.9
-13.2
0.7
1.6
-0.2
-18.0
0.9
-12.2
-0.3
-0.4
-1.7
-3.0
-20.1
-4.1
-3.8
-1.8
-1.8
-0.2
5.7
-51.3
-2.5
-14.4
-2.1
-2.1
-1.9
2.6
476.0
100.3
413.7
45.6
11.1
17.4
26.5
1,162.3
-11.2
-34.6
-26.1
-71.9
1,090.5
February
1991
estimate
Individual income taxes
Corporation income taxes
Social insurance taxes and contributions
Excise taxes
Estate and gift taxes
Customs duties
Miscellaneous receipts
Total
—
Technical
factors
Net change
Actual
•$50 mflfion or less.
91
92
THE BUDGET FOR FISCAL YEAR 1994
COMPARISON OF ACTUAL 1992 OUTLAYS WITH THE FEBRUARY 1991 BASEUNE ESTIMATES
(Outlays in biKons)
February
estate
Discretionary:
Defense
Nondefense
Subtotal, discretionary
Mandatory:
Deposit insurance
Other
Subtotal, mandatory
Net interest
Total 1992 outlays
Poicy
M S "
meras ana
Desert
SWekVDesert
Storm
Economic
conditions
Technical
reestimates
295.8
231.7
-2.6
-0.3
17.3
3.7
527.5
-2.9
21.0
*
88.1
826.4
-0.4
5.7
-4.9
714.4
5.4
-4.9
205.3
2.2
1,447.2
4.7
16.1
Total
changes
Actual
-8.0
-1.7
6.8
1.7
302.6
233.4
-9.6
8.5
536.0
-3.0
-85.1
18.6
-85.5
16.5
2.6
642.8
*
-3.0
-66.5
-69.0
645.4
-11.3
3.3
-5.9
199.4
-14.3
-72.8
-66.4
1,380.9
*$50 mWon or Isss.
(1) policy changes; (2) cap adjustments and Desert tially forecast, which decreased outlays for programs
ShielcJ/Desert Storm; (3) economic conditions; and (4) with automatic cost-of-living adjustments, such as social
security and Federal retirement benefits, and by lower
technical estimating differences, a residual.
Policy changes are the result of actions by the Con- interest rates than initially forecast, which decreased
gress or the Administration that change spending lev- net interest outlays.
Technical estimating differences and other changes
els, primarily through higher or lower appropriations
or changes in authorizing legislation. For 1992, policy account for a net decrease of $72.8 billion. The major
changes increased outlays $4.7 billion relative to the decreases were for deposit insurance ($85.1 billion), beinitial baseline. Outlays for discretionary programs cause some outlays expected to occur in 1992 will occur
were $2.9 billion less than estimated in the initial base- in later years; and national defense ($9.6 billion), beline, largely due to lower defense appropriations. (Dis- cause of slower than expected disbursements. These
cretionary programs are those generally subject to con- and other decreases were partially offset by increases
primarily in mandatory programs, including medicare
trol by annual appropriations.)
Outlays for mandatory programs were $5.4 billion and medicaid, which were $10.2 billion higher than inihigher than estimated initially due to changes in policy, tially estimated due to technical reestimates.
largely as a result of increases of $8.2 billion for unemDeficit
ployment compensation, partially offset by decreases in
The
preceding
two
parts
discussed the differences beother programs. (Mandatory programs are mostly formula benefit or entitlement programs not normally con- tween the baseline estimates in the February 1991
trolled by annual appropriations.) Policy changes for budget for 1992 and the actual amounts of Federal
net interest reflect primarily debt service on policy out- Government receipts and outlays. This part combines
these effects in order to show the net impact of these
lay and receipt changes.
differences on the deficit.
Cap adjustments and Desert Shield/Desert Storm increased outlays $16.1 billion above the initial baseline
As shown in the following table, the baseline deficit
estimate. The Department of Defense had gross outlays for 1992 was initially estimated to be $284.9 billion.
of $17.5 billion for Desert Shield/Desert Storm, $17.3 The actual deficit was $290.4 billion, $5.5 billion more
billion more than initially estimated, including other than the initial baseline estimate. Receipts were $71.9
cap adjustments. Desert Stornj/Desert Shield outlays billion less than the initial estimate, and outlays were
were partially offset by $4.9 billion in contributions $66.4 billion less than the initial estimate. The table
from other countries. Other cap adjustments resulting shows the distribution of the changes according to the
from legislation and other adjustments increased out- categories in the preceding two sections.
lays $3.7 billion. (Discretionary caps were enacted in
Policy changes, largely decreases in receipts, inthe Omnibus Budget Reconciliation Act of 1990 and creased the deficit $15.8 billion, and changes for Desert
are discussed in the chapter entitled "Budget Enforce- ShielcJ/Desert Storm and other cap adjustments increased the deficit by $16.1 billion.
ment Act Preview Report.")
Economic conditions that differed from those forecast Economic conditions that differed from what was iniin February 1991 resulted in an estimated net outlay tially assumed in February 1991 accounted for an estidecrease of $14.3 billion. Higher than forecast unem- mated $20.3 billion increase in the deficit. The loss
ployment rates increased outlays for unemployment of $34.6 billion in receipts was partially offset by a
compensation $1.3 billion above the initial estimate. decrease of $14.3 billion in outlays. Technical estimatThis was more than offset by lower inflation than ini- ing and other differences decreased the deficit by an
93
SUMMARY INFORMATION: COMPARISON OF ACTUAL TO ESTIMATED TOTALS FOR 1992
COMPARISON OF ACTUAL 1992 DEFICIT WITH THE FEBRUARY 1991 BASELINE ESTIMATE
(In billions of dollars)
Changes
February
1991
estimate
Receipts
Outlays
Defidt
Policy
Economic
conditions
Technical
reestimates
Total
changes
Actual
1,162.3
1,447.2
-11.2
4.7
16.1
-34.6
-14.3
-26.1
-72.8
-71.9
-66.4
1,090.5
1,380.9
-284.9
-15.8
-16.1
-20.3
46.8
-5.5
-290.4
estimated $46.8 billion. A decrease of $26.1 billion in
receipts, which increased the deficit, was more than
offset by a decrease of $72.8 billion in outlays, which
decreased the deficit.
Comparison of the Actual and Estimated Outlays for Mandatory and Related Programs for
1992
This part compares the original 1992 outlay estimates
for mandatory and related programs under current law
in the 1992 Budget (February 1991) with the actual
outlays. Mandatory and related programs are programs
with spending generally controlled by authorizing legislation rather than by annual appropriations. Outlays
for these programs depend on eligibility criteria established in law, such as social security and medicare benefits for the elderly, agricultural price support payments to farmers, or deposit insurance for banks and
thrift institutions. This category also includes net interest outlays and undistributed offsetting receipts.
A number of factors may cause differences between
the amounts estimated in the budget and the actual
outlays. For example, legislation may change benefit
rates or coverage; the actual number of beneficiaries
may differ from the number estimated; or economic conditions (such as inflation or interest rates) may differ
from what was assumed in making the original estimates.
The following table shows the differences between
actual outlays for these programs in 1992 and the
amounts originally estimated in the 1992 Budget, based
on laws in effect at that time. (The list of programs
is similar to the list in the chapter entitled, "Current
Services Estimates," which provides the estimates
through 1998.)
Actual outlays for mandatory and related programs
in 1992 were $844.9 billion, which is $74.9 billion less
than the initial estimate of $919.8 billion, based on
existing law in February 1991.
Outlays for mandatory programs were $684.7 billion
in 1992, $69.0 billion less than estimated in February
1991.
Mandatory human resources programs, which are almost entirely income transfers, accounted for 98 percent
Cap adjustments and
Desert
Shield/Desert
Storm
of all mandatory program outlays in 1992. Actual outlays for these programs were $20.2 billion higher than
originally estimated. This increase was the net effect
of legislative action, differences between actual and assumed economic conditions, differences between the anticipated and actual number of beneficiaries, and other
technical differences. The largest increases were for unemployment compensation ($12.0 billion) and medicaid
($7.9 billion). The increase for unemployment compensation was largely due to higher than originally assumed unemployment rates as well as legislation that
extended unemployment benefits; the increase for medicaid was largely due technical reestimates.
Outlays for other mandatory programs were $13.1
billion, $89.2 billion less than originally estimated. The
largest decrease was for deposit insurance, which decreased $85.5 billion, because some outlays expected
to occur in 1992 are now expected to occur in later
years.
Outlays for net interest were $199.4 billion or $5.9
billion lower than the original estimate. This decrease
was largely the effect of lower than expected interest
rates.
Reconciliation of Differences with Final
Amounts Published by Treasury for 1992
The last table in this section provides a reconciliation
of the actual receipts, outlays, and deficit totals published by the Department of the Treasury in the "Final
Monthly Treasury Statement" (October 28, 1992) and
those published in this budget. The deficit total for
1992 in this budget is higher than previously reported
by the Department of the Treasury by $195 million.
The differences are due to misclassifications and reporting errors by the agencies that were not found in time
to be included in the report issued previously by the
Department of the Treasury.
94
THE BUDGET FOR FISCAL YEAR 1994
COMPARISON OF ACTUAL AND ESTIMATED OUTLAYS FOR MANDATORY AND RELATED
PROGRAMS
(In billions of dollars)
February 1991
estimate
Mandatory programs:
Human resources programs:
Education, training, employment and social services
Health:
Medicaid
Other
Actual
Change
13.3
11.5
-1.8
59.9
3.9
67.8
3.7
7.9
-0.2
Total health
Medicare
Income security:
Retirement and disability
Unemployment compensation
Food and nutrition assistance
Other
63.8
114.2
71.5
116.2
7.7
1.9
64.3
25.0
27.1
39.2
62.5
37.0
29.5
39.8
-1.8
12.0
2.4
0.6
Total, income security
Social security
Veterans benefits and services:
Income security for veterans
Other
155.7
286.0
168.8
285.1
13.1
-0.9
17.3
1.2
17.3
1.2
*
Total veterans benefits and services
18.5
18.5
*
Total mandatory human resources programs
Other mandatory programs:
Agriculture
Deposit insurance
Other functions
651.5
671.7
20.2
12.0
88.1
2.1
11.0
2.6
-0.6
-1.0
-85.5
-2.7
102.2
13.1
-89.2
753.7
684.7
-69.0
303.5
-77.2
-21.0
292.3
-77.8
-15.1
-11.2
-0.6
5.9
205.3
199.4
-5.9
-36.6
-2.7
-36.8
-2.5
-0.2
0.2
Total undistributed offsetting receipts
-39.3
-39.3
Total outlays for mandatory and related programs under current law
919.8
844.9
Total other mandatory programs
Total mandatory programs
Net interest
Interest on the public debt
Interest received by trust funds
Other interest
.
Total net interest
Undistributed offsetting receipts:
Employer share, employee retirement
Rents and royalties on the outer continental shelf
*$50 mfflton or less.
*
-74.9
95
SUMMARY INFORMATION: COMPARISON OF ACTUAL TO ESTIMATED TOTALS FOR 1992
RECONCILIATION OF FINAL AMOUNTS FOR 1992
(In millions of dollars)
Totals published by Treasury in Final Monthly Treasury
Statement1
Adjustments, net:
Department of Defense—Civil
Department of Energy
Department of Health and Human Services
Department of Justice
Department of Transportation
Department of the Treasury
Department of Veterans Affairs
Small Business Administration
Federal Retirement Thrift Investment Board:
Outlays
Offsetting receipts
National Endowment for the Humanities
Postal Service
Railroad Retirement Board
Miscellaneous reporting differences
Total, adjustments, net
Totals in the budget
1
Published October 28, 1992.
Receipts
Outlays
1,091,692
1,381,895
-24
14
-556
10
93
-629
-24
-51
-485
157
187
24
-24
1
-220
-76
1
-1,230
-1,035
1,090,462
1,380,860
RELATIONSHIP OF BUDGET AUTHORITY TO OUTLAYS
The Congress usually provides budget authority,
which is generally in the form of appropriations, before
Federal agencies can obligate the Government to make
outlays.
Some new budget authority is 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; interest on the public debt, for which budget authority is automatically provided under a permanent
appropriation enacted in 1847; and the authority to
spend offsetting collections credited to appropriation or
fund accounts. Budget authority for the medicare, railroad retirement, and unemployment insurance trust
funds was changed by statute in 1990, so that it equals
estimated obligations of the funds rather than the
funds' receipts. Conforming changes were made administratively in 1991 for many other trust fund accounts
subject to obligation limits or benefit formulas, including the military and civil service retirement trust funds.
The remaining new budget authority is made available annually through the appropriations process.
Not all of the new budget authority for 1994 will
be obligated or spent in that year:1
• Budget authority for most trust funds comes from
the authority of these funds to spend their receipts. Any balances remain available to these
trust funds indefinitely in order tofinancebenefits
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 work will take place and outlays will be
made over a period extending beyond the year
for which the budget authority is enacted. There
are some exceptions to this legal requirement, notably for water resource programs.
• Budget authority for large portions of 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
20 years.
• Budget authority for most other long-term contracts also covers the estimated maximum obligation of the Government.
• Budget authority for most education and job training activity is appropriated for school or program
years that begin with the fourth quarter of the
fiscal year. Most of these funds result in outlays
in the year after the year of appropriation.
• Government enterprises are occasionally given
budget authority for standby reserves that will
be used only in the event of special circumstances.
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, primarily the amount for
contingencies that do not occur or reserves that never
have to be used.
To be consistent with the redefinition of budget authority by the Budget Enforcement Act of 1990, the
unobligated balances of special trust funds were reduced as of the end of 1992 to the extent that they
are precluded from obligation by a provision of law
(such as a benefit formula or limitation on obligations).
The amounts precluded from obligation remain earmarked for the purposes of the funds. This change in
budget treatment resulted in a $402 billion reduction
in unspent authority as of the end of 1992.
As shown in the following chart, $333.8 billion of
the outlays in 1994 (22 percent of the total) will be
made from budget authority enacted in previous years.
At the same time, $335.8 billion of the new budget
authority proposed for 1994 (22 percent of the total
amount proposed) will not lead to outlays until future
years. Thus, although outlays in 1994 are, coincidentally, very nearly equal to budget authority for that
year (99.9 percent), 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.
1 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.
97
98
THE BUDGET FOR FISCAL YEAR 1994
RELATIONSHIP OF BUDGET AUTHORITY TO OUTLAYS -1994
(in billions of dollars )
New Authority
Recommended
for 1994
1,517.2
^
To be spent In 1994
^
1,181.5
'
^
986.4
Outlavs
jn 1994
miyv4
J j j
^ ^
Unspent Authority
^
Enacted in
w^
Prior Years
^
^^^
f
^
w^
written off,
expired, and adjusted
^ ^
(pet)
\
To be spent in
Future Years
^
626.5
Unspent Authority
for Outlays In
^
Future Years
w^
962.2
DISCRETIONARY PROPOSALS BY APPROPRIATIONS SUBCOMMITTEE
(In millions of dollars)
1993
Enacted
Appropriations Subcommittee
BA
1994
Proposed
1993
Proposed1
Outlays
BA
Outlays
BA
Change: 1993 Enacted to
1994 Proposed
Outlays
BA
Outlays
Domestic Discretionary
Agriculture and Rural Development
Commerce, Justice, State and the Judiciary
Defense
District of Columbia
Energy and Water Development
Interior and Related Agencies
Labor, HHS, and Education
Legislative
Transportation and Related Agencies
Treasury-Postal Service, and General Government
Veterans Affairs, HUD, Independent Agencies
Allowances
Investment programs
Total, Domestic Discretionary
12,505
16,168
221
688
9,968
12,793
63,436
2,275
12,621
11,387
66,627
12,186
17,077
137
698
10,026
13,247
64,529
2,387
34,432
12,232
67,671
13,054
16,804
221
716
10,110
13,538
68,424
2,275
13,545
11,544
70,963
12,355
17,385
137
726
10,059
13,863
66,759
2,387
34,957
12,340
68,768
208,689
234,622
221,195
1,573
5,712
13,819
11
1,777
5,593
14,207
11
21,115
11,872
16,759
705
10,385
13,385
64,420
2,642
12,766
11,336
63,631
-838
16,417
12,206
17,496
75
705
9,748
13,837
67,822
2,635
37,368
11,991
72,231
-747
5,773
-632
590
-221
17
416
592
984
367
145
-51
-2,996
-838
16,417
19
419
-62
7
-278
590
3,293
248
2,937
-241
4,560
-747
5,773
239,737
223,480
251,140
14,791
16,518
1,573
5,956
13,833
11
1,777
5,870
14,217
11
1,548
5,830
14,178
11
1,566
5,793
13,928
11
-25
119
359
-212
201
-279
21,588
21,373
21,875
21,567
21,298
452
-290
252,586
12,067
796
8,484
361
270,459
11,664
753
8,785
382
252,597
12,067
796
8,484
361
270,466
11,664
753
8,785
382
241,911
11,536
458
9,594
336
331
256,162
11,505
514
8,985
367
170
-10,674
-531
-338
1,111
-25
331
-14,297
-159
-239
200
-15
170
274,293
292,043
274,304
292,050
264,166
277,704
-10,127
-14,340
504,098
548,253
516,873
553,662
492,466
544,199
-11,632
-4,055
16,748
5,943
16,748
5,943
509,214
550,142
5,116
1,888
International Discretionary
Agriculture and Rural Development
Commerce, Justice, State and the Judiciary
Foreign Operations2
Labor, HHS, and Education
Total, International Discretionary
Defense Discretionary
Defense
Energy and Water Development
Commerce, Justice, State and the Judiciary
Military Construction
Veterans Affairs, HUD, Independent Agencies
Investment Programs
Total, Defense Discretionary
Total Discretionary, non-investment
Total Discretionary, investment programs
Total Discretionary
504,098
548,253
516,873
553,662
1 1993
proposed includes enacted appropriations plus supplemental proposed in the 1994 budget.
2 Amounts for Foreign Operations exclude $12,063 million in 1993 budget authority for the increase in the U.S. quota for the International Monetary Fund.
99
OFF-BUDGET FEDERAL ENTITIES
The Federal Government has used the unified budget
concept as the foundation for its budgetary analysis
and presentation since the 1969 budget. This concept
was developed by the President's Commission on Budget Concepts in 1967. It calls for the budget to include
all the Federal Government's programs and all the fiscal transactions of these programs with the public.
Since 1971, however, a number of off-budget Federal
entities have been created. Off-budget Federal entities
are federally owned and controlled, but their transactions are excluded from the budget totals by law.
When a Federal entity is off-budget, its receipts, outlays, and deficit or surplus are not included in budget
receipts, budget outlays, or the budget deficit; and its
budget authority is not included in the totals of budget
authority for the budget. The off-budget entities conduct
the same types of programs as those entities included
in the budget.
The two social security trust funds, old-age and survivors insurance and disability insurance, were moved
off-budget in 1985, and the Postal Service fund was
removed from the budget in 1989. The Budget Enforcement Act of 1990 excludes these entitiesfromthe deficit
targets and other sequester calculations except for the
administrative expenses of social security. Other entities were off-budget in earlier years but were moved
onto the budget under subsequent law.
The following table compares the total Federal Government receipts, outlays, and deficit with the amounts
that are on-budget and off-budget. Social security is
classified as off-budget for all years, in order to provide
consistent comparisons over time. The much smaller
Postal Service transactions are classified as off-budget
starting in 1989. Entities that are now on-budget are
classified as on-budget for all years. In 1994 the offbudget receipts are an estimated 27 percent of total
receipts, and the off-budget outlays are an estimated
18 percent of total outlays.
COMPARISON OF TOTAL, ON-BUDGET, AND OFF-BUDGET TRANSACTIONS
Fiscal Tear
Receipts
Total
On-budget
1970
1971
1972
1973
1974
192.8
187.1
207.3
230.8
263.2
159.3
151.3
167.4
184.7
209.3
1975
1976
TQ
1977
1978
1979
279.1
298.1
81.2
355.6
399.6
463.3
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
Total
On-budget
27.6
32.8
36.9
45.6
52.1
-2.8
-23.0
-23.4
-14.9
-6.1
-8.7
-26.1
-26.4
-15.4
-8.0
5.9
3.0
3.1
0.5
1.8
271.9
302.2
76.6
328.5
369.1
403.5
60.4
69.6
19.4
80.7
89.7
100.0
-53.2
-73.7
-14.7
-53.7
-59.2
-40.2
-55.3
-70.5
-13.3
-49.8
-54.9
-38.2
2.0
-3.2
-1.4
-3.9
-4.3
-2.0
590.9
678.2
745.8
808.4
851.8
476.6
543.1
594.4
661.3
686.0
114.3
135.2
151.4
147.1
165.8
-73.8
-79.0
-128.0
-207.8
-185.4
-72.7
-74.0
-120.1
-208.0
-185.7
-1.1
-5.0
-7.9
0.2
0.3
186.2
200.2
213.4
241.5
263.7
946.4
990.3
1,003.9
1,064.1
1,143.2
769.6
806.8
810.1
861.4
932.3
176.8
183.5
193.8
202.7
210.9
-212.3
-221.2
-149.8
-155.2
-152.5
-221.7
-238.0
-169.3
-194.0
-205.2
9.4
16.7
19.6
38.8
52.8
749.7
760.4
788.0
833.9
913.1
281.7
293.9
302.4
311.8
338.1
1,252.7
1,323.8
1,380.9
1,467.6
1,515.3
1,027.6
1,082.1
1,128.5
1,200.4
1,235.9
225.1
241.7
252.3
267.2
279.4
-221.4
-269.5
-290.4
-322.0
-264.1
-278.0
-321.8
-340.5
-366.5
-322.8
56.6
52.2
50.1
44.5
58.7
972.3
1,037.5
1,084.3
1,121.0
355.3
375.3
391.9
409.5
1,574.4
1,624.6
1,690.1
1,781.0
1,283.9
1,325.3
1,380.8
1,461.6
290.5
299.3
309.3
319.4
-246.7
-211.7
-214.0
-250.4
-311.5
-287.8
-296.6
-340.6
64.8
76.1
82.6
90.1
Total
On-budget
33.5
35.8
39.9
46.1
53.9
195.6
210.2
230.7
245.7
269.4
168.0
177.3
193.8
200.1
217.3
216.6
231.7
63.2
278.7
314.2
365.3
62.5
66.4
18.0
76.8
85.4
98.0
332.3
371.8
96.0
409.2
458.7
503.5
517.1
599.3
617.8
600.6
666.5
403.9
469.1
474.3
453.2
500.4
113.2
130.2
143.5
147.3
166.1
734.1
769.1
854.1
909.0
990.7
547.9
568.9
640.7
667.5
727.0
1990
1991
1992
1993 estimate
1994 estimate
1,031.3
1,054.3
1,090.5
1,145.7
1,251.3
1995 estimate
1996 estimate
1997 estimate
1998 estimate
1,327.7
1,412.9
1,476.1
1,530.5
Surplus or deficit (-)
Outlays
Off-budget
Off-budget
Off-budget
101
REDUCTIONS IN ADMINISTRATIVE COSTS
On February 10, 1993, the President issued Executive
Order 12837, which requires Executive Branch departments and agencies to reduce administrative expenses.
The Executive Order instructs agencies to achieve savings that are calculated as fixed percentage reductions
from the amounts of administrative expenses made
available for 1993 adjusted for inflation: three percent
in 1994, six percent in 1995, nine percent in 1996,
and fourteen percent in 1997-1998.
Estimates of the amounts of administrative expenses
made available for 1993 were taken from object classification data for contractual services and supplies provided in support of the January 1993 budgetary statement. Expenses for which agencies receive reimbursement from the public or other government agencies
were excluded from the baseline, as were expenditures
that are programmatic in nature. The reduction percentages were applied against this baseline, and the
savings included in each agency's approved budget totals.
The table below, "Administrative Expense Savings",
shows the 1993 base and 1994-1998 savings for nondefense, Executive Branch agencies. Defense agencies
(e.g., Department of Defense, portions of Department
of Energy and Federal Emergency Management Agency) are subject to the administrative expense reduction,
but the savings were included in the calculation of their
agency totals rather than being separately calculated.
During the coming year, both the administrative expense base and the reductions will be reviewed to ensure that consistent definitions and methodologies have
been applied across the government. Agencies have
been asked to ensure that administrative expenses are
tracked so that more detailed information can be presented in the 1995 Budget.
ADMINISTRATIVE EXPENSE SAVINGS1
(In millions of dollars)
Savings
Agency
1993 base
Cabinet Agencies:
Agriculture
Commerce
Education
Energy
Health and Human Services
Housing and Urban Development
Interior
Justice
Labor
State
Transportation
Treasury
Veterans Affairs
2,161
610
62
4,477
4,569
203
1,304
1,112
338
926
953
1,851
454
Other Agencies:
ACTION
Agency for International Development
Arms Control and Disarmament Agency
Commodity Futures Trading Commission
Corps of Engineers
Environmental Protection Agency
Equal Employment Opportunity Commission
Executive Office of the President
Federal Communications Commission
Federal Emergency Management Agency
General Services Administration
National Aeronautics and Space Administration
National Archives and Records Administration
National Gallery of Art
National Labor Relations Board
National Science Foundation
Nuclear Regulatory Commission
Office of Personnel Management
Peace Corps
Railroad Retirement Board
13
198
18
12
173
261
22
36
14
16
83
1,288
36
16
12
27
258
34
102
18
1994
1996
1995
-67
-19
-2
-138
-142
-6
-40
-34
-10
-29
-29
-57
-14
1997
1998
1994-1998
total
-137
-39
-4
-283
-293
-13
-82
-70
-21
-59
-60
-117
-29
-210
-59
-6
-435
-453
-20
-127
-108
-33
-90
-93
-180
-44
-335
-95
-10
-694
-726
-31
-202
-172
-52
-143
-148
-287
-70
-343
-97
-10
-711
-747
-32
-207
-177
-54
-147
-151
-294
-72
-1,092
-308
-31
-2,262
-2,360
-102
-659
-562
-171
-468
-482
-935
-229
-1
-1
-13
-1
-1
-11
-16
-1
-2
-1
-1
-5
-81
-2
-1
-1
-2
-1
-3
-1
-2
-6
-1
-1
-19
-2
-1
-17
-25
-2
-4
-1
-2
-8
-125
-4
-2
-1
-3
-17
-3
-10
-2
-2
-31
-3
-2
-27
-40
-3
-6
-2
-3
-13
-200
-6
-2
-2
-4
-27
-5
-16
-3
-2
-32
-3
-2
-28
-41
-3
-6
-2
-3
-13
-205
-6
-3
-2
-4
-27
-5
-16
-3
-7
-100
-9
-6
-88
-132
-11
-18
-7
-8
-42
-651
-18
-8
-6
-14
-71
-17
-51
-9
-6
-1
-5
-8
-1
-1
-1
-3
-40
-1
- *
103
104
THE BUDGET FOR FISCAL YEAR 1994
ADMINISTRATIVE EXPENSE SAVINGS 1 -Contlnued
(In millions of dollars)
Savings
Agency
Securities and Exchange Commission
Small Business Administration
Smithsonian Institution
United States Information Agency
All other agencies
Total, Executive Branch
1
Non-defense, Executive Branch agencies only.
1993 base
1994
1995
1996
1997
1996
1994-1996
totrf
72
62
141
272
128
-2
-2
-4
-8
-4
-5
-4
-9
-17
-8
-7
-6
-14
-26
-12
-11
-10
-22
-42
-20
-12
-10
-22
-43
-20
-37
-31
-71
-138
-65
22,334
-681
-1,400
-2,171
-3,466
-3,556
-11,275
Progress Report: High Risk Areas
for Management Improvement
105
PROGRESS REPORT: HIGH RISK AREAS FOR MANAGEMENT IMPROVEMENT
The High Risk Program focuses attention and resources on eliminating major risks confronting Federal
agencies and programs. High risk areas are those weaknesses that warrant the personal attention of the agency head and the Congress to ensure correction. OMB
compiles the List and publishes it in the President's
budget in order to assure attention to these matters
and to provide a tool for public accountability.
As agencies make progress in correcting high risk
areas, they are removed from the List. And as new
problems emerge, areas are added to the List. At the
beginning of 1993, the List includes 104 high risk
areas. For the 93 high risk areas that have been on
the List throughout 1992, OMB assessed agency
progress in correcting high risk areas. The following
is a progress report (originally published in January
1993) on agency efforts to correct high risk areas.
OMB's assessment of agency progress is presented
in column 3, "Assessment." The assessment codes are:
(1) Significant progress; (2) Active efforts underway to
improve progress; (3) Reservations about adequacy of
progress and/or plans; (A) Added to High Risk List;
and (D) DeletedfromHigh Risk List.
Information on 1993 management investments to
correct high risk areas is displayed in columns 4 and
5. Management investments are the critical, marginal
amounts of funding needed to ensure that the corresponding program funding is spent efficiently and effectively. Column 4 (1993 Request) represents the management investment as requested in the 1993 President's
Budget. Column 5 (1993 Enacted) represents the management investment following Congressional action.
DEPARTMENT OF AGRICULTURE
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
Farmer's Home Administration (FmHA) and
Rural Development Administration (RDA)
Loan Programs: High total delinquencies
($10.1B) and high delinquency rates
(18.3%) in 1992.
There are $55B in outstanding FmHA and
RDA loans. At risk: up to $10.1B in delinquent loans.
Food and Nutrition Service (FNS): Food
Stamp Coupon illegal trafficking for cash,
drugs and weapons.
1993 Budget includes $23B for Food Stamp
Program. At risk: est. $100M in benefits
diverted annually.
Federal Crop Insurance: overpayment of
claims.
Federal Crop Insurance has a $1B annual
operating level. At risk: $100M in losses
paid to reinsurance companies.
FmHA has taken the following steps to improve credit management (i) improving underwriting through a second level
review of new loans; (ii) expanding the use of contract appraisals; and (H) contracting for a study of centralized
servicing of its single family housing portfolio. FmHA developed an agency-wide Strategic Business Plan in June
1992 that provides guidance on improving credit quality and management of its loan portfolio.
1993
Enacted
8,764
8,764
5,750
5,750
Next steps: FmHA will in 1993 (i) determine a course of action for implementing centralized servicing of its single family housing portfolio; (ii) review and implement State Plans for improved underwriting and appraisals; and (iii) initiate
an information Systems Plan (ISP) to guide FmHA automation efforts. Modest resources will be needed to implement single family housing centralized servicing.
In 1992, FNS (i) initiated an update of intapation on authorized retailers (completion in December 1993) and a test
case under the Program Fraud Civil RefflMtes Act (PFCRA) to allow USDA to levy civil damages against retailers
(completion in mid-1993); (ii) continued evaluation of the use of electronic benefit transfer (EBT) systems; (iii) implemented program integrity modifications enacted by Congress in the 1990 Food Stamp legislation; and (iv) began hiring and training 12 new staff investigators and 5 new EBT analysts.
Next steps: FNS will (i) procure equipment to enhance trafficking investigations; (ii) continue the PFCRA pilot process
to determine feasibility of full program implementation; and (iii) update the Retailer Policy handbook. Enforcement
action improvements require continued increased funding for investigative and program staff.
FCIC has implemented a new strategy to strengthen management oversight and monitoring of reinsured companies.
This includes: 0) on-site review and reporting of financial activity of reinsurance companies; (ii) systematic operational reviews of policy premiums and indemnities, as well as compliance with Standard Reinsurance Agreement
requirements; and (iii*) expansion of computer capabilities to perform review of claims data. FCIC reports a reduction
in claims overpayments from 26 percent in 1988 to 8 percent in 1991.
107
108
THE BUDGET FOR FISCAL YEAR 1994
DEPARTMENT OF AGRICULTURE—Continued
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thlousands
of dolllars)
1993
Request
1993
Enacted
Next steps: Continue monitoring reinsurance companies. USDA OIG is conducting an audit of program improvements;
report scheduled for issuance by April 1993. No additional resources needed.
FmHA, Rural Rental Housing Program
(Multi-family loans and Rental Assistance): Multi-family housing (MFH) program lacks adequate oversight and internal controls.
Outstanding MFH loans total $10.3B, with
$22M delinquent in 92. At risk: annual
losses of approximately $35M (fraudulent
construction and maintenance) and $79M
(interest credit and rental assistance payments).
FmHA plans to reduce vulnerability in the MFH program through a combination of specialized financial analysis training, centralization of the MFH program in the State offices, amended regulations, and new legislation. In 1992,
FmHA (i) conducted financial analysis training for its National Office Staff and 800 field employees; and (ii) proposed regulations to (a) strengthen loan underwriting and auditing procedures; (b) require project reserve accounts
be deposited in supervised bank accounts; and (c) limit profit layering, subsidy layering and other activities associated with Identities of Interest problems. Two legislative initiatives were enacted in 1992: rural housing vouchers,
and increased equity contributions.
A
Next steps: In 1993, FmHA will (i) continue specialized training program; (ii) finalize the proposed rules; (iii) propose
legislation to permit tenant wage matching; and (iv) continue centralization of the MFH program into the State offices. No additional resources needed.
DEPARTMENT OF COMMERCE
High Risk Area
Progress to Date and Next Steps
Assessment
Investmlent to
Correct High Risk
Area (In tflousands
of dollars)
1993
Request
DOC computer site security weak.
1993 budget provides $514M for ADP. At
risk: assurance that this investment and
DOC data are protected from loss.
DOC has developed a methodology for preparing ADP security plans for all sensitive and classified systems. Operating units identified 1,100 sensitive and classified systems, and submitted over 700 security plans. Implementation of
each plan is monitored by DOC using a PC-based system and on-site verifications. DOC has an active computer
security awareness program. As a result, operating units now routinely scan foreign diskettes for malicious software
before use, avoiding the loss of data and time to recover damaged systems and files. Also, incidents of computer
hacking have been detected and promptly reported and investigated by the Secret Service.
