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BUDGET OF THE
UNITED STATES
GOVERNMENT
ANALYTICAL
PERSPECTIVES
Fiscal Year 1995
THE BUDGET DOCUMENTS
Budget o f the United States Government, Fiscal
Year 1995 contains the Budget Message of the Presi
dent and presents the President’s budget proposals.
in the budget documents are consistent with the con
cepts and presentation used in the 1995 Budget, so
the data series are comparable over time.
Analytical Perspectives, Budget o f the United
States Government, Fiscal Year 1995 contains analy
ses that are designed to highlight specified program
areas or provide other significant presentations of budg
et data that place the budget in perspective.
It includes economic and accounting analyses, such
as a balance sheet-type presentation; information on
Federal receipts and collections, including user fees and
tax expenditures; analyses of Federal spending; detailed
information on Federal borrowing and debt; the Budget
Enforcement Act preview report; current services esti
mates; and other technical presentation, such as the
national income and product accounts.
It also includes information on management improve
ments; the budget system and concepts; a listing of
the Federal programs by agency and account; and a
glossary of budget terms.
Budget o f the United States Government, Fiscal
Year 1995—Appendix contains detailed information
on the various appropriations and funds that constitute
the budget. The Appendix contains more detailed infor
mation than any of the other budget documents. It
includes for each agency: the proposed text of appro
priation language, budget schedules for each account,
new legislative proposals, explanations of the work to
be performed and the funds needed, and proposed gen
eral provisions applicable to the appropriations of entire
agencies or group of agencies. Supplemental and rescis
sion proposals for the current year are presented sepa
rately. Information is also provided on certain activities
whose outlays are not part of the budget totals.
Historical Tables, Budget o f the United States
Government, Fiscal Year 1995 provides data on bud
get receipts, outlays, surpluses or deficits, and Federal
debt covering an extended time period—in many cases
beginning in fiscal year 1940 and ending in fiscal year
1999. These are much longer time periods than those
covered by similar tables in other budget documents.
The data in this volume and all other historical data
Automated Sources o f Budget Information. Cop
ies of the budget number data in electronic form may
be obtained from the U.S. Department of Commerce,
National Technical Information Service, Springfield, VA
22161, telephone (703) 487-4650. Refer to stock number
PB94-500030. Historical budget information is avail
able on compact disk (CD) from the U.S. Department
of Commerce, Office of Business Analysis, HCHB Room
4885, Washington, D.C. 20230, telephone (202)
482-1986. Refer to the National Economic, Social, and
Environmental Data Bank (NESE-DB). There is a
charge for both of these items.
GENERAL NOTES
1. All years referred to are fiscal years, unless otherwise noted.
2. Detail in this document may not add to the totals due to rounding.
U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON 1994
For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402
ISBN 0 -1 6-04 303 3-X
TABLE OF CONTENTS
Page
Economic and Accounting Analyses
1. Economic Assumptions ....................................................................................
1
2. Stewardship: Toward a Federal Balance Sheet...............................................
9
3. Generational Accounting .................................................................................
21
Federal Receipts and Collections
4. Federal Receipts ...............................................................................................
35
5. User Fees and Other Collections .....................................................................
47
6. Tax Expenditures .............................................................................................
53
Federal Spending
7. Federal Spending by Function, Subfunction, and Major Program..................
81
Special Analyses and Presentations
8. Federal Investment Outlays and Capital Budgeting ......................................
107
9. Research and Development Expenditures.......................................................
131
10. Underwriting Federal Credit and Insurance ...................................................
133
11. Aid to State and Local Governments...............................................................
167
12. Federal Employment........................................................................................
177
Federal Borrowing and Debt
13. Federal Borrowing and Debt ............................................................................
185
Budget Enforcement Act Preview Report
14. Preview Report .................................................................................................
197
15. Review of Direct Spending and Receipts .........................................................
203
16. Deficit Reduction Fund ....................................................................................
209
Current Service Estimates
17. Current Services Estimates..............................................................................
213
i
Page
Other Technical Presentations
18. Trust Funds and Federal Funds ......................................................................
245
19. National Income and Product Accounts ..........................................................
257
20. Comparison of Actual to Estimated Totals for 1993 .......................................
261
21. Relationship of Budget Authority to Outlays ..................................................
267
22. Off-Budget Federal Entities .............................................................................
269
23. Crosscutting Categories ....................................................................................
271
High Risk Areas
24. Progress Report: Correcting High Risk Areas .................................................
275
Federal Programs by Agency and Account
25. Federal Programs by Agency and Account.......................................................
301
Budget System and Concepts and Glossary
26. Budget System and Concepts and Glossary.....................................................
421
List of Charts and Tables ...........................................................................................
435
ii
ECONOMIC AND ACCOUNTING ANALYSES
1. ECONOMIC ASSUMPTIONS
Introduction
A year ago, the two-year old recovery from the 199091 recession was still very fragile; now it is secure.
This transformation was the result of a series of correc
tive actions taken by the private and public sectors.
Households reduced their share of disposable income
needed to service outstanding debt. Businesses im
proved their balance sheets by relying on equity rather
than debt financing. In the construction industry, the
overhang of excess office space was reduced substan
tially.
But most importantly, the Federal Government seri
ously addressed its own deficit problem. Congress en
acted the Administration's deficit reduction plan, com
mitted itself to follow with further cuts in health care
costs and refocused spending priorities on productivityenhancing investment.
The return to fiscal responsibility contributed to a
fall of one percentage point in long-term interest rates
between the election in November 1992 and the end
of 1993. Even though they increased slightly in the
closing months of the year, long-term interest rates in
the fourth quarter were the lowest in over two decades.
Falling rates stimulated key interest-sensitive sectors,
pushed the stock market to record highs and reduced
the debt servicing costs of governments, households and
businesses.
By the second half of 1993, households and busi
nesses were willing and able to undertake the invest
ment spending that produces self-sustaining growth.
Business and consumer confidence improved noticeably
as sales picked up, orders increased, payrolls expanded
and incomes rose. Even though the pace of economic
activity quickened during 1993 and the unemployment
rate declined steadily, inflation remained well under
control. Thus, as 1994 begins, the essential elements
for sustained, noninflationary growth are in place.
Signs of a Secure Expansion
The favorable trends evident in product and labor
markets last year suggest that the economy in 1994—
and the five years beyond—will be healthier than it
has been during the past half dozen years.
• Real GDP growth was faster in each successive
quarter of 1993, reaching an estimated 4-1/2 per
cent annual rate in the final quarter. The accel
eration was achieved through faster growth of
spending on the investment components of GDP
(consumer durables, housing and business equip
ment) rather than inventory accumulation or for
eign trade.
• To meet growing demand, businesses both length
ened the workweek and increased their hiring. In
the fourth quarter, the manufacturing workweek
set a record high for the post-World War II period;
factory overtime reached the highest level since
record keeping began in 1956; and factories in
creased their payrolls by 40,000 following seven
consecutive months of reductions. In addition to
the manufacturing sector, the construction indus
try added significantly to its payrolls in the fourth
quarter and private sector service jobs continued
to grow.
• The unemployment rate in December was 6.4 per
cent, down from 7.3 percent a year earlier. All
major demographic groups experienced substantial
unemployment rate declines during 1993.
• The Consumer Price Index (CPI) rose just 2.7 per
cent during 1993; the producer price index, a mere
0.2 percent. The reduction of inflation was broadly
based; even the medical component of the CPI
slowed last year. In addition, energy prices fell
near the end of 1993. Faster growth of productiv
ity in the second half of the year helped restrain
inflation by providing an offset to rising labor com
pensation.
There were important restraints on growth during
1993, some of which will continue during 1994, and
perhaps even beyond.
• On the domestic side, the shift from defense to
nondefense priorities in the post-Cold War world
has caused a sharp retrenchment by defense-related industries. During 1993, industries with 50 per
cent or more of their output geared to defense
reduced their payrolls by 140,000, about the same
as in 1992. At the state and local government
level, fiscal pressures have curtailed hiring and
spending, although these pressures might ease as
a growing economy boosts tax revenues. In the
construction sector, investment in new office build
ings and multifamily rental housing was de
pressed in 1993 by the high vacancy rates of re
cent years. These rates, however, came down dur
ing 1993, suggesting a turnaround may be in the
offing.
• Abroad, recessions in Europe and Japan contrib
uted to a widening of the U.S. trade deficit last
year, and a further deterioration is probable this
year. During 1993, industries with 20 percent or
more of their employment directly or indirectly
tied to exports lost 120,000 jobs, considerably less
than the 230,000 of 1992.
• Finally, the same competition from foreign and
domestic firms that helps hold inflation in check
will maintain pressure on U.S. companies to con
trol costs by downsizing their workforces wherever
feasible.
3
4
ANALYTICAL PERSPECTIVES
In the view of the Administration, and most private
sector forecasters, however, the growth-promoting
trends in the economy far outweigh the restraining
ones. If the Congress delivers on its commitment to
fiscal responsibility and the Federal Reserve continues
to provide sufficient growth of the monetary aggregates
to sustain the expansion, the economic future will be
brighter than it has been in many years.
Economic Assumptions
The Administration’s economic assumptions devel
oped in early December 1993 project a continuation
of the trends evident in 1993: real economic growth
sufficiently strong to lower unemployment gradually
without reigniting inflation. (See Table 1-1 for details.)
• Between the fourth quarter of 1993 and the fourth
quarter of 1994, real GDP is expected to increase
3.0 percent. From 1995 through 1999, the growth
rate slows progressively to 2.5 percent, close to
the estimate of potential growth.
• The unemployment rate is expected to decline 0.3
percentage point in 1994. Further decreases of
about this magnitude are projected each year
through 1998, at which time the unemployment
TABLE 1-1.
rate is projected to be close to the noninflationary
unemployment rate.1
• Inflation, as measured by the Consumer Price
Index, is projected to be 3.0 percent during 1994,
compared with 2.7 percent during 1993. As the
slack in labor and product markets is taken up,
the inflation rate is assumed to edge up slightly,
leveling off at 3.4 percent per year during
1997-1999.
• Short-term interest rates are projected to rise
moderately from their exceptionally low current
levels as the economy expands, while long-term
rates are projected to remain unchanged at their
levels at the end of 1993.
Data that became available after these assumptions
were completed suggest that real growth in the fourth
quarter of 1993 was stronger than anticipated, while
unemployment, inflation and interest rates were lower.
Economic assumptions updated for these recent devel
opments would raise the level of both real and nominal
GDP by about 0.2 percent each year 1994-1999, but
1 Because of a major revision of the monthly labor force questionnaire beginning in January
1994, there is likely to be a noticeable break in the official unemployment rate beginning
with 1994. Table 1-1 shows an unemployment rate projection consistent with the historical
data through 1993. The unemployment rate based on the revised questionnaire might be
about one-half percentage point higher than this.
ECONOMIC ASSUMPTIONS i
(Calendar years; dollar amounts in billions)
Actual
1992
Projections
1993
1994
1995
1996
1997
1998
1999
6,038
4,986
121.1
6,371
5,126
124.3
6,736
5,284
127.5
7,118
5,433
131.0
7,522
5,579
134.8
7,950
5,725
138.9
8,400
5,873
143.0
8,870
6,021
147.3
6.7
3.9
2.8
5.0
2.3
2.6
5.8
3.0
2.7
5.6
2.7
2.8
5.7
2.7
2.9
5.7
2.6
3.0
5.7
2.6
3.0
5.6
2.5
3.0
5.5
2.6
2.9
5.5
2.8
2.6
5.7
3.1
2.6
5.7
2.8
2.8
5.7
2.7
2.9
5.7
2.6
3.0
5.7
2.6
3.0
5.6
2.5
3.0
Incomes, billions of current dollars:
Personal income.....................................................................................................................
Wages and salaries 2 ..............................................................................................................
Corporate profits before ta x ....................................................................................................
5,145
2,973
395
5,385
3,083
447
5,691
3,261
508
6,016
3,442
531
6,365
3,636
555
6,746
3,849
573
7,148
4,071
595
7,551
4,293
631
Consumer Price Index (all urban): 3
Level (1982-84*100), annual average ..................................................................................
Percent change, fourth quarter over fourth quarter................................................................
Percent change, year over year.............................................................................................
140.3
3.1
3.0
144.5
2.8
3.0
148.6
3.0
2.8
153.3
3.2
3.2
158.3
3.3
3.3
163.6
3.4
3.3
169.2
3.4
3.4
174.9
3.4
3.4
Unemployment rate, civilian, percent:4
Fourth quarter level.................................................................................................................
Annual average.......................................................................................................................
Federal pay raises, January, percent5 ..........................................................................................
7.3
7.4
4.2
6.7
6.8
3.7
6.4
6.5
6.0
6.1
1.6
5.8
5.9
2.2
5.6
5.7
2.5
5.5
5.5
2.5
5.5
5.5
2.5
Interest rates, percent:
91-day Treasury bills6 ............................................................................................................
10-year Treasury notes...........................................................................................................
3.5
7.0
3.0
5.9
3.4
5.8
3.8
5.8
4.1
5.8
4.4
5.8
4.4
5.8
4.4
5.8
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) .........................................................................................
1 Based on information available as of December 1993.
2 Pre-health care reform. Reform is assumed to increase wages and salaries by $23 biion in 1997, $35 bfllion in 1998 and $47 billion in 1999.
3 CPI for all urban consumers.
«Pre-1994 basis. The introduction of a new labor force questionnaire in January 1994 may result in higher unemployment rates than these shown in the table,
s In January 1994 there was a 2.2% pay raise for military personnel.
•Average rate (bank discount basis) on new issues within period.
5
1. ECONOMIC ASSUMPTIONS
TABLE 1-2. COMPARISON OF ECONOMIC ASSUMPTIONS IN THE 1994 AND 1995 BUDGETS
(Calendar years; dollar amounts in billions)
1993
Percent increase:
Nominal GDP:
1994 budget assumptions 1 .................
1995 budget assumptions....................
Real GDP (percent change): 2
1994 budget assumptions....................
1995 budget assumptions....................
GDP deflator (percent change): 2
1994 budget assumptions....................
1995 budget assumptions....................
Consumer Price Index (percent change):2
1994 budget assumptions....................
1995 budget assumptions....................
Civilian unemployment rate (percent):3
1994 budget assumptions....................
1995 budget assumptions....................
91-day Treasury bill rate (percent):
1994 budget assumptions....................
1995 budget assumptions....................
10-year Treasury note rate (percent):
1994 budget assumptions....................
1995 budget assumptions....................
1994
6,348
6,371
6,736
7,046
7,118
7,397
7,522
7,740
7,950
8,070
8,400
2.3
3.0
3.0
2.8
2.7
2.6
2.7
2.2
2.6
1.8
2.6
2.5
2.6
2.4
2.7
2.3
2.8
2.2
2.9
2.2
3.0
2.2
3.0
2.8
2.8
2.7
3.0
2.7
3.2
2.7
3.3
2.7
3.4
2.7
3.4
7.1
6.8
6.6
6.5
6.2
6.1
6.0
5.9
5.8
5.7
5.7
5.5
3.2
3.0
3.7
3.4
4.3
3.8
4.7
4.1
4.8
4.4
4.9
4.4
6.7
5.9
6.6
5.8
6.6
5.8
6.5
5.8
6.5
5.8
6.4
5.8
2.8
1 Adjusted for August 1993 revisions.
2 Fourth quarter to fourth quarter.
3Pre-1994 basis.
would not change the growth rates shown in Table
1-1. The update would also reduce the unemployment
rate by one or two tenths in 1994-1997 and lower the
ten-year Treasury note by one-tenth percentage point
through 1999. These revisions are included in the Ad
ministration assumptions published in the Council of
Economic Advisors, Economic Report of the President,
1994. The changes would reduce the deficits for
1995-1999 by $5-6 billion a year compared to the defi
cits estimated using Table 1-1 assumptions.
The economic assumptions presume enactment of the
Administration’s budget proposals. The Administra
tion’s health care reform proposal was also taken into
account in framing them. While there are likely to be
important sectoral effects from health care reform,
these are expected to be largely offsetting at the level
of the economy as a whole. Thus, the projections of
nominal and real GDP, the GDP implicit price deflator,
the overall CPI, unemployment and interest rates
shown in Table 1-1 are assumed to be unaffected.2
Impact of Changes in Economic Assumptions
The budget for 1994 was based on economic assump
tions identical to those used by the Congressional Budg
et Office (CBO) at the time. In contrast, the 1995 budg
et is based on the Administration’s own forecast and
assumptions. While the rate of real growth projected
for the next few years is similar, the 1995 budget as
sumptions show somewhat stronger real growth in the
2The medical component of the CPI is expected to rise more slowly as a result of health
care reform. By 1999, when the reform is fully implemented, medical inflation is assumed
to be one percentage point higher than the overall CPI, compared with 2 percentage points
higher in a baseline that excludes health care reform. This difference is assumed to be
offset by differences in inflation outside the medical sector so that the overall rate of
inflation is the same for baseline and policy estimates. See Chapter 17, "Current Services
Estimates."
out-years. They also show slightly higher inflation, and
lower interest rates (the latter particularly reflecting
the experience of this past year).
The changes in economic assumptions have signifi
cant effects on the budget outlook. Higher real growth
and inflation rates both contribute to raising estimates
of receipts. The higher inflation, however, also increases
estimates of outlays for programs such as social secu
rity, the benefits for which rise automatically each year
due to cost-of-living adjustments. Lower interest rates
reduce estimated outlays for payment of interest on
the public debt. The changes in economic assumptions
since last year’s budget lower the 1994 deficit by $5.5
billion while the 1998 deficit is reduced by $40.6 billion
(Table 1-3).
Omnibus Trade and Competitiveness Act of 1988
As required by the Omnibus Trade and Competitive
ness Act of 1988, Table 1-4 shows estimates for eco
nomic variables related to saving, investment, and for
eign trade consistent with the economic assumptions.
The merchandise trade and current account balances
deteriorated in fiscal year 1993, as growth in U.S. ex
ports was restrained by recessions in Europe and
Japan. The continued faster rate of growth in the Unit
ed States than abroad is likely to further widen our
external deficits.
Net private investment in the United States is pro
jected to increase substantially as the economy expands.
The sources of finance for the increased private invest
ment are the substantial decline in the Federal deficit
plus the larger inflow of foreign capital. Private domes
tic saving is expected to change little through 1995.
The Act requires information on the amount of bor
rowing by the Federal Government in private credit
6
ANALYTICAL PERSPECTIVES
TABLE 1-3.
EFFECTS ON THE BUDGET OF CHANGE IN ECONOMIC ASSUMPTIONS SINCE LAST YEAR
(In billions of dollars)
1994
1995
1996
1997
1998
Budget totals under 1994 budget economic assumptions and 1995 budget
policies:
Receipts.............................................................................................................
Outlays...............................................................................................................
1,249.5
1,489.7
1,352.0
1,529.4
1,425.4
1,609.3
1.492.1
1.701.1
1.555.1
1.786.2
Deficit (-) ..................................................................................................
-240.2
-177.4
-183.9
-209.0
-231.1
-0.4
+1.8
+1.9
+13.0
+31.8
-0.7
-0.8
-4.4
+0.7
-0.9
-9.8
-0.5
+3.8
-0.9
-14.2
-1.1
+9.0
0.0
-16.5
-2.0
+15.6
-2.1
-18.5
-3.7
Changes due to economic assumptions:
Receipts.............................................................................................................
Outlays:
Inflation, mandatory programs......................................................................
Unemployment..............................................................................................
Interest rates.................................................................................................
Interest on changes in borrowing .................................................................
_ *
Total, outlays............................................................................................
-5.9
-10.5
-12.4
-9.6
-8.7
Decrease in deficit....................................................................................
5.5
12.3
14.3
22.6
40.6
Budget totals under 1995 budget economic assumptions and policies:
Receipts.............................................................................................................
Outlays...............................................................................................................
1,249.1
1,483.8
1.353.8
1.518.9
1,427.3
1,596.9
1,505.1
1,691.4
1,586.9
1,777.4
Deficit ( - ) ..................................................................................................
-234.8
-165.1
-169.6
-186.4
-190.5
TABLE 1-4. SAVING, INVESTMENT, AND TRADE BALANCE
(Fiscal years; in billions of dollars)
1993 actual
Current account...............................................................................
Merchandise trade balance..............................................................
Net foreign investment....................................................................
Net domestic saving (excluding Federal saving)1 ...........................
Net private domestic investment......................................................
-101
-123
-89
332
203
1995 estimate
-145 to -105
-175 to -135
-140 to -100
325 to 365
280 to 320
1 Defined for purposes of Pubfic Law 100-418 as the sum of private saving and the surpluses of State and local governments. All series
are based on National Income and Product Accounts except for the current account balance.
stamps) are higher. As a result, the deficit is higher
than it would be at full employment. The portion of
the deficit that can be traced to such factors is called
the cyclical deficit. The remainder, the portion that
would remain at full employment (consistent with a
5.5 percent unemployment rate), is called the structural
deficit.
Changes in the structural deficit give a better picture
of the impact of budget policy on the economy than
the unadjusted deficit affords. The structural deficit
also gives a clearer picture of the deficit problem that
fiscal policy must address, since this part of the deficit
will persist even when the economy has fully recovered,
unless policy changes.
markets. This is presented in Chapter 13, "Federal Bor
rowing and Debt.”
It is difficult to gauge with precision the effect of
Federal Government borrowing from the public on in
terest rates and exchange rates, as required by the
Act. Both are influenced by many factors besides Gov
ernment borrowing in a complicated process involving
supply and demand for credit and perceptions of fiscal
and monetary policy here and abroad.
Structural vs. Cyclical Deficit
When there is slack in the economy, receipts are
lower than they would be if resources were fully em
ployed, and outlays for unemployment-sensitive pro
grams (such as unemployment compensation and food
TABLE 1-5. ADJUSTED STRUCTURAL DEFICIT
(In billions of dollars)
1992
1993
1994
1995
1996
1997
1998
1999
Actual deficit (unadjusted)..........................................
Cyclical component................................................
290.4
61.8
254.7
52.0
234.8
42.4
165.1
30.3
169.6
21.1
186.4
15.1
190.5
7.6
181.1
4.0
Structural deficit..........................................................
Deposit insurance1 ................................................
228.6
2.4
202.6
28.0
192.4
3.3
134.9
11.1
148.5
11.3
171.3
6.1
182.9
4.9
177.1
3.3
Adjusted structural deficit...........................................
231.0
230.6
195.7
146.0
159.8
177.4
187.8
180.4
1 For
1992 includes allied contributions for Desert Storm.
1. ECONOMIC ASSUMPTIONS
In recent years, outlays for deposit insurance (mainly
for resolving insolvencies in the savings and loan indus
try) 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. Furthermore,
these are in the nature of one-time expenditures that
will not be repeated. Indeed, future outlays for this
purpose are expected to be negative as the Government
sells the assets acquired in shutting down insolvent
S&Ls. It has therefore become customary to remove
deposit insurance outlays as well as the cyclical compo
nent from the actual deficit to compute the adjusted
structural deficit. This is shown in Table 1-5.
The downward trend of the adjusted structural deficit
over the next several years measures real progress in
correcting the fiscal imbalance inherited by this Admin
istration. Some period of restrictive policy was unavoid
able if the actual deficit was to be reduced from the
unsustainably high levels of the past decade. The de
cline in the level of the structural deficit is neither
so pronounced nor abrupt as to pose a threat to sus
tained moderate economic growth. In particular, it is
consistent with the economic assumptions underlying
the budget, presented above.
Sensitivity of the Budget to Economic
Assumptions
Both receipts and outlays are affected by changes
in economic conditions. This sensitivity seriously com
plicates budget planning because errors in economic as
sumptions lead to errors in the budget projections. It
is therefore useful to examine the implications of alter
native economic 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 esti
mating 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 usu
ally 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
growth of real GDP are mainly due to changes in the
rates of growth of productivity and labor supply, and
are not associated with changes in the average rate
of unemployment. Inflation and interest rates are also
linked: a higher expected rate of inflation tends to in
crease interest rates, while lower expected inflation re
duces 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 year 1994 and the
unemployment rate rises by one-half percentage point,
7
the 1994 deficit would increase by $7.5 billion. Receipts
in 1994 would be lower by $6.6 billion, and outlays
would be higher by $1.0 billion, primarily for unemployment-sensitive programs. If growth resumes at its pre
viously assumed rate in 1995, the receipts shortfall
would nonetheless grow further that year, to $14.4 bil
lion, and outlays would be increased by $5.0 billion,
raising the 1995 deficit by $19.4 billion relative to the
base case. The budget effects would continue to grow
slightly in later years. The permanent change in the
deficit is due to the permanent reduction in the level
of real (and nominal) GDP and taxable incomes and
the permanent increase in unemployment relative to
the baseline economic path, even though the rate of
real growth in calendar year 1995 and beyond is the
same.
The budget effects grow much larger if the real
growth rate is assumed to be one percentage point less
in each year, 1994-1999, with the unemployment rate
continuing to rise by one-half percentage point, relative
to its base path, in each year. On these assumptions,
the levels of real and nominal GDP would be below
the base case by a cumulatively growing percentage.
The deficit would be $146.2 billion higher than under
the base case by 1999.
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 $121.5 billion by 1999.
Joint changes in interest rates and inflation have
a smaller effect on the deficit than equal percentage
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 inter
est rates during calendar year 1994 only. In subsequent
years, the price level and nominal GDP would be one
percent higher than in the base case, but interest rates
are assumed to return to their base levels. Outlays
for 1994 rise by $5.7 billion and receipts by $7.3 billion,
for a decrease of $1.6 billion in the 1994 deficit. In
1995, outlays would be above the base by $13.3 billion,
due in part to lagged cost-of-living adjustments; receipts
would rise $15.4 billion above the base, however, result
ing in a $2.0 billion decrease in the deficit. In subse
quent 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 cumula
tively growing percentage above their base levels. In
this case, the effects on receipts and outlays mount
steadily in successive years, adding $75.0 billion to out
lays and $98.7 billion to receipts in 1999, which reduces
the 1999 deficit by $23.6 billion.
The table also shows the interest rate and the infla
tion effects separately, and rules of thumb for the added
8
ANALYTICAL PERSPECTIVES
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 percent
age point lower rate of inflation or higher real growth
would have about the same magnitude as the effects
shown in the table, but with the opposite sign.
These rules of thumb are computed while holding
the income share composition of GDP constant; i.e.,
while assuming the same fractions of GDP go to wages
and profits in all cases. Because different income com
ponents are subject to different taxes and tax rates,
estimates of total receipts can be affected significantly
by changing income shares. These relationships, how
ever, have proved to be too complex to reduce to simple
rules.
TABLE 1-6. SENSITIVITY OF THE BUDGET TO ECONOMIC ASSUMPTIONS
(In billions of dollars)
Budget effect
1995
1994
1996
1997
1998
1999
Real Growth and Employment
Effects of 1 percent lower real GDP growth in calendar year 1994 only, including higher unemployment:1
Receipts............................................................................................................................................................
Outlays.............................................................................................................................................................
-6.6
1.0
-14.4
5.0
-16.8
6.5
-17.3
8.1
-18.0
9.9
-18.8
11.6
7.5
19.4
23.3
25.4
27.9
30.3
-6.6
1.0
-21.3
6.9
-39.0
14.1
-58.0
21.9
-78.5
34.0
-100.8
45.3
7.5
28.2
53.1
80.0
112.5
146.2
-6.6
0.1
-21.6
0.8
-40.1
2.4
-60.3
5.3
-82.4
9.4
-106.6
14.9
6.7
22.4
42.5
65.5
91.7
121.5
7.3
5.7
15.4
13.3
16.0
10.9
15.4
9.4
16.2
9.2
17.0
9.4
Deficit increase ( + ) .......................................................................................................................................
Effects of a sustained 1 percentage point higher rate of inflation and interest rates during 1994-1999:
Receipts............................................................................................................................................................
-1.6
-2.0
-5.2
-6.0
-7.0
-7.6
7.3
5.8
23.2
19.1
40.6
30.6
58.2
42.4
77.5
55.5
98.7
75.0
Deficit increase ( + ) .......................................................................................................................................
Effects of a sustained 1 percentage point higher interest rate during 1994-1999 (no inflation change):
Receipts............................................................................................................................................................
-1.6
-4.1
-10.0
-15.8
-22.0
-23.6
0.7
5.3
1.8
15.2
2.4
21.3
2.7
26.7
2.9
31.9
3.2
44.3
Deficit increase (+) .......................................................................................................................................
Effects of a sustained 1 percentage point higher rate of inflation during 1994-1999 (no interest rate change):
Receipts............................................................................................................................................................
Outlays.............................................................................................................................................................
4.6
13.4
18.9
24.0
29.0
41.2
6.6
0.5
21.4
3.9
38.2
9.3
55.5
15.7
74.6
23.6
95.5
30.7
Deficit increase (+) .......................................................................................................................................
Interest Cost of Higher Federal Borrowing
-6.2
-17.5
-28.9
-39.8
-50.9
-64.8
Effect of $100 billion additional borrowing during 1994 ...................................................................................
2.2
4.6
5.0
5.5
6.0
6.3
Deficit increase ( + ) .......................................................................................................................................
Effects of a sustained 1 percent lower annual real GDP growth rate during 1994-1999, including higher un
employment: 1
Receipts............................................................................................................................................................
Deficit increase ( + ) .......................................................................................................................................
Effects of a sustained 1 percent lower annual real GDP growth rate during 1994-1999, with no change in un
employment:
Receipts............................................................................................................................................................
Deficit increase ( + ) ......................................................................................................................................
Inflation and Interest Rates
Effects of 1 percentage point higher rate of inflation and interest rates during calendar year 1994 only:
Receipts............................................................................................................................................................
iThe unemployment rale is assumed to be 0.5 percentage point higher per 1.0 percent shortfal in the level of real GOP.
2. STEWARDSHIP: TOWARD A FEDERAL BALANCE SHEET
Introduction
This chapter presents a framework for describing the
financial condition of the Federal Government and its
performance as a steward of publicly-owned resources.
Although the data are similar in some ways, there are
basic conceptual differences that distinguish the tables
below from a business balance sheet. The Government's
sovereign powers have no counterparts in the business
world, and its resources and responsibilities extend be
yond the types of assets and liabilities found on a con
ventional balance sheet. For this reason, it is not pos
sible to judge how well the Government is discharging
its stewardship obligations simply from an examination
of its own books. A review of the Government’s con
tribution to national well-being and security is also
needed.
The differences between Government and business
accounting, together with serious limitations in the
available data, argue for caution in interpreting the
material presented below. Conclusions based on this
presentation are necessarily tentative and subject to
future revision as the estimating methods are improved
and better data become available. The presentation con
sists of three components:
• The first, summarized in Table 2-1, shows Federal
assets and Federal liabilities resulting from past
Government operations. In this table, what the
Government owns and what it owes are defined
relatively narrowly. This table corresponds most
closely to a corporate balance sheet.
• The second component, as reflected in Chart 2-2,
consists of Federal budget projections. The projec
tions indicate possible future paths for the balance
between Federal resources and responsibilities
and show how policy changes can affect that bal
ance. In this section, Table 2-2 also shows the
actuarial balances for the major social insurance
programs and how they have changed in the past
year.
• The final component consists of various ways in
which Federal activities contribute to social and
economic well-being. Table 2-3 shows how Federal
investments have contributed to national wealth.
In a future development, this framework could be
expanded to include tables showing Government
performance measures including broad indicators
of social and economic well-being.
The Federal Government does not have a single bot
tom line that would reveal its financial status in a
glance, but the tables and charts shown here can con
tribute to a balanced view of that condition and the
Government's stewardship of its resources. The Govern
ment's liabilities exceed its owned assets and that gap
has widened markedly over the last decade or more.
The President’s economic plan should narrow the gap
as a result of deficit reduction, national health reform,
and expanded Federal investments.
Relationship with FASAB Objectives
The framework presented here meets one of the four
objectives1 of Federal financial reporting recommended
by the Federal Accounting Standards Advisory Board
and adopted for use by the Federal Government in Sep
tember 1993. This Stewardship Objective says:
Federal financial reporting should assist report users in
assessing the impact on the country of the Government’s
operations and investments for the period and how, as a
result, the Government’s and the Nation’s financial condi
tions have changed and may change in the future. Federal
financial reporting should provide information that helps the
reader to determine:
3a. Whether the Government’s financial position improved
or deteriorated over the period.
3b. Whether future budgetary resources will likely be suffi
cient to sustain public services and to meet obligations as
they come due.
3c. Whether Government operations have contributed to
the Nation’s current and future well-being.
The Board is in the process of developing guidance
as to the specific displays that would meet this Objec
tive and the accounting standards for use in such state
ments and schedules. This experimental presentation
explores one possible approach for meeting the Objec
tive at the Govemmentwide level.
What Can Be Learned from a Balance Sheet
Approach
The budget is an essential tool for allocating re
sources within the Federal Government, but the stand
ard budget presentation with its focus on annual out
lays, receipts, and the deficit, does not provide sufficient
information for a full analysis of the Government’s fi
nancial and investment decisions. Additional informa
tion about the stocks of Federal assets and liabilities
is needed as well. It is also important to examine the
effects of Government decisions on national wealth and
well-being. Measurements that correct for inflation are
also useful. The framework presented here would fill
some of these needs.
Assessing the financial condition of the Government
is more complicated than drawing up a balance sheet
for a business enterprise. The Government’s sovereign
powers to tax, regulate commerce, and set monetary
policy give it resources that no private enterprise pos
sesses. Although these resources are not “assets” in
any conventional sense, they need to be considered in
1 Objectives of Federal Financial JReporting, Statement of Federal Financial Accounting
Concepts Number 1, Spetember 2, 1993. The other three Objectives relate to budgetary
integrity, operating performance, and systems and controls.
9
10
ANALYTICAL PERSPECTIVES
Figure 2-1 - A BALANCE SHEET PRESENTATION
FOR THE FEDERAL GOVERNMENT
ASSETS/
RESOURCES
LIABILITIES/
RESPONSIBILITIES
Federal Liabilities
Federal Assets
Financial Assets
Gold and Foreign Exchange
Other Monetary Assets
Mortgages and Other Loans
Less Expected Loan Losses
Other Financial Assets
Physical Assets
Fixed Reproducible Capital
Defense
Nondefense
Inventories
Non-reproducible Capital
Land
Mineral Rights
Federal
Government
Assets
and
Liabilities
(Table 2-1)
Net Balance
Responsibilities/Outlays
Resources/Recipts
Projected Receipts
Addendum: Real GDP Projections
Financial Liabilities
Currency and Bank Reserves
Debt Held by the Public
Miscellaneous
Guarantees and Insurance Liabilities
Deposit Insurance
Pension Benefit Guarantees
Loan Guarantees
Other Insurance
Federal Pension Liabilities
t ___ti_
_
Long-Run
Federal
Budget
Projections
(Figure 2-2)
Discretionary Outlays
Mandatory Outlays
Social Security
Health Programs
Other Programs
Net Interest
Deficit
National Assets/Resources
National Needs/Conditions
Federally Owned Physical Assets
State & Local Physical Assets
Federal Contribution
Privately Owned Physical Assets
Education Capital
Federal Contribution
R&D Capital
Federal Contribution
Indicators of economic, social,
educational, and environmental
conditions to be used as a guide to
Government investment and
management.
ref. 1GRAPH95.BUDCHAP2-A
National
Wealth
and
Well-Being
(Table 2-3)
11
2. STEWARDSHIP: TOWARD A FEDERAL BALANCE SHEET
any complete review of the Government’s financial con
dition.
Similar differences exist on the liabilities side. Some
Government obligations have clear counterparts in the
business world. For example, Treasury notes are simi
lar to corporate bonds and clearly belong on a Govern
ment balance sheet. But the Government has other obli
gations with a financial dimension for which there are
no clear analogues in business accounting. For example,
the Government’s obligation to promote the general
welfare has led in the twentieth century to the estab
lishment of a broad array of social welfare programs.
It is reasonable to expect that these programs will con
tinue in the future, and that they will require future
Federal funding. Does this make them a liability?
Such obligations are different from the legally bind
ing liabilities normally found on a business balance
sheet, but they can have implications for the Treasury
that are similar to a liability. If such obligations were
ignored, a Government balance sheet would provide an
incomplete picture of the Government’s financial condi
tion, but it is hard to know where to draw the line
between obligations that belong on and off the balance
sheet once the analogy with a business liability is aban
doned.
Further complicating the issue, almost all of the
broader Federal resources and responsibilities are sub
ject to change through the political process, and future
decisions by Congress and the President could alter
their value. If they were included in a balance sheet
with Government debt, it would be very difficult to
estimate the size of the Government’s liabilities.
In the presentation that follows, these issues are re
solved by presenting a series of tables and charts no
single one of which is “the balance sheet.” The sche
matic diagram, Chart 2-1, shows how they fit together.
The tables and charts should be viewed as an ensemble.
The main elements of each can be grouped together
in two broad categories, either as assets/resources or
as liabilities/responsibilities. When combined with ap
propriate data, this framework permits a balanced as
sessment of Federal stewardship.
• Reading down the left-hand side of the diagram
shows the range of Federal resources, including
assets the Government owns, tax receipts it can
expect to collect, and national wealth that pro
vides the base for Government revenues.
• Reading down the right-hand side reveals the full
range of Federal obligations and responsibilities,
beginning with Government’s acknowledged liabil
ities, such as the debt held by the public, and
going on to include future budget outlays. This
column potentially would include a set of indica
tors highlighting areas where Government activity
might require adjustment either through new in
vestment or through reductions or reallocations
of existing resources.
THE FEDERAL GOVERNMENT’S ASSETS AND LIABILITIES
Table 2-1 presents data on the value of Federal as
sets and liabilities summarizing what the Government
owns and what it owes as a result of its past oper
ations. The values are measured in terms of constant
1993 dollars to remove the distorting effects of inflation
on the comparisons across time.
For more than three decades, the Government’s liabil
ities have exceeded the value of its assets. In the 1960s,
however, the disparity was small and for many years
it deteriorated only gradually. In the late 1970s a spec
ulative run-up in the prices of oil, gold, and other real
assets boosted the value of Federal assets. Temporarily,
the balance of Federal assets and liabilities improved.2
Following 1981, however, there was an especially large
decline in the net balance which has continued.
The sharp decline in net Federal assets was due in
large part to the Federal budget deficits of the 1980s,
which led to a rapid increase in Federal debt, as well
as to the declining market value of some Federal assets.
Currently, the net balance of assets and liabilities is
about -$2,800 billion or almost -$11,000 per capita.
2 This temporary improvement highlights the importance of the other tables in this presen
tation. What was good for the Federal Government as an asset holder was not necessarily
favorable to the economy. The decline in inflation, which reversed the speculative runup
in gold and other commodity prices, reversed the improvement in the Federal balance
sheet while improving national economic performance.
Assets
The assets in Table 2-1 reflect a complete listing
of physical and financial resources owned by the Fed
eral Government. They correspond to the items that
would appear on a Federal balance sheet, but they do
not constitute an exhaustive catalogue of Federal re
sources. For example, the Government’s most important
financial resource, its ability to tax, is not reflected.
Financial Assets: At the end of 1993, the Federal
Government’s holdings of financial assets amounted to
about $570 billion. Government loans (measured in con
stant dollars) reached a peak in the mid-1980s. Since
then, Federal loans have declined. Government-owned
mortgages expanded during the savings and loan crisis,
and have declined sharply over the last two years.
The face value of mortgages and other loans over
states their economic worth. OMB estimates that the
discounted present value of future loan losses is about
$58 billion as of 1993. These estimated losses are sub
tracted from the face value of outstanding loans to ob
tain a better estimate of their economic worth. These
estimated losses increased by $18 billion in real terms
between 1990 and 1993.
Over time, variations in the price of gold have ac
counted for major swings in this category. Since 1980,
gold prices have fallen by 80 percent and the real value
12
ANALYTICAL PERSPECTIVES
TABLE 2-1. GOVERNMENT ASSETS AND LIABILITIES *
(As of the end of the fiscal year, in billions of 1993 dollars)
1960
ASSETS
Financial assets:
Gold and foreign exchange................................
Other monetary assets ......................................
Mortgages and other loans................................
Less expected loan tosses.............................
Other financial assets........................................
1965
1970
1975
1980
1985
1990
1991
1992
1993
101
38
126
-2
59
70
54
159
-6
78
59
32
202
-10
63
130
14
200
-20
63
318
37
270
—
37
81
154
23
327
-36
104
194
29
263
-40
157
176
21
266
-46
185
173
37
245
-48
213
171
37
219
-58
190
Subtotal..........................................................
Physical assets:
Fixed reproducible capital:
Defense..........................................................
Nondefense....................................................
Inventories..........................................................
Nonreproducible capital:
Land ...............................................................
Mineral rights .................................................
323
355
346
387
669
571
603
604
620
559
853
151
260
856
178
221
839
189
203
674
213
178
569
241
214
667
239
242
735
243
209
749
240
191
749
239
177
747
240
163
84
302
116
279
144
230
224
320
284
581
305
655
301
436
272
412
243
389
222
370
Subtotal......................................................
1,650
1,649
1,605
1,610
1,889
2,108
1,924
1,865
1,798
1,742
Total assets.........................................
1,973
2,005
1,951
1,996
2,558
2,679
2,527
2,469
2,418
2,301
LIABILITIES
Financial liabilities:
Currency and bank reserves..............................
Debt held by the public.....................................
Miscellaneous.....................................................
227
985
60
245
957
60
268
800
57
270
777
52
271
989
59
284
1,736
66
341
2,369
91
344
2,552
83
360
2,785
72
385
2,922
68
Subtotal..........................................................
Insurance liabilities:
Deposit insurance ..............................................
Pension benefit guarantees................................
Loan guarantees................................................
Other insurance..................................................
1,272
1,262
1,125
1,099
1,318
2,086
2,802
2,980
3,217
3,375
31
1
27
6
21
41
17
19
2
29
31
25
8
39
26
15
108
57
38
18
84
59
60
17
77
62
70
17
53
75
27
23
Subtotal..........................................................
Federal employee pension liabilities.......................
31
739
29
923
27
1,078
77
1,207
87
1,656
90
1,625
221
1,550
220
1,538
226
1,547
178
1,577
Total liabilities..........................................
Balance.....................................................
Per capita (in 1993 dollars).....................
2,042
-69
-382
2,214
-209
-1,077
2,230
-279
-1,361
2,383
-387
-1,790
3,062
-504
-2,206
3,801
-1,122
-4,692
4,572
-2,045
-8,161
4,738
-2,270
-8,957
4,990
-2,572
-10,039
5,130
-2,829
-10,925
‘ This table shows assets and liabilites for the Government as a whole, including the Federal Reserve System. Therefore, it does not break out separately the assets held in certain Government accounts, such as social secu
rity, that are the obligation of specific Government agencies. Estimates for 1993 are extrapolated in some cases.
of U.S. gold and foreign exchange holdings has dropped
by about half.
Fixed Reproducible Capital: The Federal Government
is a major investor in physical capital. Governmentowned stocks of fixed capital amounted to over $1.0
trillion in 1993. About three-quarters of this capital
is in the form of military equipment and structures.
From 1960 to 1980, the net stock of defense capital
fell as a share of GDP, but since 1980 the ratio has
held steady at between 12 and 13 percent. The slow
down in defense purchases that followed the end of
the Cold War has not yet had much effect on the accu
mulated net stock of fixed defense capital.
Inventories: The effects of the slowdown in defense
purchases have been more noticeable for inventories.
Data on Federal inventories are maintained by the Bu
reau of Economic Analysis, Department of Commerce.
Since the late 1980s, Federal inventories have declined
by about 20 percent, accounted for entirely by a drop
in military stocks.
Non-reproducible Capital: The Government owns sig
nificant amounts of land and mineral deposits. There
are no official estimates of the market value of these
holdings. Researchers in the private sector have esti
mated what they are worth, and these estimates are
extrapolated in Table 2-1. Since the late 1980s, land
values have fallen; oil prices have fluctuated but are
lower now than three years ago. These shifts have
pulled down the value of Federal land and mineral
deposits.
Total Assets: The total real value of Government as
sets has declined somewhat over the last 10 years, prin
cipally because of declines in the real prices of gold,
land, and minerals. At the end of 1993, the Govern
ment’s holdings of all assets were worth about $2.3
trillion.
Liabilities
The liabilities shown in Table 2-1 are analogous to
a business corporation’s liabilities and include public
13
2. STEWARDSHIP: TOWARD A FEDERAL BALANCE SHEET
debt, trade credit, and pension obligations owed to Fed
eral workers. Other Federal financial responsibilites,
however, are not reflected in this table.
Financial Liabilities: These amounted to about $3.4
trillion at the end of 1993. The largest component was
the Federal debt held by the public, amounting to $2.9
trillion. This measure of Federal debt is net of the
holdings of the Federal Reserve System, which exceeded
$300 billion in 1993. The Federal Reserve is an inde
pendent agency, but it is part of the Federal Govern
ment, and its assets and liabilities are included here
in the Federal totals.
In addition to debt held by the public, the Govern
ment’s financial liabilities include $390 billion in cur
rency and bank reserves, which are mainly obligations
of the Federal Reserve System, and about $70 billion
in miscellaneous liabilities.
Guarantees and Insurance Liabilities: The Federal
Government has contingent liabilities arising from loan
guarantees and insurance programs. When the Govern
ment guarantees a loan or offers insurance, the initial
outlays may be small or even negative, if a fee is
charged, but the risk of future outlays can be large.
The deposit insurance programs have experienced large
losses recently following many years in which these
programs had no budgetary cost in excess of premiums.
In the past, the budget did not recognize the risk
of such future outlays, even when they were predict
able. In the last few years, however, techniques have
been developed which permit an estimate of the budg
etary cost incurred from current commitments that risk
future outlays. These estimates are reported in Table
2-1. They amounted to about $180 billion in 1993.
Federal Pension Liabilities: The Federal Government
owes pension benefits to its retired workers and to cur
rent employees who will eventually retire. The amount
of these liabilities is large. As of 1992, the discounted
present value of the benefits is estimated to have been
around $1.5 trillion. The estimate for 1993 is an ex
trapolation of the recent trend.3
The Balance o f Net Liabilities
The balance between Federal liabilities and Federal
assets has deteriorated over the past decade at a rapid
rate. In 1981, the negative balance was less than 10
percent of GDP. Currently, it is estimated to be over
40 percent. Although the Government need not main
tain a positive balance, because the range of Govern
ment resources extends beyond the conventional assets
shown in Table 2-1, continuation of this trend would
be worrisome.
THE BALANCE OF RESOURCES AND RESPONSIBILITIES
The data summarized in Table 2-1 are useful in
showing some of the consequences of the Government's
past policies, but the Government’s continuing commit
ments to provide public services are not reflected in
this table, nor can the Government’s broader resources
be displayed in a table limited to assets that it owns.
A better way to examine the balance between future
Government obligations and resources is a budget pro
jection. Examples of such projections are summarized
in Chart 2-2.
The Government’s budget deficit is highlighted in this
chart. Last year’s budget agreement brings down the
Federal deficit over the next few years. This will be
a significant improvement, but permanent success in
controlling the deficit will depend on health reform and
its effectiveness in controlling Federal medical costs in
the years after 1998. The initial estimates of the effect
3 These pension liabilities are expressed as the acturial present value of benefits accruedto-date based on past and projected salaries. In the version of this table published previously,
this liability was based only on past salaries.
of health reform suggest that significant deficit reduc
tion is achievable by the end of the decade.
For the period beyond the year 2000, the budget out
look is highly uncertain. Demographic trends that will
begin to assert themselves early in the next century
promise to raise the Federal cost of social security and
other benefits for the elderly. Future adjustments may
be needed to cope with these responsibilities.
Some futxire claims on budgetary resoxirces deserve
special emphasis because of their importance in individ
ual retirement planning. These claims are highlighted
in Table 2-2. The Social Secxirity Trustees present an
annual report on the balance in the Social Secxirity
Trust Fund based on a 75-year projection of futxire
costs and benefits. Table 2-2 shows how these projec
tions changed between 1992 and 1993. The table also
reports similar projections for the Medicare Trust Fxind.
14
ANALYTICAL PERSPECTIVES
TABLE 2-2. CHANGE IN 75-YEAR ACTUARIAL BALANCE FOR OASDI AND HI TRUST FUNDS
(ALTERNATIVE 10
(As a percent of taxable payroll)
OASI
Dl
OASDI
HI
Actuarial balance in 1992 report ............................................................................
Changes in balance due to changes in:
Valuation period......................................................................................................
Economic and demographic assumptions..............................................................
Disability assumptions............................................................................................
Revised base due to 1992 costs...........................................................................
Home health utilization...........................................................................................
Other changes........................................................................................................
-1.01
-0.46
-1.46
-4.20
-0.05
0.09
00
.0
-0.05
0.10
-0.08
-0.12
0.09
00
.0
0.03
0.03
Total changes.....................................................................................................
Actuarial balance in 1993 report ............................................................................
0.04
-0.97
-0.04
-0.49
-1.46
00
.0
0.01
-0.08
0.0
0
-0.52
-0.46
0.10
-0.91
-5.11
Chart 2-2. FEDERAL BUDGET DEFICIT
AS A PERCENT OF GDP
ret IGEAPIPS.BUPCHAW-B
NATIONAL WEALTH AND FEDERAL INVESTMENTS
Unlike a private corporation, the Federal Government
routinely invests in ways that do not add directly to
its assets. For example, Federal grants are frequently
used to fund capital projects that involve investment
at the State or local level of government. Such invest
ments are often valuable nationally, but they are not
owned by the Federal Government.
The Federal Government also invests in education
and R&D. These outlays contribute to future productiv
ity and are in that sense analogous to an investment
in physical capital. Indeed, economists have computed
stocks of human and knowledge capital to reflect the
accumulation of such investments. Nonetheless, these
capital stocks are not owned by the Federal Govern
ment, nor would they appear on a Federal balance
sheet.
Table 2-3 presents a national balance sheet. It in
cludes estimates of total national wealth classified in
three categories: physical assets, education capital, and
R&D capital. The Federal Government has made con
tributions to each of these categories, and these con
tributions are also shown in the table.
15
2. STEWARDSHIP: TOWARD A FEDERAL BALANCE SHEET
TABLE 2-3. NATIONAL WEALTH
(As of the end of the fiscal year, in trillions of 1993 dollars)
1960
ASSETS
Publicly owned physical assets:
Structures and equipment..................................
Federally owned or financed..........................
Federally owned........................................
Grants to state and local governments.....
Funded by state and local governments.......
Other Federal assets.........................................
1965
1970
1975
1980
1985
1990
1991
1992
1993
2.1
1.1
1.0
0.1
0.9
0.7
2.4
1.2
1.0
0.2
1.2
0.7
2.8
1.3
1.0
0.2
1.5
0.6
3.3
1.3
0.9
0.4
2.1
0.8
3.6
1.3
0.8
0.5
2.3
1.4
3.6
1.4
0.9
0.5
2.1
1.3
3.7
1.5
1.0
0.5
2.2
1.1
3.7
1.5
1.0
0.5
2.2
1.0
3.8
1.5
1.0
0.5
2.2
0.9
3.8
1.5
1.0
0.5
2.2
0.9
2.8
3.0
3.4
4.2
5.0
4.9
4.8
4.7
4.7
4.6
5.6
2.0
2.0
0.7
0.9
2.0
6.3
2.3
2.3
0.8
1.0
2.3
7.9
2.7
3.0
0.9
1.3
2.6
10.1
3.6
3.9
1.1
1.4
3.3
12.6
4.7
4.9
1.3
1.7
4.9
13.0
4.7
5.3
1.2
1.8
5.6
14.3
5.2
5.7
1.2
2.2
5.6
14.3
5.2
5.7
1.1
2.2
5.1
14.3
5.3
5.7
1.1
2.3
4.5
14.5
5.4
5.7
1.1
2.3
4.1
7.6
8.6
10.4
13.3
17.5
18.6
19.9
19.3
18.8
18.6
0.1
6.3
0.1
8.0
0.2
10.5
0.3
11.8
0.4
14.5
0.5
17.3
0.7
22.0
0.7
23.0
0.7
24.2
0.8
25.5
Subtotal .................................................
Research and development capital:
Federally financed R&D.....................................
R&D Financed from other sources.....................
6.3
8.2
10.7
12.1
14.9
17.9
22.7
23.7
24.9
26.3
0.2
0.1
0.3
0.2
0.5
0.3
0.5
0.4
0.6
0.4
0.6
0.6
0.7
0.8
0.7
0.8
0.8
0.8
0.8
0.8
Subtotal .................................................
0.3
0.5
0.7
0.9
1.0
1.2
1.5
1.5
1.6
1.6
Total assets.....................................
17.0
20.4
25.3
30.5
38.5
42.5
48.9
49.3
50.0
51.2
LIABILITIES:
Net claims of foreigners on U.S..........................
Balance ..........................................................
Per capita (thousands of 1993 dollars)..................
-0.2
17.2
95.0
-0.2
20.6
106.0
-0.2
25.6
124.8
-0.2
30.7
142.3
-0.5
38.9
170.4
-0.2
42.7
178.8
0.3
48.6
193.7
0.4
48.9
192.9
0.5
49.5
193.3
0.6
50.6
195.3
ADDENDA:
Total Federally funded capital............................
Percent of national wealth.................................
2.1
12.2
2.3
11.2
2.6
10.2
2.9
9.5
3.7
9.4
3.9
9.1
4.0
8.2
4.0
8.1
4.0
8.0
4.0
7.9
Subtotal .................................................
Privately owned physical assets:
Reproducible assets...........................................
Residential structures....................................
Nonresidential plant and equipment ..............
Inventories......................................................
Consumer durables........................................
Land....................................................................
Subtotal .................................................
Education capital:
Federally financed..............................................
Financed from other sources.............................
Data in this table are especially uncertain, because
of the assumptions needed to prepare the estimates.
Overall, the Federal contribution to the current level
of national wealth is about 8 percent. Chart 2-3 illus
trates the relative contribution of different categories
of wealth to the national total.
Physical Assets
These include stocks of plant and equipment, office
buildings, residential structures, and government phys
ical assets such as military hardware. Automobiles and
consumer appliances are also included in this category.
The total amount of such capital is vast, amounting
to around $23 trillion in 1993. By comparison GDP
was only $6 trillion.
The Federal Government’s contribution to this stock
of capital includes its own physical assets plus $0.6
trillion in accumulated grants to State and local govern
ments for capital projects. The Federal Government has
financed about one-quarter of the physical capital held
by other levels of government.
Education Capital
Economists have developed the concept of human cap
ital to reflect the notion that individuals and society
invest in people as well as in physical assets. Invest
ment in education is a good example of how human
capital is accumulated.
For this table an estimate has been made of the
stock of capital represented by the Nation’s investment
in education. The estimate is based on the cost of re
placing the years of schooling embodied in the U.S.
population aged 16 and over. The idea is to measure
how much it would cost to reeducate the U.S. workforce
at today’s prices.
This is a crude measure, but it can provide a rough
order of magnitude. According to this measure, the
stock of education capital amounted to $26 trillion in
1993, of which about 3 percent was financed by the
Federal Government. The total exceeded the Nation’s
stock of physical capital. The main investors in edu
cation capital have been State and local governments,
parents, and the students themselves who often forego
earning opportunities in order to acquire education.
16
Research and Development Capital
Research and development (R&D) can also be thought
of as an investment, because R&D represents a current
expenditure for which there is a prospect of future re
turns. After adjusting for depreciation, the flow of R&D
investment can be added up to provide an estimate
of the current R&D stock.4 That stock is estimated
to have been about $1.6 trillion in 1993. Although this
is a large amount of research, it is a relatively small
portion of the total national wealth. About half of this
stock was funded by the Federal Government.
Liabilities
When considering the debts of the Nation as a whole,
the private debts that Americans owe to one another
cancel out, and the only debts that remain are those
owed to foreigners. America’s foreign debt has been in
creasing rapidly in recent years, as a consequence of
the U.S. trade deficit, but the size of this debt is small
compared with America’s total stock of assets.
Most of the Federal debt held by the public is owned
by Americans, so it does not appear in Table 2-3. Only
that portion of the Federal debt held by foreigners is
included in this table. Even so, it is of interest to com
pare the imbalance between Federal assets and liabil
ities with national wealth. The Federal imbalance as
estimated in Table 2-1 amounts to less than 5 percent
of total national wealth.
Trends in National Wealth
The net stock of wealth in the United States at the
end of 1993 was about $50 trillion. Since 1980 it has
increased in real terms at an annual rate of about
2 percent per year—about half the average annual
growth rate from 1960 to 1980. (In this section all
comparisons are in terms of constant 1993 dollars.)
Public capital formation slowed down markedly be
tween the two periods. Aside from the reproducible cap
ital owned by the Federal Government, consisting large
ly of military hardware, the net stock of public capital
was lower in 1993 than in 1980. During this period,
Federal grants to State and local governments for cap
ital projects increased at an average rate of 0.7 percent
per year compared with 7.9 percent in the 1960s and
1970s, while capital funded directly by State and local
governments shrank at an average yearly rate of 0.4
percent. Government holdings of land and mineral
rights lost value over the same period.
Private capital formation in tangible assets also grew
more slowly after 1980. The net stock of nonresidential
plant and equipment grew 1.2 percent per year from
1980 to 1993 compared with 4.6 percent in the 1960s
and 1970s, and the stock of business inventories actu
ally declined. Overall, the stock of private tangible cap
ital grew at an average rate of just 0.5 percent per
year between 1980 and 1993.
The accumulation of education capital, as measured
here, did not slow down in the 1980s. It maintained
ANALYTICAL PERSPECTIVES
about the same rate of increase as in the 1960s and
1970s, around 4V2 percent per year. This continuing
growth reflects both the rising cost of education and
the extra resources devoted to schooling in this period.
R&D stocks grew faster than physical capital, but at
a somewhat slower rate after 1980 than in earlier dec
ades.
Other Federal Contributions to Wealth
Many Federal policies contributed to the slowdown
in capital formation that occurred after 1980. Federal
investment policies obviously were important, but the
Federal Government also contributes to wealth in ways
that cannot be easily captured in a formal presentation.
Monetary and fiscal policies affect the rate and direc
tion of capital formation. Regulatory and tax policies
affect how capital is invested, as do the Federal Govern
ment’s credit assistance policies.
One important channel of influence is the Federal
budget deficit, which determines the size of the Federal
Government’s borrowing requirement. Smaller deficits
in the 1980s would have resulted in a smaller gap
between Federal liabilities and assets than is shown
in Table 2-1. It is also likely that, had the $1.9 trillion
in added Federal debt since 1980 been avoided, a sig
nificant share of these funds would have gone into pri
vate investment. National wealth might have been 2
to 4 percent larger in 1993 had fiscal policy avoided
the buildup in the debt.
Government Performance Measures and
Indicators of Well-Being
Unlike private business, Government typically lacks
a direct measure of the value of its services. As a result,
the costs of Government are reported while the benefits
often are not. For this reason, it can be difficult to
evaluate how well Government agencies are performing
their functions. With passage of the Government Per
formance and Results Act of 1993, Federal Departments
and agencies will be selecting performance measures
with which to monitor outputs and outcomes of their
activities.5
Examples of performance measures for agency out
puts would include:
• Numbers of loans extended for Federal credit pro
grams
• The timeliness with which social security checks
are issued.
• Number of inspections by the Animal and Plant
Health Inspection Service.
Measures of outcomes show how such outputs affect
people’s lives. Examples might include:
• The number of households lifted out of poverty
by social security.
• Lives saved or losses prevented through inspection
and control measures.
8 Performance measures for Government agencies were given a hearty endorsement in
4 R&D depreciates in the sense that the economic value of applied research tends to the report of the National Performance Review, "Creating a Government that Works Better
& Costs Less.”
decline with the passage of time and movement in the technological frontier.
17
2. STEWARDSHIP: TOWARD A FEDERAL BALANCE SHEET
Chart 2-3. NATIONAL WEALTH
RATIO TO GDP
EDUCATION CAPITAL
54 31 PRIVATELY OWNED PHYSICAL ASSETS
2
1
PUBLICLY OWNED PHYSICAL ASSETS
0
1960
1964
1968
1972
1976
n t lGKAfttWJUPCHAF3-C
As appropriate performance measures are developed,
it should be possible to integrate them with reports
on the cost of Government activities to create a system
of financial reporting that would more analogous to
private sector accounting statements.
Indicators of Well-Being
There are certain broad responsibilities that are
unique to the Federal Government as a whole. Espe
cially important are the Government’s role in fostering
healthy economic conditions, maintaining national secu
rity, protecting the environment, and promoting health
and social welfare. The design for the set of tables
presented here includes a place for a table of social
and economic indicators that would serve as rough
measures of how well the Federal Government was
doing in promoting general welfare and security.
The individual measures in this table would be influ
enced by many Government policies and programs, as
well as by external factors beyond the Government’s
control. Thus, they would not be outcome indicators
in the sense defined above, because such measures indi
cate the direct results achieved through a program.