1993
Enacted
1
1,500
0
2
5,200
1,000
2
2,230
2,230
2
(1)
(1)
Next steps: (i) Continue to monitor security plan implementation (including on-site verification), (ii) initiated, beginning
in January 1993, an annual assessment of each bureau's security program. Failure to receive funding in 1993 required DOC to reallocate funds from other programs.
DOC financial systems are seriously outdated, fragmented, inadequately controlled, and costly and difficult to maintain.
DOC financial systems process $3B annually. At risk: assurance that these funds
are being accounted for in an accurate
and timely fashion.
National Weather Service's (NWS) National
Oceanographic and Atmospheric Administration (NOAA): Major systems acquisition
problems delaying NWS modernization.
1993 budget provides $128.6 M for procurement of NWS systems. At risk: $50-60M
in additional annual operating expenses if
acquisition costs are not controlled.
NOAA: Geostationary Operational Environmental Satellite (GOES) technical development problems.
1993 budget provides $118M for GOES. At
risk: the loss of weather estimating capability.
In 1992, (i) two DOC bureaus implemented cross-servicing arrangements for accounting support from other agencies;
(ii) accounting services contract awarded to provide assistance to DOC financial organizations in improving data
quality; and (iii) two bureaus prepared 1991 financial statements in accordance with OMB guidance. However, milestone dates for the Department-wide financial system implementation have been slipping due to cuts in the President's 1993 budget request and changes in strategy resulting from them.
Next steps: (i) Complete the evaluation of use of the U.S. Army Corps of Engineers core accounting system as DOCwide system, (ii) Define requirements for travel, procurement, and real and personal property, (iii) Produce 1992 financial statements for all DOC CFOs Act reporting entities. Department-wide financial system improvements in 1994
require funding.
NOAA has experienced contract cost overruns, missed deadlines, and contract disputes in its efforts to replace technically obsolete and costly-to-maintain weather systems with those that can analyze and predict destructive weather
patterns. In 1992, contract disputes were settled and deadlines are now being met. Contract management problems
have been mitigated by the establishment, in 1991, of the Systems Program Office which has consolidated the design, procurement and acceptance of new systems. This Office's effectiveness is measured by the fact that NOAA
installed 14 tri-agency Next Generation Weather Radar (NEXRAD) systems, and activated 131 tri-agency Automated
Field Operations and Services (ASOS) units. All are performing well.
Next steps: In 1993, (i) award Advance Weather Interactive Processing System (AWIPS) development contract; (ii) acquire supercomputer for National Meteorological Center; and (iii) operate prototype Weather Forecast Office in 1993.
Funds will be required in 1994 to continue contract management improvements.
NOAA must overcome the technical development problems affecting GOES-NEXT satellites (under contract to NASA),
which have caused increased costs, schedule slippage, and the potential for reduced satellite capacity. Contractor
delays resulted in rescheduling launch from 1990 to 1994. In 1992, NOAA closely monitored NASA and GOES contractors to ensure satellite performance and definitive launch date; only limited performance compromises necessary
to minimize schedule delay and cost increases were accepted. By providing Government financed expertise to contractors, the Department was able to minimize the effects of poor planning and overall poor effort by the manufacturers of the GOES instruments. GOES-I spacecraft proceeding through testing process without major problems;
the program is on schedule to launch in 1994.
109
PROGRESS REPORT: HIGH RISK AREAS FOR MANAGEMENT IMPROVEMENT
DEPARTMENT OF COMMERCE-Continued
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
1993
Enacted
Next steps: Full use of Meteostat 3 implemented by January 1993 (Meteostat 3 is the first step toward a long-term
U.S.-European relationship for backup capabilities.) NASA will complete qualification testing of GOES-I spacecraft
and the qualification testing of flight instruments by June 1993. Funds will be required in 1994 to continue to monitor systems qualifications and launch of the satellite.
(1) Included above.
DEPARTMENT OF DEFENSE
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
DOD and Services: Supply operations inadequate, weakening effective management
of inventories.
DOD supply inventory almost $80B in 1992.
At risk: $100M in potential loss or theft.
DOD's actions in 1992 to implement its first Inventory Reduction Plan (IRP), issued in May 1990, include: (i) 57 directives integrated into a single directive that resolves policy conflicts and reduces redundancy; (ii) new provisioning
standards to control entry of new items into the inventory; (iii) issuance of contract modifications/terminations when
"buy" requirements are changed (22% of active contracts canceled in 1992); and (iv) direct vendor delivery to reduce inventory investment and distribution costs at DOD storage depots. Depot consolidations (now under the Defense Logistics Agency) have been slowed because final actions are needed on repositioning of stocks and on development of a migratory accounting system.
2
1993
Enacted
39,100
39,100
2
594.40C
594,400
2
N/A
N/A
1
N/A
N/A
Until reforms are fully operational (expected in 1997), components continue to be affected by (i) excess retail inventories; '(ii) unneeded purchases not being canceled; (iii) earlier than needed purchases; and (iv) excessive lead
times resulting in unnecessary procurements.
Next steps: Implementation of the DOD IRP is scheduled to continue through 1997. DOD projects end of year inventory levels (in constant 1990 dollars) of $74B (1993), $62B (1995) and $55B (1997). Funds will be required in 1994
to support depot consolidations and related activities.
DOD and Service information technology development and ADP security deficient.
The $9.5B DOD Information Technology
budget for 1993 includes $2.5B for development and modernization. At risk: use of
old and inefficient processes, and unauthorized access or misuse of sensitive
Defense data.
Corporate Information Management (CIM) system designed to improve the business process and eliminate redundant
information systems. Accomplishments in 1992 include: (i) planning for standardization of 7 functional area systems
(finance, medical, human resources, reserve affairs, procurement, material, and intelligence); (ii) selection of 7 financial migration systems; (iii) identification of 5 logistics migration systems; (iv) establishment of Center for Software
Reuse; (v) start-up of Center for Data Administration; (vi) definition of Technical Reference model in support of open
systems; and (vii) implementation of a pilot project for purchase of information technology commodities. Use of the
Major Automated Information System Review Council (MAISRC) process, to vet new program requirements will
identify potential duplication and lead to consolidation of efforts or expansion of CIM into new business areas.
DOD has developed a comprehensive strategy to address weaknesses. This strategy includes (i) development of more
specific implementation plans; (ii) upgraded ADP security; and (iii) development of adequate ADP equipment and
property accountability records. Security measures are being implemented in compliance with P.L. 100-235, and
OMB and National Institute of Standards and Technology guidance.
Next steps: Ongoing Defense Management Report initiatives involving CIM should produce $36B in savings and efficiencies by 1997. To meet these budget goals, CIM must be institutionalized in DOD, effective funding controls put
in place, and the role of the Office of Secretary of Defense and the military services clearly defined. The CIM initiatives, including improved ADP security, will continue to be monitored under the Program for Priority Systems (PPS)
by the Office of Management and Budget. Resources will be needed in 1994 to continue the development of necessary information systems.
DOD and Service contract administration
controls over DOD property in private
contractor possession inadequate.
$77.1 B in property and facilities in possession of DOD contractors. At risk: $17M in
potential loss or theft.
DOD and Service controls over contracted
advisory and assistance services (CAAS)
inadequate or non-existent.
CAAS contracts estimated at $1.5B annually.
At risk: $15M in potential fraud or waste.
DOD has implemented procedural changes and an automated validation process that controls contractor access to
DOD Activity Address Codes to correct previously reported problems associated with unauthorized contractor access
to the DOD supply system. DOD is implementing an electronic plant clearance system for disposing of surplus contractor inventory. Systems testing is underway.
Next steps: Install Plant Clearance Automated Reutilization Screening System (PCARSS) on the following schedule:
test plant clearance and re-test reprogrammed system (April 1993); and begin deployment of system (June 1993).
No additional resources are required.
In February 1992, DOD implemented new procedures that (0 strengthen management controls and procedures for the
use of CAAS resources; (ii) better define CAAS for identification and reporting purposes; (iii) require an annual assessment of component internal management controls; (iv) require component sponsored CAAS training; and (v) require an annual assessment to the Under Secretary of Defense (Acquisitions) of component implementation of
CAAS policy and procedures. In April 1992, DOD distributed a "Guide to Contracted Advisory and Assistance Services," to help users of contractor support services better understand the procedures for acquiring and using CAAS.
DOD funding for CAAS has been reduced from $1.6 billion in 1989 to $1 billion in 1993.
110
THE BUDGET FOR FISCAL YEAR 1994
DEPARTMENT OF DEFENSE-Continued
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
1993
Enacted
Next steps: (i) DOD will monitor component execution of the management improvements, (ii) DOD is also working
closely with OMB's Office of Federal Procurement Policy to implement a new Government-wide policy letter on
management oversight of all nonpersonal services contracting (including CAAS). No additional resources are required in 1994.
DOD and Service financial accountability for
real and personal property is inadequate.
DOD inventory estimated at $706B. At risk:
$800M in potential lost or stolen property.
The Department must develop a single departmental accounting system to control, track, and value ail real and personal property for financial reporting purposes, and then reconcile accounting data with supporting logistics systems.
In 1992, DOD centralized finance and accounting functions in the Defense Finance and Accounting Service (DFAS).
To improve the quality of real and personal property data, DOD has made systems and procedural changes to facilitate preparation of financial information statements required by the Chief Financial Officers Act; and established
an office to coordinate accurate valuation and accounting among procurement, logistics, and accounting functions.
Through the CIM initiative, DOD has completed data and process models, but has not selected a migratory accounting system. GAO and Inspector General audits continue to illustrate serious weaknesses in DOD's financial
systems. Due to the severity of systems problems, DOD must implement near term actions in addition to moving toward long term improvements.
28,000
28,000
Next steps: DFAS to 0) select migratory accounting system in April 1993; (ii) develop standards and reporting procedures for valuing assets; (H) implement migratory accounting system (1996); and (iv) finalize requirements and systems design for the CIM financial management module (1997). There is a continuing need to provide funds in 1994
to fund system upgrades.
DEPARTMENT OF EDUCATION
High Risk Area
Progress to Date and Next Steps
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
ED student financial aid program management Guaranteed Student Loan (GSL)
and other SFA program abuses, fraud,
and significant management weaknesses.
Higher Education Act (HEA) reauthorized with new program integrity provisions; 179 schools with default rates of 35%
or higher identified, 139 closed or rendered ineligible; guaranty agency data used to prevent defaulters from getting
new loans; guaranty agency operations under review, Office of Postsecondary Education reorganized. Default costs
went down from $3.6B in 1991 to $2.8B in 1992 for reasons not related to default rates, which have not declined.
1993 appropriation includes $12.9B for student aid programs. At risk: Capacity to reduce projected annual $2.96 in defaults
to an acceptable level.
Next steps: (i) Issue HEA regulations; (ii) continue default initiative, including legislative proposal to correct statutory
language related to appeals; (H) implement legislative authority to garnish wages; (iv) continue intensive monitoring
of guaranty agencies and lenders; and (v) award National Student Loan Data System (NSLDS) contract to improve
information systems. Resources required in 1994 for monitoring, oversight, NSLDS, and default initiative.
ED inability to produce reliable financial reports due to inadequate financial systems.
ED is redesigning its financial systems to address two major weaknesses: (i) the inability of the core accounting system to produce reliable financial statements due to incorrect information in subsystems which provide data to the
core system; and (ii) obsolete and incompatible ADP platforms in support of major elements of core financial systems. In 1992, the Department continued correction of prior year data in the accounting and payment systems, and
expanded the project to a broader examination of functional and data requirements, as well as a review of the required ADP platform, for upgrading or replacing core financial systems. The redesign effort will address reconciling
both platform and coordination issues in the management of ED's financial systems.
$31B in loan subsidies, grants and administrative costs supported by these systems.
At risk: whether (i) information for reporting and effective management of these
programs is reliable, and 00 investments
in new systems are worthwhile.
Enacted
38,800
21,529
8,100
1,248
3,600
3,500
Congress reduced the President's 1993 S&E request. ED allocated the cuts and decided that programmatic issues
were more important than management reform.
Next steps: (i) Complete analysis of functional and data requirements during 1993 as a basis for detailed work plan for
core financial systems redesign, (ii) Continue cleanup of data in both core and major subsystems, (iii) Develop modules to summarize subsystem data to feed core accounting system. Design progress requires funding in 1994 and
future years.
ED-Wide Audit Follow-Up and Internal Controls: Audit follow-up improvements needed. Internal control process not identifying
material
Internal Controls: 1993 budget is over $31B.
At risk: assurance that these funds are
effectively monitored.
Audit Follow-Up: ED receives audit reports
with monetary findings of $500M annually.
At risk: up to 20% if audit follow-up is not
timely and effective.
Internal control problems have been sufficiently corrected to warrant removal from the High Risk List; audit follow-up
will remain on the Ust.
Internal Controls: ED internal control process is now identifying material weaknesses. In 1992, (i) Management Audit
Committee created to increase program office accountability; (ii) inter-office committee of top managers established
to monitor progress and lead improvements in internal controls; and (iii) annual training provided to senior and mid
level managers.
Audit Follow-up: ED is developing a validation strategy for follow-up on audits of ED grantees. In 1992, audit follow-up
training was provided; and audit tracking was improved by issuing regular reports from the automated Common
Audit Resolution System (CARS). However, new audit follow-up problems have emerged, including an increase in
the number of audits overdue for resolution.
111
PROGRESS REPORT: HIGH RISK AREAS FOR MANAGEMENT IMPROVEMENT
DEPARTMENT OF EDUCATION-Continued
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
1993
Enacted
Next steps: (i) Incorporate grantee audit validation procedures in Audit Resolution Systems handbook, (ii) Increase accountability through inter-office monitoring committees, (iii) Improve tracking by expanding CARS, (iv) Develop policies on prioritizing audits and on documentation needed to close out audits. ED will also need to develop plans to
expand the capacity of their audit resolution system due to the increased number of grantee audits mandated by recent statutory and OMB policy changes. Resources will be required for this purpose in 1994.
ED-Wide Program Monitoring, compliance
and performance monitoring inadequate.
1993 Department budget is over $31B. At
risk: assurance that these funds are being
spent effectively.
The Department-wide Monitoring and Performance Measures Team (MPMT) is charged with developing a comprehensive monitoring strategy and performance measurement system. The MPMT reflects ED's plan to expand program
monitoring beyond compliance issues to measure program performance. In 1992, the Department, with the assistance of the National Academy of Public Administration, developed draft performance measures for a pilot ED program. The draft measures are now being reviewed by the MPMT. ED also issued a draft discretionary grant monitoring directive. The MPMT is now working to resolve comments on the draft.
2
14,200
8,090
2
400
396
Congress' cut of President's 1993 request allowed ED to increase overall FTE only by 100. Due to the need to put
substantial resources into improving the GSL Program, ED did not fully fund this requirement.
Next steps: (i) Develop performance measures for up to 5 pilot programs, (ii) Issue final discretionary grant monitoring
directive, (iii) Develop directive on formula grants monitoring. ED will require resources for on-site monitoring in
1994.
ED-Wide Computer Security, security of
computer systems inadequately reviewed.
ED uses computer systems to award and
disburse over $30B in financial assistance
annually. At risk: integrity and confidentiality of some data maintained in computer
systems, and assurance of the security of
funds processed and monitored through
ED systems.
15 of 17 planned security reviews of major financial computer systems were completed by December 1992 (however,
one review did not meet OMB Circular A-130 requirements). To date, none of these reviews have identified material weaknesses or nonconformances in ED computer systems. Some non-material weaknesses have been identified, and ED has initiated corrective action. Other steps being taken by ED include: (i) an ADP Security Manual update; and (ii) development of an ADP technical controls handbook detailing security procedures for local and wide
area networks.
Next steps: (i) Complete reviews of remaining major financial computer systems. This requires continued budgetary
support in 1994. (ii) Continue correction of non-material weaknesses identified in reviews.
DEPARTMENT OF ENERGY
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
Reconfiguration of DOE Nuclear Weapons
Complex: Weapons complex must be
reconfigured as policy decisions are made
on reducing the nuclear weapons arsenal.
The 1993 budget includes $6.5 billion for
nuclear weapons-related programs. At
risk: nuclear deterrence capabilities.
The DOE nuclear weapons production complex contains aging facilities that will require increased maintenance and
upgrades if operations are to continue. In FY 1992, DOE (i) completed its Non-nuclear Consolidation Plan; (ii) conducted a power ascension test of the K reactor at Savannah River; (iii) completed the implementation plan for the
Programmatic Environmental Impact Statement (PEIS) for the reconfigured complex; (iv) indefinitely deferred construction of a new production reactor; (v) resumed plutonium operations at Building 559 at Rocky Flats; (vi) completed operational readiness review for Building 707 at Rocky Flats; (vii) completed a Nuclear Weapons Complex
Reconfiguration Study that was submitted to Congress and released to the public; and (viii) began an environmental
assessment for consolidating non-nuclear manufacturing facilities on an accelerated schedule.
1993
Enacted
2
175,360
175,360
2
50,800
50,800
Next steps: (i) Prepare and complete environmental assessments for consolidation of non-nuclear facilities and reconfiguration of the nuclear weapons complex, (ii) Publish in a Record of Decision DOE's final decision regarding
course of action, degree of consolidation, and sites for accomplishing the mission of the nuclear weapons complex
referred to as "Complex-21". Increased resources will be required in FY 1994 (within a decreasing total for ail nuclear weapons-related activities).
Environmental compliance: DOE faces large
and complex environmental cleanup problems at many of its facilities.
The 1993 budget includes $5.5B for cleanup activities. At risk: potential long-term
adverse impacts to workers, the public or
the environment; and failure to comply
with external environmental regulations
and/or agreements.
Progress has been made in ascertaining levels of compliance and altering DOE's culture to meet changing objectives.
However, resolving this issue will be a long-term and costly effort. In 1992, DOE (i) completed nine additional tiger
team reviews, bringing the total to 35; (ii) developed a risk-based priority system to help ensure that funding decisions reflect a national strategy and are technically defensible; (iii) conducted environmental training workshops at
Headquarters and most field sites; (iv) implemented a self-assessment program continually to evaluate the performance of DOE and contractor line management; and (v) developed a detailed action plan to address cost control,
cost estimating and overhead cost allocation recommendations made in the 1992 Interagency Review Group report.
112
THE BUDGET FOR FISCAL YEAR 1994
DEPARTMENT OF ENERGY-Continued
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area [In thousands
of dollars)
1993
Request
1993
Enacted
Next steps: (i) Continue implementing the Environmental Restoration and Waste Management (ERWM) Five-Year Plan,
(ii) Implement recommendations of the Interagency Review Group, (iii) Issue Programmatic Environmental Impact
Statement for the ERWM program, (iv) Reduce risk of accidental release of radioactivity from underground tanks at
Hanford site, (v) Expand environmental training to all levels of DOE. (vi) Continue resolution of mixed waste and
materials issues with the EPA. (vii) Continue to work with regulators to negotiate, and where necessary, renegotiate
realistic schedules and commitments that reflect risk-based priorities. Continued substantial resources will be needed in 1994.
Nuclear safety. Safety deficiencies exist jaX
some DOE nuclear facilities.
The 1993 budget includes $1.3B to address
health and safety risks (both nuclear and
non-nuclear). At risk: protection of DOE
workers, the public and the environment.
A new safety culture must be implemented through all levels of the Department and with the contractors that operate
DOE facilities. Tiger team reviews have been completed at DOE's 20 nuclear production and processing facilities
and corrective actions are underway for problems identified. In 1992, DOE (i) continued the implementation of a self
assessment program to evaluate the performance of DOE and contractor line management; (ii) initiated a comprehensive plan to establish a new baseline for nuclear safety; and (iii) published safety enforcement procedures
and the first set of rules establishing nuclear safety requirements for DOE contractors in the Federal Register.
2
13,37f
13,375
2
18,300
18,300
2
286
286
2
3,500
3,500
Next steps: (i) Development of a safety and health five-year plan which identifies nuclear safety milestones and resource requirements, (ii) Study of the feasibility of improving accounting controls through establishing a budget coding system for nuclear safety activities across all program areas, (iii) Compilation of a comprehensive epidemiological database better to define the magnitude of health and safety problems, estimate costs of corrective action, and
establish a new baseline for nuclear safety, (iv) Completion of the nuclear safety standards upgrade project, (v) Im
plementation of approved plans to correct safety deficiencies. Resources will continue to be required in 1994.
Nuclear Waste Storage & Disposal Nuclear
waste storage and disposal capability is
inadequate.
The 1993 budget includes $577.6M for this
program area. At risk: timely availability of
storage and disposal of nuclear waste at
a Federal facility.
Recent legislation allows DOE to begin the experimental program at the Waste Isolation Pilot Plant (WIPP) in New
Mexico to demonstrate compliance with disposal requirements for radioactive transuranic wastes. These tests will be
initiated following the adoption of rules governing the permanent storage of radioactive waste by the EPA. DOE has
renewed in earnest the site characterization of the candidate repository site for spent fuel and high level radioactive
waste at Yucca Mountain, Nevada, and the State of Nevada recently provided DOE with the requisite permits to
proceed with this characterization effort. Cost estimates for the characterization of Yucca Mountain have increased.
DOE must address concerns regarding the significant budgetary growth proposed for the M&O contractor at the Office of Civilian Radioactive Waste Management (OCRWM). Despite progress at Yucca Mountain, important management issues remain. These are: (i) NRC regulations and policy are not sufficiently specific to enable DOE management to draw conclusions about the licensability of the repository, thus limiting management effectiveness; and (ii)
receipts are not permanently appropriated, so management cannot properly budget for multi-year projects. Additionally, decisions on building a Monitored Retrievable Storage (MRS) facility remain open.
Next steps: (0 Address Yucca Mountain management issues described above and describe progress in the mid-year
report to OMB. (ii) Continue negotiations among nuclear waste negotiator, State, local, and tribal governments to
identify a volunteer candidate site for Monitored Retrievable Storage (MRS) for spent nuclear fuel or develop an alternative for interim storage of civilian radioactive waste. Increased resources will likely be required in 1994.
Reimbursable work: DOE reimbursable work
controls need improvement.
The 1993 budget includes $3.2B in apportionment authority for this function. At
risk: work accepted fulfills competitive
contracting standards and meets DOE's
mission.
Contract/Project Management Weaknesses
exist in contract and project management
for contractor operated DOE facilities.
The 1993 budget includes $17B for DOE
contracting. At risk: assurance that contract funds are being spent efficiently and
effectively.
DOE has implemented pricing procedures to address concerns that departmental pricing practices do not recover all
allocable costs. However, DOE needs to ensure that DOE reimbursable work programs do not represent attempts
by other Federal agencies to avoid the Competition in Contracting Act. In 1992, DOE (i) established a Work for
Others (WFO) steering committee; (ii) established minimum requirements for information to be provided by sponsoring organizations and DOE contractors prior to acceptance of reimbursable work; and (iii) completed reimbursable
work reviews at major DOE sites (no significant problems identified.)
Next steps: Complete departmentwide review of the reimbursable work program and implement resulting corrective actions. Limited resources required in 1994.
DOE has (i) established an Office of Contractor Management and Administration and designated a Contracts Management Officer and a Property Management Officer at each field office; (ii) developed a program for conducting on-site
reviews of contractor business management systems; <ni> implemented a work authorization control system at selected sites; and (iv) re-established its Energy Systems Acquisition Board to improve line management communication and ensure that projects are managed on schedule and within budget. Most field offices and M&O contractors
have conducted business management self-assessments and developed corrective action plans. DOE has begun a
program to recruit top public and private sector project managers and increase training on managing large and
complex projects.
Next steps: (i) Implement project managers certification program, (ii) Implement formal change control process for
major construction projects and major systems acquisitions, (in) Negotiate improved accountability requirements to
be included in management contracts for DOE labs. Resources will continue to be required in 1994.
PROGRESS REPORT: HIGH RISK AREAS FOR MANAGEMENT IMPROVEMENT
113
DEPARTMENT OF HEALTH AND HUMAN SERVICES
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Enacted
Health Care Financing Administration
(HCFA): Medicare program data systems
inadequate to track costs and usage.
In 1992, HCFA prepared, on a timely basis, the required monthly management report which tracks Medicare costs and
usage through beneficiary entitlement, utilization, and claims history data drawn from the Common Working File.
HCFA and OMB used the reported information for Medicare program management; future refinements will be made
as necessary. DELETED FROM HIGH RISK LIST.
HCFA: Medicaid management systems inadequate to predict Medicaid costs.
HCFA has made important progress in developing systems to produce better information for Medicaid budget estimates. HCFA has developed an automated system for tracking changes to State Medicaid plans. HCFA is programming the Budget Pressures Reporting System (BPRS), which will monitor issues effecting Medicaid budgets, such
as court cases and proposed State legislation. HCFA actuaries are developing a Medicaid Budget Forecasting System (MBFS) to provide State level Medicaid budget estimates for key States. In May 1992, States were requested
to submit documentation and financial data to implement the Medicaid Voluntary Contribution and Provider Specific
Tax Amendments of 1991.
1993 projected cost of Medicaid program is
$82.6B. At risk: ability to estimate Medicaid costs accurately. Misestimates have
been as high as 10 percent of outlays.
410
410
82,000
91,700
9,011
2,255
Next steps: (i) Make BPRS and MBFS fully operational, (ii) Publish volume two of first annual State Medicaid plan
system report, (iii) Incorporate information from BPRS into mid-session review projections for the 1994 Medicaid
Budget. Some resources will be required to maintain these systems in 1994.
HCFA: Medicare making payments which
should be made by other insurers.
1993 projected cost of Medicare program is
$132B. At risk: $600M-1B annually in
payments by Medicare that should have
been covered by other insurers.
HCFA has been attempting to identify Medicare beneficiaries who have other health insurance through a data match
with SSA and IRS records. Where the data match for tax years 1987-1989 identified Medicare beneficiaries with
other insurance, HCFA has: (i) updated beneficiary files to prevent further inappropriate payments; and (ii) sent mistaken payments reports to contractors instructing them to begin the recovery process. HCFA has completed a plan
for an initial enrollment questionnaire and has begun contracting process. Despite HCFA action, there have been
delays in contracting for the initial enrollment questionnaire and recovering mistaken payments identified through the
data match.
Next steps: HCFA will (i) continue data match for 1990-1994 tax years; (ii) continue recovery and prevention activities
based on data match; (iii) evaluate effectiveness of recovery procedures; and (iv) implement initial enrollment questionnaire. These activities, particularly the data match and recovery efforts, require 1994 funding.
Indian Health Service (IHS): insufficient financial controls and inattention to management led to weaknesses in IHS programs: IHS was paying higher than Medicare rates for contract health services,
had not established effective methods to
identify and bill third party payers, and
the IHS scholarship program had high default rates.
1993 cost of IHS programs is $1.65B. At
particular risk: $318M funding for contract
health services.
IHS strategy has been fully to involve the Director and senior staff; build management's ability to detect weaknesses
and monitor performance; and charge Total Quality Management teams with authority to make corrections. In 1992,
IHS tested a rate quote concept in pilot sites, and completed a first draft of a rate quote manual. Pricing data are
now routinely available to IHS physicians. Seventy-two percent of high volume providers now offer IHS services at
rates lower than or equal to Medicare. IHS has established business offices in all 76 IHS operated service units
and begun using automated billing software. IHS has eliminated the backlog of default cases in the scholarships
program and brought the default rate down to 1.2%. New material weaknesses continue to be identified.
Next steps: IHS will focus on (i) correcting weaknesses in contract health program by expanding the rate quote pilot
and implementing new software systems; and 00 developing effective corrective actions and performance measures
for newly identified material weaknesses in cash advances, the Alcoholism program, and procurement. Increases in
funds and FTE for the IHS program operations account are required in 1994.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
Section 8 Financial Systems: HUD's existing
systems inadequate to verify tenant information in Section 8 subsidy programs
and accurately forecast funding needs for
expired Section 8 contracts that are renewed.
The 1993 budget includes $14B for low-income housing assistance. At risk: assurance that funds are used for eligible recipients, and that there is adequate fund
control for over $100B in long-term contractual funding commitments, serving 3
million families.
HUD is developing a new financial management system, CFS/TRACS, Phase I, to control tenant certification, payment
processing, program budgeting and funds control. The system will eventually be re-engineered to function as the
"Subsidies System" outlined in HUD's Five Year Financial Systems Integration Plan. (See high risk area "Departmental Financial Systems.") HUD is: (i) making progress with systems development; (ii) testing the first TRACS
software release; and (iii) is beginning to collect tenant data with selected volunteer owners/Public Housing Authorities (PHAs). While CFS/TRACS verification of contract data has been delayed, the HUD CFO Office indicates the
delay will not negatively affect HUD's overall progress.
Next steps: (i) Complete Discrepancy Resolution Plan, (ii) Develop Department-wide standards/policies to resolve contract discrepancies identified during data collection, (iii) Implement software releases of CFS/TRACS scheduled for
1993. Continued funding will be required in 1994.
2
3,472
1993
Enacted
3,472
114
THE BUDGET FOR FISCAL YEAR 1994
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT-Continued
High Risk Area
Investment to
Correct High Risk
Area (In thousands
of dollars)
Progress to Date and Next Steps
1993
HUD Departmental Financial Systems: HUD
lacks an integrated financial management
system and existing systems suffer from
inefficiencies, incompatibilities, and internal control problems.
1993 Budget includes $16.7M for implementation of the HUD Financial Systems Integration Plan.At risk: assurance that financial systems will provide accurate, timely,
and useful financial information to manage $160B in HUD insurance, guarantees, subsidies, loans and grants.
FHA: Single Family Property Disposition
controls and oversight of extensive contracted support services with area management brokers (AMBs) are inadequate.
1992 property disposition sales proceeds
were $3.2B. At risk: assurance that HUD
recovers all net sales proceeds from
AMBs.
Section & Moderate Rehabilitation program
overpaid developers, lenders, and Public
Housing Authorities.
Program terminated. At risk: $70 million in
overpayments and $30 million in excess
subsidies.
In November 1991, HUD adopted a financial management systems integration plan that recommended replacing approximately 100 existing financial and mixed systems with nine integrated financial systems. Efforts are underway
on three of the integrated financial systems: subsidies (see Section 8 high risk area), core accounting, and mortgage insurance. In 1992 the Core Accounting Project Team was formed and a plan was developed. Also, HUD organized a Management Oversight Committee to begin planning for a Mortgage Insurance System, and a contractor
is in place to develop a strategic plan.
1993
Enacted
16,72t
16,728
100
350
Historically, HUD schedules for the development and implementation of financial systems have slipped. Recent
progress is at best modest but in keeping with the current schedule.
Next steps: HUD will (i) complete core accounting functional requirements; (ii) purchase an off-the-shelf core accounting software package; and (iii) by October 1993 convert Community Planning and Development to the new core ac
counting system. Continued funding will be required in 1994.
This high risk area consists of 5 material weaknesses related to automated systems support and the procurement and
administration of extensive contract support services ranging from property management to sales closings. Program
management has reported completion of corrective actions on all weaknesses pending verification reviews. In the
case of systems support and controls over closing agent activities, the OIG verified that the SAMS system and
other corrective actions provided were adequate.
Next steps: Perform verification review of three remaining material
cation of field resources needed effectively to monitor contractor
ditional resources are needed in 1994.
in 1993 and determine the proper allo, Verification reviews may indicate that ad-
Due to inadequate controls and oversight, Public Housing Authorities (PHAs), developers, and lenders obtained excessive subsidy payments. Department has terminated program and is recalculating rents to determine excess subsidies paid. HUD has collected approximately $300 million of the estimated $400M in overpayments. For inventory
of non-coinsured projects, over $30 million in excess subsidies has been identified; collection, in the form of repayment agreements between owners and PHAs, is underway. During 1992, HUD conducted verification review of the
collection process with satisfactory results. DELETED FROM HIGH RISK UST.
Next steps: Department of Justice is litigating based on HUD's authority to recover estimated $70 billion in excess
subsidies for coinsured Moderate Rehabilitation projects. HUD will continue to track until cases are settled and/or
funds are repaid.
FHA: Single Family Mutual Mortgage Insurance (MMI) fund equity may not be sufficient to cover losses resulting from adverse economic conditions.
$300B in insurance in-force in 1992. At risk:
$1.4B in estimated losses in 1993.
FHA's 1991 independent annual actuarial study projected the MMI fund to have an economic value of $380 million at
the end of 1992. This is the first time the annual actuarial study showed a positive economic value. Although the
fund's estimated capital ratio of 0.1 percent did not meet the 1992 target of 1.25 percent that was mandated for the
MMI fund in the National Affordable Housing Act (NAHA) of 1990, over $1 billion is being contributed to fund capital
annually. The study reported that if the reforms enacted in NAHA remain in place, the fund can meet the statutory
2 percent capital ratio target for the year 2000. While the Housing and Community Development Act of 1992 repealed some HUD reforms designed to strengthen the MMI Fund (e.g., the 57 percent financing limit on closing
costs), it did not affect other key reforms of NAHA, namely the risk-based premium strcuture and the financing limit
of 97.75 percent of value.
Next steps: In 1993, HUD will review options to ensure actuarial soundness and determine next steps. Additional funding may be necessary in 1994 to implement strategies to strengthen the MMI fund to meet the required ratio.
GNMA: Title I Manufactured Housing and
Home Improvement loans made by FHA
have excessive claims against GNMA's
mortgage-backed securities program.
GNMA has suffered losses due to poor
underwriting practices, collateral depreciation, and limited (10%) FHA indemnification.
$3B in manufactured home loans outstanding; $2B in Improvement loans outstanding. At risk: estimated 1.5% of outstanding guaranteed loans in GNMA portfolio.
Public and Indian Housing (PIH): Public
Housing Modernization project grants inadequately administered by Public Housing Authorities.
$3.1 B in new budget authority in 1993. At
risk: $6.9B backlog of funds not yet obligated by grantees (including 1992).
The Title I loan portfolio real estate underwriting procedures should be strengthened. In 1992, HUD implemented regulations (i) establishing higher qualification standards for dealers and lenders; (ii) requiring greater lender oversight of
dealers; (iii) strengthening loan collateral positions; (iv) increasing down payments; (v) requiring site inspections; and
(vi) encouraging more efficient foreclosure procedures. Also in 1992, HUD's verification review of the claims processing improvements had satisfactory results. However, many portfolios have defaulted to GNMA and approximately
$100M in additional defaults are anticipated due to poor underwriting procedures in effect prior to implementation of
new regulations.
Next steps: In 1993, HUD will evaluate existing underwriting and servicing guidelines for GNMA issuers/servicers and
review options for enhanced monitoring and enforcement procedures. GNMA will perform actuarial analysis of the
portfolio, including premium structure. Additional funding in 1994 may be necessary for enhanced monitoring
GNMA contractors.
HUD is revising policy directives, training field staff in new procedures, and developing automated systems to address
Public Housing Authority (PHA) grant management problems. In 1992, the Public Housing Management Assessment
Program (PHMAP) was developed; PHMAP is an automated system that monitors PHA performance. Through
PHMAP, troubled PHAs will be identified, and HUD will be able to target corrective actions and provide technical
assistance. Ultimately, unused modernization funds can be deobligated and reallocated. This high risk area is being
merged with new high risk area described below, "Public Housing Authority (PHA) Management." MERGED WITH
NEW HIGH RISK AREA.
PROGRESS REPORT: HIGH RISK AREAS FOR MANAGEMENT IMPROVEMENT
115
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT—Continued
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
FHA: Multifamily Loan Servicing is inadequate, resulting in excessive growth in
acquired properties and assigned notes,
and noncompliance with housing quality
standards.
$44B of insurance in force. $7.4B in inventory as of 1992. At risk: $4.8B reserve for
daim losses, and housing quality for lowand moderate-income beneficiaries.
Public Housing Authority (PHA) Management PHAs are mismanaged; 43 PHAs
have been identified as "troubled", accounting for 20% of PHA units.
PHAs administer 70-80% of HUD appropriations. At risk: assurance that funds are
used for intended purposes.
Inadequate multifamily loan servicing has resulted in high levels of foreclosures and note assignments. Since 1987,
the number of units in multifamily property inventory has grown from 160,000 to 392,000 in 1992 (145 percent). In
1992, HUD issued revised policies and instructions on loan servicing and workout, and a new Multifamily Property
Disposition Management Handbook to program staff. In spite of these efforts, the multifamily inventory continues to
rise. HUD has asked for statutory relief from subsidy requirements which impede the sale of acquired property.
Congress has neither granted the statutory relief, nor appropriated the subsidies needed to sell acquired property.
1993
Enacted
3
Next steps: In 1993, HUD will initiate interim integration of multiple multifamily note processing systems into one system and provide OMB a plan to improve loan servicing and property management and disposition. This plan will
help determine 1994 funding requirements.
Recent Inspector General reports have stated that many PHAs are not effectively managed. This results in: (i) vacant
units while low-income housing waiting lists continue to grow; (ii) units that do not pass inspection guidelines for
safety and sanitation, and (iii) uncollected rents. HUD has developed the Public Housing Manage-ment Assessment
Program (PHMAP), a database for measuring performance and assessing risk of each PHA so that HUD can intervene appropriately. In 1992, HUD began implementation of PHMAP. ADDED TO HIGH RISK LIST.
A
Next steps: In 1993, HUD will continue to implement PHMAP, identify troubled PHAs, and institute corrective actions.
Also in 1993, part of the modernization set-aside of $5.5 million will be provided specifically to troubled PHAs for
technical assistance contracts. Continued funding may be necessary for PHMAP implementation and technical assistance in 1994.
DEPARTMENT OF THE INTERIOR
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
Bureau of Land Management (BLM): inadequate oil and gas inspection to verify onshore production and usage.
$500M in revenues are received annually. At
risk: $50-70M in losses due to improper
production verification.
BLM is implementing a nationwide inspection and enforcement (l&E) strategy. In 1992, BLM: (i) held l&E training
courses for managers, and nation-wide workshops; (ii) conducted alternative management control reviews; and (iii)
revised and distributed an updated l&E strategy. Concerns remain regarding the effectiveness of the revised l&E
strategy on field office performance; slippage of self-imposed program targets; and lack of senior management oversight to ensure effective implementation at the Bureau level.
1993
Enacted
3
3,500
1,348
3
1,800
1,785
2
1,810
1,810
The congressional cut of the President's 1993 request means that BLM will be able to hire only an additional 20 oil
and gas inspectors rather than the 47 FTE requested.
Next steps: During 1993, BLM needs to (i) demonstrate substantial progress at field office level in implementing its revised l&E strategies; (ii) meet self-imposed program targets; (iii) achieve senior management support of revised l&E
strategy; and (iv) refine and support DOI's budget request for increased l&E staff in 1994.
Office of Territorial and International Affairs
(OTIA): lack of financial management controls and grant oversight, weak technical
assistance program for insular areas.
OTIA 1993 budget is $340M. At risk: $30M
due to improper use of grant funds.
OTIA grant oversight is insufficient; insular governments lack adequate local management controls. In 1992, DOI (i)
prepared a report, Improving Financial Management in the Territories, the result of a joint DOI/OMB review team;
(ii) added one staff person with financial management and grants administration expertise; (iii) issued guidelines and
reporting formats to field staff to improve grant and financial monitoring; and (iv) signed a Memorandum-of-Understanding with the Army Corps of Engineers to provide on-site technical assistance in support of infrastructure grants
management in the territories. OTIA has made good progress in strengthening its own operations and procedures
regarding this high risk area; but until overall policy issues (including the status of the territories) are determined,
systemic changes cannot be accomplished.
Next steps: (i) Provide grants administration training for OTIA field and Headquarters staff and insular areas staff, (ii)
Complete agreements with each insular area regarding completion of audit resolution agreements, (iii) Complete
baseline evaluations of financial management control systems for insular governments, (iv) Form joint working group
with American Samoa to address recent GAO report recommendations on financial management, (v) Reach policy
decisions on future status of the territories. Continued funding required in 1994.
Bureau of Indian Affairs (BIA): seriously deficient financial systems and controls.
The program level in BIA is over $2B in
1992 budget authority. At risk: loan programs of $15 million annually, guarantee
subsidies of $8 million annually and $60
million in irrigation and power revenues.
A special improvement team, along with BIA accountants, successfully installed a new core accounting system, reconciled cash with Treasury, and produced accurate external reports. Significant progress was made on the core
system in 1991 and 1992. Now, more work is needed on subsidiary systems, e.g., irrigation, power, and loan collections. BIA is experiencing problems with program managers reacting late to reports showing over-expenditure of
internal budget limits. Concerns also exist regarding inadequate documentation of processes supporting the new
system. The Department's Inspector General has serious concerns about the ability of BIA to maintain the system
after the improvement team withdraws.
116
THE BUDGET FOR FISCAL YEAR 1994
DEPARTMENT OF THE INTERIOR-Continued
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
or dollars)
1993
1993
Enacted
Next steps: BIA and improvement team to develop desk procedures immediately, and finalize plan to transfer systems
support back to BIA by the end of 1993. Further work to design subsystems to support irrigation, power, and loan
collections also needs to be undertaken during 1993. OMB will monitor readiness of BIA to operate systems. Completion of the design and installation of new subsystems is dependent upon the level of 1994 funding. DOI OIG to
audit Anti-Deficiency review conducted by improvement team.
BIA: inability to account for and reconcile Indian Trust Funds.
There are $2B in Indian Trust Funds. At
risk: $6.3M in potential losses due to mismanagement.
During 1992, BIA's effort to reconcile and audit Indian trust funds became questionable and an OMB-lnterior SWAT
team increased oversight and management of the project In June 1992, BIA was directed to restart the reconciliation project for tribal trust funds and to establish Federal-tribal representative working groups to address problems
in (i) land records management, (ii) fractionated heirship on reservation land, and (iii*) individual Indian monies reconciliation. DOI-BIA prepared draft Indian Trust Funds Strategic Plan. Concerns remain about BIA's ability to implement the corrective actions contained in the strategic plan and to maintain senior management commitment to the
improvement program.
9,800
6,700
24,200
35,505
The congressional cut of the Presidents 1993 budget request means that BIA will be able to hire only an additional
20 FTE rather than the 40 R E requested. There will be resulting delays in BIA's Office of Trust Funds Management reorganization and systems development.
Next steps: During 1993, DOI and BIA will: (i) complete reconciliation of tribal judgment accounts; (ii) begin reconciliation of tribal non-judgment accounts; (iii) perform special purpose procedures reviews on 5 tribes' accounts; (iv)
begin reconciliation of trust fund finance and investment systems; (v) develop and advertise a contract for an independent entity to certify reconciliation work; and (vi) publish the Indian Trust Funds Strategic Plan. Additional resources will be required in 1994.
BIA: longstanding deficiencies in the management of BIA School Facilities and BIA
Dam Safety.
1993 Budget includes $92M for these programs. At risk: health and safety of the
affected Indian communities.
During 1992, BIA took action on both dam safety and school facilities. For dam safety, BIA (i) revised operation and
maintenance procedures manual, (ii) contracted with the Bureau of Reclamation for pre-construction safety evaluations of dams, and (iii) assigned responsibility to program managers for maintaining each dam. For school facilities,
BIA (i) prepared facilities remedial action plan, (ii) established a "hot line" to report safety violations, and (iii) received additional funding in 1993 for major buildings repair. Concerns remain about BIA's ability to implement the
actions in the dam safety and school facilities plans. Additional 1993 funding provided by Congress will support new
BIA school construction.
Next steps: Dam safety: (i) Complete safety evaluations of dams; (ii) establish periodic maintenance of dams in program operations, and (iii) assess improvements in dam operations and maintenance. School facilities: (i) complete
implementation of all items in facilities remedial action plan; (ii) DOI/BIA review of facilities and operations; and (iii)
begin systematic replacement and repair program (1994 funding required).
DEPARTMENT OF JUSTICE
High Risk Area
Progress to Date and Next Steps
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
Departmental debt collection information systems inadequate to support management
of litigation and collection activity on an
estimated $13 billion inventory.
There could be more than $13 billion (1991
estimate) in pending civil debts or claims
in Justice inventory, including approximately $6 billion in receivables referred to
DOJ by other agencies. At risk: non-collection of up to 5% of total (representing
potential additional collections from improved management information).
In 1992, the Department participated with OMB in a multi-agency Litigation Information Action Team that recommended steps to produce meaningful, accurate management information on DOJ financial litigation and collection
activity. DOJ has committed to developing the central system capability to monitor and track litigation and collection
of financial litigation claims in all DOJ components and produce periodic reports on the status of claims by agency,
program, and type of claim. DOJ issued a request for proposals for a systems development contract on August 31,
1992. The projected contract award date is June 10,1993. Congressional cuts, however, make it difficult for DOJ to
award the contract in 1993.
Next steps: 0) Resolve 1993 budget shortfall (OMB is requesting user agencies to provide some portion of needed
funds), (ii) Award the systems development contract in June 1993. Oil) Provide funding for system development and
maintenance in 1994 and beyond.
5,307
1993
Enacted
2,977
117
PROGRESS REPORT: HIGH RISK AREAS FOR MANAGEMENT IMPROVEMENT
DEPARTMENT OF JUSTICE-Continued
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area [In thousands
of dollars)
1993
Departmental asset forfeiture information
systems inadequate to ensure program integrity or achieve full revenue-generating
potential of the asset forfeiture program.
The Executive Office for Asset Forfeiture (EOAF) has lead responsibility for the development and implementation of a
centralized Consolidated Asset Tracking System (CATS). CATS is a multi-agency system that will integrate asset
seizure and forfeiture information of all Federal agencies participating in the Justice Asset Forfeiture Program. In
1992, detailed systems design was completed, and system testing and equipment acquisition were begun.
Seized asset forfeiture inventory valued at
$1.8 billion at end of 1992. At risk:
$25-30 million annually in increased revenues and cost savings (made possible
through improved management information).
Congressional cuts to 1993 funding will have minimal effect on implementation, due to (i) changes in the Asset Forfeiture Fund statute providing permanent indefinite authority to use Fund monies for ADP systems, and (ii) the availability of $3 million in prior year funding.
Executive Office of the US Trustees
(EOUST): Need to increase oversight to
prevent fraud, misappropriation, and
breach of fiduciary standards by private
The EOUST must increase staff, upgrade financial analysis training, and increase audit coverage to address demands
of a bankruptcy caseload that has increased 82% since expansion of the program in 1986. EOUST has: (i) improved its regulatory framework for supervising private trustees; (ii) acquired additional resources (200 FTE) provided for in the 1993 budget; (iii) issued tougher oversight policies issued for private trustees; and (iv) reamped
EOUST training programs to provide financial analysis capability of staff. Overall effectiveness of the program could
be strengthened by the development of a performance measurement system for assessing program accomplishments against short and long term goals and objectives. Congressional cuts in 1993 will result in less oversight of
private trustees than planned. However, new fees have been authorized that will mitigate the effects of reduced
funding.
Estimated amount in bankruptcy accounts is
$26B. No risk to Federal funds, but private funds are subject to potential loss or
fraud.
1993
Enacted
28.97C
20,500
70,916
57,221
295,858
295,858
19,544
19,544
15,222
15,222
Next steps: CATS will be implemented nationwide in 1993. Key steps in 1993 include telecommunications network
analysis, software development, data base conversion, and equipment acquisition. The system should be in place in
the first sites by April 1993. Implementation costs in 1994 may be covered by permanent indefinite authority to use
Fund monies for ADP systems.
Next steps: (i) Hire new staff provided by the 1993 budget, (ii) Increase criminal enforcement activities, (iii) Increase
the number of audits, (iv) Contract for risk analysis to ensure that vulnerabilities are assessed and adequate safeguards are provided in the Automated Case Management System. Additional funding will be required in 1994.
Bureau of Prisons (BOP) overcrowding affects safety and security.
The 1993 budget provides over $2B for
BOP. At risk: the safety and security of
prison staff, inmates, and surrounding
communities.
The BOP must reduce prison overcrowding to ensure safe and secure conditions for community, staff, and inmates
through new construction and modernization of prisons. Inmate population in the Federal Prison System is 46%
over rated capacity as of November 12,1992, a reduction from the 70% originally reported. Since 1989, the capacity of BOP has increased by 18,000 beds. BOP plans to spend nearly $3B to add approximately 43,000 beds in the
next four years. The plan must be monitored because inmate population may increase faster than capacity due to
increased level of criminal litigation in the judicial system.
Funding for new construction in 1993 will increase capacity by 3,672 beds; plan projects achieving design capacity of
88,800 by end of 1995.
Next steps: Resolution of this high risk area is predicated on
using the $1.8B in unobligated balances made
available in 1993 and previous budgets. Delays in obligating these funds were caused by community opposition
and/or environmental impact studies.
BOP: Not all prisons comply with fire and/or
hazardous waste disposal codes.
The 1993 budget provides $20M over 3
years for corrective actions needed. At
risk: possible environmental damage, personal injury, fines, or court action if compliance is not achieved.
BOP". Inadequate staff to operate and manage prisons.
The 1993 budget provides $1.8B in total operating expenses for BOP. At risk: the
safety and security of prison staff, inmates, and surrounding communities.
All immediate life and health-safety risks due to hazardous waste have been corrected. BOP has now completed Life
Safety Surveys of fire code violations for all 48 institutions previously cited. Sixty percent of the 120 fire code violations were corrected. As a precaution, BOP will survey the remaining 20 institutions. Training of safety personnel in
hazardous waste management is underway.
Next step: Completion of all fire safety corrective actions by September 1994. Additional funds required for 1994.
The ability to recruit, develop, and retain sufficient staff was constrained by inadequate pay scales, lack of career development potential, and inconsistent planning and recruiting efforts. Special salary rates implemented for correctional officers and psychologists. 83 special salary rates tables established affecting 3000 positions. Retention and
hiring of staff increased in 1992 because of the pay reforms instituted in January 1991. The ratio of correctional officers to prisoners has been reduced from 1:3.9 in 1990 to 1:3.2 in 1992 (Goal is 1:3). However, high cost areas
continue to show high vacancy rates.
Next steps: (i) Assess recruitment techniques (September 1993). (ii) Reorganize staff training and development, (iii) Increase local recruitment advertising over next several years. Resources will be required in 1994.
Immigration and Naturalization Sen/ice (INS):
Poor management controls and inadequate financial system.
Accounting system processes $972M annually. At risk: assurance that funds are accounted for in an accurate and timely
fashion.
In 1992, INS (i) implemented a new internal control planning process involving top management; (ii) developed an
Automated Information Systems Tactical Plan; and (iii) developed a Strategic Financial Management Improvement
Plan. INS is using the Department's Distributed Budget Module (DBM) in HQ and 3 field offices. Concerns remain
over system implementation issues, and some milestone dates have slipped. Data integrity is improving on a gradual basis. A new fee analysis branch was established to institutionalize the review of costs, revenues, fees, and the
rate-making process for the Immigration Fees accounts on an ongoing basis.
Congressional cuts in 1993, which would have resulted in delays, have been offset by reprogramming funds from
other areas.
Next steps: (i) Complete reconciliation of prior year accounts, (ii) Implement DBM in remaining offices, (iii) Implement
an Acquisition Control and Tracking System and Debt Collection System, (iv) Complete requirements analysis for financial management system. 1994 funding will be required.
4,053
118
THE BUDGET FOR FISCAL YEAR 1994
DEPARTMENT OF JUSTICE-Continued
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In tttousands
of dollars)
1993
Request
U.S. Marshals Service (USMS): inadequate
financial
management
system;
nonconformances in fund control and
asset value reporting.
Accounting system processes $1B annually.
At risk: assurance that funds are accounted for in an accurate and timely
fashion.
USMS and INS: Shortage of detention facilities.
The 1993 budget provides $7.4M for construction. At risk: ability to meet demands
of increasing prisoner population.
In 1992, USMS 0) implemented the Department's Distributed Budget Module; (ii) developed a plan that addresses financial system requirements and business practices; and (iii*) converted to the National Finance Center payroll/personnel system. Congressional cuts in 1993 will slow implementation of the financial system improvements.
1993
Enacted
2
3,380
500
2
7,417
7,417
2
N/A
N/A
Next steps: (i) Conversion to the Department's Financial Management Information System (FMIS) is targeted for completion by the end of 1994; this requires 1994 funding, (ii) Continued development of Departmental FMIS modules
for general ledger, collections and receivables, obligations, travel, and drafts/payments is necessary to meet specific
USMS requirements.
The facilities available to house prisoners in the custody of U.S. Marshals and INS are overcrowded or unavailable.
Detention resources are continually outdistanced by the dramatic growth in the prisoner population. Since 1990, the
resolution of the problem is being addressed through a multi-year Federal detention strategy involving USMS, INS,
and BOP for the 280 Federal court cities throughout the country. As of June 1992, 6,917 detention spaces have
been acquired at 117 Federal court cities through the cooperative agreement program (CAP) with states. USMS's
11 CAP projects will acquire 302 more detention bed spaces in 1992; BOP detention construction projects funded
through 1992 will provide 7,300 more detention bed spaces in 17 Federal court cities. The pace at which the plan
is implemented will depend on the availability of budget resources.
Next steps: USMS will continue to pursue agreements with State and local governments. The Federal Detention Plan
is updated annually on the basis of anticipated long term needs of the participating agencies. At the end of July
1992, daily population exceeded 19,711 and is currently growing at a rate of 23% over the previous year. At this
rate, population will exceed the rate at which additional bed spaces can be acquired. Additional funds required in
1994.
Departmental: Inadequate security over Departmental ADP sites and systems.
At risk: effectiveness of litigation action and
law enforcement programs as a result of
loss or unauthorized access to sensitive
information, as well as control of financial
assets.
DOJ now has a program of sustained oversight to reduce the risk from loss, misuse or unauthorized access to the
Department's sensitive information in its computer systems. DOJ has initiated a broad spectrum of corrective actions: computer security training, audits and security compliance reviews, risk assessments and contingency planning, and damage assessments from unauthorized release of information stored or processed on computers.
Next steps: (i) DOJ will complete reviews of component security plans by July 1993. (ii) DOJ will work with Drug Enforcement Agency to implement an agency-wide computer security program that addresses deficiencies identified by
GAO and IG audits, (iii) USMS will complete risk analysis on its ADP systems by June 1993. (iv) U.S. Attorney Offices will be equipped with a secure communications system by October 1993. Resources will be required in 1994
for training and compliance reviews.
DEPARTMENT OF LABOR
High Risk Area
Progress to Date and Next Steps
Assessment
Investnrlent to
Correct Hligh Risk
Area (In tllousands
of dollars)
1993
Request
Empbyment and Training Administration
(ETA): Federal equity in real property
held by State Employment Security Agencies (SESAs) at risk due to inadequate
Federal oversight and guidance on acquisition, use, and disposition of real property.
In November 1992, DOL published a draft General Administrative Letter (GAL) to State grantees which outlines real
property requirements. The GAL emphasizes the withdrawal of delegations of prior approval authority, and establishes accounting standards for rent vs. depreciation vs. acquisition costs.
1993
Enacted
2
413
346
2
1,200
1,546
Next steps: (i) Publish final GAL after consideration of public comments, (ii) Publish directive to regional offices outlining system responsibilities and tracking requirements, (iii) Evaluate State compliance with requirements on acquisition, use, and disposition of SESA real property, (iv) Reconcile initial real property inventory data base with SESA
records, (v) Request States formally to certify DOL's equity in SESA real property.
Fair market value (FMV) is $1B. At risk: up
to 10% of FMy.
DOL financial systems and operations inadequate.
DOL systems processed over $7B in grant
expenses during 1992. At risk: accurate
and timely accounting and cash management for these funds.
DOL implemented a new core accounting system in 1990. Significant progress was reported in the 1993 budget because the core accounting system produced external financial statements for 1991. However, significant year-end
adjustments had to be made due to inadequate controls over accounting and reporting of grant information. In
1992, two major subsystems—grants management and assets management—were designed, tested and put in operation within most of the Department.
Next steps: DOL needs to (i) complete implementation of the grants management system in the Employment and
Training Administration; and (ii) design interface requirements between that system, the HHS-Payment Management
system (used to advance funds to grantees), and the departmental core accounting system. During 1993, additional
funds were reallocated internally by DOL to support these projects. Resources will be required in 1994 to maintain
these improvements. The non-automated processes and controls which underlie the financial management of the
grant programs throughout the Department also need careful review and revision.
119
PROGRESS REPORT: HIGH RISK AREAS FOR MANAGEMENT IMPROVEMENT
DEPARTMENT OF LABOR-Continued
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
Job Training Partnership Act (JTPA): Single
Audit Act (SAA) not effective in safeguarding JTPA Federal funds.
At risk: assurance that $1.9B in JTPA grants
is effectively audited.
JTPA: inconsistent monitoring and implementation of JTPA grantee systems and
financial controls.
1993 budget includes $1.9B for JTPA grantee operations. At risk: assurance that
these funds are spent appropriately.
This is an expansion of the 1993 Budget
high risk area on JTPA Service Delivery
Area procurement practices.
1991 DOL IG review recommended government-wide approach to SAA issues. Unilateral action by DOL in this area is
not feasible.
1993
Enacted
N/A
The President's Council on Integrity and Efficiency (PCIE) is conducting a study of SAA govemmentwide and published a draft report in February 1993. The General Accounting Office (GAO) is conducting a SAA review that will
address accounting for funds passed through grant recipients to subrecipients (a central issue in SAA coverage of
JTPA funds). The GAO anticipates issuing a draft report in late 1993. This item will be re-evaluated on a govemmentwide basis after PCIE and GAO findings are available.
Congress has passed the Job Training Reform Amendments of 1992. These amendments, which were based on a
DOL legislative proposal, address JTPA cost classification, procurement policy, and on-the-job training processes.
The amendments significantly strengthen JTPA monitoring requirements and program accountability. Implementing
regulations were published in late December. DOL published a technical assistance guide on program monitoring,
and model monitoring instruments were provided to JTPA grantees. This high risk area has been expanded to include all JTPA grantee operations, and not just JTPA procurement.
2
9,352
9,352
1
3,178
2,178
Next step: Monitor grantee compliance with new regulations. DOL will need appropriate funding to work with JTPA
grantees to implement changes and assure compliance.
Pension and Welfare Benefits Administration DOL submitted a legislative proposal to (i) repeal the limited scope exemption for certain pension plan audits, and (ii)
establish triennial peer reviews of Independent Public Accountants (IPAs) who audit pension plans.
(PWBA): Oversight of pension plans inadequate.
PWBA (i) implemented a "grace period" for submission of late annual reports—4,000 late reports were filed; (ii) issued
620 letters rejecting inadequate annual pension plan reports (Form 5500); (iii) assessed $32.2M in fines for submisPWBA oversees private pension plans with
sion of inadequate audit reports; (iv) conducted 1,700 in-house reviews of accountant's reports and 39 on-site reassets of $2.2 trillion. At risk: pensions
views of IPA audit work papers; and (v) made 60 referrals to the American Institute of Certified Public Accountants
guaranteed by the Federal Government
(AICPA) and State boards of accountancy. PWBA also worked closely with the AICPA in developing additional techvalued in billions of dollars.
nical guidance for pension plan auditors.
Congress' cut of $1 million from the President's 1993 request will slow development and maintenance of the information system used to aid monitoring of pension programs.
Next steps: Review audits received to analyze the impact of the revised AICPA audit guide on pension plan audits.
Based on this review, PWBA may recommend further changes to the audit guide. 1993 levels will fund 20 additional field investigatory staff. Appropriate 1994 funding will be requested.
DEPARTMENT OF STATE
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
Foreign Buildings Office: Rehabilitation and
maintenance of real property overseas is
inadequate.
1993 budget for FBO is $570M. At risk: the
health, safety, and security of employees
at overseas posts due to building deterioration.
Department is continuing to implement initiatives consistent with its 5-year plan for rehabilitation and maintenance. In
1992, (i) a survey to determine worldwide maintenance staffing needs was completed; (ii) a 5-year maintenance
plan and guidelines were provided to all posts; and (iii) a reinspection program was initiated to keep facilities data
current. Maintenance assistance centers in Washington and Europe have done work at over 80 posts. Eight facilities rehabilitation projects are under construction; four more are in the survey/design stage. State's plan includes
development of a computerized database on facilities.
1
125,758
125,758
1
6,800
11,900
Next steps: Continue to implement 5-year plan initiatives. Continued budgetary support is needed in 1994.
Consular Affairs: Inadequate controls over
visa processing increase vulnerability to illegal immigration and diminish the integrity of the U.S. visa.
The Department is designing and implementing control systems, and improving visa issuance processes, to make it
more difficult for fraud to occur. Progress has been made through: (i) management and automation improvements
(machine readable visas—MRVs—now installed at 37 posts); (ii) improvements to name check systems; (iii) distribution of anti-fraud materials; and (iv) training. An IG audit of the MRV program is to be issued in early 1993.
1993 budget for visa processing is $134M.
At risk: potential for visa fraud.
Next steps: (i) Develop procedures for anti-fraud unit at new immigrant visa central facility in early 1993. (ii) Install
MRV at 15 posts in 1993. Funding will be required in 1994 for MRV installations.
1993
Enacted
120
THE BUDGET FOR FISCAL YEAR 1994
DEPARTMENT OF STATE-Continued
High Risk Area
Progress to Date and Next Steps
Assessment
Investmlent to
Correct High Risk
Area (In ttwusands
of dollars)
1993
Request
Departmental management of the overseas
security program, including ADP security,
is inadequate.
1993 budget for the overseas security program is $150M. At risk: assurance that
this investment is adequately protecting
U.S. personnel, information and property
abroad.
Departmental long-standing ADP operational
deficiencies are not being systematically
addressed.
1993 budget for worldwide ADP operations
is $17.9M. At risk: assurance that this investment provides efficient and continuous ADP operations.
Thirty-seven interagency security standards have been developed for overseas posts to counter the threat from terrorism, human intelligence, technical intelligence, and crime. As standards are implemented, funding priority for security improvements goes to posts facing the highest threat levels. All standards have been implemented to address
the terrorism/crime threat; and necessary improvements are being made through physical security projects. Counterintelligence standards have been implemented; and posts will be reassessed every two years. Implementation of
technical intelligence standards is to be achieved by end of 1993. Concerns remain that serious ADP security
vulnerabilities at unclassified mainframes have not been systematically addressed.
1993
Enacted
2
12,768
13,173
3
3,871
150
2
10.64C
6,910
Next steps: (i) Continue physical security projects, (ii) On ADP security, implement standards at highest threat posts
by September 1993, and address domestic security standards. 1994 funding will be required to support physical security projects.
Department lacks long-term strategy for addressing ADP vulnerabilities. Backup mainframe computer center activated
June 1992, but is being used to meet operational requirements because the capacity at the Departmental mainframe has been exceeded. Acquisition of new mainframe is one year behind schedule (thus making it impossible to
use the full amount of the President's 1993 request). Issuance of policy on information systems is two years behind
schedule. Department has failed to address adequacy of backup capabilities for overseas regional administrative
centers, and lacks a strategy to test contingency plans. IG audit of mainframe procurement to be Issued in early
1993.
Next steps: Award contract for new mainframe by June 1993; funding for mainframe acquisition would be required.
Department must develop long-term plan to resolve operational problems.
Departmental accounting and financial systems have many weaknesses and do not
meet standard requirements. A substantial
amount of information essential to financial statement production is unrecorded,
and a number of subsidiary accounting
systems are not interfaced with the core
system.
State has 0) implemented enhancements to improve its Central Financial Management System's stability, integrity, and
response time, and (ii) completed a study of the Overseas Financial Management System so as to develop a detailed improvement plan. Reorganization of the CFO's Office has focused more attention on financial management
and strengthened efforts to improve financial systems and operations, but the problems are serious and long-standing. Some progress is being made. The financial systems planning process is underway, but it requires coordination
with other Departmental information systems initiatives.
Total 1993 appropriations for Department
are $5.21 B. At risk: assurance that these
funds are being accounted for in an accurate, timely, and useful fashion.
Next steps: During 1993, (i) reduce the number of accounting and disbursing systems from six to three and the number of payroll systems from three to two; (ii) complete an Information Strategy Plan for integration and standardization of financial systems; and (iii) refine future funding requirements for systems improvements based on this plan.
Departmental controls over worldwide disbursing and cashiering are inadequate.
Overall strategy is to improve disbursing through stronger management from Washington of overseas financial operations, centralization of disbursing operations, and strengthened controls over cashiering. Good progress made on
disbursing problems; disbursing functions for 6 of 22 officers have been centralized, with remainder on track; reconciliation of foreign currency bank accounts at RAMC Mexico and RAMC Bangkok nearing completion. New cashiering policies issued, but implementation must be aggressively pursued.
Over $5B disbursed annually by Department
disbursing officers worldwide. At risk:
$50M, representing funds unreconciled
with Treasury.
Departmental vulnerabilities exist in current
hardware and software technology for selected information systems.
$300M of hardware and associated software
is becoming vulnerable to failure in the
next few years. At risk: worldwide systems could suffer from significant downtime and even failure, due to inadequate
vendor support.
Congress' cuts of the Presidents 1993 request will result in fewer short-term improvements to financial systems.
2
Next steps: (i) Prepare detailed plan for creation of Office of Cash Management under CFO by June 1993. (ii) Establish system to increase accountability of cashiers and disbursing officers.
State is heavily dependent on proprietary computer systems and software for financial, consular, personnel, and administrative functions. A significant portion of these proprietary computer systems are vulnerable to failure in the
next few years. The Department intends to develop and implement a strategy to migrate to an information systems
environment that meets government standards for open systems. Significant concerns exist over the adequacy and
scope of the plans, and the ability of the Department to implement them effectively. ADDED TO HIGH RISK LIST.
Next steps: Develop in 1993 a master plan for migration, with supporting detail (including standards, priorities, and resource implications).
A
159
PROGRESS REPORT: HIGH RISK AREAS FOR MANAGEMENT IMPROVEMENT
121
DEPARTMENT OF TRANSPORTATION
High Risk Area
Progress to Date and Next Steps
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Departmental financial systems are numerous, fragmented, and non-standard.
DOT financial systems process over $30B in
outlays annually. At risk: assurance that
funds are being accounted for in an accurate, timely, and useful fashion.
DOT is (i) correcting immediate problems in accounting, personnel, payroll, and procurement systems; (ii) establishing
standards and developing a strategic systems plan for future modernization; and (iii) fully implementing an integrated systems environment. In 1992, DOT implemented its DAFIS core accounting system at the Maritime Administration—DAFIS is now installed in 7 out of 10 offices and administrations; and completed the conceptual design
plan for an Integrated Personnel/Payroll System (IPPS). Significant progress was reported in the 1993 budget because the DAFIS implementations were accomplishing significant consolidation of core accounting system support.
However, some accounting weaknesses in DAFIS remain, and significant work on longer-term strategies and plans
for integrating subsidiary systems and providing more useful cost information has been delayed due to Congress'
cuts in the President's 1993 request.