Such a table would serve two functions. First, it
would highlight areas where the Federal Government
1980
1984
1988
1992
01/ 24/94
might need to modify its current practices or consider
fresh action in order to better serve the public. Second,
it would provide a context for evaluating the other ta
bles. For example, Government actions that weaken its
own financial position may be appropriate when they
promote a broader social objective, as in a recession
when increased government borrowing adds to its liabil
ities while providing an automatic stabilizer for the
private sector.
An Interactive Analytical Framework
No single framework can encompass all of the factors
that affect the financial condition of the Federal Gov
ernment. Nor is any framework a substitute for analy
sis. Nevertheless, the framework presented above offers
a useful way of tracing the major financial effects of
Federal policies. Increased Federal support for invest
ment, the reduction in Federal absorption of saving
through deficit reduction, and other Administration
policies to enhance economic growth are expected to
promote national wealth and improve the future finan
cial condition of the Federal Government. As that oc
curs, the efforts will be clearly revealed in these tables.
18
ANALYTICAL PERSPECTIVES
TECHNICAL NOTE: SOURCES OF DATA AND METHOD OF ESTIMATION
Federally Owned Assets and Liabilities
Assets
Financial Assets: The source of data is the Federal
Reserve Board's Flow-of-Funds Accounts. Two adjust
ments were made to this data. First, U.S. Government
holdings of financial assets were consolidated with the
holdings of the monetary authority, i.e., the Federal
Reserve System. Second, the gold stock, which is valued
in the Flow-of-Funds at a constant historical price, is
revalued using the market value for gold.
Fixed Reproducible Capital: Estimates were devel
oped from the OMB historical data base for physical
capital outlays presented in Chapter 8. The data base
extends back to 1940 and was supplemented by data
from other selected sources for 1915-1939. The source
data are in current dollars. To estimate investment
flows in constant dollars, it is necessary to deflate the
nominal investment series. This was done using Com
merce Department price deflators for Federal purchases
of durables and structures. These price deflators are
available going back as far as 1940. For earlier years,
deflators were based on Census Bureau historical sta
tistics for constant price public capital formation. The
capital stock series were adjusted for depreciation on
a straight-line basis, assuming useful lives of 46 years
for water and power projects; 40 years for other direct
Federal construction; and 16 years for major nondefense
equipment and for defense procurement.
Fixed Nonreproducible Capital: Historical estimates
for 1960-1985 were based on estimates in Michael J.
Boskin, Marc S. Robinson, and Alan M. Huber, “Gov
ernment Saving, Capital Formation and Wealth in the
United States, 1947-1985,” published in The Measure
ment of Saving, Investment, and Wealth, edited by Rob
ert E. Lipsey and Helen Stone Tice (The University
of Chicago Press, 1989). Estimates were updated using
changes in the value of private land from the Flowof-Funds Balance Sheets and in the Producer Price
Index for Crude Energy Materials.
Liabilities
Financial Liabilities: The principal source of data is
the Federal Reserve’s Flow-of-Funds Accounts.
Contingent Liabilities: Sources of data are the OMB
Deposit Insurance Model and the OMB Pension Guar
antee Model. Historical data on contingent liabilities
for deposit insurance were also drawn from the Con
gressional Budget Office’s study, The Economic Effects
of the Savings and Loan Crisis, issued January 1992.
Pension Liabilities: For 1979-1992, the estimates are
the actuarial accrued liabilites as reported in the an
nual reports for the Civil Service Retirement System,
the Federal Employees Retirement System, and the
Military Retirement System (adjusted for inflation). Es
timates for the years before 1979 are not actuarial;
they are extrapolations. The estimate for 1993 is a pro
jection.
National Balance Sheet
Publicly Owned Physical Assets: Basic sources of data
for the federally owned or financed stocks of capital
are the investment flows described in Chapter 8. Fed
eral grants for State and local government capital were
added together with adjustments for inflation and de
preciation in the same way as described above for direct
Federal investment. Data for total State and local gov
ernment capital come from the capital stock data pre
pared by John Musgrave of the Bureau of Economic
Analysis, Commerce Department.
Privately Owned Physical Assets: Data are from the
flow-of-funds national balance sheet. Preliminary esti
mates for 1993 were prepared based on net investment
from the National Income and Product Accounts.
Education Capital: The stock of education capital is
computed by valuing the cost of replacing the total
years of education embodied in the U.S. population 16
years of age and older at the current cost of providing
additional schooling. The estimated cost includes both
direct expenditures in the private and public sectors
and an estimate of students’ foregone earnings, i.e.,
it reflects the opportunity cost of education.
For this presentation, Federal investment in edu
cation capital is a portion of the Federal outlays in
cluded in the conduct of education and training. This
portion includes direct Federal outlays and grants for
elementary, secondary, and vocational education and
for higher education. The data exclude Federal outlays
for physical capital at educational institutions and for
research and development conducted at colleges and
universities because these outlays are classified else
where as investment in physical capital and investment
in R&D capital. The data also exclude outlays under
the GI Bill; outlays for graduate and post-graduate edu
cation spending in HHS, Defense and Agriculture; and
most outlays for vocational training.
Data on investment in education financed from other
sources come from educational institution reports on
the sources of their funds, published in U.S. Depart
ment of Education, Digest of Education Statistics.
Nominal expenditures were deflated by the implicit
price deflator for GDP to convert them to constant dol
lar values. Education capital is assumed not to depre
ciate. An education capital stock computed using this
method with different source data can be found in Wal
ter McMahon, “Relative Returns To Human and Phys
ical Capital in the U.S. and Efficient Investment Strate
gies,” Economics of Education Review, Vol. 10, No. 4,
1991. The method is described in detail in Walter
McMahon, “Investment in Higher Education,” 1974.
Research and Development Capital: The stock of R&D
capital financed by the Federal Government was devel
oped from a data base that measures the conduct of
R&D. The data exclude Federal outlays for physical
capital used in R&D because such outlays are classified
elsewhere as investment in federally financed physical
2. STEWARDSHIP: TOWARD A FEDERAL BALANCE SHEET
capital. Nominal outlays were deflated using the GDP
deflator to convert them to constant dollar values.
Federally funded capital stock estimates were pre
pared using the perpetual inventory method in which
annual investment flows are cumulated to arrive at
a capital stock. This stock was adjusted for depreciation
by assuming an annual rate of depreciation of 10 per
cent for applied research and development. Basic re
search is assumed not to depreciate. Chapter 8 contains
additional details on the estimates of the total federally
financed R&D stock, as well as its national defense
and nondefense components (see Budget of the U.S.
19
Government, Fiscal Year 1993, 1993, January 1992,
Part Three, pages 39-40).
A similar method was used to estimate the stock
of R&D capital financed from sources other than the
Federal Government. The component financed by uni
versities, colleges and other nonprofit organizations is
based on data from the National Science Foundation,
Surveys of Science Resources. The industry-financed
R&D stock component is from that source and from
the U.S. Department of Labor, "The Impact of Research
and Development on Productivity Growth,” Bulletin
2331, September 1989.
3. GENERATIONAL ACCOUNTING
Government deficits, taxes, transfer payments, and
• The Administration’s health care reform proposal
other expenditures affect the distribution of income and
would further significantly reduce the lifetime net
wealth among different generations. Generational ac
tax rate facing future generations. The combined
counting is a new method for considering the fiscal
effect of OBRA93 and health care reform would
treatment of different generations.1 It is still being re
reduce the previous generational imbalance by
over one-half.
fined, and a number of the assumptions used to esti
mate the accounts are controversial.2 Further develop
• The fiscal policies of Italy and Norway, like that
ment of generational accounting is needed to improve
of the United States, suggest a severe imbalance
the quality of the estimates and the usefulness of the
in the treatment of future and existing genera
tions.
method.
Generational accounts indicate, in present value
The Nature of Generational Accounts and
terms, what the members of each generation can expect
Lifetime Net Tax Rates
to pay on average, now and in the future, in net taxes
(taxes paid to the government less transfers received,
The budget normally measures receipts and outlays
such as social security benefits). This is shown for both for one year at a time, and it usually shows these
existing
generations
and
future
generations. estimates for only a few years into the future. More
Generational accounting can also be used to calculate over, while the standard budget presentation divides
the lifetime net tax rate of each generation—the net receipts and outlays into a number of categories, it
taxes that a generation pays as a percentage of labor does not do so in a way that shows the effects of the
income, over its entire lifetime, in present value terms. budget on different generations.
Generational accounts, in contrast, look ahead many
Generational accounts were presented in chapters in
the fiscal year 1993 Budget and the January 1993 decades; and they classify taxes paid and transfers re
Budget Baselines, Historical Data, and Alternatives for ceived—such as social security, medicare, and food
the Future. These chapters explained the concept and stamps—according to the generation that pays or re
provided some illustrative results of how the accounts ceives the money. For an existing generation, they esti
would be affected by policy changes. The chapter in mate its taxes and transfers year-by-year over its entire
Budget Baselines initiated the use of lifetime net tax remaining lifespan; and they summarize these amounts
rates by generation. The present chapter provides base for that generation in terms of one number, the present
line generational accounts for 1992, estimates the effect value of its entire annual series of average future tax
of the Omnibus Budget Reconciliation Act of 1993 payments net of transfers received. For future genera
(OBRA93), and estimates the further effect of the Ad tions, generational accounts estimate the net tax pay
ministration’s proposal for health care reform. It also ments based on the proposition that the government’s
compares U.S. generational accounts with those for bills that are not paid by people who are now alive
Italy and Norway.
will have to be paid by future generations. They cal
The present analysis reaches the following major con culate how much future generations will have to pay
clusions:
on average to the government, above the amounts they
• The lifetime net tax rates paid by Americans in will receive in transfers, if the government’s total
the “baby boom” and later generations is higher spending is not reduced from the projected path and
than the lifetime net tax rates paid by Americans if the people now alive do not pay more than projected.
bom earlier.
Defined more precisely, generational accounts meas
• The lifetime net tax rate estimated for future gen ure, as of a particular base year, the present value
erations is much higher than the lifetime net tax of the average future taxes that a member of each
rates estimated for existing generations.
given generation is estimated to pay to the government
• The deficit reduction in the Omnibus Budget Rec minus the present value of the average future transfers
onciliation Act of 1993 significantly reduced the that a member is estimated to receive. This difference
lifetime net tax rate facing futxire generations.
is called the “net tax payment” or “net tax” in the
following discussion. A generation is defined as all the
1Generational accounting was developed by Alan J. Auerbach, Jagadeesh Gokhale, and
males or females who are bom in a given year.
Laurence J. Kotlikoff. See Auerbach, Gokhale, and Kotlikoff, "Generational Accounts: A
Meaningful Alternative to Deficit Accounting,” in David Bradford, ed., Tax Policy and the
The generational accounts as such—i.e., these net tax
Economy, vol. 5 (MIT Press for the National Bureau of Economic Research, 1991), pp.
payments—are prospective, considering only the
55-110; and Kotlikoff, Generational Accounting—Knowing Who Pays, and When, for What
We Spend (New York: The Free Press, 1992).
present value of future taxes and transfers as of a
2The merits of generational accounting are debated in two companion articles that will
base year for existing generations and generations yet
be published in the Spring 1994 issue of The Journal of Economic Perspectives. One is
Auerbach, Gokhale, and Kotlikoff, "Generational Accounting—A Meaningful Way to Assess
to be bom. A prospective analysis can estimate the
the Stance of Fiscal Policy.” The other is Robert Haveman, "Should Generational Accounts
Replace Public Budgets and Deficits?”
effect of policy changes, because all the effects of a
21
22
policy change are in the future; and it can compare
the lifetime net taxes of the newly bom and future
generations, because their entire lifetime taxes and
transfers are in the future. However, it cannot compare
the lifetime net taxes paid by one existing generation
with the lifetime net taxes paid by a different existing
generation or with the lifetime net taxes paid by future
generations, because part of any living generations
taxes and transfers were in the past and therefore are
not taken into account.
A comparison of one existing generation with another,
or with future generations, must be based on their en
tire lifetime taxes and transfers. The lifetime net tax
rate of a generation is defined as the present value
of its lifetime net taxes (taxes paid less transfers re
ceived) divided by the present value of its lifetime labor
income. The present values are calculated as of the
generation’s year of birth, so that each generation can
be evaluated from the standpoint of when it was bom.
Since lifetime taxes, transfers, and income have tended
to rise over time and have fluctuated to some extent,
the relative net tax paid by different generations is
compared in terms of lifetime net tax rates rather than
the absolute amounts of lifetime net tax payments.
Generational accounting can be used to make two
types of comparison. First, through the use of lifetime
net tax rates, it can be used to compare the lifetime
net taxes of future generations, of the generation of
people just bom, and of different generations of people
bom in the past. The lifetime net taxes of generations
bom in the past are based on estimates of actual taxes
paid and transfer payments received in past years up
through 1992 and projections of taxes to be paid and
transfer payments to be received in the future.
Secondly, generational accounting can be used to
compare the effects of actual or proposed policy changes
on the remaining lifetime net tax payments of genera
tions currently alive and on future generations. Such
comparisons may be made in terms of lifetime net tax
rates; or they may be made in terms of the absolute
amounts of the generational accounts, because the
changes in all lifetime taxes and transfers will be in
the future for every generation and thus will be in
cluded in the comparison. The comparisons can be made
equally well for policies that change the totals of re
ceipts or expenditures while also changing the deficit;
for policies that change the composition of receipts or
expenditures without affecting the deficit; and for poli
cies that change the levels of receipts and expenditures
together without affecting the deficit.
Generational accounts have a number of limitations
as they are now constructed. These accounts, unlike
almost every other table in this budget, include the
taxes and transfers of all levels of government alike—
Federal, State, and local. While this is appropriate for
some analyses, the accounts do not show the separate
effect of the Federal budget alone or the State and
local sector alone. However, the difference in
generational accounts due to a Federal Government pol
icy change can be analyzed alone. Thus, this consolida
ANALYTICAL PERSPECTIVES
tion does not limit generational accounts as a method
for assessing the effects of a change in Federal policy.
Generational accounts reflect only taxes paid to the
government and transfers received. They do not impute
to particular generations the value of the government
purchases of goods and services made to provide them
with education, highways, national defense, and other
services. Therefore, they do not show the full net bene
fit or burden that any generation receives from govern
ment fiscal policy as a whole. Insofar as the benefits
of purchases could be imputed, they would reduce the
net tax payments. This omission may be important,
because government purchases are about half of total
government expenditures. Nevertheless, generational
accounts can show a generation’s net benefit or burden
from a particular policy change that affects only taxes
and transfers. Moreover, although they do not show
how the benefits of government purchases are spread
across generations, they do illuminate which genera
tions will pay for this spending. In the future, the use
fulness of generational accounting would be improved
if the value of certain types of government purchases
such as education were imputed to specific generations.
Generational accounting does not, as yet, incorporate
any feedback of policy on the economy’s growth and
interest rates. Feedback effects can be significant, but
they generally occur slowly, so their impact on the dis
counted values used in the generational accounts are
likely to be small. Moreover, there is reason to believe
they would reinforce the conclusions derived in this
chapter. For example, policies that decrease the net
tax payment by existing generations and increase the
net tax payment by future generations are likely to
stimulate more current consumption and thereby re
duce the saving available to finance investment. This,
in turn, will lower productivity and real wage growth
and raise real interest rates, which on balance will
harm future generations.
Generational accounting divides the people bom in
the same year into only two categories, males and fe
males, each designated a “generation.” This is an im
portant distinction, for males and females differ signifi
cantly in characteristics such as lifetime earnings and
longevity. However, it does not reveal differences with
respect to other characteristics, such as income level
or race, nor does it reveal the wide diversity among
individuals within any grouping. The categories would
be expanded if more data were available.
Lifetime net tax rates introduce a number of further
conceptual issues. For example, how should lifetime in
come be measured? Lifetime income is defined as a
present value, like lifetime taxes and transfers. The
present value calculation should include all income that
increases a generation’s resources: labor earnings, in
herited wealth, and capital gains over and above the
normal return to saving. The normal return to saving
is not itself included in income, because that would
be double counting. Saving out of labor income and
then earning a normal rate of return on the amount
saved does not increase the present value of a house
23
3. GENERATIONAL ACCOUNTING
hold’s resources when its income is discounted at the
same rate as the normal rate of return. Data do not
exist on the share of each generation’s income that
has come from inherited wealth or supernormal capital
gains, so labor earnings are used to represent income.3
Even within the scope of generational accounts as
now constructed, the results in this chapter should be
viewed as experimental and illustrative. They are lim
ited by the availability and quality of data, especially
for earlier years. The lifetime net tax rates are cal
culated from historical data on taxes, transfers, and
income up to 1992 and on projections of future data.
The historical data, however, are not available to the
same extent as the data for recent years that underlie
the projections, and in some cases they are not avail
able at all. As work on generational accounting pro
gresses, the estimates can be expected to change due
to improvements in the data and refinements in the
method. Some of the changes from a year ago are dis
cussed in the technical note at the end of the chapter.
In addition, the generational accounts are necessarily
based on a number of simplifying assumptions, about
which reasonable people may disagree. They assume
that government intergenerational redistribution does
not substitute for, and is not offset by, private
intergenerational transfers. This is similar to the usual
assumption made in cross-section estimates of the dis
tributional effect of taxes and transfers by income class
or other characteristic. The generational accounts are
also based on assumptions concerning the pattern of
future taxes and spending, the interest rate used to
discount future taxes and transfers to form present val
ues, mortality and birth rates, and so forth. The abso
lute amounts of the generational accounts are sensitive
to these assumptions.
The projections of government expenditures are espe
cially sensitive to the assumptions about health care
costs. Health care expenditures have risen from 9 per
cent of GDP in 1980 to 14 percent currently and have
been projected to reach more than 20 percent early
in the next century unless they are constrained by cost
control. The government pays for around 45 percent
of health care costs, and its costs have been rising
more rapidly than the private sector’s, so future trends
in government expenditures are strongly influenced by
future trends in health care costs. The estimates in
this chapter without health care reform reflect contin
ued rapid growth in cost, but the probable pattern is
very uncertain.
Despite these qualifications, the generational ac
counts can be illuminating when considered in the light
of their assumptions, as has been the case for the 75year projections made every year by the social security
trustees. Moreover, the most fundamental result holds
for a wide range of reasonable changes in the assump
tions: the net tax payment by future generations is
relatively much larger than the net tax payment by
the generation just bom or other existing generations.
The following sections illustrate the results of
generational accounting. A technical note at the end
explains the concepts, data sources, calculations, and
other assumptions more fully.
Lifetime Net Tax Rates before Deficit Reduction
Table 3-1 estimates the lifetime net tax rates for
different generations as they stood before OBRA93 re
duced the deficit. Lifetime net tax rates are shown for
the generations bom in 1900 and every tenth year
thereafter; for the generation bom in 1992, the “newly
bom” in this year’s analysis; and for the future genera
tions, those bom in 1993 and later. All Federal, State,
and local taxes and transfers are included in the cal
culations. Males and females are combined.4 The cal
culations in this table and throughout the chapter are
as of calendar year 1992. Because of the time needed
to prepare these estimates, they are based on the re
ceipts and outlays in the Mid-Session Review of the
1994 Budget rather than this budget. Since the budget
outlook has improved since the Mid-Session Review,
lifetime net tax rates for both existing and future gen
erations would probably be smaller if based on the esti
mates in the present budget.
TABLE 3-1. LIFETIME NET TAX RATES BEFORE OBRA93
(In percentages)
Generation's year of birth
1900 ................................................................................
1910 ................................................................................
1920 ................................................................................
1930 ................................................................................
1940 ................................................................................
1950 ................................................................................
1960 ................................................................................
1970 ................................................................................
1980 ................................................................................
1990 ................................................................................
1992 ................................................................................
Future generations...........................................................
Percentage difference: future generations and 1992 ......
Net tax
rate
23.6
27.2
29.0
30.5
31.6
32.8
34.4
35.7
36.0
35.5
35.4
93.7
165.1
Components of net
tax rate
Gross tax
rate
27.3
33.0
35.9
38.7
40.9
43.7
46.7
49.8
51.5
51.5
51.5
Transfer
rate
3.7
5.8
6.9
8.2
9.2
10.9
12.3
14.1
15.0
16.0
16.2
The lifetime net tax rates exhibit a strong upward
trend over the past century, rising from 24 percent
for the generations bom in 1900 to 35-36 percent for
the generations bom since 1970.5 The lifetime net tax
rate on future generations was much larger before
OBRA93 was enacted—94 percent. This was 165 per
cent higher than the lifetime net tax rate for the gen
eration of people newly bom in 1992.
* Males and females were combined because of the conceptual problem of how to attribute
taxes, transfers, and income within a family. The technical note explains the present method
and the change from last year. For further discussion of the conceptual problem, see the
January 1993 Budget Baselines, page 537.
6The lifetime net tax rate for the generation born in 1900 was estimated as 21.5 percent
3 The error due to this omission is relatively small in the aggregate, given that labor
in the January 1993 Budget Baselines rather than the 23.6 percent reported here. The
income has long accounted for approximately four-fifths of all income and that only part
increase is primarily due to a reduction in the estimate of lifetime labor earnings, which
of the remaining income from capital should be included. However, the errors for different
is the denominator of the lifetime net tax rate. This revision also raises the lifetime net
generations could vary depending on trends and fluctuations in asset values and bequest
tax rate of generations born after 1900, including future generations, by roughly 10 percent.
behavior.
24
Table 3-1 also breaks down the net tax rates between
gross tax rates and transfer rates. To calculate these
latter rates, the present value of a generation’s lifetime
taxes (or transfers) is divided by the present value of
its lifetime income. This breakdown reveals the ex
panded role of government transfer payments during
the past century. The lifetime transfer rate more than
quadrupled between the generations bom in 1900 and
those bom in 1992, starting at 3.7 percent and increas
ing each decade to a rate of 16.2 percent. The increase
was more rapid, in both relative and absolute terms,
for the generations bom before World War II than
afterwards.
The gross tax rate has risen much more than the
net tax rate. It nearly doubled between the generations
bom in 1900 and 1992, starting at 27.3 percent and
increased each decade to a rate of 51.5 percent. In
contrast, the net tax rate increased by about a half.
The larger increase in the gross tax rate is because
a generation’s lifetime gross taxes pay for the govern
ment’s purchases of goods and services as well as trans
fers and pay for transfers to other generations as well
as its own.
The estimates of lifetime net tax rates by generation,
such as shown in this table, are affected by the
amounts of future taxes, transfers, and other govern
ment expenditures that are assumed year-by-year in
the underlying projections. These assumptions could
differ widely, and the actual amounts that eventuate
could differ substantially from any assumptions made.
As explained in the technical note, the projection meth
ods generally seek to maintain current policy in some
sense. However, “current policy” can be interpreted in
different ways, especially for discretionary expenditures
such as defense; and the long-term projections for medi
care and medicaid assume that even in the absence
of the Administration’s health care reform some policy
actions or other forces will eventually hold the spending
growth to the overall rate of economic expansion (ad
justed for shifts in the age and sex composition of the
population), even though the projected growth rate is
still quite rapid relative to GDP for the next few dec
ades.6
The lifetime net tax rates—and, hence, the imbalance
between future generations and existing generations—
are defined in such a way that the generations now
alive, including the newly bom, do not pay any more
taxes (or receive any less transfers) than projected
under the specified fiscal policy. This assumption is
an analytical device for determining the size of the
fiscal imbalance; it is not meant to suggest that future
generations will in fact close the gap all by themselves.
Any actual policy change—whether a policy change en
acted in the past, or one proposed for the future—
is almost certain to bear in some degree on generations
now living as well as those to be bom in the future.
If such a policy change is made, the net tax rates paid
by the newly bom and other existing generations would
6 A pure extrapolation of recent trends, in contrast, would imply that health care costs
would eventually bankrupt the government.
ANALYTICAL PERSPECTIVES
be higher than shown in this table. Policy changes of
this kind are considered below.
The generational imbalance shown in table 3-1 de
pends on the assumption that all future generations
of the same sex have the same lifetime net tax rate.
Alternatively, suppose that the future generations bom
during 1993-2000 pay the same lifetime net tax rate
as the generation bom in 1992. Because these future
generations would pay less than otherwise assumed,
those future generations bom after 2000 would have
to pay more. The greater the number of future genera
tions who pay no more than the generation newly bom,
the larger is the lifetime net tax rate that will be re
quired of those generations who are bom still later.
The size of the imbalance estimated between future
generations and the newly bom is also sensitive to the
assumptions about the interest rate used for discount
ing and the growth rate of the economy. Table 3-2
shows the percentage differential under alternative as
sumptions. It considers interest rates of 3, 6, and 9
percent and productivity growth rates of 0.25, 0.75, and
1.25 percent. The assumptions used for all other cal
culations in this chapter were an interest rate of 6
percent and a growth rate of 0.75 percent. This led
to a 165 percent larger net payment by future genera
tions than the newly bom. Under the alternatives in
table 3-2, the difference ranges from 93 percent to 350
percent. While this range is large, the basic conclusion
holds for all alternatives. Future generations are esti
mated to make a much larger payment of taxes to
the government, net of the transfers they receive, than
the generation just bom or other existing generations.
TABLE £-2. PERCENTAGE DIFFERENCE IN LIFETIME NET TAX RATES OF
FUTURE GENERATIONS AND THE 1992 GENERATION FOR ALTERNATIVE
ASSUMPTIONS
Growth rate
Interest rate
0.25
3 .0 .........................................................................
6 .0 .........................................................................
9 .0 .........................................................................
0.75
1.25
167
205
350
127
165
297
93
131
249
Effects of OBRA93
The Omnibus Budget Reconciliation Act of 1993 re
duced the estimated deficits from 1994 through 1998
by a cumulative total of around $500 billion. Table 3-3
compares the lifetime net tax rates of different genera
tions with and without this Act. OBRA93 reduced the
lifetime net tax rate of future generations from 94 per
cent to 82 percent. In order to accomplish this, it raised
the lifetime net tax rate on existing generations: on
the very young generations by roughly 1 percentage
point, on the baby boom generations by about 0.3 to
0.6 percentage points, and on older generations by 0.3
percentage point or less. The lower impact on the life
time net tax rates of older generations is partly because
they have fewer remaining years of life to be affected
and any given dollar amount of taxes or transfers is
discounted over more years in order to calculate the
present value as of the generation’s year of birth.
25
3. GENERATIONAL ACCOUNTING
TABLE 3-3. LIFETIME NET TAX RATES UNDER ALTERNATIVE POLICIES
(In percentages)
Generation's year of birth
1900 ............................................................
1910...........................................................
1920 ............................................................
1930 ...........................................................
1940 ............................................................
1950 ............................................................
1960 ...........................................................
1970 ............................................................
1980 ...........................................................
1990 ...........................................................
1992 ............................................................
Future generations.....................................
Percentage difference: future generations
and 1992 ................................................
Before
OBRA93
After OBRA93
With health
care reform
Health care
reform but
faster cost
growth
23.6
27.2
29.0
30.5
31.6
32.8
34.4
35.7
36.0
35.5
35.4
93.7
23.6
27.2
29.0
30.6
31.9
33.2
35.0
36.5
36.9
36.5
36.3
82.0
23.6
27.2
29.1
30.9
32.4
34.0
35.9
37.6
38.2
38.3
38.3
66.5
23.6
27.2
29.1
30.9
32.2
33.5
35.2
36.6
36.7
36.2
36.0
75.2
165.1
126.0
73.9
108.8
of the basic principles of the Administration proposal
is to reduce the complexity and in general to improve
the efficiency of the health care system. To the extent
that efficiency is improved, health care reform will
allow lower government transfer payments but people
will not receive less health care or have worse health.
The measured decline in the lifetime transfers to exist
ing generations would overstate the change in the value
of benefits they receive, and the increase in the lifetime
net tax rates from this effect would not represent an
increase in actual fiscal burden.
The effect of health care reform is shown in table
3-3 to reduce the generational imbalance by about twoEffects of Health Care Reform
fifths, from 126 percent to 74 percent. In combination,
The Administration has proposed a program of health OBRA93 and health care reform would eliminate over
care reform to provide every American with comprehen half of the previous imbalance of 165 percent.
sive health care benefits and to limit the rapid growth
Table 3-3 also illustrates the importance of imple
of health care costs as a share of GDP. If enacted menting the cost-containment principle of health care
and implemented as proposed, this plan would substan reform. It estimates the lifetime net tax rates from
tially reduce the generational imbalance. Table 3-3 enacting the proposal but modified so that all govern
shows the lifetime net tax rates with health care re ment health care transfers grow from 2000 through
form. Health care reform would reduce the lifetime net 2020 at a rate that is 2 percentage points higher than
tax rate of future generations beyond the effect of warranted by demographic change and economy-wide
OBRA93—from 82 percent to 66 percent. Because esti productivity growth. In this case the generational im
mates of health care reform on taxes and spending balance is only reduced from 126 percent to 109 percent
were not available after 2000, this calculation is based instead of the 74 percent under the full Adininistration
on rough projections for subsequent years (as explained proposal.
in the technical note to this chapter). Medicare and
medicaid transfers after 2000 are assumed to grow at
Net Tax Payments by Different Generations
a similar rate as benefits under health reform, although
Tables 3-4 and 3-5 provide a complementary per
their spending is not directly limited by the plan. The
estimates do not include the premiums paid to the spective to lifetime net tax rates by showing the net
health alliances or the benefits financed by these pre tax payments for different generations in absolute
amounts solely for those taxes and transfers to be paid
miums.
Health care reform would increase the lifetime net or received in the future. These are the “generational
tax rates of all existing generations by decreasing the accounts” as defined previously in this chapter and as
lifetime transfers that they would be recorded as receiv emphasized in most presentations of generational ac
ing. This is because government health care spending counting. The generational accounts in the year of a
is recorded as a transfer from the government to those generation’s birth are the same as its lifetime net tax
individuals who receive the health care. However, one payments.
OBRA93 thus brought the lifetime net tax rates of
future generations and existing generations closer to
each other. The generational imbalance—defined as the
percentage difference in lifetime net tax rate between
future generations and the newly bom—was reduced
by about one-quarter, from 165 percent to 126 percent.
These calculations roughly show where the lifetime net
tax rates stand now. The generational imbalance re
mains large despite OBRA93. To a great extent this
is because the government’s health care spending is
projected to continue to rise rapidly relative to GDP
unless government policy changes to limit it.
26
ANALYTICAL PERSPECTIVES
TABLE 3-4. GENERATIONAL ACCOUNTS FOR MALES: PRESENT VALUE OF TAXES AND TRANSFERS, WITH OBRA93
(In thousands of dollars)
Taxes paid
Generation’s age in 1992
0 .................................................................................................................................................
5 ........................................................................................
1 0 ......................................................................................
1 5 ......................................................................................
2 0 ......................................................................................
2 5 ......................................................................................
3 0 ......................................................................................
3 5 ......................................................................................
4 0 ......................................................................................
4 5 ......................................................................................
5 0 ......................................................................................
5 5 ......................................................................................
6 0 ......................................................................................
6 5 ......................................................................................
7 0 ......................................................................................
7 5 ......................................................................................
8 0 ......................................................................................
8 5 ......................................................................................
9 0 ......................................................................................
Future generations............................................................
Percentage difference in net tax payment: future generations and age zero.......................................................
Net tax payment
Labor income
taxes
Capital income
taxes
Transfers received
Payroll taxes
78.4
99.3
124.8
157.2
187.7
203.0
201.6
192.4
170.9
132.5
81.0
19.5
-43.9
-94.1
-98.6
-92.9
-79.4
-69.4
-11.6
177.1
32.2
41.3
52.6
67.1
80.8
88.2
87.8
84.5
77.2
64.9
49.6
32.7
17.5
6.2
2.5
1.2
0.6
0.3
7.9
10.1
12.9
16.6
21.0
25.2
30.2
36.1
40.8
43.5
44.0
42.2
38.9
34.3
27.1
18.2
9.2
—
—
—
—
—
Social security
Health
—
126.0
Excise taxes
34.7
44.6
56.9
72.8
88.2
96.7
96.5
' 93.2
85.4
72.0
55.2
36.6
19.6
6.9
2.9
1.3
0.7
0.3
30.2
35.6
41.3
47.4
51.4
52.2
51.4
50.4
49.4
46.7
42.8
37.8
32.2
26.9
21.5
16.4
11.5
7.9
1.7
6.8
8.6
10.3
11.9
13.3
16.4
20.1
25.2
31.7
39.8
50.4
63.7
80.4
90.6
82.7
69.0
52.0
39.4
6.9
16.2
19.1
22.7
27.3
31.0
33.0
34.7
37.9
42.3
47.5
53.6
60.2
66.7
73.4
66.1
57.8
47.2
37.5
6.4
Welfare
3.6
4.6
5.9
7.6
9.2
9.9
9.4
8.7
8.0
7.2
6.5
5.8
5.1
4.4
3.8
3.2
2.2
1.0
—
—
—
—
—
TABLE 3-5. GENERATIONAL ACCOUNTS FOR FEMALES: PRESENT VALUE OF TAXES AND TRANSFERS, WITH OBRA93
(In thousands of dolars)
Taxes paid
Generation’s age in 1992
0 ......................................................................
5 ........................................................................................
1 0 ......................................................................................
1 5 ......................................................................................
2 0 ......................................................................................
2 5 ......................................................................................
3 0 ......................................................................................
3 5 ......................................................................................
4 0 ......................................................................................
4 5 ......................................................................................
5 0 ......................................................................................
5 5 ......................................................................................
6 0 ......................................................................................
6 5 ......................................................................................
7 0 ......................................................................................
7 5 ......................................................................................
8 0 ......................................................................................
8 5 ......................................................................................
9 0 ......................................................................................
Future generations............................................................
Percentage difference in net tax payment: future genera
tions and age zero .......................................................
Net tax payment
Labor income
taxes
Transfers received
Payroll taxes
44.1
54.8
67.3
82.5
96.9
101.5
96.9
87.8
69.1
39.7
2.4
-40.2
-86.3
-122.5
-124.6
-117.9
-100.5
-79.3
-11.3
99.6
16.6
21.3
27.1
34.4
40.7
42.1
39.5
36.3
31.5
25.1
18.1
11.6
6.0
2.2
0.9
0.4
0.2
0.1
8.4
10.8
13.8
17.7
22.3
27.3
32.2
37.3
40.5
41.4
40.2
38.1
34.9
29.5
20.7
11.4
4.3
18.0
23.0
29.4
37.5
44.6
46.2
43.5
40.0
34.9
27.8
20.2
13.0
6.8
2.4
1.0
0.5
0.2
0.1
—
—
126.0
—
—
—
Excise taxes
Social security
Health
Welfare
—
The amounts in these tables are the generational
accounts as of calendar year 1992 for every fifth genera
tion alive in that year. The first column, “net tax pay
ment,” is the difference between the present value of
taxes that a member of each generation will pay, on
average, over his or her remaining life and the present
value of the transfers he or she will receive. The other
columns show the average present values of different
taxes and transfers. As with the lifetime net tax rates,
Capital income
taxes
29.2
34.2
39.3
44.5
48.0
49.1
49.0
48.9
47.8
45.4
41.5
37.0
31.8
26.6
21.7
16.5
12.1
9.2
1.6
6.4
8.1
9.7
11.1
12.4
15.4
18.9
23.7
29.9
37.9
48.4
62.0
79.2
88.4
81.4
69.1
54.1
39.9
5.9
13.1
15.5
18.6
22.6
25.8
29.4
33.4
39.1
46.6
55.3
64.1
73.9
83.2
91.6
84.6
75.2
61.2
47.1
6.7
8.6
11.0
14.0
17.9
20.5
18.5
15.0
11.9
9.1
6.8
5.2
4.1
3.5
3.1
2.8
2.4
2.0
1.6
0.3
—
—
—
—
all Federal, State, and local taxes and transfers are
included in these calculations. Federal spending and
receipts include the effects of OBRA93.
Remaining net tax payments by existing genera
tions.—The present value of the future taxes to be
paid by the young and middle aged generations is much
more than the present value of the future transfers
they will receive. For males who were age 40 in 1992,
for example, the present value of future taxes is
3. GENERATIONAL ACCOUNTING
$171,000 more than the present value of future trans
fers. The amounts are large because these generations
are close to their peak tax paying years. For newborn
males, on the other hand, the present value of the
net tax payment is much smaller, $78,000, because they
will not pay much in taxes for a number of years.
The older generations, who are largely retired, will
receive more social security, medicare, and other future
benefits than they will pay in future taxes. That is,
they have negative net tax payments. Females have
smaller net tax payments than males, mostly because
they earn less income and therefore pay less income
and social security taxes.
Since the figures in these tables show the remaining
lifetime net tax payments of particular generations,
they do not include the taxes a generation paid in the
past or the transfer payments it received in the past.
This needs to be kept in mind in considering the net
tax payments by those now alive. The portion of a gen
eration’s lifetime net tax payments that is remaining
depends on whether it is 10, 40, or 65 years old. The
fact that 40 year-old males can expect to pay more
in the future than they receive, in present value terms,
while the reverse is true for 65 year-old males, does
not mean that the Federal, State, and local govern
ments are treating 40 year-old males unfairly. Males
who are now 65 paid substantial taxes when they were
younger, and these past taxes are not included in the
remaining lifetime net tax payments shown in their
generational accounts. Therefore, the remaining lifetime
net tax payment by one existing generation cannot be
directly compared with that of another. The lifetime
net tax payments of existing generations can be com
pared, however, using the lifetime net tax rates pre
sented previously.
Tables 3-4 and 3-5 also show the different
generational effects of various taxes and transfers. For
example, the present value of future labor income taxes
and payroll taxes is much higher for the generations
under 60 than for older generations, whereas the
present value of future capital income taxes and excise
taxes is higher for the generations under 60 but not
by so much. This is because the elderly tend to be
retired from the labor force but still own homes and
buy goods and services subject to property tax, sales
tax, and other excises. As another example, the present
value of social security and health care transfers is
much higher for the elderly than the young and middle
aged, because these kinds of transfers are made largely
to the elderly and thus are discounted in the calcula
tions over a relatively few years. Welfare benefits, on
the other hand, provide relatively large benefits to the
young, so the present value of these benefits is higher
for these age groups than for others.
Net tax payments by future generations.—Future
generations—those bom in 1993 and later—are esti
mated to make a 126 percent larger net tax payment
to the government, on average, than those bom in 1992.
The $177,000 average net tax payment by future males
and the $100,000 average net tax payment by future
27
females are calculated assuming that the ratio of net
tax payments by males to that of females is the same
for future generations as those bom in 1992.
The calculations also assume that all people of a par
ticular sex bom in the future will make the same aver
age net tax payment over their lifetimes after adjusting
for overall productivity growth in the economy. A
growth adjustment is needed to the average net tax
payment because future generations will pay more in
taxes, net of the transfers they receive, simply because
their incomes will be higher. This does not represent
a heavier fiscal burden. To properly assess the net tax
payment by future generations relative to the newly
bom, it is necessary to calculate the net payment they
would make above and beyond the amount due to eco
nomic growth. The generational accounts assume that
all future generations pay the same net taxes apart
from the effect of growth. This net tax is the number
shown in the table for all future generations of the
same sex.
OBRA93 and health care reform.—Table 3-6 dis
plays the generational accounts for the three policy re
gimes previously evaluated using lifetime net tax rates:
a baseline before the enactment of OBRA93, estimates
including OBRA93 (as shown with more detail in tables
3-4 and 3-5), and estimates including both OBRA93
and health care reform.
This table is a different way of viewing the
generational effects of policy changes and complements
the effects revealed in table 3-3 on lifetime net tax
rates. OBRA93 and health care reform substantially
reduce the generational imbalance between future gen
erations and living generations. The net tax payments
of future generations (in present value) are reduced
by both policies. The net tax payment for future genera
tions of males is lowered by $25,000 by OBRA93 and
$32,000 by health care reform; for females, by $14,000
and $20,000, respectively. Each existing generation
pays a larger net amount in present value, but not
by as much as the reduction for future generations.
For example, 50 year-old males pay $5,000 more due
to OBRA93 and $10,000 more due to health care re
form. As explained above, the lower transfer payments
received under health care reform do not represent less
health care to the extent they reflect a more efficient
health care system.
International Comparisons
The Italian and Norwegian governments have pre
pared generational accounts to examine the long-term
sustainability of their fiscal policies,7 and the Japanese
government is in the process of estimating generational
accounts for Japan.
7 See Daniele Franco, Jagadeesh Gokhale, Luigi Guiso, Laurence J. Kotlikoff, and Nicola
Sartor, "Generational Accounting—The Case of Italy,” Report to the Bank of Italy (January
1991) and Boston University Department of Economics, The Ruth Pollack Working Paper
Series on Economics, no. 18 (January 1990); and Alan J. Auerbach, Jagadeesh Gokhale,
Laurence J. Kotlikoff, and Erling Steigum, Jr., “Generational Accounting in Norway: Is
Norway Overconsuming Its Petroleum Wealth?,” Report to the Norwegian Research Council
for Applied Social Science (October 1993) and Boston University Department of Economics,
The Ruth Pollack Working Paper Series on Economics, no. 24 (October 1993).
28
ANALYTICAL PERSPECTIVES
TABLE 3-6. GENERATIONAL ACCOUNTS UNDER DIFFERENT POLICIES
(In thousands of dollars)
Before OBRA93
After OBRA93
With health care reform
Health care reform but faster cost
Generation's Age in 1992
Males
0 ...............................................................
5 ........................................................................................
1 0 ......................................................................................
1 5 ......................................................................................
2 0 ......................................................................................
2 5 ......................................................................................
3 0 ......................................................................................
3 5 ......................................................................................
4 0 ......................................................................................
4 5 ......................................................................................
5 0 ......................................................................................
5 5 ......................................................................................
6 0 ......................................................................................
6 5 ......................................................................................
7 0 ......................................................................................
7 5 ......................................................................................
8 0 ......................................................................................
8 5 ......................................................................................
9 0 ......................................................................................
Future generations...........................................................
Percentage difference in net tax payments: future gen
erations and age zero..................................................
Males
76.4
96.8
121.6
153.2
183.0
197.8
196.2
186.9
165.2
127.0
75.9
14.7
-48.4
-98.1
-101.9
-95.3
-80.9
-70.4
- 11.6
202.5
42.9
53.3
65.5
80.3
94.2
98.4
93.4
84.0
65.0
35.4
- 2.0
-44.8
-91.2
-127.1
-128.4
-120.9
165.1
165.1
-
102.6
-80.7
-11.3
113.8
Italy has changed its fiscal policies since the
generational accounts were constructed for 1990, and
therefore the estimates for Italy will not be displayed
in a table. The 1990 accounts, however, showed the
Italian generational imbalance to be two to three times
greater than the U.S. imbalance after OBRA93.
This result was primarily due to three factors. First,
Italy’s ratio of government debt to GDP was almost
twice that of the United States. Second, its transfer
payments were roughly twice as large as those in the
United States, relative to GDP, while its taxes were
Males
Females
83.2
104.8
130.8
163.8
194.7
210.2
209.3
200.9
180.3
142.6
91.1
29.3
-35.0
-87.6
-94.2
-90.3
-77.9
-68.9
177.1
44.1
54.8
67.3
82.5
96.9
101.5
96.9
87.8
69.1
39.7
2.4
-40.2
-86.3
-122.5
-124.6
-117.9
-100.5
-79.3
-11.3
99.6
144.7
45.8
56.5
68.9
84.3
100.1
106.5
103.8
96.7
80.1
52.1
15.2
-27.4
-74.4
-113.2
-118.0
-114.0
-98.2
-78.5
-11.3
79.7
79.3
100.3
126.0
158.7
189.5
204.9
203.9
195.2
174.4
137.1
87.0
27.5
-35.5
-87.0
-93.2
-89.4
-77.5
-68.9
- 11.6
165.6
42.2
52.5
64.6
79.6
95.0
101.0
97.9
90.2
73.0
45.1
9.4
-30.9
-76.3
-113.4
-116.9
-112.5
-97.4
-78.5
-11.3
88.2
126.0
126.0
73.9
73.9
108.8
108.8
78.4
99.3
124.8
157.2
187.7
203.0
201.6
192.4
170.9
132.5
81.0
19.5
-43.9
-94.1
-98.6
-92.9
-79.4
-69.4
-
11.6
-
11.6
Females
only one-quarter larger. Consequently, relative to GDP,
the current net tax payments of existing generations
were lower than in the United States. Third, Italy is
aging more rapidly. Given that annual net tax pay
ments fall with age in both countries, an aging popu
lation means that in future years the existing genera
tions will make lower aggregate net tax payments. Fur
thermore, government purchases were nearly as large
as in the United States. The combination of these fac
tors produces a relatively large net tax to be paid by
future generations of Italians.
TABLE 3-7. U.S. AND NORWEGIAN GENERATIONAL ACCOUNTS
(In thousands of dollars)
United States
Norway
Generation’s age in 1992
Males
0 .....................................................................................
5 .................................................................................................................................
1 0 ................................................................................................................................
1 5 ................................................................................................................................
2 0 ................................................................................................................................
2 5 ................................... ............................................................................................
3 0 ................................................................................................................................
3 5 ................................................................................................................................
4 0 ................................................................................................................................
4 5 ................................................................................................................................
5 0 ................................................................................................................................
5 5 ................................................................................................................................
6 0 ................................................................................................................................
6 5 ................................................................................................................................
7 0 ................................................................................................................................
7 5 ................................................................................................................................
8 0 ................................................................................................................................
8 5 ................................................................................................................................
9 0 ................................................................................................................................
Future generations.....................................................................................................
Percentage difference in net tax payments: future generations and age zero..........
78.4
99.3
124.8
157.2
187.7
203.0
201.6
192.4
170.9
132.5
81.0
19.5
-43.9
-94.1
-98.6
-92.9
-79.4
-69.4
-11.6
177.1
126.0
Females
44.1
54.8
67.3
82.5
96.9
101.5
96.9
87.8
69.1
39.7
2.4
-40.2
-86.3
-122.5
-124.6
-117.9
-100.5
-79.3
-11.3
99.6
126.0
Males
104.7
127.6
154.6
186.1
214.5
237.9
241.0
225.6
198.8
157.5
105.4
46.6
-14.2
-57.8
-61.1
-68.3
-50.4
-36.0
-26.1
178.2
68.9
Females
47.7
52.6
57.4
63.6
66.1
67.3
62.0
59.7
54.1
35.1
6.8
-24.7
-60.3
-71.6
-71.1
-66.8
-54.0
-43.2
-34.8
81.2
68.9
29
3. GENERATIONAL ACCOUNTING
Norway's generational accounts are compared in table
3-7 with those of the United States after OBRA93.
Because of its large petroleum and hydroelectric wealth,
the Norwegian government has positive net wealth
equal to roughly 20 percent of GDP. Norway is aging
at about the same rate as the United States. Its govern
ment purchases are almost 40 percent greater than in
the United States, relative to GDP, and its transfer
payments are about 60 percent greater. However, Nor
wegian gross taxes are higher, and Norwegian net tax
payments relative to GDP are about 50 percent greater.
As a result, the Norwegian primary deficit—expendi
tures, other than interest, less taxes—is smaller rel
ative to GDP than in the United States.
The large government net wealth in Norway and the
lower primary deficit relative to GDP have led to a
smaller generational imbalance than in the United
States. Table 3-7 estimates the imbalance to be 69
percent in Norway, just over half the U.S. amount.
The absolute net tax payment by future generations
is similar in the two countries, but the higher net tax
payment by existing Norwegians produces a lower im
balance.
TECHNICAL NOTE: CONSTRUCTION OF THE GENERATIONAL ACCOUNTS
The Present Value Constraint
Generational accounting is based on the present
value budget constraint of the government sector. In
simple terms, this constraint says that the government
must ultimately pay for its purchases of goods and serv
ices with resources it obtains from current and future
generations or with its current assets (net of debt).
If current generations pay less in taxes (net of transfers
received) to finance government purchases, future gen
erations will have to pay more.
This does not mean that the government ever has
to fully retire its debt at any point in time. What it
does require is that the government pay the interest
on its debt through the net taxation of existing or fu
ture generations (or with its current assets). For exam
ple, suppose that through borrowing the payments for
the government's bills were repeatedly shifted to future
generations by each successive current generation.
Then this debt would grow, with interest. Eventually
the interest on this debt would exceed the lifetime in
come of futxire generations, which would result in de
fault.
More precisely, the government's present value con
straint says that, at any point in time, the present
value of the government's future purchases of goods
and services cannot exceed the sum of three items:
(1) the present value of future taxes to be paid (net
of transfers received) by existing generations (i.e., the
sum of their generational accounts multiplied by the
number of people in each generation), (2) the present
value of taxes to be paid (net of transfers received)
by future generations, and (3) the value of government
assets that yield income, less the government debt.
Generational accounting estimates the present value of
the government's purchases of goods and services and
the amounts (1) and (3). Amount (2), the present value
of taxes to be paid by all future generations (net of
transfers received), is calculated as the present value
of future government purchases minus amounts (1) and
(3).
The generational accounts for future generations are
derived from the aggregate amount (2). For the illustra
tions in this chapter, different net tax payments (after
adjusting for economic growth) are not estimated for
150-003 0 -9 4 -2
(QL 3)
different futxire generations. Rather, the aggregate
present value net tax payment by future generations
is divided on an even basis among all future genera
tions in such a way that the average net tax payment
by the members of each generation keeps pace with
the economy's growth in productivity. Thus, as shown
in tables 3-4 and 3-5, one single (growth adjusted)
average figure stands as the generational account for
all future generations of a given sex. Because the
generational account for future generations is cal
culated indirectly from the above aggregates, it can only
be shown as a single number and cannot be divided
among specific taxes and transfers.
The lifetime net tax rate of future generations is
the ratio of the present value of total net tax payments
by future generations to the present value of total labor
income earned by future generations. This calculation
is made under the assumption that labor income in
creases at the same rate as the economy's growth in
productivity.
The Underlying Calculations
The calculation of the generational accounts is a
three-step process. The first step entails projecting each
currently living generation's average taxes and trans
fers to each future year in which at least some member
of the generation will be alive. The second step converts
these projected average taxes and transfers into an ac
tuarial present value, using assumptions for the dis
count rate and the probability that the generation's
members will be alive in each future year. The sum
of these present values, with transfers subtracted from
taxes, is the generational account or “net tax payment”
for existing generations shown in the first column of
tables 3-4 and 3-5. The third step is to estimate the
other terms of the present value constraint explained
in the previous section so as to derive the average
net tax payment by future generations. The calculations
are based on projections to 2200.
Projection o f taxes and transfers.—The projection
of average futxire taxes and transfers begins with the
national totals of all Federal, State, and local taxes
and transfers as reported by the national income and
product accoxints (NIPAs) for calendar year 1992. (All
30
years in this chapter are calendar years unless other
wise stated.) The relationship of the NIPA data to the
Federal budget is described in Chapter 19 of this vol
ume. Employee retirement and veterans benefits paid
by government are considered a form of employee com
pensation and classified as the purchase of a service
rather than a transfer payment.
The base year NIPA totals are distributed to all exist
ing generations, as defined by age and sex, based on
the corresponding distributions in cross-section survey
data. These surveys include the Survey of Income and
Program Participation by the Bureau of the Census,
the Survey of Consumer Expenditures by the Bureau
of Labor Statistics, the Survey of Consumer Expendi
tures by the Federal Reserve, and the Current Popu
lation Survey by the Bureau of the Census. Those taxes
not directly paid by persons and so not appearing in
these surveys, such as the corporation income tax, are
allocated. Since generational accounting attributes
taxes and transfers to individuals, household taxes and
transfers are attributed to the individuals in the house
hold. No special imputations are made to children, but
the cross-section surveys impute some consumption to
children and the taxes on that consumption would be
attributed to the children. The attribution rules affect
the values of the baseline accounts but are not likely
to alter the generational implications of policy changes.
The distribution of average taxes and transfers by
age and sex in the future is adjusted for growth and
projected policy. In the case of Federal taxes and trans
fers for 1993-2004, the projected aggregate amounts
are the estimates of outlays and receipts in the MidSession Review of the 1994 Budget (September 1993),
extended beyond 1998 and updated for the actual fiscal
year 1993 results. (Adjustments were made to remove
the effects of OBRA93 for the base case.) These
amounts are distributed by age and sex according to
the age-sex relative profiles for these transfers and re
ceipts based on the cross-section surveys cited above.
In the case of State and local taxes and transfers for
1993-2004 (other than medicaid transfers), the aggre
gate amounts are based on the GDP projections in the
Mid-Session Review and the assumption that the ratios
of State and local tax and transfer aggregates to GDP
remain constant at the 1992 levels. After 2004 the aver
age Federal, State, and local taxes (except the social
security payroll tax) and transfer payments (except so
cial security, medicare, and medicaid) by age and sex
are projected to increase at the assumed rate of produc
tivity growth. Productivity (both labor and multi-factor
productivity) is assumed to increase at 0.75 percent
a year, which is close to the average annual rate of
labor productivity growth since 1970.
Social security transfer payments and payroll tax re
ceipts after 2004 are based on special calculations made
by the Social Security Administration assuming a pro
ductivity growth rate of 0.75 percent. These calculations
otherwise follow the social security intermediate alter
native II assumptions. Except under the health care
reform scenario, medicaid transfers from 1993 through
ANALYTICAL PERSPECTIVES
2030 and medicare transfers from 2005 through 2030
are projected using the medicaid and medicare growth
rates in the Health Care Financing Administration mid
dle scenario estimates published in 1991.8 After 2030,
health care transfers are assumed to stabilize as a per
centage of GDP apart from the effect of changes in
the composition of the population by age and sex.
The effects of health care reform on taxes and trans
fers were projected through 2000 using Administration
estimates. Since estimates were not available after
2000, rough projections were made for subsequent
years. Health care reform spending was increased by
a one-time level adjustment in 2001 to take account
of a scheduled expansion in the standard benefit pack
age. After 2001, it was assumed to grow at the same
rate as productivity apart from changes in the composi
tion of the population by age and sex. Medicare and
medicaid transfers after 2000 are not directly limited
by the health care reform plan but were also projected
to grow at the same rate as productivity apart from
changes in the composition of the population by age
and sex.
Assumptions for present value.—The appropriate
discount rate for calculating the present value of future
amounts depends on whether or not these amounts are
known with certainty. Future government receipts and
expenditures are risky, which suggests that they be
discounted by a rate higher than the real rate of inter
est on government securities. On the other hand, gov
ernment receipts and expenditures appear to be less
volatile than the real return on capital, which suggests
that they be discounted by a lower rate than that.
The calculations assume a 6 percent real discount rate,
which is intermediate between the average real return
available in recent years on short-term Treasury securi
ties and the real return available in recent years on
capital.
The present values of future average taxes and trans
fers are also discounted for mortality probabilities in
order to derive actuarial present values. The demo
graphic probabilities through 2066 are those embedded
in the social security trustees’ intermediate projection
in 1992 (alternative II) of the population by age and
sex. The fertility, mortality, and immigration prob
abilities in 2066 were used for later years. Immigration
is treated as equivalent to a change in mortality.
Other projections.—Federal purchases of goods and
services through 2004, like Federal taxes and transfers,
are from the latest Mid-Session Review extended be
yond 1998 and updated for the actual fiscal year 1993
results. State and local purchases through 2004 are
kept at the same ratio to GDP as in 1992. Federal,
State, and local purchases after 2004 were divided be
tween (1) those made on behalf of specific age groups—
the young, middle aged, and elderly—such as edu
cational expenditures; and (2) those that are more near
p ^ 3 Il?f8CenaIL0 18
in ^
Sonnefeld and 0ther8’ "Projections of National Health
Expenditures through the Year 2000,” Health Care Financing Review (vol. 13, Fall 1991).
3. GENERATIONAL ACCOUNTING
ly pure public goods, such as defense and public safety.
Purchases per person in each of the three age groups,
and purchases of public goods per capita, all increase
at the assumed rate of productivity growth.
The economic value of the government’s assets that
yield income, less the government debt, was estimated
to be the cumulative amount of the NIPA deficit since
1900 converted to constant dollars by the GDP deflator.
No account was taken of the government’s land and
mineral rights.
The average growth-adjusted net tax payment to be
made by future generations was determined using the
aggregate present value of the net tax payment (as
derived through the present value budget constraint),
the assumed productivity growth, and the projected size
of future generations. The size of future generations
was estimated using the social security alternative II
projection through 2066 and the demographic assump
tions for 2066 applied to later years.
Historical lifetime net tax rates.—Lifetime net tax
rates for generations bom between 1900 and 1992 were
calculated by dividing the generational account of each
generation at birth by its human wealth—the present
value at birth of its future labor earnings. The calcula
tion of a generation’s human wealth requires knowing
its average labor earnings in each future year. The
average labor earnings received by particular genera
tions in particular years was determined by distributing
aggregate labor income by age and sex using crosssection distributions of labor income found in crosssection survey data. The lifetime generational accounts
for generations bom between 1900 and 1992 are based
on actual taxes and transfers from 1900 through 1992
and projected taxes and transfers in years after 1992.
Aggregate labor earnings, taxes, and transfers were
obtained from the national income and product accounts
for 1929 and later years. Pre-1929 aggregate labor earn
ings were from series in Historical Statistics of the
United States, Colonial Times to 1970. Pre-1929 taxes
31
and transfers were from the 1982 Census of Govern
ments, Historical Statistics on Government Finances
and Employment. Various cross-section surveys were
used to distribute aggregate labor earnings, taxes, and
transfers by age and sex. Cross-section surveys prior
to the early 1960s were not available for this study,
so surveys from years after 1960 were used for earlier
years. The Current Population Surveys were used to
distribute aggregate labor earnings and taxes on labor
earnings in 1964 and later years, and the 1964 survey
was used for earlier years.
Differences in projections from January 1993
Budget Baselines.—The imbalance in the lifetime net
tax rate between future generations and the genera
tions bom in 1992 is estimated to be 165 percent in
the baseline before taking account of OBRA93 and
health care reform. This is much higher than the 111
percent imbalance estimated a year ago between future
generations and the generations bom in 1991. Half of
this difference is due to incorporating the Health Care
Financing Administration’s projection of medicaid
transfers through 2004 instead of assuming that these
transfers remained constant relative to GDP at the last
actual ratio. If last year’s method had been used this
year, the reported imbalance this year would have been
145 percent. Part of the increase from 111 percent to
145 percent is because one more generation, those bom
in 1992, does not make the higher lifetime net tax
payments required of future generations. As a result,
the generations bom after 1992 have still larger bills
to pay. This effect accounts for about 8 percentage
points of the increase. Of the remaining increase, a
little less than half reflects the use of actual 1992 ag
gregate taxes, transfers, and purchases instead of pro
jections; and the rest is due to improvements in the
cross-section profiles used to distribute taxes and trans
fers by age and sex and to interactions among the var
ious factors.
FEDERAL RECEIPTS AND COLLECTIONS
4. 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.
Growth in receipts.—Total receipts in 1995 are esti
mated to be $1,353.8 billion, an increase of $104.7 bil
lion or 8.4 percent relative to 1994. This increase is
largely due to assumed increases in incomes resulting
from both real economic growth and inflation. However,
it is also attributable, in part, to enactment of the Om
TABLE 4-1.
nibus Budget Reconciliation Act of 1993 (OBRA93),
which is estimated to increase 1995 receipts $21.0 bil
lion relative to 1994, and the effect of the Health Care
Security Act and other Administration proposals, which
are estimated to increase 1995 receipts by a net $12.2
billion. Receipts are projected to grow at an average
annual rate of 5.4 percent between 1995 and 1999,
to $1,672.9 billion.
As a share of GDP, receipts are projected to rise
from 18.8 percent in 1994 to 19.3 percent in 1995, and
to decline slightly to 19.1 percent in 1999.
RECEIPTS BY SOURCE-SUMMARY
(In billions of dollars)
Source
Estimate
1993 actual
1994
1995
1996
1997
1998
1999
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.................................................................
509.7
117.5
428.3
(116.4)
(311.9)
48.1
12.6
18.8
18.6
549.9
130.7
461.9
(125.7)
(336.2)
54.6
12.7
19.2
20.0
595.0
140.4
490.4
(135.2)
(355.2)
71.9
13.9
20.9
21.3
627.7
145.8
518.3
(143.6)
(374.7)
71.7
15.0
21.3
27.6
664.1
149.8
548.5
(151.0)
(397.5)
72.7
16.1
22.2
31.6
701.6
152.5
580.0
(158.6)
(421.4)
73.6
17.3
23.1
38.7
745.1
157.2
610.2
(165.0)
(445.1)
74.9
18.5
24.0
43.1
Total receipts.........................................................................
(On-budget).........................................................................
(Off-budget).........................................................................
1,153.5
(841.6)
(311.9)
1,249.1
(912.9)
(336.2)
1,353.8
(1 98.6)
9
(355.2)
1,427.3
(1,052.6)
(374.7)
1,505.1
(1,107.6)
(397.5)
1,586.9
(1,165.5)
(421.4)
1,672.9
(1,227.8)
(445.1)
TABLE 4-2. CHANGES IN RECEIPTS
(In billions of dollars)
Estimate
1994
1995
1996
1997
1998
1999
Receipts under tax rates and structure in effect January 1 ,19931 ..................................................
Enacted legislative changes:
Omnibus Budget Reconciliation Act of 19932 .................................................................................
North America Free Trade Agreement Implementation Act2 ..........................................................
Social security (OASDI) taxable earnings base increases:
$57,600 to $60,600 on Jan. 1,1994 .......................................................................................
$60,600 to $62,100 on Jan. 1,1995 .......................................................................................
$62,100 to $63,900 on Jan. 1,1996 .......................................................................................
$63,900 to $66,600 on Jan. 1,1997 .......................................................................................
$66,600 to $69,300 on Jan. 1,1998 .......................................................................................
$69,300 to $72,300 on Jan. 1,1999 .......................................................................................
Proposals2 ..............................................................................................................................................
1,224.0
1,292.8
1,352.4
1,405.2
1,478.7
1,555.5
24.3
-0.1
45.3
-0.1
52.5
-0.2
65.9
-0.1
58.3
1.2
57.9
-1.6
1.0
3.1
0.5
3.4
1.5
0.7
3.9
1.8
2.0
1.0
4.4
2.0
2.2
3.1
1.1
-0.1
12.2
16.9
25.5
35.9
5.0
2.2
2.5
3.4
3.1
1.2
43.7
Total, receipts under existing and proposed legislation...........................................................
1,249.1
1,353.8
1,427.3
1,505.1
1,586.9
1,672.9
1 These
estimates assume social security and medicare taxalbe earnings bases of $57,600 and $135,000, respectively, through 1999.
2 Net of income offsets.
35
36
ANALYTICAL PERSPECTIVES
ENACTED LEGISLATION
The Omnibus Budget Reconciliation A ct o f
1993.—This Act, which achieved the largest deficit re
duction in our Nation’s history, was signed by President
Clinton on August 10, 1993. By providing substantial,
fair, and balanced deficit reduction, it represented a
vital first step toward economic renewal and growth
in jobs and higher living standards for families today
and in the future. Roughly half of the deficit reduction
provided in the Act came from tax increases; 80 percent
of these increases from households making over
$200,000—the top 1.3 percent of the population. Almost
twenty million low-income working families are receiv
ing a tax cut, while only the 1.4 million most welloff American households are paying higher income
taxes. The major revenue provisions of the Act are de
scribed below.
Stimulus/Investment
Provide capital gains exclusion for certain small busi
ness stock.—A noncorporate taxpayer who holds quali
fied small business stock for more than 5 years is al
lowed to exclude 50 percent of any gain on the sale
or exchange of the stock. The amount of gain eligible
for the 50 percent exclusion is limited to the greater
of 10 times the taxpayer’s basis in the stock or $10
million in gain from the sale of stock in that corpora
tion. This exclusion applies to stock issued after August
10, 1993.
Modify minimum tax depreciation rules.—A corporate
taxpayer is subject to an alternative minimum tax of
20 percent on minimum taxable income in excess of
an exemption amount. Alternative minimum taxable in
come is the taxpayer’s taxable income increased by cer
tain tax preferences and adjustments. Effective for
property placed in service after December 31, 1993, de
preciation is no longer an adjustment to taxable income
in determining alternative minimum taxable income.
Increase expensing deduction for small business.—Ef
fective for property placed in service in taxable years
beginning after December 31, 1992, the amount a tax
payer is allowed to expense under section 179 is in
creased from $10,000 to $17,500.
Expand and simplify earned income tax credit
(EITC).—For eligible taxpayers with one qualifying
child, the EITC is increased to 26.3 percent of the first
$7,750 of earned income in 1994, for a maximum credit
of $2,038. The credit is reduced by 15.98 percent of
earned income (or adjusted gross income, if greater)
in excess of $11,000. For 1995 and thereafter, the credit
rate increases to 34 percent; the phase-out rate remains
at 15.98 percent. For taxpayers with two or more quali
fying children, the EITC is 30 percent of the first
$8,425 of earned income in 1994, for a maximum credit
of $2,527. The credit is reduced by 17.68 percent of
earned income (or adjusted gross income, if greater)
in excess of $11,000. The credit rate increases to 36
percent for 1995 and to 40 percent for 1996 and subse
quent years. The phase-out rate increases to 20.22 per
cent for 1995 and to 21.06 percent for 1996 and subse
quent years. The EITC is extended to low-income work
ers who do not have any qualifying children if they
are between the ages of 25 and 65 and cannot be
claimed as a dependent on another taxpayer’s return.
For these taxpayers, the EITC is 7.65 percent of the
first $4,000 of earned income in 1994, for a maximum
credit of $306. The maximum credit is reduced by 7.65
percent of earned income above $5,000. Beginning in
1995, all maximum income levels on which the EITC
may be claimed and all income thresholds for the
phaseout of the EITC are indexed for inflation. The
supplemental young child credit and the supplemental
health insurance credit of prior law are repealed.
Modify passive loss rules for certain real estate per
sons.—Effective with respect to taxable years beginning
after December 31, 1993, the rental real estate income
and losses of a taxpayer who materially participates
in rental real estate activities is no longer subject to
the passive loss rules that limit deductions and credits
from passive trade or business activities.
Increase recovery period for depreciation of nonresidential real property.—Effective with respect to prop
erty placed in service on or after May 13, 1993, the
period over which a taxpayer may recover the cost or
other basis of the property through depreciation is in
creased from 31.5 to 39 years. The provision does not
apply to property placed in service before January 1,
1994 if a binding contract to purchase or construct the
property had been entered into prior to May 13th or
if construction had commenced prior to that date.
Provide tax benefits for empowerment zones and enter
prise communities.—Certain tax benefits will be pro
vided for nine empowerment zones and 95 enterprise
communities designated during 1994 and 1995. Six
empowerment zones and 65 enterprise communities will
be located in eligible urban areas and three empower
ment zones and 30 enterprise communities will be lo
cated in rural areas. The tax incentives will be avail
able during the period that the designation remains
in effect, which generally will be 10 years.
Extend eocclusion for employer-provided educational
assistance.—The exclusion for certain amounts paid by
an employer for educational assistance provided to an
employee, which had expired with respect to amounts
paid after June 30, 1992, is extended retroactively from
July 1, 1992 through December 31, 1994.
Extend targeted jobs tax credit.—The targeted jobs
tax credit, which was available to employers who hire
individuals from several targeted groups, had expired
with respect to individuals hired after June 30, 1992.
This credit is extended retroactively from July 1, 1992
through December 31, 1994.
Extend research and experimentation (R&E) tax cred
it.—The 20 percent tax credit provided for certain re
search and experimentation expenditures, which had
expired with respect to expenditures made after June
4. FEDERAL RECEIPTS
30, 1992, is extended retroactively from July 1, 1992
through June 30, 1995.
Modify research and experimentation (R&E) alloca
tion rules.—Under prior law, companies with foreign
operations were allowed to allocate 64 percent of domes
tic R&E expenditures to their domestic operations and
64 percent of foreign R&E expenditures to their foreign
operations. The remaining expenses were to be allo
cated on the basis of gross sales or gross income. Effec
tive for the first taxable year beginning on or before
August 1, 1994 that follows the last taxable year to
which the prior law rules applied, the allowable per
centages are reduced to 50 percent.
Extend tax exemption for small issue manufacturing
bonds.—Prior to July 1, 1992, interest on certain small
issues of private activity bonds was exempt from tax
if at least 95 percent of the bond proceeds was used
to finance manufacturing facilities or certain land or
property for first-time farmers. The authority to issue
these bonds is permanently extended, with special
placed-in-service rules for the period July 1, 1992
through December 31, 1993.
Extend tax credit for orphan drug clinical testing ex
penses.—Under prior law, a 50 percent nonrefundable
tax credit was allowed for a taxpayer’s qualified clinical
testing expenses paid or incurred in the testing of cer
tain drugs, generally referred to as orphan drugs, for
rare diseases or conditions. This credit, which expired
with respect to expenses incurred after June 30, 1992,
is extended for 30 months, from July 1, 1992 through
December 31, 1994.
Extend tax exemption for qualified mortgage bonds.—
The proceeds of qualified mortgage bonds are used to
finance the purchase, rehabilitation or improvement of
single-family, owner-occupied residences located within
the jurisdiction of the issuer of the bonds. Qualified
governmental units may elect to exchange qualified
mortgage bond authority for authority to issue mort
gage credit certificates. These certificates entitle homebuyers to nonrefundable income tax credits for a speci
fied percentage of interest paid on mortgage loans on
their principal residence. This exemption, which had
expired with respect to bonds issued after June 30,
1992, is permanently extended retroactive to July 1,
1992.
Extend low-income housing tax credit.—A tax credit
is allowed in annual installments over ten years for
qualifying newly constructed or substantially rehabili
tated low-income rental housing. This credit is perma
nently extended effective with respect to expenditures
incurred on or after July 1, 1992. Under prior law,
the credit had expired with respect to expenditures in
curred after June 30, 1992.
Extend tax deduction for health insurance costs of
self-employed individuals.—Up to 25 percent of the
amount paid by a self-employed individual for health
insurance expenses incurred before July 1, 1992 was
deductible under prior law. This deduction is extended
for 18 months and applies to expenditures incurred on
or after July 1, 1992 through December 31, 1993.
37
Extend minimum tax exception for gifts of appreciated
tangible property.—Charitable contributions of tangible
personal property, such as art-work, are not treated
as a minimum tax preference item for purposes of com
puting alternative minimum taxable income. This provi
sion, which had expired with respect to gifts made after
June 30, 1992, is permanently extended retroactive to
July 1, 1992 for tangible property and to January 1,
1993 for all property.
Repeal luxury tax on yachts, aircraft, jewelry and
furs.—Effective for sales after January 1, 1993, the 10
percent excise tax on the retail price of yachts and
boats in excess of $100,000, and on the retail price
of jewelry and furs above $10,000 is repealed. In addi
tion, effective for sales on or after the date of enact
ment, the $30,000 threshold for the luxury excise tax
on automobiles is indexed annually for inflation.
Revenue Raisers—Individual Income Tax
Provisions
Increase top rates for high income individuals.—Effec
tive for taxable years beginning after December 31,
1992, the top individual income tax rate for individuals
and estates and trusts is increased from 31 to 36 per
cent. In addition, a 10 percent surtax is levied on indi
viduals with taxable income in excess of $250,000 and
on estates and trusts with taxable income in excess
of $7,500.
Modify alternative minimum tax for individuals.—
The tax rate on alternative minimum taxable income
in excess of the exemption amount, which had been
24 percent, is replaced with a two-tiered graduated rate
schedule of 26 and 28 percent. The exemption amount
is increased to $45,000 for married individuals filing
joint returns, to $33,750 for unmarried individuals, and
to $22,500 for married individuals filing separate re
turns and estates and trusts. These changes are effec
tive for taxable years beginning after December 31,
1992.
Extend limitation on itemized deductions and phase
out of personal exemptions.—The limitation on itemized
deductions and the phaseout of personal exemptions,
which were scheduled to expire after December 31,
1995 and December 31, 1996, respectively, are perma
nently extended.
Increase taxable portion of social security benefits.—
Under prior law, a portion of a taxpayer’s social secu
rity or railroad retirement tier 1 benefits was included
in gross income if the taxpayer’s provisional income
exceeded $25,000 for a single return and $32,000 for
a married couple filing a joint return. The amount in
cluded in gross income was the lesser of: (1) 50 percent
of the taxpayer’s social security or railroad retirement
tier 1 benefit, or (2) 50 percent of the excess of the
taxpayer’s provisional income over the applicable
threshold amount. Effective for taxable years beginning
after December 31, 1993, the threshold amounts are
increased to $34,000 for a single return and $44,000
for a married couple filing a joint return. In addition,
the amount included in gross income is the lesser of
38
85 percent of the taxpayer's social security or railroad
retirement tier 1 benefit, or 85 percent of the excess
of the taxpayer's provisional income over the applicable
threshold amount.
Repeal medicare health insurance (HI) wage base
cap.—Effective for wages and self-employment income
earned after December 31, 1993, the dollar limit on
income subject to HI taxes is repealed.
Reinstate top estate and gift tax rates.—Effective for
decedents dying, gifts made, and generation skipping
transfers occurring after December 31, 1992, the top
marginal tax rates of 53 percent (applicable to taxable
transfers greater than $2.5 million and less than or
equal to $3.0 million) and 55 percent (applicable to
taxable transfers over $3.0 million) are reinstated.
Reduce deductible portion of business meals and en
tertainment expenses.—The deductible portion of other
wise allowable business meals and entertainment ex
penses is reduced from 80 percent to 50 percent effec
tive for taxable years beginning after December 31,
1993. The Administration will monitor and consider
ways to ease the impact of this change.
Modify deduction for moving expenses.—Deductions
from gross income for certain costs associated with mov
ing to a new residence in connection with one's employ
ment are no longer allowed effective for such costs in
curred after December 31, 1993. Expenses no longer
deductible include: the costs of pre-move house hunting
trips and temporary living expenses, expenses associ
ated with selling the old residence and purchasing the
new residence, and the cost of meals consumed while
traveling to the new location. Also, in order to claim
a moving expense deduction, the taxpayer's new prin
cipal place of work must be at least 50 miles farther
from the taxpayer's former residence than was the tax
payer's former principal place of work.
Reduce pension compensation cap.—The limit on com
pensation taken into account under a tax-qualified pen
sion plan is reduced to $150,000, effective for benefits
accruing in plan years beginning after December 31,
1993.
Revenue Raisers—Business Provisions
Increase corporate tax rate.—Effective for taxable
years beginning on or after January 1, 1993, a new
top marginal tax rate of 35 percent is levied on cor
porate taxable income in excess of $10 million. The
35 percent rate also applies to net corporate capital
gains. A corporation with taxable income in excess of
$15 million is required to increase its tax liability by
the lesser of three percent of the excess or $100,000;
this recaptures the benefit of the 34 percent rate on
income less than or equal to $10 million.
Modify corporate estimated income tax rules.—To
avoid a penalty for underpayment of estimated tax, a
corporation must base its estimated tax payments on
100 percent of the tax shown on its return for the
current year. The 100 percent of last year's liability
safe-harbor provided to large and small corporations
under prior law remains in effect. This change is effec
ANALYTICAL PERSPECTIVES
tive for taxable years beginning after December 31,
1993.
Cap possessions tax credit.—Under prior law, certain
domestic corporations with business operations in the
U.S. possessions were allowed to elect the use of a
tax credit that generally eliminated U.S. tax on certain
income related to their operations in the possessions.
Effective for taxable years beginning after December
31, 1993, the credit allowed to a possession corporation
against U.S. tax on its active business income (income
derived from the active conduct of a possession-based
business, or from the sale of assets used in such a
business) is determined as under prior law, but is sub
ject to either of two alternative limitations. One alter
native limitation is based on factors that reflect the
corporation's economic activity in the possessions (the
economic activity limitation) and the other limitation
is based on a statutorily defined percentage of the cred
it that would be allowable under prior-law rules (the
percentage limitation).
Require securities dealers to mark to market.—This
provision conforms the accounting and tax treatment
of securities inventories by generally requiring that se
curities be included in inventory at their market value
effective for taxable years ending on or after December
31, 1993. The income attributable to this change is
included in income ratably over 5 years.
Revise foreign tax credit for oil and gas and shipping
income.—Prior law provided more favorable foreign tax
credit treatment for income associated with foreign oil
and gas or shipping activities than for income earned
abroad by other United States industries. Effective with
respect to income earned in taxable years beginning
after December 31, 1992, certain passive income related
to oil and gas and shipping operations is placed in
the passive category for foreign tax credit limitation
purposes. In addition, passive income related to foreign
oil and gas extraction is excluded from the computation
of the foreign oil and gas extraction income foreign
tax credit limitations.
Improve transfer pricing compliance.—Under prior
law, a “substantial'' valuation misstatement (the net
transfer pricing adjustment exceeds $10 million but is
less than $20 million), could result in a penalty of 20
percent of the understatement of tax. The penalty for
a “gross” valuation misstatement (the net transfer pric
ing adjustment is greater than or equal to $20 million)
was 40 percent. However, a net increase in taxable
income attributable to a price redetermination was dis
regarded, if it could be shown that there was a reason
able cause for the taxpayer's determination of the price,
and that the taxpayer acted in good faith with respect
to the price. Effective for taxable years beginning after
December 31, 1993, the threshold for a “substantial”
misstatement is lowered to the lesser of $5 million or
10 percent of gross receipts and the threshold for a
“gross” misstatement is the lesser of $20 million or
20 percent of gross receipts. In addition, penalties will
no longer be excused for reasonable cause and good
faith unless certain statutory requirements are met.
4. FEDERAL RECEIPTS
Revenue Raisers—Excise Taxes
Increase transportation fuels tax.—Effective October
1, 1993, an additional tax of 4.3 cents per gallon is
imposed on all transportation fuels. Taxable fuels in
clude motor fuels used for highway transportation or
in motorboats, gasoline used in aviation and in offhighway non-business uses, diesel fuel used in trains,
and fuels used in inland waterways transportation. In
creased revenues from this tax are retained in the Gen
eral Fund of the Treasury.
Extend current 2.5 cents per gallon motor fuels tax.—
Under prior law, a temporary 2.5 cents per gallon tax
was levied on gasoline, special motor fuels, and diesel
fuels used for highway transportation, in motor boats,
and in trains. Revenues from this tax, which was sched
uled to expire after September 30, 1995, were deposited
in the General Fund of the Treasury. This tax is ex
tended from October 1, 1995 through September 30,
1999. Revenues are to be transferred to the Highway
Trust Fund; however, revenues from the tax on diesel
fuel used in trains, which is reduced to 1.25 cents per
gallon, are to be retained in the General Fund of the
Treasury.
Revenue Raisers—Other
Extend Federal Unemployment Act (FUTA) surtax.—
The temporary unemployment surtax of 0.2 percent im
posed on employers, which was scheduled to expire with
respect to wages paid after December 31, 1996, is ex
tended through December 31, 1998.
39
North America Free Trade Agreement (NAFTA)
Implementation A c t —This Act approves the agree
ment entered into by the United States, Canada and
Mexico on December 17, 1992. It eliminates tariffs and
other restrictions on trade among the three nations over
a 15 year phase-in period. Although NAFTA will gen
erate net economic and revenue gains through its effect
on the economy, technical requirements of the Budget
Enforcement Act require that the revenue losses from
the tariff tax reduction be offset. The provisions of the
Act that affect governmental receipts are as follows:
Reduce tariff rates.—Tariffs on trade among the Unit
ed States, Canada and Mexico will be eliminated. About
half of the tariffs disappeared on January 1, 1994; most
of the rest will be phased-out over 10 years, though
in some sectors—notably agriculture—tariffs will be
phased-out over 15 years.
Implement a new electronic Federal tax deposit sys
tem.—A new electronic fund transfer system will be
established for the collection of depository taxes. The
system shall be designed to ensure that taxes are cred
ited to the Treasury on the date such taxes are depos
ited to the Federal tax deposit system.
Disclose certain tax information to the United States
Customs Service.—The Secretary of the Treasury is pro
vided with authority to disclose certain tax information
that will assist the Customs Service in conducting au
dits and in recovering taxes, duties or fees determined
to be due as a result of such audits.
40
ANALYTICAL PERSPECTIVES
TABLE 4-3. EFFECT OF MAJOR LEGISLATION ENACTED IN 1993 ON RECEIPTS
(In biHions of dollars)
Estimate
1994
1995
1996
1997
1998
1999
Omnibus Budget Reconciliation Act of 1993
Individual income taxes.............................................................................................................................
Corporation income taxes.........................................................................................................................
Social insurance taxes and contributions..................................................................................................
Excise taxes..............................................................................................................................................
Estate and gift taxes.................................................................................................................................
Customs duties..........................................................................................................................................
Miscellaneous receipts..............................................................................................................................
9.8
6.8
2.0
6.0
0.5
-0.9
Total, Omnibus Budget Reconciliation Act of 19931 .......................................................................
24.3
45.3
Individual income taxes.............................................................................................................................
Corporation income taxes.........................................................................................................................
Social insurance taxes and contributions..................................................................................................
Excise taxes..............................................................................................................................................
Customs duties..........................................................................................................................................
*
0.1
*
*
-0.3
Total, North America Free Trade Agreement Implementation Act1 .................................................
24.5
7.6
6.6
6.1
0.5
26.1
8.9
7.1
9.8
0.6
32.1
14.2
8.8
10.0
0.6
26.0
11.9
9.8
9.9
0.6
0.1
0.1
52.5
65.9
58.3
57.9
0.2
0.2
0.1
0.1
-0.6
0.2
0.2
0.2
*
-0.8
0.2
0.2
0.2
0.1
-0.9
1.0
0.2
0.9
*
-1.0
-0.5
0.3
-0.5
0.2
-1.1
-0.1
-0.1
-0.2
-0.1
1.2
-1.6
Total effect on receipts by source:
Individual income taxes....................................................................................................................
Corporation income taxes................................................................................................................
Social insurance taxes and contributions.........................................................................................
Excise taxes .....................................................................................................................................
Estate and gift taxes........................................................................................................................
Customs duties.................................................................................................................................
Miscellaneous receipts.....................................................................................................................
9.9
6.9
2.1
6.0
0.5
-1.2
24.6
7.8
6.7
6.2
0.5
-0.6
26.3
9.1
7.3
9.9
0.6
-0.8
32.3
14.5
9.0
10.1
0.6
-0.9
0.1
27.0
12.2
10.7
9.9
0.6
-1.0
0.1
26.9
11.0
8.8
10.1
0.7
-1.1
Total effect on receipts 1 ..........................................................................................................
24.1
45.2
52.4
65.7
59.5
56.3
27.3
10.7
9.2
9.9
0.7
North America Free Trade Agreement Implementation Act
ADDENDUM
*$50 million or less.
1 Net of income offsets.
ADMINISTRATION PROPOSALS
Health Security Act.—The Administration’s Health
Security Act, which was transmitted to Congress on
November 20, 1993, would provide insurance to all legal
residents of the United States for expenses resulting
from a wide range of medical services. A detailed dis
cussion of this Act is presented in Chapter 4 of the
1995 budget. The major provisions of the Act that affect
governmental receipts include the following:
Increase tax on tobacco products.—Effective October
1, 1994, the excise tax on cigarettes would be increased
by $.75 per pack to $.99 per pack. Comparable increases
in Federal excise taxes on other tobacco products are
also proposed.
Levy assessment on corporate alliance employers.—
A one-percent annual assessment would be levied on
the total payroll of firms that provide health insurance
through corporate alliances. The assessment generally
would be effective January 1, 1996.
Increase deduction for health insurance costs of selfemployed individuals.—The health insurance deduction
for self-employed individuals would be increased to 100
percent of premiums paid to a health alliance for the
comprehensive benefit package. The current 25 percent
health insurance deduction for self-employed taxpayers
would remain in effect until the taxpayer’s State of
residence establishes a regional alliance.
Limit exclusion of employer-provided health cov
erage.—Effective January 1, 1997, contributions for
health benefits made through cafeteria plans would no
longer be excluded from an employee’s taxable income.
In addition, effective January 1, 2004, employer-paid
premiums for supplemental health coverage (coverage
for benefits in excess of the basic comprehensive benefit
package) would be taxable to the employee for income
and employment tax purposes.
Provide deduction for qualified long-term care serv
ices.—Effective for taxable years beginning after De
cember 31, 1995, expenses incurred by certain incapaci
tated individuals for qualified long-term care services
would be deductible as a medical expense (subject to
the current law 7.5 percent of adjusted gross income
floor).
Modify tax treatment of qualified long-term care in
surance premiums and benefits.—Effective for policies
issued after December 31, 1995, premiums for qualified
long-term care insurance would be deductible as a med
ical expense (subject to the current law 7.5 percent
of adjusted gross income floor). Effective on that date,
4. FEDERAL RECEIPTS
taxpayers would also be able to exclude from taxable
income up to $150 per day in benefits paid under a
long-term care policy, provided the qualified policy did
not provide benefits in excess of $150 per day. Tax
payers participating in plans providing more than $150
per day in benefits would not be eligible for the exclu
sion. The $150 cap would be adjusted annually for infla
tion. In addition, employers would be able to deduct
the cost of premiums paid for qualified long-term care
coverage, and employees would be able to exclude the
value of coverage from taxable income.
Modify tax treatment of accelerated death benefits.—
Distributions under a life insurance contract on the
life of an insured individual who is terminally ill and
expected to die within 12 months would be treated as
an amount paid by reason of death and would be ex
cluded from taxable income with respect to such dis
tributions made in taxable years beginning after De
cember 31, 1993.
Provide tax credit for the cost of personal assistance
services required by employed individuals.—Impaired
taxpayers with earned income would be allowed to
claim a non-refundable tax credit for 50 percent of cer
tain impairment-related personal assistance services ex
penses, up to a maximum of $15,000 in expenses, effec
tive for expenses incurred in taxable years beginning
after December 31, 1995. Specifically, the maximum
allowable annual tax credit would be the lesser of 50
percent of the taxpayer’s earned income or $7,500. The
credit would be gradually phased-out for taxpayers with
adjusted gross income between $50,000 and $70,000.
Provide tax credit for primary health services provid
ers in health professional shortage areas.—Effective for
taxable years beginning after December 31, 1994, physi
cians who receive the required certification and com
mence work full-time in an area that is designated
as being short of health professionals would be eligible
to receive a non-refundable tax credit of $1,000 per
month for up to 60 months. Certified nurse midwives,
nurse practitioners, and physician assistants who work
in health professional shortage areas would receive a
non-refundable tax credit of $500 per month for up
to 60 months.
Increase expensing limit for medical equipment in
health professional shortage areas.—The expensing
limit for medical equipment used by physicians who
work full-time in a designated area and placed in serv
ice after December 31, 1994 would be increased by
$10,000.
Modify self-employment tax treatment of certain sub
chapter S corporation shareholders and partners.—Ef
fective for taxable years beginning after December 31,
1995, certain limited partners and shareholders who
own 2 percent or more of the stock in a service industry
subchapter S corporation would be required to pay the
self-employment social security and medicare taxes on
their non-wage income from the Subchapter S corpora
tion.
Modify penalty for failure to report payments to inde
pendent contractors.—To prevent employers from avoid
41
ing their health care premium payment responsibilities,
the Secretary of the Treasury would be given greater
authority to prevent mischaracterization of employees
as independent contractors. In addition, the penalty for
not reporting a payment made to an independent con
tractor would be increased by $50 or 5 percent of the
payment, whichever was greater. These changes would
be effective for information returns due more than 30
days following date of enactment.
Modify tax treatment of health care organizations.—
The Administration’s reform plan would require all
health plans receiving premiums through health alli
ances to charge community rated premiums for the
comprehensive benefit package, thus eliminating the
need for the favorable income tax treatment provided
Blue Cros^Blue Shield organizations under current
law. Specifically, such organizations would no longer
be allowed to deduct the difference between 25 percent
of their health claims and adjusted surplus; in addition,
these organizations would be required to include 20
percent of the change in their unearned premium re
serves in taxable income. Recognizing that a nonprofit
health care provider should not qualify for tax exemp
tion unless it provides services that are beneficial to
the community, nonprofit hospitals and other nonprofit
health providers would be required to assess the health
needs of their community and develop a plan to meet
those needs in order to retain tax-exempt status. These
changes generally would be effective for taxable years
beginning after December 31, 1996.
Relate early retiree health premium discounts to in
come.—Effective January 1, 1998, retirees between the
ages of 55 and 64 (early retirees) would be eligible
for a discount for the employer share of their health
insurance premiums. However, single taxpayers with
combined income above $90,000 and married couples
filing joint returns with combined income above
$115,000 would be required to repay the discount.
Levy assessments on employers to pay for coverage
for early retirees.—A temporary assessment would be
levied on employers who provide health insurance bene
fits to early retirees. The assessment would be levied
for 3 years, 1998, 1999, and 2000, and in each year
employers would pay 50 percent of the greater of: (1)
the estimated employer savings in the current year for
providing health coverage to retirees between the ages
of 55 and 64 as a result of the health care reform
legislation, and (2) the annual average of the actual
early-retiree health benefits paid by the employer dur
ing the period 1991-93, adjusted for medical cost infla
tion.
Modify employer contributions to post-retirement med
ical and life insurance reserves and retiree health ac
counts maintained by pension plans.—Employers would
no longer be able to contribute to retiree medical 401(h)
accounts in pension plans, generally effective January
1, 1995. Moreover, additions to reserves for post-retire
ment medical or life benefits in funded welfare benefit
plans, typically Voluntary Employee’s Beneficiary Ac
42
counts (VEBAs), would be funded no more rapidly than
over a period of at least 10 years.
Recapture medicare Part B subsidies.—Effective Jan
uary 1, 1996, high-income taxpayers who choose to en
roll in medicare Part B would be required to pay addi
tional premiums. The additional premium would in
crease the taxpayers’ total contribution from about 25
percent of program costs to about 75 percent of program
costs. The additional premiums would be phased-in for
single taxpayers with combined income above $90,000
and married couples filing joint returns with combined
income above $115,000.
Extend medicare hospital insurance coverage to all
State and local government employees.—Effective Octo
ber 1, 1995, mandatory medicare coverage would be
extended to all employees of State and local govern
ments not covered under present law.
Levy assessment on premiums for health coverage pur
chased through regional alliances.—A 1.5 percent as
sessment would be levied on premiums for comprehen
sive health coverage purchased through regional alli
ances.
Effect of employer mandate, cost containment, and
subsides on individual income and payroll taxes.—
Under this Act, employers would be required to contrib
ute towards the costs of a comprehensive health insur
ance plan for their employees. The effects of the man
date would be mitigated by subsidies to employers and
reductions in the growth of health insurance costs. In
combination, these effects would result in a net increase
in taxable wages and receipts from individual income
taxes and payroll taxes.
Modify Federal pay raise (receipt effect).—Na
tional and locality pay increases would sum to 1.6 per
cent in 1995, 2.2 percent in 1996, and 2.5 percent in
each year, 1997 through 1999. These proposed pay ad
justments affect employee contributions to the Civil
Service Retirement System (CSRS).
Levy surcharge on civil judgments.—Where the
Justice Department wins a judgment for civil debt, an
enforceable 15 percent surcharge will be added. The
surcharge would apply to all judgments rendered after
September 30, 1994.
Reform Pension Benefit Guaranty Corporation
funding (receipt effect).—The Administration is pro
posing comprehensive, balanced reforms that will as
sure that the hard-earned pensions of American work
ers and retirees are secure. In addition to strengthening
the funding requirements for underfunded plans, the
proposal modifies existing tax rules regarding contribu
tions to certain types of plans and modifies or elimi
nates existing excise taxes levied on some pension plan
contributions.
ANALYTICAL PERSPECTIVES
of OASI and DI payroll tax rates is proposed. The pro
posal has no net effect on receipts or the deficit.
Adjust civil monetary penalites for inflation.—
The Administration proposes to adjust civil monetary
penalties for inflation. A “catch-up” adjustment would
be effective October 1, 1994; additional adjustments
would be made every four years, if needed.
Increase and/or establish new Bureau of Alcohol
Tobacco and Firearms (BATF) fees.—Effective Octo
ber 1, 1994, many existing fees levied by the BATF
on alcohol, tobacco and firearms would be increased
and several new fees would be established. The
amounts collected from these fees, which are listed
below, would be used to offset the costs of the Bureau
of Alcohol, Tobacco and Firearms.
Increase Federal firearms dealer license fee.—Under
current law, firearms dealers pay $90 for an original
3-year license and $200 for a 3-year renewal license.
The Administration proposes to increase the licensing
fee to $600 per year. It is believed that this increase
would drastically reduce the number of dealers.
Levy fee on firearms importers.—A sliding scale fee,
based on the number of firearms imported on a permit,
would be levied on importers of firearms.
Levy fee on applications for certification of labelling
and testing of alcoholic beverages.—To offset the cost
of operating the alcohol compliance program, a fee
would be charged for processing applications for certifi
cation of alcoholic beverage labels and for review of
formulae, statements of process, laboratory tests and
other analyses performed under the authority of the
Federal Alcohol Administration Act.
Increase Federal license and permit fees levied on
manufacturers of and dealers in explosives.—Existing
fees levied on explosives manufacturers and dealers,
which range from $2 to $50, would be increased to
range from $25 to $500.
Levy fee on applications for permits to manufacture
alcohol and tobacco products.—A fee, to be based on
the size of the business, would be levied on original
applications for permits to manufacture alcohol and to
bacco.
Modify collection of alcohol special occupational tax.—
In order to increase compliance, wholesalers will not
be able to sell to retailers until the retailer shows evi
dence that the special occupational tax has been paid.
Increase and/or expand fees collected under the
securities laws.—Effective October 1, 1994, several ex
isting securities-related fees would be increased and/
or expanded to new markets. Amounts collected from
these fees, which are listed below, would be deposited
into a special fund to be established in the Treasury
to fully-fund the Securities and Exchange Commission
(SEC). Amounts collected in excess of the SEC’s appro
priation would be deposited in the General Fund of
Reallocate old age and survivors (OASI) and dis the Treasury.
Increase tender offer and merger acquisition fees.—
ability (DI) insurance tax rates.—To prevent the
projected insolvency of the DI trust fund, a reallocation The existing fees, which are Vsoth of one percent of
4. FEDERAL RECEIPTS
the cash, securities or property involved in a tender
offer or merger acquisition, would be increased to V29th
of one percent.
Increase securities sales fee.—The fee on the sale of
all U.S. exchange-listed securities would be increased
from Vbooth of one percent of the sale to V25oth of one
percent of the sale. In addition, the fee would be ex
panded to cover the sale of all over-the-counter securi
ties transactions effective January 1, 1995.
Increase securites registration fee.—Applicants filing
securites registration statements currently pay a fee
equal to Vsoth of one percent of the maximum aggregate
price at which the securities are proposed to be offered.
An increase in the fee to V29th of one percent is pro
posed.
Increase investment advisor registration fee.—The ex
isting one-time registration fee of $150 levied on invest
ment advisors would be increased to an annual fee
based on the volume of assets under management.
Levy fees on users o f Federal fisheries.—Effective
October 1, 1994, fees would be levied on the bene
ficiaries of Federal fisheries management programs.
Amounts collected would be used to rebuild U.S. fish
eries and to maintain the productivity of healthy fish
eries.
Tax simplification.—The Administration supports
revenue-neutral initiatives designed to promote sensible
and equitable administration of the internal revenue
laws. These include simplification, technical corrections,
and taxpayer compliance measures.
43
IRS initiative.—The 1990 budget agreement in
cluded an IRS tax compliance initiative, which provided
additional funding for activities that would reasonably
be expected to increase revenue collections. The Admin
istration is considering a similar multi-year IRS initia
tive—beginning in 1995—to increase taxpayer compli
ance further. This initiative would add 5,000 FTEs to
compliance efforts in 1995, most of whom would be
used to increase the number of focused examinations
of tax returns, to collect more delinquent taxes, and
to make more effective use of information-reporting doc
uments.
The cost of this program would be $405 million per
year, or $2,025 billion over five years. The initiative
will yield far more revenue than its cost over the fiveyear period, and would continue to enhance tax revenue
after that period (assuming continued funding at the
same rate). In view of this deficit-reducing potential,
the Administration would consider budgetary treatment
similar to the 1990 budget agreement, under which the
cost of the initiative was considered outside the discre
tionary caps. Under no circumstances would the Admin
istration permit projected additional revenues to fund
mandatory spending increases or tax reductions. Subse
quent to the release of the President’s budget, the Ad
ministration will work with the congress to develop
such an initiative. Therefore, the revenue yield and
costs of this initiative are not reflected in the Presi
dent’s 1995 budget itself.
44
ANALYTICAL PERSPECTIVES
TABLE 4-4. EFFECT OF PROPOSALS ON RECEIPTS
(In billions of dollars)
Estimate
1994
Health Security Act:
Increase tew on tobacco products1 ..................................................................................................
Levy assessment on corporate alliance employers1 .......................................................................
Increase deduction for health insurance costs of the self-employed...............................................
Limit exclusion of employer-provided health coverage....................................................................
Provide deduction for qualified long-term care services..................................................................
Modify tax treatment of long-term care insurance premiums and benefits.....................................
Modify tax treatment of accelerated death benefits.........................................................................
Provide tax credit for cost of personal assistance services.............................................................
Provide tax credit for health service providers in shortage areas ...................................................
Increase expensing limit for medical equipment in shortage areas.................................................
Modify self-employment tax treatment of certain S corporation shareholders and partners ...........
Modify penalty for failure to report payments to independent contractors......................................
Modify tax treatment of health care organizations...........................................................................
Relate early retiree health premium discounts to income...............................................................
Levy assessments on employers to pay for early retirees1 ............................................................
Modify employer contributions to post-retirement medical and life insurance reserves and retiree
health accounts............................................................................................................................
Recapture medicare Part B subsidies ..............................................................................................
Extend medicare coverage to all State and local government employee1 .....................................
Levy assessment on premiums for health coverage purchased through regional alliances1 .........
Effect of employer mandate, cost containment and subsidies on individual income and payroll
taxes .............................................................................................................................................
Subtotal, Health Security Act1 ........ ....................................................................................
Other proposals:
Modify Federal pay raise (receipt effect)..........................................................................................
Levy surcharge on civil judgements.................................................................................................
Reform PBGC funding (receipt effect)..............................................................................................
Reallocate old age survivors (OASI) and disability (Dl) tax rates...................................................
Adjust civil monetary penalties for inflation......................................................................................
Increase or establish new BATF fees1 ............................................................................................
Increase or expand fees collected under securities laws.................................................................
Levy fees on users of Federal fisheries1 ........................................................................................
1995
1996
12.0
-0.1
_*
1997
-0.5
11.3
3.8
-0.6
-*
-0.1
-0.1
_*
_*
_*
_*
0.2
0.1
*
11.1
5.1
-1.7
8.1
-0.2
-0.3
_*
11.0
5.1
-2.5
8.7
-0.2
-0.4
_*
-0.1
-0.1
_*
_*
_*
0.5
0.1
0.1
*
_*
0.5
0.1
0.2
*
0.5
0.1
0.2
0.1
4.3
*
0.2
1.6
0.5
0.9
1.6
1.6
*
0.8
1.5
4.3
0.1
0.9
1.5
5.5
0.1
0.9
4.4
9.3
-0.1
11.6
16.9
25.6
36.2
44.0
*
-0.1
*
0.1
-0.1
*
-0.4
-0.2
*
-0.4
-0.3
*
-0.5
-0.4
*
-0.4
*
*
0.1
0.4
0.1
*
*
0.4
0.1
*
*
0.4
0.1
*
*
0.4
0.1
-0.2
-0.3
-0.2
25.5
35.9
43.7
Subtotal, other proposals1 ....................................................................................................
*
0.5
Total effect of proposals1 ............................................................................................
-0.1
12.2
16.9
11.2
5.0
-0.9
5.3
-0.2
-0.2
_*
-0.1
1999
2.4
0.1
0.1
0.4
0.1
*
*$50 million or less.
1 Net of income offsets.
1998
45
4. FEDERAL RECEIPTS
TABLE 4-5.
RECEIPTS BY SOURCE
(In millions of dollars)
Source
Individual income taxes (federal funds):
Withheld......................................................
Other ...........................................................
Refunds.......................................................
Proposals....................................................
Health Security Act (proposal)....................
Total net individual income taxes ...................
1993 actual
1994 estimate
1995 estimate
Source
430,427
154,800
-75,546
455,119
174,824
-79,978
37
509,680
549,901
-101
482,654
201,816
-87,351
50
-
2,122
595,048
Federal funds:
Alcohol taxes:
Distilled spirits ........
B e e r ..........................
W ines........................
Liquor Occupations
Refunds ...................
Total Federal funds net corporation
income taxes .................................
Trust funds:
Gross collections (Hazardous substance
superfund) ..............................................
Total Trust funds net corporation in
come taxes....................................
Total net corporation income taxes
Social insurance taxes and contributions
(trust funds):
Employment taxes and contributions:
Old-age and survivors insurance (Off-budg
et) ...........................................................
Proposals................................................
Health Security Act (proposal) ...............
Disability insurance (Off-budget).................
Proposals................................................
Health Security Act (proposal) ...............
Hospital insurance......................................
Health Security Act (proposal) ...............
Railroad retirement:
Social Security equivalent accout ..........
Rail pension fund...................................
Total employment taxes and contribu
tions ...............................................
On-budget......................................
Off-budget......................................
145,566
-15,529
-1
116,891
629
130,035
157,150
-16,834
-4
-6 0 4
139,708
684
729
629
684
729
117,520
130,719
140,437
281,735
303,650
-11,942
322,067
-16,114
30,199
32,529
11,942
81,224
90,115
-
1,221
34,506
16,114
-131
99,344
-3 3 8
3,797
3,329
578
112
-2 3 3
3,802
3,342
565
110
-2 2 7
3,763
3,352
555
110
-2 2 6
7,583
7,592
7,554
5,786
54
2
33
11
-1 1
5,563
54
2
33
11
-1 1
5,529
53
2
33
11
-1 1
16,041
5,875
5,652
21,658
3,422
99
45
23
134
3,320
17
126
9,460
102
47
25
136
3,493
18
129
9,775
105
50
27
139
3,675
18
132
212
101
15
854
379
1,709
223
113
16
797
402
109
84
-3 5 4
Miscellaneous excise taxes:
F u e ls ................................................................
Firearms, shells, and cartridges...............
Pistols and revolvers ..................................
Bows and a rrow s.........................................
Gas guzzlers .................................................
Telephone and teletype services .............
Wagers and related occupations..............
Employee pension plans, etc ....................
Undistributed income of private founda
tions ............................................................
Policies issued by foreign insurers .........
Ship passengers ..........................................
Ozone depleting chemicals and products
Luxury item s ..................................................
O th er................................................................
Proposals........................................................
Refunds ..........................................................
-3 5 3
218
107
16
943
309
60
-1
-3 5 5
Total miscellaneous excise ta x e s .......
1,472
2,387
1,495
2,423
458,145
102,924
355,221
Unemployment insurance:
State taxes deposited in Treasury1 ...........
Federal unemployment tax receipts1 .........
Railroad unemployment tax receipts1 ........
Railroad debt repayment1 .........................
20,966
5,437
64
21,557
5,443
41
22,008
5,536
23
Total unemployment insurance..........
26,556
27,041
27,567
Other retirement contributions:
Federal employees’ retirement—employee
contributions ...........................................
Proposals................................................
Contributions for non-Federal employees 2
4,709
4,636
96
93
Total other retirement contributions ....
4,805
4,729
428,300
116,366
311,934
461,923
125,744
336,179
4,646
-5 5
4,681
490,393
135,172
355,221
10,103
14,707
15,311
Undistributed Federal tax deposits and
unapplied collections...................................
962
720
734
Total Federal fund excise taxes .........
1,414
2,367
430,153
93,974
336,179
1994 estim
ate 1995 estim
ate
Total tobacco ta x e s ..............
130,917
-14,027
396,939
85,005
311,934
Total social insurance taxes and
contributions................................
On-budget......................................
Off-budget......................................
actual
Tobacco taxes:
Cigarettes ....................................
Cigars ...........................................
Cigarette papers and tu b e s .....
Smokeless tobacco...................
Pipe tobacco ...............................
Refunds ........................................
Health Security Act (proposal)
Total alcohol taxes
Corporation income taxes:
Federal funds:
Gross collections........................................
Refunds.......................................................
Proposals....................................................
Health Security Act (proposal)....................
1993
Excise taxes:
24,522
28,672
45,256
12,605
1,199
305
3,582
630
-2 8 2
12,536
1,320
318
3,931
636
-4 5 2
12,636
1,387
320
4,089
656
-4 4 7
Total highway trust fund .
18,039
18,290
18,642
Airport and airway:
Transportation of persons ...
Transportation of property ..
F u e ls ........................................
International departure........
Refunds ..................................
2,776
156
123
223
-1 7
4,742
261
185
235
-1 7
5,087
283
179
252
-1 8
3,262
5,407
5,783
276
634
79
826
229
296
654
93
838
292
668
102
849
Trust funds:
Highway:
Gasoline .........................................
Trucks, buses, and trailers ........
Tire s .................................................
Diesel fuel ......................................
Highway use of heavy vehicles .
Refunds ..........................................
Total airport and airway trust fund
Aquatic resources..........................
Black lung disability.......................
Inland waterway .............................
Hazardous substance superfund
Oil spill liability................................
46
ANALYTICAL PERSPECTIVES
TABLE 4-5.
RECEIPTS BY SOURCE-Continued
(In millions of dollars)
Source
1993 actual
1994 estimate
1995 estimate
Vaccine injury compensation ......................
Leaking underground storage tank.............
38
153
148
153
141
155
Total trust fund excise taxes..............
23,535
25,878
26,632
Total excise taxes ............................
48,057
54,550
71,888
Estate and gift taxes ........................................
12,577
12,749
13,885
Customs duties and fees:
Federal funds..................................................
Trust funds......................................................
Total customs duties and fees
Miscellaneous receipts: 3
Miscellaneous taxes .......................................
United Mine Workers of America combined
benefit fund.................................................
Deposit of earnings, Federal Reserve System
Fees for permits and regulatory and judicial
services:
Immigration, passport, and consular fees ...
Patent and copyright fees...........................
Registration and filing fees.........................
Proposals................................................
Coal mining reclamation fees .....................
Miscellaneous fees for permits, licenses,
e tc ...........................................................
Proposals................................................
Miscellaneous fees for regulatory and judi
cial sen/ices ...........................................
Proposals................................................
18,119
683
18,530
668
20,173
683
18,802
19,198
20,856
138
152
157
161
14,908
239
15,847
236
16,604
332
*
640
446
*
708
238
258
461
*
737
378
261
3
3
3
40
426
391
421
39
Source
1993 actual
1994 estimate
1995 estimate
Fees for legal and judicial services............
80
75
75
Total fees for permits and regulatory
and judicial services.......................
1,719
1,881
2,415
Fines, penalties, and forfeitures......................
Proposals....................................................
Restitutions, reparations, and recoveries
under military occupation............................
Gifts and contributions....................................
Refunds and recoveries .................................
1,686
1,791
1,764
17
11
130
-1 5 4
11
116
-6
11
110
-5
Total miscellaneous receipts..........
18,599
20,031
21,309
Total budget receipts.......................
On-budget......................................
Off-budget......................................
1,153,535
841,601
311,934
1,249,071
912,892
336,179
1,353,815
998,594
355,221
MEMORANDUM
On-budget:
Federal funds..................................................
Trust funds......................................................
Interfund transactions .....................................
704,848
763,250
838,888
314,712
313,842
321,803
-177,958 -164,200 -162,097
Total on-budget..........................................
Off-budget (trust funds)
841,601
311,934
912,892
336,179
998,594
355,221
Total...................................................
1,153,535
1,249,071
1,353,815
* $500 twusand or less.
’ Deposits by States are State payroll taxes fiat cover the benefit part of tie program. Federal unemploy
ment tax receipts cover administafve costs at both the Federal and State level. Rairoad unemployment tax re
ceipts cover boti fie benefits and administrative costs of the program for the railroads.
2 Represents employer and employee contributions to the dvi service retirement and disabiity fund fa cov
ered employees of Government-sponsored, privately owned enterprises and lie Distict of Columbia municipal
government
3 Includes both Federal and lust lunds. Trust lund amounts in miscellaneous receipts are: 1993, $446 mlfion;
1994, $532 milfion; and 1995, $521 mlfion.
5. USER FEES AND OTHER COLLECTIONS
This section discusses income to the Government
from the public. The Government provides goods and
services to specific public beneficiaries under its sov
ereign powers and in business-like transactions and
may collect fees for these goods and services. The fees
collected may be governmental receipts, offsetting re
ceipts, or offsetting collections.
Governmental receipts are collections from the public
that result primarily from the exercise of the Govern
ment’s sovereign or governmental powers. They consist
mostly of individual and corporate income taxes and
social insurance taxes, but also include compulsory user
charges. Offsetting receipts and offsetting collections re
sult from business-like or market-oriented activities (for
example, proceeds from the sale of postage stamps or
electricity, fees or admittance to recreation areas, or
the proceeds from the sale Government-owned land).
Offsetting receipts are deposited in receipt accounts,
whereas offsetting collections are credited directly to
expenditure accounts. Offsetting receipts and collections
are deducted from gross budget authority and outlays,
rather than combined with governmental receipts. The
purpose of this treatment is to produce budget totals
for receipts, budget authority, and outlays that rep
resent governmental rather than market activity.
As shown in Table 5-1 total offsetting collections
from the public, including those proposed by the Admin
istration (but excluding the collections of the off-budget
Postal Service), are estimated to be $148.0 billion in
1995. Table 5-1 itemizes all offsetting collections from
the public credited to receipt accounts and appropria
tion accounts. The information in Table 5-1 regarding
offsetting collections deposited in receipt accounts is
also available, in greater detail, in Table 5-3.
The budget contains a variety of user fee and other
offsetting collections proposals that would yield $1.5
billion in 1995 and $8.4 billion over the years 1995
through 1999. These proposals establish or increase fees
in order to recover more of the costs of providing Gov
ernment services. Table 5-2 splits the proposals be
tween discretionary and mandatory categories for the
appropriate scoring under the Budget Enforcement Act
of 1990 (BEA).
Discretionary.—The following discretionary user fee
proposals would be credited as offsets to the BEA’s
discretionary spending limits.
TABLE 5-1. OFFSETTING COLLECTIONS FROM THE PUBLIC
(In millions of dollars)
Type
Collections deposited in receipt accounts:
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 col
lections deposited in receipt accounts....................................
Subtotal, collections from the public deposited in receipt ac
counts .................................................................................
Collections credited to appropriation accounts:
Postal Service stamp sales and other collections......................
Deposit insurance funds .............................................................
Tennessee Valley Authority and Power Administration collec
tions .........................................................................................
Commodity Credit Corporation loan repayments and other col
lections ....................................................................................
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...............................................
1993
actual
Estimate
1994
1995
15,306
13,239
17,581
13,370
20,054
13,740
2,785
2,708
3,903
13,589
14,978
15,208
44,919
48,637
52,905
46,502
50,866
47,842
31,356
49,110
25,315
8,367
8,940
8,817
9,229
9,686
7,903
10,606
10,487
7,543
44,941
43,757
42,933
169,591
214,510
150,405
199,041
144,206
197,110
168,008
151,199
148,000
47
48
ANALYTICAL PERSPECTIVES
Table 5-2. PROPOSED USER FEES AND OTHER COLLECTIONS
(In millions of dollars)
Estimate
1995
Outlay offsets:
Discretionary:
Agriculture:
Meal/poultry plant overtime inspection fee (FSIS)...................................
Catastrophic Crop Insurance fee for administrative activities (FSA) .......
Commodity standards and overtime inspection fees (AMS) ....................
Licensing fees (PSA)................................................................................
Standardization fee (FGIS) ......................................................................
Guaranteed loan fee (FmHA) ..................................................................
Commerce:
Fisheries management program fees 1 ....................................................
Marine sanctuary fee ...............................................................................
Aeronautical chart fe e ..............................................................................
Health and Human Services:
Food and Drug Administration.................................................................
Interior
National Park Service entrance and recreation fees...............................
Justice:
Bankruptcy reorganization petition f e e .....................................................
Pre-merger notification filing fe e ...............................................................
Transportation:
FAA certification and surveillance of foreign repair stations....................
Treasury:
Definitive marketable securities fe e ..........................................................
Treasury direct account fe e .....................................................................
Customs merchandise processing fee .....................................................
IRS installment agreements.....................................................................
IRS tax return copy fee ...........................................................................
IRS refund indicator fe e ...........................................................................
Environmental Protection Agency:
Pesticide registration fe e ..........................................................................
Federal Trade Commission:
Pre-merger notification filing fe e ..............................................................
Securities and Exchange Commission:
Fee increases i ........................................................................................
Small Business Administration:
Service fees..............................................................................................
Corps of Engineers:
Wetland permit fees.................................................................................
Subtotal, discretionary..........................................................................
Mandatory:
Interior
Hardrock royalty 2 ....................................................................................
Fee collection support, National Park System.........................................
National Park Renewal Fund...................................................................
Justice:
Surcharge on civil judgments 1 ...............................................................
Transportation:
Tonnage duty fe e s ...................................................................................
Extend rail safety .....................................................................................
Treasury:
Federal firearms dealer license fee 1 .......................................................
Alcohol labeling program fee 1 ................................................................
Explosives license and permit fees 1 .......................................................
Firearms importer permits 1 .....................................................................
Alcohol and tobacco permit applications fee 1 ........................................
Environmental Protection Agency:
Reregistration of pesticides fe e ...............................................................
1996
1997
1998
-103
-40
-6
-9
-5
-13
-103
-40
-6
-12
-5
-13
-103
-40
-6
-12
-5
-13
-103
-40
-6
-12
-5
-13
-103
-40
-6
-12
-5
-13
-82
-3
-3
-82
-3
-3
-82
-3
-3
-82
-3
-3
-82
-3
-3
-338
-350
-368
-378
-389
-27
-33
-33
-37
-33
-5
-13
-5
-13
-5
-13
-5
-13
-5
-13
-2
-2
-2
-2
-2
-1
-2
-94
-54
-5
-87
-1
-2
-94
-54
-5
-87
-1
-2
-94
-54
-5
-87
-1
-2
-94
-54
-5
-87
-1
-2
-94
-54
-5
-87
-15
-15
-15
-13
-13
-13
-13
-13
-378
-356
-366
-372
-377
-26
-27
-28
-29
-30
-6
-12
-12
-12
-12
-1,329
-1,336
-1,363
-1,371
-1,384
-5
-16
-6
-12
-112
-10
-25
-110
-12
-34
-108
-13
-42
-39
-39
-39
-39
-39
-100
-100
-39
-100
-40
-100
-42
-100
-43
-25
-5
-3
-1
-6
-25
-5
-3
-1
-6
-23
-5
-3
-1
-6
-23
-5
-3
-1
-6
-23
-5
-3
-1
-6
-5
-5
-5
-19
-19
-395
-403
-1,765
-1,787
Subtotal, mandatory.............................................................................
-189
-259
-371
Total user fees and other collections..............................................
-1,518
-1,595
-1,734
'Governmental receipts.
2 Not coded as a user fee in the database.
1999
49
5. USER FEES AND OTHER COLLECTIONS
Agriculture
• Meat/poultry plant overtime inspection fee.—
Charge fees for all overtime inspection of meat
and poultry products at all establishments in
spected by the Food Safety and Inspection Service.
Currently, fees to reimburse the cost of overtime
inspection are required at some Food Safety In
spection Service inspected establishments, but not
at others. The Federal government would continue
to pay the full cost for a primary, eight-hour in
spection shift.
• Catastrophic Crop Insurance fee for administrative
activities.—Authorize the Farm Service Agency to
collect a nominal fee from agriculture producers
to help defray the administrative costs associated
with the proposed free catastrophic crop insurance
coverage.
• Commodity standards and overtime inspection
fees.—Establish fees for the Agricultural Market
ing Service to develop agricultural commodity
standards and to recover the costs of overtime
inspections for egg products.
• Licensing fees.—Establish a licensing fee for the
costs of administering the programs of the Packers
and Stockyards Administration. The fee would be
applied to livestock market agencies, livestock
dealers, meat packers and live poultry dealers as
defined in the Packers and Stockyards Act.
• Standardization fee.—Establish a user fee for
standardization activities of the Federal Grain In
spection Service, including maintaining uniform
standards for grain quality, determining criteria
and recommending specifications for grain inspec
tion instrumentation and developing an agencywide quality assurance program.
• Guaranteed loan fee.—Charge a one percent fee
on Farmers Home Administration (FmHA) single
family loan guarantees. This fee would go to de
fraying the costs of administering the program.
A similar fee is charged on other FmHA guaran
teed loans.
Commerce
• Fisheries Management Program Fees.—Charge
users of fisheries management programs fees
which would fund or finance rebuilding U.S. fish
eries and maintaining the productivity of healthy
fisheries.
• Marine Sanctuary Fee.—Charge fees to support
the operation of the National Marine Sanctuaries.
• Aeronautical Chart fee.—Charge fees to support
the costs of maintaining and distributing of aero
nautical charts.
Health and Human Services
• Food and Drug Administration.—Assess user fees
on FDA-regulated industries to capture a portion
of the private benefit those industries receive from
FDA regulation. Includes user fees authorized by
the Prescription Drug User Fee Act of 1992 and
the Mammography Quality Standards Act of 1992.
Interior
• National Park Service entrance and recreation
fees.—Implements NPR recommendation to ex
pand authority to collect park entrance and recre
ation user fees. Additional revenues collected in
1995 (less receipts used for collection costs) are
made available in 1996 to augment park oper
ations and resource protection.
Justice
• Bankruptcy reorganization petition fee.—Increase
fees assessed against debtor businesses filing
bankruptcy reorganization petitions. The proceeds
would be available to the United States Trustees
as offsetting collections for increased oversight of
the process of distributing debtor assets to credi
tors.
• Pre-merger notification filing fee.—Increase the
pre-merger notification filing fee from $25,000 to
$40,000 per filing. One-half of the fee increase
would go to the Department of Justice and onehalf would go to the Federal Trade Commission.
Transportation
• FAA certification and surveillance of foreign repair
stations.—Permit recovery of full costs associated
with the Federal Aviation Administration’s certifi
cation and surveillance of foreign repair stations.
Treasury
• Definitive marketable securities fee.—Assess a fee
for issuing definitive marketable securities.
• Treasury direct account fee.—Charge an annual
maintenance fee to investors with large Treasury
Direct Accounts.
• Customs merchandise processing fee.—Increase the
current ad valorem charge and the maximum and
minimum fees in the merchandise processing fee.
• IRS installment agreements.—Assess a small
charge to cover the costs of administering install
ment agreements under which taxpayers pay
taxes.
• IRS tax return copy fee.—Increase the charge for
providing photocopies of tax returns from $4.25
to approximately $12.00. This proposal enables the
IRS to recover its costs and encourages taxpayers
to request less costly abstracts of tax returns from
summary data stored on IRS computers.
• IRS refund indicator fee.—Charge institutions for
providing a direct deposit indicator after receipt
of an electronically filed tax return. The indicator
is not necessary for the IRS to process the return
however, it is useful to institutions in processing
refund anticipation loans.
50
ANALYTICAL PERSPECTIVES
Environmental Protection Agency
• Pesticide registration fee.—Impose user fees on
manufacturers of pesticides to recover the costs
of EPA’s registration program.
Federal Trade Commission
• Pre-merger notification filing fee.—Increase the
pre-merger notification filing fee from $25,000 to
$40,000 per filing. One-half the fee increase would
go to the Department of Justice and one-half the
fee increase would go to the Federal Trade Com
mission.
Securities and Exchange Commission
• Fee increases.—Increase and/or expand several ex
isting securities-related fees. Amounts collected
from these fees, which are listed below, would be
deposited into a special fund to be established in
the Treasury to fully-fund the Securities and Ex
change Commission (SEC). Amounts collected in
excess of the SEC’s appropriation would be depos
ited in the General Fund of the Treasury.
—Increase from Vsoth to V29th of one percent the
fee for a tender offer and merger acquisition
fees.
—Increase the fee on the sale of all U.S. exchangelisted securities from the current level of V3ooth
of one percent of the amount of the sale to
V25oth of one percent. In addition, the fee would
be expanded to cover the sale of all over-thecounter (OTC) securities transactions effective
January 1, 1995.
—Increase the fee applicants filing securities reg
istration statements must pay from Vsoth to
V29th of one percent of the maximum aggregate
price at which the securities are proposed to
be offered.
—Increase the SEC’s existing one-time $150 fee
to become a registered SEC investment advisor
to an annual fee based on the volume of assets
under management.
Small Business Administration
• Service fees.—Impose a $15 per hour fee on indi
viduals obtaining assistance from Small Business
Development Centers. Also impose fees for certain
SBA publications, administrative loan servicing
and SBA’s electronic bulletin board.
Corps of Engineers
• Wetland permit fees.—Increase the fee structure
for certain types of permits issued by the Army
Corps of Engineers pursuant to Section 404 of the
Clean Water Act. The new fee structure would
more closely approximate the costs of evaluating
such applications.
Mandatory.—The following mandatory user fee pro
posals would be scored as “pay-as-you-go” savings under
the BEA’s scoring rules.
Interior
• Hardrock royalty.—Impose an 8% royalty on
hardrock minerals removed from public lands.
• Fee Collection Support, National Park System.—
Use up to 15 percent of increased revenues esti
mated under new authority to collect park en
trance and other recreation user fees to defray
additional expenses necessary to collect the pro
posed new receipts.
• National Park Renewal Fund.—Implements NPR
recommendation to create a new, National Park
Renewal Fund, which would receive half of the
additional revenues, net of fee collection costs, and
return them to the collecting parks for direct ex
penditure from receipts in 1996.
Transportation
• Tonnage duty fees.—Increase the existing tonnage
duty fees by 150 percent. These fees would offset
the costs of services provided to the maritime in
dustry by the Coast Guard.
• Extend rail safety.—Extend existing fees, which
are due to expire at the end of 1995.
Treasury
• Federal firearms dealer license fee.—Increase the
federal firearms dealer license fee from its current
$90 for three year original license and $200 for
three year renewal license to a $600/yr fee for
each license.