1993
Enacted
6,213
Next steps: Complete (i) installation of DAFIS for remaining three offices by July 1993, and (ii) detailed design for
IPPS during 1993. Implementation of IPPS and other systems enhancements will require resources in 1994.
Federal Transit Administration (FTA): Inadequate grants management oversight.
At risk: FTA has over $35B in active grants.
At risk: $300-500M.
FTA must improve oversight of grantees' adherence to Federal requirements. In 1992, FTA: (i) received additional staff
support (31 FTEs); and (ii) implemented recommendations of the Administrator's Task Force Report on program
management oversight. These recommendations included (i) a risk assessment for early identification of problem
grantees needing assistance and closer monitoring, (ii) a more comprehensive Triennial Review process, and (iii)
targeting of contractor support funds for oversight activities. FTA is also working to revise audit guidance to comply
with Federal requirements. FTA has already taken short term steps to separate project oversight from program
management activities. Additional resources provided by Congress in 1993 will be used to fund new contractor support activities.
24,977
28,368
5,50C
5,500
Next steps: During 1993, FTA will (i) continue organizational and functional changes to focus on and improve program
oversight; (ii) increase the use of funds to hire contractors to perform procurement, management, financial, and
safety reviews and audits; (iii) work with OMB to improve audit guidance; and (iv) recruit appropriate oversight staff.
Funds will be required in 1994 to provide staffing and contractor support in the discretionary and formula grant programs.
Federal Aviation Administration: major systems acquisition procedures inadequate.
FAA procurement plans are estimated at
$8.2B over the next 15 years. At risk: increased costs because of poor contract
administration.
U.S. Coast Guard: major systems acquisition
procedures inadequate.
USCG procurement plans are estimated at
$1.5B over the next 5 years. At risk: increased costs because of poor contract
administration.
FAA has developed an internal management control plan to identify and focus on major acquisition weaknesses, and
an acquisition plan policy which includes provisions for contract award, administration, modification, and approval by
senior management. Program offices must now justify and validate requirement needs at four successive phases
from concept to production. FAA has also organizationally separated acquisition review and oversight from acquisition operations.
Next steps: DOT will conduct a Procurement Management Review of FAA contract administration activities and contract modifications. Mission needs statements will be improved to include appropriate quantitative, analytical support
by implementing a structured mission analysis process which will be closely tied to the budget process. Mission
needs will be revalidated throughout the life cycle, operations requirements will be developed, and improvements in
performance resulting from acquisitions will be measured. Acquisition policies will be revised and updated. Requirements determination, specification development, and pre-production testing processes will be improved through formation of Quality Action Teams. Additional training will be implemented, including a 20-week course for some
project managers. Existing funds will be used to finance corrective actions.
In 1992, USCG conducted internal management control reviews on major systems acquisitions. These found that improvements are needed to protect source selection information and improve invoice processing. Mission justification
now includes detailed cost estimates that are adequately supported and include all costs. Hands-on training in procurement management reviews and accountability is being improved.
Next steps: In 1993, continue to improve the mission analysis and mission needs process (closely tied to the budget
process), both at USCG and DOT. Mission needs will be revalidated through acquisition life cycle, and improvements in performance resulting from acquisitions will be measured through a structured process every year. Policy
will be updated and revised as needed, and a system for correcting procurement errors will be developed. Program
managers will continue to be trained at the Defense System Management College, and Warrant Officers assigned
to field units with oversight responsibilities. A followup system to track procurement deficiency corrective actions will
be developed.
Federal Aviation Administration: Inadequate
management of spare parts at field activi-
The FAA must (i) improve management of spare parts at field activities; (ii) reduce inventory holding costs; (iii) take
timely disposition action on excess and inactive materials; and (iv) centralize inventory management. FAA has issued revised guidelines to improve inventory management and has developed a supply site management plan.
At risk: $130.7M of spare parts at field facili-
Next steps: Planned actions are to complete a phased inventory of field stock exceeding the threshold cost. Funds will
be required in 1994 to complete implementation of the new inventory system and to conduct inspections of field facilities. ADDED TO THE HIGH RISK LIST.
U.S. Coast Guard: Inadequate logistical support for spare parts at field activities.
The Coast Guard needs to implement internal control objectives and techniques sufficient to minimize its inventory
cost for spare parts. Necessary corrective actions include implementation of the new Aeronautical Maintenance
Management information System (AMMIS). AMMIS is intended to improve planning, tracking and accounting capability. ADDED TO THE HIGH RISK LIST.
At risk: $93.6 M of a $346.7 M on-hand inventory representing excess inventory.
Next steps: Introduction of the AMMIS system is scheduled for 1993 with full implementation in 1995. Funds will be
required in 1994 to (i) provide advanced logistics management training, (ii) finance AMMIS, and (iii) complete the
reorganization of the warehouse.
122
THE BUDGET FOR FISCAL YEAR 1994
DEPARTMENT OF TRANSPORTATION—Continued
High Risk Area
Progress to Date and Next Steps
Investmant to
Correct High Risk
Area (In thousands
of dollars)
—
1993
Request
Department. Inadequate Department Information Systems Security OSS)
Annual investment of nearly $3B for information technology.
Security efforts have not kept pace with improved technology to safeguard information systems. Security improvements
are needed to safeguard information systems for grant management, funds control, and management and safety of
the of the Department's operational systems (e.g., Air Traffic Control Systems). DOT must develop a comprehensive
security plan, and revise existing poHcy, Issue procedural guidance, and perform security oversight reviews. ADDED
TO THE HIGH RISK LIST.
1993
Enacted
A
Next steps: (i) Completed revisions to existing poNcy statements (March 1993); (8) complete four oversight reviews
(September 1993); and (Hi) issue guidance in support of ISS policy (September 1995). Funds wiK be required in
1994 for staffing and training.
DEPARTMENT OF TREASURY
High Risk Area
Progress to Date and Next Steps
Assessment
Investmentto
Correct Hiigh Risk
Area (In fttousands
of dolllars)
1993
Request
Internal Revenue Service (IRS): strategy Since
for IRS collections have not kept pace with the growth in unpaid tax debt, significant Federal revenues may be lost.
collecting and resolving Accounts Receivable (AR) is inadequate.
IRS Accounts Receivable $71B (current estimated collectible value is $28B). Collections totaled $248 in 1992. At risk: at
least $286 in collectible receivables; $43B
estimated allowance for doubtful accounts
needs to be reconciled and closed out
Customs Service: Inadequate collecting/accounting systems for revenues on imports.
$20 billion collected annually. At risk: control
of revenues, including tracking of $880M
in posted receivables.
1993
Enacted
2
16,217
15,641
2
1,668
0
2
170
170
In 1992, the IRS: (i) set targets for AR and other functions and began quarterly performance reviews with OMB and
Treasury; (H) eliminated duplicate penalties from AR and initiated a piot to eliminate erroneous accounts; (iii) began
a feasibility study of the use of private collection agencies to resolve unworked, lower priority accounts; (iv) undertook a series of efforts to accelerate contact with delinquent taxpayers, including an accelerated notice pilot; and (v)
modified its installment agreement and offer-in-compromise policies to permit more flexibility and increased collections. During the year, installment agreements have increased 47%; collections from installment agreements have
increased 24%; and offers-in-compromise submitted by taxpayers have increased twofold.
Next steps: Accounts receivable will be elevated to be an integral part of the Servfcewfde Compliance 2000 Strategy
and related plan. In 1993, the IRS will conduct a private cofiection agency pilot and expand nationwide its pilot to
eliminate erroneous accounts from AR. For 1994, if the private colection agency pilot proves feasible, legislation is
needed to fund referral of unworked, low-priority cases to private collection agencies out of a portion of the proceeds. Continued funding of AR improvements wiH be needed in 1994.
A new core accounting system, Asset Information Management System (AIMS), was implemented to provide general
ledger, funds control, and budget execution capabilities. Interfaces between AIMS and Customs administrative and
revenue subsystems wiH provide improved data accuracy. Customs stiR needs to improve accounting for protested
amounts and revenue collection—through the Automated Commercial System (ACS) and its interfaces with AIMS. A
system for mail entry of collections was implemented in 1992 to enhance control over receivables. Congress' cut of
the President's 1993 request will delay improvements to ACS, and interfaces between Customs subsystems and
AIMS.
Next steps: Customs reallocated $4.5M from other activities to (i) continue the redesign of the protest module in ACS;
(ii) continue work on ACS and its interfaces with AIMS (needed to support accountability of revenues); (iii) begin
work on the cost accumulation capabilities in phase II of AIMS; and (iv) improve data integrity through efforts to develop interfaces between Customs subsystems and AIMS. Additional resources will be needed for this effort in
1994.
Departmental. Financial system coordination
is inadequate.
Treasury is investing $81 million in financial
systems development in 1993. At risk:
systems developed by bureaus may not
support departmental financial management initiatives.
Treasury has improved system oversight by establishing the Office of Financial Systems and Reports, and issuing
Treasury Directive 32-02, "Approval of Financial Management System" which requires departmental review and approval for systems. Efforts are underway to implement the recommendations of the department-wide studies on integration of financial systems and financial report filing procedures. The Financial Management Systems Advisory
Committee was estab-iished to ensure consistency in the design and enhancement of financial management systems. This committee w i initiate efforts to determine department-wide financial management system require-ments.
The first three priorities wiH be travel, procurement, and revenue systems. Treasury continues to make progress in
further reducing the variety and number of financial management systems by implementing the Federal Financial
System (FFS) software at three additional bureaus (IRS, USCS, and FLETC). Current efforts wiH result m half of the
bureaus using FFS by 1993 (accounting for 83% of Treasury's total budget authority).
Next steps: Treasury (i) is allocating additional funds ($320,000) to this project in 1993, (H) will oversee installation of
FFS software at ATF, and (Hi) wil develop plans for establishing a departmentwide financial management system.
Additional resources w i be required in 1994 to improve systems oversight
Customs, Operations and Maintenance Account, Air and Marine Interdiction Programs lack adequate internal controls.
Interdiction Operations and Maintenance accounts in 1993 totalled $138M. At risk:
$26-60M dolars In unobligated balances.
Customs identified problems accounting for prior year unobligated balances in this program. Corrective actions to address these problems are underway. Last summer, Customs hired the accounting firm of KPMG Peat Marwick to
review the account balances of the air/marine program, and they are now completing their work. Recommendations
of Treasury's own study team will be implemented to improve the account's internal controls. Finally, the Inspector
General wiH review results of both efforts. ADDED TO HIGH RISK LIST.
A
PROGRESS REPORT: HIGH RISK AREAS FOR MANAGEMENT IMPROVEMENT
123
DEPARTMENT OF VETERANS AFFAIRS
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In ftKxjsands
ofdol lars)
1993
Request
Veterans Benefits Administration (VBA):
Compensation and pension benefit overpayments.
1993 budget includes $16.5B for compensation and pension benefits. At risk: $185M
in overpayments to beneficiaries annually.
The integrity of claimants' income reporting for compensation and pension benefit entitlement purposes requires validation of claimants' income reports. OIG sampling of wage matches and audits have disclosed over $53 million in
overpayments and over 6,000 cases referred for further investigation. Following passage of authorizing legislation,
VA obtained income data to perform income verification matches, and undertook matches with IRS and SSA. System now fully operational. With 43,000 cases completed thus far, 7,600 (18%) resulted in termination or reduction of
benefits, and 35,400 required no adjustment.
1993
Enacted
1
8,357
8,357
D
372
372
1
6,962
6,962
1
0
0
2
290
290
D
0
0
Next steps: Continue case-by-case validation of overpayments in remaining cases, which are the most difficult; and
complete post-implementation evaluation.
Departmental audit followup systems inadequate.
Audit reports received with monetary findings
of $350M annually. At risk: up to 15% if
audit followup is not pursued aggressively.
Veterans Health Administration (VHA): Drug
inventory controls inadequate. Medical
centers and nursing homes dispense
large quantities of drugs. Scattered local
systems provide poor controls.
Drugs and medical supply inventories in VA
hospitals replenished at rate of $450M a
year. At risk: $68M in potential loss of
drugs in inventory due to waste, theft or
loss.
VHA: Health care facilities construction planning process lacks design and performance standards.
1993 budget provides $493M for facility construction. At risk: $50M in additional unnecessary costs, cost overruns, or facilities exceeding actual needs.
Departmental internal management controls
program weak.
VA budget exceeds $33.5B. At risk: assurance that funds and operations are adequately protected against fraud, waste
and abuse.
VHA: Physician screening inadequate.
1993 budget included $14.6B for Veterans
Health Services. At risk: inadequate assurance that VA patients are treated by
qualified physicians.
All corrective actions and milestone dates for improvement of audit followup system deficiencies completed as
planned. Independent assessment (December 1991) of revised system conducted by Commerce Department peer
review group, which found that VA met all existing OMB and IG Act requirements. DELETED FROM HIGH RISK
LIST.
VA has expanded this High Risk area to address the larger issue of overall medical inventory controls (1991 GAO report had indicated that security and accountability for controlled substances at some medical centers were insufficient to detect and deter the diversion of lower scheduled controlled substances). VA decision to convert to a unit
dose (rather than ward stock system) has resulted in the conversion by the end of 1992 of 25 of 46 medical centers (85% of all beds). Field facilities have been surveyed to assess compliance with new requirements for the control over addictive drugs.
Next steps: (i) Implement VA task force recommendations to improve employee accountability for pharmaceutical security. (ii) Procure and install bar code readers at all facilities to implement the maintenance of a perpetual medical
supply inventory system (requires additional 1994 funding), (iii) In 1995, conduct post-implementation evaluation ol
new system's effectiveness.
Facilities Program is developing an overall systemic approach to construction planning to improve efficiency and effectiveness, based on facility planning standards. Construction planning models have been developed and tested, and
are now in use in all field facilities. IG has concerns about the effect of a recent reorganization and the absence of
eligibility data by service area as an analytical element in the construction planning model.
Next step: Conduct post-implementation evaluation. No 1994 funding required.
CFO has assumed responsibility for program and put in place key elements for a potentially effective program. Implementation of automated management control system to monitor and manage information on corrective actions, required reviews, etc., is scheduled in 1993.
Next steps: (i) Implement action plans to effect improvements in the Departments programs and promote integrity of
operations; and (ii) ensure effectiveness of automated system. Continued funding required in 1994.
Policies and procedures have been developed and implemented including cross-checks of key data, certifications of
State medical boards, and a template folder for securing and filing standard reference data on physicians by VA
centers. All milestones, and validation of corrective actions through on-site reviews in regional offices, have been
completed. Other internal controls have been established to ensure long-term viability of corrective actions. OIG
audit report (September 1992), surveying 20 medical centers, Headquarters and 4 regional offices, found substantive compliance with new procedures and concluded that physician screening was no longer a material weakness. DELETED FROM HIGH RISK LIST.
ENVIRONMENTAL PROTECTION AGENCY
High Risk Area
Progress to Date and Next Steps
Assessment
Investrrtent to
Correct Hligh Risk
Area (In tllousands
ofdolliars)
1993
Request
Agency financial system does not provide
reliable data or support accounting for receivables.
Accounts receivable, as of September 1992,
were $238M. At risk: assurance that
these funds are accounted for in an accurate and timely fashion.
Enhancements to the core financial accounting system have been implemented to improve accountability, general
ledger control, and accounts receivable accounting. Efforts are now underway to implement general ledger reconciliation. Modifications to the accounts receivable module are in progress. These will provide needed capabilities to
record receivables, interest due, and collections. Additional improvements are needed to improve the accuracy of
accounts receivable.
Next steps: Complete general ledger data reconciliation, and revise policy and procedures for recording financial transactions in the system in 1993. EPA will reallocate an additional $94,000 in 1993 for system enhancements to provide better support for determining and collecting accounts receivable. No additional funding is required for 1994.
2
20
1993
Enacted
20
124
THE BUDGET FOR FISCAL YEAR 1994
ENVIRONMENTAL PROTECTION AGENCY-Continued
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In ttlousands
of dollars)
1993
Request
Superfund: Program lacks adequate controls
to ensure timely cleanup of National Priorities List (NPL) sites and consistent
management of the Alternative Remedial
Contracting Strategy (ARCS) contracts.
1993
Budget includes $1.574B for
Superfund. At risk: environmental safety,
and assurance that contract funds are
being spent efficiently and effectively.
Agency Contract Management, persistent,
widespread problems in contract management.
1993 budget includes $1.2B for contracting.
At risk: environmental safety, and assurance that contract funds are being spent
efficiently and effectively.
EPA reports correction of the over fifty problem areas identified in the 1989 Management Review of the Superfund
Program. Regarding accelerating cleanup of NPL sites, in 1992, EPA: (i) implemented pilot projects for standardizing the remedial planning process; (ii) established policy allowing remedial design to begin prior to entry of the consent decree involving potentially responsible parties; and (iii) established aggressive cleanup targets through the
year 2000. For ARCS contract management, EPA: (i) established regional management teams to review the ARCS
award fee process; (ii) established policy for the distribution of work between the Army Corps of Engineers and
ARCS; (iii) completed an ARCS level of effort capacity projection model; (iv) established requirements for independent government cost estimates; and (v) created an on-line database to track ARCS obligations and expenditures.
2
5,450
1993
Enacted
5,450
Next steps: In 1993, action items to accelerate cleanup include (i) developing guidance to standardize the remedial
planning process; (ii) developing procedures to expand the flexibility of design contracts; and (iii) implementing policy to permit remedial design to begin prior to entry of the consent decree and improve accounting. For ARCS con
tract management, action items include (i) developing guidance for establishing independent cost estimates; (ii) issu
ing final design scoping guidance and revised cost estimating tools; (iii) streamlining the award fee process; and (iv
conducting an evaluation of quality of program management and remedial work. No additional resources will be re
quired in 1994.
EPA has established a task force to review and determine the scope of its management problems, and published a
report, "Contract Management at EPA: Managing Our Mission," (June 1992). The report delineates problems and
recommends actions. As part of its reexamination of contract management practices, EPA (i) has established Senior
Procurement Officials within each office and region; (ii) has required contract training for all SES employees; and
(iii) is reexamining resource allocations for contract management
A
Next steps: Implement corrective actions in the following areas: (i) organizational standing of agency procurement
functions; (ii) agency oversight of contractor cost and performance; (iii) management and program accountability, (iv)
resource allocation, and (v) procurement training. Additional resources may be required in 1994.
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
High Risk Area
Progress to Date and Next Steps
Assessment
Investmlent to
Correct High Risk
Area (In tllousands
of dollars)
1993
Request
NASA financial accounting systems are outdated, labor intensive, and not integrated
agencywide; weak funds control over contractors.
NASA systems process $15B annually. At
risk: assurance that these funds are being
properly accounted for in an accurate and
timely fashion.
NASA contract and subcontract administration and oversight inadequate.
92 percent of NASA's annual budget spent
on contractors ($13.5B in 1993). At risk:
$200-500M, representing potential overpayments to contractors through erroneous or fraudulent billings.
NASA's financial accounting systems do not comply with the requirements of OMB Circular A-127 for a single, standard, integrated agency system. Decision to meet the need for strong financial controls made by top management.
Development of a standard, integrated NASA Accounting and Financial Information System (NAFIS) to replace nine
installation and six agencywide systems now underway. Functional requirements documents and system/software
specifications completed. Preliminary design review completed October 1992.
2
13,679
13,679
1
8,171
8,171
Next steps: (i) Design work to be completed by July 1993. (ii) Coding and testing to be completed by October 1994.
(iii) Installation at NASA Centers to begin in September 1995 (requires continued budgetary support).
Inadequate oversight over prime contractors has resulted in overpriced subcontracts with excessive profits. Insufficient
review of mission support contractors and subcontractors has caused vulnerability to mission failure and financial
loss. Aggressive corrective action plan developed following OMB/NASA review team report. NASA has taken key
actions to (i) improve training and staffing, and step-up contract audit requests to the Defense Contract Audit Agency; (ii) establish a new contract management division to monitor corrective actions; (iii) implement the first phase of
a new Defense Logistics Agency billing system to ensure accountability for contract audits; and (iv) install an improved system of oversight and controls to identify contract management problems earlier and more effectively. Authorized ceilings for NASA procurement offices have been increased by 45 FTE to date (despite an agencywide hiring freeze).
Next steps: (i) Continue expansion of contract management training program, (ii) Complete implementation of new procedures for validating DoD billings at NASA centers, (iii) Complete staffing augmentation plans at all NASA centers
by the end of 1993. (iv) Validate effectiveness of final corrective actions through a full cycle of Procurement Management Surveys at all NASA centers by 1994. Additional funding is required in 1994.
NASA environmental management and pollution cleanup need priority attention.
Since 1988, over $100M has been spent on
environmental cleanup. At risk: health and
safety of NASA employees and the public.
1993
Enacted
The lack of a cohesive agencywide plan and approach has resulted in non-uniform programs at NASA Centers. These
have in many cases not fully addressed all components of the environmental program. NASA has developed an environmental remediation program and has made progress in the identification of hazardous waste sites, and the implementation of a multi-year program for site characterization and cleanup. ADDED TO HIGH RISK UST.
Next steps: NASA now needs to (i) identify potential hazardous waste sites; (ii) implement an agencywide environmental strategy; (iii) establish a NASA Environmental Management Council; and (iv) complete environmental self-assessments at major facilities. Funding will be required in 1994 to implement NASA's environmental strategy.
A
PROGRESS REPORT: HIGH RISK AREAS FOR MANAGEMENT IMPROVEMENT
125
AGENCY FOR INTERNATIONAL DEVELOPMENT
High Risk Area
Progress to Date and Next Steps
Assessment
Investmlent to
Correct High Risk
Area (In tttousands
of do!lars)
1993
Request
AID financial management systems and operations are inadequate.
Total obligations processed by AID/Washington operations are over $4B annually. At
risk: assurance that these funds are being
accounted for in an accurate, timely, and
useful fashion.
AID audit coverage of contractors and grantees is inadequate.
AID has not obtained adequate audit coverage of overseas projects amounting to
hundreds of millions of dollars. At risk:
potential misuse of funds by contractors
and grantees.
AID automated systems which contain sensitive information are not adequately protected against disasters.
1993 budget for information resources management is approximately $20M. At risk:
assurance that this investment and AID
data are adequately protected from loss
due to disasters.
AID'S strategy includes developing a new primary accounting system and instituting management improvements in
payments operations. In the systems area, AID completed analyses of 5 of 8 business areas identified in the Financial Management Strategic Information Systems Plan (FMSISP), and completed a cost/benefit analysis for system
design alternatives. To improve payments operations, AID reduced centrally-managed advances, and implemented
electronic certification.
1993
Enacted
2
3,830
3,791
2
800
840
1
889
456
2
7,000
7,877
Next steps: In systems development, (i) analyze the remaining three business areas in the FMSISP, and (ii) evaluate
specific system alternatives. Future funding needs will be based on this evaluation. In payments operations, (i) introduce additional desk procedures, (ii) conduct project officer training, and (iii) perform management control reviews.
AID'S new Audit Management and Resolution Program (AMRP), when fully implemented, will ensure appropriate audit
coverage of recipients of AID funds. Specific responsibilities have been assigned to missions, the Office of Procurement, AID bureaus, and the IG. Guidance on implementing AMRP was finalized in April 1992. The joint OMB/AID
SWAT Team report made additional recommendations relating to contracting and audit.
Next steps: Implement SWAT Team recommendations: (i) revised policy guidance on project assistance; (ii) strengthened internal control process as it relates to grant and contract audits; (iii) maintenance of a comprehensive inventory of required audits; and (iv) a shift of primary responsibility for scheduling audit coverage from the IG to the Office of Procurement. Plans call for the IG to assess the effectiveness of AMRP one year after the program is implemented. Appropriate 1994 funding is required to implement SWAT Team recommendations.
AID is implementing both technical and procedural improvements to protect its ADP systems. In 1992, AID: (i) implemented and tested long-term disaster recovery service for all mainframe functions, including payroll and personnel
processing; (ii) opened an off-site tape storage facility; (iii) installed anti-viral software; (iv) published new policies on
password management and classified processing; and (v) conducted risk analyses for three basic systems platforms.
Next steps: (i) Evaluate whether adequate action is being taken to implement recommendations made in risk analysis
reports, (ii) Revise AID Handbook to include new security policies, (iii) Implement necessary changes to recovery
service as regular testing continues. 1994 funding is required to improve network security.
AID cannot provide assurance that its programs are being properly monitored, and
that it is meeting appropriate standards
for accountability.
Several recent reviews of AID operations have helped AID better define its management improvement objectives, including improved program monitoring and oversight. In July 1992, an AID/OMB SWAT Team issued 30 recommendations to strengthen AID'S management of staff, projects and programs. AID developed an action plan to
carry out these recommendations.
Total 1993 AID budget is approximately
$7.3B. At risk: assurance that these funds
are being spent efficiently and effectively.
Next steps: Continue to (i) implement SWAT Team recommendations relating to personnel, contracting, audit and evaluation; (ii) concentrate programs in fewer countries; and (iii) focus country programs on fewer objectives. Implementation of SWAT Team recommendations will require appropriate staff and contractual funding in 1994.
FARM CREDIT ADMINISTRATION
High Risk Area
Progress to Date and Next Steps
Assessment
Investnrlent to
Correct Hligh Risk
Area (In tllousands
oi dolliars)
1993
Request
Inadequate financial systems and property
controls.
FCA processed ,over $136M in collections
for themselves and the Farm Credit System Insurance Corporation during 1992.
At risk: lack of adequate controls places
all of these resources at risk.
FCA financial systems are not integrated, lack fundamental controls, and do not conform with OMB core requirements.
Progress reported in 1992 was inadequate. Progress previously reported in 1991 was overstated by FCA. Further
in-house development is doubtful, and FCA is exploring external options for buying accounting services. Project
managers were replaced during 1992. OMB assessment is that 1993 management plans are unrealistic.
Next steps: OMB and Treasury team will perform an on-site review to determine most appropriate strategy and provide
technical assistance to develop strategic plan. 1994 funding requirements unknown.
3
310
1993
Enacted
310
126
THE BUDGET FOR FISCAL YEAR 1994
FEDERAL EMERGENCY MANAGEMENT AGENCY
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
Internal control program is not fully developed and implemented.
1993 new budget authority for FEMA is
$827M, including flood and crime programs. At risk: assurance that these
funds are adequately protected against
fraud, waste and abuse.
FEMA is currently revamping its entire Management Control Program to address significant weaknesses identified by
the FEMA Inspector General, OMB and FEMA's Office of Financial Management (OFI). This will be a long term effort (as reflected in FEMA's 5-Year Financial Management Plan).
1993
Enacted
3
350
300
3
90C
300
In 1992, FEMA (i) centralized activity by delegating to the newly appointed CFO responsibility for day-to-day administration and operation of the Management Control Program; (ii) defined principles and responsibilities for management controls; (iii) issued Part I of an agency Handbook in draft (for use in 1993); (iv) conducted compliance testing
in Headquarters and the ten regions in six financial areas; (v) documented specific weaknesses related to the Financial Management Program; and (vi) prepared reviews of individual assurance letters and supporting documentation. Although FEMA has made progress in 1992, agencywide implementation of the Management Control Program
has not occurred. The 1993 Management Control Plan has not yet been developed.
Next steps: (i) The 1992 FMFIA report will document specific material weaknesses related to the Financial Management Program, (ii) In 1993, the CFO plans to prepare and implement an agencywide Management Control Plan, (iii)
OFI is working on Part II of the Management Control Handbook, and training is planned for agency staff in 1993.
Funding continues to be required in 1994.
Financial Management Systems: FEMA financial/accounting systems are not integrated. They are a collection of independently designed systems held together
through a series of manual and automated interfaces.
At risk: assurance that FEMA's investment
in financial systems results in an integrated system that meets all CORE requirements, and provides accurate and
useful financial information.
FEMA is currently addressing short term financial systems fixes (e.g., implementation of the U.S. Department of Education general ledger package). The necessary customizing of this package to bridge with other FEMA systems is
almost complete; full implementation is planned for 1993. However, FEMA's maintenance of its financial management system and Education's general ledger package will be on an obsolete ADP platform. FEMA needs to address a longer term perspective for overcoming financial system deficiencies.
Next steps: FEMA plans to fully convert to the new General Ledger System in April 1993, and produce agency year
end financial reports using the new system in September 1993. This requires continued budgetary support in 1994.
FEMA also plans to address the longer term through (i) performing a data requirements analysis; (ii) evaluating
available integrated financial management system software packages designed to meet Federal systems standards;
and On) deciding on an ADP platform to allow the Financial Management System to be fully integrated into the
FEMA Wide Area Network.
GENERAL SERVICES ADMINISTRATION
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
Information Resources Management Service
(IRMS): Oversight of GSA major information systems. This encompasses policies
and processes established by GSA's IRM
oversight organization to enforce good
systems life cycle management practices.
GSA has taken numerous actions to strengthen its quality assurance program. For example, GSA has incorporated,
into the life cycle management of all major systems development efforts, key requirements and principles: top management involvement, experienced project managers, modulariy designed and implemented systems, reliance on
standards, and use of conventional technology. GSA must now address specific improvements in security, project
management, and oversight controls and implementation. This approach will be demonstrated in specific applications, such as the Public Building Service Information Service (PBS/IS), to be completed in 1994.
IRMS budget $99M. At risk: substantial investments in systems which may not perform as intended.
Next steps: GSA IRMS needs to: (i) establish standards for technology throughout the agency, such as communications protocols and user interfaces; (ii) provide experienced project management assistance; and (iii) deliver common use cross-cutting applications to GSA organizations. Continued funding is required in 1994.
Federal Supply Service (FSS) and Information Resources Management Service
(IRMS): Multiple Award Schedule (MAS)
susceptible to excessive prices and inadequate central management of agency ordering practices by GSA.
Under the MAS program, GSA provides Federal agencies with a simplified process for obtaining needed equipment,
supplies and services at prices associated with volume buying. Evidence suggests, however, that the government
may be paying excessive prices due to (i) problems with contractor data, (ii) agencies improperly using the schedule program, and (iii) lack of latitude given to agencies to choose the most cost-effective option. To ensure that the
government receives price discounts resulting from both volume purchasing and ongoing competition, changes are
needed in the overall policy governing the program and to the regulatory base upon which it is founded. ADDED
TO HIGH RISK UST.
MAS program valued at $56 annually. At
risk MAS prices higher than those commercially available and higher goverment
costs.
2
A
800
1993
Enacted
800
127
PROGRESS REPORT: HIGH RISK AREAS FOR MANAGEMENT IMPROVEMENT
NATIONAL LABOR RELATIONS BOARD
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
NLRB: poor accounting system.
Accounting system processes $162M annually. At risk: assurance that funds are
being accounted for in an accurate and
timely fashion.
NLRB inventory system not reconcilable.
Capitalized property valued at $618,000. At
risk: assurance that these assets are adequately protected against loss and theft.
OMB and the OIG performed a joint review of the new accounting system, determining that the software installation
was successful, but additional work on data, procedures, and documentation was needed. NLRB has completed actions on all recommendations made, except for two which are still in process.
1
0
1993
Enacted
22
Next steps: Complete updates to system documentation and complete reconciliation of other advances. No additional
resources will be needed in 1994.
In 1991, NLRB prepared an inventory of capitalized property, reconciled with accounting system records, and implemented verification procedures between procurement and finance. In 1992, the OIG validated corrective actions
made by NLRB in this area. DELETED FROM HIGH RISK LIST.
D
OFFICE OF PERSONNEL MANAGEMENT
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
Federal Employees Health Benefits Program
(FEHBP): Inadequate internal control
standards and oversight of insurance carrier operations.
FEHBP totalled $17B in 1993. At risk: higher
premium costs to employees and agencies as a result of excessive payments to
carriers and providers.
FEHBP management control standards and oversight of insurance carriers' performance require strengthening. Five
key problem areas identified: insurance contract administration, enrollment aind premium reconciliation, administrative
sanctions, audit resolution, and pricing of community rated plans. In 1992, (i) on-site reviews were intensified; (ii)
new regulations were issued; (iii) a pilot project was undertaken to share data on enrollees between agencies and
carriers; (iv) an administrative sanctions program was established; and (v) audit resolution problems were mostly
solved. The insurance audit cycle was identified as a new problem area and key component for improving insurance contract administration.
1993
Enacted
2
Next steps: (i) Target those operations most vulnerable to fraud and abuse and increase audit coverage, (ii) Initiate
the on-site contract officer pilot, (iii) implement cost accounting standards, (iv) Issue carrier internal control standards. Actions to be completed in all areas by 1994. Additional funding will be required in 1994.
PEACE CORPS
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
PC lacks an effective internal controls program at overseas posts.
1993 budget for overseas operations is
$146M. At risk: assurance that these expenditures are adequately protected
against fraud, waste and abuse.
Headquarters financial management system
is antiquated.
Accounting system expected to process
$218M in 1993. At risk: assurance that
funds are being accounted for in an accurate and timely fashion; inefficiencies may
be as high as 5% of outlays.
PC (i) has implemented a program to review internal controls at overseas posts and ensure that problems are corrected; (ii) has improved management of overseas imprest funds; and (iii) is using additional 1993 funds to develop
and implement new personal property management system.
1993
Enacted
2
125
324
2
300
660
Next steps: (i) Acquire equipment for new property management system by June 1993. (ii) Begin training users and
implementing system by September 1993. No additional funding is required in 1994.
PC (i) implemented a new headquarters financial management system, using an "off-the-shelf software system, with
no major problems; and (ii) identified desirable enhancements to the new system to make it more user-friendly and
reduce the number of input errors.