• Alcohol labeling program fee.—Collect a fee to off
set the cost of operating of the Alcohol Compliance
Program. This fee would be charged for processing
applications for Certification of Label Approval for
alcoholic beverages and for reviews of formulae,
statements of process, laboratory tests and analy
ses performed under the authority of the Federal
Alcohol Administration Act and the Internal Reve
nue Code.
• Explosives license and permit fees.—Increase the
fees for explosives licenses and permits from a
present range of $2 through $50 to proposed levels
of $25 to $500.
• Firearms importer permits.—Assess a fee against
firearms importers for the processing and clear
ance of permits to import firearms. The fee on
importers would be on a sliding scale based on
the number of firearms imported on a particular
permit.
• Alcohol and tobacco permit applications fee.—As
sess a charge for processing original applications
for alcohol and tobacco permits at a rate depend
ing on the size of the business.
Justice
• Surcharge on civil judgments.—Create an enforce
able 15 percent surcharge on judgments for civil
debt collected by the Justice Department.
51
5. USER FEES AND OTHER COLLECTIONS
Environmental Protection Agency
• Reregistration of pesticides fee.—Increase and ex
tend fees collected from pesticide manufacturers
in support of reregistration of old pesticides.
Type
1993 actual
1994 estimate
1995 estimate
Table 5-3 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 intragovemmental
transactions, as well as collections from the public. In
total, offsetting receipts are estimated at $288.7 billion
in 1995.
Type
1993 actual
1994 estimate
1996 estimate
INTRAGOVERNMENTAL TRANSACTIONS
Other Federal employees retirement ..
112
119
128
On-budget receipts:
Federal intrafund transactions:
Distributed by agency:
Interest from the Federal Financing Bank
Interest on Government capital in enter
prises ..................................................
Other .......................................................
Total employer share, employee re
tirement ..........................................
28,186
28,217
28,493
Interest received by on-budget trust
funds ..................................................
55,537
56,772
57,191
Total Federal intrafunds ....................
11,333
9,601
8,794
2,191
553
2,165
853
1,945
894
14,077
12,620
11,633
3,435
184
3,616
1
3,711
1
Total intrafund transactions................
17,697
16,237
15,345
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..............................
1Inpm nlovm pnt inciirpnri)
National separation liability............
Other ..............................................
Miscellaneous payments:
State and local government fiscal
assistance .................................
Other..............................................
12,273
44,227
495
11,908
38,148
2,240
12,564
34,899
4,789
2,996
2
3,109
-7
3,194
20,118
13 148
172
1,375
20,585
3 963
’ 96
471
20,768
1,210
91
526
15
574
650
15
504
Subtotal .....................................
95,456
81,033
78,630
Trust fund payments to Federal funds:
Repayment of loans or advances to
trust funds .....................................
Charges for services to trust funds ....
Other
2,914
412
617
2,921
329
622
3,056
338
646
3,944
3,873
4,039
Total interfunds distributed by agency
99,401
84,905
82,669
84,990
85,684
183,123
169,895
168,353
197,385
182,515
179,987
Off-budget receipts:
Interfund transactions:
Distributed by agency:
Federal fund payments to trust funds:
Old-age, survivors, and disability in
surance ..........................................
Undistributed by agency:
Employer share, employee retirement
(off-budget) ....................................
Interest received by off-budget trust
funds..............................................
6,246
5,790
6,639
6,416
6,463
6,756
26,788
29,073
31,669
Total off-budget receipts ....................
39,449
41,326
45,064
Total intragovemmental trans
actions ..........................................
240,269
227,457
228,762
370
352
300
PROPRIETARY RECEIPTS FROM THE
PUBLIC
Distributed by agency:
Interest:
Interest on loans, Foreign Assistance Act ..
Other interest on foreign loans and de
ferred foreign collections ........................
Interest on deposits in tax and loan ac
counts .....................................................
Other interest (domestic—civil) 4 .................
746
765
749
542
842
624
961
740
1,575
7,735
4,785
7,842
5,136
8,007
5,669
2,375
13,179
2,448
12,671
2,531
12,158
Total interest......................................
2,501
2,701
3,364
Rents:
Rent and bonuses from land leases, etc ....
Rent of land and other real property
Rent of equipment and other personal
property ..................................................
16
62
9
63
10
70
5
8
8
Total rents..........................................
Subtotal .....................................
Undistributed by agency:
Employer share, employee retirement2:
Civil service retirement and disability
insurance.......................................
CSRDI from Postal Service
Hospital insurance (contribution as
employer) 3 ....................................
Military retirement fund......................
83,723
Total interfund transactions................
Total on-budget receipts ....................
Trust intrafund transactions:
Distributed by agency:
Payments to railroad retirement1 ...........
Other.......................................................
Total interfund transactions undistrib
uted by agency .............................
83
80
88
Royalties........................................................
1,028
1,107
1,079
Sale of products:
Sale of timber and other natural land prod
ucts .........................................................
817
853
875
52
ANALYTICAL PERSPECTIVES
TABLE 5-3.
OFFSETTING RECEIPTS BY TYPE-Continued
(In millions of dollars)
Type
1993 actual
1994 estimate
1995 estimate
Type
1993 actual
1994 estimate
1995 estimate
Sale of minerals and mineral products ......
Sale of power and other utilities ................
Sale of other products« ..............................
Recovery of mint manufacturing expense ...
467
705
9
84
437
788
44
93
622
820
48
61
Miscellaneous receipt accounts « ................
1,534
1,371
1,410
Total proprietary receipts from the
public distributed by agency..........
42,135
45,644
48,985
Total sale of products ........................
2,082
2,216
2,427
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 .....................................................
176
2,608
199
2,509
588
2,460
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) ..........
Others.........................................................
15,306
437
393
1,737
17,581
391
317
1,906
20,054
551
304
2,004
Total fees and other charges.............
17,872
20,195
22,913
Total proprietary receipts from the
public undistributed by agency ,
2,785
2,708
3,903
19
45
46
Total proprietary receipts from the
publics..........................................
44,919
48,367
52,905
38
2,103
2,270
2,765
500
4,300
2,770
278,594
7,065
288,731
Sale of Government property:
Sale of land and other real property4
Sale of equipment and other personal
property:
Military assistance program sales (trust
funds).................................................
Sale of scrap and salvage material .......
13,239
-5
13,370
Total sale of Government property....
13,254
13,415
OFFSETTING GOVERNMENTAL RECEIPTS
13,740
13,786
Distributed by agency:
Defense cooperation.......................................
Other ...............................................................
Undistributed by agency:
Spectrum auction proceeds.............................
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
Other ...........................................................
866
469
274
276
15
100
314
687
574
451
871
15
102
167
597
628
617
Total realization upon loans and in
vestments ......................................
2,313
2,867
2,127
Recoveries and refunds « ............................
1,469
1,707
1,807
855
15
104
167
Total offsetting governmental receipts
Total offsetting receipts ..................
2,141
287,330
* $500 tiousand or less.
11nterchange receipts between the social security and railroad retirement funds place the social security funds
in tie same position they would have been if there were no separate rairoad retirement system.
* Includes contributions Irom Postal Service off-budget accounts.
a Includes provision for covered Federal dvifian employees and miitary personnel.
4 Includes both Federal funds and tust funds,
s Consists oh
1993
1994
1995
actual
estimate
estimate
Federal funds.............................................................................
Trust funds.................................................................................
Off-budget ..................................................................................
14,632
30,281
6
15,761
32,590
16
17.462
35,427
16
6. TAX EXPENDITURES
Tax expenditures are revenue losses due to pref
erential provisions of the Federal tax laws, such as
special exclusions, exemptions, deductions, credits, de
ferrals, or tax rates. Tax expenditures are an alter
native to other Government policy instruments, such
as direct expenditures and regulations. The Congres
sional Budget Act of 1974 (Public Law 93-344) requires
that a list of tax expenditures be included in the bud
get.
Tax expenditures relating to the individual and cor
porate income taxes are considered first in this chapter,
followed by those relating to the unified transfer tax.
The supplement at the end of the chapter presents
major tax expenditures in the income tax ranked by
revenue loss.
The Omnibus Budget Reconciliation Act of 1993
(OBRA 93) had a number of effects on income tax ex
penditures. The Act broadened the tax base by reducing
some tax preferences, such as the exclusion for a por
tion of social security income and the credit available
for business income earned in U.S. possessions. Con
versely, the Act narrowed the tax base, and increased
tax expenditures, by creating, renewing, or expanding
several other tax preferences. New provisions include
empowerment zones. Certain expired provisions, such
as mortgage revenue bonds and the low-income housing
tax credit, were extended permanently. Others, such
as the research and experimentation tax credit and the
targeted jobs tax credit, were extended but not made
permanent. Expanded tax expenditures include more
generous expensing provisions for small business in
vestments and increases in the earned income tax cred
it.
OBRA 93 also increased the revenue losses from tax
expenditures by raising the top individual and cor
porate tax rates. As tax rates rise, the revenue losses
from deductions and exclusions also increase. For exam
ple, raising the top marginal tax rate from 31 percent
to 39.6 percent would increase the revenue loss from
a $1,000 exclusion in this tax bracket from $310 to
$396.
In addition to reflecting the changes associated with
OBRA 93, this year’s tax expenditure budget includes
two new features that better indicate the long-term
effects of tax expenditures. First, revenue loss estimates
are now presented through 1999, as is done for outlay
programs. Second, a new table reports present-value
estimates of the revenue losses for tax expenditures
that involve deferrals of tax payments into the future
or have similar long-term effects.
TAX EXPENDITURES IN THE INCOME TAX
Tax Expenditure Estimates
The Treasury Department prepared all tax expendi
ture estimates presented here based upon income tax
law enacted as of December 31, 1993. Expired or re
pealed provisions are not listed if their revenue effects
result only from taxpayer activity in years before 1993.
The total revenue loss estimates for tax expenditures
for fiscal years 1993-99 are displayed by the budget’s
functional categories in table 6-1. Descriptions of the
specific tax expenditure provisions follow the tables of
estimates and discussion of general features of the tax
expenditure concept.
As in prior years, two baseline concepts—the normal
tax baseline and the reference tax law baseline—are
considered for the estimates. For the most part, the
two concepts coincide. However, items treated as tax
expenditures under the normal tax baseline, but not
the reference tax law baseline, are indicated by the
designation "normal tax method” in the tables. The rev
enue losses for these items are zero using the reference
tax rules. The alternative baseline concepts are dis
cussed in detail following the estimates.
Table 6-2 reports the respective portions of the total
revenue losses that arise under the individual and cor
porate income taxes. Listing revenue loss estimates
under the individual and corporate headings does not
imply that these categories of filers benefit from the
special tax provisions in proportion to the respective
tax expenditure amounts shown. Rather, these break
downs show the specific tax accounts through which
the various provisions are cleared. The ultimate bene
ficiaries of corporate tax expenditures, for example,
could be stockholders, employees, customers, or others,
depending on the circumstances.
Table 6-6 at the end of this chapter ranks the major
tax expenditures by fiscal year 1995 revenue loss. This
table merges several individual entries provided in
table 6-1; for example, table 6-6 contains one merged
entry for charitable contributions instead of the three
separate entries found in table 6-1.
53
54
ANALYTICAL PERSPECTIVES
TABLE 6-1. TOTAL REVENUE LOSS ESTIMATES FOR TAX EXPENDITURES IN THE INCOME TAX
(In millions of dollars)
Total Revenue Loss
1993
1994
1995
1996
1997
1999
1998
National defense:.
Exclusion of benefits and allowances to armed forces personnel.........................................
2,115
2,060
2,030
2,020
2,015
2,030
2,055
International affairs:
Exclusion of income earned abroad by United States citizens.............................................
Exclusion of income of foreign sales corporations................................................................
Inventory property sales source rules exception...................................................................
Interest allocation rules exception for certain financial operations........................................
Deferral of income from controlled foreign corporations (normal tax method) ......................
510
1,200
1,100
100
1,600
860
1,300
1,200
95
1,600
895
1,400
1,300
95
1,700
945
1,500
1,400
95
1,800
1,000
1,600
1,500
95
2,000
1,055
1,700
1,600
95
2,200
1,115
1,800
1,700
95
2,400
General science, space, and technology:
Expensing of research and experimentation expenditures (normal tax method)...................
Credit for increasing research activities.................................................................................
Suspension of the allocation of research and experimentation expenditures........................
2,060
1,240
0
2,230
1,395
270
2,390
1,270
270
2,560
740
0
2,740
315
0
2,930
135
0
3,130
45
0
185
20
145
20
140
20
100
20
60
20
55
25
95
25
995
100
760
50
10
165
55
15
15
50
1,010
100
900
50
15
175
60
15
50
100
1,035
100
970
50
15
175
65
35
65
145
1,055
100
1,000
50
15
175
70
45
65
175
1,065
105
990
50
15
175
75
50
65
190
1,090
105
940
50
15
175
80
50
75
190
1,105
105
880
50
15
165
85
50
80
190
50
185
*
50
195
*
50
625
15
575
35
125
50
195
*
50
200
*
50
615
15
600
40
125
50
600
15
635
40
120
50
205
*
50
585
15
670
40
115
55
210
*
50
595
10
535
35
135
50
195
*
50
610
15
560
35
130
75
90
10
115
70
85
10
135
70
85
10
140
65
80
10
145
65
80
10
145
65
80
10
145
70
85
10
150
300
30
7,520
5
105
120
525
340
35
8,115
5
110
125
600
380
40
8,730
5
110
135
690
420
40
9,385
5
115
140
810
465
45
10,090
5
120
145
925
510
50
10,805
5
130
155
1,055
560
55
11,660
5
135
160
1,205
1,715
1,000
48,705
13,055
820
13,265
4,625
6,070
1,190
1,760
970
51,835
13,865
915
13,925
4,770
5,945
1,085
1,785
920
54,800
14,655
935
14,620
4,960
5,775
1,100
1,775
870
57,985
15,545
950
15,195
5,155
5,680
1,145
1,715
810
61,420
16,425
965
15,620
5,300
5,625
1,220
1,640
750
65,050
17,395
980
15,915
5,400
5,595
1,290
1,575
685
68,785
18,395
995
16,065
5,450
5,545
1,345
60
140
5,510
120
150
6,565
110
150
6,920
70
150
7,045
35
155
7,120
10
155
7,160
-10
160
7,225
Energy:
Expensing of exploration and development costs:
Oil and g a s ........................................................................................................................
Other fuels.........................................................................................................................
Excess of percentage over cost depletion:
Oil and g a s ........................................................................................................................
Other fuels.........................................................................................................................
Alternative fuel production credit............................................................................................
Exception from passive loss limitation for working interests in oil and gas properties.........
Capital gains treatment of royalties on coal..........................................................................
Exclusion of interest on State and local IDBs for energy facilities .......................................
New technology credit............................................................................................................
Alcohol fuel credit1 ................................................................................................................
Tax credit and deduction for dean-fuel burning vehicles and properties .............................
Exclusion from income of conservation subsidies provided by public utilities......................
Natural resources and environment:
Expensing of exploration and development costs, nonfuel minerals.....................................
Excess of percentage over cost depletion, nonfuel minerals................................................
Capital gains treatment of iron o r e ........................................................................................
Special rules for mining reclamation reserves.......................................................................
Exclusion of interest on State and local IDBs for pollution control and sewage...................
Capital gains treatment of certain timber income..................................................................
Expensing of multiperiod timber growing costs.....................................................................
Investment credit and seven-year amortization for reforestation expenditures......................
Tax incentives for preservation of historic structures.............................................................
Agriculture:
Expensing of certain capital outlays.......................................................................................
Expensing of certain multiperiod production costs................................................................
Treatment of loans forgiven solvent farmers as if insolvent..................................................
Capital gains treatment of certain income.............................................................................
Commerce and housing:
Financial institutions and insurance:
Exemption of credit union income .....................................................................................
Excess bad debt reserves of financial institutions.............................................................
Exclusion of interest on life insurance savings..................................................................
Special alternative tax on small property and casualty insurance companies..................
Tax exemption of certain insurance companies................................................................
Small life insurance company deduction...........................................................................
Exemption of RIC expenses from the 2% floor for miscellaneous itemized deductions ....
Housing:
Exclusion of interest on owner-occupied mortgage revenue bonds..................................
Exclusion of interest on State and local debt for rental housing......................................
Deductibility of mortgage interest on owner-occupied homes...........................................
Deductibility of State and local property tax on owner-occupied homes...........................
Deferral of income from post 1987 installment sales........................................................
Deferral of capital gains on home sales...........................................................................
Exclusion of capital gains on home sales for persons age 55 and over.........................
Exception from passive loss rules for $25,000 of rental loss ...........................................
Accelerated depreciation of rental housing (normal tax method)......................................
Commerce:
Cancellation of indebtedness.............................................................................................
Permanent exceptions from imputed interest rules............................................................
Capital gains (other than agriculture, timber, iron ore, and coal) (normal tax method)....
50
565
15
695
45
115
55
6. TAX EXPENDITURES
TABLE 6-1. TOTAL REVENUE LOSS ESTIMATES FOR TAX EXPENDITURES IN THE INCOME TAX-Continued
(In millions of dollars)
Total Revenue Loss
1993
1994
1995
1996
1997
1998
1999
Step-up basis of capital gains at death.............................................................................
Carryover basis of capital gains on gifts...........................................................................
Ordinary income treatment of loss from small business corp. stock sale........................
Accelerated depreciation of buildings other than rental housing (normal tax method).....
Accelerated depreciation of machinery and equipment (normal tax method)....................
Expensing of certain small investments (normal tax method)...........................................
Amortization of start-up costs (normal tax method)...........................................................
Graduated corporation income tax rate (normal tax method) ...........................................
Exclusion of interest on small-issue ID B s.........................................................................
Deferral of gains from sale of broadcasting facilities to minority owned business ...........
Treatment of Alaska Native Corporations..........................................................................
25,340
120
25
2,895
19,625
1,540
200
3,325
865
260
65
26,850
125
30
2,995
22,775
2,095
200
3,655
690
275
45
28,305
130
30
3,185
23,210
1,560
200
3,890
545
290
30
29,480
135
35
3,430
22,550
1,235
210
4,140
420
305
20
30,265
140
35
3,745
22,330
905
215
4,340
325
320
15
30,710
145
35
4,075
21,380
610
220
4,540
280
335
10
30,655
150
35
4,410
20,155
385
225
4,745
255
350
5
Transportation:
Deferral of tax on shipping companies..................................................................................
Exclusion of reimbursed employee parking expenses..........................................................
Exclusion for employer-provided transit passes ....................................................................
15
1,790
10
15
1,845
30
15
1,930
40
15
2,015
50
15
2,100
65
15
2,190
80
15
2,275
95
Community and regional development:
Credit for low-income housing investments...........................................................................
Investment credit for rehabilitation of structures (other than historic) ...................................
Exclusion of interest on IDBs for airports, docks, and sports and convention facilities........
Exemption of certain mutuals’ and cooperatives’ income......................................................
Empowerment zones .............................................................................................................
1,545
90
730
25
5
1,925
90
785
25
155
2,265
80
830
30
330
2,600
80
870
30
440
2,945
80
915
30
510
3,270
70
960
35
565
3,500
70
1,005
35
620
Education, training, employment, and social services:
Education:
Exclusion of scholarship and fellowship income (normal tax method)
Exclusion of interest on State and local student loan bonds............................................
Exclusion of interest on State and local debt for private nonprofit educational institutions
Exclusion of interest on savings bonds transferred to educational institutions.................
Parental personal exemption for students age 19 or over................................................
Deductibility of charitable contributions (education) ...........................................................
Exclusion of employer provided educational assistance....................................................
Training, employment and social services:
Targeted jobs credit...........................................................................................................
Exclusion of employer provided child care........................................................................
Exclusion of employee meals and lodging (other than military)........................................
Credit for child and dependent care expenses.................................................................
Credit for disabled access expenditures............................................................................
Expensing of costs of removing certain architectural barriers to the handicapped...........
Deductibility of charitable contributions, other than education and health........................
Exclusion of certain foster care payments ........................................................................
Exclusion of parsonage allowances...................................................................................
790
310
705
*
505
1,960
215
835
310
735
5
520
2,120
235
875
305
750
5
535
2,230
85
920
295
770
5
545
2,340
0
965
275
785
10
565
2,460
0
1,015
255
810
10
580
2,590
0
1,065
240
845
15
595
2,720
0
160
620
490
2,540
150
20
13,130
25
235
305
675
525
2,675
160
20
14,290
30
260
395
725
550
2,820
160
20
15,080
30
290
325
775
580
2,975
160
20
15,830
35
320
60
830
610
3,145
165
20
16,630
35
355
40
890
640
3,320
165
20
17,460
40
395
20
955
670
3,510
165
20
18,330
40
440
Health:
Exclusion of employer contributions for medical insurance premiums and medical c a re.....
Credit for child medical insurance premiums2 ......................................................................
Deductibility of medical expenses..........................................................................................
Exclusion of interest on State and local debt for private nonprofit health facilities...............
Deductibility of charitable contributions (health) ....................................................................
Tax credit for orphan drug research......................................................................................
Special Blue Cross/Blue Shield deduction.............................................................................
46,895
110
3,010
1,405
1,770
0
105
51,445
125
3,270
1,455
1,910
35
115
56,265
0
3,560
1,495
2,020
15
125
61,675
0
3,870
1,535
2,130
0
140
67,345
0
4,195
1,585
2,230
0
100
73,450
0
4,535
1,640
2,340
0
170
79,995
0
4,890
1,700
2,460
0
185
415
3,815
500
100
130
395
4,240
545
100
130
400
4,455
585
100
130
405
4,740
605
95
130
410
5,065
640
95
130
420
5,565
695
90
130
425
6,100
735
80
130
49,430
5,720
3,245
25
48,750
5,415
3,670
30
55,540
5,290
3,875
35
59,010
5,275
4,130
35
59,490
5,175
4,400
40
59,950
4,970
4,690
40
60,400
4,615
5,000
45
2,620
135
35
2,070
40
1,510
2,750
140
35
2,035
45
1,535
2,880
140
35
1,760
45
1,555
3,020
145
35
1,635
45
1,570
3,170
150
35
1,545
50
1,585
3,325
160
35
1,415
50
1,600
3,485
165
35
1,285
55
1,605
Income security:
Exclusion of railroad retirement system benefits...................................................................
Exclusion of workmen’s compensation benefits ....................................................................
Exclusion of public assistance benefits (normal tax method)................................................
Exclusion of special benefits for disabled coal miners ..........................................................
Exclusion of military disability pensions.................................................................................
Net exclusion of pension contributions and earnings:
Employer plans..................................................................................................................
Individual Retirement Accounts..........................................................................................
Keogh plans.......................................................................................................................
Exclusion of employer provided death benefits.....................................................................
Exclusion of other employee benefits:
Premiums on group term life insurance ............................................................................
Premiums on accident and disability insurance................................................................
Income of trusts to finance supplementary unemployment benefits.................................
Special ESOP rules (other than investment credit)...............................................................
Additional deduction for the blind...........................................................................................
Additional deduction for the elderly........................................................................................
56
ANALYTICAL PERSPECTIVES
TABLE 6-1. TOTAL REVENUE LOSS ESTIMATES FOR TAX EXPENDITURES IN THE INCOME TAX-Continued
(In m
illions of dollars)
Total Revenue Loss
1993
1994
1995
1996
1997
1998
1999
Tax credit for the elderly and disabled..................................................................................
Deductibility of casualty losses...............................................................................................
Earned income credits............................................................................................................
60
695
3,605
65
770
3,940
65
230
5,100
70
230
5,795
70
230
6,435
75
230
6,740
75
230
7,125
Social Security:
Exclusion of social security benefits:
OASI benefits for retired workers......................................................................................
Disability insurance benefits...............................................................................................
Benefits for dependents and survivors..............................................................................
18,310
1,725
3,620
16,695
1,765
3,610
16,525
1,905
3,730
17,370
2,105
3,940
18,140
2,320
4,150
18,880
2,540
4,365
19,670
2,765
4,590
Veterans benefits and services:
Exclusion of veterans disability compensation.......................................................................
Exclusion of veterans pensions..............................................................................................
Exclusion of Gl bill benefits....................................................................................................
Exclusion of interest on State and local debt for veterans housing......................................
1,755
80
45
100
1,860
80
55
90
1,920
75
65
85
1,855
70
70
80
1,885
70
75
75
1,985
75
80
75
2,025
85
80
75
General purpose fiscal assistance:
Exclusion of interest on public purpose State and local debt...............................................
Deductibility of nonbusiness State and local taxes other than on owner-occupied homes ...
Tax credit for corporations receiving income from doing business in U.S. possessions......
11,575
22,555
3,075
11,970
24,255
2,890
12,350
25,640
2,630
12,690
27,130
2,680
13,085
28,740
2,735
13,535
30,435
2,815
14,040
32,185
2,960
Interest:.
Deferral of interest on savings bonds....................................................................................
1,130
1,190
1,250
1,310
1,380
1,450
1,520
13,055
22,555
13,865
24,255
14,655
25,640
15,545
27,130
16,425
28,740
17,395
30,435
18,395
32,185
11,575
165
595
865
1,715
1,000
730
310
705
1,405
100
11,970
175
610
690
1,760
970
785
310
735
1,455
90
12,350
175
625
545
1,785
920
830
305
750
1,495
85
12,690
175
615
420
1,775
870
870
295
770
1,535
80
13,085
175
600
325
1,715
810
915
275
785
1,585
75
13,535
175
585
280
1,640
750
960
255
810
1,640
75
14,040
165
565
255
1,575
685
1,005
240
845
1,700
75
Addendum—Aid to State and local governments:
Deductibility of:
Property taxes on owner-occupied homes........................................................................
Nonbusiness State and local taxes other than on owner-occupied homes.......................
Exclusion of interest on:
Public purpose State and local d eb t.................................................................................
IDBs for certain energy facilities........................................................................................
IDBs for pollution control and sewage and waste disposal facilities................................
Small-issue IDBs ...............................................................................................................
Owner-occupied mortgage revenue bonds........................................................................
State and local debt for rental housing.............................................................................
IDBs for airports, docks, and sports and convention facilities ..........................................
State and local student loan bonds...................................................................................
State and local debt for private nonprofit educational facilities.........................................
State and local debt for private nonprofit health facilities.................................................
State and local debt for veterans housing........................................................................
Note: Provisions with estimates denoted “normal tax method” have no revenue loss under the reference tax law method.
All estimates have been rounded to the nearest $5 million. Totals in table 6-1 may differ from figures in table 6-2 because of rounding.
*$2.5 million or less.
11n addition, the partial exemption from the excise tax for alcohol fuels results in a reduction in excise tax receipts of $675 million in 1995.
2 The figures in the table indicate the effect of the child medical insurance premium credit on receipts. The effect on outlays in 1994 is $395 million.
3 The figures in the table indicate the effect of the earned income tax credit on receipts. The effect on outlays in 1995 is $15,795 million.
57
6. TAX EXPENDITURES
TABLE 6-2. CORPORATE AND INDIVIDUAL INCOME TAX REVENUE LOSS ESTIMATES FOR TAX EXPENDITURES
(In millions of dollars)
Revenue Loss
Corporations
1994
1995
1996
Individuals
1997
1998
1999
1993
1994
1995
1996
1997
1998
1999
2,115
1993
2,060
2,030
2,020
2,015
2,030
2,055
1,000
—
—
—
1,055
—
—
—
1,115
—
—
—
National defense:
Exclusion of benefits and allowances to armed forces personnel.........
International affairs:
Exclusion of income earned abroad by United States citizens..............
Exclusion of income of foreign sales corporations.................................
Inventory property sales source rules exception.....................................
Interest allocation rules exception for certain financial operations.........
Deferral of income from controlled foreign corporations (normal tax
method)................................................................................................
1200
1,100
100
1,300
1,200
95
1,400
1,300
95
1,500
1,400
95
1,600
1,500
95
1,700
1,600
95
1,800
1,700
95
510
—
—
—
860
—
—
—
895
—
—
—
945
—
—
—
1,600
1,600
1,700
1,800
2,000
2,200
2,400
—
—
—
_
_
_
2,025
1,210
2,195
1,365
2,345
1,240
2,515
730
2,685
315
2,875
135
3,075
45
35
30
35
30
45
30
45
10
55
—
55
—
55
—
0
270
270
_
_
_
__
_
—
_
_
_
_
_
140
15
110
15
105
15
75
15
45
15
40
20
70
20
45
5
35
5
35
5
25
5
15
5
15
5
25
5
745
85
640
760
85
760
775
85
820
790
85
850
800
90
840
815
90
800
830
90
750
250
15
120
250
15
140
260
15
150
265
15
150
265
15
150
275
15
140
275
15
130
—
65
55
5
15
—
70
60
5
45
—
70
65
5
55
—
70
70
5
55
—
70
75
5
55
—
70
80
5
60
—
65
85
5
60
50
10
100
*
10
0
50
15
105
*
50
15
105
#
50
15
105
*
50
15
105
*
50
15
100
*
10
5
30
10
40
10
45
10
50
15
105
*
45
15
35
45
85
110
120
120
120
15
55
60
65
70
70
70
45
160
—
45
45
165
—
45
45
165
—
45
45
165
—
45
45
170
—
45
45
175
—
45
50
180
—
45
5
25
*
5
30
*
5
30
*
5
30
*
5
5
5
5
30
*
5
5
30
*
5
5
30
*
5
240
—
390
245
—
405
250
—
415
245
—
435
240
—
460
235
—
485
225
—
505
355
10
145
365
15
155
375
15
160
370
15
165
360
15
175
350
15
185
340
15
190
20
45
20
40
20
40
20
40
20
35
20
35
25
35
15
90
15
90
15
85
20
85
20
85
20
80
20
80
10
10
—
10
10
—
10
10
—
10
10
—
10
10
—
10
10
—
10
10
—
65
80
10
115
60
75
10
135
60
75
10
140
55
70
10
145
55
70
10
145
55
70
10
145
60
75
10
150
300
30
210
340
35
225
380
40
245
420
40
265
465
45
280
510
50
305
560
55
325
—
7,310
—
7,890
—
8,485
—
9,120
5
105
120
5
110
125
5
110
135
5
115
140
5
120
145
5
130
155
5
135
160
General science, space, and technology:
Expensing of research and experimentation expenditures (normal tax
method)................................................................................................
Credit for increasing research activities ..................................................
Suspension of the allocation of research and experimentation expendi
tures .....................................................................................................
Energy:
Expensing of exploration and development costs:
Oil and gas...........................................................................................
Other fuels............................................................................................
Excess of percentage over cost depletion:
Oil and gas..........................................................................................
Other fuels...........................................................................................
Alternative fuel production credit.............................................................
Exception from passive loss limitation for working interests in oil and
gas properties.....................................................................................
Capital gains treatment of royalties on coal ...........................................
Exclusion of interest on State and local IDBs for energy facilities........
New technology credit..............................................................................
Alcohol fuel credit1 ..................................................................................
Tax credit and deduction for dean-fuel burning vehicles and properties
Exclusion from income of conservation subsidies provided by public
utilities..................................................................................................
45
20
Natural resources and environment:
Expensing of exploration and development costs, nonfuel minerals.....
Excess of percentage over cost depletion, nonfuel minerals.................
Capital gains treatment of iron ore..........................................................
Special rules for mining reclamation reserves........................................
Exclusion of interest on State and local IDBs for pollution control and
sewage and waste disposal facilities..................................................
Capital gains treatment of certain timber income...................................
Expensing of multiperiod timber growing costs ......................................
Investment credit and seven-year amortization for reforestation ex
penditures .............................................................................................
Tax incentives for preservation of historic structures .............................
5
Agriculture:
Expensing of certain capital outlays........................................................
Expensing of certain multiperiod production costs .................................
Treatment of loans forgiven solvent farmers as if insolvent..................
Capital gains treatment of certain income ..............................................
Commerce and housing:
Financial institutions and insurance:
Exemption of credit union income.......................................................
Excess bad debt reserves of financial institutions .............................
Exclusion of interest on life insurance savings ..................................
Special alternative tax on small property and casualty insurance
companies........................................................................................
Tax exemption of certain insurance companies.................................
Small life insurance company deduction.............................................
Exemption of RIC expenses from the 2% floor for miscellaneous
itemized deductions.........................................................................
Housing:
Exclusion of interest on owner-occupied mortgage subsidy bonds ....
Exclusion of interest on State and local debt for rental housing ......
—
—
—
9,810 10,500 11,335
705
385
715
365
705
345
680
320
650
295
625
270
-
-
-
-
-
-
—
—
—
—
—
—
—
525
690
400
-
600
690
810
925
1,055
1,205
1,025
600
1,055
585
1,070
555
1,070
525
1,035
490
990
950
455
415
58
ANALYTICAL PERSPECTIVES
TABLE 6-2. CORPORATE AND INDIVIDUAL INCOME TAX REVENUE LOSS ESTIMATES FOR TAX EXPENDITURES—Continued
(In m
illions of dollars)
Revenue Loss
Corporations
1994
1993
Deductibility of mortgage interest on owner-occupied homes ...........
Deductibility of State and local property tax on owner-occupied
homes...............................................................................................
Deferral of income from post 1987 installment sales.........................
Deferral of capital gains on home sales.............................................
Exclusion of capital gains on home sales for persons age 55 and
over.................................................................................................
Exception from passive loss rules for $25,000 of rental loss............
Accelerated depreciation on rental housing (normal tax method) .....
Commerce:
Cancellation of indebtedness...............................................................
Permanent exceptions from imputed interest rules............................
Capital gains (other than agriculture, timber, iron ore, and coal)
(normal tax method) ........................................................................
Step-up basis of capital gains at death..............................................
Carryover basis of capital gains on gifts............................................
Ordinary income treatment of loss from small business corporation
stock sale........................................................................................
Accelerated depreciation of buildings other than rental housing (nor
mal tax method)...............................................................................
Accelerated depreciation of machinery and equipment (normal tax
method)............................................................................................
Expensing of certain small investments (normal tax method)...........
Amortization of start-up costs (normal tax method)...........................
Graduated corporation income tax rate (normal tax method)............
Exclusion of interest on small issue ID B s..........................................
Deferral of gains from sale of broadcasting facilities to minority
owned business...............................................................................
Treatment of Alaska Native Corporations...........................................
1995
1996
Individuals
1998
1997
1999
1995
1996
1997
1998
48,705 51,835 54,800 57,985 61,420 65,050 68,785
—
210
—
__
_
_
_
_
225
235
240
245
250
255
13,055 13,865 14,655 15,545 16,425 17,395 18,395
690
710
740
610
700
720
730
13,265 13,925 14,620 15,195 15,620 15,915 16,065
720
730
765
815
855
895
4,625
6,070
415
4,770
5,945
365
4,960
5,775
370
5,155
5,680
385
5,300
5,625
405
5,400
5,595
430
5,450
5,545
450
60
140
780
120
150
110
150
70
150
35
155
10
155
-10
160
5,510 6,565 6,920 7,045 7,120 7,160 7,225
25,340 26,850 28,305 29,480 30,265 30,710 30,655
120
125
135
140
145
150
130
25
30
30
35
35
35
35
3,350
705
720
765
820
895
980
1,060
15,840 18,420 18,720 18,140 17,965 17,200 16,210
595
470
345
235
145
590
785
100
100
105
105
110
110
100
3,325 3,655 3,890 4,140 4,340 4,540 4,745
100
335
265
210
160
125
110
3,785
945
100
4,355
1,310
100
4,490
965
100
4,410
765
105
4,365
560
110
4,180
380
110
3,940
240
115
530
425
335
260
200
170
155
*
*
*
*
*
*
2,190
2,275
2,415
2,605
2,845
3,100
260
65
275
45
290
30
305
20
320
15
335
10
350
5
15
—
15
—
15
—
15
—
15
—
15
—
15
—
465
30
580
30
680
25
780
25
885
25
980
20
295
25
0
315
25
45
335
30
95
350
30
130
370
30
155
125
125
120
115
285
295
300
—
600
-
—
640
-
130
—
Transportation:
Deferral of tax on shipping companies .......................
Exclusion of reimbursed employee parking expenses .
Exclusion for employer-provided transit passes..........
1994
1993
_
_
_
_
_
_
1,790
10
1,845
30
1,930
40
2,015
50
2,100
65
2,190
80
2,275
95
1,050
20
1,080
60
1,345
60
1,585
55
1,820
55
2,060
55
2,290
50
2,450
50
385
35
175
405
35
195
435
—
5
470
—
110
495
—
235
520
—
310
545
—
355
575
—
390
600
425
110
100
95
790
185
835
185
875
185
920
180
965
165
1,015
155
1,065
145
310
315
325
340
420
440
450
460
470
485
505
—
670
-
—
700
—
740
-
—
780
—
—
820
-
*
505
1,360
215
5
520
1,480
235
5
535
1,560
85
5
545
1,640
—
10
565
1,720
—
10
580
1,810
—
15
595
1,900
260
—
320
—
270
—
50
—
30
—
15
—
—
120
—
130
—
130
—
130
—
135
—
135
—
135
30
620
490
2,540
30
45
675
525
2,675
30
75
725
550
2,820
30
55
775
580
2,975
30
10
830
610
3,145
30
10
890
640
3,320
30
5
955
670
3,510
30
15
15
15
15
15
15
15
5
5
5
5
5
5
750
800
840
880
930
980
Community and regional development:
Credit for low-income housing investments.............................................
Investment credit for rehabilitation of structures (other than historic)....
Exclusion of interest on IDBs for airports, docks, and sports and con
vention facilities....................................................................................
Exemption of certain mutuals’ and cooperatives’ income ......................
Empowerment zones................................................................................
Education, training, employment, and social services:
Education:
Exclusion of scholarship and fellowship income (normal tax method)
Exclusion of interest on State and local student loan bonds............
Exclusion of interest on State and local debt for private nonprofit
educational facilities.........................................................................
Exclusion of interest on savings bonds transferred to educational in
stitutions ..........................................................................................
Parental personal exemption for students age 19 or over
Deductibility of charitable contributions (education)............
Exclusion of employer provided educational assistance ....
Training, employment, and social services:
Targeted jobs credit .
Exclusion of employer provided child care.................................
Exclusion of employee meals and lodging (other than military) .
Credit for child and dependent care expenses ..........................
Credit for disabled access expenditures .
Expensing of costs of removing certain architectural barriers to the
handicapped
Deductibility of charitable contributions, other than education and
health................................................................................................
Exclusion of certain foster care payments .
Exclusion of parsonage allowances..........
—
1,020 12,380 13,490 14,240 14,950 15,700 16,480
40
35
35
25
30
30
395
290
320
355
260
235
17,310
40
440
59
6. TAX EXPENDITURES
TABLE 6-2. CORPORATE AND INDIVIDUAL INCOME TAX REVENUE LOSS ESTIMATES FOR TAX EXPENDITURES—Continued
(In m
illions of dollars)
Revenue Loss
Corporations
1993
Health:
Exclusion of employer contributions for medical insurance premiums
and medical care .................................................................................
Credit for child medical insurance premiums2 ........................................
Deductibility of medical expenses............................................................
Exclusion of interest on State and local debt for private nonprofit
health facilities.....................................................................................
Deductibility of charitable contributions (health)......................................
Tax credit for orphan drug research .......................................................
Special Blue Cross/Blue Shield deduction..............................................
Income security:
Exclusion of railroad retirement system benefits....................................
Exclusion of workmen’s compensation benefits......................................
Exclusion of public assistance benefits (normal tax method) ................
Exclusion of special benefits for disabled coal miners...........................
Exclusion of military disability pensions ..................................................
Net exclusion of pension contributions and earnings:
Employer plans ...................................................................................
Individual Retirement Accounts...........................................................
Keogh plans........................................................................................
Exclusion of employer provided death benefits......................................
Exclusion of other employee benefits:
Premiums on group term life insurance..............................................
Premiums on accident and disability insurance..................................
Income of trusts to finance supplementary unemployment benefits ...
Special ESOP rules (other than investment credit)................................
Additional deduction for the blind............................................................
Additional deduction for the elderly.........................................................
Tax credit for the elderly and disabled ...................................................
Deductibility of casualty losses................................................................
Earned income credit3 .............................................................................
1994
1995
1996
Individuals
1997
1998
1999
General purpose fiscal assistance:
Exclusion of interest on public purpose State and local debt................
Deductibility of nonbusiness State and local taxes other than on
owner-occupied homes........................................................................
Tax credit for corporations receiving income from doing business in
U.S. possessions .................................................................................
1995
1996
1997
51,445 56,265 61,675 67,345 73,450 79,995
125
3,010 3,270 3,560 3,870 4,195 4,535
0
105
585
400
35
115
600
420
15
125
615
450
635
470
490
685
520
140
10
0
170
840
1,390
870
1,510
895
1,600
920
1,680
950
1,760
980
1,850
415
3,815
500
565
380
185
395
4,240
545
400
4,455
585
405
4,740
605
95
130
410
5,065
640
95
130
420
5,565
695
90
130
10
0
10
0
130
130
10
0
130
1,015
1,940
425
60
,1 0
735
80
130
49,430 48,750 55,540 59,010 59,490 59,950 60,400
5,720 5,415 5,290 5,275 5,175 4,970 4,615
3,245 3,670 3,875 4,130 4,400 4,690 5,000
25
30
35
35
40
45
40
2,620
135
35
2,035
1,760
1,635
1,545
1,415
2,750
140
35
2,880
140
35
3,020
145
35
3,170
150
35
3,325
160
35
3,485
165
35
40
1,510
60
695
3,605
2,070
45
1,535
65
770
3,940
45
1,555
65
230
5,100
45
1,570
70
230
5,795
50
1,585
70
230
6,435
50
1,600
75
230
6,740
55
1,605
75
230
7,125
16,695 16,525
1,765 1,905
3,610 3,730
17,370
2,105
3,940
18,140
2,320
4,150
2,540
4,365
19,670
2,765
4,590
80
55
55
1,920
75
65
50
1,855
70
70
50
1,885
70
75
45
1,985
75
80
45
2,025
85
80
45
7,160
7,395
7,595
7,830
8,095
8,395
1,285
18,310
1,725
3,620
1,755
80
45
40
35
35
30
30
30
30
4,810
4,955
5,095
5,255
5,440
5,645
6,915
22,555 24,255 25,640 27,130 28,740 30,435 32,185
3,075
2,890
2,630
2,680
2,735
2,815
2,960
Interest:
Deferral of interest on savings bonds.....................................................
Addendum—Aid to State and local governments:
Deductibility of:
Property taxes on owner-occupied homes..........................................
Nonbusiness State and local taxes other than on owner-occupied
homes..............................................................................................
Exclusion of interest on:
Public purpose State and local debt...................................................
IDBs for certain energy facilities .........................................................
IDBs for pollution control and sewage and waste disposal facilities ..
Small-issue IDBs..................................................................................
Owner-occupied mortgage revenue bonds.........................................
State and local debt for rental housing ..............................................
IDBs for airports, docks, and sports and convention facilities...........
State and local student loan bonds....................................................
1994
10
1
Social Security:
Exclusion of social security benefits:
OASI benefits for retired workers........................................................
Disability insurance benefits................................................................
Benefits for dependents and survivors................................................
Veterans benefits and services:
Exclusion of veterans disability compensation........................................
Exclusion of veterans pensions..............................................................
Exclusion of Gl bill benefits.....................................................................
Exclusion of interest on State and local debt for veterans housing......
1993
1,130
13,055
1,190
1,250
1,310
13,865 14,655
15,545
1,450
1,520
16,425 17,395
18,395
1,380
22,555 24,255 25,640 27,130 28,740 30,435 32,185
4,660
65
240
335
690
400
295
125
4,810
70
245
265
705
385
315
125
4,955
70
250
20
1
715
365
335
10
2
5,095
70
245
160
705
345
350
115
5,255
70
240
125
680
320
370
10
1
5,440
70
235
5,645
65
225
650
295
385
625
270
405
95
10
1
10
0
10
0
6,915
10
0
355
530
1,025
600
435
185
7,160
105
365
425
1,055
585
470
185
7,395
105
375
335
1,070
555
495
185
7,595
105
370
260
1,070
525
520
180
7,830
105
360
20
0
1,035
490
545
165
8,095
105
350
170
990
455
575
155
8,395
10
0
340
155
950
415
600
145
60
ANALYTICAL PERSPECTIVES
TABLE 6-2. CORPORATE AND INDIVIDUAL INCOME TAX REVENUE LOSS ESTIMATES FOR TAX EXPENDITURES—Continued
(In m
illions of dollars)
Revenue Loss
Corporations
1993
State and local debt for private nonprofit educational facilities.........
State and local debt for private nonprofit health facilities..................
State and local debt for veterans housing..........................................
285
565
40
1994
295
585
35
1995
300
600
35
1996
Individuals
1997
310
615
30
315
635
30
1998
325
660
30
1999
340
685
30
1993
420
840
60
1994
440
870
55
1995
450
895
50
1996
460
920
50
1997
470
950
45
1998
485
980
45
1999
505
1,015
45
Note: Provisions with estimates denoted “normal tax method” have no revenue loss under the reference tax law method.
All estimates have been rounded to the nearest $5 million.
*$2.5 million or less.
1 1n addition, the partial exemption from the excise tax for alcohol fuels results in a reduction in excise tax receipts of $675 million in 1995.
2 The figures in the table indicate the effect of the child medical insurance premium credit on receipts. The effect on outlays in 1994 is $395 million.
3 The figures in the table indicate the effect of the earned income tax credit on receipts. The effect on outlays in 1995 is $15,795 million.
Interpreting Tax Expenditure Estimates
Tax expenditure revenue loss estimates do not nec
essarily equal the increase in Federal revenues (or the
reduction in budget deficits) that would accompany the
repeal of the special provisions, for the following rea
sons:
• Eliminating a tax expenditure may have incentive
effects that alter economic behavior. These incen
tives can affect the resulting magnitudes of the
formerly subsidized activity or of other tax pref
erences or Government programs. For example,
if deductibility of mortgage interest were limited,
some taxpayers would hold smaller mortgages,
with a concomitantly smaller effect on the budget
than if no such limits were in force.
• Tax expenditures are interdependent even without
incentive effects. Repeal of a tax expenditure provi
sion can increase or decrease the the revenue
losses associated with other provisions. For exam
ple, even if behavior does not change, repeal of
an itemized deduction could increase the revenue
losses from other deductions because some tax
payers would be moved into higher tax brackets.
Alternatively, repeal of an itemized deduction
could lower the revenue loss from other deductions
if taxpayers are led to claim the standard deduc
tion instead of itemizing. Similarly, if two provi
sions were repealed simultaneously, the increase
in tax liability could be greater or less than the
sum of the two separate tax expenditures, since
each is estimated assuming that the other remains
in force.
• The annual value of tax expenditures for tax defer
rals is reported on a cash basis in all tables except
table 6-3. Cash-based estimates reflect the dif
ference between taxes deferred in the current year
and incoming revenues that are received due to
deferrals of taxes from prior years. While such
estimates are useful as a measure of cash flows
into the Government, they do not always accu
rately reflect the true economic cost of these provi
sions. For example, for a provision where activity
levels have changed, so that incoming tax receipts
from past deferrals are greater than deferred re
ceipts from new activity, the cash-basis tax ex
penditure estimate can be negative, despite the
fact that in present-value terms current deferrals
do have a real cost to the Government. Alter
natively, in the case of a newly enacted deferral
provision, a cash-based estimate can overstate the
real cost to the Government because the newly
deferred taxes will ultimately be received. Presentvalue estimates, which are a useful supplement
to the cash-basis estimates for provisions involving
deferrals, are discussed below.
• Repeal of some provisions could affect overall levels
of income and rates of economic growth. In prin
ciple, repeal of major tax provisions may have
some impact on the budget economic assumptions.
In general, however, most changes in particular
provisions are unlikely to have significant effects
on macroeconomic conditions.
Present-Value Estimates
Discounted present-value estimates of revenue losses
are presented in table 6-3 for certain provisions that
involve tax deferrals or similar long-term revenue ef
fects. These estimates complement the cash-based tax
expenditure estimates presented in the other tables in
this chapter.
The present-value estimates represent the revenue
losses, net of future tax payments, that follow from
activities undertaken during calendar year 1994 which
cause the deferrals or related revenue effects. For in
stance, a pension contribution in 1994 would cause a
deferral of tax payments on wages in 1994 and on pen
sion earnings on this contribution (e.g., interest) in
later years. In some future year, however, the 1994
pension contribution and accrued earnings will be paid
out and taxes will be due; these receipts are included
in the present-value estimate. In general, this concep
tual approach is similar to the one used for reporting
the budgetary effects of credit programs, where direct
loans and guarantees in a given year affect future cash
flows.
The discount rate used for the present-value esti
mates is the interest rate on comparable maturity
Treasury debt. As noted in the table, the estimates
for several of the provisions have been made based
on the normal tax baseline, as by definition there is
61
6. TAX EXPENDITURES
TABLE 6-3. PRESENT VALUE OF SELECTED TAX EXPENDITURES FOR
ACTIVITY IN CALENDAR YEAR 1994
(In millions of dollars)
Provision
Deferral of income from controlled foreign corporations (normal tax method)...........................
Expensing of research and experimentation expenditures (normal tax method) ........................
Expensing of exploration and development costs—oil and gas..................................................
Expensing of exploration and development costs—other fuels...................................................
Expensing of exploration and development costs—nonfuels......................................................
Expensing of multiperiod timber growing costs...........................................................................
Expensing of certain multiperiod production costs—agriculture..................................................
Expensing of certain capital outlays—agriculture........................................................................
Deferral of capital gains on home sales.....................................................................................
Accelerated depreciation of rental housing (normal tax method)................................................
Accelerated depreciation of buildings other than rental housing (normal tax method)...............
Accelerated depreciation of machinery and equipment (normal tax method) ............................
Expensing of certain small investments (normal tax method).....................................................
Amortization of start-up costs (normal tax method)....................................................................
Deferral of capital gains from sale of broadcasting facilities to minority-owned businesses......
Deferral of tax on shipping companies.......................................................................................
Credit for low-income housing investments.................................................................................
Exclusion of pension contributions and earnings—employer plans............................................
Exclusion of IRA contributions and earnings ..............................................................................
Exclusions of contribution and earnings for Keogh plans..........................................................
Exclusion of interest on State and local public-purpose bonds..................................................
Exclusion of interest on State and local non-public purpose bonds...........................................
Deferral of interest on U.S. savings bonds.................................................................................
Present Value
of Revenue
Loss
1,640
2,035
275
35
90
235
65
80
15,605
1,140
670
22,105
3,995
165
230
10
2,055
40,500
1,735
2,710
16,140
8,780
655
Note: Provisions with estimates denoted “normal tax method” have no revenue loss under the reference tax law method.
no tax expenditure for these provisions under the ref
erence tax law baseline.
Government payment for service. This occurs because
an outlay program would increase the taxpayer's pre
tax income. For some tax expenditures, however, the
Outlay Equivalents
revenue loss equals the outlay equivalent measure. This
The concept of “outlay equivalents” complements occurs when the tax expenditure is judged to function
“revenue losses” as a measure of the budget effect of like a price reduction or tax deferral that does not
tax expenditures. It is the amount of outlay that would directly enter the taxpayer's pre-tax income.1
be required to provide the taxpayer the same after
tax income as would be received through the tax pref
i Budget outlay figures generally reflect the pre-tax price of the resources. In some in
erence. The outlay equivalent measure allows a com
stances, however, Government purchases or
are exempted
parison of the cost of the tax expenditure with that tax provision. When this occurs, the outlaysubsidiesunderstates thefrom tax by a special
figure
resource cost of the
of a direct Federal outlay. Outlay equivalents are re program and is, therefore, not comparable with other outlay amounts. For example, the
outlays for certain military personnel allowances are not taxed. If this form of compensation
ported in table 6-4.
were treated as part of the employee’s taxable income, the Defense Department would
The measure is larger than the revenue loss estimate have to make larger cash payments to its military personnel to leave them as well off
after
as they
must be added to the
budget
when the tax expenditure is judged to function as a outlaytax make this are now.ofThe tax subsidy expenditures comparable tax-exempt outlays.
to
element national defense
with other
http://fraser.stlouisfed.org/
150-003 0 -9 4 -3
Federal Reserve Bank of St. Louis
(QL 3)
62
ANALYTICAL PERSPECTIVES
TABLE 6-4. OUTLAY EQUIVALENT ESTIMATES FOR TAX EXPENDITURES IN THE INCOME TAX
(In millions of dollars)
Outlay Equivalents
,
1993
1994
1995
1996
1997
1998
1999
National defense:
Exclusion of benefits and allowances to armed forces personnel.........................................
2,465
2,395
2,365
2,350
2,355
2,375
2,395
International affairs:
Exclusion of income earned abroad by United States citizens .............................................
Exclusion of income of foreign sales corporations................................................................
Inventory property sales source rules exception...................................................................
Interest allocation rules exception for certain financial operations........................................
Deferral of income from controlled foreign corporations (normal tax method) .....................
675
1,845
1,690
150
1,600
1,135
2,000
1,845
140
1,600
1,185
2,155
2,000
140
1,700
1,255
2,310
2,155
140
1,800
1,325
2,460
2,310
140
2,000
1,400
2,615
2,460
140
2,200
1,480
2,770
2,615
140
2,400
General science, space, and technology:
Expensing of research and experimentation expenditures (normal tax method)
Credit for increasing research activities.................................................................................
Suspension of the allocation of research and experimentation expenditures.......................
2,060
1,900
0
2,230
2,150
385
2,390
1,950
385
2,560
1,145
—
2,740
485
—
2,930
205
—
3,130
65
—
185
20
145
20
140
20
100
20
60
20
55
25
95
25
1,400
140
1,070
50
15
235
85
15
20
70
1,425
140
1,260
50
20
245
90
15
65
140
1,455
140
1,370
50
20
250
95
35
90
205
1,480
140
1,400
50
20
255
100
45
90
245
1,505
150
1,390
50
20
250
105
50
95
265
1,535
150
1,330
50
20
245
110
50
105
265
1,560
150
1,240
50
20
240
115
50
110
265
50
260
*
50
270
*
50
270
*
50
275
*
50
280
*
50
285
*
50
50
50
50
50
50
55
300
*
50
855
15
535
40
135
885
20
555
40
130
895
20
575
40
125
885
20
605
40
125
865
20
635
45
120
840
20
665
45
115
815
20
700
45
115
75
90
10
155
70
90
10
180
65
85
10
185
65
80
10
195
60
80
10
195
65
80
10
195
65
85
10
200
380
45
10,580
5
145
170
700
435
50
11,415
5
150
180
800
490
55
12,275
5
160
190
915
535
65
13,190
5
165
200
1,075
590
70
14,185
5
170
210
1,230
650
75
15,250
5
180
220
1,405
715
80
16,395
5
190
230
1,605
2,460
1,425
48,705
13,055
820
13,265
6,165
6,070
1,190
2,540
1,395
51,835
13,865
915
13,925
6,360
5,945
1,085
2,575
1,325
54,800
14,655
935
14,620
6,615
5,775
1,100
2,545
1,245
57,985
15,545
950
15,195
6,875
5,680
1,145
2,465
1,160
61,420
16,425
965
15,620
7,065
5,625
1,220
2,360
1,070
65,050
17,395
980
15,915
7,200
5,595
1,290
2,260
985
68,785
18,395
995
16,065
7,265
5,545
1,345
60
140
120
150
110
150
70
150
35
155
10
155
-10
160
Energy:
Expensing of exploration and development costs:
Oil and g a s ........................................................................................................................
Other fuels.........................................................................................................................
Excess of percentage over cost depletion:
Oil and g a s ........................................................................................................................
Other fuels.........................................................................................................................
Alternative fuel production credit............................................................................................
Exception from passive loss limitation for working interests in oil and gas properties.........
Capital gains treatment of royalties on coal..........................................................................
Exclusion of interest on State and local IDBs for energy facilities .......................................
New technology credit...........................................................................................................
Alcohol fuel credit1 ................................................................................................................
Tax credit and deduction for dean-fuel burning vehicles and properties .............................
Exclusion from income of conservation subsidies provided by public utilities......................
Natural resources and environment:
Expensing of exploration and development costs, nonfuel minerals.....................................
Excess of percentage over cost depletion, nonfuel minerals................................................
Capital gains treatment of iron o re .......................................................................................
Special rules for mining reclamation reserves.......................................................................
Exclusion of interest on State and local IDBs for pollution control and sewage and waste
disposal facilities................................................................................................................
Capital gains treatment of certain timber income..................................................................
Expensing of multiperiod timber growing costs.....................................................................
Investment credit and seven-year amortization for reforestation expenditures.....................
Tax incentives for preservation of historic structures............................................................
Agriculture:
Expensing of certain capital outlays.......................................................................................
Expensing of certain multiperiod production costs................................................................
Treatment of loans forgiven solvent farmers as if insolvent..................................................
Capital gains treatment of certain income.............................................................................
Commerce and housing:
Financial institutions and insurance:
Exemption of credit union income .....................................................................................
Excess bad debt reserves of financial institutions............................................................
Exclusion of interest on life insurance savings.................................................................
Special alternative tax on small property and casualty insurance companies..................
Tax exemption of certain insurance companies................................................................
Small life insurance company deduction...........................................................................
Exemption of RIC expenses from the 2% floor for miscellaneous itemized deductions ....
Housing:
Exclusion of interest on owner-occupied mortgage revenue bonds..................................
Exclusion of interest on State and local debt for rental housing......................................
Deductibility of mortgage interest on owner-occupied homes...........................................
Deductibility of State and local property tax on owner-occupied homes..........................
Deferral of income from post 1987 installment sales........................................................
Deferral of capital gains on home sales ...........................................................................
Exclusion of capital gains on home sales for persons age 55 and over.........................
Exception from passive loss rules for $25,000 of rental loss ...........................................
Accelerated depreciation on rental housing (normal tax method).....................................
Commerce:
Cancellation of indebtedness.............................................................................................
Permanent exceptions from imputed interest rules............................................................
63
6. TAX EXPENDITURES
TABLE 6-4. OUTLAY EQUIVALENT ESTIMATES FOR TAX EXPENDITURES IN THE INCOME TAX-Continued
(In millions of dollars)
Outlay Equivalents
1993
1994
1995
1996
1997
1998
1999
Capital gains (other than agriculture,timber, iron ore, and coal) (normal tax method) .....
Step-up basis of capital gains at death.............................................................................
Carryover basis of capital gains on gifts...........................................................................
Ordinary income treatment of loss from small business corp. stock sale........................
Accelerated depreciation of buildings other than rental housing (normal tax method).....
Accelerated depreciation of machinery and equipment (normal tax method)...................
Expensing of certain small investments (normal tax method)...........................................
Amortization of start-up costs (normal tax method)..........................................................
Graduated corporation income tax rate (normal tax method) ...........................................
Exclusion of interest on small issue industrial development bonds..................................
Deferral of gains from sale of broadcasting facilities to minority owned business ...........
Treatment of Alaska Native Corporations..........................................................................
7,345
34,060
120
35
2,895
19,625
1,540
200
4,750
1,220
260
65
8,755
36,090
125
40
2,995
22,775
2,095
200
5,220
985
275
45
9,225
38,045
130
40
3,185
23,210
1,560
200
5,555
770
290
30
9,395
39,625
135
50
3,430
22,550
1,235
210
5,910
595
305
20
9,495
40,679
140
50
3,745
22,330
905
215
6,200
465
320
15
9,545
41,280
145
50
4,075
21,380
610
220
6,485
400
335
10
9,635
41,205
150
50
4,410
20,155
385
225
6,780
370
350
5
Transportation:
Deferral of tax on shipping companies..................................................................................
Exclusion of reimbursed employee parking expenses..........................................................
Exclusion for employer-provided transit passes ....................................................................
15
2,330
15
15
2,400
35
15
2,510
50
15
2,625
65
15
2,735
80
15
2,845
100
15
2,960
115
Community and regional development:
Credit for low-income housing investments...........................................................................
Investment credit for rehabilitation of structures (other than historic) ...................................
Exclusion of interest on IDBs for airports, docks, and sports and convention facilities........
Exemption of certain mutuals’ and cooperatives’ income.....................................................
Empowerment zones .............................................................................................................
1,555
90
1,055
25
5
1,935
90
1,135
25
150
2,275
80
1,200
30
330
2,610
80
1,260
30
440
2,955
80
1,320
30
510
3,280
70
1,385
35
565
3,510
70
1,450
35
620
1,300
370
1,170
15
645
2,590
—
1,365
345
1,210
20
660
2,720
—
Education, training, employment, and social services:
Education:
Exclusion of scholarship and fellowship income (normal tax method)..............................
Exclusion of interest on State and local student loan bonds............................................
Exclusion1 interest on State and local debt for private nonprofit educational facilities ...
of
Exclusion of interest on savings bonds transferred to educational institutions ................
Parental personal exemption for students age 19 or over................................................
Deductibility of charitable contributions (education) ..........................................................
Exclusion of employer provided educational assistance....................................................
Training, employment, and social services:
Targeted jobs credit...........................................................................................................
Exclusion of employer provided child care........................................................................
Exclusion of employee meals and lodging (other than military)........................................
Credit for child and dependent care expenses.................................................................
Credit for disabled access expenditures............................................................................
Expensing of costs of removing certain architectural barriers to the handicapped...........
Deductibility of charitable contributions, other than education and health........................
Exclusion of certain foster care payments ........................................................................
Exclusion of parsonage allowances...................................................................................
1,000
445
1,015
5
560
1,960
255
1,070
445
1,055
5
575
2,120
275
1,120
440
1,080
5
595
2,230
100
1,180
420
1,105
10
605
2,340
1,235
395
1,135
10
630
2,460
—
—
160
810
600
3,200
205
20
13,130
30
290
305
880
640
3,375
220
20
14,290
40
320
395
945
670
3,555
220
20
15,080
40
355
325
1,010
705
3,755
220
20
15,830
45
395
60
1,085
740
3,965
225
20
16,630
45
440
40
1,160
780
4,190
225
20
17,460
50
485
20
1,245
815
4,425
225
20
18,330
50
540
Health:
Exclusion of employer contributions for medical insurance premiums and medical care .....
Credit for child medical insurance premiums2 ......................................................................
Deductibility of medical expenses.........................................................................................
Exclusion of interest on State and local debt for private nonprofit health facilities...............
Deductibility of charitable contributions (health) ....................................................................
Tax credit for orphan drug research......................................................................................
Special Blue Cross/Blue Shield deduction.............................................................................
58,910
130
3,010
2,015
1,770
0
150
64,670
145
3,270
2,100
1,910
50
160
70,805
77,615
100,675
—
3,560
2,155
2,020
20
175
3,870
2,215
2,130
84,750
—
4,195
2,285
2,230
92,435
—
—
—
185
415
3,815
500
100
130
395
4,240
545
100
130
400
4,455
585
100
130
67,320
7,790
4,270
30
66,960
7,510
4,965
40
3,440
180
35
2,955
50
3,610
185
35
2,910
55
Income security:
Exclusion of railroad retirement system benefits...................................................................
Exclusion of workmen’s compensation benefits ....................................................................
Exclusion of public assistance benefits (normal tax method)...............................................
Exclusion of special benefits for disabled coal miners .........................................................
Exclusion of military disability pensions.................................................................................
Net exclusion of pension contributions and earnings:
Employer plans..................................................................................................................
Individual Retirement Accounts..........................................................................................
Keogh plans.......................................................................................................................
Exclusion of employer provided death benefits.....................................................................
Exclusion of other employee benefits:
Premiums on group term life insurance ............................................................................
Premiums on accident and disability insurance................................................................
Income of trusts to finance supplementary unemployment benefits.................................
Special ESOP rules (other than investment credit)...............................................................
Additional deduction for the blind...........................................................................................
—
—
140
4,535
2,365
2,340
—
240
4,890
2,455
2,460
—
260
405
4,740
605
95
130
410
5,065
640
95
130
420
5,565
695
90
130
425
6,100
735
80
130
75,940
7,430
5,240
45
80,410
7,475
5,585
45
81,040
7,430
5,955
50
81,650
7,245
6,345
50
82,230
6,885
6,760
55
3,785
185
35
2,510
55
3,970
195
35
2,340
55
4,165
205
35
2,205
60
4,365
215
35
2,020
60
4,580
225
35
1,840
65
64
ANALYTICAL PERSPECTIVES
TABLE 6-4. OUTLAY EQUIVALENT ESTIMATES FOR TAX EXPENDITURES IN THE INCOME TAX-Continued
(In m
illions of dollars)
Outlay Equivalents
1993
Additional deduction for the elderly........................................................................................
Tax credit for the elderly and disabled..................................................................................
Deductibility of casualty losses...............................................................................................
Earned income credit3 ...........................................................................................................
1,830
75
900
4,240
Social Security:
Exclusion of social security benefits:
OASI benefits for retired workers ......................................................................................
Disability insurance benefits...............................................................................................
Benefits for dependents and survivors..............................................................................
18,310
1,725
3,620
Veterans benefits and services:
Exclusion of veterans disability compensation.......................................................................
Exclusion of veterans pensions..............................................................................................
Exclusion of Gl bill benefits...................................................................................................
Exclusion of interest on State and local debt for veterans housing......................................
1994
1995
1996
1997
1998
1999
1,855
80
1,000
4,635
1,880
80
300
5,995
1,900
85
300
6,815
1,920
90
300
7,575
1,935
90
300
7,925
1,940
95
300
8,380
16,695
1,765
3,610
16,525
1,905
3,730
17,370
2,105
3,940
18,140
2,320
4,150
18,880
2,540
4,365
19,670
2,765
4,590
1,755
80
45
140
1,860
80
55
130
1,920
75
65
120
1,855
70
70
115
1,885
70
75
110
1,985
75
80
105
2,025
85
80
105
General purpose fiscal assistance:
Exclusion of interest on public purpose State and local debt...............................................
Deductibility of nonbusiness State and local taxes other than on owner-occupied homes ...
Tax credit for corporations receiving income from doing business in U.S. possessions......
16,585
22,555
4,395
17,265
24,255
4,160
17,800
25,640
3,810
18,295
27,130
3,885
18,870
28,740
3,960
19,525
30,435
4,085
20,250
32,185
4,295
Interest:
Deferral of interest on savings bonds....................................................................................
1,130
1,190
1,250
1,310
1,380
1,450
1,520
13,055
22,555
13,865
24,255
14,655
25,640
15,545
27,130
16,425
28,740
17,395
30,435
18,395
32,185
16,585
235
855
1,220
2,460
1,425
1,055
445
1,015
2,015
140
17,265
245
885
985
2,540
1,395
1,135
445
1,055
2,100
130
17,800
250
895
770
2,575
1,325
1,200
440
1,080
2,155
120
18,295
255
885
595
2,545
1,245
1,260
420
1,105
2,215
115
18,870
250
865
465
2,465
1,160
1,320
395
1,135
2,285
110
19,525
245
840
400
2,360
1,070
1,385
370
1,170
2,365
105
20,250
240
815
370
2,260
985
1,450
345
1,210
2,455
105
Addendum—Aid to State and local governments:
Deductibility of:
Property taxes on owner-occupied homes........................................................................
Nonbusiness State and local taxes other than on owner-occupied homes......................
Exclusion of interest on:
Public purpose State and local debt .................................................................................
IDBs for certain energy facilities........................................................................................
IDBs for pollution control and sewage and waste disposal facilities................................
Small-issue IDBs ...............................................................................................................
Owner-occupied mortgage revenue bonds........................................................................
State and local debt for rental housing.............................................................................
IDBs for airports, docks, and sports and convention facilities ..........................................
State and local student loan bonds...................................................................................
State and local debt for private nonprofit educational facilities.........................................
State and local debt for private nonprofit health facilities.................................................
State and local debt for veterans housing........................................................................
'
Note: Provisions with estimates denoted “normal tax method" have outlay equivalents of zero under (he reference tax law method.
AD estimates have been rounded to the nearest $5 million.
*$2.5 million or less.
1 1n addition, the partial exemption from the excise tax for alcohol fuels results in a reduction in excise tax receipts of $675 million in 1995.
2 The figures in the table indicate the effect of the child medical insurance premium credit on receipts. The effect on outlays in 1994 is $395 million.
3 The figures in the table indicate the effect of the earned income tax credit on receipts. The effect on outlays in 1995 is $15,795 million.
Tax Expenditure Baselines
A tax expenditure is a preferential exception to the
baseline provisions of the tax structure. The 1974 Con
gressional Budget Act does not, however, specify the
baseline provisions of the tax law. Deciding whether
provisions are preferential exceptions, therefore, is a
matter of judgement. As in prior years, this year’s tax
expenditure estimates are presented using two base
lines: the normal tax baseline, which is used by the
Joint Committee on Taxation, and the reference tax law
baseline, which has been used by the Administration
since 1983.
The normal tax baseline is patterned on a com
prehensive income tax, which defines income as the
sum of consumption and the change in net wealth in
a given period of time. The normal tax baseline allows
personal exemptions, a standard deduction, and deduc
tions of the expenses incurred in earning income. It
is not limited to a particular structure of tax rates,
or by a specific definition of the taxpaying unit.
The reference tax law baseline is closer to existing
law. Reference law tax expenditures are limited to spe
cial exceptions in the tax code that serve programmatic
functions. These functions correspond to specific budget
categories such as national defense, agriculture, or
health care. While tax expenditures under the reference
law baseline are generally tax expenditures under the
normal tax baseline, the reverse is not always true.
Both the normal and reference tax baselines allow
several major departures from a pure comprehensive
income tax. For example:
• Income is taxable when realized in exchange. Thus,
neither the deferral of tax on unrealized capital
gains nor the tax exclusion of imputed income
(such as the rental value of owner-occupied hous
ing or farmers’ consumption of their own produce)
6. TAX EXPENDITURES
is regarded as a tax expenditure. Both accrued
and imputed income would be taxed under a com
prehensive income tax.
• There is a separate corporation income tax. Under
a comprehensive income tax corporate income
would be taxed only once—at the shareholder
level, whether or not distributed in the form of
dividends.
• Values of assets and debt are not adjusted for in
flation. A comprehensive income tax would adjust
the cost basis of capital assets and debt for
changes in the price level during the time the
assets or debt are held. Thus, under a comprehen
sive income tax baseline the failure to take ac
count of inflation in measuring depreciation, cap
ital gains, and interest income would be regarded
as a negative tax expenditure (i.e., a tax penalty),
and failure to take account of inflation in measur
ing interest costs would be regarded as a positive
tax expenditure (i.e., a tax subsidy).
While the reference law and normal tax baselines
are generally similar, areas of difference include:
• Tax rates. The separate schedules applying to the
various taxpaying units are included in the ref
erence law baseline. Thus, corporate tax rates
below the maximum statutory rate do not give
rise to a tax expenditure. The normal tax baseline
is similar, except that it specifies the current max
imum rate as the baseline for the corporate in
come tax. The lower tax rates applied to the first
, $10 million of corporate income are thus regarded
as a tax expenditure. Similarly, under the ref
erence law baseline, preferential tax rates for cap
ital gains generally do not yield a tax expenditure;
only capital gains treatment of otherwise “ordi
nary income,” such as that from coal and iron
ore royalties and the sale of timber and certain
agricultural products, is considered a tax expendi
ture. The alternative minimum tax is treated as
part of the baseline rate structure under both the
reference and normal tax methods.
• Income subject to the tax. Income subject to tax
is defined as gross income less the costs of earning
that income. The Federal income tax defines gross
income to include: (1) consideration received in
the exchange of goods and services, including labor
services or property; and (2) the taxpayer’s share
of gross or net income earned and/or reported by
another entity (such as a partnership). Under the
reference tax rules, therefore, gross income does
not include gifts—defined as receipts of money or
property that are not consideration in an ex
change—or most transfer payments, which can be
thought of as gifts from the Government.2 The
normal tax baseline also excludes gifts between
individuals from gross income. Under the normal
tax baseline, however, all cash transfer payments
from the Government to private individuals are
65
counted in gross income, and exemptions of such
transfers from tax are identified as tax expendi
tures. The costs of earning income are generally
deductible in determining taxable income under
both the reference and normal tax baselines.3
• Capital recovery. Under the reference tax law
baseline no tax expenditures arise from acceler
ated depreciation. Under the normal tax baseline,
the depreciation allowance for machinery and
equipment is determined using straight-line de
preciation over tax lives equal to mid-values of
the asset depreciation range (a depreciation sys
tem in effect from 1971 through 1980). The normal
tax baseline for real property is computed using
40-year straight-line depreciation.
• Treatment of foreign income. Both the normal and
reference tax baselines allow a tax credit for for
eign income taxes paid (up to the amount of U.S.
income taxes that would otherwise be due), which
prevents double taxation of income earned abroad.
Under the normal tax method, however, controlled
foreign corporations (CFCs) are not regarded as
entities separate from their controlling U.S. share
holders. Thus, the deferral of tax on income re
ceived by CFCs is regarded as a tax expenditure
under this method. In contrast, except for tax
haven activities, the reference law baseline follows
current law in treating CFCs as separate taxable
entities whose income is not subject to U.S. tax
until distributed to U.S. taxpayers. Under this
baseline, deferral of tax on CFC income is not
a tax expenditure because U.S. taxpayers gen
erally are not taxed on accrued, but unrealized,
income.
In addition to these areas of difference, the Joint
Committee on Taxation considers a somewhat broader
set of tax expenditures under its normal tax baseline
than is considered here.
Other Considerations
Additional tax expenditure analysis may be helpful
to policy makers. For example, information on the pro
grammatic and economic effects of tax expenditures
could be useful. The outputs and efficiency of tax ex
penditures could then be compared more systematically
with direct outlay programs.
In addition, the tax expenditure analysis could be
extended beyond the income and transfer taxes to in
clude payroll and excise taxes. The exclusion of certain
forms of compensation from the wage base, for instance,
reduces payroll taxes, as well as income taxes. Payroll
tax exclusions are complex to analyze, however, because
they also affect social insurance benefits. Certain tar
geted excise tax provisions might also be considered
3In the cases of individuals who hold "passive” equity interests in businesses, however,
the pro rata shares of sales and expense deductions reportable in a year are limited.
A passive business activity is defined to be one in which the holder of the interest, usually
a partnership interest, does not actively perform managerial or other participatory functions.
The taxpayer may generally report no larger deductions for a year than will reduce taxable
2 Gross income does, however, include transfer payments associated with past employment, income from such activities to zero. Deductions in excess of the limitation may be taken
in subsequent years, or when the interest is liquidated.
such as social security benefits.
66
ANALYTICAL PERSPECTIVES
tax expenditures. In this case challenges include deter
mining an appropriate baseline.
Descriptions of Income Tax Provisions
Descriptions of the individual and corporate income
tax expenditures reported upon in this chapter follow.
N a t io n a l D e f e n s e
Benefits and allowances to armed forces person
nel.—The housing and meals provided military person
nel, either in cash or in kind, are excluded from income
subject to tax.
I n t e r n a t io n a l A f f a ir s
Income earned abroad.—A U.S. citizen or resident
alien who resides in a foreign country or who stays
in one or more foreign countries for a minimum of
11 out of the past 12 months may exclude $70,000
per year of foreign-eamed income. Eligible taxpayers
also may exclude or deduct reasonable housing costs
in excess of one-sixth of the salary of a civil servant
at grade GS-14, step 1. These provisions do not apply
to Federal employees working abroad; however, the tax
expenditure estimate does reflect certain allowances
that are excluded from their taxable income.
Income of Foreign Sales Corporations.—The For
eign Sales Corporation (FSC) provisions exempt from
tax a portion of U.S. exporters' foreign trading income
to reflect the FSC’s sales functions as foreign corpora
tions. These provisions conform to the General Agree
ment on Tariffs and Trade.
Source rule exceptions.—The worldwide income of
U.S. persons is taxable by the United States and a
credit for foreign taxes paid is allowed. The amount
of foreign taxes that can be credited is limited to the
pre-credit U.S. tax on the foreign source income. Two
exceptions give rise to tax expenditures: sales of inven
tory property that reduces the U.S. tax of exporters;
and, for financial institutions and certain financing op
erations of nonfinancial enterprises, an exception from
the rules that require allocation of interest expenses
between domestic and foreign activities of a U.S. tax
payer.
Income of U.S.-controlled foreign corporations.—
The income of foreign corporations controlled by U.S.
shareholders is not subject to U.S. taxation. The income
becomes taxable only when the controlling U.S. share
holders receive dividends or other distributions from
their foreign stockholding. Under the normal tax meth
od, the currently attributable foreign source pre-tax in
come from such a controlling interest is subject to U.S.
taxation, whether or not distributed. Thus, under the
normal tax baseline the excess of controlled foreign cor
poration income over the amount distributed to a U.S.
shareholder gives rise to a tax expenditure in the form
of a tax deferral.
G e n e r a l S c ie n c e , S p a c e , a n d T e c h n o l o g y
Expensing R&E expenditures.—Research and ex
perimentation (R&E) projects can be viewed as invest
ments because their benefits accrue for several years
when they are successful. It is difficult, however, to
identify whether a specific R&E project is completed
and successful and, if it is successful, what its expected
life will be. For these reasons, the statutory provision
that these expenditures may be expensed is considered
part of the reference law. Under the normal tax meth
od, however, the expensing of R&E expenditures is
viewed as a tax expenditure. The baseline assumed for
the normal tax method is that all R&E expenditures
are successful and have an expected life of five years.
R&E credit.—Under legislation that expires on July
1, 1995, the tax credit is 20 percent of the qualified
expenditures in excess of each year’s base amount. This
threshold is determined by multiplying a “fixed-base
percentage” (limited to a maximum of .16 for existing
companies) by the average amount of the company’s
gross receipts for the four preceding years. The “fixedbase percentage” is the ratio of R&E expenses to gross
receipts for the 1984 to 1988 period. Start-up companies
that did not both incur qualified expenses and have
gross receipts in at least three of the base years are
assigned a “fixed-base percentage” of .03. A similar
credit with its own separate threshold is provided for
taxpayers' basic research grants to universities. Begin
ning in 1989, the otherwise deductible qualified R&E
expenditures were reduced by the amount of the credit.
Allocation of R&E expenditures.—Regulations is
sued in 1977 were designed to achieve a reasonable
allocation of R&E expenses between corporations’ do
mestic and foreign activities, but successive legislative
and administrative actions suspended this requirement.
Under legislation that expires on July 1, 1995, 50 per
cent of both U.S.- and foreign-based R&E expenses were
allocated to their respective income sources. The re
maining R&E expenses then had to be allocated on
the basis of gross sales or gross income.
Energy
Exploration and development costs.—In the case
of successful investments in domestic oil and gas wells,
intangible drilling costs, such as wages, the costs of
using machinery for grading and drilling, and the cost
of unsalvageable materials used in constructing wells,
may be expensed rather than amortized over the pro
ductive life of the property.
Integrated oil companies may currently deduct only
70 percent of such costs and amortize the remaining
30 percent over five years. The same rule applies to
the exploration and development costs of surface strip
ping and the construction of shafts and tunnels for
other fuel minerals.
6. TAX EXPENDITURES
67
Percentage depletion.—Independent fuel mineral excise tax is not assessed. This credit, equal to a sub
producers and royalty owners are generally allowed to sidy of 54 cents per gallon for alcohol used as a motor
take percentage depletion deductions rather than cost fuel, is intended to encourage substitution of alcohol
depletion on limited quantities of output. Under cost for petroleum-based gasoline.
depletion, outlays are deducted over the productive life
Credit and deduction for clean-fuel vehicles and
of the property based on the fraction of the resource
extracted. Under percentage depletion taxpayers deduct property.—A tax credit of 10 percent is provided for
a percentage of gross income from mineral production electric vehicles. In addition, a deduction is provided
at rates of 22 percent for uranium, 15 percent for oil, for other clean-fuel burning vehicles as well as refueling
gas and oil shale, and 10 percent for coal. The deduc property.
tion is limited to 50 percent of net income from the
Exclusion of utility conservation subsidies.—Sub
property, except for oil and gas where the deduction
sidies by public utilities for customer expenditures on
can be 100 percent of net property income. Production
energy conservation measures are excluded from the
from geothermal deposits is eligible for percentage de
gross income of the customer.
pletion at 65 percent of net income, but with no limit
on output and no limitation with respect to qualified
N a t u r a l R e s o u r c e s a n d E n v ir o n m e n t
producers. Unlike depreciation or cost depletion, per
centage depletion deductions can exceed the cost of the
Exploration curd development costs.—As is true
investment.
for fuel minerals, certain capital outlays associated with
exploration and development of nonfuel minerals may
Alternative fuel production credit.—A nontaxable
be expensed rather than depreciated over the life of
credit of $3 per barrel (in 1979 dollars) of oil-equivalent the asset.
production is provided for several forms of alternative
fuels. It is generally available as long as the price of
Percentage depletion.—Most nonfuel mineral ex
oil stays below $29.50 (in 1979 dollars).
tractors also make use of percentage depletion rather
than cost depletion, with percentage depletion rates
Oil and gas exception to passive loss limita ranging from 22 percent for sulphur down to 5 percent
tion.—Although owners of working interests in oil and for sand and gravel.
gas properties are subject to the alternative minimum
tax, they are exempted from the “passive income” limi
Capital gains treatment of iron ore and of cer
tations. This means that the working interest-holder, tain timber income.—Iron ore and certain timber sold
who manages on behalf of himself and all other owners under a royalty contract can be treated as capital gains.
the development of wells and incurs all the costs of
Mining reclamation reserves.—Taxpayers are al
their operation, may aggregate negative taxable income
from such interests with his income from all other lowed to establish reserves to cover certain costs of
sources. Thus, he will be relieved of the minimum tax mine reclamation and of closing solid waste disposal
properties. Net increases in reserves may be taken as
rules limit on tax deferrals.
a deduction against taxable income.
Capital gains treatment of royalties on coal.—
Tax-exempt bonds for pollution control and
Sales of certain coal under royalty contracts can be
treated as capital gains. While the top statutory rate waste disposal.—Interest on State and local govern
on ordinary income is 39.6 percent, the rates on capital ment debt issued to finance private pollution control
and waste disposal facilities was excludable from in
gains are limited to 28 percent.
come subject to tax. This authorization was repealed
Tax-exempt bonds for energy facilities.—Certain for pollution control equipment and a cap placed on
energy facilities, such as municipal electric and gas util the amount of debt that could be issued for waste dis
ities, may benefit from tax-exempt financing.
posal facilities by the Tax Reform Act of 1986.
New technology credits.—A credit of 10 percent is
available for investment in solar and geothermal energy
facilities. In addition, a credit of 1.5 cents is provided
per kilowatt hour of electricity produced from renewable
resources such as wind and biomass. The renewable
resources credit applies only to electricity produced by
a facility placed in service before July 1, 1999.
Expensing multiperiod timber growing costs.—
Generally, costs must be capitalized when goods are
produced for inventory used in one's own trade or busi
ness, or under contract to another party. Timber pro
duction, however, was specifically exempted from these
multiperiod cost capitalization rules, creating a special
benefit derived from this deferral of taxable income.
Alcohol fuel credit.—Gasohol, a motor fuel com
posed of at least 10 percent alcohol, is exempt from
5.4 of the 18.4 cents per gallon Federal excise tax on
gasoline. There is a corresponding income tax credit
for alcohol used as a fuel in applications where the
Credit and seven-year amortization for reforest
ation.—A special 10 percent investment tax credit is
allowed for up to $10,000 invested annually in clearing
land and planting trees for the ultimate production of
timber. The same amount of forestation investment
68
ANALYTICAL PERSPECTIVES
may also be amortized over a seven-year period. With
out this preference, the amount would have to be cap
italized and could be recovered (deducted) only when
the trees were sold or harvested 20 or more years later.
Moreover, the amount of forestation investment that
is amortizable is not reduced by any of the investment
credit that is allowed.
Historic preservation.—Expenditures to preserve
and restore historic structures qualify for a 20 percent
investment credit, but the depreciable basis must be
reduced by the full amount of the credit taken.
A g r ic u l t u r e
Expensing certain capital outlays.—Farmers, ex
cept for certain agricultural corporations and partner
ships, are allowed to deduct certain expenditures for
feed and fertilizer, as well as for soil and water con
servation measures. Expensing is allowed, even though
these expenditures are for inventories held beyond the
end of the year, or for capital improvements that would
otherwise be capitalized.
Expensing multiperiod livestock and crop pro
duction costs.—The production of livestock and crops
with a production period of less than two years is ex
empted from the uniform cost capitalization rules.
Farmers establishing orchards, constructing farm facili
ties for their own use, or producing any goods for sale
with a production period of two years or more may
elect not to capitalize costs. If they do, they must apply
straight-line depreciation to all depreciable property
they use in farming.
Loans forgiven solvent farmers.—Farmers are
granted special tax treatment by being forgiven the
tax liability on certain forgiven debt. Normally, the
amount of loan forgiveness is accounted for as a gain
(income) of the debtor and he must either report the
gain, or reduce his recoverable basis in the property
to which the loan relates. If the debtor elects to reduce
basis and the amount of forgiveness exceeds his basis
in the property, the excess forgiveness is taxable. How
ever, in the case of insolvent (bankrupt) debtors, the
amount of loan forgiveness never results in an income
tax liability.4 Farmers with forgiven debt are considered
insolvent for tax purposes, and thus qualify for income
tax forgiveness.
Capital gains treatment of certain income.—Cer
tain agricultural income, such as unharvested crops,
can be treated as capital gains.
C o m m e r c e a n d H o u s in g
This category includes a number of tax expenditure
provisions that also affect economic activity in other
functional categories. For example, provisions related
■♦The insolvent taxpayer’s carryover losses and unused credits are extinguished first,
and then his basis in assets reduced to no less than amounts still owed creditors. Finally,
the remainder of the forgiven debt is excluded from tax.
to investment, such as accelerated depreciation, could
also have been classified under the energy, natural re
sources and environment, agriculture, or transportation
categories.
Credit union income.—The earnings of credit
unions not distributed to members as interest or divi
dends are exempt from income tax.
Bad debt reserves.—Only commercial banks with
less than $500 million in assets, mutual savings banks,
and savings and loan associations are permitted to de
duct additions to bad debt reserves in excess of actually
experienced losses. The deduction for additions to loss
reserves allowed qualifying mutual savings banks and
savings and loan associations is 8 percent of otherwise
taxable income. To qualify, the thrift institutions must
maintain a specified fraction of their assets in the form
of mortgages, primarily residential.
Interest on life insurance savings.—Savings in the
form of policyholder reserves are accumulated from pre
mium payments and interest is earned on the reserves.
Such interest income is not taxed as it accrues nor
when received by beneficiaries upon the death of the
insured.
Small property and casualty insurance compa
nies.— Insurance companies that have annual net pre
mium incomes of less than $350,000 are exempted from
tax; those with $350,000 to $2,100,000 of net premium
incomes may elect to pay tax only on the income earned
by their investment portfolio.
Insurance companies owned by exempt organiza
tions.—Generally, the income generated by life and
property and casualty insurance companies is subject
to tax, albeit by special rules. Insurance operations con
ducted by such exempt organizations as fraternal soci
eties and voluntary employee benefit associations, how
ever, are exempted from tax.
Mutual funds (RIC) expenses.—Individuals may
deduct miscellaneous expenses only to the extent that
they exceed 2 percent of their adjusted gross income.
Certain costs incurred by individuals in managing their
personal securities portfolios are among the miscellane
ous deductions allowed taxpayers who itemize deduc
tions. Mutual funds (or regulated investment compa
nies) perform these portfolio management functions for
their shareholders and pay out their portfolio incomes
net of these expenses. Shareholders are permitted to
report their fund income net of management expenses;
thus, they are thereby able to deduct portfolio manage
ment expenses without regard to the miscellaneous de
duction limitation.
Mortgage housing bonds.—Interest on all mortgage
revenue bonds issued by State and local governments
is exempt from taxation. Proceeds are used to finance
homes purchased by first-time buyers—with low to
6. TAX EXPENDITURES
69
moderate incomes—of dwellings with prices under 90
percent of the average area purchase price.
There are limits imposed on the amount of tax-exempt State and local government bonds that could be
issued to fund private activity. The volume cap for single-family mortgage revenue bonds and multifamily
rental housing bonds is combined with the cap for stu
dent loans and industrial development bonds (IDBs).
The cap is set at $50 per capita or a minimum of
$150 million for each State.
States are authorized to issue mortgage credit certifi
cates (MCCs) in lieu of qualified mortgage revenue
bonds because the bonds are relatively inefficient sub
sidies to first-time home buyers. MCCs entitle home
buyers to income tax credits for a specified percentage
of interest on qualified mortgage loans. In this way,
the entire amount of the subsidy flows directly to the
home buyer without being partly diverted to financial
middlemen or bondholders. A State cannot issue an
aggregate annual amount of MCCs greater than 25 per
cent of its annual ceiling for qualified mortgage bonds.
Because of the relationship between MCCs and quali
fied mortgage bonds, their estimates are presented as
one line item in the tables.
to the Federal Government on deferred taxes attrib
utable to their total installment obligations in excess
of $5 million. Only properties with sales prices exceed
ing $150,000 are includable in the total. The payment
of a market rate of interest eliminates the benefit of
the tax deferral. The tax exemption for nondealers with
total installment obligations of less than $5 million is,
therefore, a tax expenditure.
Rental housing bonds.—State and local government
issues of IDBs are restricted to multifamily rental hous
ing projects in which 20 percent (15 percent in targeted
areas) of the units are reserved for families whose in
come does not exceed 50 percent of the area’s median
income; or 40 percent for families with incomes of no
more than 60 percent of the area median income. Other
tax-exempt bonds for multifamily rental projects are
generally issued with the requirement that all tenants
must be low or moderate income families. Rental hous
ing bonds are subject to the volume cap discussed in
the mortgage housing bond section above.
Passive loss real estate exemption.—The Tax Re
form Act of 1986 disallowed the offset of passive losses
against income from other sources. Losses up to $25,000
attributable to certain rental real estate activity, how
ever, are exempted from this rule.
Interest and taxes on owner-occupied homes.—
Owner-ocpupants of homes may deduct mortgage inter
est and property taxes on their primary and secondary
residences as itemized nonbusiness deductions. The
mortgage interest deduction is limited to interest on
debt no greater than the owner’s basis in the residence
and, for debt incurred after October 13, 1987, it is
limited to no more than $1 million. Interest on up to
$100,000 of other debt secured by a lien on a principal
or second residence is also deductible, irrespective of
the purpose of borrowing, provided the debt does not
exceed the fair market value of the residence. Mortgage
interest deductions on personal residences are tax ex
penditures because the taxpayers are not required to
report the value of owner-occupied housing services as
gross income.
Real property installment sales.—Dealers in real
and personal property, i.e., sellers that regularly hold
property for sale or resale, cannot defer taxable income
from installment sales until the receipt of the loan re
payment. Nondealers, defined as sellers of real property
used in their business, are required to pay interest
Capital gains on home sales.—When a primary
residence is sold, the homeowner can defer paying a
capital gains tax on the proceeds by purchasing or con
structing a home of value at least equal to that of
the prior home (net of sales and qualified fix-up ex
penses) within two years. This deferral is a tax expendi
ture.
Capital gains on sales by owners aged 55 or
older.—A taxpayer who is 55 years of age or older
at the time of the sale of his residence may elect to
exclude from tax up to $125,000 of the gain from its
sale. This is a once-in-a-lifetime election. In effect, this
provision converts some prior deferrals of tax into for
giveness of tax.
Accelerated depreciation of real property, ma
chinery and equipment.—As previously noted, the tax
depreciation allowance provisions are part of the ref
erence law rules, and thus do not cause tax expendi
tures under the reference method. Under the normal
tax method, however, a 40-year tax life for depreciable
real property is the norm, so the statutory depreciation
period in effect from 1987 to 1993 for nonresidential
properties of 31.5 years gives rise to tax expenditures.
OBRA 93 lengthened the statutory depreciation period
for nonresidential property to 39 years for property
placed in service after February 25, 1993. The statutory
depreciation period for residential property is 27.5
years. Statutory depreciation of machinery and equip
ment also is somewhat accelerated relative to the nor
mal tax baseline. In addition, tax expenditures arise
from pre-1987 tax allowances for real and personal
property.
Cancellation of indebtedness.—Individuals are not
required to report the cancellation of certain indebted
ness as current income. However, if they do not, it
would be included as an adjustment in the basis of
the underlying property.
Imputed interest rules.—Under reference law rules
commonly referred to as original issue discount (OID),
both the holder and seller of a financial contract are
generally required to report interest earned in the pe
riod it accrues, not when the contract payments are
70
ANALYTICAL PERSPECTIVES
made. Moreover, the amount of interest accruable is
determined by the actual price paid for the contract,
not by the stated or nominal principal and interest
stipulated in the contract.5
Exceptions to the general rules for accounting for
interest expense or income include the following: (a)
permission for the mortgagor of his personal residence
to treat the discount from the nominal principal of his
mortgage loan, commonly called “points,” as prepaid
interest which is deductible in the year paid, not the
year accrued; and (b) sellers of farms and small busi
nesses worth less than $1 million, in exchange for the
purchaser’s debt obligation, are exempted from the OID
rules. This is $750,000 more than the $250,000 exemp
tion that the reference tax law generally allows for
such transactions.
business, certain start-up expenses, such as the costs
of investigating opportunities and legal services, are
normally incurred. The taxpayer may elect to amortize
these outlays over 60 months although they are similar
to other payments he makes for nondepreciable intangi
ble assets that are not recoverable until the business
is sold. Under the normal tax method this gives rise
to a tax expenditure, while under the reference method
it does not.
Carryover basis of capital gains on gifts.—When
a gift is made, the transferred property carries to the
donee the donor’s basis—the cost that was incurred
when the property was first acquired. The carryover
of the donor’s basis allows a continued deferral of unre
alized capital gains.
Small issue industrial development bonds.—The
interest on small issue industrial development bonds
(IDBs) issued by State and local governments to finance
private business property is excluded from income sub
ject to tax. Depreciable property financed with small
issue IDBs must be depreciated, however, using the
straight-line method. The tax exemption of small issue
bonds expired in 1986, except for small issue IDBs ex
clusively issued to finance manufacturing facilities for
which the tax exemption is permanent. The annual vol
ume of small issue IDBs is subject to the unified vol
ume cap discussed in the mortgage housing bond sec
tion above.
Graduated corporation income tax rate sched
ule.—The schedule is graduated, with rates of 15 per
cent on the first $50,000 of taxable income, 25 percent
on the next $25,000, 34 percent on the next $9,925
million, and a rate of 35 percent on income over $10
million. As compared with a flat 35 percent tax rate,
the lower rates provide a $111,000 reduction in tax
Capital gains (other than agriculture, timber, liability for corporations with taxable incomes of $10
iron ore and coal).—While the top statutory rate on million. This benefit is recaptured in the cases of cor
ordinary income is 39.6 percent, the rates on capital porations with taxable incomes exceeding $100,000.
gains are limited to 28 percent. This treatment is con This is accomplished by (1) a 5 percent additional tax
sidered a tax expenditure under the normal tax method on corporate incomes in excess of $100,000, but less
but not under the reference law method.
than $335,000 and (2) a 3 percent additional tax on
income over $15 million but less than $18.33 million.
Step-up in b€isis of capital gains at death—Cap At this point the $111,000 is fully recaptured. Since
ital gains on assets held at the owner’s death are not this rate schedule is part of the reference tax law, it
subject to capital gains taxes. The cost basis of the does not give rise to a tax expenditure under the ref
appreciated assets is adjusted upward to the market erence method. A flat corporation income tax rate is
value at the owner’s date of death. The step-up in the taken as the baseline under the normal tax method;
heir’s cost basis means that, in effect, the capital gain therefore the lower rates do yield a tax expenditure
is forgiven.
under this concept.
Ordinary income treatment of losses from sale
of small business corporate stock shares.—Up to
$100,000 in losses from the sale of such stock may
be treated as ordinary losses, and therefore not be sub
ject to the $3,000 annual capital loss write-off limit
if the corporation’s capitalization is less than $1 million.
Expensing of certain small investments.—Qualify
ing investments in tangible property up to $17,500
($10,000 prior to 1993) can be expensed rather than
depreciated over time. To the extent that qualifying
investment during the year exceeds $200,000, the
amount eligible for expensing is decreased. The amount
expensed is completely phased out when qualifying in
vestments exceed $217,500.
Deferral of gains from sale of broadcasting fa
cility to minority owned business.—The voluntary
sale of assets generally requires the seller to pay tax
on the gain that has accrued over the period of owner
ship. However, in the case of an involuntary sale, as
when an owner’s property must be sold in a condemna
tion preceding, or to implement a change in a govern
ment’s regulatory policy, the owner is permitted to
Business start-up costs.—When an individual or defer payment of tax, provided the proceeds are rein
corporation acquires or otherwise enters into a new vested in similar property within a specified period.
In 1979, the Federal Communications Commission in
5 Thus, when a borrower on December 31, 1993, issues a promise to pay $1,000 plus stituted a policy of encouraging minority group owner
interest at 10 percent on December 31, 1994, for a total repayment of $1,100, and accepts
ship of broadcast licenses. Since that time, the tax laws
$900 from a lender in exchange for the contract, the rules require that both parties: (a)
recognize that $900 is the amount lent, so that the effective loan interest rate is not
have been interpreted to permit voluntary sellers of
the nominal 10 percent rate but is 22.2 percent; and (b) both report $200 as interest
licensed broadcasting facilities to defer payment of cap
paid or received in 1994, as the case may be.
71
6. TAX EXPENDITURES
ital gains tax when the buyer has been certified as
a “minority business,” in effect treating the sale as
“involuntary.”
Treatrtient of Alaskan Native Corporations
losses.—Tax law restricts the ability of profitable cor
porations to reduce their tax liabilities by merging or
buying corporations with accumulated net operating
losses (NOLs) and as yet unrefunded claims to invest
ment credits. Alaska Native Corporations have a lim
ited exemption (fifteen years after the NOL or credit
claim was first experienced) from these restrictions that
includes NOLs and credits claimable prior to April 26,
1988.
T r a n s p o r t a t io n
Shipping companies that are U.S. flag car
riers.—Certain companies that operate U.S. flag ves
sels receive a deferral of income taxes on that portion
of their income used for shipping purposes, primarily
construction, modernization and major repairs to ships,
and repayment of loans to finance these qualified in
vestments. Once indefinite, the deferral has been lim
ited to 25 years since January 1, 1987.
Exclusion of reimbursed employee parking ex
penses.—Parking at or near an employer’s business
premises that is paid for by the employer is excludable
from the income of the employee as a working condition
fringe benefit. The maximum amount of the parking
exclusion is $155 month, indexed in $5 increments. The
tax expenditure estimate does not include parking at
facilities owned by the employer.
buildings that are used for business or productive ac
tivities and that were erected before 1936 for other
than residential purposes. A full reduction by the
amount of the credit is required in the taxpayer’s recov
erable basis.
Tax-exempt bonds for airports and similar fa
cilities.—Government-owned airports, docks and
wharves, as well as high-speed rail facilities that need
not be government-owned, may continue to be financed
with tax-exempt bond issues. These bonds are not cov
ered by a volume cap.
Exemption of certain mutuals9and cooperatives9
income.—The incomes of mutual and cooperative tele
phone and electric companies are exempted from tax
if at least 85 percent of their revenues are derived
from patron service charges.
Empowerment zones—Qualifying businesses in des
ignated economically depressed areas can receive tax
benefits such as an employer wage credit, increasing
expensing of investment in equipment, tax-exempt fi
nancing, and accelerated depreciation. In addition, a
tax credit for contributions to certain community devel
opment corporations can be available.
E d u c a t io n , T r a in in g , E m p l o y m e n t , a n d S o c ia l
S e r v ic e s
Scholarship and fellowship income.—Scholar
ships and fellowships are not excluded from taxable
income to the extent they exceed tuition and courserelated expenses of the grantee. From an economic
point of view, scholarships and fellowships are either
Exclusion of employer-provided transit passes.— gifts not conditioned on the performance of services,
Transit passes, tokens, and fare cards provided by an or they are rebates of educational costs. Thus, under
employer to defray an employee’s commuting costs are the reference law method, the exclusion is not a tax
excludable from the employee’s income as a de minimis expenditure because this method does not include either
fringe benefit, if the total value of the benefit does gifts or price reductions in a taxpayer’s gross income.
not exceed $60 per month, indexed in $5 increments. Under the normal tax method, however, the exclusion
is considered a tax expenditure because under this
C o m m u n it y a n d R e g io n a l D e v e l o p m e n t
method gift-like transfers of government funds—and
many scholarships are derived directly or indirectly
Low-income housing investment.—Through 1989, from government funding—are included in gross in
a tax credit for investment in new, substantially reha come.
bilitated, and certain unrehabilitated low-income hous
ing was structured to have a present value of 70 per
Tax-exempt bonds for educational purposes.—In
cent of construction or rehabilitation costs incurred and terest on State and local government debt issued to
was allowed over 10 years. For Federally subsidized finance student loans or the construction of facilities
projects and those involving unrehabilitated existing used by private nonprofit educational institutions is ex
low income housing, the credit was structured to have cluded from income subject to tax. The aggregate vol
a present value of 30 percent. Beginning on January ume of such private activity bonds that each State may
1, 1990, the credit was extended at a present value issue during any calendar year is limited.
of 70 percent, including projects financed with other
U.S. savings bonds for education.—Interest on
Federal subsidies, but only if substantial rehabilitation
was done. Notwithstanding the capital grant character U.S. savings bonds, issued after December 31, 1989,
of this subsidy, the investor’s recoverable basis is not may be excluded from tax if the bonds, plus accrued
interest, are transferred to an educational institution
reduced by the substantial credit allowed.
as payment for educational expenses. The exclusion
Rehabilitation of structures.—A 10 percent invest from tax is phased out for joint returns with adjusted
ment tax credit is available for the rehabilitation of gross incomes of $61,850 to $91,850 and $41,200 to
72
$56,200 for single and head of household returns in
1994.
Dependent students age 19 or older.—Taxpayers
can claim personal exemptions for dependent children
age 19 or over who receive parental support payments
of $1,000 or more per year, are full-time students, and
do not claim a personal exemption on their own tax
returns. This preferential arrangement usually gen
erates tax savings because the students' marginal tax
rates are more often than not lower than their parents'
marginal tax rates.
Charitable contributions.—Contributions to chari
table, religious, and certain other nonprofit organiza
tions are allowed as an itemized deduction for individ
uals, generally up to 50 percent of adjusted gross in
come. Taxpayers who donate capital assets to charitable
or educational organizations can deduct the assets' cur
rent value without the taxation of any appreciation in
value. Corporations can also deduct charitable contribu
tions up to 10 percent of their pre-tax income. Tax
expenditures resulting from the deductibility of con
tributions are shown separately for educational and
other institutions. Contributions to health institutions
are reported under the health function.
Employer provided benefits.—Many employers pro
vide employee benefits that are not counted in employee
income. The employers' costs for these benefits are de
ductible business expenses. The exclusion from an em
ployee's income of the value of educational assistance,
child care, meals and lodging, as well as ministers'
housing allowances and the rental value of parsonages
are tax expenditures. The exclusion for educational as
sistance and legal services expires on December 31,
1994. Health and other insurance benefits are reported
under the health and income security functions. Certain
parking and transit benefits are reported under the
transportation function.
Targeted jobs credit.—Employers may claim a tax
credit for qualified wages paid to individuals who begin
work before January 1, 1995, and who are certified
as members of various targeted groups. The amount
of the credit that may be claimed is 40 percent of the
first $3,000 paid during the first year of employment.
The 40 percent credit also applies to the summer em
ployment wages paid 16 and 17 year old youths who
are members of low income families. Employers must
reduce their deduction for wages paid by the amount
of the credit claimed.
Child and dependent care expenses.—A tax credit
may be claimed by married couples for child and de
pendent care expenses incurred when one spouse works
full time and the other works at least part time or
goes to school. The credit may also be claimed by di
vorced or separated parents who have custody of chil
dren, and by single parents. Expenditures up to a maxi
mum $2,400 for one dependent and $4,800 for two or
ANALYTICAL PERSPECTIVES
more dependents are eligible for the credit. The credit
is equal to 30 percent of qualified expenditures for tax
payers with incomes of $10,000 or less. The credit is
reduced to a minimum of 20 percent by one percentage
point for each $2,000 of income between $10,000 and
$28,000.
Disabled access expenditures.— A credit is pro
vided of 50 percent of eligible disabled access expendi
tures in excess of $250. The credit is limited to $5,000.
Costs of removing architectural barriers to the
handicapped—The investment cost of making any
business accessible to persons suffering physical or
mental disabilities may be deducted, rather than cap
italized as part of the taxpayer's basis in such property
and recovered by subsequent depreciation allowances,
as is generally required.
Foster care payments.—Foster parents provide a
home and care for children who are wards of the State,
under contract with the State. Compensation received
for this service is explicitly excluded from the gross
incomes of foster parents, making the expenses they
incur nondeductible. This activity is, in effect, tax-ex
empt.
H ealth
Employer paid medical insurance and ex
penses.—Employee compensation, in the form of pay
ments by employers for health insurance premiums and
other medical expenses, is deducted as a business ex
pense by employers, but it is not included in employee
gross income.
Child health insurance•
—The earned income tax
credit provided for a credit for certain child health in
surance expenses. This credit was repealed after De
cember 31, 1993.
Medical care expenses.—Personal expenditures for
medical care (including the costs of prescription drugs)
exceeding 7.5 percent of the taxpayer's adjusted gross
income are deductible.
Tax-exempt bonds for hospital construction.—In
terest earned on State and local government debt is
sued to finance hospital construction is excluded from
income subject to tax.
Charitable contributions to health institu
tions.—Contributions to nonprofit health institutions
are allowed as a deduction for individuals and corpora
tions. Tax expenditures resulting from the deductibility
of contributions to other charitable institutions are list
ed under the education, training, employment, and so
cial services function.
Orphan drugs.—To encourage the development of
drugs for the treatment of rare diseases or physical
conditions, a tax credit is granted equal to 50 percent
6. TAX EXPENDITURES
of the costs for clinical testing that has to be completed
before manufacture and distribution are approved by
the Food and Drug Administration. Because the drug
firm is not required to reduce its deduction for testing
expenses (an R&D expenditure) by the amount of this
credit, the private cost of clinically testing orphan drugs
is reduced substantially. This tax expenditure expires
December 31, 1994.
Blue Cross and Blue Shield—Although these orga
nizations are not qualified as exempt, they are provided
exceptions from otherwise applicable insurance com
pany income tax accounting rules that effectively elimi
nate their tax liabilities.
I n c o m e S e c u r it y
Railroad retirement benefits.—These benefits are
not generally subject to the income tax unless the re
cipient’s gross income reaches a certain threshold dis
cussed more fully under the social security function.
Workmen's compensation benefits.—Workmen’s
compensation provides payments to disabled workers.
These benefits, although income to the recipients, are
a tax preference because they are not subject to the
income tax.
Public assistance benefits.—The exclusion from
taxable income of public assistance benefits received
by individuals is listed as a tax expenditure under the
normal tax method because, under this method, cash
transfers from government are included in gross in
come. In contrast, gifts not conditioned on the perform
ance of services, including transfers from government,
are not taxable under the reference law. Therefore,
under the reference tax method, the tax exclusion for
public assistance benefits is not shown as a tax expend
iture.
Special benefits for disabled coal miners.—Dis
ability payments to former coal miners out of the Black
Lung Trust Fund, although income to the recipient,
are not subject to the income tax.
Military disability pensions.—Most of the military
pension income received by current disabled retired vet
erans is excluded from their income subject to tax.
Pension contributions and earnings.—Certain
employer contributions to pension plans, along with in
dividual contributions to individual retirement accounts
(IRAs) and amounts set aside by the self-employed, are
excluded from adjusted gross income in the year of
contribution. The investment income earned by pension
funds and other qualifying retirement plans is not tax
able when earned, and this deferral is, therefore, also
a tax expenditure.
Limited amounts (about $9,260 in 1994) can be ex
cluded from an employee’s adjusted gross income under
a qualified cash or deferred arrangement with the em
ployer (401(k) plan). An employee’s own contribution
73
of no more than $9,500 or the 401(k) limitation (which
ever is greater) may be excluded annually from an em
ployee’s adjusted gross income when placed in a taxsheltered annuity (403(b) plan).
Employees may deduct annual contributions to an
IRA of $2,000 (or 100 percent of compensation, if less),
or $2,250 on a joint return with only one spouse earn
ing income, if: (a) neither the individual or spouse is
an active participant in an employer-provided retire
ment plan; or (b) their adjusted gross income falls below
$40,000 ($25,000 for a single taxpayer). The allowable
IRA deduction is phased out between $40,000 and
$50,000 for a joint return and $25,000 and $35,000
for a single return. Beyond these income limits, non
deductible contributions to IRAs are available to tax
payers who are active participants in employer-provided
retirement plans. Self-employed persons can make de
ductible contributions to their own retirement (Keogh)
plans equal to 25 percent of their income, up to a maxi
mum of $30,000 per year.
Employer provided insurance benefits.—Many
employers cover part or all the cost of premiums or
payments for: (a) employees’ life insurance benefits; (b)
accident and disability benefits; (c) death benefits; and
(d) supplementary unemployment benefits. The
amounts are deductible by the employers and are ex
cluded as well from employees’ gross incomes for tax
purposes.
Employer Stock Ownership Plan (ESOP) provi
sions.—A special type of employee benefit plan, orga
nized as a trust, is tax-exempt. Employer-paid contribu
tions (the value of stock issued to the ESOP) are de
ductible by the employer as part of employee compensa
tion costs. They are not included in the employees’ gross
income for tax purposes, however, until they are paid
out as benefits. The following special income tax provi
sions for ESOPs are intended to increase ownership
of corporations by their employees: (1) annual employer
contributions are subject to less restrictive limitations
(percentages of employees’ cash compensation); (2)
ESOPs may borrow to purchase employer stock, guar
anteed by their agreement with the employer that the
debt will be serviced by his payment (deductible by
him) of a portion of wages (excludable by the employ
ees) to service the loan; (3) ESOPs’ lenders may exclude
half the interest from their gross income; (4) employees
who sell appreciated company stock to the ESOP may
defer any taxes due until they withdraw benefits; and
(5) dividends paid to ESOP-held stock are deductible
by the employer.
Support of the aged and the blind.—Taxpayers
who are blind or 65 years of age or older may take
an additional $950 standard deduction if single, or $750
if married. In addition, individuals who are 65 years
of age or older, or who are permanently disabled, can
take a tax credit equal to 15 percent of the sum of
their earned and retirement income. Qualified income
is limited to no more than $2,500 for single individuals
74
or married couples filing a joint return where only one
spouse is 65 years of age or older, and up to $3,750
for joint returns where both spouses are 65 years of
age or older. These limits are reduced by one-half of
the taxpayer’s adjusted gross income over $7,500 for
single individuals and $10,000 for married couples fil
ing a joint return.
Casualty losses.—Neither the purchase of property
nor insurance premiums to protect its value are deduct
ible as costs of earning income; therefore, reimburse
ment for insured loss of such property is not reportable
as a part of gross income. However, a special provision
permits relief for taxpayers suffering an uninsured loss.
They may deduct casualty and theft losses of more than
$100 each, but only to the extent that total losses dur
ing the year exceed 10 percent of adjusted gross income.
ANALYTICAL PERSPECTIVES
income tax base, however, if the recipient’s provisional
income exceeds certain base amounts. Provisional in
come is equal to adjusted gross income plus foreign
or U.S. possession income and tax-exempt interest, and
one half of social security and tier 1 railroad retirement
benefits. The tax expenditure is limited to the portion
of the benefits received by taxpayers who are below
the base amounts at which 85 percent of the benefits
are taxable.
Social Security benefits for the disabled, dependents and survivors.—Benefit payments from the So
cial Security Trust Fund, for disability and for depend
ents and survivors, are excluded from the beneficiaries’
gross incomes, and thus give rise to tax expenditures.
V e t e r a n s B e n e f it s a n d S e r v ic e s
Veterans benefits.—All compensation due to death
Earned income credit.—This credit may be claimed
or disability and pensions paid by the Veterans Admin
by low income workers. For a family with one qualify
ing child, the credit is 26.3 percent of the first $7,750 istration are excluded from taxable income.
of earned income in 1994. The credit is 30.0 percent
Tax-exempt mortgage bonds for veterans.—Inter
of the first $8,425 of income for a family with two
or more qualifying children. When the taxpayer’s in est earned on general obligation bonds issued by State
come exceeds $11,000, the credit is phased out at the and local governments to finance housing for veterans
rate of 15.98 percent (17.68 percent if two or more is excluded from taxable income. The issuance of such
qualifying children are present). It is completely phased bonds is limited, however, to five pre-existing State pro
out at $23,760 of adjusted gross income ($25,300 if two grams and to amounts based upon previous volume lev
els for the period January 1, 1979 to June 22, 1984.
or more qualifying children are present).
Beginning in 1994, the credit may also be claimed Furthermore, future issues are limited to veterans who
by workers who do not have children. Qualifying work served on active duty before 1977.
ers must be at least age 25 and may not be claimed
General G overnm ent
as a dependent on another taxpayer’s return. The credit
is not available to workers age 65 or older. In 1994,
Public purpose State and local debt.—Interest on
the credit is 7.65 percent of the first $4,000 of earned State and local government debt, issued to finance gov
income. When the taxpayer’s income exceeds $5,000, ernment activities, is excluded from Federal taxation.
the credit is phased out at the rate of 7.65 percent. State and local governments, therefore, can sell debt
It is completely phased out at $9,000 of adjusted gross obligations at a lower interest cost than would be pos
income.
sible if such interest were subject to tax. Only the ex
For workers with or without children, the income cluded interest on bonds for public purposes, such as
level at which the credit’s phase-outs begin and the schools, roads, and sewers, is included here.
maximum amounts of income on which the credit can
be taken are adjusted for inflation. Earned income tax
Nonbusiness State and local taxes excluding
credits in excess of tax liabilities are refundable to indi home-owner property taxes.—The deductibility of
viduals, and as such are paid by the Federal Govern nonbusiness State and local taxes gives indirect assist
ment. This portion of the credit is included in outlays, ance to these governments by reducing the costs of
while the amount that offsets tax liabilities is shown the services they provide and, thus, the burden on their
as a tax expenditure.
taxpayers. Although general sales taxes may no longer
be deducted, State and local income taxes still may
S o c ia l S e c u r it y
be deducted.
Old Age and Survivors Insurance (OASI) benefits for retired workers.—Social security benefits that
exceed the beneficiary’s contributions out of taxed in
come are deferred employee compensation and the de
ferral of tax on that compensation is a tax expenditure.
These additional retirement benefits are paid for partly
by employers’ contributions that were not included in
employees’ taxable compensation. Portions (reaching as
much as 85 percent) of recipients’ social security and
tier 1 railroad retirement benefits are included in the
Business income earned in U.S. possessions.—
Under certain conditions, U.S. corporations receiving
income from an active trade or business, or from invest
ments located in a U.S. possession, can claim a special
credit against U.S. tax otherwise due.
In t e r e s t
U.S. savings bonds.—The interest on U.S. savings
bonds is not taxable until the bonds are redeemed,
75
6. TAX EXPENDITURES
thereby deferring tax liability. The deferral is equiva
lent to an interest-free loan and, therefore, it is a tax
expenditure.
TAX EXPENDITURES IN THE UNIFIED TRANSFER TAX
Exceptions to the general terms of the Federal unified
transfer tax favor particular transferees or dispositions
of transferors, similar to Federal direct expenditure or
loan programs. The transfer tax provisions identified
as tax expenditures satisfy the reference law criteria
for inclusion in the tax expenditure budget that were
described above. There is no generally accepted normal
tax baseline for transfer taxes.
Unified Transfer Tax Reference Rules
The reference tax rules for the unified transfer tax
from which departures represent tax expenditures in
clude:
• Definition of the taxpaying unit. The payment of
the tax is the liability of the transferor whether
the transfer of cash or property was made by gift
or bequest.
• Definition of the tax base. The base for the tax
is the transferor’s cumulative, taxable lifetime
gifts made plus the net estate at death. Gifts in
the tax base are all annual transfers in excess
of $10,000 to any donee except the donor’s spouse.
Excluded are, however, payments on behalf of
family members’ educational and medical ex
penses, as well as the cost of ceremonial gather
ings and celebrations that are not in honor of
the donor.
• Property valuation. In general, property is valued
at its fair market value at the time it is trans
ferred. This is not necessarily the case in the valu
ation of property for transfer tax purposes. Execu
tors of estates are provided the option to value
assets at the time of the testator’s death or up
to six months later.
• Tax rate schedule. A single graduated tax rate
schedule applies to all taxable transfers. This is
reflected in the name of the “unified transfer tax”
that has replaced the former separate gift and
estate taxes. The tax rates vary from 18 percent
on the first $10,000 of aggregate taxable transfers,
to 55 percent on amounts exceeding $3 million.
A $192,800 lifetime credit is provided against the
tax in determining the final amount of transfer
taxes that are due and payable. This allows each
taxpayer to make a $600,000 tax-free transfer of
assets that otherwise would be liable to the uni
fied transfer tax.6
• Time when tax is due and payable. Donors are
required to pay the tax annually as gifts are
made. The generation-skipping transfer tax is pay
able by the donees whenever they accede to the
6 An additional tax, at a flat rate of 55 percent, is imposed on lifetime, generationskipping transfers in excess of $1 million. It is considered a generation-skipping transfer
whenever the transferee is at least two generations younger than the transferor, as it
would be in the case of transfers to grandchildren or great-grandchildren. The liability
of this tax is on the recipients of the transfer.
gift. The net estate tax liability is due and payable
within nine months after the decedent’s death.
The Internal Revenue Service may grant an exten
sion of up to 10 years for a reasonable cause.
Interest is charged on the unpaid tax liability at
a rate equal to the cost of Federal short-term bor
rowing, plus three percentage points.
Tax Expenditures by Function
The 1993-99 estimates of tax expenditures in the
Federal unified transfer tax are displayed by functional
category in table 6-5. Outlay equivalent estimates are
similar to revenue loss estimates for transfer tax ex
penditures and, therefore, are not shown separately.
A description of the provisions follows.
N a t u r a l R e s o u r c e s a n d E n v ir o n m e n t
Donations of conservation easements.—Bequests
for conservation are excluded from taxable estates. A
conservation bequest is the value of property and ease
ments (in perpetuity) to such property the use of which
is restricted to any one or more of the following: the
public for outdoor recreation; protection of the natural
habitats of fish, wildlife, plants, etc.; scenic enjoyment
of the public; and preservation of historic land areas
and structures. Similar conservation gifts are excluded
from the gift tax base and are also deductible from
the donor’s otherwise taxable income in the year of
the gift.
A g r ic u l t u r e
Special use valuation of farms.—Farmland owned
and operated by a decedent anchor a member of the
family may be valued for estate tax purposes on the
basis of its “continued use” as a farm if: the farmland
is at least 25 percent of the decedent’s gross estate;
the entire value of all farm property is at least 50
percent of the gross estate; and family heirs to the
farm agree to continue to operate the property as a
farm for at least 10 years. Since continued use valu
ation of farmland is frequently substantially less than
the fair market value, the resulting reduction in tax
liability serves as a subsidy to the continued operation
of family farms.
Tax deferral of closely held farms.—Decedents’ es
tates may use a preferential, extended installment pay
ment period of five to 15 years to discharge estate tax
liabilities if the value of the farm properties exceeds
35 percent of the net estates. The interest charged is
only 4 percent for the first five years, rather than the
standard Federal short-term borrowing rate plus three
percentage points, which applies during the last 10
years of the repayment period.
76
ANALYTICAL PERSPECTIVES
C o m m e r c e a n d H o u s in g C r e d it
Special use valuation of closely held busi
nesses.—The two estate tax incentives to family farm
ing are also available to the estates of owners of non
farm family businesses. If the same three conditions
previously described are met, the real property in their
estates is eligible for continued use valuation.
Tax deferral of closely held businesses.—Nonfarm
family businesses that satisfy the net estate require
ments qualify for preferential 15 year deferred estate
tax payment. Also, the redemption of stock, required
to pay funeral and administrative expenses and estate
and gift taxes, may be characterized as a sale of stock.
This applies in those cases where the family business
is incorporated and only the closely held corporation
stock, rather than the business assets, appear in the
decedent’s estate. This subjects to tax only the apprecia
tion in the value of the stock whereas, under reference
tax law rules, all of the proceeds generally would be
taxed as a dividend. To be eligible for this special provi
sion, the value of stock in closely held corporations
must exceed 35 percent of the decedent’s gross estate,
less debt and funeral expenses.
TABLE 6-5.
E d u c a t io n , T r a in in g , E m p l o y m e n t , a n d S o c ia l
S e r v ic e s
Bequests to tax-exempt organizations.—These be
quests are deductible from decedent’s otherwise taxable
lifetime transfers.
H ealth
Bequests to health providers.—Such bequests, that
are exempt from the income tax, are deductible from
otherwise taxable lifetime transfers of decedents.
General G overnm ent
State and local death taxes.—A credit is allowed
for state death taxes against any Federal estate tax
that otherwise would be due. The amount of the state
death tax credit is determined by a rate schedule that
reaches a limit of 16 percent of the taxable estate in
excess of $60,000. This provision is intended to restrain
states from competing for wealthy individuals’ official
domicile.
REVENUE LOSS ESTIMATES FOR TAX EXPENDITURES IN THE FEDERAL UNIFIED TRANSFER TAX
(In m
illions of dollars)
Fecal Years
Description
1993
1994
1995
1996
1997
1998
1999
Natural Resources and Environment:
Deductions for donations of conservation easements ................................
Agriculture:
Special use valuation of farm real property................................................
Tax deferral of closely held farms...............................................................
*
*
*
*
*
*
*
70
55
70
55
75
60
80
65
85
70
90
75
95
80
Commerce:
Special use valuation of real property used in closely held businesses....
Tax deferral of closely held business..........................................................
20
10
20
10
20
10
20
10
25
10
25
15
25
15
Education, training, employment, and social services:
Deduction for charitable contributions (education)......................................
Deduction for charitable contributions (other than education and health) ...
500
1,480
505
1,490
550
1,620
590
1,735
630
1,850
670
1,965
715
2,095
Health:
Deduction for charitable contributions (health)............................................