Next steps: (i) Complete conversion of historical data from old to new system by the end of 1993. (ii) Evaluate options
for improving the integration of overseas accounting with the headquarters system, (iii) Implement enhancements
identified by users. OIG will review new system implementation. 1994 funds are needed to provide system support,
enhancements and training.
128
THE BUDGET FOR FISCAL YEAR 1994
PENSION BENEFIT GUARANTY CORPORATION
High Risk Area
Progress to Date and Next Steps
Assessment
Investmentto
Correct Hiigh Risk
Area (In thlousands
of dol lars)
1993
Request
PBGC: weaknesses exist in all major financial systems.
Poor controls exercised over $790M premium income during 1992. At risk: proper
billing of billions of dollars in insurance
premiums.
Serious weaknesses have included: (i) premium subsystems unable to issue bills since 1988; (ii) inaccurate reporting
of the actuarial liability included in financial reports (due to lack of proper supporting data systems); and (iii) an antiquated core accounting system which does not efficiently produce reports. In 1992, manual billings were issued for
old overdue premiums and an RFP issued to purchase a modem billing and collection system. Consultants have
assisted PBGC analysts in implementing major improvements in computing and documenting actuarial liabilities.
Substantial work remains to be done, particularly in current premium and core accounting systems which still are
not functioning properly.
2
4,874
1993
Enacted
4,874
Next steps: (i) A new premium system must be selected and customized, (ii) Requirements for PBGC's core financial
system must be completed as the basis for addressing system weaknesses. Sustained progress is dependent upon
hiring permanent and competent project leaders, as well as continuing management commitment. Continued improvements in the core accounting system and the new premium system require resources in 1994.
RAILROAD RETIREMENT BOARD
High Risk Area
Progress to Date and Next Steps
Assessment
Investmlent to
Correct High Risk
Area (In ttlousands
of dollars)
1993
Request
Inadequate management controls and inability to certify the adequacy of controls for
the Board's biggest benefit program.
$7.3B in benefits, 950,000 beneficiaries in
1990. At risk: 59,500 backlogged cases of
inaccurate insurance benefit payments;
22,500 inaccurate tax statements; unrecovered debt owed RRB.
In 1990 OMB led a management review of RRB resulting in 42 findings and 104 recommendations. RRB and OMB
negotiated a $13.9 million 5-year "contract" to correct past problems. The plan linked specific reductions in backlogs and other problems with specific resource commitments. Through June 1992, RRB was ahead of schedule for
reducing backlogs in 7 of the 8 identified categories, and on schedule for the eighth. Combined record correction
and tax statement backlog reduced from 54,088 to 22,543 cases. RRB surpassed its 1992 goals in collections of
past due monies through income tax refund offset and private collection agencies. RRB is also 6 months ahead of
schedule in completing RRB/IRS reconciliations.
1
3,758
1993
Enacted
3,690
Next steps: Continue OMB and RRB implementation of the 5-year contract and funding commitments in 1994.
SECURITIES AND EXCHANGE COMMISSION
High Risk Area
Progress to Date and Next Steps
Assessment
Investnrlent to
Correct Hligh Risk
Area (In tllousands
of dolliars)
1993
Request
SEC management of ADP systems development projects needs improvement.
1993 Budget includes $23.5M for SEC computer systems development projects. At
risk: assurance that this expenditure will
result in systems that produce accurate,
timely, and useful information.
SEC lacks a long term disaster recovery
plan for computer operations.
At risk: assurance that SEC data are adequately protected, and agency can perform its mission in the event of a disaster.
SEC is taking steps to strengthen the management of systems development projects. In 1992, (i) SEC's Office of Information Technology was reorganized to integrate the Electronic Data Gathering, Analysis, and Retrieval (EDGAR)
system with other systems within the SEC; (ii) a new Chief Information Officer was appointed; and (iii) ADP Contract Guidelines were issued and distributed to staff. However, work on a Strategic IRM Plan is just starting.
1993
Enacted
2
200
200
2
3,700
1,900
Next step: Complete draft IRM Plan by May 1993. No additional resources are required for 1994.
SEC is developing and implementing a comprehensive computer disaster recovery plan. In 1992, a plan was approved
which consists of a single facility with multiple sites. The agency leased a data operations center and installed a
surplus EPA computer as their main computer (freeing an existing computer for use as backup). Congress' cut of
the President's 1993 request resulted in OMB apportioning $1.7M from excess fee collections to restore this activity
to an appropriate level.
Next steps: Complete the conceptual design and system architecture for disaster recovery; and bring the second computer site on-line and test it. No additional development funding will be necessary in 1994.
129
PROGRESS REPORT: HIGH RISK AREAS FOR MANAGEMENT IMPROVEMENT
SMALL BUSINESS ADMINISTRATION
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area [In thousands
of dollars)
1993
Request
Small Business Investment Company (SBIC)
management/liquidation activities inadequately supervised.
1993 appropriation supports nearly $200M in
SBIC guarantees; outstanding preferred
stock and guaranteed debentures total
$1.5B. At risk: $518M, representing the
size of the current liquidation portfolio.
A variety of corrective measures have been instituted. These include (i) staffing realignments and increased hiring
(from 34 to 68 positions); (ii) improved internal control systems; (iii) regulation and policy issuances; and (iv) proposed organizational changes. New staff have been trained and casework backlogs are being worked off (currently
9 cases pending liquidation decision compared to 50 in 1989). Computerized case control management information
system developed and in place. Special financial, analytic, and review processes developed. A broad-based Advisory Council comprised of industry personnel has been established to provide advice. Recoveries in 1992 were over
$67M, more than double the amount recovered in any single prior year. 1993 appropriations bill transferred $2M
and 30 staff from OIG to SBIC program office for examinations in addition to other management investment funds
appropriated.
1993
Enacted
1
750
750
2
0
60
2
230
230
Next steps: Program oversight and review and validation of Standard Operating Procedures (SOP) implementation
planned for 1993. Continued S&E funding in 1994 will be required to maintain new positions and transferred examiners.
Small Business Development Centers
(SBDCs) lack control over program income.
1993 appropriation is $67M for SBDCs. At
risk: assurance that appropriated monies
are protected from fraud, waste and misuse by grantees.
Due to restrictive language in its Congressional appropriations (1988-1992), SBA has been prohibited from publishing
regulations and operating procedures with respect to SBDCs, and accordingly precluded from conducting adequate
program oversight. SBA has, within its administrative discretion, corrected 4 of 5 related material weaknesses in the
SBDC program. Newly enacted legislation (the Small Business Credit and Business Opportunity Enhancement Act
of 1992) now requires SBA to submit proposed regulations for the SBDC program to Congressional committees by
March 3, 1993. Regulations have been written which will define program income and set internal control and accounting guidelines.
Next steps: Congressional review of proposed regulations and lifting of restriction to enable SBA to publish the regulations. No additional resources required in 1994.
Surety Bond Guaranty Program (SBGP) has
weaknesses in its system of management
control.
1993 level is $1.5B for SBGP; outstanding
share of bonds issued totals $896M. At
risk: $24.4M in potential claims.
SBA's strategy is to strengthen operating procedures, automated management information systems, and audit followup
processes. A new claims tracking system has been designed and is now operational. On-site reviews are being
conducted and some SOPs revised. Program staff has been reorganized and regional office workload assessed and
analyzed. According to SBA, budgetary constraints have limited to some degree SBGP staff increases, program reviews and systems work.
Next steps: SBA to (i) complete redesign of mainframe; (ii) continue on-site reviews; and (iii) complete revision and
publication of remaining SOPs. Resources will be required in 1994 to address these needs.
U.S. INFORMATION AGENCY
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
USIA financial management systems and
operations are inadequate.
The USIA domestic core accounting system
processes approximately $960M of the
$1.2B appropriations total; the rest is
processed through the Department of
State's overseas accounting system. At
risk: assurance that funds are being accounted for in an accurate and timely
fashion.
In 1992, USIA (i) completed a Strategic 5-year Financial Management System Plan; (ii) implemented systems to account for personal property and real property; (iii) installed a commercial software package to support small purchasing and contracting activities; and (iv) implemented a new on-line, front-end, obligations system within the core
accounting system.
Next steps: (i) Integrate accounts payable, accounts receivable and travel advance systems within the core accounting
system, (ii) Develop an information systems architecture, (iii) Perform an analysis to determine whether to replace
or upgrade the existing accounting system and identify future funding requirements.
2
1,500
1993
Enacted
1,500
130
THE BUDGET FOR FISCAL YEAR 1994
UNITED STATES SOLDIERS' AND AIRMEN'S HOME
High Risk Area
Progress to Date and Next Steps
Assessment
Investment to
Correct High Risk
Area (In thousands
of dollars)
1993
Request
Financial management controls weak and inaccurate financial data.
Over $150M in funds managed. At risk: assurance that financial transactions are accounted for in an accurate and timely
fashion.
Despite being a small agency, USSAH manages nearly $150 million in funds, some of which are the small personal
accounts of resident veterans. To ensure a strong, accurate and timely financial management system, USSAH currently receives accounting cross-servicing from Treasury, Financial Management Service (FMS), for general ledger
accounting and trust fund accounting using the accounts receivable subsystem. Congress' cut of the 1993 funding
request has resulted in delay of the remaining corrective actions.
Next steps: Although most corrective actions have been taken, implementation of the inventory, procurement and
member billing interfaces must be completed. Continued budgetary support is required in 1994. Independent validation of the new system is also required.
1
693
1993
Enacted
0
Budget Enforcement Act Preview Report
131
BUDGET ENFORCEMENT ACT PREVIEW REPORT
The Budget Enforcement Act of 1990 (BEA) contains apply to total discretionary budget authority and outprocedures designed to enforce the deficit reduction lays. The Administration proposes that the caps for
agreement of the Omnibus Budget Reconciliation Act 1996 through 1998 also apply to total discretionary
of 1990. The BEA divides the budget into two mutually budget authority and outlays.
exclusive categories: 1) discretionary programs, and 2)
Adjustments to the limits.—The BEA permits cerdirect spending and receipts. For 1991 through 1995,
the BEA limits discretionary spending and establishes tain adjustments to the discretionary limits—also
a "pay-as-you-go" requirement that legislation changing known as caps. On October 23, 1992, the Office of Mandirect spending and receipts must, in total, be at least agement and Budget submitted the Final Sequestration
deficit neutral.
Report required by the BEA. This report described adThis Preview Report discusses the status of discre- justments permitted by the BEA as of the time the
tionary, pay-as-you-go, and deficit sequestration based report was issued. The caps resulting from these adjuston current law as of March 1, 1993. In addition, it ments are the starting points for this Preview Report.
explains the differences between the OMB and CBO Included in this report are cap adjustments for difestimates of the discretionary caps and the maximum ferences between actual and projected inflation,
deficit amount. The OMB estimates use the economic reestimates of subsidy amounts under credit reform,
and technical assumptions underlying the President's
and changes in concepts and definitions. The table entibudget submission, as required by the BEA. The OMB
tled
"Discretionary Spending Limits" shows the impact
Update Report that will be issued in August, and the
Final Report that will be issued after the end of the on the caps of these adjustments.
The discretionary caps enacted in the BEA reflect
Congressional session, must also use these economic
and technical assumptions. Estimates in the Update assumptions about inflation, as measured by the gross
Report and the Final Report will only be revised to national product implicit price deflator. These assumptions are presented in the law for 1990 through 1993.
reflect laws enacted since the Preview Report.
The BEA requires an inflation adjustment if the actual
Budget Enforcement Reform
rate of inflation for a year is different from the rate
The BEA specifies budget enforcement procedures identified in the law for that year. Because the actual
through 1995. The Administration proposes that certain rate of inflation for 1992 was 2.9 percent, or 1.2 perbudget enforcement provisions should be extended. Spe- centage points less than the 4.1 percent assumed in
cifically, control over discretionary spending through the BEA, a downward adjustment has been made to
caps should be continued through 1998 and pay-as-you- the discretionary caps for 1994 and 1995.
Certain changes to the caps affect specific accounts,
go enforcement should be extended through 2003.
and they produce adjustments only to the category limDiscretionary Sequestration Report
its in which these accounts are included. An adjustment
Discretionary programs are, in general, those that previously was made to the caps for accounting changes
have their program levels established annually through made by the Federal Credit Reform Act of 1990. The
the appropriations process. The scorekeeping guidelines table below shows reestimates of these changes that
accompanying the BEA identify accounts with discre- result from better information on subsidy levels in credtionary resources. The BEA limits budget authority and it programs.
outlays available for discretionary programs each year
Several cap adjustments represent changes in conthrough 1995. Appropriations that cause either the cepts and definitions resulting from legislative action
budget authority or outlay limits to be exceeded will that reclassified certain programs. These actions shifted
trigger a sequester to eliminate any such breach. There programs between the mandatory (i.e., direct spending)
is no requirement that the full amount available under
category and the discretionary category. For instance,
the discretionary limits be appropriated.
For 1991 through 1993, limits are specified for three several 1993 appropriations bills included provisions
categories of discretionary programs: defense, inter- that modified normally mandatory programs. Since
national, and domestic. The limits on each of these funding controlled by appropriations action is considcategories are enforced independently. Thus savings in ered discretionary, the effects of these provisions are
one category cannot be used to increase spending in recorded as adjustments to the caps. An example is
another. Similarly, a breach of a category limit will an adjustment made for interim assistance to States
result only in a sequester in the category where the for legalization of aliens. A downward cap adjustment
breach occurs. For 1994 and 1995, there are no separate was made since a 1993 appropriations bill increased
categories for discretionary programs, and the caps 1994 and 1995 spending for this mandatory program.
133
134
THE BUDGET FOR FISCAL YEAR 1994
Other adjustments to the limits.—The BEA identifies other adjustments to the discretionary caps that
can be made only after appropriations have been enacted. These adjustments can be made to reflect appropriations action taken in all years from 1991 through
1995 and include the following:
• Internal Revenue Service (IRS) funding: Funding
for the IRS compliance initiative above the CBO
baseline levels estimated in June 1990. The BEA
specifies the amounts of these adjustments.
• Emergency appropriations: Funding for accounts
that the President designates as emergency requirements and that the Congress so designates
in statute. The caps estimated in this report assume enactment of the President's stimulus program, which was designated by the President as
an emergency requirement.
In addition, the BEA provides special allowances for
budget authority for 1992 through 1995, and for outlays
in 1991 through 1995. The special budget authority
allowances apply primarily to the international and domestic discretionary categories. The allowances are
based on a percentage of the total adjusted discretionary limits for budget authority in 1991 through
1993. The outlays associated with the budget authority
allowances are calculated based on spendout rates contained in the law. These outlays are subtracted from
the outlay allowance, reducing the amounts otherwise
available. In addition to the budget authority allowances for the international and domestic categories,
there is a small budget authority allowance that can
be applied to any of the three discretionary categories.
The dollar amounts for the outlay allowances are specified in the BEA. In 1991 through 1993, the allowances
are $2.5 billion for defense, $1.5 billion for international, $2.5 billion for domestic; and, in 1994 and
1995, $6.5 billion for total discretionary.
DISCRETIONARY SPENDING LIMITS
(In millions of dollars)
1995
DOMESTIC
Domestic limits, October 23,1992 end-of-session report .
Adjustments:
1992 inflation
Credit reform:
Reestimates of credit reform subsidies .
Statutory and other shifts between categories
Emergency appropriations (release of contingencies)
Subtotal, domestic adjustments required for preview report.
BA
OL
Further adjustments to reflect enactment of the President's proposals:
IRS funding
Additional IRS funding proposed in the President's budget
Stimulus proposals
Special allowances
Change to special allowance that would result from enactment of the President's Stimulus
proposals
Subtotal, further domestic adjustments .
Estimated end-of-session domestic limits
209,169
215,562
206,325
229,916
BA
OL
-1,823
-791
-1,881
-1,515
BA
OL
BA
OL
BA
OL
-132
-135
-108
-1,047
-821
-120
-206
48
56
BA
OL
-3,002
-1,672
-2,222
-1,602
187
183
150
143
188
188
157
156
5,696
1,605
851
1,865
1,605
1,348
12
10
12
11
1,954
6,883
1,962
3,568
-366
-105
-375
-151
BA
OL
Preview report domestic limits .
182,935
200,470
182,935
200,470
209,169
215,562
BA
OL
BA
OL
BA
OL
BA
OL
206,325
229,916
12,191
4,995
BA
OL
BA
OL
-23
12,203
5,001
BA
OL
182,935
200,470
209,169
215,562
218,528
234,917
BA
OL
21,245
20,296
22,191
19,840
35,081
20,601
INTERNATIONAL
International limits, October 23,1992 end-of-session report .
Adjustments:
1992 inflation
BA
OL
135
BUDGET ENFORCEMENT ACT PREVIEW REPORT
DISCRETIONARY SPENDING LIMITS-Continued
(In millions of dollars)
1991
Reestimates of credit reform subsidies
Subtotal, international adjustments required for preview report
Special allowances
Change to special allowance that would result from enactment of the President's Stimulus
proposals
Subtotal, further international adjustments
Estimated end-of-session international limits
DEFENSE
Defense limits, October 23,1992 end-of-session report
Adjustments:
1992 inflation
Desert Shield/Desert Storm outlay reestimates
Subtotal, defense adjustments required for preview report
Further adjustments to reflect enactment of the President's proposals:
Stimulus proposals
Estimated end-of-session defense limits
2
32
BA
OL
-364
-69
-373
-119
1,268
583
1,268
837
21,245
20,296
Adjustments required for preview report:
Domestic
International
Defense
Subtotal, discretionary adjustments required for preview report
Preview report discretionary limits
Further adjustments for end-of-session report
Domestic
International
Defense
Estimated end-of-session discretionary limits
22,191
19,840
35,081
20,601
BA
OL
10
4
10
6
10
8
BA
OL
10
4
1,278
589
1,278
845
BA
OL
BA
OL
-2,026
-881
-2,078
-1,512
-1
-100
BA
OL
-2,026
-882
-2,078
-1,612
BA
OL
21,245
20,296
22,191
19,840
35,091
20,605
BA
OL
332,918
330,802
305,288
310,299
289,651
298,861
332,918
330,802
305,288
310,299
BA
OL
289,651
298,861
6
4
BA
OL
332,918
330,802
305,288
310,299
289,657
298,865
BA
OL
537,098
551,568
536,648
545,701
531,056
549,378
TOTAL DISCRETIONARY
Discretionary limits, October 23,1992 end-of-session report
1995
1994
2
36
BA
OL
Preview report defense limits
1993
BA
OL
BA
OL
BA
OL
Preview report international limits
1992
1
515,312
539,877
522,071
542,285
BA
OL
BA
OL
BA
OL
-3,002
-1,672
-364
-69
-2,026
-882
-2,222
-1,602
-373
-119
-2,078
-1,612
BA
OL
-5,392
-2,623
-4,673
-3,333
531,056
549,378
509,920
537,254
517,398
538,952
12,203
5,001
10
4
6
4
1,954
6,883
1,278
589
1,962
3,568
1,278
845
543,275
554,387
513,152
544,727
BA
OL
537,098
551,568
536,648
545,701
BA
OL
BA
OL
BA
OL
BA
OL
537,098
551,568
536,648
545,701
1
520,638
543,365
136
THE BUDGET FOR FISCAL YEAR 1994
The actual adjustments to the discretionary caps to
be included in the final sequester report at the end
of the current session of Congress cannot be determined
until appropriations have been enacted. The "Discretionary Spending Limits" table shows the end-of-session
adjustments that would result if the President's discretionary proposals were enacted. The President's request
includes funding in 1994 for the IRS compliance initiative. Further, the Administration proposes to revise
these amounts in budget enforcement reform legislation
to be consistent with increased compliance initiative
funding proposed in the budget.
Consistent with the BEA, the President's request assumes an increase in budget authority and outlays
based on, the special allowance formulas. Hie adjustment to total discretionary in 1994 would increase
budget authority by $2.9 billion and outlays by $1.4
billion. In addition, about $1.1 billion of the outlay allowance has been used by the special budget authority
allowances calculated for 1992 and 1993. The remaining
outlay allowance available in 1994 would be $3.9 billion.
The President's budget proposals for discretionary
programs are below the adjusted caps, as currently estimated, in 1994 and 1995. The table below displays the
President's proposals excluding the discretionary investment proposals. The Administration believes that it is
essential that the President's investment proposals be
considered as part of the Administration's entire economic plan.
Sequester determinations.—Five days after enactment of an appropriations act, OMB must submit a
report to Congress estimating the budget authority and
outlays provided by the legislation for the current year
and the budget year. These estimates must be based
on the same economic and technical assumptions used
in the most recent President's budget. In addition, the
report must include CBO estimates and explain the
differences between the OMB and CBO estimates. The
OMB estimates are used in all subsequent calculations
to determine whether a breach of any of the budget
authority or outlay caps has occurred, and whether a
sequester is required.
Compliance with the discretionary caps is monitored
throughout the fiscal year. The first determination of
whether a sequester is necessary for a givenfiscalyear
occurs when the final sequestration report is issued
after Congress adjourns to end a session—near the beginning of the fiscal year. The monitoring process begins again after Congress reconvenes for a new session.
Appropriations for thefiscalyear in progress that cause
a breach in any of the category caps would, if enacted
before July 1st, trigger a sequester in that category.
When such a breach is estimated, a "within-session"
sequestration report and Presidential sequestration
order are issued. For a breach that results from appropriations enacted on or after July 1st, reductions necessary to eliminate the breach are not applied to the
budgetary resources available in the current year. Instead, the corresponding caps for the following fiscal
year are reduced by the amount of the breach.
A within-session sequester can only be caused by
newly enacted appropriations. Reestimates of budget
authority and outlays for already enacted funds cannot
trigger a sequester. A within-session sequester for any
of the three discretionary categories for 1993 is possible
only if additional appropriations for 1993 are enacted.
OMB reported in the Final Sequestration Report to the
President and the Congress that enacted discretionary
appropriations for 1993 were within the prescribed
spending limits.
Sequester calculations.—If either the budget authority or outlay caps are exceeded in a discretionary
category, an across-the-board reduction of sequestrable
budgetary resources in that category would be required
to eliminate the breach. The percentage reduction for
certain special-rule programs would be limited to 2 percent. Once this limit is reached, the uniform percentage
reduction for all other discretionary sequestrable resources in that category would be increased to a level
sufficient to achieve the required reduction.
If both the budget authority and outlay caps are exceeded, a sequester would first be calculated to eliminate the budget authority breach. If estimated outlays
still remained above the cap, even after applying the
available outlay allowance, further reductions in budgetary resources to eliminate the outlay breach would
then be required.
Comparison between OMB and CBO discretionary limits.—Section 254(d)(5) of the BEA requires
an explanation of differences between OMB and CBO
estimates for the discretionary spending limits. CBO
assumes lower credit subsidy costs than does OMB,
BUDGET PROPOSALS
(In millions of dollars)
President's discretionary proposals (excluding discretionary investment proposals)
Discretionary limits
President's discretionary proposals below (-) the discretionary
caos
""r"
1994
1995
1996
1997
1998
BA
OL
492,466
544,199
493,504
539,064
495,155
531,110
493,248
517,682
503,671
525,867
BA
OL
513,152
544,727
520,638
543,365
BA
OL
-20,686
-528
-27,134
-4,301
137
BUDGET ENFORCEMENT ACT PREVIEW REPORT
and, thus, has a significant decrease in the caps due
to credit reestimates. OMB also assumes a slightly
layer inflation adjustment than does CBO, due primarily to different outlay spendout rate estimates.
Other differences are relatively small and are in the
nature of technical estimating differences.
Pay-As-You-Go Sequestration Report
This section of the Preview Report discusses the enforcement procedures that apply to the remainder of
the budget—direct spending and receipts. The BEA defines direct spending as budget authority provided by
law other than appropriations acts, entitlement authority, and the food stamp program. Social security and
the Postal Service are not subject to pay-as-you-go enforcement. Legislation specifically designated as an
emergency requirement and legislation fully funding
the Government's commitment to protect insured deposits are also exempt from pay-as-you-go enforcement.
The BEA provides that, as determined by specific
provisions of the Act, direct spending and receipts legislation enacted beginning with the 102nd Congress
should not increase the deficit in any year through
1995. If it does, and if it is not fully offset by other
legislative savings, the increase must be offset by sequestration of direct spending programs. Under these
provisions, net savings enacted for one fiscal year can
be used to offset net increases in the subsequent year.
Sequester determinations.—The BEA requires
OMB, within five days after enactment of direct spending or receipts legislation, to submit a report to Congress estimating the change in outlays or receipts for
eachfiscalyear through 1995 resulting from that legislation. The estimates must use the economic and technical assumptions underlying the most recent President's budget. These OMB estimates are used to determine whether the pay-as-you-go requirements have
been met.
The cumulative nature of the pay-as-you-go process
requires maintaining a "scorecard" that shows, beginning with the 102nd Congress, the deficit impact of
enacted direct spending and receipts legislation and required pay-as-you-go sequesters. The pay-as-you-go Preview Report is intended to show how these past actions
affect the upcoming fiscal year.
As of March 1, 1993, OMB had issued 141 reports
on legislation affecting direct spending and receipts.
Most of these (80 percent) either had no effect on the
deficit or changed it by less than $10 million in each
year. Less than 10 percent of the pay-as-you-go legislation had a deficit impact greater than $50 million in
any one year.
The first table below shows OMB estimates for legislation enacted through March 1, 1993. In total, payas-you-go legislation has reduced the combined 1993
and 1994 deficits by $3.6 billion. This balance of payas-you-go savings can be used to offset legislation that
increases direct spending or reduces receipts in 1993
and 1994. Legislation that increases the combined 1993
and 1994 deficits by a greater amount will cause a
sequester.
Deficit Sequestration Report
The BEA specifies maximum deficit amounts for 1991
through 1995 that reflect the on-budget current law
PAY-AS-YOU-GO LEGISLATION ENACTED AS OF MARCH 1,1993
(In millions of dollars)
Change in the Baseline Deficit
1993
Revenue impact of enacted legislation
Outlay impact of enacted legislation
Total impact of enacted legislation
1994
1995
-5,127
2,450
-1,401
491
-1,337
534
-2,676
-910
-803
MAXIMUM DEFICIT AMOUNTS
(In billions of dollars)
Current maximum deficit amounts
Current estimated deficit
Excess deficit
Memorandum:
Current maximum defict amounts
End-of-session cap adjustments1
Pay-as-you-go emergencies2
Related debt service
Subtotal
End-of-session maximum deficit amounts
1 Assumes enactment of Presidential policy.
2 The calculations required in the end-of-session
emergencies.
1994
1995
351.2
349.5
346.6
344.9
-1.7
-1.7
351.2
7.5
2.3
1.1
346.6
4.4
-0.0
1.6
10.9
6.0
362.1
352.7
report have the practical effect of adjusting the MDA for mandatory
138
THE BUDGET FOR FISCAL YEAR 1994
levels for direct spending and receipts, and the spend- rules. The current deficit estimates are below the maxiing limits for discretionary programs. These deficit mum deficit amounts by the amount of pay-as-you-go
amounts reflect the economic and technical assumptions savings enacted and the associated debt service. Thereas of the time the BEA was enacted. For the 1992 fore, no sequestration is projected at this time. The
and 1993 budgets, the BEA required OMB to adjust table also shows adjustments to reach the end-of-sesthe maximum deficit amounts to reflect up-to-date eco- sion maximum deficit amounts. The adjustments are
nomic and technical assumptions. The BEA gives the primarily for enactment of the President's stimulus
President the option of adjusting the maximum deficit package.
amounts in 1994 and 1995. On January 21, the PresiIn its preview report, CBO estimates a maximum
dent chose to adjust the maximum deficit amount to deficit amount for 1994 of $345.1 billion, $6.1 billion
reflect current economic conditions and technical as- below the OMB estimate. CBO estimates a maximum
sumptions. Since the President chose to make this ad- deficit amount for 1995 of $354.2 billion, $7.5 billion
justment in 1994, the BEA provides him with the same above the OMB estimate. As presented in the table
opportunity in 1995.
entitled "Differences Between OMB and CBO Maximum
The "Maximum Deficit Amounts" table shows for Deficit Amounts," these differences are the result of
1994 and 1995 the current maximum deficit amounts the different technical assumptions used by OMB and
and the current deficit estimates calculated using BEA CBO, primarily for receipts and deposit insurance.
DIFFERENCES BETWEEN OMB AND CBO MAXIMUM DEFICIT AMOUNTS
(In billions of dollars)
1994
OMB maximum deficit amounts
Differences:
Receipts
Outlays:
Discretionary
Deposit insurance
Other mandatory
Interest
Total, Differences
CBO maximum deficit amounts
351.2
346.6
-1.6
-4.9
-0.0
-3.2
0.7
-2.0
-0.2
10.8
1.4
0.5
-6.1
7.5
345.1
354.2
Current Services Estimates
139
CURRENT SERVICES ESTIMATES
The current services baseline is designed to show
what receipts, outlays, deficits, and budget authority
would be if no changes are made to laws already enacted. The baseline is not a prediction of the final outcome of the annual budget process, nor is it a proposed
budget. Instead it is largely a mechanical application
of estimating models to existing laws. By itself, the
current services baseline commits no one to any particular policy, and it does not constrain the policy
choices available. The commitments or constraints reflected in the current services estimates are inherent
in the tax and spending policies contained in current
law.
The current services baseline can be useful for several reasons:
• It warns of future problems, either for Government fiscal policy as a whole or for individual
tax and spending programs.
• It provides a starting point for formulating the
annual budget.
• It is a "policy-neutral" benchmark against which
the President's budget and other budget proposals
can be compared to see the magnitude of the proposed changes.
• It is the basis, under the Budget Enforcement Act
(BEA), for determining the amount that would be
sequestered from each mandatory account and the
level of funding that would be available after sequestration.
The following table shows current services estimates
of receipts, outlays, and deficits for 1992 through 1998.
They are based on the economic assumptions described
later in this chapter. The estimates are shown on a
unified budget basis. The off-budget receipts and outlays of the Social Security trust funds and the Postal
Service Fund are added to the on-budget receipts and
outlays to calculate the unified budget totals.
The table also shows the current services estimates
by major component. These estimates assume that
nondefense discretionary funding is held constant in
real terms at the 1993 enacted level and that national
defense discretionary funding is at the levels under
President Bush's policies adjusted for economic
reestimates, potential underfunding of defense pro-
CURRENT SERVICES ESTIMATES, 1992-1998
(In billions of dollars)
Outlays:
Discretionary
Mandatory:
Deposit insurance
Medicaid
Federal retirement
Means—tested entitlements
Medicare
Social security
Unemployment compensation
Undistributed offsetting receipts
Other
Subtotal, mandatory
Net interest
Total outlays
Deficit (-)
On-budget
Off-budget
Estimate
1992
actual
1993
1994
1995
1996
1997
1,090.5
1,149.1
1,215.2
1,284.3
1,350.7
1,398.0
1,454.0
536.0
548.3
549.0
558.4
564.8
573.9
584.1
2.6
67.8
75.7
74.5
116.2
285.2
37.0
-39.3
25.7
2.8
80.5
78.3
82.8
129.8
302.2
32.6
-37.2
37.2
7.7
92.2
82.7
89.6
147.0
318.1
24.4
-38.0
30.0
-1.1
106.4
84.7
95.0
165.0
333.2
23.8
-39.0
25.6
-13.0
120.2
88.6
97.2
186.2
348.4
23.8
-40.1
18.8
-10.7
134.9
93.5
104.1
207.5
364.3
24.0
-41.8
20.6
-7.0
150.0
96.8
109.2
229.5
380.6
24.3
-43.9
20.0
645.4
199.4
709.1
201.5
753.8
214.0
793.6
233.1
830.2
253.6
896.4
274.5
959.5
297.8
1,380.9
1,458.8
1,516.8
1,585.1
1,648.5
1,744.8
1,841.4
-290.4
-340.5
50.1
-309.7
-354.4
44.7
-301.6
-360.2
58.6
-300.8
-365.7
64.9
-297.8
-373.8
76.0
-346.8
-429.2
82.4
-387.4
-477.4
90.0
536.0
-290.4
558.3
-320.1
544.7
-296.6
543.4
-283.0
550.0
-279.4
562.1
-330.5
-574.8
-372.4
536.0
-290.4
548.3
-309.7
554.5
-306.1
568.2
-308.5
580.2
-312.4
594.2
-367.2
609.7
-414.4
1998
MEMORANDUM
With discretionary spending at BEA caps:
Discretionary outlays
Deficit (-)
With discretionary spending at 1993 enacted level adjusted for inflation:
Discretionary outlays
Deficit (-)
141
142
THE BUDGET FOR FISCAL YEAR 1994
grams, and potential overestimates of savings from
management reform.
Other assumptions about discretionary funding are
plausible. For example, all discretionary funding could
be held constant in real terms at the level enacted
for 1993, or it could be equal to the discretionary cap
levels set in the BEA through 1995 with adjustments
for inflation thereafter. Total discretionary outlays and
the deficit under each of these assumptions are shown
as a memorandum in the table.
Conceptual Basis for Estimates
Receipts and outlays are divided into two categories
that are important for calculating the current services
estimates: those controlled by authorizing legislation
(direct spending and receipts) and those controlled
through the annual appropriations process (discretionary spending). Different estimating rules apply to
each category.
of annual appropriations. Absent appropriations of additional funds in the future, discretionary programs
would cease to exist after existing balances were spent.
For this reason, the definition of current services for
discretionary programs is somewhat arbitrary.