455
460
500
535
570
605
645
General government:
Credit for State death taxes........................................................................
2,775
2,795
3,035
3,255
3,475
3,695
3,935
Note: All estimates have been rounded to the nearest $5 million.
*$2.5 million or less.
77
6. TAX EXPENDITURES
TABLE 6 -6.
MAJOR TAX EXPENDITURES IN THE INCOME TAX, RANKED BY TOTAL 1995 REVENUE LOSS
(In millions of dollars)
Total Revenue Loss
Exclusion of employer contributions for medical insurance premiums and medical care ....
Net exclusion of employer pension contributions and earnings..........................................
Deductibility of mortgage interest on owner-occupied homes.............................................
Step-up basis of capital gains at death ..............................................................................
Accelerated depreciation (normal tax method) ...................................................................
Deductibility of nonbusiness State and local taxes other than on owner-occupied homes .
Deductibility of charitable contributions (all types)..............................................................
Exclusion of OASI benefits for retired workers...................................................................
Deductibility of State and local property tax on owner-occupied homes............................
Deferral of capital gains on home sales.............................................................................
Exclusion of interest on public purpose State and local debt.............................................
Exclusion of interest on life insurance savings...................................................................
Exclusion of interest on State and local debt for various non-public purposes.................
Preferential treatment of capital gains (normal tax method) ..............................................
Exception from passive loss rules for $25,000 of rental loss.............................................
Net exclusion of Individual Retirement Account contributions and earnings......................
Earned income credit1 ........................................................................................................
Exclusion of capital gains on home sales for persons age 55 and over...........................
Exclusion of workmen’s compensation benefits..................................................................
Graduated corporation income tax rate (normal tax method).............................................
Net exclusion of Keogh plan contributions and earnings.....................................................
Exclusion of social security benefits for dependents and survivors ...................................
Deductibility of medical expenses.......................................................................................
Exclusion of employer premiums on group term life insurance..........................................
Credit for child and dependent care expenses...................................................................
Tax credit for corporations receiving income from doing business in U.S. possessions....
Expensing of research and development expenditures (normal tax method) ....................
Credit for low-income housing investments.........................................................................
Exclusion of benefits and allowances to armed forces personnel......................................
Exclusion of reimbursed employee parking expenses........................................................
Exclusion of veterans disability compensation....................................................................
Exclusion of social security disability insurance benefits ...................................................
Special ESOP rules (other than investment credit)............................................................
Deferral of income from controlled foreign corporations (normal tax method)...................
Expensing of certain small investments (normal tax method)............................................
Additional deduction for the elderly....................................................................................
Exclusion of income of foreign sales corporations.............................................................
Excess of percentage over cost depletion, fuel and nonfuel minerals..............................
Inventory property sales source rules exception ...............................................................
Credit for increasing research activities .............................................................................
Deferral of interest on savings bonds................................................................................
Alternative fuel production credit ........................................................................................
Deferral of income from post 1987 installment sales........................................................
Exclusion of income earned abroad by United States citizens..........................................
Exclusion of scholarship and fellowship income (normal tax method) ..............................
Exclusion of employer provided child care ........................................................................
Exemption of RIC expenses from the 2% floor for miscellaneous itemized deductions ....
Exclusion of public assistance benefits (normal tax method) ............................................
Expensing of multiperiod timber growing costs .................................................................
Exclusion of employee meals and lodging (other than military) ........................................
Parental personal exemption for students age 19 or over.................................................
Exclusion of railroad retirement system benefits...............................................................
Targeted jobs credit............................................................................................................
Exemption of credit union income......................................................................................
Empowerment zones..........................................................................................................
Deferral of gains from sale of broadcasting facilities to minority owned business............
Exclusion of parsonage allowances....................................................................................
Suspension of the allocation of research and experimentation expenditures ...................
Deductibility of casualty losses..........................................................................................
Expensing of exploration and development costs, fuel and nonfuel minerals ...................
Amortization of start-up costs (normal tax method)............................................................
Credit for disabled access expenditures............................................................................
Permanent exceptions from imputed interest rules ...........................................................
Exclusion from income of conservation subsidies provided by public utilities ..................
Capital gains treatment of certain agricultural income ......................................................
Exclusion of employer premiums on accident and disability insurance.............................
Small life insurance company deduction............................................................................
Carryover basis of capital gains on gifts............................................................................
Exclusion of military disability pensions .............................................................................
56,265
55,540
54,800
28,305
27,495
25,640
19,330
16,525
14,655
14,620
12,350
8.730
7,515
6.920
5,775
5,290
5,100
4,960
4,455
3,890
3,875
3.730
3.560
2,880
2,820
2,630
2,390
2,265
2,030
1,930
1.920
1,905
1,760
1,700
1.560
1,555
1,400
1,330
1,300
1,270
1,250
970
935
895
875
725
690
585
575
550
535
400
395
380
330
290
290
270
230
20
1
20
0
160
150
145
140
140
135
130
130
78
ANALYTICAL PERSPECTIVES
TA LE 6-6. M JO TAX E P N IT R S INT E IN O E TAX, R N E BY TO L 1995 R V N E
B
A R
XE D UE
H CM
A KD
TA
EEU
LOSS—
Continued
(In millions of dollars)
Total Revenue Loss
Special Blue Cross/Blue Shield deduction.................................................
Tax incentives for preservation of historic structures................................
Cancellation of indebtedness.....................................................................
Tax exemption of certain insurance companies ........................................
Exclusion of special benefits for disabled coal miners..............................
Interest allocation rules exception for certain financial operations.............
Expensing of certain multiperiod production costs ....................................
Exclusion of employer provided educational assistance...........................
Investment credit for rehabilitation of structures (other than historic)........
Exclusion of veterans pensions.................................................................
Expensing of certain agricultural capital outlays........................................
Exclusion of Gl bill benefits.......................................................................
New technology credit................................................................................
Tax credit for the elderly and disabled ......................................................
Tax credit and deduction for dean-fuel burning vehicles and properties ...
Exception from passive loss limitation for working interests in oil and gas
Special rules for mining reclamation reserves...........................................
Note: Provisions with estimates denoted “normal tax method” have no revenue loss under the reference tax law method.
1 The figure in the table indicates the effect of the earned income tax credit on receipts. The effect on outlays in 1995 is $15,795 million.
1995
125
125
10
1
10
1
10
0
95
85
85
80
75
70
65
65
65
65
50
50
FEDERAL SPENDING
7. FEDERAL SPENDING BY FUNCTION, SUBFUNCTION, AND MAJOR PROGRAM
TABLE 7-1. BUDGET AUTHORITY BY FUNCTION AND PROGRAM
(In m
illions of dollars)
Estimate
Major missions and programs
1997
050 National defense:
051 Department of Defense—Military .
267,194
248,967
252,153
243,441
240,234
246,723
253,024
053 Atomic energy defense activities
12,059
10,877
10,598
10,971
10,867
11,017
11,158
054 Defense-related activities............
1
,8
1,074
914
916
931
946
962
255,329
252,032
281,076
260,918
2,986
1,018
1,583
1,573
670
320
2,605
1,510
1,478
1,426
720
361
589
-1,014
512
-572
-710
-510
-618
-361
-549
-286
-516
-240
-472
-432
7,007
7,551
-1,127
-910
-802
-712
-644
3,382
2,676
90
-469
-204
3,131
2,072
96
-574
-235
-628
-726
-245
-731
-230
-632
-230
-606
-223
Subtotal, International security assistance
5,475
4,499
-913
-971
-862
-828
153 Conduct of foreign affairs:
State Department salaries and expenses ............
Foreign buildings ..................................................
Contributions to International Organizations (UN ).
Contributions to International Peacekeeping (UN)
Other programs.....................................................
2,164
560
913
460
229
21
,1 1
2,178
422
914
2,178
422
1,036
2,178
422
1,130
2,178
422
1,170
2,178
422
1,283
187
191
192
194
195
4,327
4,619
3,700
3,826
3,921
3,963
4,078
1,190
40
18
1,132
208
17
1,175
257
17
1,289
1,294
1,305
1,317
......17
......17
......17
......17
1,248
1,358
1,449
1,306
1,312
1,323
1,334
751
14,653
1,018
796
677
663
660
87
-193
-923
1,280
-266
-1,125
-1,170
-102
740
-282
-766
-104
-454
-106
-1,460
-166
-348
-108
14,275
805
484
-1,273
-1,413
-110
-1
,<
-1,397
3,173
900
3,173
800
3,260
700
3,348
600
3,413
500
Total, National defense.................
150 International affairs:
151 International development and humanitarian assistance:
Agency for International Development..........................................
Assistance for New Independent States of Former Soviet Union .
Multilateral development banks (MDB’s) ......................................
Food a id ........................................................................................
Refugee programs.....................................................
Voluntary contributions to international organizations ,
Peace Corps..............................................................
Other programs..........................................................
Credit liquidating accounts.........................................
Offsetting receipts......................................................
Subtotal, International development and humanitarian assistance
152 International security assistance:
Non-proliferation and disarmament fund ...........................................
Foreign military financing grants and loans ......................................
Economic support fund .....................................................................
Other programs..................................................................................
Foreign military financing repayment.................................................
Foreign military financing liquidating account....................................
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-lmport Bank..........................................................
International monetary fund .............................................
IMF enhanced structural adjustment facility (proposed) ...
Foreign military sales trust fund (net)............................. .
Special defense acquisition fund ....................................
Credit liquidating account (Exim)....................................
Offsetting receipts............................................................
Subtotal, International financial programs
156 International cooperation:
Agency for International Development..........................................
Assistance for New Independent States of Former Soviet Union .
20
2
265,145
20
2
-212
1
0
-100
400
861
1,072
175
10
0
-220
-1
,1
-1,710
-106
-225
-30
-224
-112
81
82
ANALYTICAL PERSPECTIVES
TABLE 7-1. BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Major missions and programs
Estimate
1993
actual
1994
1995
1996
1997
1998
1999
2,058
1,245
683
227
5,460
533
885
Multilateral development banks (MDB’s) .....
Food aid'.......................................................
Refugee programs.......................................
Peace Corps................................................
Regional peace and security......................
Contributions to international peacekeeping .
Other programs............................................
2,390
1,249
683
227
5,430
245
854
2,155
1,249
683
227
5,608
245
794
1,972
1,249
683
227
5,785
245
710
1,797
1,249
683
227
5,925
245
599
15,164
15,050
14,921
14,818
14,638
32,333
18,831
18,757
17,028
16,978
17,042
17,180
250 General science, space, and technology:
251 General science and basic research:
National Science Foundation programs................
Department of Energy general science programs
2,702
1,471
2,985
1,615
3,167
1,113
3,201
940
3,267
933
3,367
888
3,467
888
Subtotal, General science and basic research .
4,173
4,600
4,281
4,142
4,201
4,256
4,356
5,003
5,720
2,291
5,040
5,595
2,433
4,978
5,534
2,571
4,944
5,493
2,661
4,950
5,564
2,708
16
17
17
18
18
Subtotal, International cooperation
Total, International affairs .............
252 Space flight, research, and supporting activities:
Science, Aeronautics and Technology .........................
Human space flight ......................................................
Mission support.............................................................
Research and program development ...........................
Space flight control and data communications ............
Construction of facilities ...............................................
Research and development..........................................
Other .............................................................................
1,320
5,059
462
6,208
15
1,350
4,822
287
6,440
15
Subtotal, Space flight, research, and supporting activities .
13,064
12,915
13,029
13,083
13,100
13,115
13,240
Total, General science, space, and technology.................
17,236
17,515
17,310
17,225
17,301
17,371
17,595
3,457
3,774
3,839
3,960
3,997
4,006
4,234
-220
-211
-212
-200
-377
153
-392
162
-373
95
-351
319
-220
-211
-412
-224
-230
-278
-32
37
3,409
-400
1,334
-364
1,056
-65
1,841
-82
1,419
-165
1,094
-160
-207
1,033
-160
437
135
63
-74
30
-125
30
30
30
437
135
-11
-95
30
30
30
157
168
165
162
159
157
275
261
256
148
265
236
276
279
287
297
298
305
275
261
404
501
555
584
603
Credit liquidating account (REA)........................
-437
-56
250
5
247
-391
-26
105
4
-1,263
-551
-4
53
7
-955
-585
-2
65
7
-964
-591
-2
60
7
-957
-592
-2
60
7
-976
-600
-2
62
7
-985
Subtotal, Energy supply................................
7,404
3,479
3,230
4,605
4,370
3,768
4,141
272 Energy conservation....................................
561
673
961
983
1,050
1,139
1,211
274 Emergency energy preparedness ...............
60
216
144
158
159
252
252
276 Energy information, policy, and regulation:
Nuclear Regulatory Commission (NRC)............
33
9
22
22
22
22
22
270 Energy:
271 Energy supply:
Research and development.............................
Naval petroleum reserves:
Existing Law .................................................
Proposed legislation not subject to PAYGO
Subtotal, Naval petroleum reserves........
Federal power marketing ..........................
Tennessee Valley Authority .......................
Hydropower leasing (proposed—PAYGO) ..
Uranium enrichment:
Existing Law ..........................................
Proposed legislation subject to PAYGO
Subtotal, Uranium enrichment
Uranium enrichment decontamination and decommissioning fund
Nuclear waste program:
Existing Law ..............................................................................
Proposed legislation subject to PAYGO ...................................
Subtotal, Nuclear waste program ,
Nuclear waste fund receipts ...........................
Subsidies for nonconventional fuel production .
Rural electric and telephone lines..................
83
7. FEDERAL SPENDING BY FUNCTION, SUBFUNCTION, AND MAJOR PROGRAM
TABLE 7-1. BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
1993
actual
Estimate
1994
1996
1995
1997
1996
1999
Other energy programs..................................................................................
207
364
362
405
405
405
405
Subtotal, Energy information, policy, and regulation.................................
240
373
384
427
427
427
427
Total, Energy..............................................................................................
8,264
4,741
4,720
6,173
6,005
5,586
6,031
4,021
911
333
4,145
928'
700
3,550
836
131
3,952
860
130
3,736
847
144
4,077
858
165
3,790
810
165
-464
-472
-483
-6
-489
-12
-553
-12
-541
-12
-478
-12
Subtotal, Offsetting receipts ..................................................................
-464
-472
-489
-501
-565
-553
-490
Subtotal, Water resources.........................................................................
4,801
5,301
4,028
4,441
4,162
4,545
4,275
2,995
2,902
2,901
2,892
2,865
2,839
2,817
907
966
987
1,000
1,005
4
1,010
100
1,014
100
907
966
987
1,000
1,008
1,110
1,114
21
273
1,741
21
273
1,061
21
273
622
857
27
857
27
857
30
300 Natural resources and environment:
301 Water resources:
Corps of Engineers ........................................................................................
Bureau of Reclamation...................................................................................
Other ..............................................................................................................
Offsetting receipts:
Existing Law ..............................................................................................
Proposed legislation not subject to PAYGO..............................................
302 Conservation and land management:
Forest Service................................................................................................
Management of public lands (BLM):
Existing Law ..............................................................................................
Proposed legislation subject to PAYGO ....................................................
Subtotal, Management of public lands (BLM).......................................
Federal land acquisition .................................................................................
Mining reclamation and enforcement.............................................................
Conservation reserve program.......................................................................
Other conservation of agricultural lands:
Existing Law ...............................................................................................
Proposed legislation not subject to PAYGO..............................................
28
300
1,547
12
302
1,743
21
278
1,752
21
273
1,806
860
920
1,032
27
857
27
Subtotal, Other conservation of agricultural lands................................
860
920
1,059
884
884
884
887
356
371
372
373
374
374
374
-2,218
-2,379
-2,362
-2,434
-16
-2,497
-158
-2,516
-181
-2,555
-221
Subtotal, Offsetting receipts..................................................................
-2,218
-2,379
-2,362
-2,450
-2,655
-2,698
-2,776
Subtotal, Conservation and land management..........................................
4,775
4,837
5,009
4,799
4,511
3,864
3,333
257
42
247
45
234
47
234
47
234
47
234
47
234
47
2,509
2,649
2,697
-19
5
2,834
-19
20
2,863
-19
35
2,878
-19
46
2,951
-19
55
2,509
2,649
2,682
2,835
2,879
2,905
2,987
-204
-223
-261
-27
-5
-276
-33
-20
-285
-33
-35
-293
-37
-46
-301
-33
-55
Subtotal, Offsetting receipts ..................................................................
-204
-223
-293
-329
-353
-376
-389
Subtotal, Recreational resources...............................................................
2,604
2,719
2,670
2,786
2,806
2,810
2,878
2,712
1,589
165
2,600
1,497
153
2,983
1,500
169
3,002
1,513
169
3,085
1,513
169
3,168
1,513
169
3,221
1,572
169
2,550
2,477
1,950
2,150
2,250
2,250
2,350
Other ..............................................................................................................
Offsetting receipts:
Existing Law ..............................................................................................
Proposed legislation subject to PAYGO ....................................................
303 Recreational resources:
Federal land acquisition .................................................................................
Urban park and historic preservation funds...................................................
Operation of recreational resources:
Existing Law ...............................................................................................
Proposed legislation not subject to PAYGO..............................................
Proposed legislation subject to PAYGO ....................................................
Subtotal, Operation of recreational resources.......................................
Offsetting receipts:
Existing Law ..............................................................................................
Proposed legislation not subject to PAYGO..............................................
Proposed legislation subject to PAYGO ....................................................
304 Pollution control and abatement:
Regulatory, enforcement, and research programs.........................................
Hazardous substance superfund ...................................................................
Oil pollution funds (gross)..............................................................................
Water infrastructure financing:
Existing Law ...............................................................................................
84
ANALYTICAL PERSPECTIVES
TABLE 7-1. BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Estimate
1993
1994
1995
Proposed legislation not subject to PAYGO.............................................
1996
1997
1998
1999
700
700
800
900
1,000
Subtotal, Water infrastructure financing.................................................
2,550
2,477
2,650
2,850
3,050
3,150
3,350
Leaking underground storage tank trust fund................................................
Superfund recoveries and other
Existing Law ...............................................................................................
Proposed legislation not subject to PAYGO..............................................
84
76
77
77
77
77
77
-191
-236
-248
-15
-224
-15
-200
-15
-176
-151
Subtotal, Superfund recoveries and other.............................................
-191
-236
-263
-239
-215
-176
-151
Subtotal, Pollution control and abatement.................................................
6,908
6,568
7,115
7,372
7,679
7,901
8,238
306 Other natural resources:
Program activities...........................................................................................
Offsetting receipts...........................................................................................
2,566
-19
2,758
-18
2,793
-19
2,816
-19
2,784
-19
2,765
-19
2,719
-19
Subtotal, Other natural resources..............................................................
2,547
2,740
2,774
2,797
2,765
2,747
2,700
Total, Natural resources and environment.................................................
21,636
22,163
21,596
22,196
21,924
21,867
21,425
14,570
11,455
9,423
-974
8,374
ACC
—aOO
8,914
-940
8,837
-923
8,791
-905
Subtotal, Commodity Credit Corporation...............................................
14,570
11,455
8,449
7,418
7,974
7,914
7,885
Crop insurance:
Existing Law ...............................................................................................
Proposed legislation subject to PAYGO....................................................
286
236
219
648
219
832
219
949
219
1,067
219
1,187
Subtotal, Crop insurance.......................................................................
286
236
867
1,051
1,168
1,286
1,407
Agricultural credit insurance...........................................................................
Emergency food assistance program............................................................
Other
Existing Law ...............................................................................................
Proposed legislation not subject to PAYGO..............................................
427
165
486
120
421
40
420
40
420
40
419
40
419
40
1,085
1,018
1,089
-67
1,089
-102
1,089
-115
1,089
-127
1,089
-137
Subtotal, Other.......................................................................................
1,085
1,018
1,022
987
974
962
952
Credit liquidating accounts (ACIF & FAC)......................................................
-70
50
-623
-731
-912
-863
-767
Subtotal, Farm income stabilization ...........................................................
16,464
13,366
10,176
9,184
9,664
9,758
9,936
1,139
428
1,130
436
1,160
432
1,121
432
1,129
432
1,136
432
1,136
432
191
191
192
-20
192
-23
192
-23
192
-23
192
-23
350 Agriculture:
351 Farm income stabilization:
Commodity Credit Corporation:
Existing Law ...............................................................................................
Proposed legislation subject to PAYGO ....................................................
352 Agricultural research and services:
Research programs........................................................................................
Extension programs........................................................................................
Marketing programs:
Existing Law ...............................................................................................
Proposed legislation not subject to PAYGO..............................................
191
191
172
169
169
169
169
Animal and plant health programs.................................................................
Economic intelligence.....................................................................................
Other programs and unallocated overhead....................................................
Offsetting receipts........................................................................... ...............
459
143
429
-130
469
140
471
-117
450
146
548
-114
450
146
584
-113
450
146
681
-110
450
146
662
-109
450
146
850
-109
Subtotal, Agricultural research and services..............................................
2,660
2,721
2,795
2,790
2,898
2,886
3,075
Total, Agriculture........................................................................................
19,124
16,087
12,972
11,974
12,561
12,645
13,011
370 Commerce and housing credit:
371 Mortgage credit:
Mortgage credit (FHA)..................................................... ..............................
Rural housing programs.................................................................................
Credit liquidating accounts.............................................................................
287
1,081
934
-3
1,154
1,478
108
746
904
-1
746
560
-20
746
40
-22
746
-660
-8
746
-1,015
Subtotal, Mortgage credit...........................................................................
2,302
2,630
1,758
1,305
766
65
-277
Subtotal, Marketing programs...............................................................
85
7. FEDERAL SPENDING BY FUNCTION, SUBFUNCTION, AND MAJOR PROGRAM
TABLE 7-1.
BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Major missions and programs
372 Postal service:
Payments to the Postal Service fund (on-budget)
Postal service (off-budget) ...................................
Subtotal, Postal service
373 Deposit insurance:
Resolution Trust Corporation Fund ....
FSUC Resolution Fund....................
Savings Association Insurance Fund .
Discretionary.....................................
1995
161
2,239
130
4,282
130
5,349
130
2,057
129
311
129
1,579
129
2,400
4,412
5,479
2,186
440
1,708
135
1,174
452
142
1,194
452
142
709
1,119
395
260
465
466
731
1,409
345
270
482
749
1,437
545
280
502
517
767
1,452
1,545
290
524
536
6
18,315
827
2,428
34
2,462
18,745
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...................................
815
413
344
213
341
367
250
611
546
284
250
230
477
8
720
986
363
250
446
416
3
Subtotal, Other advancement of commerce
2,743
2,405
3,184
3,413
3,732
4,031
5,114
Total, Commerce and housing credit..........
9,906
28,191
11,281
8,099
5,391
5,945
4,972
(7,667)
(2,239)
(23,909)
(4,282)
(5,932)
(5,349)
(6,042)
(2,057)
(5,080)
(311)
(4,366)
(1,579)
21,129
395
3,867
1,052
44
19,170
420
4,579
45
19,966
405
4,979
1,289
44
19,937
427
4,861
1,148
44
-39
-44
-50
-11
19,652
362
4,724
1,023
44
-42
-42
19,944
432
6,087
1,148
44
-40
-9
-8
19,652
362
4,724
1,023
44
-43
-7
Subtotal, Offsetting receipts ..
-42
-44
-50
-50
-50
-50
-50
Subtotal, Ground transportation .
26,446
25,281
26,633
26,366
27,604
25,755
25,755
9,112
1,245
8,114
1,551
29
8,807
1,271
26
8,756
1,317
26
8,756
1,400
26
8,756
1,485
26
8,756
1,360
39
10,396
9,694
10,103
10,098
10,182
10,267
10,155
3,202
3,531
3,665
3,658
3,671
3,723
3,761
163
184
21
2
10
,0 0
168
166
162
158
163
184
12
,2 1
168
166
162
158
6
-100
-2
-100
-1
-100
1
-100
-103
-104
-104
Subtotal, Deposit insurance
On-budget
Off-budget
400 Transportation:
401 Ground transportation:
Highways...............................................................
Highway safety......................................................
Mass transit..........................................................
Railroads...............................................................
Regulation (IC C )...................................................
Extend rail safety user fees (proposed—PAYGO) ,
Other offsetting receipts........................................
402 Air transportation:
Airports and airways (FAA).................
Aeronautical research and technology
Payments to air carriers......................
Subtotal, Air transportation
403 Water transportation:
Marine safety and transportation ...............
Ocean shipping:
Existing Law ..........................................
Proposed legislation subject to PAYGO
Subtotal, Ocean shipping
11
,1 1
32
2
0
34
(6
)
-78
-87
-99
1
-100
-102
Subtotal, Offsetting receipts
-78
-87
-199
-202
-203
-204
-204
Subtotal, Water transportation .
3,287
3,628
4,692
3,624
3,632
3,680
3,716
324
351
368
368
Panama Canal Commission............................
Increase tonnage duties (proposed—PAYGO).
Other offsetting receipts..................................
407 Other transportation:
Miscellaneous programs .
368
86
ANALYTICAL PERSPECTIVES
TABLE 7-1. BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Estimate
1993
actual
Major missions and programs
1994
1995
1996
1997
1998
1999
Offsetting receipts...........................................................................................
-24
-36
-37
-37
-37
-37
-37
Subtotal, Other transportation.....................................................................
299
315
331
330
330
330
330
Total, Transportation..................................................................................
40,428
38,918
41,759
40,419
41,748
40,032
39,957
4,243
4,400
4,400
4,400
4,400
4,400
800
200
Project-based community development grants (proposed—Nonpaygo) 200
200
100
100
100
100
144
144
111
101
1
5
4
15
14
7
590
177
272
380
373
382
4,400
200
100
450 Community and regional development:
451 Community development:
Community development block grants............................................................
.........
Colonias assistance program (proposed—Nonpaygo)...................................
Community development financial institutions (proposed—Nonpaygo)..........
Pennsylvania Avenue Development Corporation...........................................
Other..............................................................................................................
1
406
Subtotal, Community development.............................................................
4,848
4,591
5,724
5,229
5,188
5,184
5,107
452 Area and regional development:
Rural development:
Existing Law ...............................................................................................
Proposed legislation not subject to PAYGO..............................................
732
856
962
1
957
6
957
6
957
6
958
6
Subtotal, Rural development..................................................................
732
856
963
963
963
964
964
Economic development assistance.................................................................
Indian programs..............................................................................................
Appalachian Regional Commission ........ .......................................................
Tennessee Valley Authority ...........................................................................
Credit liquidating accounts.............................................................................
Offsetting receipts...........................................................................................
333
1,467
195
135
513
-455
351
1,625
254
140
316
-412
412
1,570
192
140
75
-389
430
1,532
192
140
136
-347
430
1,514
192
140
74
-333
430
1,504
192
140
61
-322
430
1,499
192
140
106
-322
Subtotal Area and regional development..................................................
2,919
3,129
2,963
3,046
2,980
2,969
3,009
148
2,027
130
320
134
320
139
320
143
320
147
320
212
171
292
4
170
183
183
183
183
183
Subtotal, Disaster relief and insurance......................................................
2,387
637
633
637
641
646
650
Total Community and regional development............................................
10,154
8,357
9,319
8,912
8,809
8,798
8,767
453 Disaster relief and insurance:
Small business disaster loans .......................................................................
Disaster relief..................................................................................................
National flood insurance fund .....................................................................
Other...............................................................................................................
500 Education, training, employment, and social services:
501 Elementary, secondary, and vocational education:
Education reform:
Existing Law
.............................................................................
Proposed legislation not subject to PAYGO..............................................
155
900
1,250
1,250
1,215
1,160
155
Subtotal Education reform............................................ ........................
900
1,250
1,250
1,215
1,160
School improvement programs:
Existing Law ...............................................................................................
Proposed legislation not subject to PAYGO ...........................................
1,531
1,377
38
1,681
38
1,669
38
1,589
38
1,589
38
1,589
Subtotal School improvement programs...............................................
1,531
1,377
1,719
1,707
1,627
1,627
1,627
Education for the disadvantaged:
Existing Law
.......................................... ...............................................
Proposed legislation not subject to PAYGO..............................................
6,709
6,924
10
7,568
10
7,810
10
8,054
10
8,298
10
8,544
Subtotal Education for the disadvantaged........................................... .
6,709
6,924
7,579
7,821
8,064
8,309
8,554
........................................................................................
2,966
3,109
3,295
3,295
3,295
3,295
3,295
......................................................
840
798
750
575
658
668
678
Special education
Impact aid:
F y k tin n L aw
Pronosed leaislation not subiect to PAYGO ....................................................
Subtotal Impact a id ...............................................................................
840
798
750
575
658
668
678
Vocational and adult education.......................................................................
Indian education programs:
Existing L aw ...............................................................................................
1,481
1,488
1,455
1,455
1,455
1,455
1,455
535
579
513
532
552
573
577
87
7. FEDERAL SPENDING BY FUNCTION, SUBFUNCTION, AND MAJOR PROGRAM
TABLE 7-1. BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In
of dollars)
Estimate
Major missions and programs
1996
1997
1998
Proposed legislation not subject to PAYGO
Subtotal, Indian education programs......
535
579
Other:
Existing L aw ................................................
Proposed legislation not subject to PAYGO
152
247
Subtotal, Other.................................................................
Subtotal, Elementary, secondary, and vocational education
502 Higher education:
Student financial assistance.....................................................
Family education loan program ................................................
Federal direct loan program.....................................................
Higher education.......................................................................
Other ........................................................................................
Credit liquidating account (Family education loan program) ....
Subtotal, Higher education.
503 Research and general education aids:
Research and general education aids:
Existing Law ................................................
Proposed legislation not subject to PAYGO
618
7
254
638
7
247
7
247
7
247
7
247
152
247
261
253
253
253
253
14,214
14,677
16,558
16,974
17,240
17,481
17,685
7,920
2,647
7,867
1,909
303
-674
7,746
1,153
1,894
867
303
-604
7,746
1,085
2,293
299
756
7,746
1,325
1,262
870
301
-2,118
7,746
1,208
1,418
838
289
3,055
8,023
2,441
298
894
290
-443
14,759
11,503
12,414
9,385
10,869
11,360
11,674
2,119
2,158
20
,0 0
2,038
340
2,034
340
2,055
340
2,082
340
1
0
340
88
6
86
6
300
-616
2,119
2,158
2,340
2,377
2,374
2,395
2,422
2,119
2,158
2,340
2,377
2,374
2,395
2,422
4,614
5,014
5,684
150
5,896
6,340
20
0
6,413
165
6,574
Subtotal, Training and employment services .
4,614
5,014
5,834
6,096
6,540
6,578
6,684
Trade adjustment assistance ................................
Older Americans employment...............................
Payments to States for AFDC work programs......
Federal-State employment service........................
Other.....................................................................
80
396
76
410
11
0
12
0
396
92
396
103
396
80
396
Subtotal, Research and general education aids
Subtotal, Research and general education aids....
504 Training and employment:
Training and employment services:
Existing Law ................................................
Proposed legislation not subject to PAYGO
10
,0 0
10
,1 0
1,181
77
1,254
93
396
1,300
1,463
95
Subtotal, Training and employment.
7,347
7,946
505 Other labor services .....................
933
22
0
20
0
10
1
10
,0 0
10
,0 0
10
,0 0
10
,0 0
1,463
95
1,463
95
1,463
95
1,463
95
9,189
9,151
9,586
9,635
9,718
957
1,062
1,048
1,059
1,057
1,053
2,800
441
2,183
2,924
3,659
839
326
15
577
60
3,800
464
2,297
2,993
4,237
871
812
16
861
150
2,800
435
2,362
3,441
4,913
876
243
54
1,376
225
2,800
435
2,420
4,000
5,612
873
1,616
240
2,800
435
2,487
4,249
6,312
873
1,905
255
2,800
435
2,556
4,654
7,012
873
2,246
270
2,800
435
2,632
5,079
7,712
873
54
54
54
...... 54
Subtotal, Social services.......................................................
13,387
16,127
16,133
17,794
19,065
20,543
2 ,1 0
20
Total, Education, training, employment, and social services
52,760
53,368
57,696
56,730
60,193
62,471
64,652
82,596
89,077
89,238
-15
108,191
-3,547
121,488
-11,778
136,338
-30,447
152,235
-51,335
Subtotal, Medicaid grants.............
82,596
89,077
89,223
104,644
109,711
105,891
100,900
Health insurance earned income credit.
650
373
506 Social services:
National service initiative........................................................
Family support and preservation ...........................................
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..........................................................
Interim assistance to States for legalization...........................
Other social services.............................................................
550 Health:
551 Health care services:
Medicaid grants:
Existing Law .........................................................................
Health Security Act (PAYGO)...............................................
88
ANALYTICAL PERSPECTIVES
TABLE 7-1. BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Major missions and programs
1993
1996
Federal employees’ health benefits (FEHB).........................................
Coal miners retirees health benefits.....................................................
Indian health.........................................................................................
Substance abuse and mental health services.....................................
Other health care services...................................................................
Allowance for
Supplemental services (Health Security Act—PAYGO) ...................
Long-term care (gross benefits) (Health Security Act—PAYGO).....
Federal employee’s health benefits (Health Security Act—PAYGO)
Access to health care fund (Health Security Act—Nonpaygo) ........
Access to health care fund (Health Security Act—PAYGO)............
Premium subsidies (Health Security Act—PAYGO) .........................
Subtotal, Health care services .
552 Health research and training:
National Institutes of Health...........................................................................
DoD breast cancer and other health research ..............................................
Clinical training ...............................................................................................
Other research and training...........................................................................
Allowance for:
Access to health care fund (Health Security Act—Nonpaygo) ..................
Access to health care fund (Health Security Act—PAYGO)......................
Academic health centers and graduate medical education (Health Secu
rity Act—Nonpaygo)...............................................................................
Academic health centers and graduate medical education (Health Secu
rity Act-PAYGO) ..................................................................................
4,149
161
3,805
239
1,947
2,150
4,914
4,211
236
1,700
2,434
4,973
1997
5,276
230
1,735
2,439
5,353
20
0
60
,0 0
16
,8 8
2,039
4,176
4,646
233
1,716
2,412
5,132
1 ,2 0
00
60
10
,1 2
5,757
228
1,745
2,452
5,446
6,062
226
1,834
2,577
5,737
700
20
,0 0
203
847
13,900
-1,600
194
2,900
18,200
-2,514
-73
505
8,153
25,240
64,565
77,576
95,638
102,506
103,282
134,298
161,934
200,578
213,426
10,335
10,965
11,482
11,964
12,466
12,989
13,598
353
264
358
309
358
283
351
294
344
304
335
312
338
326
10
,0 0
10
,2 0
1,300
1,300
20
1
600
600
600
750
1,325
3,238
4,288
5,603
11,161
11,632
13,474
15,533
18,153
19,825
21,765
494
517
534
-103
535
-103
537
-103
541
-103
541
-103
494
517
431
432
434
438
438
830
493
915
505
685
538
702
736
605
Subtotal, Consumer and occupational health and safety .
1,817
1,937
1,654
1,729
1,801
1,809
1,843
Total, Health....................................................................
108,616
116,075
118,410
151,560
181,888
22 1
2 ,2 2
237,034
89,076
102,779
112,133
-200
123,848
-5,165
134,879
-9,835
147,534
-17,015
162,051
-23,665
102,779
111,933
118,683
125,044
130,519
138,386
49,735
58,545
-150
66,176
-1,920
73,722
6,509
81,840
13,833
90,990
10,217
101,587
8,014
49,735
58,395
64,256
80,231
95,673
101,207
109,601
Medicare premiums and collections:
Existing L aw ..............................................................
Health Security Act (PAYGO)....................................
-14,054
-10,592
-20,056
2
-19,914
-2,431
-21,348
-3,841
-23,859
-2,760
-25,372
-3,979
Subtotal, Medicare premiums and collections
-14,054
-10,592
-20,054
-22,345
-25,189
-26,619
-29,351
Total, Medicare....................................................
124,757
150,583
156,135
176,568
195,528
205,108
218,636
4,192
1,308
4,654
1,388
4,633
1,311
4,687
1,259
4,678
1,209
4,662
1,156
4,708
Subtotal, Health research and training .
554 Consumer and occupational health and safety:
Food safety and inspection:
Existing Law ..........................................................
Proposed legislation not subject to PAYGO.........
Subtotal, Food safety and inspection
Other consumer safety.............
Occupational safety and health
570 Medicare:
571 Medicare:
Hospital insurance (HI):
Existing Law ..........................
Health Security Act (PAYGO)
Subtotal, Hospital insurance (HI) ....
Supplementary medical insurance (SMI):
Existing Law .......................................
Health Security Act (PAYGO).............
Subtotal, Supplementary medical insurance (SMI)
600 Income security:
601 General retirement and disability insurance (excluding social secu
rity):
Railroad retirement.........................................................................................
Special benefits for disabled coal miners.......................................................
10
,1 2
89
7. FEDERAL SPENDING BY FUNCTION, SUBFUNCTION, AND MAJOR PROGRAM
TABLE 7-1. BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Major missions and programs
179
Other
Subtotal, General retirement and disability insurance (excluding social!
curity).................................................................................................
602 Federal employee retirement and disability:
Civilian retirement and disability programs.................................................
Military retirement.......................................................................................
Federal employees workers’ compensation (FECA):
Existing Law ...........................................................................................
Proposed legislation subject to PAYGO ................................................
22
0
205
22
1
219
225
233
5,678
6,245
6,149
6,158
6,106
6,043
6,043
35,502
25,823
36,753
26,513
38,271
27,195
39,903
28,302
42,076
29,514
44,089
30,808
46,213
32,948
278
258
-2
248
-3
279
-3
326
-3
334
-3
278
256
245
276
323
331
19
2
1
23
26
29
Subtotal, Federal employees workers’ compensation (FECA).
288
Federal employees life insurance fund............................................
1
2
Subtotal, Federal employee retirement and disability.................
61,625
63,546
65,740
68,470
71,889
75,246
79,520
603 Unemployment compensation ...................................................
38,164
29,195
25,442
25,895
26,311
26,426
27,506
15,623
14,365
22,911
24,706
27,060
28,224
10
,0 0
10
,0 0
2,342
150
50
1,232
267
175
40
271
300
513
2,721
334
115
1,275
124
265
14,561
1,250
2,546
2,426
2,160
2,157
2,163
10
,1 0
10
,1 0
10
,1 0
10
,1 0
10
,1 0
265
50
265
50
265
50
265
50
10
0
10
0
265
50
10
0
10
0
500
622
500
774
500
759
500
736
500
622
213
413
-26
733
70
763
181
858
213
811
242
779
213
413
708
833
1,039
1,024
12
,0 1
21,177
20,729
21,702
29,959
31,680
33,991
35,045
27,064
1,040
6,841
2,860
27,046
1,079
7,517
3,210
27,688
1,143
7,469
3,564
11
,2 1
11
,1 2
28,625
1,143
8,332
3,402
512
29,702
1,143
8,939
3,508
658
1,143
9,573
3,616
629
858
39,016
39,963
40,721
42,902
44,839
46,548
48,385
22,568
27,334
27,875
-18
28,793
-13
31,456
-9
34,959
-9
38,528
-9
22,568
27,334
27,857
28,780
31,447
34,950
38,519
15,695
8,781
381
1,346
893
226
-735
16,173
10,036
400
1,437
893
170
-922
16,962
15,797
414
730
1,091
171
-1,047
17,510
18,932
414
745
1,091
171
-1,147
18,232
21,456
414
730
1,091
172
-1,350
18,904
22,368
414
730
1,091
171
-1,477
19,739
23,167
414
730
1,091
171
-1,609
Subtotal, Other income security
49,154
55,521
61,974
66,496
72,192
77,150
82,221
Total, Income security...............
214,815
215,198
221,729
239,881
253,016
265,404
278,719
604 Housing assistance:
Subsidized housing including section 8 .....................
Homeless assistance grants (proposed—Nonpaygo)
Public housing ...........................................................
Supportive housing program.....................................
Emergency shelter grants.........................................
Home investment partnerships program...................
Shelter plus care ......................................................
Community partnerships against crime ....................
Youthbuild program ........................ ..........................
HOPE grants.............................................................
Revitalization of distressed public housing...............
Rural housing assistance..........................................
Other housing assistance:
Existing L aw .........................................................
Proposed legislation subject to PAYGO ..............
Subtotal, 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)
Special supplemental food program (Health Security Act—Nonpaygo).........
Other nutrition programs................................................................................
Subtotal, Food and nutrition assistance .
609 Other income security:
Supplemental security income (SSI):
Existing Law ..........................................
Proposed legislation subject to PAYGO
Subtotal, 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............................................................
SSI offsetting receipts .................................
-207
778
546
10
0
10
,0 0
10
,0 0
31,705
1,143
10,254
3,728
66
6
88
8
90
ANALYTICAL PERSPECTIVES
TABLE 7-1.
BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Estimate
1993
actual
1994
1995
271,282
283,845
296,715
-17
311,587
-13
Subtotal, Old-age and survivors insurance (OASI) ...............................
271,282
283,845
296,698
Disability insurance (Dl):
Existing Law ...............................................................................................
Proposed legislation not subject to PAYGO..............................................
35,060
38,135
Subtotal, Disability insurance (D l)..........................................................
35,060
38,135
Major missions and programs
650 Social Security:
651 Social security:
Old-age and survivors insurance (OASI):
Existing L aw ...............................................................................................
Proposed legislation not subject to PAYGO..............................................
1996
1997
1998
1999
326,733
-8
342,636
-8
359,534
-8
311,574
326,725
342,628
359,526
42,003
-25
45,887
-19
49,940
-13
54,216
-13
58,725
-13
41,978
45,868
49,927
54,203
58,712
Social security interfunds ...............................................................................
-4
-16
-16
-16
-16
-16
-16
Total, Social Security.................................................................................
306,338
321,964
338,660
357,426
376,636
396,815
418,221
On-budget ..............................................................................................
Off-budget ..............................................................................................
(6,248)
(300,090)
(5,790)
(316,174)
(6,639)
(332,021)
(7,004)
(350,422)
(7,447)
(369,189)
(7,910)
(388,905)
(8,404)
(409,817)
13,429
14,014
14,173
347
14,172
790
*
14,163
1,266
*
14,134
1,753
*
14,132
2,264
*
700 Veterans benefits and services:
701 Income security for veterans:
Compensation:
Existing L aw ...............................................................................................
Proposed legislation not subject to PAYGO..............................................
Proposed legislation subject to PAYGO ....................................................
*
Subtotal, Compensation.........................................................................
13,429
14,014
14,520
14,961
15,429
15,888
16,396
Pensions ........................................................................................................
Burial benefits and miscellaneous assistance................................................
National service life insurance trust fund.......................................................
All other insurance programs.........................................................................
Insurance program receipts ...........................................................................
3,477
99
1,480
34
-395
3,398
108
1,388
25
-319
3,344
111
1,357
33
-306
3,314
114
1,300
37
-288
3,304
118
1,280
35
-274
3,296
121
1,179
35
-261
3,768
124
1,104
34
-246
Subtotal, Income security for veterans......................................................
18,123
18,615
19,059
19,439
19,892
20,258
21,182
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..............................................................................................................
779
-16
-89
1
1,051
-3
-63
1
1,287
-1
-146
1
1,445
-1
-141
1
1,525
1,607
1,664
-130
1
-137
1
-123
1
Subtotal, Veterans education, training, and rehabilitation .........................
675
985
1,140
1,305
1,397
1,471
1,542
14,962
15,953
16,413
16,913
600
17,413
1,700
17,413
17,413
684
-53
-357
565
-63
-420
1,000
308
-61
-503
300
-56
-587
443
-57
-644
368
-61
-701
368
370
-709
Subtotal, Hospital and medical care for veterans......................................
15,235
16,036
17,157
17,171
18,855
17,020
17,442
704 Veterans housing:
Loan guaranty.................................................................................................
Direct loans.....................................................................................................
Guaranty and indemnity.................................................................................
Credit liquidating accounts.............................................................................
207
6
855
112
96
3
-57
78
1
434
71
1
417
60
36
363
47
*
346
518
Subtotal, Veterans housing........................................................................
1,181
42
513
489
423
393
554
705 Other veterans benefits and services:
Cemeteries, administration of veterans benefits, and other..........................
Non-VA support programs..............................................................................
948
95
964
94
988
92
967
91
985
94
986
94
987
94
Subtotal, Other veterans benefits and services.........................................
1,043
1,057
1,080
1,058
1,079
1,080
1,081
36,736
38,949
39,462
41,646
40,222
41,802
703 Hospital and medical care for veterans:
Medical care and hospital services ...............................................................
Veterans health care investment fund (Health Security Act—Nonpaygo)
Veterans health care investment fund (Health Security Act—PAYGO).........
Construction...................................................................................................
Third-party medical recoveries.......................................................................
Fees and other charges for medical services................................................
Total, Veterans benefits and services........................................................
36,259
*
*
91
7. FEDERAL SPENDING BY FUNCTION, SUBFUNCTION, AND MAJOR PROGRAM
TABLE 7-1. BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Major missions and programs
Estimate
1993
1995
1996
1997
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 IN S )........................................
Customs and INS fees..................................................................................
Protection activities (Secret Service)............................................................
Other enforcement........................................................................................
3,209
372
3,187
-1,276
521
738
3,413
372
3,357
-1,423
502
651
3,462
380
3,695
-1,763
512
703
3,373
380
3,709
-1,832
524
710
3,353
380
3,733
-1,859
502
709
-1,886
502
712
3,313
380
3,779
-1,913
502
717
Subtotal, Federal law enforcement activities ...........................................
6,751
6,872
6,989
6,864
6,818
6,797
6,778
752 Federal litigative and judicial activities:
Civil and criminal prosecution and representation.......................................
Federal judicial activities..............................................................................
Representation of indigents in civil cases....................................................
Other............................................................................................................
2,501
2,614
357
14
2,695
2,820
400
7
2,695
3,188
500
2,695
3,200
500
2,695
3,211
500
2,695
3,223
500
2,695
3,237
500
Subtotal, Federal litigative and judicial activities .....................................
5,486
5,922
6,384
6,394
6,406
6,418
6,432
753 Federal correctional activities ...............................................................
1,937
22
,2 0
2,598
2,980
3,174
3,444
3,709
754 Criminal justice assistance:
Criminal justice assistance...........................................................................
Crime control fund (proposed—Nonpaygo)..................................................
1,006
565
2,423
570
4,287
575
5,000
580
5,500
585
6,500
Subtotal, Criminal justice assistance........................................................
1,006
2,988
4,857
5,575
Total, Administration of justice ................................................................
15,180
15,873
18,960
21,095
21,973
22,740
24,004
800 General government:
801 Legislative functions...............................................................................
2,109
2,114
2,323
2,473
2,559
2,648
2,695
802 Executive direction and management...................................................
254
254
299
345
351
346
346
803 Central fiscal operations:
Collection of taxes........................................................................................
Other fiscal operations.................................................................................
7,105
149
7,352
228
7,466
165
7,899
230
7,785
236
7,521
236
7,234
237
Subtotal, Central fiscal operations........................... ................................
7,254
7,580
7,631
8,129
82
,0 1
7,757
7,471
804 General property and records management:
Real property activities.................................................................................
Property and other receipts .........................................................................
Records management..................................................................................
Other ............................................................................................................
-11
168
198
-43
193
192
1,428
-52
198
187
-52
198
187
-52
198
186
-52
198
192
-52
198
192
Subtotal, General property and records management............................
763
740
1,760
332
332
338
338
805 Central personnel management.............................................................
178
177
171
172
176
180
528
305
463
678
285
531
700
279
515
104
227
207
104
230
228
104
236
235
272
539
78
104
244
241
265
565
78
104
253
249
261
570
78
104
259
256
256
585
78
104
270
264
1,919
2,158
2,170
2,176
21
,2 1
2,226
2,255
161
322
174
175
151
146
147
12
1
106
-10
80
80
-19
79
-28
79
-28
79
-28
Subtotal, Territories..............................................................................
12
1
106
70
61
51
51
51
Treasury claims ............................................................................................
Civil liberties public education fund ..............................................................
Presidential election campaign fund.............................................................
518
500
28
591
611
5
81
523
5
81
523
5
81
523
5
81
518
5
81
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 ............................................................................................................
Subtotal, General purpose fiscal assistance............................................
808 Other general government:
Compact of free association ........................................................................
Territories:
Existing Law .............................................................................................
Proposed legislation not subject to PAYGO............................................
408
8
6
12
0
10
0
81
1
12
0
3,333
380
3,757
7,085
92
ANALYTICAL PERSPECTIVES
TABLE 7-1. BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Major missions and programs
Estimate
1993
1994
1995
1998
1999
183
91
105
107
10
1
12
1
115
1,503
1,291
1,045
953
921
918
917
809 Deductions for offsetting receipts .
-739
-691
-700
-710
-710
-710
-710
Total, General government..............
13,240
13,623
14,701
13,868
13,857
13,700
13,493
900 Net interest:
901 Interest on the public d e b t...........................
292,502
298,505
310,906
324,314
339,361
356,197
372,652
-25,155
-9,831
-26,197
-10,252
-27,069
-10,692
-27,850
-11,039
-28,477
-11,511
-29,056
-11,929
-29,730
-12,345
-12,468
-12,724
-10
-12,337
-30
-11,503
-33
-11,118
-795
-10,402
-1,891
-9,251
-3,481
Subtotal, Medicare................................................
-12,468
-12,734
-12,367
-11,536
-11,913
-12,293
-12,732
Other on-budget trust fund interest..............................
-8,082
-7,590
-7,063
-7,173
-7,366
-7,880
-6,309
Subtotal, Interest received by on-budget trust funds
-55,537
-56,772
-57,191
-57,598
-59,267
-61,158
-63,116
-26,788
-29,073
-31,669
-34,922
-38,784
-43,151
-48,023
-11,333
2,127
2,328
514
-9,601
2,679
2,328
553
-8,794
2,899
2,328
798
-7,645
3,016
2,328
991
-6,708
3,151
2,328
1,169
-5,874
3,297
2,328
1,309
-5,144
3,440
2,328
1,340
-493
-707
-1,184
-1,933
-2,953
-11
-4,130
-15
-4,996
-18
-493
-707
-1,186
-1.9
-2,964
-4,145
-5,014
-542
-624
-3,957
-3,840
-740
-56
-4,462
-805
-64
-3,478
-870
-69
-3,344
-885
-60
-3,209
-885
-53
-3,122
Subtotal, Other interest.
-11,356
-9,212
-9,211
-7,595
-7,306
-7,240
-7,110
Total, Net interest.........
198,822
203,448
212,835
224,199
234,004
244,648
254,402
(225,610)
(232,521)
(-29,073)
(244,504)
(-31,669)
(259,121)
(-34,922)
(272,788)
(-38,784)
(287,799)
(-43,151)
(302,425)
(-48,023)
-712
-2,796
-2,779
-2,859
-3,106
-390
-494
-608
-685
-550
148
892
-1,650
466
1,188
-4,600
-388
901
-6,100
-300
-700
-2,000
-2,200
-6,087
-8,586
Other....................................................
Subtotal, Other general government
902 Interest received by on-budget trust funds:
Civil Service retirement and disability..................
Military retirement................................................
Medicare:
Existing Law ....................................................
Health Security Act (Nonpaygo).....................
903 Interest received by off-budget trust funds...........
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:
Existing Law ............................................................
Proposed legislation not subject to PAYGO...........
Subtotal, Interest received from direct loan financing accounts .
Interest on deposits in tax and loan accounts .
Cash management improvement....................
Other...............................................................
On-budget
Off-budget
920 Allowances:
922 Reinventing Federal procurement.
-2
923 Reducing Federal agency rents ...................................................
-207
924 Adjustment to continue certain accounts at baseline levels....
-236
-6
929 Health security:
Health Security Act receipts (Health Security Act—Nonpaygo) .........
Agency share of FEHB premiums (Health Security Act—Nonpaygo).
Administrative/start up costs, (Health Security Act—Nonpaygo)........
Administrative/start up costs, (Health Security Act—PAYGO)............
Savings (Health Security Act—Nonpaygo).........................................
1,279
1,279
Total, Allowances
-13,179
-2,375
-4,785
-12,671
-2,448
-5,136
190
124
Subtotal, Health security
950 Undistributed offsetting receipts:
951 Employer share, employee retirement (on-budget):
Contributions to military retirement fund........................
Contributions to HI trust fund.........................................
Postal Service contributions to CSRS............................
-872
586
-2,996
-3,969
-9,554
-12,377
-12,158
-2,531
-5,669
-10,320
-3,249
-5,678
-10,210
-10,308
-2,874
-6,389
-10,389
-3,031
-6,519
-2,743
-5,925
93
7. FEDERAL SPENDING BY FUNCTION, SUBFUNCTION, AND MAJOR PROGRAM
TABLE 7-1.
BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
1993
actual
Estimate
1994
1995
1996
1997
1998
1999
Other contributions to civilian retirement fund................................................
-7,847
-7,961
-8,135
-8,341
-8,581
-8,764
-8,839
Subtotal, Employer share, employee retirement (on-budget)....................
-28,186
-28,217
-28,493
-27,587
-27,459
-28,335
-28,778
952 Employer share, employee retirement (off-budget)...............................
-6,416
-6,463
-6,756
-7,184
-7,628
-8,279
-8,887
953 Rents and royalties on the Outer Continental Shelf.............................
-2,785
-2,708
-3,048
-2,708
-2,755
-2,805
-2,848
-500
-4,300
-4,200
-1,600
-2,000
959 Other undistributed offsetting receipts...................................................
Total, Undistributed offsetting receipts.......................................................
-37,386
-37,887
-42,597
-41,679
-39,442
-41,420
-40,513
On-budget ..............................................................................................
Off-budget .............................................................................................
(-30,970)
(-6,416)
(-31,425)
(-6,463)
(-35,841)
(-6,756)
(-34,495)
(-7,184)
(-31,814)
(-7,628)
(-33,141)
(-8,279)
(-31,626)
(-8,887)
Total ..........................................................................................................
1,473,557
1,504,701
1,536,981
1,623,468
1,718,081
1,810,316
1,892,156
On-budget ..............................................................................................
Off-budget..............................................................................................
(1,204,431)
(269,126)
(1,219,782)
(284,919)
(1,238,035)
(298,945)
(1,313,095)
(310,373)
(1,394,993)
(323,088)
(1,471,263)
(339,054)
(1,539,243)
(352,913)
* $500 thousand or less.
150-003 0 -9 4 -4
(QL 3)
94
ANALYTICAL PERSPECTIVES
TABLE 7-2. OUTLAYS BY FUNCTION AND PROGRAM
(In m
illions of dollars)
Major missions and programs
Estimate
1993
actual
1994
1995
1996
1997
1998
1999
050 National defense:
051 Department of Defense—Military.................................................
278,561
267,360
259,228
249,095
244,586
244,686
245,503
053 Atomic energy defense activities.................................................
11,017
11,184
10,497
10,847
10,893
10,963
11,070
054 Defense-related activities.............................................................
1,508
1,280
1,001
1,073
950
945
961
Total, National defense..................................................................
291,086
279,824
270,725
261,015
256,429
256,594
257,534
150 International affairs:
151 International development and humanitarian assistance:
Agency for International Development...............................................
Assistance for New Independent States of Former Soviet Union......
Multilateral development banks (MDB’s) ...........................................
Food a id .............................................................................................
Refugee programs..............................................................................
Voluntary contributions to international organizations.......................
Peace Corps......................................................................................
Other programs..................................................................................
Credit liquidating accounts................................................................
Offsetting receipts...............................................................................
2,971
48
1,165
1,481
672
382
212
477
-1,057
-939
2,679
635
1,354
2,061
686
370
226
608
-585
-710
2,028
694
1,588
619
202
107
41
155
-521
-618
1,007
784
1,202
-5
34
9
5
64
-371
-549
531
341
321
207
3
*
*
21
-297
-516
3
-251
-A ll
2
-223
-432
5,413
7,325
4,294
2,178
84
-399
-446
152 International security assistance:
Non-proliferation and disarmament fund ...........................................
Foreign military financing grants and loans ......................................
Economic support fund .....................................................................
Other programs..................................................................................
Foreign military financing repayment.................................................
Foreign military financing liquidating account....................................
4,580
3,231
83
-469
206
2
4,131
2,846
156
-574
186
3
1,154
1,203
62
-628
179
3
131
765
22
-726
-228
2
74
486
13
-731
-503
10
309
6
-632
-502
197
3
-606
-485
Subtotal, International security assistance....................................
7,631
6,747
1,973
-34
-659
-809
-890
153 Conduct of foreign affairs:
State Department salaries and expenses.........................................
Foreign buildings ...............................................................................
Contributions to International Organizations (UN).............................
Contributions to International Peacekeeping (U N )............................
Other programs..................................................................................
2,287
484
915
458
181
2,106
491
861
1,073
212
2,168
497
913
11
203
2,174
515
1,034
2,177
513
1,128
2,178
503
1,168
2,178
498
1,256
202
190
192
195
Subtotal, Conduct of foreign affairs...............................................
4,325
4,742
3,793
3,926
4,008
4,041
4,127
154 Foreign information and exchange activities:
U.S. Information Agency ...................................................................
Board for International Broadcasting .................................................
Other programs..................................................................................
1,088
246
18
1,163
225
17
1,171
216
18
1,265
39
18
1,291
3
17
1,304
1,315
17
17
Subtotal, Foreign information and exchange activities..................
1,352
1,405
1,404
1,321
1,311
1,321
1,332
636
19
6
-1,000
-70
-75
-217
-110
588
19
6
-965
-90
-19
-178
-112
Subtotal, International development and humanitarian assistance
155 International financial programs:
Export-lmport Bank............................................................................
International monetary fund ..............................................................
IMF enhanced structural adjustment facility (proposed)...................
Exchange stabilization fund ..............................................................
Foreign military sales trust fund (net)...............................................
Special defense acquisition fund......................................................
Credit liquidating account (Exim)......................................................
Offsetting receipts..............................................................................
211
336
445
13
551
19
643
19
-1,379
-78
71
-958
-100
-925
70
-75
-677
-102
-950
110
-146
-537
-104
-1,000
100
-105
-458
-106
668
19
6
-1,000
-60
-98
-347
-108
Subtotal, International financial programs.....................................
-1,896
-1,251
-1,057
-907
-920
-810
-751
882
194
138
722
500
186
3,645
527
2,068
428
785
1,262
651
222
4,929
245
2,614
689
2,186
1,248
683
227
5,178
245
2,929
744
2,296
1,249
683
227
5,456
245
3,105
644
2,203
1,249
683
227
5,700
245
156 International cooperation:
Agency for International Development..............................................
Assistance for New Independent States of Former Soviet Union.....
Multilateral development banks (MDB’s) ..........................................
Food a id ............................................................................................
Refugee programs.............................................................................
Peace Corps.....................................................................................
Regional peace and security ...........................................................
Contributions to international peacekeeping.....................................
95
7. FEDERAL SPENDING BY FUNCTION, SUBFUNCTION, AND MAJOR PROGRAM
TABLE 7-2. OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Estimate
Major missions and programs
1997
Other programs.................................
597
779
824
812
747
Subtotal, International cooperation
7,390
11,370
13,894
14,640
14,803
16,826
18,968
17,798
17,855
17,718
17,984
18,176
2,441
1,481
16
2,793
1,653
2,826
1,067
3,009
1,059
3,156
935
3,233
3,328
3,938
4,445
3,893
4,068
4,091
4,133
4,217
4,498
5,461
2,277
4,865
5.476
2.477
4,951
5,431
2,619
4,936
5,517
2,691
1,309
5,025
492
6,251
15
1,334
4,747
453
6,285
15
2,482
3,855
1,939
77
1,724
391
2,565
16
225
144
411
16
49
52
82
17
15
19
2
1
8
17
18
Subtotal, Space flight, research, and supporting activities .
13,092
12,833
13,048
13,053
13,025
13,076
13,183
Total, General science, space, and technology.................
17,030
17,279
16,941
17,121
17,115
17,209
17,400
3,382
3,803
3,932
4,124
4,036
4,108
4,308
-255
-199
-198
-200
-279
153
-357
162
-371
95
-345
319
Total, International affairs.............
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...........................
Subtotal, General science and basic research
252 Space flight, research, and supporting activities:
Science, Aeronautics and Technology.........................
Human space flight ......................................................
Mission support.............................................................
Research and program development ...........................
Space flight control and data communications ............
Construction of facilities...............................................
Research and development.........................................
Other............................................................. ..............
270 Energy:
271 Energy supply:
Research and development.............................
Naval petroleum reserves:
Existing Law .................................................
Proposed legislation not subject to PAYGO ,
2
1
6
2
1
6
7
-255
-199
-398
-126
-195
-275
-26
Federal power marketing ..........................
Tennessee Valley Authority .......................
Hydropower leasing (proposed—PAYGO) ..
Uranium enrichment:
Existing Law ..........................................
Proposed legislation subject to PAYGO
409
1,486
-356
773
500
-385
533
-354
601
-417
649
-160
-443
375
-160
-350
127
26
-106
31
-261
6
6
-248
115
-314
-350
Subtotal, Uranium enrichment...........
-350
127
-79
-230
-182
-200
-181
48
141
173
162
159
157
259
74
260
192
270
258
281
288
292
301
Subtotal, Naval petroleum reserves........
Uranium enrichment decontamination and decommissioning fund
Nuclear waste program:
Existing L aw ..............................................................................
Proposed legislation subject to PAYGO ...................................
Subtotal, Nuclear waste program .
264
264
269
333
452
528
Nuclear waste fund receipts ................................
Subsidies for nonconventional fuel production.....
Rural electric and telephone lines:
Existing Law ....................................................
Proposed legislation not subject to PAYGO....
-437
74
-391
90
-551
36
-585
35
-591
-592
-600
117
151
119
5
99
107
110
101
Subtotal, Rural electric and telephone lines .
117
151
124
98
107
110
101
Credit liquidating account (REA).........................
5
-1,409
4
-574
7
-451
7
-693
7
-824
7
-904
7
-923
Subtotal, Energy supply.................................
3,286
3,743
3,206
3,403
3,293
3,054
3,205
272 Energy conservation.....................................
521
586
743
925
1,003
1,072
1,148
274 Emergency energy preparedness ................
336
279
242
254
257
252
252
276 Energy information, policy, and regulation:
Nuclear Regulatory Commission (NRC).............
-19
2
2
2
2
2
2
2
2
-2
-2
593
-2
-2
96
ANALYTICAL PERSPECTIVES
TABLE 7-2. OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Estimate
Mayor missions and programs
1995
1994
Other energy programs................................................
195
381
367
399
402
402
Subtotal, Energy information, policy, and regulation
176
380
373
411
421
424
424
Total, Energy...........................................................
4,319
4,988
4,564
4,992
4,975
4,802
5,030
3,522
912
287
4,526
1,025
516
3,823
842
437
3,830
849
203
3,879
839
173
3,952
850
174
3,922
802
176
-464
-472
-483
-6
-489
-12
-553
-541
-478
-12
-12
-12
300 Natural resources and environment:
301 Water resources:
Corps of Engineers ..........................................
Bureau of Reclamation.....................................
Other ................................................................
Offsetting receipts:
Existing Law .................................................
Proposed legislation not subject to PAYGO
Subtotal, Offsetting receipts
-464
-472
-489
-501
-565
-553
-490
4,258
5,596
4,615
4,382
4,326
4,423
4,411
2,897
2,853
2,835
2,939
2,867
2,839
2,818
857
943
1,002
999
1,003
1
1,008
29
1,013
49
857
943
1,002
1,004
1,037
1,061
28
304
23
262
1,819
19
309
1,808
18
311
1,806
2
1
2
1
2
1
329
1,741
278
1,061
273
622
854
884
942
26
1,029
27
885
27
836
27
825
27
854
884
968
1,056
912
863
852
367
367
366
357
372
372
373
-2,218
-2,379
-2,362
-2,434
-16
-2,497
-158
-2,516
-181
-2,555
-221
Subtotal, Offsetting receipts ........................
-2,218
-2,379
-2,362
-2,450
-2,655
Subtotal, Conservation and land management.
4,777
4,772
4,944
5,035
4,591
3,773
3,244
305
43
265
50
256
47
246
45
242
46
237
47
236
47
2,475
2,564
2,762
-22
4
2,827
17
2,851
-13
32
2,861
-16
44
2,910
-19
53
Subtotal, Water resources ......
302 Conservation and land management:
Forest Service............................................
Management of public lands (BLM):
Existing Law ..........................................
Proposed legislation subject to PAYGO
Subtotal, Management of public lands (BLM)
Federal land acquisition ...................................
Mining reclamation and enforcement...............
Conservation reserve program........................
Other conservation of agricultural lands:
Existing Law ................................................
Proposed legislation not subject to PAYGO
Subtotal, Other conservation of agricultural lands
Other
Existing Law ..........................................
Proposed legislation subject to PAYGO
303 Recreational resources:
Federal land acquisition...................................
Urban park and historic preservation funds.....
Operation of recreational resources:
Existing L aw .................................................
Proposed legislation not subject to PAYGO .
Proposed legislation subject to PAYGO ......
Subtotal, Operation of recreational resources
Existing Law ................................................
Proposed legislation not subject to PAYGO
Proposed legislation subject to PAYGO .....
Subtotal, Offsetting receipts ....
Subtotal, Recreational resources .
304 Pollution control and abatement:
Regulatory, enforcement, and research programs:
Existing L aw ......................................................
Proposed legislation subject to PAYGO...........
Subtotal, Regulatory, enforcement, and research programs
Hazardous substance superfund ..................................................
Oil pollution funds (gross).............................................................
-21
-2,776
2,475
2,564
2,744
2,823
2,870
2,888
2,943
-204
-223
-261
-27
-5
-276
-33
-20
-285
-33
-35
-293
-37
-46
-301
-33
-55
-204
-223
-293
-329
-353
-376
-389
2,620
2,655
2,754
2,785
2,805
2,796
2,837
2,516
2,714
2,900
3,025
3,053
3,135
3,200
2,516
2,714
3,025
3,053
3,133
3,199
1,418
108
1,613
113
1,566
133
1,543
134
1,511
134
1,497
134
-1
1,586
128
-2
-1
97
7. FEDERAL SPENDING BY FUNCTION, SUBFUNCTION, AND MAJOR PROGRAM
TABLE 7-2. OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Estimate
Major missions and programs
1998
Water infrastructure financing:
Existing Law .................................................
Proposed legislation not subject to PAYGO .
2,130
2,385
2,375
14
2,369
119
2,414
2,342
604
2,326
744
Subtotal, Water infrastructure financing ....
2,130
2,385
2,389
2,488
2,782
2,946
3,070
Leaking underground storage tank trust fund ...
Superfund recoveries and other:
Existing Law .................................................
Proposed legislation not subject to PAYGO .
80
78
77
77
77
77
77
-191
-236
-248
-15
-224
-15
-200
-15
-176
-151
Subtotal, Superfund recoveries and other
-191
-236
-263
-239
-215
-176
-151
Subtotal, Pollution control and abatement ....
6,061
6,667
6,816
7,050
7,375
7,625
7,825
2,541
-19
2,613
-18
2,707
-19
2,904
-19
2,969
-19
2,831
-19
2,496
-19
306 Other natural resources:
Program activities...............
Offsetting receipts...............
Subtotal, Other natural resources .............
2,522
2,595
2,688
2,885
2,950
2,813
2,478
Total, Natural resources and environment.
20,239
22,285
21,817
22,137
22,047
21,430
20,794
16,047
12,118
8,997
-500
350 Agriculture:
351 Farm income stabilization:
Commodity Credit Corporation:
Existing Law ..............................................
Proposed legislation subject to PAYGO ....
Subtotal, Commodity Credit Corporation
Crop insurance:
Existing Law ...............................................
Proposed legislation subject to PAYGO ....
Subtotal, Crop insurance
Agricultural credit insurance.............................
Emergency food assistance program..............
Other:
Existing L aw .................................................
Proposed legislation not subject to PAYGO ,
9,584
9,218
-
1,000
-
1,000
9,691
9,708
-
1,000
16,047
12,118
8,497
8,218
8,584
726
556
168
408
701
440
877
440
977
1,000
8,708
145
-
440
1,159
145
726
724
1,109
1,317
1,417
372
163
485
124
418
40
421
40
420
40
419
40
419
40
1,120
941
974
-109
973
-102
-114
1,038
-127
1,035
-137
Subtotal, Other.........................................
1,120
941
871
852
911
Credit liquidating accounts (ACIF & FAC).......
-48
-231
-593
-800
-1,050
-947
-859
Subtotal, Farm income stabilization ............
17,799
14,162
9,950
9,859
10,163
10,548
10,789
1,133
404
1,157
427
1,171
434
1,146
432
1,144
432
1,154
432
1,145
432
204
176
191
-20
192
-23
191
-23
191
-23
191
-23
352 Agricultural research and services:
Research programs..........................................
Extension programs.........................................
Marketing programs:
Existing Law ................................................
Proposed legislation not subject to PAYGO
204
176
172
169
167
167
167
147
396
-130
448
139
475
-117
449
144
591
-114
444
145
598
-113
450
146
713
-110
450
146
681
-109
450
146
837
-109
Subtotal, Agricultural research and services .
2,643
2,705
2,846
2,821
2,943
2,923
3,069
Total, Agriculture..........................................
20,443
16,868
12,795
12,680
13,106
13,471
13,858
-4
319
921
-2
-1
-1
-14
1,103
95
874
-16
772
-27
750
-27
748
-12
Subtotal, Marketing programs .................
Animal and plant health programs.............
Economic intelligence.................................
Other programs and unallocated overhead
Offsetting receipts.......................................
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........
-1
2
743
98
ANALYTICAL PERSPECTIVES
TABLE 7-2. OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Estimate
Major missions and programs
1994
1995
1996
1999
Credit liquidating accounts:
Existing Law .....................................................
Proposed legislation subject to PAYGO .........
319
-957
-520
-1,438
-1,918
-3,187
-44
-3,925
-71
-4,487
-195
Subtotal, Credit liquidating accounts...........
319
-1,477
-1,444
-1,9
-3,231
-3,996
-4,681
Subtotal, Mortgage credit.................................
1,554
-388
-477
-1,184
-2,507
-3,275
-3,951
372 Postal service:
Payments to the Postal Service fund (on-budget)
Postal service (off-budget) ..................................
161
1,441
130
1,748
130
3,259
130
242
129
-534
129
-1,079
129
-1,458
Subtotal, Postal service..................................
1,602
1,879
3,389
372
-405
-950
-1,329
373 Deposit insurance:
Resolution Trust Corporation Fund......................
Bank Insurance Fund..........................................
FSLIC Resolution Fund.......................................
Savings Association Insurance Fund...................
National Credit Union Administration...................
Other mandatory..................................................
Discretionary........................................................
-19,183
-9,834
2,362
-943
-372
-18
30
3,522
-6,833
1,367
-1,065
-305
-4
33
-5,057
-5,578
988
-1,119
-356
-9
33
-6,963
-5,315
108
1,292
-378
-14
23
-3,144
-2,748
-267
424
-2,647
-1,586
-281
79
-428
-1,723
-870
Subtotal, Deposit insurance............................
-27,957
-3,285
-11,097
-11,247
-6,138
-4,874
-3,262
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..................................
701
267
392
16
306
335
400
325
250
248
436
-131
741
561
344
250
437
476
-104
712
827
361
260
463
451
-13
723
1,088
359
270
480
457
-35
742
1,287
505
280
501
472
760
1,387
1,330
290
523
486
-138
-6
-21
-11
6
-11
1
2
-212
-463
-6
Subtotal, Other advancement of commerce ....
2,077
2,298
2,704
3,061
3,342
3,728
4,637
Total, Commerce and housing credit..............
-22,725
504
-5,482
-8,999
-5,709
-5,372
-3,904
On-budget...................................................
Off-budget...................................................
(-24,166)
(1,441)
(-1,245)
(1,748)
(-8,741)
(3,259)
(-9,241)
(242)
(-5,175)
(-534)
(-4,293)
(-1,079)
(-2,446)
(-1,458)
400 Transportation:
401 Ground transportation:
Highways..............................................................
Highway safety ....................................................
Mass transit.........................................................
Railroads..............................................................
Regulation (IC C )..................................................
Extend rail safety user fees (proposed—PAYGO)
Other offsetting receipts......................................
16,608
316
3,510
818
41
18,180
358
3,770
1,070
45
18,923
372
3,850
1,164
45
19,610
375
4,182
1,120
44
-39
19,833
364
4,328
1,044
44
-40
-9
19,867
353
4,706
1,030
44
-42
-8
19,946
353
4,835
1,021
44
-43
-7
Subtotal, Offsetting receipts .......................
-42
-44
-50
-50
-50
-50
-50
Subtotal, Ground transportation......................
21,251
23,380
24,305
25,281
25,563
25,950
26,149
402 Air transportation:
Airports and airways (FAA).................................
Aeronautical research and technology ................
Payments to air carriers......................................
8,800
1,212
37
8,718
1,349
37
8,659
1,362
29
1,322
26
8,726
1,375
26
8,733
1,453
8,721
1,409
26
Subtotal, Air transportation .............................
10,049
10,103
10,049
10,031
10,127
10,212
10,155
3,168
3,551
3,403
3,656
3,682
3,685
3,752
356
324
414
80
353
98
309
10
1
178
104
147
104
Subtotal, Ocean shipping ...........................
356
324
494
451
419
282
251
Panama Canal Commission...............................
Increase tonnage duties (proposed—PAYGO) ....
-23
-100
-100
-100
403 Water transportation:
Marine safety and transportation........................
Ocean shipping:
Existing L aw ....................................................
Proposed legislation subject to PAYGO ........
-42
-50
-11
-7
-6
-100
-100
99
7. FEDERAL SPENDING BY FUNCTION, SUBFUNCTION, AND MAJOR PROGRAM
TABLE 7-2. OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Major missions and programs
actual
1995
1997
-78
-87
-99
-102
-103
-104
-104
Subtotal, Offsetting receipts
-78
-87
-199
-202
-203
-204
-204
Subtotal, Water transportation .
3,423
3,783
3,690
3,897
3,898
3,764
3,799
306
-24
351
-36
361
-37
368
-37
-37
368
-37
368
-37
Subtotal, Other transportation .
281
315
324
331
332
330
330
Total, Transportation..............
35,004
37,582
38,368
39,541
39,920
40,256
40,433
3,198
3,746
4,136
26
4
4,721
238
82
124
-4
410
-128
4,416
231
97
105
-7
380
-133
4,400
229
Other offsetting receipts..............
407 Other transportation:
Miscellaneous programs..............
450 Community and regional development:
451 Community development:
Community development block grants..................................................
Project-based community development grants (proposed—Nonpaygo)
Colonias assistance program (proposed—Nonpaygo).........................
Community development financial institutions (proposed—Nonpaygo) .
Pennsylvania Avenue Development Corporation .................................
Other ....................................................................................................
Credit liquidating accounts...................................................................
82
437
-37
185
410
-30
442
-27
4,580
189
43
144
148
437
-81
3,681
4,311
4,878
5,460
5,444
5,090
5,042
452 Area and regional development:
Rural development:
Existing Law ................................................
Proposed legislation not subject to PAYGO
390
568
717
-6
802
3
876
925
981
Subtotal, Rural development...................
390
568
711
805
882
931
987
Economic development assistance..................
Indian programs...............................................
Appalachian Regional Commission .................
Tennessee Valley Authority ............................
Coastal energy impact fund............................
Credit liquidating accounts..............................
Offsetting receipts............................................
157
1,471
150
143
293
1,504
154
139
347
1,557
185
133
501
1,537
492
1,494
133
471
1,527
203
133
133
428
1,499
198
133
588
-455
292
-412
119
-389
106
-347
72
-333
78
-322
72
-322
Subtotal, Area and regional development.
2,443
2,538
2,662
2,944
2,953
3,007
2,994
453 Disaster relief and insurance:
Small business disaster loans .....................
Disaster relief................................................
National flood insurance fund.......................
Other ............................................................
Credit liquidating accounts...........................
453
2,276
475
187
-465
391
2,024
104
232
-317
209
1,456
-13
205
-244
147
579
-26
192
-267
138
451
-35
182
-233
142
320
-45
181
-197
146
320
-57
181
-167
Subtotal, Disaster relief and insurance
2,927
2,434
1,614
625
502
Total, Community and regional development
9,051
9,282
9,154
9,030
19
104
108
29
19
212
793
1,166
1,645
1,263
297
1,344
1,628
Subtotal, Community development
500 Education, training, employment, and social services:
501 Elementary, secondary, and vocational education:
Education reform:
Existing Law .................................................................
Proposed legislation not subject to PAYGO................
Subtotal, Education reform
School improvement programs:
Existing Law .................................................
Proposed legislation not subject to PAYGO
2,017
Subtotal, School improvement programs .
2,017
1,645
Education for the disadvantaged:
Existing Law ................................................
6,615
6,900
8
6
21
1
22
0
20
1
1,391
40
-7
401
-121
6
3
1,163
401
424
8,497
1,641
6,019
20
0
100
8,460
1,239
1,215
1,215
38
1,606
38
1,591
1,643
149
1
0
1
0
100
ANALYTICAL PERSPECTIVES
TABLE 7-2. OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Estimate
Mayor missions and programs
1994
1995
Proposed legislation not subject to PAYGO ...
Subtotal, Education for the disadvantaged .
Special education .............................................
Impact aid:
Existing L a w .................................................
Proposed legislation not subject to PAYGO ,
1997
908
6,084
1998
7,640
8,029
8,274
6,615
6,900
6,927
7,474
7,788
8,040
8,284
2,564
3,604
3,274
3,323
3,291
3,295
3,295
432
983
249
614
129
590
15
646
676
Subtotal, Impact a id .................................
432
983
719
661
Vocational and adult education........................
Indian education programs:
Existing Law ................................................
Proposed legislation not subject to PAYGO
1,190
1,317
1,373
1,568
1,455
1,455
1,455
505
502
528
13
506
541
84
559
573
Subtotal, Indian education programs......
505
502
541
576
625
Other:
Existing Law ................................................
Proposed legislation not subject to PAYGO
157
282
233
30
63
202
243
7
247
7
247
263
265
255
254
253
17,466
Subtotal, Other.................................................................
157
282
11
676
13,481
15,252
14,918
16,360
16,935
17,235
7,678
2,228
7,439
1,906
474
852
275
882
7,740
1,422
849
882
274
-2,029
7,746
1,165
1,057
873
271
-595
7,746
1,095
1,213
1,042
322
3,203
7,421
2,370
154
881
302
-552
264
-547
7,746
1,036
1,511
866
264
-578
14,483
10,575
11,828
9,138
10,517
10,639
10,846
2,040
2,219
2,177
123
2,054
308
2,012
334
2,051
338
2,086
340
2,040
2,219
2,301
2,362
2,346
2,389
2,425
2,040
2,219
2,301
2,362
2,346
2,389
2,425
4,241
4,536
4,807
8
5,456
122
5,796
187
6,264
197
6,428
4,241
4,536
4,814
5,578
5,983
6,461
6,597
77
389
736
1,180
76
78
386
860
1,196
81
91
406
1,031
1,291
90
90
397
1,005
1,463
93
1,463
93
73
396
995
1,463
93
396
987
1,463
93
Subtotal, Training and employment.
6,700
7,136
7,724
8,626
9,480
9,603
505 Other labor services ......................
948
952
1,036
1,031
1,048
1,049
1,045
208
196
48
2,877
475
2,397
3,000
4,135
817
466
131
3,240
465
2,476
3,362
4,441
876
244
718
209
3,255
1,132
236
2.835
437
2,470
4,174
5.835
872
1,419
252
2,800
435
2.538
4,559
6.538
872
1,610
267
2,800
435
2,612
4,976
7,239
872
Subtotal, Elementary, secondary, and vocational education .
502 Higher education:
Student financial assistance......................................................
Family education loan program ................................................
Federal direct loan program......................................................
Higher education.......................................................................
Other.........................................................................................
Credit liquidating account (Family education loan program) ....
Subtotal, Higher education.
503 Research and general education aids:
Research and general education aids:
Existing L aw .................................................
Proposed legislation not subject to PAYGO
Subtotal, Research and general education aids
Subtotal, Research and general education aids....
10
868
504 Training and employment:
Training and employment services:
Existing Law .................................................
Proposed legislation not subject to PAYGO
Subtotal, Training and employment services .
Trade adjustment assistance...........................
Older Americans employment.........................
Payments to States for AFDC work programs .
Federal-State employment service...................
Other................................................................
506 Social services:
National service initiative........................................................
Family support and preservation ...........................................
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..........................................................
Interim assistance to States for legalization..........................
2,785
423
1,984
2,636
3,432
567
318
AAA
2,405
3,874
5,158
875
68
101
7. FEDERAL SPENDING BY FUNCTION, SUBFUNCTION, AND MAJOR PROGRAM
TABLE 7-2. OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Major missions and programs
1994
1995
16
Other social services..........
16
42
50
54
54
Subtotal, Social services .
12,360
14,660
15,717
16,979
18,041
19,467
20,864
Total, Education, training, employment, and social services
50,012
50,793
53,524
54,495
57,886
60,260
62,250
75,774
87,156
96,388
-15
108,191
-3,547
121,488
-11,778
136,338
-30,447
152,235
-51,335
75,774
87,156
96,373
104,644
109,711
105,891
100,900
650
2,879
161
1,742
1,994
3,659
373
2,918
239
1,949
2,089
4,245
3,517
236
1,804
2,214
4,655
4,045
233
1,767
2,522
5,021
4,112
230
1,765
2,451
5,170
4,825
228
1,757
2,445
5,301
5,213
226
1,832
2,512
5,504
200
2,000
60
404
212
8,153
700
10,200
203
661
81
25,240
13,900
-1,600
290
27
64,565
2,900
18,200
-2,514
31
550 Health:
551 Health care services:
Medicaid grants:
Existing Law .........................................................................
Health Security Act (PAYGO)...............................................
Subtotal, Medicaid grants ,
Health insurance earned income credit................................................
Federal employees’ health benefits (FEHB)..........................................
Coal miners retirees health benefits.....................................................
Indian health.........................................................................................
Substance abuse and mental health services.....................................
Other health care services...................................................................
Allowance for:
Supplemental services (Health Security Act—PAYGO) ...................
Long-term care (gross benefits) (Health Security Act—PAYGO).....
Federal employee’s health benefits (Health Security Act—PAYGO)
Access to health care fund (Health Security Act—Nonpaygo) ........
Access to health care fund (Health Security Act—PAYGO)............
Premium subsidies (Health Security Act—PAYGO) ........................
6,000
185
98,969
335
672
244
133,260
160,524
199,629
212,379
10,261
124
353
342
256
11,018
67
362
104
290
11,690
12,378
13,080
13,603
350
372
374
373
288
296
304
314
367
150
670
150
927
81
1,175
459
549
596
340
9,543
108,983
190
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...........................................................................
Allowance for:
Access to health care fund (Health Security Act—Nonpaygo) .................
Access to health care fund (Health Security Act—PAYGO).....................
Academic health centers and graduate medical education (Health Secu
rity Act—Nonpaygo)...............................................................................
Academic health centers and graduate medical education (Health Secu
rity Act-PAYGO) ..................................................................................
77,576
1,594
3,339
4,328
5,603
219
10,794
11,336
12,401
14,629
17,664
19,644
21,665
506
495
533
-103
535
-103
537
-103
541
-103
541
-103
506
495
430
432
434
438
438
775
480
948
504
729
534
701
701
597
730
669
Subtotal, Consumer and occupational health and safety .
1,762
1,947
1,693
1,720
1,794
1,805
1,837
Total, Health....................................................................
99,415
112,252
123,077
149,609
179,982
221,078
235,881
91,604
102,892
112,258
-200
123,359
-5,165
135,197
-9,835
147,664
-17,015
161,540
-23,665
Subtotal, Hospital insurance (HI) ....
91,604
102,892
112,058
118,194
125,362
130,649
137,875
Supplementary medical insurance (SMI):
Existing Law .......................................
54,254
58,490
66,144
73,665
81,825
90,981
101,552
Subtotal, Health research and training .
554 Consumer and occupational health and safety:
Food safety and inspection:
Existing L aw ..........................................................
Proposed legislation not subject to PAYGO.........
Subtotal, Food safety and inspection
Other consumer safety.............
Occupational safety and health
570 Medicare:
571 Medicare:
Hospital insurance (HI):
Existing Law ..........................
Health Security Act (PAYGO).
102
ANALYTICAL PERSPECTIVES
TABLE 7-2. OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Estimate
Major missions and programs
1994
Health Security Act (PAYGO)............................................ ........................
1995
1999
-150
-1,920
6,509
13,833
10,217
8,014
Subtotal, Supplementary medical insurance (SMI) ...............................
54,254
58,340
64,224
80,174
95,658
101,198
109,566
Medicare premiums and collections:
Existing Law ...............................................................................................
Health Security Act (PAYGO)....................................................................
-15,306
-17,581
-20,056
2
-19,914
-2,431
-21,348
-3,841
-23,859
-2,760
-25,372
-3,979
Subtotal, Medicare premiums and collections.......................................
-15,306
-17,581
-20,054
-22,345
-25,189
-26,619
-29,351
Total, Medicare...........................................................................................
130,552
143,651
156,228
176,023
195,831
205,228
218,090
600 Income security:
601 General retirement and disability insurance (excluding social secu
rity):
Railroad retirement.........................................................................................
Special benefits for disabled coal miners.......................................................
Pension Benefit Guaranty Corporation:
Existing L aw ...............................................................................................
Proposed legislation subject to PAYGO ....................................................
4,274
1,416
4,517
1,398
4,542
1,322
4,577
1,273
4,584
1,213
4,593
1,160
4,627
1,106
-1,508
-909
4
-745
-74
-694
-259
-629
-472
-559
-526
-1,314
-1
,1
Subtotal, Pension Benefit Guaranty Corporation...................................
-1,508
-905
-819
-953
1,101
-1,085
Other..............................................................................................................
165
194
196
203
210
215
223
Subtotal, General retirement and disability insurance (excluding social se
curity) .....................................................................................................
4,347
5,203
5,241
5,100
4,906
4,883
4,153
35,210
25,708
36,615
26,513
38,095
27,195
39,716
28,302
41,881
29,514
43,884
30,808
46,004
32,948
205
215
212
-2
216
-3
234
-3
280
-3
292
-3
210
213
231
278
289
1,120
25
-1,096
47
-1,118
71
-1,149
96
602 Federal employee retirement and disability:
Civilian retirement and disability programs.....................................................
Military retirement...........................................................................................
Federal employees workers’ compensation (FECA):
Existing L aw ...............................................................................................
Proposed legislation subject to PAYGO ....................................................
Subtotal, Federal employees workers’ compensation (FECA)...............
205
215
Federal employees life insurance fund:
Existing Law ...............................................................................................
Proposed legislation not subject to PAYGO..............................................
-1,076
-1,086
-
1,100
8
-
-
Subtotal, Federal employees life insurance fund..................................
-1,076
-1,086
-1,092
-1,094
-1,049
-1,047
-1,053
Subtotal, Federal employee retirement and disability................................
60,047
62,257
64,408
67,136
70,577
73,922
78,188
603 Unemployment compensation .................................................................
37,802
29,210
25,453
25,824
26,174
26,291
27,370
17,015
18,078
2,604
91
71
212
2,698
107
18,966
152
2,670
159
19,617
614
2,294
159
19,736
875
2,147
159
20,267
1,058
2,146
116
,'
50
265
36
116
346
1,149
50
265
44
103
428
746
1,100
50
265
47
100
510
677
604 Housing assistance:
Subsidized housing including section 8 ..........................................................
Homeless assistance grants (proposed—Nonpaygo) ....................................
Public housing ................................................................................................
Supportive housing program..........................................................................
Emergency shelter grants ..............................................................................
Home investment partnerships program.........................................................
Shelter plus care ............................................................................................
Community partnerships against crime ..........................................................
Youthbuild program ........................................................................................
HOPE grants...................................................................................................
Revitalization of distressed public housing.......................- ............................
Rural housing assistance...............................................................................
Other housing assistance:
Existing Law ...............................................................................................
Proposed legislation subject to PAYGO ....................................................
8
1,200
50
239
16
415
68
30
518
146
527
19,285
315
2,492
159
29
1,192
50
265
25
104
277
579
987
1,107
1,095
1,079
1,053
44
1,052
71
1,059
195
Subtotal, Other housing assistance.......................................................
987
1,107
1,101
1,115
1,097
1,123
1,254
Subtotal, Housing assistance.....................................................................
21,548
23,840
25,396
25,889
26,460
26,826
27,587
605 Food and nutrition assistance:
Food stamps...................................................................................................
Nutrition assistance for Puerto Rico...............................................................
Child nutrition and special milk......................................................................
23,577
1,025
6,612
25,547
1,078
7,258
25,182
1,141
7,707
26,115
1,143
8,249
27,191
1,143
8,852
28,188
1,143
9,480
29,188
1,143
10,155
1
116
35
68
86
876
15
268
86
6
11
103
7. FEDERAL SPENDING BY FUNCTION, SUBFUNCTION, AND MAJOR PROGRAM
TABLE 7-2. OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Estimate
Major missions and programs
1997
1995
3,222
1999
3,423
473
3,500
647
887
3,608
631
887
3,720
663
887
38,443
40,288
42,220
43,938
45,756
26,706
28,455
-18
28,870
-13
31,456
-9
34,959
-9
38,528
-9
22,642
26,706
28,437
28,857
31,447
34,950
38,519
Family support payments...............................................................................
Earned income tax credit (EITC)...................................................................
Refugee assistance........................................................................................
Low income home energy assistance...........................................................
Payments to states for day-care assistance..................................................
Other..............................................................................................................
SSI offsetting receipts ....................................................................................
15,628
8,781
360
1,068
411
-735
16,413
10,036
378
2,076
980
266
-922
16,921
15,797
399
791
1,037
164
-1,047
17,486
18,932
408
747
1,146
167
-1,147
18,172
21,456
412
731
1,096
170
-1,350
18,857
22,368
413
730
1,091
170
-1,477
19,683
23,167
413
730
1,091
170
-1,609
Subtotal, Other income security................................................................
48,366
55,933
62,499
66,595
72,134
77,101
82,164
Total, Income security................................................................................
207,257
214,626
221,440
230,833
242,471
252,961
265,220
269,960
282,394
295,631
-17
311,429
-13
323,290
-8
339,323
356,112
-8
Subtotal, Old-age and survivors insurance (OASI) ...............................
269,960
282,394
295,614
311,416
323,282
339,315
356,104
Disability insurance (Dl):
Existing Law ...............................................................................................
Proposed legislation not subject to PAYGO..............................................
34,641
38,075
41,595
-25
45,465
-19
49,454
-13
53,790
-13
58,265
-13
Subtotal, Disability insurance (D l)..........................................................
34,641
38,075
41,570
45,446
49,441
53,777
58,252
Social security interfunds ...............................................................................
-17
-10
-16
-16
-16
-16
-16
Total, Social Security.................................................................................
304,585
320,460
337,168
356,847
372,707
393,075
414,340
On-budget ..............................................................................................
Off-budget ..............................................................................................
(6,236)
(298,349)
(5,796)
(314,663)
(6,639)
(330,529)
(7,004)
(349,843)
(7,447)
(365,260)
(7,910)
(385,165)
(8,404)
(405,936)
13,376
15,035
14,176
346
13,078
728
14,164
1,228
14,137
1,714
14,132
2,203
Subtotal, Compensation.........................................................................
13,376
15,035
14,522
13,806
15,392
15,851
16,336
Pensions ........................................................................................................
Burial benefits and miscellaneous assistance................................................
National service life insurance trust fund.......................................................
All other insurance programs................................. .......................................
Insurance program receipts ...........................................................................
3,529
99
1,127
21
-395
3,661
109
1,205
110
-319
3,344
3,062
114
1,254
3,296
-288
3,305
118
1,280
20
-274
1,326
23
-261
3,730
124
1,368
-3
-246
Subtotal, Income security for veterans.......................................................
17,758
19,801
18,959
17,960
19,840
20,357
21,310
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 ..............................................................................................................
854
61
-89
1,198
35
-63
1,300
43
-146
1,405
20
-141
1,511
19
-130
1,603
16
-137
1
1
1
Subtotal, Veterans education, training, and rehabilitation.........................
826
1,170
1,196
1,285
1,401
1,483
1,552
703 Hospital and medical care for veterans:
Medical care and hospital services...............................................................
14,613
15,629
16,342
16,840
17,342
17,403
17,410
Special supplemental food program for women, infants, and children (WIC)
Special supplemental food program (Health Security Act—Nonpaygo).........
Other nutrition programs................................................................................
2,846
1,087
1,078
875
Subtotal, Food and nutrition assistance.....................................................
35,148
38,183
609 Other income security:
Supplemental security income (SSI):
Existing L aw ...............................................................................................
Proposed legislation subject to PAYGO ....................................................
22,642
Subtotal, Supplemental security income (SSI) ......................................
650 Social Security:
651 Social security:
Old-age and survivors insurance (OASI):
Existing Law ..............................................................................................
Proposed legislation not subject to PAYGO..............................................
700 Veterans benefits and services:
701 Income security for veterans:
Compensation:
Existing L aw ...............................................................................................
Proposed legislation not subject to PAYGO..............................................
Proposed legislation subject to PAYGO ....................................................
21
1
3,538
111
1,238
50
-306
11
121
1,1
14
-123
104
ANALYTICAL PERSPECTIVES
TABLE 7-2. OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
Estimate
1993
actual
1994
Veterans health care investment fund (Health Security Act—Nonpaygo) .....
Veterans health care investment fund (Health Security Act—PAYGO).........
Construction...................................................................................................
Third-party medical recoveries.......................................................................
Fees and other charges for medical services................................................
617
-60
-357
Subtotal, Hospital and medical care for veterans......................................
1995
1996
1997
1998
1999
600
1,700
692
-60
-420
1,000
636
-62
-503
525
-56
-587
425
-58
-644
385
-61
-701
379
370
-709
14,812
15,842
17,413
17,322
18,765
17,026
17,450
704 Veterans housing:
Loan guaranty.................................................................................................
Direct loans....................................................................................................
Guaranty and indemnity.................................................................................
Credit liquidating accounts.............................................................................
207
2
855
235
96
4
-57
169
78
2
434
123
71
2
417
69
60
2
363
54
47
*
346
21
36
*
518
13
Subtotal, Veterans housing........................................................................
1,299
212
637
560
479
415
568
705 Other veterans benefits and services:
Cemeteries, administration of veterans benefits, and other..........................
Non-VA support programs..............................................................................
937
88
1,009
95
943
98
976
87
965
88
968
88
969
88
Subtotal, Other veterans benefits and services.........................................
1,025
1,104
1,042
1,063
1,053
1,056
1,057
Total, Veterans benefits and services........................................................
35,720
38,129
39,247
38,188
41,538
40,337
41,937
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 IN S ).........................................
Customs and INS fees...................................................................................
Protection activities (Secret Service)..............................................................
Other enforcement..........................................................................................
3,248
376
3,199
-1,276
511
615
3,277
371
3,364
-1,423
500
755
3,290
380
3,615
-1,763
510
693
3,401
380
3,684
-1,832
493
707
3,372
380
3,741
-1,859
501
707
3,336
380
3,755
-1,886
497
711
3,315
380
3,776
-1,913
502
715
Subtotal, Federal law enforcement activities .............................................
6,674
6,843
6,725
6,833
6,842
6,793
6,776
752 Federal litigative and judicial activities:
Civil and criminal prosecution and representation.........................................
Federal judicial activities................................................................................
Representation of indigents in civil cases......................................................
Other ..............................................................................................................
2,285
2,649
389
13
2,855
2,889
393
13
2,682
3,108
483
11
2,691
3,121
500
16
2,707
3,132
500
1
2,710
3,145
500
2,711
3,158
500
Subtotal, Federal litigative and judicial activities .......................................
5,336
6,151
6,283
6,327
6,341
6,355
6,369
753 Federal correctional activities ..................................................................
2,124
2,482
2,856
3,377
3,299
3,495
3,633
754 Criminal justice assistance:
Criminal justice assistance.............................................................................
Crime control fund (proposed—Nonpaygo)....................................................
822
1,002
769
698
703
2,325
572
3,936
552
4,988
558
6,407
*
Subtotal, Criminal justice assistance..........................................................
822
1,002
1,467
3,028
4,508
5,540
6,965
Total, Administration of justice ..................................................................
14,955
16,479
17,331
19,565
20,991
22,183
23,743
800 General government:
801 Legislative functions.................................................................................
2,124
2,169
2,318
2,456
2,542
2,631
2,678
802 Executive direction and management.....................................................
197
254
271
336
350
346
347
803 Central fiscal operations:
Collection of taxes..........................................................................................
Other fiscal operations...................................................................................
6,879
96
7,316
262
7,398
160
7,724
290
7,733
230
7,548
175
7,300
234
Subtotal, Central fiscal operations.............................................................
6,976
7,578
7,558
8,014
7,963
7,723
7,534
804 General property and records management:
Real property activities...................................................................................
Property and other receipts ...........................................................................
Records management....................................................................................
Other...............................................................................................................
573
-11
269
175
830
-43
282
255
700
-52
191
199
1,494
-52
186
199
816
-52
187
197
126
-52
187
194
-383
-52
187
192
Subtotal, General property and records management..............................
1,005
1,324
1,038
1,827
1,147
456
-56
105
7. FEDERAL SPENDING BY FUNCTION, SUBFUNCTION, AND MAJOR PROGRAM
TABLE 7-2. OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
Estimate
1993
actual
1994
1995
1996
1997
1998
1999
805 Central personnel management ..............................................................
182
162
167
169
172
175
179
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 A c t................
Payments to States and counties from Federal land management activities .
Payments in lieu of taxes ..............................................................................
Payments to territories and Puerto R ico.......................................................
Other..............................................................................................................
539
309
463
93
103
223
206
676
285
531
102
105
230
229
700
279
515
102
104
236
236
699
272
539
77
104
244
241
698
265
565
78
104
253
249
698
261
570
78
104
259
256
698
256
585
78
104
270
264
Subtotal, General purpose fiscal assistance..............................................
1,935
2,158
2,172
2,176
2,211
2,226
2,255
160
322
174
175
151
146
147
60
85
76
-10
78
-19
77
-28
77
-28
77
-28
Subtotal, Territories................................................................................
60
85
66
59
49
49
49
Treasury claims .............................................................................................
Civil liberties public education fund...............................................................
Presidential election campaign fund..............................................................
Other ..............................................................................................................
519
500
6
84
591
100
523
5
183
111
523
5
4
113
523
5
247
611
5
24
105
116
518
5
29
118
Subtotal, Other general government.........................................................
1,329
1,346
984
1,056
845
839
866
808 Other general government:
Compact of free association..........................................................................
Territories:
Existing L aw ..............................................................................................
Proposed legislation not subject to PAYGO..............................................
*
809 Deductions for offsetting receipts..........................................................
-739
-691
-700
-710
-710
-710
-710
Total, General government........................................................................
13,009
14,299
13,807
15,325
14,519
13,685
13,093
900 Net interest:
901 Interest on the public d e b t......................................................................
292,502
298,505
310,906
324,314
339,361
356,197
372,652
-25,155
-9,831
-26,197
-10,252
-27,069
-10,692
-27,850
-11,039
-28,477
-11,511
-29,056
-11,929
-29,730
-12,345
-12,468
-12,724
-10
-12,337
-30
-11,503
-33
-11,118
-795
-10,402
-1,891
-9,251
-3,481
Subtotal, Medicare.................................................................................
-12,468
-12,734
-12,367
-11,536
-11,913
-12,293
-12,732
Other on-budget trust fund interest ...............................................................
-8,082
-7,590
-7,063
-7,173
-7,366
-7,880
-8,309
Subtotal, Interest received by on-budget trust funds ................................
-55,537
-56,772
-57,191
-57,598
-59,267
-61,158
-63,116
903 Interest received by off-budget trust funds............................................
-26,788
-29,073
-31,669
-34,922
-38,784
-43,151
-48,023
-11,333
2,127
2,328
514
-9,601
2,679
2,328
553
-8,794
2,899
2,328
798
-7,645
3,016
2,328
991
-6,708
3,151
2,328
1,169
-5,874
3,297
2,328
1,309
-5,144
3,440
2,328
1,340
-493
-707
-1,184
-2
-1,933
-6
-2,953
-11
-4,130
-15
-4,996
-18
Subtotal, Interest received from direct loan financing accounts............
-493
-707
-1,186
-1,939
-2,964
-4,145
-5,014
Interest on deposits in tax and loan accounts...............................................
Cash management improvement...................................................................
Other ..............................................................................................................
-542
-624
-3,968
-3,840
-740
-56
-4,462
-805
-64
-3,478
-870
-69
-3,344
-885
-60
-3,209
-885
-53
-3,122
Subtotal, Other interest..............................................................................
-11,367
-9,212
-9,211
-7,595
-7,306
-7,240
-7,110
Total, Net interest.......................................................................................
198,811
203,448
212,835
224,199
234,004
244,648
254,402
(225,599)
(-26,788)
(232,521)
(-29,073)
(244,504)
(-31,669)
(259,121)
(-34,922)
(272,788)
(-38,784)
(287,799)
(-43,151)
(302,425)
(-48,023)
902 Interest received by on-budget trust funds:
Civil Service retirement and disability............................................................
Military retirement...........................................................................................
Medicare:
Existing Law ...............................................................................................
Health Security Act (Nonpaygo)................................................................
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:
Existing Law ..............................................................................................
Proposed legislation not subject to PAYGO..............................................
On-budget ..............................................................................................
Off-budget ..............................................................................................
106
ANALYTICAL PERSPECTIVES
TABLE 7-2. OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Estimate
Major missions and programs
920 Allowances:
922 Reinventing Federal procurement
-544
925 Grant recipients administrative costs .....................................
-3,016
-312
-414
-525
-599
-1,650
466
1,188
-4,600
-388
901
-300
-177
-2,878
-700
-203
924 Adjustment to continue certain accounts at baseline levels .
-2,432
-550
148
923 Reducing Federal agency renis ...............................................
-1,772
-150
929 Health security:
Health Security Act receipts (Health Security Act—Nonpaygo) .........
Agency share of FEHB premiums (Health Security Act—Nonpaygo).
Administrative/start up costs, (Health Security Act—Nonpaygo)........
Administrative/start up costs, (Health Security Act—PAYGO)............
Savings (Health Security Act—Nonpaygo).........................................
1,279
Total, Allowances...........
205
Subtotal, Employer share, employee retirement (on-budget).
6,100
-872
586
1,279
Subtotal, Health security .
950 Undistributed offsetting receipts:
951 Employer share, employee retirement (on-budget):
Contributions to military retirement fund.........................
Contributions to HI trust fund..........................................
Postal Service contributions to CSRS............................
Other contributions to civilian retirement fund.................
-
-
2,000
-
-6,087
190
-1,8
2,200
-8,586
-3,542
-9,490
10,210
-2,743
-5,925
-8,581
-10,308
-2,874
-6,389
-8,764
-10,389
-3,031
-6,519
-8,839
-
12,201
-13,179
-2,375
-4,785
-7,847
-12,671
-2,448
-5,136
-7,961
-12,158
-2,531
-8,135
-10,320
-3,249
-5,678
-8,341
-28,186
-28,217
-28,493
-27,587
-27,459
-28,335
-28,778
-7,628
-8,279
-8,887
-2,848
-
952 Employer share, employee retirement (off-budget)...........
-6,416
-6,463
-6,756
-7,184
953 Rents and royalties on the Outer Continental Shelf.........
-2,785
-2,708
-3,048
-2,708
-2,755
-2,805
-500
-4,300
-4,200
-1,600
-
-37,386
-37,887
-42,597
-41,679
-39,442
-41,420
-40,513
(-30,970)
(-6,416)
(-31,425)
(-6,463)
(-35,841)
(-6,756)
(-34,495)
(-7,184)
(-31,814)
(-7,628)
(-33,141)
(-8,279)
(-31,626)
(-8,887)
1,408,205
1,483,829
1,518,945
1,596,877
1,691,443
1,777,416
1,854,023
(1,141,618)
(266,587)
(1,202,953)
(280,876)
(1,223,582)
(295,364)
(1,288,898)
(307,979)
(1,373,129)
(318,314)
(1,444,760)
(332,656)
(1,506,455)
(347,568)
959 Other undistributed offsetting receipts..............................
Total, Undistributed offsetting receipts..................................
On-budget
Off-budget
Total
On-budget
Off-budget
*$500 thousand or less.
2,000
8. FEDERAL INVESTMENT OUTLAYS AND CAPITAL BUDGETING
Investment outlays are outlays that yield long-term
benefits. They take several forms and are made for
many purposes. They can be direct Federal outlays or
grants to State and local governments. They may be
aimed at improving the efficiency of internal Federal
agency operations or at increasing the Nation’s overall
stock of capital for economic growth. They can be for
physical capital, which yields a stream of services over
a period of years, or for research, development, edu
cation, and training, which are less tangible but also
increase income in the future or provide other long
term benefits. They can also be for acquiring commod
ities or other purposes.
The Administration is strongly committed to increas
ing investment—both public and private—in order to
raise economic growth and future living standards. In
A Vision of Change For America, the President identi
fied these as key elements of his economic plan for
the Nation—“long-term public investments to increase
the productivity of our people and businesses; and a
serious, fair, and balanced deficit-reduction plan to stop
the government from draining the private investments
that generate jobs and increase incomes.” Thus, the
President proposed to increase investment outlays
above the baseline and to reduce the deficit by about
one-half of 1 percent of GDP per year over the budget
horizon. Congress appropriated a substantial amount
of the President’s 1994 request for investment funding,
and $504.8 billion of deficit reduction was achieved by
enactment of the Omnibus Budget Reconciliation Act
of 1993 (OBRA). The 1995 budget builds on these suc
cesses by requesting additional investment funding for
1995 while maintaining the fiscal policy constraint envi
sioned by OBRA.
Higher investment funding carries with it the respon
sibility to use Federal investment dollars wisely. Yet,
as recognized by the National Performance Review
(NPR), “Poor choices of capital investment and the ac
quisition methods are currently costing the taxpayer
millions of dollars each year.” 1 Therefore, in addition
to requesting higher investment funding, the Adminis
tration will implement the NPR recommendation to es
tablish a capital budgeting process for the Federal Gov
ernment that will improve the analysis and review of
its acquisition of general purpose fixed assets.
Most presentations of the Federal budget combine
investment outlays with outlays for current use. This
chapter focuses solely on Federal and federally financed
investment. It discusses the size, composition, and long
term trend of Federal investment outlays. It presents
a capital budget for Federal investment using two defi
nitions of investment, and it analyzes the effectiveness
of a capital budget for the Federal Government as a
capital planning tool. Information about Federal and
federally financed capital stocks and the depreciation
of these assets is also presented. The final section pro
vides projections of Federal physical capital spending
and information regarding recent assessments of public
civilian capital needs, as required by the Federal Cap
ital Investment Program Information Act of 1984.
Part I—DESCRIPTION OF FEDERAL INVESTMENT
For more than forty years, the budget has shown
Federal investment outlays separately from outlays for
current use, using the broad definition of investment
as those outlays which yield long-term benefits. This
presentation has been primarily for analytical purposes
rather than to direct budget decision-making. This sec
tion of the chapter describes the composition of Federal
investment outlays and discusses recent trends in Fed
eral investment.
The classification of spending into investment and
current outlays is a matter of judgment. The budget
has historically employed a relatively broad classifica
tion, including both physical investment and items such
as research, development, education and training. But
presentations for particular purposes would adopt dif
ferent definitions of investment:
• To suit the purposes of a traditional balance sheet,
investment might include only those physical as-
sets owned by the Federal Government, excluding
capital financed through grants and intangible as
sets such as research, education, and training.
• Focusing on the role of investment in improving
national productivity and enhancing economic
growth would exclude items such as national de
fense assets, the benefits of which are enhanced
national security rather than economic growth.
• Concern with the efficiency of Federal operations
would lead to a focus solely on investments to
reduce costs or improve the effectiveness of inter
nal Federal agency operations, such as computer
systems.
• A “social investment” perspective might broaden
the coverage of investment beyond what is in
cluded in this chapter to encompass programs
such as childhood immunization, maternal health,
and substance abuse treatment, which are de-
1Creating A Government That Works Better & Costs Less, Report of the National Perform
ance Review, September 7, 1993, p. 111.
107
108
ANALYTICAL PERSPECTIVES
signed in part to prevent more costly health prob although some may be spent by recipient jurisdictions
lems in future years.
on physical investment.
The relatively broad definition of investment used
Second, some spending could be classified into more
in this section has the presentational virtue of consist than one category of investment. For example, grants
ency over time: historical figures on investment outlays for construction of research facilities finance the acqui
back to 1940 can be found in the separate Historical sition of physical assets, but they also contribute to
Tables volume. The detailed tables at the end of this research and development. To avoid double counting,
section allow disaggregation of the data to focus on the outlays are classified in the category that is most
those investment outlays that best suit a particular commonly recognized as investment. Consequently out
purpose.
lays for the conduct of research and development do
In addition to this basic definitional issue, there are not include outlays for research facilities, because these
two technical problems in the classification of invest
outlays are included in the category for physical invest
ment data, involving the treatment of grants to State
ment. Similarly, physical investment and research and
and local governments and the classification of spend
ing that could be shown in more than one category. development related to education and training are in
First, for some grants to State and local governments, cluded in the categories of physical assets and the con
the recipient jurisdiction, not the Federal Government, duct of research and development.
When direct loans and loan guarantees are used to
ultimately determines whether the money is used to
finance investment or current purposes. This analysis fund investment, the subsidy value is included as in
classifies all of the outlays in the category where the vestment. The subsidies are classified according to their
recipient jurisdictions are expected to spend most of program purpose, such as construction, education and
the money. Hence, community development block training, or non-investment outlays. For more informa
grants are classified as physical investment, although tion about the treatment of Federal credit programs,,
some may be spent for current purposes. General pur refer to Chapter 10, "Underwriting Federal Credit and
pose fiscal assistance is classified as current spending, Insurance.”
Composition of Federal Investment Outlays
construction of military bases and family housing for
military personnel.
The composition of major Federal investment outlays
Outlays for direct physical investment for nondefense
is summarized in Table 8-1. They include major public
purposes are estimated at $22.9 billion in 1995. These
physical investment, the conduct of research and devel outlays include $15.0 billion for construction and reha
opment, and the conduct of education and training. De bilitation. This amount funds water, power, and natural
fense and nondefense investment outlays totalled resources projects of the Corps of Engineers, the De
$236.7 billion in 1993, falling to an estimated $233.6 partment of Interior, the Tennessee Valley Authority,
billion in 1994 and edging up to $234.0 billion in 1995. and the power administrations in the Department of
Major Federal investment will comprise an estimated Energy; construction and rehabilitation of veterans hos
15.4 percent of total Federal outlays in 1995, represent pitals and Postal Service facilities; and facilities for
ing 3.3 percent of the Nation’s gross domestic product space and science programs. Outlays for the acquisition
(GDP). Greater detail on the composition of Federal of major equipment are estimated to be $7.1 billion.
investment is available in two tables that appear at The largest items are for the space program and the
the end of this section.
air traffic control system. Outlays for the purchase of
land and buildings are estimated to be $0.8 billion,
Physical investment.—Outlays for major public mostly for the Federal buildings fund in the General
physical capital investment (hereafter referred to as Services Administration.
physical investment outlays) will total an estimated
Grants to State and local governments for physical
$119.8 billion in 1995. Physical investment outlays are investment are estimated to total $36.5 billion in 1995.
primarily outlays for construction, rehabilitation, and About half of these outlays, or $18.3 billion, are to
major equipment. About three-quarters of these outlays assist with the Interstate Highway System and other
are for direct physical investment outlays by the Fed major highways. Other major grants for physical invest
eral Government, with the remaining quarter rep ment fund sewage treatment plants, community devel
resenting grants to State and local governments for opment, airports, and mass transit.
physical investment.
Direct physical investment outlays by the Federal
Conduct o f research and developm ent.—Outlays
Government are primarily for national defense. Defense for the conduct of research and development are esti
physical outlays are an estimated $60.4 billion in 1995. mated to be $69.7 billion in 1995. These outlays are
Almost all of these outlays, or $55.4 billion, are for devoted to increasing basic scientific knowledge and
the procurement of weapons and other military equip promoting related research and development. They in
ment, and the remainder, $5.0 billion, is primarily for crease the Nation’s security, improve the productivity
M ajor Federal Investm ent
109
8. FEDERAL INVESTMENT OUTLAYS AND CAPITAL BUDGETING
TABLE 8-1. COMPOSITION OF FEDERAL INVESTMENT OUTLAYS
(In billions of dollars)
1993
actual
Estimate
1994
1995
MAJOR FEDERAL INVESTMENT OUTLAYS
Major public physical capital investment:
Direct:
National defense.....................................................................
Nondefense.............................................................................
76.1
19.1
66.5
22.5
60.4
22.9
Subtotal, direct major public physical capital investment ....
95.2
89.0
83.3
Grants to State and local governments......................................
31.2
34.2
36.5
Subtotal, major public physical capital investment .............
Conduct of research and development:
National defense.........................................................................
Nondefense .................................................................................
126.4
123.3
119.8
40.4
28.0
38.9
29.2
39.4
30.3
Subtotal, conduct of research and development.....................
Conduct of education and training:
Grants to State and local governments......................................
68.4
68.1
69.7
21.5
20.4
24.9
17.4
25.6
19.0
Subtotal, conduct of education and training...........................
41.9
42.3
44.6
Major Federal investment outlays................................................
236.7
233.6
234.0
MEMORANDUM
Major Federal investment outlays:
National defense .........................................................................
Nondefense .................................................................................
116.6
120.1
105.5
128.2
99.8
134.2
Total, major Federal investment outlays.................................
236.7
233.6
234.0
Miscellaneous physical investment:
Commodity inventories................................................................
Other physical investment (nondefense, direct)..........................
-0.2
5.6
-0.8
5.8
-0.2
5.5
Total, miscellaneous physical investment...............................
5.4
4.9
5.3
Total, Federal investment outlays, including miscellaneous
physical investment............................................................
242.1
238.6
239.3
of capital and labor for both public and private pur
poses, and enhance the quality of life. Slightly more
than half of these outlays, an estimated $39.4 billion
in 1995, are for national defense. Physical investment
for research and development facilities and equipment
is included in the physical investment category.
Nondefense outlays for the conduct of research and
development are estimated to be $30.3 billion in 1995.
This is almost entirely direct spending by the Federal
Government, and is largely for the space programs, the
National Science Foundation, health research, and re
search for nuclear and non-nuclear energy facilities.
Conduct o f education and training.—Outlays for
the conduct of education and training are estimated
to be $44.6 billion in 1995. These outlays add to the
stock of human capital by developing a more skilled
and productive labor force. Grants to State and local
governments for this category are estimated to be $25.6
billion in 1995, more than half of the total. They are
primarily for the disadvantaged and the handicapped,
and for vocational and adult education. Direct education
and training outlays by the Federal Government are
estimated to be $19.0 billion in 1995. Programs in this
category are primarily aid for higher education through
student financial assistance, loan subsidies, the veter
ans GI bill, and health training programs.
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 for research and development are in
the categories for physical investment and the conduct
of research and development.
Miscellaneous Investment Outlays
In addition to the categories of major Federal invest
ment, several miscellaneous categories of investment
outlays are shown in Table 8-1. These items, all for
physical investment, are generally unrelated to improv
ing Government operations or enhancing economic ac
tivity. Sales of commodity inventories are estimated to
exceed purchases by $0.2 billion in 1995. Outlays in
this category are for the purchase or sale of agricultural
products pursuant to farm price support programs, pur
chases of oil for the strategic petroleum reserve, and
other purposes.
Outlays for other miscellaneous physical investment
are estimated to be $5.5 billion in 1995. This category
110
ANALYTICAL PERSPECTIVES
includes primarily conservation programs and assets ac
quired and sold as collateral on defaulted loans. These
outlays are entirely for nondefense, direct Federal
spending.
Trends in Federal Investment Outlays
In real terms, Federal investment outlays rose from
the mid-1970s to the mid-1980s and have held roughly
steady until now. Table 8-2 shows the major categories
of Federal investment since 1970 in constant 1987 dol
lars.
The overall trend in Federal investment conceals two
very different patterns for defense and nondefense out
lays. Through the 1970s, annual defense investment
declined in real terms from $92.6 to $66.4 billion, an
average annual decrease of 3.3 percent. The defense
buildup of the early 1980s reversed this trend, with
defense investment growing at a rate of 9.7 percent
annually through 1987. Since then, in response to budg
etary pressures and the end of the Cold War, defense
investment has again begun to decline. This decline
continues in the 1995 budget, with defense investment
reduced by 19.2 percent from 1993 levels. At the same
time, defense R&D, with its greater potential to spill
over into the general economy, will make up an increas
ing share of defense investment. While declining in real
terms, defense R&D is estimated to increase to 37 per
cent of total defense investment in 1995, up from 32
percent in 1993.
Nondefense investment rose steadily in the 1970s,
at an annual rate of 2.4 percent, and was then cut
sharply in the early 1980s. In the late 1980s, non
defense investment began to increase again in real
terms. However, only in the last few years has non
defense investment reached its level of the end of the
1970s. Its share of GDP is still lower than in 1970:
non-defense investment was 2.6 percent of GDP in
1970, while in 1993 it was only 1.9 percent.
TABLE 8-2. MAJOR FEDERAL INVESTMENT OUTLAYS IN CONSTANT PRICES
(In billions of constant 1987 dollars)
Physical Investment
Total
Investment
Research and Development
Direct Federal
Total
Total
National
Defense
Grants
Nondefense
Total
National
Defense
Nondefense
Education
and Training
1970
1971
1972
1973
1974
......................................................................
......................................................................
......................................................................
......................................................................
......................................................................
168.2
159.7
156.7
149.8
142.0
98.6
88.6
83.4
76.4
72.0
76.7
66.1
60.9
54.0
49.7
69.4
58.0
51.5
44.9
40.5
7.3
8.1
9.4
9.2
9.3
21.9
22.5
22.6
22.4
22.3
43.8
42.3
42.6
42.4
40.3
23.2
22.3
23.1
22.7
21.7
20.6
20.1
19.5
19.6
18.5
25.5
28.4
30.0
30.1
29.0
1975
1976
1977
1978
1979
......................................................................
......................................................................
.......................................................................
......................................................................
......................................................................
145.0
149.2
148.5
154.2
158.0
50.3
49.3
49.4
50.8
55.2
41.0
40.0
39.6
40.0
43.9
9.3
9.4
9.8
10.7
11.3
20.6
24.5
27.9
29.0
27.9
39.0
39.0
38.7
41.2
40.7
20.4
19.2
19.6
20.3
18.7
1980
1981
1982
1983
1984
.......................................................................
.......................................................................
.......................................................................
......................................................................
.......................................................................
161.6
164.7
156.2
160.6
174.4
71.0
73.9
77.3
79.7
83.1
83.4
85.2
86.0
92.8
103.7
55.7
59.8
63.5
70.2
79.2
45.7
49.6
54.3
61.7
68.9
10.0
10.2
9.2
8.5
10.3
27.7
25.4
22.5
22.6
24.5
42.8
43.9
41.5
41.3
45.1
20.7
21.8
23.7
25.6
28.4
18.5
19.8
19.1
20.9
21.9
22.1*
22.2
17.8
15.6
16.8
34.4
35.7
32.0
32.9
34.2
35.7
35.2
28.4
26.3
25.4
1985
1986
1987
1988
1989
.......................................................................
.......................................................................
.......................................................................
.......................................................................
.......................................................................
190.9
200.5
203.8
204.4
209.5
114.8
120.5
125.9
124.4
125.5
89.1
94.0
102.1
100.4
101.9
77.0
82.6
89.5
86.1
88.6
12.1
11.4
12.5
14.3
13.3
25.8
26.5
23.8
24.1
23.7
50.1
53.7
53.3
54.1
56.1
32.2
36.7
37.1
36.7
37.3
17.9
17.0
16.2
17.4
18.8
25.9
26.3
24.7
25.9
27.8
1990 .......................................................................
1991 .......................................................................
1992 .......................................................................
1993 .......................................................................
1994 e s t ................................................................
1995 est...................................................................
210.2
207.5
207.7
204.8
197.1
192.0
125.4
124.7
122.6
115.0
109.5
103.5
100.6
99.3
96.0
87.6
80.0
72.9
86.5
84.1
76.9
69.4
59.2
52.3
14.1
15.2
19.2
18.1
20.9
20.6
24.9
25.4
26.5
27.4
29.4
30.6
56.5
52.8
53.4
54.9
53.3
53.1
36.4
32.2
31.5
32.4
30.5
30.0
20.1
20.6
21.9
22.5
22.9
23.1
28.2
29.8
31.4
34.6
34.0
35.0
8. FEDERAL INVESTMENT OUTLAYS AND CAPITAL BUDGETING
TABLE 8-3.
111
FEDERAL INVESTMENT OUTLAYS: DEFENSE AND NONDEFENSE PROGRAMS
(In millions of dollars)
1993 actual
1994
estimate
1995
estimate
1993 actual
1994
estimate
1995
estimate
Subtotal, purchase or sale of land and
structures ...........................................
3,876
421
1,211
3,733
707
995
3,217
739
1,037
Subtotal, construction and rehabilitation .
5,508
5,435
4,993
Acquisition of mayor equipment:
Procurement ...............................................
Atomic energy defense activities and other
69,929
781
60,629
509
55,003
403
Subtotal, acquisition of major equipment
70,710
61,138
55,406
874
835
675
662
688
Subtotal, major public physical investment .
50,209
56,700
59,371
Conduct of research and development:
General science, space, and technology:
NASA..........................................................
National Science Foundation......................
Other general science................................
7,004
1,753
789
6,999
1,983
757
7,071
2,001
708
Subtotal, general science, space, tech
nology ................................................
9,546
9,740
9,779
Energy.............................................................
Transportation:
Department of Transportation.....................
NASA..........................................................
2,517
2,470
2,708
420
1,084
611
1,206
700
1,227
Subtotal,transportation ...........................