For 1993 the current services estimates for discretionary programs are equal to the enacted 1993 appropriations. In subsequent years, the baselines for defense
and nondefense discretionary programs are constructed
differently. For nondefense discretionary programs,
funding is equal to the 1993 level adjusted for inflation.
For defense programs, funding is equal to President
Bush's policies adjusted for economic reestimates, potential underfunding of defense programs, and potential
overestimates of savings from management reform.
Economic Assumptions
The current services estimates are based on the same
economic assumptions as the President's budget, which
are the same as those developed by the Congressional
Direct spending and receipts.—Direct spending in- Budget Office.
cludes the major entitlement programs, such as social
The economy and the budget interact. Economic consecurity, medicare, medicaid, Federal employee retire- ditions significantly affect the estimates of tax receipts,
ment, unemployment compensation, food stamps, and unemployment benefits, entitlement payments that are
other means-tested entitlements. It also includes such automatically adjusted for changes in the cost-of-living
programs as deposit insurance and farm price supports, (COLAs), income support programs for low-income indiwhere the Government is legally obligated under cer- viduals, and interest on the Federal debt. In turn, Govtain conditions to make payments. Receipts and direct ernment tax and spending policies influence prices, conspending programs are alike in that they involve ongo- sumptions, savings, and investment.
ing activities that generally operate under permanent
Because of these interactions, it would be reasonable,
authority (they do not require annual authorization), from an economic perspective, to assume different ecoand the underlying statutes generally specify the level nomic paths for the current services baseline and the
of receipts or benefits that must be collected or paid, President's budget. However, this would diminish the
and who must pay or who is eligible to receive benefits. value of the current services estimates as a benchmark
The current services baseline assumes that receipts for measuring proposed policy changes, because it
and direct spending programs continue in the future would be very difficult to separate the effects of proas specified by current law. That is exactly what will posed policy changes from the effects of differences in
occur without enactment of new legislation. The effects economic assumptions. By using the same economic asof legislation passed subsequent to March 1, 1993 are sumptions for current services and the President's
not included in the estimates.
budget, this potential source of confusion is eliminated.
Provisions of law providing spending authority and
The economic assumptions underlying the budget and
the authority to collect taxes or other receipts that ex- the current services estimates are summarized in the
pire under current law are usually assumed to expire following table. They are discussed in greater detail
as currently scheduled. However, the current services in the Economic Projections section.
baseline assumes extension of two types of authority
Major Programmatic Assumptions
that, in fact, normally are extended in some form by
Congress. Expiring provisions affecting excise taxes
A number of programmatic assumptions must be
dedicated to a trust fund, such as airport and airway made in order to calculate the baseline estimates. These
taxes, are assumed to be extended at current rates. include assumptions about the number of beneficiaries
In addition, direct spending programs that will expire who will receive payments from the major benefit prounder current law are assumed to be extended if their grams and annual cost-of-living adjustments in the in1993 outlays exceed $50 million. The budgetary impact dexed programs. The table on the following page shows
of anticipated regulations and administrative actions caseload projections for the major benefit programs and
that are permissible under current law are also re- other selected programmatic assumptions.
flected in the estimates.
Current Services Receipts, Outlays, and Budget
Discretionary spending.—Discretionary programs
Authority
differ in one important aspect from direct spending proReceipts.—The table below shows baseline receipts
grams—Congress usually provides spending authority
for discretionary programs one year at a time. The by major source. Total receipts are projected to increase
spending authority is normally provided in the form by $66.1 billion from 1993 to 1994 and by $238.8 billion
143
CURRENT SERVICES ESTIMATES
ECONOMIC PROJECTIONS
(Calendar years; dollar amounts in billions)
1991
actual
Projections
1992
1993
1994
1995
1996
1997
1996
5,678
4,821
117.8
5,943
4,918
120.8
6,254
5,054
123.8
6,594
5,204
126.7
6,942
5,354
129.7
7,288
5,497
132.6
7,626
5,628
135.5
7,952
5,740
138.5
3.5
0.1
3.3
5.1
2.7
2.4
5.4
2.8
2.5
5.4
3.0
2.4
5.2
2.8
2.3
4.9
2.6
2.2
4.5
2.2
2.2
4.1
1.8
2.2
2.8
-1.2
4.0
4.7
2.0
2.6
5.2
2.8
2.4
5.4
3.0
2.4
5.3
2.9
2.3
5.0
2.7
2.3
4.6
2.4
2.2
4.3
2.0
2.2
Incomes, billions of current dollars:
Personal income
Wages and salaries
Corporate profits before tax
4,828
2,812
335
5,050
2,912
376
5,308
3,055
432
5,617
3,226
457
5,952
3,404
480
6,282
3,576
509
6,602
3,737
534
6,913
3,891
551
Consumer Price Index (all urban):1
Level (1982-1984-100), annual average
Percent change, 04/04
Percent change, year/year
136.2
3.0
4.2
140.3
3.1
3.0
144.6
2.8
3.0
148.5
2.7
2.7
152.5
2.7
2.7
156.6
2.7
2.7
160.9
2.7
2.7
165.2
2.7
2.7
Unemployment rate, civilian, percent:2
Fourth quarter level
Annual average
6.9
6.7
7.3
7.4
6.9
7.1
6.4
6.6
6.1
6.2
5.9
5.9
5.7
5.8
5.7
5.7
Interest rates, percent:
91-day Treasury bills3
10-year Treasury notes
5.4
7.9
3.5
7.0
3.2
6.7
3.7
6.6
4.3
6.6
4.7
6.5
4.8
6.5
4.9
6.4
Gross Domestic Product (GDP):
Levels, dollar amounts in billions:
Current dollars
Constant (1987) dollars
implicit price deflator (1987-100), annual average
Percent change, fourth quarter over fourth quarter:
Current dollars
Constant (1987) dollars
Implicit price deflator (1987-100)
Percent change, year over yean
Current dollars
Constant (1987) dollars
Implicit price deflator (1987-100)
CPI for al urban consignors. Two versions of the CPI are now published. The index shown here is that currently used, asrequiredby law, in calculating automatic adjustments to individual income tax brackets.
the U.S.
2 Percent of civilian labor force, excluding armed forces residing in
3 Average rate (bank discount basis) on new issues within period.
PROGRAMMATIC ASSUMPTIONS, 1993-1998
Beneficiaries (annual average, in thousands):
Social security (OASDI):.
Old age and survivors insurance
Disability insurance
Railroad retirement
Federal civil service retirement
Military retirement
Veterans compensation
Veterans pensions
Supplemental security income
Maintenance assistance (AFDC)1
Food stamps
Medicaid
Medicare:
Hospital insurance
Supplementary medical insurance
Automatic benefit increases (percent):
Social security and veterans pensions (January)
Federal employee retirement (January)
Food stamps (October)
Unemployment rate (percent annual average):
Total (civilian and military)
Insured2
1 Average number of monthly cases.
2 This measures unemployment under
1993
1994
1995
1996
1997
1996
36,635
4,963
845
2,212
1,739
2,500
909
5,362
14,140
27,300
32,633
37,034
5,238
828
2,249
1,769
2,503
864
5,926
14,139
27,242
34,046
37,376
5,480
808
2,272
1,793
2,502
824
6,369
14,127
27,140
35,350
37,678
5,699
785
2,296
1,815
2,495
790
6,684
14,248
27,035
36,368
37,965
5,924
761
2,322
1,838
2,482
760
6,969
14,438
26,881
37,628
38,237
6,156
736
2,351
1,861
2,469
735
7,225
14,643
26,729
38,937
35,078
34,172
35,685
34,760
36,251
35,295
36,767
35,771
37,227
36,182
37,633
36,533
3.0
3.0
3.4
3.0
3.0
2.7
2.7
2.7
2.7
2.7
2.7
2.7
2.7
2.7
2.7
2.6
2.6
2.7
7.1
2.8
6.6
2.8
6.2
2.6
5.9
2.5
5.8
2.4
5.7
2.3
Staleregularunemployment insurance as a percentage of covered employment under that program. It does not includerecipientsof extended benefits under that program.
144
THE BUDGET FOR FISCAL YEAR 1994
BASELINE RECEIPTS BY SOURCE
(In billions of dollars)
Estimate
1992
actual
Individual income taxes
Corporation income taxes
Social insurance taxes and contributions
On-budget
Off-budget
Excise taxes
Other
Total
On-budget
Off-budget
1993
1994
1995
1996
1997
1998
476.0
100.3
413.7
(111.3)
(302.4)
46.6
55.0
516.4
108.6
426.8
(115.0)
(311.8)
47.6
49.7
536.5
114.1
462.0
(123.9)
(338.1)
48.7
53.9
574.0
117.7
485.0
(129.8)
(355.2)
49.7
57.9
610.7
122.1
510.6
(135.4)
(375.2)
46.6
60.7
635.0
122.0
530.3
(138.6)
(391.7)
47.5
63.3
661.5
126.0
552.1
(142.8)
(409.3)
48.5
65.9
1,090.5
(788.0)
(302.4)
1,149.1
(837.3)
(311.8)
1,215.2
(877.2)
(338.1)
1,284.3
(929.1)
(355.2)
1,350.7
(975.5)
(375.2)
1,398.0
(1,006.4)
(391.7)
1,454.0
(1,044.7)
(409.3)
from 1994 to 1998, largely due to assumed increases
in incomes resulting from both real economic growth
and inflation.
Individual income taxes are estimated to increase by
$20.1 billion from 1993 to 1994 under current law. This
growth of 3.9 percent is primarily the effect of increased
collections resulting from rising personal incomes. Individual income taxes are projected to grow at an annual
rate of 5.4 percent between 1994 and 1998. These estimates reflect expiration of the current law limitations
on itemized deductions and personal exemptions on December 31, 1995 and December 31, 1996, respectively.
The estimates also reflect the expiration of the accelerated estimated tax payment rules, which were enacted
under the Emergency Unemployment Compensation Act
of 1991, and are scheduled to expire on December 31,
1996.
Corporation income taxes under current law are estimated to grow by $5.5 billion or 5.1 percent from 1993
to 1994, in large part due to higher corporate profits.
Corporation income taxes are projected to increase at
an annual rate of 2.5 percent from 1994 to 1998. These
estimates reflect expiration of the accelerated tax payment rules for large corporations, which were modified
under the Tax Extension Act of 1991 and the Unemployment Compensation Amendments of 1992, and are
scheduled to expire on December 31, 1996. The environmental tax on corporate taxable income, which is deposited in the Hazardous Substance Response Superfund,
is assumed to expire on its scheduled expiration date
of December 31, 1995.
Social insurance taxes and contributions are estimated to increase by $35.1 billion between 1993 and
1994, and by an additional $90.2 billion between 1994
and 1998. The estimates reflect assumed increases in
total wages and salaries paid, scheduled increases in
the social security taxable earnings base from $57,600
in 1993 to $68,700 in 1998, and increases in the medicare taxable earnings base from $135,000 in 1993 to
$161,700 in 1998. The estimates also reflect expiration
of the temporary unemployment surtax of 0.2 percent
imposed on employers, which expires on December 31,
1996.
Excise taxes are estimated to increase by $1.1 billion
from 1993 to 1994, in large part due to increased eco-
nomic activity. They are estimated to decrease by $0.3
billion from 1994 to 1998, however, in large part due
to the expiration of the taxes on vaccines used to prevent certain diseases that expired on December 31,
1992, the 5 cents per barrel tax on domestic and imported crude oil during the summer of 1993, and the
2.5 cents per gallon tax on gasoline and special motor
boat fuels that is deposited in the General Fund of
the Treasury on September 30, 1995. Excise taxes deposited in the Airport and Airway Trust Fund, the Hazardous Substance Response Superfund, and the Leaking Underground Storage Tank Trust Fund, which are
all scheduled to expire on December 31, 1995, are assumed to be extended.
Other baseline receipts (estate and gift taxes, customs
duties, and miscellaneous receipts) are projected to increase by $16.3 billion from 1993 to 1998. The estimates of estate and gift taxes reflect the decline in
the top estate and gift tax rate from 55 percent to
50 percent, effective for transfers occurring after December 31, 1992.
Outlays.—Current services outlays are estimated to
be $1,458.8 billion in 1993 and $1,516.8 billion in 1994,
a 4.0 percent increase. Between 1994 and 1998, they
are projected to increase at an average annual rate
of 5.0 percent. These increases occur mainly in entitlement and other mandatory programs, such as social
security, medicare and medicaid, Federal employee retirement, and deposit insurance. Most of the changes
in mandatory spending are due to changes in the number of beneficiaries, to automatic cost-of-living adjustments and other adjustments for inflation, and to the
assumed pattern of spending to resolve insolvent commercial banks and savings and loan associations. Net
interest payments to the public also increase substantially, mainly as a result of the increased borrowing
by the Government that is estimated to occur over this
period.
The following tables show current services outlays
by function and by agency, respectively. The next table
shows current services outlays for direct spending and
related programs. A more detailed presentation of outlays (by function, subfunction, and program) appears
at the end of this chapter.
145
CURRENT SERVICES ESTIMATES
CURRENT SERVICES OUTLAYS BY FUNCTION
(In billions of dollars)
Function
National defense:
Department of Defense—Military
Other
International affairs
General sciende, space and technology
Natural resources and environment
Agriculture
Commerce and housing credit
On-budget
Off-budget
Transportation
Community and regional development
Education, training, employment, and social services
Health
Medicare
Income security
Social security
On-budget
Off-budget
Veterans benefits and services
Administration of justice
General government
Net interest
On-budget
Off-budget
Undistributed offsetting receipts:
Employer share, employee retirement (on-budget)
Employer share, employee retirement (off-budget)
Rents and royalties on the Outer Continental Shelf
Total, Undistributed offsetting receipts
On-budget
Off-budget
Total
On-budget
Off-budget
Estimate
1992
1993
1994
1995
1996
1997
1996
286.9
11.5
16.1
16.4
4.5
20.0
15.2
10.1
(9.5)
(0.7)
33.3
6.8
45.2
89.5
119.0
197.0
287.6
(6.2)
(281.4)
34.1
14.4
12.9
199.4
(223.1)
(-23.6)
277.2
13.4
18.1
17.0
5.4
21.3
21.8
9.7
(8.0)
(1.6)
36.4
9.2
51.8
104.9
132.7
205.5
304.8
(6.0)
(298.8)
35.5
15.3
14.7
201.5
(228.4)
(-27.0)
269.8
14.1
19.0
17.5
4.2
21.3
16.7
13.6
(12.0)
(1.6)
37.1
8.6
51.6
118.0
150.0
211.0
320.7
(6.5)
(314.2)
37.9
15.7
14.0
214.0
(243.6)
(-29.5)
269.2
14.5
19.2
18.0
4.2
22.8
14.8
3.9
(2.6)
(1-3)
37.9
8.8
51.5
132.8
168.0
220.1
335.9
(6.9)
(329.0)
37.8
16.8
14.8
233.1
(265.9)
(-32.9)
269.2
14.9
19.6
18.5
4.3
23.6
14.3
-10.5
(-9.8)
(-0.7)
38.8
8.7
47.8
147.6
189.5
228.2
351.2
(7.0)
(344.1)
37.4
17.5
14.4
253.6
(290.3)
(-36.7)
270.8
15.3
20.1
18.9
4.0
23.8
14.0
-9.3
(-8.2)
(-1.1)
40.1
8.5
52.8
163.7
210.9
239.5
367.1
(7.2)
(359.9)
39.6
17.7
14.7
274.5
(316.0)
(-41.4)
272.8
15.7
20.6
19.4
3.9
23.6
14.6
-6.9
(-5.5)
(-1.4)
41.0
8.6
54.5
180.1
233.1
248.6
383.5
(7.4)
(376.1)
41.0
18.3
15.1
297.8
(344.5)
(-46.7)
-30.7
-6.1
-2.5
-28.5
-6.4
-2.3
-28.5
-6.7
-2.8
-29.5
-7.1
-2.4
-30.1
-7.6
-2.4
-31.2
-8.1
-2.4
-32.7
-8.7
-2.4
-39.3
(-33.2)
(-6.1)
-37.2
(-30.8)
(-6.4)
-38.0
(-31.2)
(-6.7)
-39.0
(-31.9)
(-7.1)
-40.1
(-32.5)
(-7.6)
-41.8
(-33.6)
(-8.1)
-43.9
(-35.2)
(-8.7)
1,380.9
(1,128.5)
(252.3)
1,458.8
(1,191.7)
(267.1)
1,516.8
(1,237.3)
(279.5)
1,585.1
(1,294.7)
(290.3)
1,648.5
(1,349.4)
(299.1)
1,744.8
(1,435.6)
(309.2)
1,841.4
(1,522.1)
(319.3)
146
THE BUDGET FOR FISCAL YEAR 1994
CURRENT SERVICES OUTLAYS BY AGENCY
(In billions of dollars)
Agency
Cabinet Agencies:
Agriculture
Commerce
Defense
Education
Energy
Health and Human Services
On-budget
Off-budget
Housing and Urban Development
Interior
Justice
Labor
State
Transportation
Treasury
Veterans Affairs
Major Agencies:
Corps of Engineers, Military Retirement and Other Defense
Environmental Protection Agency
Executive Office of the President
Federal Emergency Management Agency
Funds Appropriated to the President
General Services Administration
Judicial Branch
Legislative Branch
National Aeronautics and Space Administration
National Science Foundation
Office of Personnel Management
Postal Service
Railroad Retirement Board
Small Business Administration
Ail Other Agencies
Undistributed Offsetting Receipts
On-budget
Off-budget
Total
On-budget
Off-budget
Estimate
1992
actual
1993
1994
1995
1996
1997
1998
56.4
2.6
286.6
26.0
15.5
538.8
(257.3)
(281.4)
24.5
6.5
9.8
47.2
5.0
32.5
293.0
33.9
66.5
3.1
277.3
30.5
17.5
590.6
(291.8)
(298.8)
25.3
7.1
10.6
42.8
5.3
35.9
301.5
35.3
62.3
3.0
270.1
30.5
17.5
641.6
(327.4)
(314.2)
27.5
7.1
10.3
34.7
5.6
36.6
320.6
37.7
62.2
3.2
269.4
29.9
18.1
690.3
(361.3)
(329.0)
29.4
7.3
11.1
34.4
5.8
37.5
347.7
37.6
63.2
3.5
269.4
25.6
18.3
742.3
(398.1)
(344.1)
30.1
7.6
11.1
34.7
6.0
38.4
374.9
37.2
63.6
3.6
271.0
29.8
18.8
800.1
(440.2)
(359.9)
30.3
7.7
11.1
35.3
6.2
39.6
402.0
39.4
64.3
3.6
273.1
30.7
19.2
857.5
(481.4)
(376.1)
30.8
8.0
11.5
35.9
6.4
40.5
432.1
40.8
28.3
6.0
0.2
1.4
11.1
0.5
2.3
2.7
14.0
2.2
35.6
0.7
4.8
0.6
29.5
6.4
0.2
3.1
11.8
1.3
2.5
2.8
14.1
2.8
37.2
1.6
4.8
0.8
30.7
6.6
0.2
1.9
12.0
0.9
2.6
2.9
14.5
2.8
38.8
1.6
4.8
0.7
32.0
6.9
0.2
1.4
11.8
1.4
2.7
3.0
14.9
2.8
40.1
1.3
4.8
0.5
33.2
7.1
0.2
1.1
11.9
0.4
2.8
3.1
15.4
2.9
43.8
-0.7
4.8
0.5
34.4
7.3
0.3
1.0
12.0
0.4
2.9
3.2
15.8
3.0
47.0
-1.1
4.8
0.6
35.7
7.4
0.3
1.0
12.3
0.4
3.0
3.3
16.2
3.1
49.5
-1.4
4.8
0.6
9.5
9.6
15.4
7.2
-4.2
-1.9
-117.1
(-87.4)
(-29.7)
-119.0
(-85.6)
(-33.3)
-124.9
(-88.6)
(-36.3)
-130.0
(-90.0)
(-40.0)
-136.3
(-92.0)
(-44.3)
-143.3
(-93.7)
(-49.6)
-151.1
(-95.7)
(-55.4)
2.2
1,380.9
(1,128.5)
(252.3)
1,458.8
(1,191.7)
(267.1)
1,516.8
(1,237.3)
(279.5)
1,585.1
(1,294.7)
(290.3)
1,648.5
(1,349.4)
(299.1)
1,744.8
(1,435.6)
(309.2)
1,841.4
(1,522.1)
(319.3)
147
CURRENT SERVICES ESTIMATES
OUTLAYS FOR DIRECT SPENDING AND RELATED PROGRAMS
(In billions of dollars)
Human resources programs:
Social Security
Medicare:
Hospital Insurance
Supplementary Medical Insurance
Medicare premiums and collections
Subtotal, medicare
Health:
Medicaid
FEHB and other
Subtotal, health
Income security:
General retirement and disability:
Railroad retirement
Other
Subtotal, general retirement and disability
Federal Employee retirement and disability:
Civilian employees retirement
Military retirement
Other
Estimate
1992
actual
11993
1994
1995
1996
1997
1998
285.2
302.2
318.1
333.2
348.4
364.3
380.6
80.8
48.6
-13.2
90.2
54.6
-15.1
101.7
62.7
-17.4
113.4
71.3
-19.8
126.3
81.0
-21.0
137.8
91.6
-21.9
148.8
103.5
-22.7
116.2
129.8
147.0
164.9
186.2
207.5
229.5
67.8
3.7
80.5
4.7
92.2
5.0
106.4
5.0
120.2
5.3
134.9
6.1
150.0
6.8
71.5
85.2
97.2
111.4
125.5
141.1
156.8
4.1
0.9
4.2
0.7
4.2
0.9
4.2
0.9
4.2
0.9
4.2
0.9
4.2
0.9
5.0
4.9
5.1
5.1
5.1
5.0
5.0
33.9
24.5
-0.9
34.9
25.6
-0.8
36.4
26.8
-0.8
37.7
27.9
-0.8
41.2
29.0
-0.8
43.6
30.2
-0.7
45.4
31.3
-0.7
57.5
59.6
62.4
64.9
69.5
73.0
76.0
Unemployment compensation
37.0
32.6
24.4
23.8
23.7
24.0
24.3
Food and nutrition assistance:
Food stamps
Child nutrition and special milk
Other
21.8
6.1
1.6
23.5
6.8
1.5
24.5
7.4
1.6
25.1
7.9
1.5
25.8
8.5
1.6
26.5
9.1
1.6
27.2
9.7
1.6
29.5
31.8
33.4
34.6
35.9
37.2
38.5
17.2
15.1
7.3
0.1
21.2
15.8
8.4
0.1
24.7
16.0
9.5
0.1
25.2
16.5
12.9
0.1
25.1
16.9
13.5
29.3
17.4
14.1
31.3
18.0
14.9
39.8
45.5
50.3
54.6
55.6
60.9
64.2
168.8
174.5
175.6
183.0
189.9
200.1
208.0
12.6
3.7
2.2
13.1
3.6
2.2
14.6
3.6
2.4
14.0
3.3
2.5
13.3
3.1
2.5
14.6
3.3
2.6
14.8
3.6
2.7
18.5
18.8
20.6
19.8
18.8
20.4
21.2
3.2
8.3
4.9
9.3
3.9
9.4
3.1
9.4
-1.8
9.8
1.8
10.2
1.9
10.6
Subtotal, federal employees retirement and disability
Subtotal, food and nutrition assistance
Other income security:
Supplemental security income
Family support payments
Earned income tax credit
Other
Subtotal, other income security
Subtotal, income security
Veterans' benefits and services:
Compensation
Pensions
Other
Subtotal, veterans benefits and services
Education, training, employment, and social services:
Guaranteed student loans
Other
11.5
14.1
13.3
12.5
8.0
12.0
12.5
671.7
724.7
771.8
825.0
876.8
945.3
1,008.7
9.7
1.3
17.1
0.3
12.2
10.6
-0.5
10.5
-0.9
10.0
-0.8
10.3
-0.7
Subtotal, agriculture
11.0
17.4
12.2
10.2
9.6
9.1
9.6
Commerce and housing credit:
Deposit insurance
Other
2.6
4.3
2.8
3.2
7.7
2.2
-1.1
1.1
-13.0
-1.5
-10.7
-2.9
-7.0
-4.3
7.0
6.0
9.9
-0.1
-14.6
-13.6
-11.3
Subtotal, education, training, employment, and social services
Subtotal, human resources programs
Other mandatory programs:
Agriculture:
Farm price supports (CCC)
Other
Subtotal, commerce and housing credit
148
THE BUDGET FOR FISCAL YEAR 1994
OUTLAYS FOR DIRECT SPENDING AND RELATED PROGRAMS-Continued
(In billions of dollars)
Estimate
1992
actual
11993
-5.0
1994
1995
1996
1997
1998
-1.8
-2.2
-2.5
-1.6
-2.7
-3.6
13.0
21.6
19.9
7.6
-6.6
-7.2
-5.3
-36.8
-2.5
-34.9
-2.3
-35.2
-2.8
-36.6
-2.4
-37.7
-2.4
-39.4
-2.4
-41.4
-2.4
-39.3
-37.2
-38.0
-39.0
-40.1
-41.8
-43.9
Subtotal, mandatory programs
645.4
709.1
753.8
793.3
830.2
896.4
959.5
Net interest:
Interest on the public debt
Interest received on trust funds
Other interest
292.3
-77.8
-15.1
294.6
-81.8
-11.3
311.5
-86.1
-11.4
334.0
-91.0
-9.9
358.5
-96.2
-8.7
383.6
-101.5
-7.5
411.6
-107.2
-6.7
Subtotal, net interest
199.4
201.5
214.0
233.1
253.5
274.5
297.8
Total, outlays for direct spending and related programs
844.9
910.5
967.8
1,026.6
1,083.7
1,170.9
1,257.3
Other functions
Subtotal, other mandatory programs
Undistributed offsetting receipts:
Employer share, employee retirement
Rents and royalties on the Outer Continental Shelf
Subtotal, undistributed offsetting receipts
149
CURRENT SERVICES ESTIMATES
Budget authority.—The following two tables show
current services estimates of budget authority and outlays by function and by agency respectively.
CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION
(In billions of dollars)
Estimate
National defense:
Department of Defense—Military
Other
International affairs
General science, space and technology
Energy
Natural resources and environment
Agriculture
Commerce and housing credit
On-budget
Off-budget
Transportation
Community and regional development
Education, training, employment, and social services
Health
Medicare
*
Income security
Social security
On-budget
Off-budget
Veterans benefits and services
Administration of justice
General government
Net interest
On-budget
Off-budget
Undistributed offsetting receipts:
Employer share, employee retirement (on-budget)
Employer share, employee retirement (off-budget)
Rents and royalties on the Outer Continental Shelf
Total, Undistributed offsetting receipts
On-budget
Off-budget
Total
On-budget
Off-budget
1993
1994
1995
1996
1997
1998
282.1
12.9
21.2
17.3
6.1
21.3
22.4
46.8
(44.6)
(2.2)
36.9
12.3
48.7
92.6
133.6
200.6
289.5
(6.2)
(283.4)
34.2
14.8
13.1
199.5
(223.1)
(-23.6)
258.9
13.9
30.7
17.2
4.0
20.9
20.4
60.7
(56.2)
(4.5)
40.3
8.2
51.4
108.5
134.7
211.7
306.5
(6.0)
(300.6)
35.4
15.1
14.2
201.5
(228.4)
(-27.0)
260.8
14.3
32.1
17.7
3.8
22.0
16.3
21.7
(18.3)
(3.3)
41.2
8.4
52.1
115.1
149.9
214.3
322.2
(6.5)
(315.7)
36.8
15.8
13.7
214.0
(243.6)
(-29.5)
262.6
14.7
32.6
18.2
4.9
23.2
14.8
10.2
(8.2)
(2.0)
41.6
8.5
52.4
133.8
168.0
223.5
337.3
(6.9)
(330.5)
38.0
16.3
14.0
233.1
(265.9)
(-32.9)
262.7
15.1
33.3
18.7
5.0
23.5
13.4
7.2
(5.2)
(1.9)
42.1
8.7
48.6
149.2
189.7
238.0
352.6
(7.0)
(345.6)
38.8
17.4
14.4
253.6
(290.3)
(-36.7)
268.6
15.5
34.1
19.2
4.8
24.1
13.9
5.5
(4.7)
(0-8)
44.6
8.9
53.6
165.2
210.9
250.1
368.7
(7.2)
(361.4)
39.7
17.9
14.9
274.5
(316.0)
(-41.4)
277.0
15.9
35.1
19.7
4.7
24.0
13.7
8.9
(4.4)
(4.4)
45.9
9.2
55.2
181.5
233.0
258.2
385.1
(7.4)
(377.7)
41.2
18.5
15.4
297.8
(344.5)
(-46.7)
-30.7
-6.1
-2.5
-28.5
-6.4
-2.3
-28.5
-6.7
-2.8
-29.5
-7.1
-2.4
-30.1
-7.6
-2.4
-31.2
-8.1
-2.4
-32.7
-8.7
-2.4
-39.3
(-33.2)
(-6.1)
-37.2
(-30.8)
(-6.4)
-38.0
(-31.2)
(-6.7)
-39.0
(-31.9)
(-7.1)
-40.1
(-32.5)
(-7.6)
-41.8
(-33.6)
(-8.1)
-43.9
(-35.2)
(-8.7)
1,466.6
(1,210.8)
(255.8)
1,517.0
(1,245.3)
(271.7)
1,534.3
(1,251.6)
(282.7)
1,608.7
(1,316.2)
(292.5)
1,691.9
(1,388.7)
(303.2)
1,792.9
(1,480.2)
(312.7)
1,896.0
(1,569.3)
(326.7)
150
THE BUDGET FOR FISCAL YEAR 1994
CURRENT SERVICES BUDGET AUTHORITY BY AGENCY
(In billions of dollars)
Estimate
Cabinet Agencies:
Agriculture
Commerce
Defense
Education
Energy
Health and Human Services
On-budget
Off-budget
Housing and Urban Development
Interior
Justice
Labor
State
Transportation
Treasury
Veterans Affairs
Major Agencies:
Corps of Engineers, Military Retirement and Other Defense
Environmental Protection Agency
Executive Office of the President
Federal Emergency Management Agency
Funds Appropriated to the President
General Services Administration
Judicial Branch
Legislative Branch
National Aeronautics and Space Administration
National Science Foundation
Office of Personnel Management
Postal Service
Railroad Retirement Board
Small Business Administration
All Other Agencies
Undistributed Offsetting Receipts
On-budget
Off-budget
Total
On-budget
Off-budget
1993
1994
1995
1996
1997
1998
66.3
3.0
281.9
28.8
17.2
559.6
(276.3)
(283.4)
25.0
7.1
10.0
48.2
5.2
36.2
295.7
33.9
67.4
3.1
259.1
30.4
17.2
597.6
(297.0)
(300.6)
26.3
6.8
10.4
43.5
5.5
39.8
302.3
35.2
66.8
3.2
261.0
30.1
17.8
640.3
(324.6)
(315.7)
25.9
7.2
10.3
35.6
5.6
40.8
321.8
36.6
67.0
3.3
262.9
30.1
18.4
692.6
(362.1)
(330.5)
27.1
7.4
10.6
35.3
5.8
41.1
348.7
37.8
66.8
3.5
263.0
26.0
18.8
744.5
(398.9)
(345.6)
34.5
7.7
10.9
35.5
6.0
41.6
375.9
38.6
68.4
3.7
268.9
30.2
19.4
802.3
(440.8)
(361.4)
36.2
7.9
11.3
36.0
6.2
44.2
403.1
39.5
68.3
3.8
277.2
31.1
20.0
859.7
(482.0)
(377.7)
36.2
8.1
11.6
36.6
6.4
45.4
433.2
40.9
28.4
6.5
0.2
4.8
13.4
0.4
2.4
2.6
14.3
2.6
35.8
2.2
4.7
1.9
29.4
6.7
0.2
0.8
23.6
0.8
2.6
2.7
14.3
2.8
39.3
4.5
4.9
1.0
30.7
6.8
0.2
0.9
23.9
0.5
2.7
2.9
14.7
2.8
39.7
3.3
5.0
1.0
32.0
7.0
0.2
0.9
24.1
0.5
2.8
3.0
15.2
2.9
41.8
2.0
5.0
0.9
33.2
7.2
0.3
0.9
24.5
0.6
2.9
3.1
15.6
3.0
46.1
1.9
5.0
0.8
34.5
7.4
0.3
0.9
24.9
0.6
3.0
3.2
16.0
3.1
49.1
0.8
5.0
0.9
35.7
7.6
0.3
1.0
25.7
0.6
3.1
3.3
16.4
3.1
51.6
4.4
5.0
0.9
45.4
58.0
21.0
12.3
9.7
9.5
10.0
-117.1
(-87.4)
(-29.7)
-119.0
(-85.6)
(-33.3)
-124.9
(-88.6)
(-36.3)
-130.0
(-90.0)
(-40.0)
-136.3
(-92.0)
(-44.3)
-143.3
(-93.7)
(-49.6)
-151.1
(-95.7)
(-55.4)
1f466.6
(1,210.8)
(255.8)
1,517.0
(1,245.3)
(271.7)
1,534.3
(1,251.6)
(282.7)
1,608.7
(1,316.2)
(292.5)
1,691.9
(1,388.7)
(303.2)
1,792.9
(1,480.2)
(312.7)
1,896.0
(1,569.3)
(326.7)
151
CURRENT SERVICES ESTIMATES
Current Services Outlays and Budget Authority
by Function and Program.—The following tables
present current services budget authority and outlays,
respectively, in function order, with subfunction and
program level detail.
CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION AND PROGRAM
(In millions of dollars)
Estimate
1992
actual
1993
1994
1995
1996
1907
1996
050 National defense:
051 Department of Defense-Military ..
282,127
258,859
260,777
262,638
262,717
268,606
276,986
053 Atomic energy defense activities .
11,980
12,067
12,403
12,732
13,057
13,390
13,731
964
1,831
1,896
1,957
2,016
2,076
2,142
295,070
272,757
275,076
277,327
277,790
284,072
292,859
3,216
1,516
1,486
670
280
148
198
117
-483
-494
3,770
180
1,493
1,533
670
325
148
220
133
-945
-403
3,880
185
1,534
1,575
688
334
152
227
136
-583
-389
3,987
190
1,574
1,616
706
342
156
235
139
-717
-389
4,091
194
1,613
1,656
724
351
160
242
142
-443
-366
4,199
199
1,653
1,698
742
360
164
250
145
-364
-357
4,309
204
1,695
1,740
761
369
168
258
148
-340
-345
6,655
7,125
7,740
7,839
8,366
8,689
8,969
3,979
3,228
141
-374
-291
3,395
2,690
93
-414
-191
3,486
2,762
117
-427
-252
3,577
2,834
120
-416
-267
3,666
2,905
123
-455
-228
3,758
2,978
126
-420
-184
3,852
3,052
130
-303
-204
6,682
5,572
5,687
5,848
6,011
6,258
6,526
2,031
539
1,305
188
2,174
560
1,379
186
2,260
577
1,416
191
2,337
592
1,453
198
2,412
608
1,490
204
2,489
624
1,527
210
2,569
640
1,565
217
4,063
4,299
4,444
4,580
4,713
4,850
4,991
1,084
202
17
1,190
220
18
1,232
226
19
1,271
232
19
1,309
238
19
1,349
244
20
1,389
250
20
1,303
1,428
1,477
1,522
1,566
1,612
1,659
641
326
777
12,063
773
12,389
771
12,711
775
13,028
791
13,354
811
13,688
2,168
53
-515
-151
1,243
460
80
-480
-910
-1,040
-1,670
-100
-800
-102
-621
-104
-620
-106
-484
-108
-427
-110
2,523
12,312
12,720
12,837
12,598
12,643
12,921
21,227
30,736
32,067
32,626
33,254
34,053
35,066
054 Defense-related activities
Total, National defense
150 international affairs:
151 International development and humanitarian assistance:
Agency for International Development
Enterprise for the Americas Initiative
Multilateral development banks
Food aid
Refugee programs
Voluntary contributions to international organizations
State Department narcotics assistance
Peace Corps
Other programs
Credit liquidating accounts
Offsetting receipts
Subtotal, International development and humanitarian assistance
152 International security assistance:
Foreign military financing
Economic support fund
Other programs
Foreign military credit sales repayment.
Credit liquidating accounts
Subtotal, International security assistance
153 Conduct of foreign affairs:
State Department salaries and expenses
Foreign buildings
United Nations programs
Other programs
Subtotal, Conduct of foreign affairs .
154 Foreign Information and exchange activities:
U.S. Information Agency
Board for International Broadcasting
Other programs
Subtotal, Foreign information and exchange activities ,
155 International financial programs:
Export-Import Bank
International monetary fund
Exchange stabilization fund
Foreign military sales trust fund (net)
Other programs
Credit liquidating accounts
Offsetting receipts
Subtotal, International financial programs .
Total, International affairs
152
THE BUDGET FOR FISCAL YEAR 1994
CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
1992
actual
Estimate
1993
1994
1995
1996
1997
1998
250 General science, space and technology:
251 General science and basic research:
National Science Foundation programs
Department of Energy general science programs
DoD general science programs
2,591
1,459
75
2,692
1,482
2,766
1,524
2,839
1,565
2,911
1,606
2,984
1,647
3,060
1,690
Subtotal, General science and basic research
4,125
4,174
4,290
4,404
4,516
4,631
4,749
252 Space flight, research, and supporting activities:
Research and program management
Space flight control and data communications
Construction of facilities
Research and development
Other
1,291
5,352
483
6,058
14
1,313
5,086
475
6,173
15
1,380
5,223
488
6,339
16
1,437
5,359
500
6,504
16
1,493
5,493
513
6,667
17
1,550
5,630
526
6,833
18
1,610
5,771
539
7,004
18
Subtotal, Space flight, research, and supporting activities
13,199
13,062
13,446
13,817
14,182
14,557
14,942
Total, General science, space and technology
17,324
17,236
17,737
18,222
18,699
19,189
19,692
3,835
-271
-123
2,411
-397
278
-567
3,930
-272
-516
978
3,974
-277
-212
1,832
4,079
-258
-255
1,419
4,186
-229
-177
1,094
4,297
-229
-180
1,033
201
8
-588
3,434
-180
-8
1,521
-176
277
-417
-41
250
5
-1,480
285
-375
2
233
5
-1,480
293
-540
-6
239
5
-1,504
300
-577
-7
246
5
-1,439
308
-586
-8
252
6
-1,593
316
-595
-8
259
6
-1,750
4,789
3,184
2,790
3,805
3,513
3,255
3,149
272 Energy conservation
511
563
579
595
610
626
642
274 Emergency energy preparedness
282
60
191
197
202
207
213
23
490
21
214
22
226
22
235
401
245
414
254
427
264
513
235
247
258
646
668
691
6,095
4,043
3,808
4,854
4,970
4,756
4,695
300 Natural resources and environment:
301 Water resources:
Corps of Engineers
Bureau of Reclamation
Other
Offsetting receipts
3,832
1,029
306
-399
3,921
931
295
-432
4,019
934
305
-383
4,174
1,010
315
-461
4,504
1,032
324
-678
4,510
1,046
333
-596
4,729
1,059
343
-686
Subtotal, Water resources
4,768
4,715
4,876
5,037
5,182
5,293
5,444
2,926
910
298
1,611
894
360
-2,347
2,899
930
301
1,579
860
360
-2,629
2,877
966
309
1,768
1,321
374
-2,815
2,962
999
318
1,852
1,399
386
-2,481
3,046
1,032
327
1,916
956
398
-2,460
3,125
1,065
337
1,927
987
410
-2,523
3,227
1,100
346
1,232
1,019
422
-2,616
4,652
4,298
4,800
5,436
5,214
5,327
4,731
296
40
2,475
256
37
2,402
293
38
2,458
301
39
2,563
308
40
2,635
315
41
2,721
323
42
2,802
270 Energy:
271 Energy supply:
Research and development
Naval petroleum reserves
Federal power marketing
Tennessee Valley Authority
Uranium enrichment
Nuclear waste program
Nuclear waste fund receipts
Subsidies for nonconventional fuel production
Rural electric and telephone
Isotopes
Credit liquidating accounts
Subtotal, Energy supply
276 Energy information, policy, and regulation:
Nuclear Regulatory Commission (NRC)
Other energy programs
Subtotal, Energy information, policy, and regulation
Total, Energy
302 Conservation and land management:
Forest Service
Management of public lands (BLM)
Mining reclamation and enforcement
Conservation reserve program
Other conservation of agricultural lands
Other
Offsetting receipts
Subtotal, Conservation and land management
303 Recreational resources:
Federal land acquisition
Urban park and historic preservation funds
Operation of recreational resources
153
CURRENT SERVICES ESTIMATES
CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
Estimate
1992
actual
1993
1994
I
1996
1995
1997
1998
-121
-211
-152
-157
-161
-165
-170
2,690
2,484
2,637
2,746
2,822
2,912
2,997
304 Pollution control and abatement:
Regulatory, enforcement and research programs
Hazardous substance superfund
Oil pollution funds (gross)
Water infrastructure financing
Leaking underground storage tank trust fund
Superfund recoveries and other
2,591
1,600
122
2,400
75
-184
2,694
1,574
183
2,550
75
-214
2,799
1,621
186
2,619
77
-275
2,886
1,667
189
2,687
79
-275
2,971
1,712
192
2,754
81
-275
3,058
1,758
195
2,823
83
-275
3,148
1,805
199
2,894
85
-275
Subtotal, Pollution control and abatement
6,605
6,862
7,028
7,234
7,436
7,643
7,856
2,591
-16
2,569
-16
2,652
-16
2,741
-17
2,828
-17
2,918
-18
3,011
-18
2,575
2,553
2,636
2,724
2,811
2,900
2,993
21,290
20,913
21,977
23,178
23,464
24,076
24,022
16,635
583
597
165
727
944
15,796
596
494
165
763
-80
11,919
567
491
169
742
-370
10,792
583
506
174
764
-873
9,731
598
521
178
786
-1,320
9,814
614
536
183
808
-1,067
9,500
630
552
187
830
-1,161
Subtotal, Farm income stabilization
19,651
17,734
13,519
11,946
10,494
10,887
10,538
352 Agricultural research and services:
Research programs
Extension programs
Marketing programs
Animal and plant health programs
Economic intelligence
Other programs and unallocated overhead
Offsetting receipts
1,169
419
188
470
255
345
-121
1,136
425
187
461
253
324
-120
1,176
437
188
479
263
336
-117
1,213
448
189
496
273
347
-114
1,249
460
192
512
282
358
-113
1,286
471
193
528
291
368
-110
1,324
483
196
545
301
380
-109
2,725
2,665
2,762
2,851
2,938
3,027
3,120
22,376
20,399
16,282
14,797
13,432
13,915
13,658
264
1,020
268
1,157
313
1,120
323
1,154
334
1,187
344
1,221
355
1,256
Offsetting receipts
Subtotal, Recreational resources
306 Other natural resources:
Program activities
Offsetting receipts
Subtotal, Other natural resources
Total, Natural resources and environment
350 Agriculture:
351 Farm income stabilization:
Commodity Credit Corporation
Crop insurance
Agricultural credit insurance
Emergency food assistance program
Other
Credit liquidating accounts
Subtotal, Agricultural research and services
Total, Agriculture
370 Commerce and housing credit:
371 Mortgage credit:
Government National Mortgage Association (GNMA)
Mortgage credit (FHA)
Rural housing programs
Federal housing enterprise oversight and other
Credit liquidating accounts
Subtotal, Mortgage credit
372 Postal Service:
Payments to the Postal Service fund (On-budget) ...
Postal Service (Off-budget)
Subtotal, Postal Service
On-budget
Off-budget
373 Deposit insurance:
Resolution Trust Corporation Fund
Bank Insurance Fund
FSUC Resolution Fund
Savings Association Insurance Fund
National Credit Union Administration
Other mandatory
3,230
1,538
1,091
770
303
-124
-744
4,514
2,962
2,523
2,247
1,824
1,442
868
511
2,198
161
4,509
164
3,320
167
2,027
170
1,943
173
790
176
4,446
2,709
4,669
3,484
2,194
2,113
963
4,622
(511)
(2,198)
(161)
(4,509)
(164)
(3,320)
(167)
(2,027)
(170)
(1,943)
(173)
(790)
(176)
(4,446)
25,000
1,864
10,059
28,000
3,015
2,428
17,000
5,011
1,181
6,672
538
1,359
1,101
318
42
284
6
154
THE BUDGET FOR FISCAL YEAR 1994
CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION AND PROGRAIUI-Continued
(In millions of dollars)
Major missions and programs
Discretionary
Subtotal, Deposit insurance
376 Other advancement of commerce:
Small and minority business assistance
Science and technology
Economic and demographic statistics
Payments to copyright owners
Regulatory agencies
International trade and other business promotion
Credit liquidating accounts
Subtotal, Other advancement of commerce
Total, Commerce and housing credit
On-budget
Off-budget
400 Transportation:
401 Ground transportation:
Highways
Highway safety
Mass transit
Railroads
Regulation (ICC)
Offsetting receipts
Subtotal, Ground transportation
402 Air transportation:
Airports and airways (FAA)
Aeronautical research and technology
Payments to air carriers
Subtotal, Air transportation
Estimate
1992
actual
1993
31
1995
1994
34
1996
1997
1998
35
37
38
40
41
356
82
325
36,961
50,476
12,900
3,034
762
306
331
202
349
317
309
640
414
347
290
326
366
252
662
428
362
340
343
434
174
683
442
375
375
357
447
65
703
455
388
380
372
573
9
724
469
401
390
384
589
9
745
483
415
400
399
607
9
2,575
2,634
2,743
2,743
2,879
2,965
3,057
46,759
60,742
21,650
10,219
7,172
5,451
8,872
(44,561)
(2,198)
(56,233)
(4,509)
(18,330)
(3,320)
(8,192)
(2,027)
(5,229)
(1,943)
(4,661)
(790)
(4,426)
(4,446)
18,137
378
3,827
948
41
-42
21,021
395
3,867
988
44
-60
21,197
429
3,993
1,070
46
-62
21,146
436
3,918
1,095
47
-64
21,126
442
3,843
1,145
48
-65
21,143
451
5,894
1,172
50
-66
21,671
463
6,040
1,202
51
-67
23,290
26,255
26,672
26,578
26,540
28,643
29,359
8,887
1,117
39
9,168
1,254
39
9,507
1,295
39
9,815
1,334
39
10,116
1,372
39
10,427
1,410
39
10,748
1,451
39
10,043
10,461
10,840
11,187
11,526
11,876
12,237
403 Water transportation:
Marine safety and transportation
Ocean shipping
Panama Canal Commission
Offsetting receipts
3,264
152
12
-109
3,199
152
-98
3,322
154
1
-105
3,435
160
5
-103
3,550
163
4
-40
3,669
166
2
-41
3,800
170
2
-42
Subtotal, Water transportation
3,320
3,253
3,372
3,496
3,678
3,796
3,930
291
-14
324
-37
351
-37
354
-39
364
-39
375
-40
386
-41
277
288
314
315
325
335
345
36,929
40,257
41,199
41,577
42,069
44,649
45,872
3,419
9
360
4,025
500
14
322
4,134
514
15
362
4,241
527
15
374
4,347
540
15
391
4,456
554
16
401
4,567
567
16
412
Subtotal, Community development
3,788
4,861
5,024
5,157
5,293
5,426
5,563
452 Area and regional development:
Rural development
Economic development assistance
Indian programs
Appalachian Regional Commission
Tennessee Valley Authority
Credit liquidating accounts
659
332
1,529
195
135
776
661
232
1,526
195
135
523
678
239
1,562
200
141
413
697
245
1,525
205
146
298
715
252
1,534
210
151
273
734
258
1,565
215
156
228
754
265
1,596
220
161
258
407 Other transportation:
Miscellaneous programs
Offsetting receipts
Subtotal, Other transportation
Total, Transportation
450 Community and regional development:
451 Community development:
Community development block grants
Community investment program
Pennsylvania Avenue Development Corporation
Other
155
CURRENT SERVICES ESTIMATES
CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Estimate
1992
actual
Offsetting receipts
1993
1995
1994
1996
1997
1998
-340
-568
-467
-402
-361
-361
-361
3,285
2,704
2,766
2,714
2,774
2,795
2,893
858
4,178
187
159
292
151
163
300
167
167
308
172
171
315
178
176
323
183
180
331
188
5,223
601
630
647
664
682
700
12,296
8,167
8,419
8,518
8,731
8,903
9,157
1,578
6,706
2,855
834
1,443
493
321
1,531
6,709
2,966
750
1,481
517
152
1,572
6,890
3,046
770
1,521
534
249
1,613
7,069
3,125
790
1,561
550
255
1,654
7,246
3,203
810
1,599
565
261
1,695
7,427
3,283
830
1,639
581
268
1,737
7,613
3,365
851
1,680
598
275
14,230
14,106
14,582
14,963
15,339
15,724
16,119
6,928
2,652
827
281
1,477
7,549
2,161
838
10
303
2,874
7,753
2,314
860
41
303
1,617
7,955
2,504
883
66
319
738
8,150
2,741
905
65
330
-4,268
8,354
2,901
927
71
343
-925
8,563
3,040
951
64
355
-916
12,166
13,735
12,889
12,464
7,923
11,670
12,056
503 Research and general education aids
2,082
2,121
2,143
2,216
2,278
2,345
2,414
504 Training and employment:
Training and employment services
Trade adjustment assistance
Older Americans employment
Payments to States for AFDC work programs
Federal-State employment service
Other
4,511
72
395
1,000
1,201
73
4,390
75
390
1,000
1,181
76
4,510
76
401
1,100
1,215
79
4,629
76
411
1,300
1,247
82
4,746
75
421
1,000
1,279
85
4,865
75
432
1,000
1,312
88
4,988
76
443
1,000
1,346
91
7,252
7,112
7,381
7,745
7,606
7,772
7,944
894
933
973
1,009
1,043
1,079
1,116
2,800
437
2,077
2,614
3,898
2,800
441
2,183
2,924
3,659
839
202
311
15
2,800
453
2,251
2,995
3,760
862
208
812
15
2,800
465
2,279
3,332
3,860
884
215
135
16
2,800
476
2,340
3,683
3,958
907
221
2,800
488
2,403
4,055
4,059
929
227
2,800
500
2,467
4,437
4,162
953
234
16
16
17
Subtotal, Area and regional development
453 Disaster relief and insurance:
Small business disaster loans
Disaster relief
Other
Credit liquidating accounts
Subtotal, Disaster relief and insurance
Total, Community and regional development
500 Education, training, employment, and social services:
501 Elementary, secondary, and vocational education:
School improvement programs
Compensatory education
Special education
Impact aid
Vocational and adult education
Indian education programs
Other
Subtotal, Elementary, secondary, and vocational education
502 Higher education:
Student financial assistance
Family education loan program
Higher education
Federal direct loan program
Other
Credit liquidating accounts (Family education loan program)...
Subtotal, Higher education
Subtotal, Training and employment
505 Other labor services
506 Social services:
Social services block grant
Community services block grant
Rehabilitation services
Payments to States for foster care and adoption assistance ..
Children and families services programs
Aging services program
Domestic volunteer programs
Interim assistance to States for legalization
Other social services
199
15
Subtotal, Social services
12,041
13,373
14,156
13,985
14,401
14,978
15,570
Total, Education, training, employment, and social services
48,665
51,380
52,124
52,383
48,591
53,568
55,219
69,766
418
2,504
82,596
513
4,149
207
1,863
89,060
607
3,458
292
1,927
106,379
680
4,181
251
1,987
120,231
737
5,074
247
2,045
134,922
772
5,689
243
2,105
150,013
809
6,384
239
2,167
550 Health:
551 Health care services:
Medicaid grants
Health insurance earned income credit
Federal employees' health benefits
Coal miners retirees health benefits
Indian health
1,705
156
THE BUDGET FOR FISCAL YEAR 1994
CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
Substance abuse and mental health services
Other health care services
Subtotal, Health care services
552 Health research and training:
National Institutes of Health
DoD breast cancer and other health research
Clinical training
Substance abuse and mental health research
Other research and training
Subtotal, Health research and training
554 Consumer and occupational health and safety:
Food safety and inspection
Other consumer safety
Occupational safety and health
Estimate
1992
actual
1993
1994
1995
1997
1996
1998
1,931
3,764
2,039
4,196
2,095
4,304
2,150
4,432
2,204
4,554
80,087
95,562
101,744
120,060
135,093
150,642
166,639
8,927
10,332
210
344
10,630
216
370
10,918
221
377
11,202
227
371
11,494
232
366
11,793
238
361
267
277
286
295
304
313
10,703
11,153
11,492
11,802
12,095
12,396
12,706
473
800
490
490
828
493
513
886
513
533
918
531
552
949
549
573
981
567
594
1,015
586
362
1,159
254
2,260
4,651
2,317
4,711
1,764
1,811
1,912
1,982
2,050
2,121
2,194
92,554
108,526
115,148
133,845
149,238
165,158
181,539
92,489
54,342
-13,233
91,811
56,268
-13,381
102,959
64,340
-17,352
114,667
73,082
-19,761
127,917
82,805
-21,016
139,276
93,527
-21,881
150,289
105,465
-22,741
133,599
134,698
149,948
167,988
189,706
210,922
233,013
600 Income security:
601 General retirement and disability insurance (excluding social security):
Railroad retirement
Special benefits for disabled coal miners
Pension Benefit Guaranty Corporation
Other
4,427
1,392
4,652
1,371
4,764
1,391
4,761
1,353
4,761
1,313
4,694
1,267
4,711
1,216
170
190
204
220
236
253
272
Subtotal, General retirement and disability insurance (excluding social sew v n , l 7/
curity
5,989
6,214
6,360
6,334
6,309
6,214
6,199
33,540
24,557
190
14
35,176
25,591
288
12
36,627
26,789
293
2
37,971
27,914
296
15
41,433
29,029
296
18
43,843
30,172
295
19
45,644
31,320
288
21
58,301
61,067
63,711
66,197
70,775
74,330
77,273
39,534
34,887
26,765
26,172
26,168
26,443
26,817
6,578
7,585
2,500
150
73
1,500
111
165
361
398
325
8,779
6,926
2,332
150
50
1,060
267
175
661
399
214
9,016
6,278
2,369
154
51
1,089
274
180
679
410
310
9,250
7,342
2,405
158
53
1,117
281
184
696
421
320
9,481
14,450
2,465
162
54
1,145
288
189
714
431
330
9,718
15,709
2,527
166
55
1,173
295
194
732
442
340
9,961
15,171
2,590
170
57
1,203
302
199
750
453
350
19,746
21,013
20,809
22,227
29,709
31,351
31,207
22,650
1,002
6,191
2,600
27,064
1,040
6,841
2,860
29,535
1,091
7,452
2,937
30,140
1,133
8,024
3,014
30,864
1,133
8,617
3,089
31,552
1,133
9,191
3,166
32,236
1,133
9,811
3,245
Subtotal, Consumer and occupational health and safety
Total, Health
570 Medicare:
571 Medicare:
Hospital insurance (HI)
Supplementary medical insurance (SMI)
Medicare premiums and collections
Total, Medicare
602 Federal employee retirement and disability:
Civilian retirement and disability programs
Military retirement
Federal employees workers' compensation (FECA)
Federal employees life insurance fund
Subtotal, Federal employee retirement and disability
603 Unemployment compensation
604 Housing assistance:
Subsidized housing
Renewal of Section 8 contracts
Public housing
Supportive housing program
Emergency shelter grants
Home investment partnerships program
Shelter plus care
Community partnerships against crime
HOPE grants
Rural housing assistance
Other housing assistance
Subtotal, Housing assistance
Foodstamps
and nutrition assistance:
605Food
Nutrition assistance for Puerto Rico
Child nutrition and special milk
Special supplemental food program for women, infants, and children (WIC)
157
CURRENT SERVICES ESTIMATES
CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
Other nutrition programs
Subtotal, Food and nutrition assistance
609 Other income security:
Supplemental security income (SSI)
Family support payments
Earned income tax credit (EITC)
Refugee assistance
Low income home energy assistance
Payments to states for day-care assistance
Other
Recovery of SSI overpayments
Subtotal, Other income security
Total, Income security
650 Social security:
651 Social security:
Old-age and survivors insurance (OASI)
Disability insurance (Dl)
Interfund transactions
Total, Social security
On-budget
Off-budget
700 Veterans benefits and services:
701 Income security for veterans:
Compensation
Pensions
Burial benefits and miscellaneous assistance
National service life insurance trust fund
All other insurance programs
Insurance program receipts
Subtotal, Income security for veterans
702 Veterans education, training, and rehabilitation:
Readjustment benefits (Gl Bill and related programs)
Post-Vietnam era education
All-volunteer force educational assistance trust fund
Other
Subtotal, Veterans education, training, and rehabilitation
703 Hospital and medical care for veterans:
Medical care and hospital services
Medical administration, research, and other
Construction
Third-party medical recoveries
Fees and other charges for medical services
Subtotal, Hospital and medical care for veterans
704 Veterans housing:
Loan guaranty
Direct loans
Guaranty and indemnity
Credit liquidating acoounts
Subtotal, Veterans housing
705 Other veterans benefits and services:
Cemeteries, administration of veterans benefits, and other
Estimate
1992
actual
1993
1994
1995
1996
1998
1997
1,015
1,211
1,112
1,035
1,052
1,069
1,087
33,459
39,016
42,127
43,346
44,755
46,112
47,513
18,488
15,460
7,345
411
1,500
825
259
-668
23,347
15,695
8,396
381
1,346
893
161
-680
27,086
15,916
9,506
392
1,437
917
168
-860
27,700
16,528
12,907
402
1,475
941
171
-905
27,739
16,954
13,515
412
1,436
964
175
-910
32,097
17,474
14,114
422
1,472
988
179
-1,065
34,286
18,058
14,869
433
1,509
1,013
183
-1,165
43,618
49,539
54,562
59,218
60,286
65,681
69,186
200,649
211,736
214,333
223,495
238,002
250,131
258,196
257,685
31,846
1
272,005
34,512
284,685
37,547
297,219
40,122
309,734
42,906
322,617
46,037
335,689
49,427
289,532
306,517
322,233
337,341
352,640
368,654
385,116
(6,167)
(283,365)
(5,953)
(300,565)
(6,547)
(315,686)
(6,871)
(330,471)
(7,034)
(345,606)
(7,211)
(361,444)
(7,437)
(377,680)
12,531
3,667
105
1,494
38
-424
13,018
3,509
116
1,455
33
-377
13,647
3,396
117
1,399
25
-322
13,995
3,334
119
1,373
35
-309
14,304
3,303
121
1,332
36
-300
14,587
3,281
123
1,280
36
-291
14,859
3,648
124
1,232
36
-259
17,412
17,754
18,261
18,547
18,796
19,017
19,640
635
-19
-16
814
-13
-103
1
947
-10
-101
1
1,212
-6
-120
1
1,309
1,386
1,454
-107
1
-100
2
-88
2
600
700
839
1,088
1,203
1,287
1,368
13,626
281
710
-216
-144
14,643
314
684
-100
-355
15,274
328
702
-49
-473
15,830
340
721
168
-530
16,371
352
739
-76
-375
16,931
364
757
-20
-456
17,510
376
776
22
-407
14,256
15,185
15,782
16,529
17,011
17,576
18,278
175
1
581
57
137
6
489
112
120
7
505
163
117
7
505
100
116
7
508
42
116
7
505
19
116
7
506
815
745
794
730
672
647
630
979
946
986
1,022
1,056
1,092
1,130
158
THE BUDGET FOR FISCAL YEAR 1994
CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
Non-VA support programs
Estimate
1992
actual
1993
90
1994
92
1996
1995
95
98
1998
1997
101
103
106
1,070
1,037
1,081
1,119
1,157
1,196
1,236
34,152
35,421
36,756
38,013
38,839
39,723
41,151
3,110
347
3,299
-1,152
504
582
3,212
368
3,260
-1,288
509
644
3,464
385
3,386
-1,372
530
671
3,590
399
3,525
-1,458
548
695
3,691
413
3,427
-722
566
718
3,810
428
3,539
-742
584
742
3,934
443
3,659
-766
603
767
6,690
6,706
7,063
7,300
8,094
8,362
8,640
2,317
2,449
351
14
2,525
2,563
357
14
2,597
2,671
367
14
2,683
2,767
376
15
2,767
2,860
386
15
2,854
2,957
395
16
2,944
3,057
405
16
5,130
5,459
5,649
5,840
6,028
6,222
6,423
2,101
2,035
2,168
2,244
2,317
2,394
2,472
872
856
878
903
928
953
980
14,793
15,055
15,758
16,286
17,367
17,931
18,515
2,137
2,114
2,202
2,282
2,361
2,442
2,527
212
248
253
261
269
278
286
6,680
343
7,112
199
7,420
250
7,696
291
7,964
328
8,241
371
8,529
403
7,022
7,310
7,670
7,987
8,292
8,613
8,932
169
-27
153
214
662
-44
166
203
351
-37
170
208
365
-46
174
214
380
-46
179
220
395
-46
183
228
410
-46
188
235
508
987
692
707
733
760
787
805 Central personnel management
171
439
186
193
200
207
214
806 General purpose fiscal assistance:
Payments and loans to the District of Columbia
Payments to States and counties from Forest Service receipts
Payments to States from receipts under the Mineral Leasing Act
Payments to States and counties from Federal land management activities
Payments in lieu of taxes
Payments to territories and Puerto Rico
Other
376
336
432
153
104
211
281
664
366
431
104
104
223
278
685
396
518
52
107
230
275
703
328
507
56
110
239
270
720
311
529
57
112
244
266
737
314
548
60
115
251
263
757
329
565
61
118
256
258
1,893
2,170
2,262
2,212
2,237
2,289
2,343
163
115
794
500
30
111
161
112
609
500
30
148
142
105
599
100
29
153
143
107
599
146
109
599
130
111
594
132
114
594
29
159
29
164
29
170
29
177
1,712
1,561
1,127
1,037
1,048
1,034
1,045
Subtotal, Other veterans benefits and services .
Total, Veterans benefits and services
750 Administration of justice:
751 Federal law enforcement activities:
Criminal investigations (DEA, FBI, FinCEN, OCDE).
Alcohol, tobacco, and firearms investigations (ATF).
Border enforcement activities (Customs and INS)....
Customs and INS fees
Protection activities (Secret Service)
Other enforcement
Subtotal, Federal law enforcement activities
752 Federal litigative and judicial activities:
Civil and criminal prosecution and representation
Federal judicial activities
Representation of indigents in civil cases
Other
Subtotal, 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:
Collection of taxes
Other fiscal operations
Subtotal, Central fiscal operations .
804 General property and records
Federal buildings fund
Property and other receipts
Records management
Other
Subtotal, General property and records management
Subtotal, General purpose fiscal assistance .
808 Other general government:
Compact of free association
Territories
Treasury claims
Civil liberties public education fund
Presidential election campaign fund
Other
Subtotal, Other general government
159
CURRENT SERVICES ESTIMATES
CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
809 Deductions for offsetting receipts
Total, General government
900 Net interest:
901 Interest on the public debt
902 Interest received by on-budget trust funds:
Civil Service retirement and disability
Military retirement
Medicare
Other on-budget trust fund interest
1992
actual
Estimate
1993
1994
1995
1996
1997
1998
-524
-677
-691
-700
-710
-710
-710
13,131
14,152
13,702
13,978
14,430
14,912
15,425
292,330
294,583
311,513
334,038
358,518
383,579
411,745
-22,383
-9,017
-11,770
-11,023
-23,653
-9,630
-12,194
-9,357
-25,014
-10,534
-12,252
-8,713
-26,144
-11,676
-11,608
-8,755
-27,393
-12,966
-10,308
-8,821
-28,427
-14,338
-8,337
-8,974
-29,435
-15,972
-5,949
-9,184
-54,193
-54,834
-56,513
-58,183
-59,488
-60,076
-60,540
903 Interest received by off-budget trust funds
-23,637
-26,967
-29,542
-32,859
-36,714
-41,423
-46,677
908 Other interest:
Interest on loans to Federal Financing Bank
Interest on refunds of tax collections
Payment to the Resolution Funding Corporation
Interest paid to loan guarantee financing accounts
Interest received from direct loan financing accounts
Interest on deposits in tax and loan accounts
Other
-14,716
3,253
2,328
97
-97
-804
-5,087
-11,490
2,595
2,328
287
-586
-564
-3,884
-10,545
2,720
2,328
551
-1,023
-730
-4,710
-9,774
2,869
2,328
750
-1,460
-890
-3,756
-8,543
3,032
2,328
907
-1,894
-995
-3,576
-7,226
3,144
2,328
1,037
-2,332
-1,030
-3,453
-6,302
3,251
2,328
1,178
-2,807
-1,050
-3,303
Subtotal, Other interest
-15,025
-11,314
-11,409
-9,934
-8,741
-7,531
-6,705
Total, Net interest
199,475
201,469
214,049
233,063
253,575
274,549
297,823
(223,112)
(-23,637)
(228,436)
(-26,967)
(243,591)
(-29,542)
(265,922)
(-32,859)
(290,289)
(-36,714)
(315,972)
(-41,423)
(344,500)
(-46,677)
-30,680
-28,494
-28,473
-29,500
-30,082
-31,234
-32,727
-6,101
-6,373
-6,731
-7,125
-7,601
-8,128
-8,722
-2,498
-2,299
-2,758
-2,352
-2,383
-2,396
-2,449
-39,280
-37,165
-37,962
-38,977
-40,066
-41,758
-43,898
(-33,179)
(-6,101)
(-30,793)
(-6,373)
(-31,231)
(-6,731)
(-31,852)
(-7,125)
(-32,465)
(-7,601)
(-33,630)
(-8,128)
(-35,176)
(-8,722)
1,466,635
1,517,039
1,534,304
1,608,734
1,691,904
1,792,855
1,895,991
(1,210,811)
(255,824)
(1,245,305)
(271,734)
(1,251,571)
(282,733)
(1,316,220)
(292,514)
(1,388,669)
(303,234)
(1,480,172)
(312,683)
(1,569,264)
(326,726)
Subtotal, Interest received by on-budget trust funds
On-budget
Off-budget
950 Undistributed offsetting receipts:
951 Employer share, employee retirement (on-budget)
952 Employer share, employee retirement (off-budget)
953 Rents and royalties on the Outer Continental Shelf
Total, Undistributed offsetting receipts
On-budget
Off-budget
Total
On-budget
Off-budget
* $500 thousand or less.
160
THE BUDGET FOR FISCAL YEAR 1994
CURRENT SERVICES OUTLAYS BY FUNCTION AND PROGRAM
(In miRons ot dolars)
E*Mto
1902
•dud
1993
1994
1905
1906
1907
1996
050 National defense:
051 Department of Detense-MHttary
286,892
277,178
269,779
269,175
269,194
270,752
272,820
053 Atomic energy defense activities
10,619
11,664
12,215
12,590
12,937
13,237
13,575
839
1,768
1,881
1,942
1,998
2,058
2,123
298,350
290,610
283,875
283,707
284,130
286,047
288,517
2,912
-353
-494
3,070
104
1,368
1,737
658
330
146
215
1
-911
-403
3,485
129
1,588
1,563
683
350
150
228
1
-523
-389
3,732
155
1,683
1,604
701
357
152
234
-46
-590
-389
3,909
177
1,666
1,644
718
357
156
242
-55
-459
-366
4,032
195
1,678
1,685
737
360
160
249
-53
-377
-357
4,126
199
1,594
1,728
755
367
164
257
-61
-350
-345
6,133
6,316
7,266
7,592
7,989
8,309
8,434
4,399
2,938
218
-374
310
4,636
3,170
153
-414
359
3,657
3,098
122
-427
368
3,518
3,028
125
-416
-125
3,522
3,009
130
-455
-228
3,599
3,025
124
-420
-184
3,688
3,063
127
-303
-204
7,490
7,905
6,818
6,130
5,977
6,143
6,370
2,029
382
1,336
147
2,145
427
1,399
183
2,238
509
1,416
194
2,319
577
1,452
196
2,396
636
1,489
202
2,473
654
1,526
208
2,553
672
1,564
215
3,894
4,155
4,358
4,544
4,723
4,861
5,003
1,052
210
18
1,155
282
18
1,220
286
19
1,259
291
20
1,298
281
19
1,337
244
20
1,377
250
20
1,280
1,455
1,524
1,569
1,599
1,600
1,647
124
-686
-2,345
258
355
-243
-151
411
11
-1,000
130
42
-1,264
-100
499
13
-1,100
310
-13
-534
-102
614
19
-1,100
470
-57
-451
-104
710
19
-1,100
320
-25
-526
-106
757
19
-1,100
-30
17
-412
-108
771
19
-1,100
-50
14
-379
-110
Subtotal, Internationalfinancialprograms
-2,689
-1,769
-927
-609
-708
-857
-835
Total, International affairs
16,107
18,061
19,040
19,226
19,579
20,057
20,619
2,249
1,263
59
2,753
1,416
13
2,744
1,502
2
2,784
1,550
1
2,866
1,591
2,928
1,632
3,002
1,674
Subtotal, General science and basic research
3,571
4,183
4,248
4,335
4,457
4,560
4,676
252 Space flight, research, and supporting activities:
Research and program management
1,465
1,306
1,374
1,433
1,488
1,545
1,605
054 Defense-related activities
Total, National defense
150 International affairs:
151 International development and humanitarian assistance:
Agency for International Development
Enterprise for the Americas Initiative
Multilateral development banks
Food aid
Refugee programs
Voluntary contributions to international organizations
State Department narcotics assistance
Peace Corps
Other programs
Credit liquidating accounts
Offsetting receipts
Subtotal, International development and humanitarian assistance
152 International security assistance:
Foreign military financing
Economic support fund
Other programs
Foreign military credit sales repayment
Credit liquidating accounts
Subtotal, International security assistance
153 Conduct of foreign affairs:
State Department salaries and expenses
Foreign buildings
United Nations programs
Other programs
Subtotal, Conduct offoreignaffairs
154 Foreign information and exchange activities:
U.S. Information Agency
Board for International Broadcasting
Other programs
Subtotal, Foreign information and exchange activities
155 international financial programs:
Export-Import Bank
International monetary fund
Exchange stabilization fund
Foreign military sales trust fund (net)
Other programs
Credit liquidating accounts
250 General science, space and technology:
251 General science and basic research:
National Science Foundation programs
Department of Energy general science programs
Dob oanaral science oroarams
1,447
1,349
671
270
134
196*
161
CURRENT SERVICES ESTIMATES
CURRENT SERVICES OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
1992
•dual
Estimate
1993
1996
1995
1994
1997
1996
5,118
409
5,834
12
5,031
459
6,045
15
5,124
484
6,250
16
5,271
488
6,417
16
5,414
497
6,580
17
5,555
508
6,744
18
5,699
520
6,913
18
Subtotal, Space flight, research, and supporting activities .
12,838
12,856
13,248
13,625
13,995
14,371
14,754
Total, General science, space and technology
16,409
17,039
17,496
17,960
18,452
18,930
19,430
3,432
-278
-10
1,374
-275
327
-567
132
45
8
-961
3,648
-184
225
1,226
-78
280
-417
96
128
5
-570
3,749
-270
-513
835
3,958
-282
-254
919
4,009
-261
-388
939
4,027
-239
-286
724
4,012
-230
-271
738
282
-375
98
165
5
-906
289
-540
35
191
5
-1,143
297
-577
26
200
5
-1,265
304
-586
23
219
6
-1,498
312
-595
23
247
6
-1,691
3,226
4,357
3,069
3,178
2,986
2,694
2,551
272 Energy conservation
468
516
538
581
597
612
628
274 Emergency energy preparedness
319
360
356
368
265
204
210
276 Energy information, policy, and regulation:
Nuclear Regulatory Commission (NRC)
Other energy programs
50
437
12
172
14
208
16
51
394
56
407
59
420
64
486
184
222
67
450
466
483
4,499
5,416
4,186
4,195
4,297
3,977
3,873
300 Natural resources and environment:
301 Water resources:
Corps of Engineers
Bureau of Reclamation
Other
Offsetting receipts
3,731
984
243
-399
3,939
1,174
353
-432
3,993
910
329
-383
4,146
982
325
-461
4,473
1,013
317
-678
4,489
1,026
335
-596
4,698
1,041
367
-686
Subtotal, Water resources
4,559
5,033
4,849
4,992
5,125
5,253
5,420
2,850
936
293
1,669
821
359
-2,347
2,856
977
264
1,781
890
364
-2,629
2,861
954
320
1,839
928
374
-2,815
2,944
992
331
1,852
1,245
382
-2,481
3,029
1,025
366
1,916
1,330
387
-2,460
3,108
1,059
326
1,927
1,080
399
-2,523
3,209
1,093
335
1,232
1,023
411
-2,616
Space flight control and data communications
Construction of facilities
Research and development
Other
270 Energy:
271 Energy supply:
Research and development
Naval petroleum reserves
Federal power marketing
Tennessee Valley Authority
Uranium enrichment
Nuclear waste program
Nuclear waste fund receipts
Subsidies for nonconventional fuel production .
Rural electric and telephone
Isotopes
Credit liquidating accounts
Subtotal, Energy supply
Subtotal, Energy information, policy, and regulation
Total, Energy
302 Conservation and land management:
Forest Service
Management of public lands (BLM)
Mining reclamation and enforcement
Conservation reserve program
Other conservation of agricultural lands ....
Other
Offsetting receipts
4,581
4,504
4,460
5,265
5,593
5,375
4,689
303 Recreational resources:
Federal land acquisition
Urban park and historic preservation funds
Operation of recreational resources
Offsetting receipts
313
38
2,148
-121
278
43
2,437
-211
270
46
2,490
-152
269
43
2,542
-157
272
40
2,601
-161
279
40
2,673
-165
286
41
2,760
-170
Subtotal, Recreational resources.
2,378
2,547
2,653
2,697
2,751
2,826
2,918
2,373
1,291
108
2,421
67
2,612
1,599
176
2,397
74
2,777
1,631
183
2,422
76
2,876
1,696
187
2,582
78
2,973
1,702
191
2,679
80
3,028
1,713
194
2,716
82
3,117
1,725
197
2,748
84
Subtotal, Conservation and land management.
304 Pollution control and abatement:
Regulatory, enforcement, and research programs .
Hazardous substance superfund
Oil pollution funds (gross)
Water infrastructure financing
Leaking underground storage tank trust fund
162
THE BUDGET FOR FISCAL YEAR 1994
CURRENT SERVICES OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
Estimate
1992
actual
1993
1994
1996
1995
1997
1998
-184
-214
-275
-275
-275
-275
-275
6,075
6,646
6,814
7,144
7,350
7,459
7,597
2,447
-16
2,556
-16
2,566
-16
2,688
-17
2,783
-17
2,867
-18
2,959
-18
2,432
2,541
2,549
2,672
2,766
2,850
2,941
20,025
21,271
21,326
22,771
23,585
23,763
23,564
9,742
954
371
165
628
805
17,134
867
498
167
504
-18
12,239
901
490
169
568
-370
10,642
957
508
174
576
-870
10,519
978
520
178
585
-1,321
9,985
1,002
535
182
592
-1,262
10,305
985
551
187
680
-1,149
Subtotal, Farm income stabilization
12,666
19,153
13,997
11,986
11,459
11,035
11,559
352 Agricultural research and services:
Research programs
Extension programs
Marketing programs
Animal and plant health programs
Economic intelligence
Other programs and unallocated overhead
Offsetting receipts
1,068
404
177
448
258
305
-121
1,103
424
186
498
250
311
-120
1,153
420
180
473
254
331
-117
1,177
443
186
493
267
343
-114
1,214
455
191
509
274
354
-113
1,250
466
194
525
278
365
-110
1,289
478
200
542
285
377
-109
2,539
2,653
2,696
2,795
2,883
2,970
3,062
15,205
21,805
16,693
14,782
14,342
14,005
14,621
-4
207
704
-1
3,414
-4
249
1,008
-4
303
1,071*
-4
333
1,165
-3
343
1,205
-2
354
1,240
1,213
341
-4
323
1,125
-1
-423
-1,146
-2,041
-3,191
4,320
2,466
1,712
1,020
348
-496
-1,599
511
659
161
1,627
164
1,574
167
1,269
170
-675
173
-1,109
176
-1,373
1,169
1,788
1,738
1,436
-505
-936
-1,197
(511)
(659)
(161)
(1,627)
(164)
(1,574)
(167)
(1,269)
(170)
(-675)
(173)
(-1,109)
(176)
(-1,373)
-8,953
3,666
8,469
-292
-231
-46
-94
-3,940
4,009
3,837
-909
-203
-7
50
-4,324
2,974
1,332
7,881
-167
-6
65
-7,268
4
1,359
4,986
-193
2
66
-8,286
-3,275
222
-1,490
-206
-1
68
-3,707
-4,674
-184
-1,961
-219
-2
69
-1,344
-4,530
189
-1,116
-234
-1
71
2,518
2,839
7,754
-1,044
-12,969
-10,677
-6,965
592
240
342
238
313
690
325
436
290
336
671
319
361
340
334
679
364
378
375
352
692
436
371
380
oce
OOO
713
454
416
390
377
734
482
412
400
392
Superfund recoveries and other
Subtotal, Pollution control and abatement
306 Other natural resources:
Program activities
Offsetting receipts
Subtotal, Other natural resources
Total, Natural resources and environment
350 Agriculture:
351 Farm income stabilization:
Commodity Credit Corporation
Crop insurance
Agricultural credit insurance
Emergency food assistance program
Other
Credit liquidating accounts
Subtotal, Agricultural research and services
Total, Agriculture
370 Commerce and housing credit:
371 Mortgage credit:
Government National Mortgage Association (GNMA)
Mortgage credit (FHA)
Rural housing programs
Federal housing enterprise oversight and other
Credit liquidating accounts
Subtotal, Mortgage credit
372 Postal Service:
Payments to the Postal Service fund (On-budget)
Postal Service (Off-budget)
Subtotal, Postal Service
On-budget
Off-budget
373 Deposit insurance:
Resolution Trust Corporation Fund
Bank Insurance Fund
FSUC Resolution Fund
Savings Association Insurance Fund
National Credit Union Administration
Other mandatory
Discretionary
Subtotal, Deposit insurance
376 Other advancement of commerce:
Small and minority business assistance
Science and technology
Economic and demographic statistics
Payments to copyright owners
Regulatory agencies
163
CURRENT SERVICES ESTIMATES
CURRENT SERVICES OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
International trade and other business promotion
Credit liquidating accounts
1992
actual
Estimate
1993
1994
251
134
389
101
1995
365
24
1996
376
-45
1997
505
-82
1998
522
-91
541
-92
2,111
2,567
2,413
2,479
2,668
2,781
2,870
10,118
9,660
13,617
3,890
-10,458
-9,328
-6,891
On-budget
Off-budget
(9,459)
(659)
(8,032)
(1,627)
(12,043)
(1,574)
(2,621)
(1,269)
(-9,783)
(-675)
(-8,219)
(-1.109)
(-5,518)
(-1,373)
400 Transportation:
401 Ground transportation:
Highways
Highway safety
Mass transit
Railroads
Regulation (ICC)
Offsetting receipts
15,410
363
3,667
908
40
-42
17,613
352
3,567
779
44
-60
17,896
355
3,674
1,001
46
-62
18,025
367
3,846
1,084
47
-64
18,466
377
3,823
1,011
48
-65
18,933
381
4,077
1,035
50
-66
19,397
393
4,209
1,062
51
-67
Subtotal, Ground transportation
20,347
22,296
22,910
23,306
23,661
24,411
25,044
402 Air transportation:
Airports and airways (FAA)
Aeronautical research and technology
Payments to air carriers
8,155
1,122
35
8,779
1,221
43
8,860
1,284
39
9,235
1,322
40
9,589
1,359
41
9,919
1,398
43
10,231
1,437
43
9,313
10,044
10,184
10,598
10,990
11,359
11,712
403 Water transportation:
Marine safety and transportation
Ocean shipping
Panama Canal Commission
Offsetting receipts
3,167
369
3
-109
3,416
435
-6
-98
3,365
423
-3
-105
3,449
360
3
-103
3,537
370
3
-40
3,642
358
3,761
220
-41
-42
Subtotal, Water transportation
3,430
3,746
3,680
3,708
3,870
3,959
3,939
258
-14
332
-37
342
-37
355
-39
362
-39
373
-40
384
-41
244
296
305
317
322
333
344
33,333
36,381
37,079
37,929
38,844
40,062
41,039
3,090
3,150
60
492
183
481
3,645
200
214
419
4,338
395
165
360
4,329
516
100
387
4,288
529
16
399
4,379
543
16
374
Subtotal, Community development
3,643
3,814
4,479
5,258
5,332
5,232
5,311
452 Area and regional development:
Rural development
Economic development assistance
Indian programs
Appalachian Regional Commission
Tennessee Valley Authority
Credit liquidating accounts
Offsetting receipts
240
169
1,399
135
95
616
-340
463
239
1,499
136
138
722
-568
554
272
1,552
161
127
397
-467
612
279
1,509
195
140
323
-402
664
284
1,502
202
143
261
-361
688
274
1,533
207
149
209
-361
715
257
1,565
213
156
163
-361
2,315
2,629
2,595
2,656
2,696
2,700
2,707
183
902
90
494
2,526
228
358
1,342
157
213
803
153
195
309
402
191
317
273
185
325
208
Subtotal, Other advancement of commerce ....
Total, Commerce and housing credit
Subtotal, Air transportation
407 Other transportation:
Miscellaneous programs
Offsetting receipts
Subtotal, Other transportation
Total, Transportation
450 Community and regional development:
451 Community development:
Community development block grants
Community investment program
Pennsylvania Avenue Development Corporation .
Other
Subtotal, Area and regional development
453 Disaster relief and insurance:
Small business disaster loans
Disaster relief
Other
*
- *
164
THE BUDGET FOR FISCAL YEAR 1994
CURRENT SERVICES OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
Credit liquidating accounts
Subtotal, Disaster relief and insurance
Total, Community and regional development
500 Education, training, employment, and social services:
501 Elementary, secondary, and vocational education:
School improvement programs
Compensatory education
Special education
Impact aid
Vocational and adult education
Indian education programs
Other ....J
Subtotal, Elementary, secondary, and vocational education ..
502 Higher education:
Student financial assistance
Family education loan program
Higher education
Federal direct loan program
Other
Credit liquidating accounts (Family education loan program)
actual
1993
-294
1994
-535
1995
-370
1996
-276
1997
-229
1998
-188
-155
881
2,714
1,486
894
677
593
563
6,838
9,157
8,560
8,808
8,705
8,524
8,581
1,502
6,159
2,243
795
1,079
407
217
1,702
6,878
2,762
854
1,309
501
260
1,805
6,642
3,446
788
1,416
523
266
1,593
6,847
3,186
810
1,513
539
263
1,611
7,051
3,146
812
1,557
555
256
1,650
7,229
3,196
826
1,596
571
261
1,691
7,410
3,276
847
1,635
587
268
12,402
14,265
14,887
14,752
14,988
15,328
15,713
7,071
1,732
718
225
1,522
7,542
2,171
808
10
368
2,750
7,900
2,162
843
29
290
1,761
8,153
2,282
853
54
290
876
8,388
2,487
881
63
285
-4,172
8,623
2,660
903
66
309
-837
8,892
2,799
926
60
314
-851
11,268
13,649
12,985
12,508
7,931
11,725
12,140
503 Research and general education aids
1,996
2,135
2,175
2,214
2,269
2,332
2,400
504 Training and employment:
Training and employment services
Trade adjustment assistance
Older Americans employment
Payments to States for AFDC work programs
Federal-State employment service
Other
4,281
65
398
594
1,064
77
4,535
71
376
833
1,201
69
4,185
74
392
849
1,196
75
4,430
76
402
930
1,229
80
4,609
76
412
992
1,261
82
4,729
75
422
1,000
1,294
85
4,849
76
433
1,000
1,327
88
6,479
7,085
6,772
7,147
7,433
7,606
7,773
884
920
958
994
1,030
1,065
1,102
2,708
442
1,992
2,505
3,870
2,845
447
2,207
2,946
4,170
574
199
357
22
2,803
449
2,241
2,965
3,721
838
205
564
18
2,800
460
2,270
3,277
3,808
876
211
135
18
2,800
472
2,325
3,553
3,907
898
217
2,800
484
2,386
3,914
4,007
921
224
2,800
496
2,450
4,290
4,109
944
230
16
16
17
Subtotal, Higher education
Subtotal, Training and employment
505 Other labor services
506 Social services:
Social services block grant
Community services block grant
Rehabilitation services
Payments to States for foster care and adoption assistance ...
Children and families services programs
Aging services program
Domestic volunteer programs
Interim assistance to States for legalization
Other social services
194
501
8
Subtotal, Social services
12,221
13,767
13,805
13,856
14,189
14,751
15,335
Total, Education, training, employment, and social services
45,250
51,821
51,581
51,470
47,840
52,807
54,464
67,827
418
2,950
1,558
1,778
3,188
80,511
513
3,538
207
1,806
1,936
4,047
92,229
607
3,665
292
1,905
2,036
4,065
106,379
680
3,669
251
1,959
2,102
4,249
120,231
737
3,897
247
2,015
2,159
4,391
134,922
772
4,728
243
2,074
2,214
4,498
150,013
809
5,421
239
2,134
2,270
4,562
77,719
92,557
104,799
119,289
133,678
149,451
165,448
8,376
9,157
116
10,132
287
10,623
237
10,970
227
11,276
232
11,577
238
550 Health:
551 Health care services:
Medicaid grants
Health insurance earned income credit
Federal employees' health benefits
Coal miners retirees health benefits
Indian health
Substance abuse and mental health services
Other health care services
Subtotal, Health care services
552 Health research and training:
National Institutes of Health
DoD breast cancer and other health research
165
CURRENT SERVICES ESTIMATES
CURRENT SERVICES OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
Estimate
1992
actual
1993
1994
1995
1996
1997
1998
320
1,086
240
341
674
264
360
223
266
369
74
273
364
24
281
359
8
290
354
3
299
10,021
10,552
11,269
11,576
11,867
12,166
12,471
466
792
499
490
829
490
500
894
509
531
916
527
551
946
544
571
977
562
592
1,010
581
1,757
1,809
1,903
1,974
2,041
2,110
2,183
89,497
104,919
117,971
132,839
147,586
163,728
180,102
81,971
50,285
-13,232
91,545
56,232
-15,099
103,039
64,292
-17,352
114,804
72,995
-19,761
127,748
82,771
-21,016
139,312
93,510
-21,881
150,373
105,452
-22,742
119,024
132,678
149,979
168,038
189,503
210,940
233,083
600 Income security:
601 General retirement and disability insurance (excluding social security):
Railroad retirement
Special benefits for disabled coal miners
Pension Benefit Guaranty Corporation
Other
4,505
1,457
-654
175
4,577
1,435
-789
181
4,598
1,399
-624
196
4,587
1,358
-598
211
4,561
1,316
-569
226
4,513
1,271
-536
242
4,500
1,220
-502
260
Subtotal, General retirement and disability insurance (excluding social security)
5,483
5,405
5,569
5,559
5,533
5,490
5,478
34,001
24,491
207
-1,126
34,943
25,591
250
-1,070
36,483
26,789
230
-1,037
37,824
27,914
238
-1,024
41,286
29,029
244
-1,009
43,685
30,172
252
-998
45,482
31,320
258
-986
Clinical training
Substance abuse and mental health research
Other research and training
Subtotal, Health research and training
554 Consumer and occupational health and safety:
Food safety and inspection
Other consumer safety
Occupational safety and health
Subtotal, Consumer and occupational health and safety
Total, Health
570 Medicare:
571 Medicare:
Hospital insurance (HI)
Supplementary medical insurance (SMI)
Medicare premiums and collections
Total, Medicare
602 Federal employee retirement and disability:
Civilian retirement and disability programs
Military retirement
Federal employees workers' compensation (FECA)
Federal employees life insurance fund
Subtotal, Federal employee retirement and disability
603 Unemployment compensation
604 Housing assistance:
Subsidized housing
Renewal of Section 8 contracts
Public housing
Supportive housing program
Emergency shelter grants
Home investment partnerships program
Shelter plus care
Community partnerships against crime
HOPE grants
Rural housing assistance
Other housing assistance
Subtotal, Housing assistance
605 Food and nutrition assistance:
Food stamps
Nutrition assistance for Puerto Rico
Child nutrition and special milk
Special supplemental food program for women, infants, and children (WIC)
Other nutrition programs
Subtotal, Food and nutrition assistance
609 Other income security:
Supplemental security income (SSi)
Family support payments
Earned income tax credit (EITC)
57,572
59,714
62,465
64,953
69,550
73,111
76,075
39,466
34,853
26,850
26,257
26,253
26,529
26,906
13,642
1,510
2,301
69
71
3
368
913
13,393
3,082
2,527
85
70
276
10
210
80
419
1,030
14,146
4,112
2,537
101
58
757
43
179
220
465
1,159
14,939
5,011
2,429
135
59
1,032
71
178
375
487
979
14,887
5,850
2,482
136
53
1,178
99
183
477
501
997
14,556
6,790
2,536
162
54
1,117
128
187
574
512
1,017
14,244
7,804
2,591
189
55
1,135
158
192
642
525
1,037
18,914
21,182
23,777
25,695
26,842
27,633
28,571
21,804
996
6,146
2,545
1,131
23,503
1,043
6,810
2,840
1,093
24,518
1,091
7,373
2,942
1,066
25,119
1,133
7,948
3,008
1,034
25,837
1,133
8,540
3,082
1,050
26,528
1,133
9,115
3,159
1,068
27,212
1,133
9,729
3,238
1,085
32,622
35,288
36,989
38,240
39,643
41,003
42,398
19,445
15,104
7,345
23,444
15,768
8,396
27,086
16,020
9,506
27,700
16,500
12,907
27,739
16,928
13,515
32,097
17,441
14,114
34,286
18,020
14,869
37
166
THE BUDGET FOR FISCAL YEAR 1994
CURRENT SERVICES OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
Refugee assistance
Low income home energy assistance
Payments to states for day-care assistance
Other
Recovery of SSI overpayments
Subtotal, Other income security
Total, Income security
650 Social security:
651 Social security:
Old-age and survivors insurance (OASI).
Disability insurance (Dl)
Interfund transactions
Total, Social security.
On-budget
Off-budget
700 Veterans benefits and services:
701 Income security for veterans:
Compensation
Pensions
Burial benefits and miscellaneous assistance .
National service life insurance trust fund
All other insurance programs
Insurance program receipts
Subtotal, Income security for veterans .
702 Veterans education, training, and rehabilitation:
Readjustment benefits (Gl Bill and related programs).
Post-Vietnam era education
All-volunteer force educational assistance trust fund ...
Other
Subtotal, Veterans education, training, and rehabilitation
703 Hospital and medical care for veterans:
Medical care and hospital services
Medical administration, research, and other
Construction
Third-party medical recoveries
Fees and other charges for medical services
Subtotal, Hospital and medical care for veterans
704 Veterans housing:
Loan guaranty
Direct loans
Guaranty and indemnity ....
Credit liquidating accounts
Subtotal, Veterans housing .
705 Other veterans benefits and services:
Cemeteries, administration of veterans benefits, and other
Non-VA support programs
Subtotal, Other veterans benefits and services .
Total, Veterans benefits and services
750 Administration of justice:
751 Federal law enforcement activities:
Criminal investigations (DEA, FBI, FinCEN, OCDE)
Alcohol, tobacco, and firearms investigations (ATF)
Border enforcement activities (Customs and INS)..
Customs and INS fees
Protection activities (Secret Service)
Estimate
1982
•dual
1993
381
1,142
152
-668
1994
388
1,040
412
261
-680
1995
389
2,048
979
164
-860
1996
397
1,534
1,057
169
-905
406
1,516
1,014
173
-910
1997
1998
415
1,548
969
178
-1,065
426
1,586
986
182
-1,165
42,901
49,029
55,333
59,358
60,380
65,697
69,189
196,958
205,472
210,982
220,063
228,203
239,464
248,617
256,289
31,295
270,112
34,641
283,501
37,224
296,052
39,862
308,547
42,615
321,394
45,712
334,448
49,076
287,585
304,753
320,725
335,913
351,162
367,106
383,525
(6,166)
(281,418)
(5,953)
(298,801)
(6,547)
(314,179)
(6,871)
(329,043)
(7,034)
(344,129)
(7,211)
(359,895)
(7,437)
(376,088)
12,637
3,666
105
1,329
-18
-424
13,115
3,550
116
1,157
18
-377
14,558
3,643
125
1,201
38
-322
13,992
3,336
119
1,236
35
-309
13,297
3,074
113
1,265
51
-300
14,564
3,283
123
1,270
68
-291
14,836
3,622
124
1,293
37
-259
17,296
17,578
19,243
18,409
17,498
19,017
19,654
746
55
-16
-2
824
39
-103
1,182
39
-101
1
1,210
39
-120
1
1,269
38
-107
1
1,372
33
-100
1
1,450
32
-88
1
783
759
1,121
1,130
1,201
1,306
1,396
13,567
254
629
-216
-144
14,410
309
682
-103
-355
15,105
324
705
-50
-473
15,666
336
699
168
-530
16,205
348
701
-76
-375
16,759
360
720
-20
-456
17,333
373
740
21
-407
14,091
14,943
15,610
16,340
16,803
17,364
18,060
175
1
581
140
137
2
489
427
119
3
504
247
117
4
505
162
116
5
508
98
115
7
505
71
116
7
506
31
898
1,055
873
788
727
699
659
955
111
1,028
102
969
101
1,005
98
1,036
100
1,071
103
1,107
105
1,065
1,130
1,071
1,103
1,136
1,173
1,213
34,133
35,466
37,918
37,770
37,365
39,559
40,982
3,006
336
3,199
-1,152
497
2,991
370
3,459
-1,288
508
3,246
383
3,320
-1,372
514
3,590
398
3,489
-1,458
537
3,661
412
3,428
-722
554
3,767
426
3,518
-742
572
3,889
442
3,637
-766
591
167
CURRENT SERVICES ESTIMATES
CURRENT SERVICES OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
Other enforcement.
Subtotal, Federal law enforcement activities
752 Federal litigative and judicial activities:
Civil and criminal prosecution and representation
Federal judicial activities
Representation of indigents in civil cases
Other
Subtotal, 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:
Collection of taxes
Other fiscal operations
Subtotal, Central fiscal operations .
804 General property and records
Federal buildings fund
Property and other receipts
Records management
Other
Estimate
1992
actual
1993
1995
1994
1996
1998
1997
577
625
658
687
713
737
762
6,462
6,665
6,749
7,242
8,046
8,278
8,554
2,383
2,329
329
13
2,465
2,561
357
14
2,608
2,655
365
15
2,697
2,723
375
11
2,747
2,803
384
13
2,833
2,900
394
15
2,923
3,000
403
16
5,054
5,397
5,643
5,806
5,948
6,141
6,341
2,114
2,268
2,539
2,738
2,576
2,367
2,445
795
965
751
997
903
927
952
14,426
15,294
15,682
16,783
17,473
17,713
18,292
2,124
2,227
2,214
2,285
2,342
2,420
2,503
257
265
273
188
238
251
267
6,396
216
7,126
238
7,367
247
7,681
311
7,931
341
8,208
378
8,494
392
6,612
7,363
7,614
7,992
8,272
8,586
8,887
314
-27
226
179
1,066
-44
310
317
688
-37
212
216
1,207
-46
167
224
231
-46
172
226
250
-46
176
229
161
-46
180
235
692
1,649
1,078
1,553
583
609
531
805 Central personnel management
206
162
171
192
198
205
213
806 General purpose fiscal assistance:
Payments and loans to the District of Columbia
Payments to States and counties from Forest Service receipts
Payments to States from receipts under the Mineral Leasing Act
Payments to States and counties from Federal land management activities
Payments in lieu of taxes
Payments to territories and Puerto Rico
Other
367
338
432
145
101
205
278
674
358
431
108
104
223
279
685
388
518
56
107
230
275
703
345
507
56
110
239
270
720
315
529
57
112
244
737
314
548
60
115
251
263
757
325
565
61
118
256
258
1,865
2,177
2,259
2,228
2,242
2,288
2,339
160
109
792
500
148
74
161
114
609
500
7
170
142
106
599
100
143
106
599
146
109
599
130
112
594
132
113
594
167
23
158
185
164
4
170
176
1,782
1,561
1,113
1,029
1,203
1,009
1,016
-524
-677
-691
-700
-710
-710
-710
12,945
14,701
14,010
14,846
14,388
14,673
15,052
292,330
294,583
311,513
334,038
358,518
383,579
411,745
-22,383
-9,017
-11,770
-23,653
-9,630
-12,194
-25,014
-10,534
-12,252
-26,144
-11,676
-11,608
-27,393
-12,966
-10,308
-28,427
-14,338
-8,337
-29,435
-15,972
-5,949
Subtotal, General property and records management
Subtotal, General purpose fiscal assistance .
808 Other general government:
Compact of free association
Territories
Treasury claims
Civil liberties public education fund .
Presidential election campaign fund
Other
Subtotal, Other general government
809 Deductions for offsetting receipts .
Total, General government
900 Net interest:
901 Interest on the public debt
902 Interest received by on-budget trust funds:
Civil Service retirement and disability
Military retirement
168
THE BUDGET FOR FISCAL YEAR 1994
CURRENT SERVICES OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
Other on-budget trust fund interest
1992
actual
Estimate
1993
1994
1995
1996
1997
1998
-11,023
-9,357
-8,713
-8,755
-8,821
-8,974
-9,184
-54,193
-54,834
-56,513
-58,183
-59,488
-60,076
-60,540
903 interest received by off-budget trust funds
-23,637
-26,967
-29,542
-32,859
-36,714
-41,423
-46,677
908 Other interest:
Interest on loans to Federal Financing Bank
Interest on refunds of tax collections
Payment to the Resolution Funding Corporation
Interest paid to loan guarantee financing accounts
Interest received from direct loan financing accounts
Interest on deposits in tax and loan accounts
Other
-14,716
3,253
2,328
97
-97
-804
-5,123
-11,490
2,595
2,328
287
-586
-564
-3,891
-10,545
2,720
2,328
551
-1,023
-730
-4,710
-9,774
2,869
2,328
750
-1,460
-890
-3,756
-8,543
3,032
2,328
907
-1,894
-3,576
-7,226
3,144
2,328
1,037
-2,332
-1,030
-3,453
-6,302
3,251
2,328
1,178
-2,807
-1,050
-3,303
Subtotal, Other interest
-15,061
-11,321
-11,409
-9,934
-8,741
-7,531
-6,705
Total, Net interest
199,439
201,461
214,049
233,063
253,575
274,549
297,823
(223,076)
(-23,637)
(228,428)
(-26,967)
(243,591)
(-29,542)
(265,922)
(-32,859)
(290,289)
(-36,714)
(315,972)
(-41,423)
(344,500)
(-46,677)
-30,680
-28,494
-28,473
-29,500
-30,082
-31,234
-32,727
-6,101
-6,373
-6,731
-7,125
-7,601
-8,128
-8,722
Subtotal, Interest received by on-budget trust funds
On-budget
Off-budget
950 Undistributed offsetting receipts:
951 Employer share, employee retirement (on-budget)
952 Employer share, employee retirement (off-budget)
953 Rents and royalties on the Outer Continental Shelf
Total, Undistributed offsetting receipts
On-budget
Off-budget
Total
On-budget
Off-budget
*$500 thousand or less.
-
QQC
990
-2,498
-2,299
-2,758
-2,352
-2,383
-2,396
-2,449
-39,280
-37,165
-37,962
-38,977
-40,066
-41,758
-43,898
(-33,179)
(-6,101)
(-30,793)
(-6,373)
(-31,231)
(-6,731)
(-31,852)
(-7,125)
(-32,465)
(-7,601)
(-33,630)
(-8,128)
(-35,176)
(-8,722)
1,380,860
1,458,799
1,516,806
1,585,076
1,648,504
1,744,817
1,841,395
(1,128,521)
(252,339)
(1,191,711)
(267,088)
(1,237,326)
(279,480)
(1,294,748)
(290,328)
(1,349,366)
(299,139)
(1,435,582)
(309,235)
(1,522,079)
(319,316)
@FedFRASER