1,504
1,816
1,927
9,063
1,380
9,713
1,235
10,391
1,165
Purchase or sale of land and structures........
-1 6
-9
Subtotal, major public physical investment .
76,201
66,564
60,390
Conduct of research and development
Defense military..............................................
Atomic energy and other................................
37,666
2,730
36,219
2,664
36,773
2,600
Subtotal, research and development..........
40,396
38,883
39,373
Health:
National Institutes of Health........................
All other health...........................................
Conduct of education and training (civilian) .......
39
42
39
Subtotal, health......................................
10,442
10,948
11,556
Subtotal, national defense investment............
116,637
105,489
99,803
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 ..........................................
Agriculture.......................................................
Natural resources and environment................
International affairs .........................................
All other research and development...............
1,129
1,762
318
764
1,142
1,825
345
895
1,172
1,958
174
1,043
16,203
3,058
141
2,022
107
3,198
763
3,242
2,166
445
3,226
1,232
2,868
1,134
677
675
351
672
17,602
2,367
389
1,958
133
3,746
1,118
3,688
2,869
556
4,558
1,459
3,450
1,386
653
1,355
367
978
18,277
3,033
338
1,798
122
4,136
1,354
3,631
2,241
450
5,679
876
3,212
2,327
688
1,278
368
973
Subtotal, research and development..........
27,982
29,181
30,316
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 ...........................................
13,523
14,458
1,840
5,006
4,035
15,184
10,563
2,012
5,428
5,507
14,846
11,809
2,031
5,890
6,044
Subtotal, education, training, and social
services..............................................
38,861
38,693
40,620
Income security...............................................
Veterans education, training, and rehabilitation
Health..............................................................
Intenational affairs ..........................................
Other education and training ..........................
109
1,091
775
212
838
128
1,424
825
239
963
148
1,518
1,015
235
1,019
Subtotal, construction and rehabilitation .
42,180
48,630
50,780
Acquisition of mayor equipment:
Air transportation........................................
Other transportation ...................................
Space flight research, and supporting ac
tivities .....................................................
General science and basic research..........
Veterans medical care...............................
Postal Service ............................................
General supply fund...................................
Other...........................................................
-9
1,269
Other physical assets (grants)........................
MAJOR FEDERAL INVESTMENT OUTLAYS:
NATIONAL DEFENSE:
Major public physical investment:
Construction and rehabilitation:
Military construction....................................
Family housing ...........................................
Atomic energy defense activities and other
Subtotal, conduct of education and training
41,885
42,272
44,555
Subtotal, nondefense investment....................
120,077
128,152
134,242
Total, major Federal investment outlays
236,713
233,641
234,045
2,204
336
2,050
371
2,141
484
1,371
39
594
516
371
652
1,347
94
800
649
555
667
1,301
96
670
1,033
526
817
ADDENDUM: Miscellaneous physical investment
Commodity inventories:
Agriculture ...........................................................
Strategic petroleum reserve and other ...............
-3 5 9
134
-4 1 6
-4 1 5
-7 1
-141
Subtotal, commodity inventories .....................
-2 2 5
-831
-2 1 2
Subtotal, acquisition of major equipment
6,085
6,534
7,068
Other physical assets (direct).................................
5,578
5,751
5,501
Purchase or sale of land and structures
International affairs.....................................
Domestic.....................................................
4
1,265
4
870
4
831
Subtotal, misc. physical investment...........
5,354
4,920
5,290
Total investment outlays, including misc. ..
242,067
238,561
239,335
112
ANALYTICAL PERSPECTIVES
TABLE 8-4.
FEDERAL INVESTMENT OUTLAYS: GRANT AND DIRECT FEDERAL PROGRAMS
(In millions of dollars)
1993 actual
1994
estimate
1995
estimate
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....................................
National defense ........................................
Other construction......................................
16,177
3,058
19
1,931
2,358
170
3,198
524
2,929
60
69
17,574
2,367
43
1,850
2,637
254
3,746
788
4,049
79
192
18,253
3,033
35
1,710
2,570
119
4,136
956
4,834
4
169
Subtotal, construction and rehabilitation .
30,493
33,580
35,818
Other physical assets.....................................
675
662
688
Subtotal, major public physical capital .......
31,169
34,242
36,506
Conduct of research and development...............
Conduct of education and training:
Elementary, secondary, and vocational edu
cation ..........................................................
Higher education.............................................
Research and general education aids............
Training and employment................................
Social services................................................
National defense (civilian) ..............................
Other...............................................................
344
429
672
12,763
119
315
3,982
3,862
14,341
105
312
4,327
5,264
496
528
13,964
91
306
4,747
5,790
3
713
Subtotal, conduct of education and training
21,543
24,884
Subtotal, grants for investment.......................
53,055
59,555
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 facili
ties ..........................................................
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 ac
tivities .....................................................
Energy ........................................................
Postal Service ............................................
Air transportation........................................
Water transportation (Coast Guard)...........
Hospital and medical care for veterans.....
1993 actual
1994
estimate
1995
estimate
General supply fund....................................
Other...........................................................
5,448
351
1,232
2,038
1,287
526
723
76,794
67,672
62,474
Purchase or sale of land and structures:
National defense ........................................
International affairs......................................
Domestic.....................................................
-1 6
4
1,265
-9
4
870
-9
4
831
Subtotal, purchase or sale of land and
structures ...........................................
1,253
865
826
Subtotal, major public physical investment .
95,242
89,022
83,254
Conduct of research and development:
National defense.............................................
International affairs.........................................
Domestic .........................................................
40,396
318
27,321
38,883
345
28,407
39,373
174
29,470
Subtotal, conduct of research and develop
ment .......................................................
68,034
67,635
69,017
25,614
Conduct of education and training:
Elementary, secondary, and vocational edu
cation ..........................................................
Higher education.............................................
Research and general education aids............
Training and employment................................
Health..............................................................
Veterans education, training, and rehabilitation
National defense.............................................
International affairs .........................................
Other ...............................................................
760
14,339
1,525
1,024
775
1,091
33
212
623
843
10,457
1,699
1,101
825
1,424
36
239
805
882
11,718
1,725
1,143
845
1,518
36
235
879
62,793
Subtotal, conduct of education and training
20,382
17,429
18,981
Subtotal, direct Federal major investment out
lays .............................................................
6
555
452
Subtotal, acquisition of mayor equipment
6
371
535
183,658
174,086
171,252
Total, major Federal investment outlays
236,713
233,641
234,045
345
5,356
367
1,459
2,675
1,548
3,450
613
4,989
368
876
2,168
1,466
3,212
536
ADDENDUM: Miscellaneous physical investment:
Commodity inventories:
Emergency energy preparedness........................
Commodity Credit Corporation............................
Other ....................................................................
137
-3 5 9
-3
76
-4 1 6
-4 9 0
9
-7 1
-1 5 0
1,079
677
385
675
810
1,314
653
527
1,355
1,169
2,268
Subtotal, commodity inventories .....................
-2 2 5
-831
-2 1 2
17,195
Other physical investment:
Department of Agriculture:
Conservation reserve program........................
Other ...............................................................
20,485
19,955
1,690
3,542
1,819
3,782
1,808
3,551
Subtotal, Department of Agriculture ...........
5,231
5,601
5,359
2,868
688
524
1,278
1,582
70,710
39
61,138
94
55,406
96
Department of the Interior ...................................
Other ....................................................................
65
282
48
102
60
83
1,371
231
516
2,204
222
594
1,347
367
649
2,050
219
800
1,301
346
1,033
2,141
232
670
Subtotal, other physical capital.......................
5,578
5,751
5,501
Subtotal, miscellaneous physical invest
ment ...........................................................
5,354
4,920
5,290
Total Federal investment outlays, including
miscellaneous...........................................
242,067
238,561
239,335
113
8. FEDERAL INVESTMENT OUTLAYS AND CAPITAL BUDGETING
A key priority of the Administration is to accelerate
the restoration of domestic investment outlays. The
budget proposes dramatic increases in a number of
areas of investment. Full funding of the Intermodal
Surface Transportation Efficiency Act (ISTEA) of 1991
will enhance the ability of States to maintain and im
prove interstate and other major highways, while a 40
percent increase in mass transit formula capital grants
will provide critical support in addressing urban conges
tion and pollution. Clean water and safe drinking water
revolving funds will assist States in meeting the man
dates of the Clean Water Act and the Safe Drinking
Water Act.
In addition to these increases in physical investment,
the budget proposes a number of increases in the areas
of research and development and education and train
ing. These include new initiatives supporting develop
ment of a national information infrastructure, a 21 per
cent expansion of Head Start funding, and a strength
ened and integrated JOBS program. These proposals
in physical and other investment, along with the pro
grams funded in the 1994 appropriations acts, will in
crease the share of Federal outlays devoted to non
defense investment from 8.5 percent in 1993 to 8.8
percent in 1995.
Detailed Tables
Tables 8-3 and 8-4 present further detail on the
composition of physical and other investment outlays.
They provide two basic classifications. The first sepa
rates national defense from nondefense investment out
lays, and the second separates grants to State and local
governments for investment from direct Federal invest
ment outlays.
Additional data about trends in Federal investment
outlays can be found in the separate Historical Tables
volume of the budget. Section 9 of that volume contains
data on physical investment, and Section 10 contains
data on the conduct of research and development and
the conduct of education and training.
Part II—ALTERNATIVE CAPITAL BUDGET PRESENTATIONS
A capital budget would separate Federal expenditures
into two categories: spending for investment and all
other spending. In this sense, the previous section pro
vided a capital budget for the Federal Government, dis
tinguishing outlays that yield long-term benefits from
all others. But alternative capital budget presentations
have been suggested, two of which are described in
this section.
The Federal budget finances investment for two quite
different types of reasons. It invests in capital—such
as office buildings, computers, and weapons systems—
that primarily contributes to its ability to provide gov
ernmental services to the public; some of these services,
in turn, are designed to increase economic growth. And
it invests in capital—such as highways, education, and
research—that contributes more directly to the eco
nomic growth of the Nation. Most of the capital in
the second category, unlike the first, is not owned or
controlled by the Federal Government. In the discussion
that follows, the first is called “Federal capital” and
the second is called “national capital.” Table 8-5 com
pares total Federal investment as defined in this chap
ter with investment in national capital and with the
part of investment in Federal capital that the National
Performance Review (NPR) singled out for special at
tention.
Capital budgets and other changes in Federal budget
ing have been suggested for both types of investment.
Some of these proposals are discussed below and illus
trated by alternative capital budget presentations.
Investment in Federal Capital
The goal of investment in Federal capital is to deliver
Government services as efficiently and effectively as
possible. The Congress allocates resources to Federal
agencies to accomplish a wide variety of programmatic
goals. Because these goals are diverse and most are
not measured in dollars, they are difficult to compare
with each other. Policy judgments must be made as
to their relative importance.
Once amounts have been allocated for one of these
goals, however, analysis may be able to assist in choos
ing the most efficient and effective means of delivering
service. This is the context in which decisions are made
on the amount of investment in Federal capital. For
example, budget proposals for the Department of Jus
tice must consider whether to increase the number of
FBI agents, the amount of justice assistance grants
to State and local governments, or the number of pris
ons in order to accomplish the department’s objectives.
The optimal amount of investment in Federal capital
derives from these decisions. There is no efficient target
for total investment in Federal capital as such.
The universe of Federal capital encompasses federally
owned fixed assets. It excludes Federal grants to States
for infrastructure, such as highways, and it excludes
intangible investment, such as education and research.
Investment in Federal capital in 1995 is estimated to
be $83.3 billion, or 36 percent of the total Federal in
vestment outlays shown in table 8-1. Of the investment
in Federal capital, 73 percent is for defense and 27
percent for nondefense purposes.
114
ANALYTICAL PERSPECTIVES
TABLE 8-5. ALTERNATIVE DEFINITIONS OF INVESTMENT OUTLAYS, 1995
(In millions of dollars)
Al Federal
investment
Construction and rehabilitation:
Grants:
Transportation....................................................................................................
Natural resources and environment..................................................................
Community and regional development..............................................................
Housing assistance............................................................................................
Other grants ......................................................................................................
Direct Federal:
National defense ................................................................................................
International affairs.............................................................................................
General science, space, and technology..........................................................
Natural resources and environment ..................................................................
Energy ...............................................................................................................
Transportation....................................................................................................
Veterans and other health facilities...................................................................
Postal Service ...................................................................................................
Federal buildings fund........................................................................................
Other construction.............................................................................................
NPR Federal
capital
23,031
2,689
5,092
4,834
861
National
capital
23,031
2,659
933
98
4,989
368
876
3,634
3,212
536
2,268
688
1,278
2,106
2,268
688
1,278
202
Total construction and rehabilitation .............................................................
Acquisition of major equipment (direct):
National defense....................................................................................................
General science, space, and technology ..............................................................
Energy....................................................................................................................
Postal Service........................................................................................................
Air transportation ...................................................................................................
Water transportation ...............................................................................................
Hospital and medical care for veterans.................................................................
General supply fund ...............................................................................................
Other ......................................................................................................................
56,461
6,051
38,095
96
1,397
346
1,033
2,141
232
670
Total major equipment .......................................................................................
Purchase or sale of land and structures ...................................................................
62,474
826
2,787
564
6,102
Total physical investment.......................................................................................
Research and development:
Defense..................................................................................................................
Nondefense............................................................................................................
119,761
9,401
44,197
55,406
1,397
346
1,033
2,141
232
670
526
723
739
368
436
72
1,033
670
526
462
39,373
30,316
876
3,333
3,212
536
2,268
688
462
283
1,139
29,545
Total research and development.......................................................................
69,690
30,684
44,595
Education and training............................................................................................... 44,127
Total investment outlays............................................................................................
NPR Recommendations
The recommendation by NPR that the budget “recog
nize the special nature and long-term benefits of invest
ments through a separate capital budget” 2 takes this
perspective and refines it further. For the purpose of
a capital budget, NPR would limit the coverage of in
vestment to include only a small part of the Federal
capital as defined above. It would include only common
commercial-type products used to support the delivery
of Federal services: office buildings, computers, hos
pitals, automobiles, and the like. This excludes not only
investment in military weapons systems and bases, but
also non-defense special purpose capital such as space
stations and dams.
The NPR recommended partioning the unified budget
into a capital budget, an operating budget, and a cash
budget, to be implemented fully in the 1996 budget.
2Creating A Government That Works Better & Costs Less, Report of the National Perform
ance Review, September 7, 1993, p. 111.
234,045
9,401
119,008
A capital budget process of this kind, utilizing the oper
ating budget and a cash budget, could improve the Gov
ernment’s fixed asset decisions. To construct the capital
budget—the explicit plan for cash outlays for fixed as
sets over a period of years—agencies would have to
make systematic long-range plans for their fixed asset
acquisitions and these plans would then have to be
incorporated in the budget process. This would help
to achieve the NPR goal of “steer[ing] our scarce re
sources toward the most economical means of acquisi
tion of the most needed assets.” 3
For capital budgeting to be most effective, however,
it needs to be accompanied by several related improve
ments that NPR also recommends to the planning and
budgeting process for fixed assets. OMB plans to put
them into effect for the 1996 budget.
• A long-term planning and analysis process for
fixed asset acquisitions will be established to de3 Ibid.
115
8. FEDERAL INVESTMENT OUTLAYS AND CAPITAL BUDGETING
termine agencies' current and prospective needs—
extending the present short-term focus of budget
requests over the full 5-year budget horizon. Guid
ance will be provided to assist agencies in evaluat
ing choices and setting priorities. The process will
include assessing the cost-effectiveness of fixed as
sets in fulfilling agency missions, determining the
least-cost method of asset acquisition, life-cycle
planning for the acquisition and management of
fixed assets, and analysis of risk. Guidance will
also be provided to improve agencies' accountabil
ity for and management of their fixed assets; this
will complement the planning process for new ac
quisitions.
• The budget process will incorporate the results
of agency plans, so that agency planning can be
implemented in an orderly way within the frame
work of setting priorities for the Federal Govern
ment. Fixed asset acquisitions would be distin
guished from other spending in the budget review
process so the long-term nature of the benefits
and the time pattern of the cash outlays can be
taken into account. Cross-cutting analysis of fixed
asset proposals among different agencies would
help determine which acquisitions had the highest
priority.
• More flexible funding mechanisms will be adopted,
where appropriate. Procedures will be developed
to ensure that the rules of the annual budget proc
ess will not prevent fixed assets that have been
justified from being acquired by the most economi
cal means. In particular, the rules will be designed
to accommodate temporary “spikes” in agency
spending when they are caused by needed acquisi
tions of fixed assets.
Table 8-6 illustrates a capital budget for fixed assets
under the NPR coverage of investment. It is accom
panied by an operating budget and a total budget. The
operating budget consists of all expenditures except
those included in the capital budget, plus depreciation
on the stock of assets that corresponds to those pur
chased through the capital budget. The capital budget
consists of expenditures for fixed assets and, on the
income side of the account, depreciation. The total
budget is the present unified budget, largely cash based
and often called a “cash budget,” which records all out
lays and receipts of the Federal Government. It consoli
dates the operating and capital budgets by adding them
together and netting out depreciation as an
intragovemmental transaction. The figures in table 8-6
and the other tables of this section are rough estimates
and intended to be illustrative.
Budget Discipline and a Capital Budget
The total budget or cash budget, as the NPR stated,
“reflects the effect of both the capital and the operating
budget on the economy.” As NPR concluded: “Therefore,
TABLE 8-6. CAPITAL, OPERATING, AND UNIFIED (CASH)
BUDGETS: NPR DEFINITION OF CAPITAL, 19951
(In billions of dollars)
Operating Budget
Receipts.......................................................................................................
Expenses:
Depreciation............................................................................................
Other.......................................................................................................
1,354
Subtotal, expenses.............................................................................
1,514
Surplus or deficit ( - ) ............................................................................
-1 6 0
4
1,510
Capital Budget
Income: depreciation...................................................................................
Capital expenditures ...................................................................................
Surplus or deficit ( - ) ............................................................................
4
9
-5
Unified (Cash) Budget
Receipts.......................................................................................................
Outlays ........................................................................................................
1,354
1,519
Surplus or deficit ( - ) .............................................................................
-1 6 5
1Historical data to e6lmate the capital stocks and calculate depredafion are not readiy avaidbte for to
NPR definiion of capital. Depreciation estimates were based on the assumpion hat such ouflays were a con
stant percentage of tieir larger categories over time. They are also subiect to tie limitations discussed in Part
III of this chapter.
the discipline of the cash outlay caps in the Budget
Enforcement Act must be maintained.” 4
The NPR recommendation thus differs from some
proposals for a capital budget, which would effectively
dispense with the unified budget and make expenditure
decisions on fixed asset acquisitions in terms of the
operating budget instead. The operating budget would
include only the depreciation on the proposed purchase
of a fixed asset. For example, suppose that an agency
proposed to buy a $50 million building at the beginning
of the year with an estimated life of 25 years and
with depreciation calculated according to the straightline method. Operating expense in the budget year
would increase by only $2 million, or 4 percent of the
asset cost. The same amount of depreciation would be
recorded as an increase in operating expense for each
year of the asset’s life.
Recording the annual depreciation in the operating
budget each year would provide little control over the
decision about whether to invest in the first place. Most
Federal investments are sunk costs and as a practical
matter cannot be recovered by selling or renting the
asset. At the same time, there is a significant risk
that the need for a fixed asset may change over a
period of years, because either the need was not perma
nent, it was initially misjudged, or other needs became
more important. Since the cost is sunk, however, control
cannot be exercised later on by comparing the annual
benefit of the asset services with depreciation and inter
est and then selling the asset if its annual services
are not worth this expense. Control can only be exer
cised when the Government commits itself up-front to
the full sunk cost. By spreading the real cost of the
4lbicL
116
project over time, however, use of the operating budget
for expenditure decisions would make the budgetary
cost of the fixed asset appear very cheap when decisions
were being made that compared it to alternative ex
penditures. As a result, there would be an incentive
to purchase fixed assets with little regard for need,
and also with little regard for the least-cost method
of acquisition. NPR was therefore wise to conclude that
budget control should be exercised through the unified
cash budget and the caps on its spending.
A budget is a financial plan for allocating resources—
deciding how much the Federal Government should
spend in total, program by program, and for the parts
of each program. The budgetary system provides a proc
ess for proposing policies, making decisions, implement
ing them, and reporting the results. The budget needs
to measure costs accurately so that decision makers
can compare the cost of a program with its benefits,
the cost of one program with another, and the cost
of alternative methods of reaching a specified goal.
These costs need to be fully included in the budget
up front, when the spending decision is made, so that
executive and congressional decision makers have the
information and the incentive to take the total costs
into account.
The unified budget does this for investment. By re
cording investment on a cash basis, it causes the total
cost to be compared up front in a rough and ready
way with the total expected future net benefits. Since
the budget measures only cost, the benefits with which
these costs are compared, based on policy makers’ judg
ment, must be presented in supplementary materials.
Such a comparison of total cost with benefits is consist
ent with the formal method of cost-benefit analysis of
capital projects in government, in which the full cost
of a fixed asset as the cash is paid out is compared
with the full stream of future benefits (all in terms
of present values).5 This comparison is also consistent
with common business practice, in which capital budg
eting decisions for the most part are made by compar
ing cash flows. The cash outflow for the full purchase
price is compared with expected future cash inflows
either through a relatively sophisticated technique of
discounted cash flows—such as net present value or
internal rate of return—or through cruder methods
such as payback periods.6 Regardless of the specific
technique adopted, it usually requires comparing future
returns with the entire cost of the asset up front—
not spread over time through annual depreciation.7
5For example, see Edward M. Gramlich, A Guide to Benefit-Cost Analysis (2nd ed.; Engle
wood Clifts: Prentice Hall, 1990), chap. 6; or Joseph E. Stiglitz, Economics o f the Public
Sector (New York: Norton, 1986), chap. 10. This theory is applied in formal OMB instructions
to Federal agencies in OMB Circular No. A-94, “Guidelines and Discount Rates for BenefitCost Analysis of Federal Programs” (October 29, 1992). GAO, Discount Rate Policy, GAQ/
OCE-17.1.1 (May 1991) discusses the appropriate discount rate for such analysis but not
the foundation of the analysis itself, which is implicitly assumed.
6 For a full textbook analysis of capital budgeting techniques in business, see Harold
Bierman, Jr., and Seymour Smidt, The Capital Budgeting Decision (7th ed.; New York:
Macmillan, 1988). Shorter analyses may be found, for example, in Charles T. Horngren
and George Foster, Cost Accounting (6th ed.; Englewood Cliffs: Prentice-Hall, 1987), chap.
19 and 20; and in Surendra S. Singhvi, “The Capital Budgeting Process” and “The Capital
Expenditure Evaluation Methods,” chap. 19 and 20 in Robert Rachlin and H.W. Allen
Sweeny, Handbook o f Budgeting (3rd ed.; New York: Wiley, 1993).
7A recent survey of business practice finds that such techniques are predominant. See
Glenn H. Petry and James Sprow, “The Theory and Practice of Finance in the 1990b,’*
The Quarterly Review o f Economics and Finance, vol. 33 (Winter 1993), pp. 359-82. Petry
ANALYTICAL PERSPECTIVES
Practice Outside the Federal Government
The proponents of making investment decisions on
the basis of an operating budget with depreciation have
sometimes claimed that this is the common practice
outside the Federal Government. However, while the
practice of others may differ from the Federal budget
and the terms “capital budget” and “capital budgeting”
are often used, these terms do not normally mean that
fixed asset acquisitions are decided on the basis of an
nual depreciation cost.
Private business firms call their investment deci
sion making process “capital budgeting,” and they
record the resulting planned expenditures in a “capital
budget.” However, decisions are normally based on up
front comparisons of cash outflows with cash inflows,
and the capital budget records the period-by-period
amounts of cash outflows for capital projects.8 This sup
ports the business’s goal of deciding upon and control
ling the use of its resources.
The cash-based focus of business budgeting for capital
is in contrast to business financial statements—the in
come statement and balance sheet—which use accrual
accounting for a different purpose, namely to record
how well the business is meeting its objectives of earn
ing profit and accumulating wealth for its owners. For
this purpose, the income statement shows the profit
in a year from earning revenue net of the expenses
incurred. These expenses include depreciation, which
is an allocation of the cost of fixed assets over their
estimated useful life. With similar objectives in mind,
the Federal Accounting Standards Advisory Board
(FASAB) is considering the appropriate use of deprecia
tion as a measure of expense in financial statements
and cost accounting for Federal agencies.
Business borrowing to finance investment is con
strained in ways that Federal borrowing is not. The
amount that a business borrows is limited by its own
profit motive and the market’s assessment of its capac
ity to repay. The greater a business’s indebtedness,
other things equal, the more risky is any additional
borrowing and the higher is the cost of funds it must
pay. Since the profit motive ensures that a business
will not want to borrow unless the expected return
is at least as high as the cost of funds, the amount
of investment that a business will want to finance is
limited; and it has an incentive to borrow only for
projects where the expected return is as high or higher
than the cost of funds. No such constraint limits the
Federal Government—either in the total amount of its
borrowing for investment, or in its choice of which as
sets to buy—because of its sovereign power to tax. It
can tax to pay for investment; and, if it borrows, its
power to tax ensures that the credit market will judge
U.S. Treasury securities free from any risk of default
even if it borrows “excessively” or for projects that do
not seem worthwhile.
and Sprow also verify that such techniques are recommended by the most widely used
textbooks in managerial finance.
* A business capital budget is depicted in Glenn A. Welsch et ai., Budgeting: Profit Plan
ning and Control (5th ed.; Englewood Cliffs: Prentice Hall, 1988), pp. 396-99.
117
8. FEDERAL INVESTMENT OUTLAYS AND CAPITAL BUDGETING
Most States also have a “capital budget,” but the
operating budget is not like the operating budget envis
aged by proponents of making Federal investment deci
sions on the basis of depreciation. State capital budgets
differ widely in many respects but generally relate some
of the State’s purchases of fixed assets to borrowing
and other earmarked means of financing. For the debtfinanced portion of investment, the interest and repay
ment of principal are usually recorded in the operating
budget. State operating budgets are not charged for
assets purchased in the capital budget but financed
by grants or taxes. No State operating budget is
charged for depreciation.9
State borrowing to finance investment, like business
borrowing, is subject to limitations that do not apply
to Federal borrowing. Like business borrowing, it is
constrained by the credit market’s assessment of the
State’s capacity to repay. Furthermore, it is usually
designated for specified investments, and it is almost
always subject to constitutional limits or referendum
requirements.
Other developed nations tend to show a more sys
tematic breakdown between investment and operating
expenditures within their budgets than does the United
States, even while they record capital expenditures on
a cash basis within the same budget totals. For exam
ple, the United Kingdom shows the capital spending
within each agency total and displays the sum of cap-
ital spending for the government as a whole. However,
a survey by the Congressional Budget Office found that
all developed nations except Chile and New Zealand
budget on a cash basis;10 and New Zealand requires
the equivalent of appropriations for the full cost up
front before a department can make net additions to
its fixed assets. Some countries—including Sweden,
Denmark, and Finland—formerly had separate capital
budgets but abandoned them a number of years ago.1
1
Conclusions
It is for reasons such as these that the General Ac
counting Office has recently issued a report that criti
cized budgeting for capital in terms of depreciation.
Although the criticisms were in the context of what
is termed “national capital” in this chapter, they apply
equally to “Federal capital.”
“Depreciation is not a practical alternative for the Congress
and the administration to use in making decisions on the
appropriate level of spending intended to enhance the na
tion’s long-term economic growth for several reasons. Cur
rently, the law requires agencies to have budget authority
before they can obligate or spend funds. Unless the full
amount of budget authority is appropriated up front, the
ability to control decisions when total resources are commit
ted to a particular use is reduced. Appropriating only annual
depreciation, which is only a fraction of the total cost of
an investment, raises this control issue.” 12
Investment in National Capital
A Target for National Investment
The Federal Government’s investment in national
capital has a much broader and more varied form than
its investment in Federal capital. The Government’s
goal is to support and accelerate sustainable economic
growth for the Nation as a whole and in some instances
for specific regions or groups of people. The Govern
ment’s investment concerns for the Nation are two-fold:
• The effect of its own investment in national cap
ital on the output and income that the economy
can produce. Reducing expenditure on consump
tion and increasing expenditure on investment
that supports economic growth are a major prior
ity for the Administration. In both the 1994 and
the 1995 budgets, it has reordered priorities by
proposing more investment and less other expendi
ture within the budget constraints. The Congress
is generally supportive of this shift.
• The effect of Federal taxation, borrowing, and
other policies on private investment. The Adminis
tration’s deficit reduction policy has reduced inter
est rates and thereby brought about an expansion
of private investment.
In its recent report, Incorporating an Investment
Component in the Federal Budget, the General Account
ing Office recommended establishing an investment
component within the unified budget—but not a sepa
rate capital budget or the use of depreciation—for this
type of investment.13 GAO defines this investment as
“federal spending, either direct or through grants, that
is directly intended to enhance the private sector’s long
term productivity.” 14 To increase investment—both
public and private—GAO recommends establishing tar
gets for the level of Federal investment and for a declin
ing path of unified budget deficits over time.15 Such
a target for investment in national capital would focus
attention on policies for growth, encourage a conscious
9The characteristics of State capital budgets were examined in a survey of Stale budget
officers for all 50 States in 1986. See Lawrence W. Hush and Kathleen PerofT, “The Variety
of State Capital Budgets: A Survey” Public Budgeting and Finance (Summer 1988), pp.
67-79. More detailed results are available in an unpublished OMB document, “State Capital
Budgets” (July 7, 1987). Two GAO reports examined some of the same issues and reached
similar conclusions on the issues in question. See Budget Issues: Capital Budgeting Practices
in the States, GAO/AFMD-86—
63FS (July 1986) and Budget Issues: State Practices for Fi
nancing Capital Projects, GAO/AFMD-89-64 (July 1989).
10Robert W. Hartman, Statement before the Subcommittee on Economic Development,
Committee on Public Works and Transportation, U.S. House of Representatives (May 26,
1993). Hartman stated: “to our knowledge, only two developed countries, Chile and New
Zealand, recognize depreciation in their budgets.”
1 The budgets in Sweden, Great Britain, Germany, and Prance are described in GAO,
1
Budget Issues: Budgeting Practices in West Germany, France, Sweden, and Great Britain,
GAO/APMD-87-8PS (November 1986). Sweden had separate capital and operating budgets
from 1937 to 1981 and a total combined budget from 1956 onwards. The reasons for abandon
ing the capital budget are discussed briefly in the GAO report and more extensively by
a government commission established to recommend changes in the Swedish budget system.
See Sweden, Ministry of Finance, Proposal for a Reform o f the Swedish Budget System:
A Summary of the Report o f the Budget Commission Published by the Ministry o f Finance
(Stockholm, 1974), chapter 10.
w Budget Issues: Incorporating an Investment Component in the Federal Budget, GAO/
AIMD-94-40 (November 1993), p. 11. GAO had made the same recommendation in earlier
reports but with less extensive analysis than in this report
13Ibid., pp. 1-2, 9-10, and 15.
n Ibid., pp. 1 and 5.
15Ibid, pp. 2 and 13-16.
118
ANALYTICAL PERSPECTIVES
decision about the overall level of growth-enhancing in
vestment, and make it easier to set spending priorities
in terms of policy goals for aggregate formation of na
tional capital.
Table 8-7 illustrates the unified budget reorganized
as GAO recommends to have a separate component for
investment in national capital. This component is
roughly estimated to be $119 billion in 1995. It includes
infrastructure outlays financed by Federal grants to
State and local governments, such as highways and
sewer projects, as well as direct Federal purchases of
infrastructure, such as electric power generation equip
ment. It also includes intangible investment for
nondefense research and development, for basic re
search financed through defense, and for education and
training. Much of this consists of grants and credit
assistance to other governments, nonprofit organiza
tions, or individuals. Military investment and fixed as
sets in the NPR capital budget are excluded, because
that investment does not primarily enhance economic
growth.
TABLE 8-7. UNIFIED (CASH) BUDGET WITH NATIONAL
INVESTMENT COMPONENT
(In billions of dollars)
Operating Budget
Receipts.......................................................................................................
Expenses:
Depreciation 2 ..........................................................................................
Other.......................................................................................................
1,329
Subtotal, expenses..............................................................................
1,468
Surplus or deficit ( —) .............................................................................
—139
68
1,400
Capital Budget
Income:
Depredation2 ..........................................................................................
Earmarked tax receipts 3 .........................................................................
68
24
Subtotal, income..................................................................................
Capital expenditures ....................................................................................
93
119
Surplus or deficit ( —) .............................................................................
-2 7
Unified (Cash) Budget
Receipts ..................................................................................................
Outlays....................................................................................................
Receipts.....................
Outlays:
National investment
Other.....................
1,354
Subtotal, outlays
1,519
Surplus or deficit ( -
-165
119
1,400
A Capital Budget for National Investment
Table 8-8 roughly illustrates what a capital budget
and operating budget would look like under this defini
tion of investment—although it must be emphasized
that this is not GAO’s recommendation. Some pro
ponents of a capital budget would make spending deci
sions within the framework of such a capital budget
and operating budget. But the limitations that apply
to the use of depreciation in deciding on investment
decisions for Federal capital apply even more strongly
for assets neither owned nor controlled by the Federal
Government, which is the case for most national invest
ments.
In addition to those basic limitations, the definition
of investment is more malleable for national capital
than Federal capital. Many programs promise long-term
intangible benefits to the Nation, and depreciation rates
are much harder to determine for intangible investment
such as research and education than they are for phys
ical investment such as highways and office buildings.
These and other definitional questions are hard to re
solve. The answers could significantly affect budget de
cisions, because they would determine whether the
budget would record all or only a small part of the
cost of a decision when policy makers were comparing
1,354
1,519
Surplus or deficit ( - ) .........................................................................
(In billions of dollars)
TABLE 8-8. CAPITAL, OPERATING, AND UNIFIED (CASH)
BUDGETS: NATIONAL CAPITAL, 19951
-1 6 5
’ For the purpose of Ms ilusirative table only, education and taring outlays are arbitrary depredated over
30 years by the staight-fine metiod. This differs from tie teatment of educalon and training elsewhere in this
chapter and in Chapter 2.
2 Excludes depredation on capital financed by tax receipts allocated to the capital budget
3 Consists of tax receipts of the highway and airport and airways rust funds.
the budgetary cost of a project with their judgment
of the benefits. The process of reaching an answer with
a capital budget would open the door to misrepresenta
tion, because there would be an incentive to make the
operating expenses and deficit look smaller by
classifying outlays as investment and using low depre
ciation rates. This would “justify” more spending by
the program or the Government overall.16
Borrowing to Finance a Capital Budget
A further issue raised by a capital budget for national
investment is the financing of capital expenditures.
Some have argued that the Government ought to bal
ance the operating budget and borrow to finance the
capital budget—capital expenditures less depreciation
(and less tax receipts earmarked to finance capital ex
penditure). The rationale is that if the Government bor
rows for net investment and the rate of return exceeds
the interest rate, the additional debt does not add a
burden onto future generations. Instead, the burden
of paying interest on the debt and repaying its principal
is spread over the generations that will benefit from
the investment. The additional debt is “justified” by
the additional assets.
This argument is at best a justification to borrow
to finance net investment, after depreciation is sub
tracted from gross outlays, not to borrow to finance
gross investment. To the extent that capital is used
up during the year, there are no additional assets to
16These problems are also pointed out in
ib ., pp. 11-12.
id
8. FEDERAL INVESTMENT OUTLAYS AND CAPITAL BUDGETING
justify additional debt. If the Government borrows to
finance gross investment, the additional debt exceeds
the additional capital assets. The Government is thus
adding onto the amount of future debt service without
providing the additional capital that would produce the
additional income needed to service that debt. This jus
tification, furthermore, requires that depreciation be
measured in terms of current cost, not historical cost,
because, when prices change, historical cost deprecia
tion will not measure the extent to which the capital
stock is used up each year.
Table 8-8 shows that the operating deficit, defined
to be net of current cost depreciation, would not be
a great deal less than the unified budget deficit—$139
billion in 1995 compared to $165 billion. Depreciation
(plus the earmarked excise taxes for highways and air
ports and airways) is high relative to gross new capital
outlays, because the stock of national capital has not
been growing very fast.
Even with depreciation calculated in current cost, the
rationale for borrowing to finance net investment is
not persuasive. The Federal Government, unlike a busi
ness or household, is responsible not only for its own
affairs but also for the general welfare of the Nation.
To maintain and accelerate national economic growth
and development, the Government needs to sustain pri
vate investment as well as its own national investment.
In the last decade, however, net national saving and
investment have been low, both by historical standards
and in comparison to the amounts needed to achieve
the Administration’s goals for accelerated growth. (For
the past trend in net national saving, see Chart 1-4
in Chapter 1 of the Budget.)
119
To the extent that the Government finances its na
tional investment in a way that results in lower private
investment, the net increase of total investment in the
economy is less than the increase from the additional
Federal capital outlays alone. The net increase in total
investment is significantly less if the Federal invest
ment is financed by borrowing than if it is financed
by taxation, because borrowing primarily draws upon
the saving available for private (and State and local)
investment whereas much of taxation comes out of pri
vate consumption instead. Therefore, the net effect of
Federal investment on economic growth would be re
duced if it were financed by borrowing. This would be
the result even if the rate of return on Federal invest
ment in national capital was higher than the rate of
return on private investment. For example, if a Federal
investment that yielded a 15 percent rate of return
crowded out private investment that yielded 10 percent,
the net social return would still be positive but it would
only be 5 percent.17
The 1994 budget was a bold proposal to increase the
saving available for private investment while also in
creasing Federal investment for national capital. Never
theless, current deficits still exceed net Federal invest
ment for national capital, and balancing the operating
budget in 1995 would require additional deficit reduc
tion of $139 billion—not a great deal less than bal
ancing the unified budget. As the NPR concluded, a
capital budget is not a justification to relax current
budget constraints.18 Any easing would undo the gains
from the $504.8 billion of deficit reduction achieved in
the Omnibus Budget Reconciliation Act of 1993.
Part III—FEDERALLY FINANCED CAPITAL STOCKS
Federal investment outlays, by definition, create a
“stock” of capital that is available in the future for
productive use. Each year, Federal investment spending
adds to the stock of capital, while wear and tear and
obsolescence reduce it. This section presents very rough
measures of three different kinds of capital stocks fi
nanced by the Federal Government: public physical cap
ital, research and development (R&D), and education.
Capital stocks are not estimated for training.
Federal outlays for physical assets add to the Na
tion’s capital stock of tangible assets, such as roads,
buildings, and aircraft carriers. These assets deliver
a flow of services over their lifetime. The capital depre
ciates as the asset is used, wears out, or becomes obso
lete.
Federal outlays for the conduct of research, develop
ment, and education add to an “intangible” asset, the
Nation’s stock of knowledge. Although financed by the
Federal Government, the research and development or
education can be performed by Federal or State govern
ment laboratories, universities and other nonprofit or
17The GAO report considered deficit financing of investment but did not recommend
it. See ibid., pp. 12-13.
18NPR, Creating a Government That Works Better & Costs Less, p. 111.
ganizations, or private industry. Research and develop
ment covers a wide range of endeavors, from the inves
tigation of subatomic particles to the exploration of
outer space; it can be “basic” research without particu
lar applications in mind, or it can have a highly specific
practical use. Similarly, education includes a wide vari
ety of programs, assisting people of all ages with basic
education through graduate studies. Like physical as
sets, the capital stocks of R&D and education provide
services over a number of years and depreciate as they
become outdated.
For this analysis, physical and R&D capital stocks
were estimated using the perpetual inventory method.
In this method, the estimates are based on the sum
of net investment in prior years, rather than, for exam
ple, a survey of the current market worth of the asset.
Each year’s Federal outlays are treated as gross invest
ment, adding to the capital stock; depreciation and dis
cards reduce the capital stock. Gross investment less
depreciation and discards is net investment.
120
ANALYTICAL PERSPECTIVES
In contrast, the estimate of the education stock is
based on the replacement cost method. Data on the
cumulative years of education in the U.S. population
are combined with data on the cost of education and
the Federal share of education spending to yield the
cost of replacing the Federal share of the Nation’s stock
of education.
Additional detail about the methods used to estimate
capital stocks appears in a methodological note at the
end of this section. It should be stressed that these
estimates are rough approximations, and provide a
basis only for making broad generalizations. Errors may
arise from incomplete data for historical outlays, impre
cision in the deflators used to express costs in 1987
dollars, and uncertainty about the useful lives and de
preciation rates of different types of assets.
The Stock o f Physical Capital
This section presents data on stocks of physical cap
ital assets and estimates of the depreciation on these
assets.
Trends.—Table 8-9 shows the value of the total net
federally financed physical capital stock since 1970, in
constant fiscal year 1987 dollars. The total stock held
constant through the 1970s and began rising in the
early 1980s. The stock reached a high of $1,380 billion
in 1993 and is estimated to increase to $1,387 billion
in 1994, remaining at roughly that level in 1995. In
1993, the national defense capital stock accounted for
$682 billion, or 49 percent of the total, and nondefense
stocks for $698 billion, or 51 percent of the total.
TABLE 8-9. NET STOCK OF FEDERALLY FINANCED PHYSICAL CAPITAL
(In billions of constant 1987 dollars)
Direct Federal Capital
Total
National
Defense
Total
Nondefense
Total
Water and
Power
Capital Rnanoed by Federal Grants
Other
Total
Transpor
tation
Community
and
Regional
Natural
Resources
Other
1970
1971
1972
1973
1974
......................................................
......................................................
......................................................
......................................................
......................................................
1,063
1,065
1,062
1,051
1,037
696
682
662
637
609
368
383
399
414
428
152
154
156
158
160
92
94
96
97
99
60
60
60
61
61
215
229
243
256
268
164
172
179
186
191
26
30
35
39
43
11
12
13
15
18
15
15
16
17
17
1975
1976
1977
1978
1979
......................................................
......................................................
......................................................
......................................................
......................................................
1,023
1,013
1,005
1,003
1,005
583
557
525
502
485
441
457
480
501
520
162
164
167
170
174
101
103
106
109
111
61
61
61
62
62
278
292
313
331
347
195
201
208
213
218
45
49
55
63
69
21
25
32
37
42
17
18
18
18
17
1980
1981
1982
1983
1984
......................................................
......................................................
......................................................
......................................................
......................................................
1,008
1,013
1,019
1,034
1,061
470
460
456
462
477
538
553
563
572
584
176
179
180
181
183
113
114
114
115
114
63
65
66
66
69
362
374
383
392
401
224
230
233
237
243
74
78
81
84
86
46
50
53
55
57
17
16
16
15
15
......................................................
......................................................
......................................................
......................................................
......................................................
1990 ......................................................
1991 ......................................................
1992 ......................................................
1993 ......................................................
1994 est..................................................
1995 est..................................................
1,100
1,143
1,189
1,230
1,270
501
531
566
595
625
599
612
623
635
645
187
189
193
199
203
114
114
114
114
114
72
76
79
84
89
412
422
430
437
443
250
257
263
268
273
89
90
91
92
92
59
61
62
64
64
14
14
13
13
14
1,306
1,339
1,365
1,380
1,387
1,386
649
670
681
682
670
652
656
668
684
698
717
735
207
212
221
228
237
245
114
114
115
115
116
116
93
98
106
113
121
129
449
456
463
471
480
489
278
283
288
294
299
305
92
92
92
92
92
92
65
66
66
66
66
66
14
15
17
19
22
26
1985
1986
1987
1988
1989
Real stocks of defense and nondefense capital show
very different trends. Nondefense stocks have grown
consistently since 1970, increasing from $368 billion
in 1970 to $698 billion in 1993. With the investments
proposed in the budget, nondefense stocks are esti
mated to grow further to $735 billion in 1995. During
the 1970s, the nondefense capital stock grew at an av
erage annual rate of 3.9 percent, above the rate of
growth of real GDP. In the 1980s, however, the growth
rate slowed to just over half that rate, or 2.0 percent
annually, less than GDP growth. More recently, the
rate of growth in nondefense stocks has accelerated.
Under this budget, the stock will grow at an estimated
2.6 percent annual rate from 1993 to 1995, closer to
the rate of growth in GDP.
National defense stocks began in 1970 at a relatively
high level, and declined steadily throughout the decade,
as depreciation from the Vietnam era exceeded new
investment in military construction and weapons pro
curement. Starting in 1982, however, a large defense
buildup began to increase the stock of defense capital.
By 1992, the defense stock had nearly equalled its level
at the height of the Vietnam War. In the last few
years, reduced defense investments due to the end of
the Cold War and the recognition of other pressing
national needs have once again begun to reduce the
121
8. FEDERAL INVESTMENT OUTLAYS AND CAPITAL BUDGETING
the stock for transportation is largely grants for high
ways, including the Interstate Highway System. The
growth in community and regional development stocks
occurred largely with the enactment of the community
development block grant in the early 1970s. The value
of this capital stock has been unchanged in the past
few years. The growth in the natural resources area
occurred primarily because of construction grants for
sewage treatment facilities. The value of this federally
financed stock has also been relatively stable since the
mid-1980s, although new investments proposed in the
budget for clean water and safe drinking water revolv
ing funds should increase this stock in coming years.
Table 8-10 shows nondefense physical capital outlays
both gross and net of depreciation for selected years
from 1960 to 1985 and annually from 1985 to 1995.
The net capital outlays in this table are the change
in the net nondefense physical capital stock displayed
in Table 8-9.
defense stock. The stock will decline by an estimated
2.7 percent in the 1995 budget.
Another trend in the Federal physical capital stocks
is the shift from direct Federal assets to grant-financed
assets. In 1960, 56 percent of federally financed
nondefense capital was owned by the Federal Govern
ment, and 44 percent was owned by State and local
governments but financed by Federal grants. Expansion
in Federal grants for highways and other state and
local capital, coupled with relatively slow growth in
direct Federal investments in agencies such as the Bu
reau of Reclamation and Corps of Engineers, shifted
the composition of the stock substantially. In 1993, 33
percent of the nondefense stock was owned by the Fed
eral Government and 67 percent by State and local
governments.
The growth in the stock of physical capital financed
by grants has come in several areas. The growth in
TABLE 8-10.
COMPOSITION OF GROSS AND NET FEDERAL AND FEDERALLY FINANCED NONDEFENSE PUBLIC PHYSICAL
INVESTMENT
(In billions of constant 1987 dollars)
Direct Federal investment
Total nondefense investnent
Investment financed by Federal grants
Composition of net investoient
Year
Gross
Five year intervals:
1960 .......................
1965 .......................
1970 .......................
1975 .......................
1980 .......................
1985 .......................
Annual data:
1990 .......................
1991 .......................
1992 .......................
1993 .......................
1994 est...................
1995 est...................
• $50 million or less.
Depreda
tion
Net
Gross
Depreda
tion
Net
Water
and
power
Composition of net investment
Gross
Deprecia
tion
Net
Other
Transpor
tation
(mainly
Nghways)
Commu
nity and
regional
develop
ment
Natural
resources
and envi
ronment
Other
21.0
29.9
29.2
29.9
37.7
37.8
8.3
11.1
14.5
17.6
20.1
23.6
12.7
18.9
14.7
12.3
17.6
14.2
7.3
10.5
7.3
9.3
10.0
12.1
4.6
5.6
6.6
7.3
7.6
8.3
2.7
4.9
0.7
2.0
2.4
3.7
1.4
2.1
1.0
2.0
1.4
0.1
1.3
2.8
-0 .3
-*
1.0
3.6
13.7
19.5
21.9
20.6
27.6
25.7
3.7
5.5
7.9
10.3
12.4
15.2
10.0
14.0
14.0
10.3
15.2
10.5
10.2
12.4
8.6
3.8
6.1
6.7
-0 .3
1.4
3.8
2.9
4.8
2.3
-0 .2
-*
0.4
3.3
4.8
1.9
0.3
0.3
1.2
0.3
-0 .5
-0 .4
38.8
40.5
45.5
45.5
50.2
51.2
27.8
28.7
29.8
30.9
32.1
33.3
11.1
11.8
15.7
14.6
18.1
17.9
14.1
15.2
19.2
18.1
20.9
20.6
9.7
10.1
10.6
11.2
11.7
12.3
4.3
5.1
8.5
7.0
9.2
8.3
0.2
-0 .2
1.1
-0.1
0.9
*
4.1
5.3
7.4
7.1
8.3
8.3
24.8
25.3
26.3
27.4
29.4
30.6
18.0
18.6
19.2
19.8
20.4
21.0
6.7
6.7
7.2
7.6
9.0
9.5
5.1
5.0
5.2
5.8
5.5
5.7
*
-0 .1
-0.1
-0 .4
0.2
0.4
0.7
0.8
0.7
-0 .2
-*
-0 .3
0.8
1.0
1.3
2.4
3.3
3.8
122
ANALYTICAL PERSPECTIVES
TABLE fr-11.
NET STOCK OF FEDERALLY FINANCED RESEARCH AND DEVELOPMENT i
(In billions of constant FY 1987 dollars)
National Defense
Fiscal Year
Total
Nondefense
Applied
Research and
Development
Basic
Research
Basic
Research
Total
Total Federal
Applied
Research and
Development
Basic
Research
Total
Researchand
Development
1970
1971
1972
1973
1974
..........................................................................
..........................................................................
..........................................................................
..........................................................................
..........................................................................
207
210
213
216
217
13
13
14
15
16
195
196
199
201
201
171
179
186
193
200
54
58
63
68
73
117
121
123
126
128
378
389
399
409
417
66
72
77
83
88
311
317
322
326
329
1975
1976
1977
1978
1979
..........................................................................
..........................................................................
..........................................................................
..........................................................................
..........................................................................
217
216
216
216
216
16
17
18
18
19
201
199
198
198
197
207
214
221
228
235
77
82
87
92
97
129
132
134
136
137
424
430
437
444
450
94
99
105
110
116
330
331
332
333
334
1980
1981
1982
1983
1984
..........................................................................
..........................................................................
..........................................................................
..........................................................................
..........................................................................
20
20
21
22
23
336
337
338
339
341
135
142
150
157
166
126
122
119
117
115
458
467
474
482
492
505
522
538
555
573
123
129
136
143
151
24
25
25
26
27
242
248
251
254
257
260
265
268
274
281
138
139
137
133
129
..........................................................................
..........................................................................
..........................................................................
..........................................................................
..........................................................................
197
198
201
207
212
221
233
245
255
264
103
109
115
121
128
1985
1986
1987
1988
1989
217
219
223
229
235
244
258
270
281
291
159
167
175
184
193
346
355
363
371
380
1990 ..........................................................................
1991 ..........................................................................
1992 ..........................................................................
1993 ..........................................................................
1994 est ....................................................................
1995 est.......................................................................
300
303
307
311
314
316
28
29
30
31
32
32
272
274
277
281
282
283
290
300
311
321
332
343
174
184
194
203
212
222
116
116
117
118
120
121
590
603
617
632
646
659
202
213
223
233
244
254
387
390
394
399
402
405
1Exdudes outlays for physical capital for research and development, which are included in Table &-9.
The Stock of Research and Development Capital
This section presents data on the stock of research
and development, taking into account adjustments for
its depreciation.
Trends.—As shown in Table 8-11, the R&D capital
stock financed by Federal outlays is estimated to be
$632 billion in 1993 in constant 1987 dollars. About
one-third is the stock of basic research knowledge;
about two-thirds is the stock of applied research and
development.
The total federally financed R&D stock in 1993 was
about evenly divided between defense and nondefense.
Although investment in defense R&D has exceeded that
of nondefense R&D in every year since 1981, the two
stocks are about the same because of the different em
phasis between basic research and applied R&D. De
fense R&D outlays are heavily concentrated in applied
research and development, which depreciates much
more quickly than basic research. Applied research and
development is assumed to depreciate at a ten percent
geometric rate, while basic research is assumed not
to depreciate at all.
The defense R&D stock rose slowly during the 1970s,
as gross outlays for R&D trended down in constant
dollars and the stock created in the 1960s depreciated.
i®For estimates of the total education stock, see Table 2-3 in Chapter 2, “Stewardship:
Toward a Federal Balance Sheet.”
A renewed emphasis on defense R&D spending from
1980 through 1989 led to a more rapid growth of the
R&D stock. Since then, defense R&D outlays have ta
pered off, depreciation has grown, and, as a result,
the net defense R&D stock has grown more slowly.
The growth of the nondefense R&D stock slowed from
the 1970s to the late 1980s, from an annual rate of
3.6 percent in the 1970s to a rate of 1.6 percent from
1980 to 1988. Real gross investment fell during much
of the 1980s, and about three-fourths of new outlays
went to replacing depreciated R&D. Since 1988, how
ever, nondefense R&D outlays have been on an upward
trend while depreciation has edged down. As a result,
the net nondefense R&D capital stock has grown more
rapidly.
The Stock of Education Capital
This section presents estimates of the stock of edu
cation capital financed by Federal government outlays.
As shown in Table 8-12, the federally financed edu
cation stock is estimated at $653 billion in 1993 in
constant 1987 dollars, rising to $738 billion in 1995.
This stock represents about 3 percent of the Nation’s
total education stock.19 Three-quarters is for elemen
tary and secondary education, while the remaining one
quarter is for higher education.
123
8. FEDERAL INVESTMENT OUTLAYS AND CAPITAL BUDGETING
TABLE 8-12.
NET STOCK OF FEDERALLY FINANCED EDUCATION CAPITAL
(In billions of constant 1987 dollars)
Total
Education
Stock
Fiscal Year
Elementary
and Secondary
Education
Higher
Education
1970
1971
1972
1973
1974
................................................................................................
.................................................................................................
................................................................................................
.................................................................................................
................................................................................................
193
208
226
242
249
153
167
183
197
202
39
41
43
46
47
1975
1976
1977
1978
1979
.................................................................................................
................................................................................................
................................................................................................
................................................................................................
................................................................................................
257
278
285
305
325
209
225
227
241
256
47
53
58
64
69
1980
1981
1982
1983
1984
................................................................................................
................................................................................................
................................................................................................
................................................................................................
................................................................................................
346
367
369
377
396
273
288
288
289
299
74
79
81
88
97
1985
1986
1987
1988
1989
................................................................................................
................................................................................................
................................................................................................
.................................................................................................
................................................................................................
423
448
468
496
525
318
337
351
371
391
105
111
117
125
134
1990 ................................................................................................
1991 ................................................................................................
1992 ................................................................................................
1993 ................................................................................................
1994 est............................................................................................
1995 est............................................................................................
550
577
612
653
696
738
408
429
455
485
518
551
141
149
157
168
178
188
In 1970, the federally financed stock of education was
only about half the size of the research and develop
ment stock, but with steady growth in the intervening
decades the education stock now exceeds the stock of
R&D. Despite a slowdown in growth during the early
1980s, the stock grew at an average annual rate of
5.4 percent from 1970 to 1993. Expansion of education
stock is projected to accelerate under this budget, re
flecting in part the emphasis on investment in edu
cation, with stocks estimated to increase at a 6.3 per
cent annual rate from 1993 to 1995.
M e th o d o lo g ic a l N o te
This note provides further technical detail in the esti
mation of the capital stock series presented in Tables
8-9 through 8-12.
As stated previously, the capital stock estimates are
only rough approximations. Sources of possible error
include:
cation, data for Federal outlays from the budget were
combined with data for non-Federal spending from the
institution or jurisdiction receiving Federal funds,
which may introduce error because of differing fiscal
years and confusion about whether the Federal Govern
ment was the original source of funding.
The historical outlay series.—The historical outlay
series for physical capital was based on budget records
since 1940 and was extended back to 1915 using data
from selected sources. There are no consistent outlay
data on physical capital for this earlier period, and
the estimates are approximations. In addition, the his
torical outlay series in the budget for physical capital
extending back to 1940 may be incomplete. The histori
cal outlay series for the conduct of research and devel
opment began in the early 1950s and required selected
sources to be extended back to 1940. In addition, sepa
rate outlay data for basic research and applied R&D
were not available for any years and had to be esti
mated from obligations and budget authority. For edu
Price adjustments.—The prices for the components
of the Federal stock of physical, R&D, and education
capital have increased through time, but the rates of
increase are not precisely known. Estimates of costs
in fiscal year 1987 prices were made through the appli
cation of the National Income and Product Accounts
deflator series, but these should be considered only ap
proximations of the costs of these assets in 1987 prices.
Depreciation.—The useful lives of physical, R&D,
and education capital, as well as the pattern by which
they depreciate, are very uncertain. This is compounded
by using depreciation rates for broad classes of assets,
which do not apply uniformly to all the components
124
ANALYTICAL PERSPECTIVES
of each group. As a result, the depreciation estimates
should also be considered approximations.
Research continues on the best methods to estimate
these capital stocks. The estimates presented in the
text could change as better information becomes avail
able on the underlying investment data and as im
proved methods are developed for estimating the stocks
based on those data.
Research and Development Capital Stocks
Method of estimation.—The estimates were devel
oped from a data base for the conduct of research and
development largely consistent with the data in the
Historical Tables. Although there is not a consistent
time series on basic and applied R&D for defense and
nondefense outlays back to 1940, it was possible to
estimate the data using obligations and budget author
ity. The data are for the conduct of R&D only and
Physical Capital Stocks
exclude outlays for physical capital for research and
For many years, current and constant-cost data on development, because they are included in the section
the value of most forms of public and private physical on physical capital. Nominal outlays were deflated by
capital—e.g., roads, factories, and housing—have been the implicit price deflator for gross domestic product
estimated annually by the Bureau of Economic Analysis (GDP) in fiscal 1987 dollars to obtain estimates of con
(BEA) in the Department of Commerce.20 However, the stant dollar R&D spending.
The appropriate depreciation rate of intangible R&D
BEA data are not directly linked to the Federal budget,
do not include estimates for the years covered by the capital is even more uncertain than that of physical
budget, and do not classify as Federal the capital fi capital. Empirical evidence is inconclusive. It was as
nanced but not owned by the Federal Government. For sumed that basic research capital does not depreciate
budgetary purposes, OMB prepared separate estimates. and that applied research and development capital has
a ten percent geometric depreciation. These are the
Method of estimation.—The estimates were devel same assumptions used in a study published by the
oped from the OMB historical data base for physical Bureau of Labor Statistics estimating the R&D stock
capital outlays and grants to State and local govern financed by private industry.21
ments for physical capital. These are the same major
Education Capital Stocks
public physical capital outlays presented in Part I. This
data base extends back to 1940 and was supplemented
Method of estimation.—The estimates of the feder
by rough estimates for 1915—
1939.
ally financed education capital stock in Table 8-12 were
The deflators for Federal, State, and local purchases calculated by first estimating the Nation's total stock
of durables and structures were used going back to of education capital, based on the current replacement
1940. Specific deflators were not used for subdivisions cost of the total years of education of the population.
of durables and structures. There are no specific price To derive the Federal share of this total stock, the
indices for public purchases of durables and structures Federal share of total educational expenditures was ap
for 1915 through 1939, and estimates were made on plied to the total amount. The percent in any year
the basis of Census Bureau historical statistics on con was estimated by averaging the prior years' share of
stant price public capital formation. Using these Federal education outlays in total education costs. For
deflators, the outlays were converted to constant fiscal more information, refer to the technical note in Chapter
year 1987 dollars.
2, “Stewardship: Toward a Federal Balance Sheet."
The resulting series was adjusted for depreciation.
The stock of capital estimated in Table 8— is based
12
The data were depreciated on a straight-line basis over only on outlays for education. Stocks created by other
the following assumed useful lives: 46 years for water human capital investment outlays included in Table
and power projects; 40 years for other direct Federal 8-1, such as training and vocational rehabilitation,
construction and capital financed by grants (primarily were not calculated because of the lack of historical
highways); and 16 years for defense procurement and data prior to 1962 and the absence of estimates of
depreciation rates.
major nondefense equipment.
Part IV—SUPPLEMENTAL PHYSICAL CAPITAL INFORMATION
The Federal Capital Investment Program Information
Act of 1984 (Title II of Public Law 98-501; hereafter
referred to as the Act) requires that the budget include
projections of Federal physical capital spending and in
formation regarding recent assessments of public civil
ian physical capital needs. This section is submitted
to fulfill that requirement.
This section is organized in two major parts. The
first part projects Federal outlays for public physical
capital and the second part presents information re
garding public civilian physical capital needs.
20 See “Fixed Reproducible Tangible Wealth in the United States", Survey o f Current
Business, September 1993, pp. 61-69.
21 See U.S. Department of Labor, Bureau of Labor Statistics, The Impact o f Research
and Development on Productivity Growth, Bulletin 2331, September 1989.
125
8. FEDERAL INVESTMENT OUTLAYS AND CAPITAL BUDGETING
Projections of Federal Outlays For Public Physical Capital
Federal public physical capital spending was $126.4 1993, and current services outlays are estimated to in
billion in 1993 and is projected to increase to $151.5 crease to $33.2 billion by 2003. Outlays for nondefense
billion by 2003 on a current services basis. The largest housing and buildings were $7.8 billion in 1993 and
components are for national defense and for roads and are estimated to increase to $11.5 billion by 2003. Phys
bridges, which together accounted for about four-fifths ical capital outlays for other nondefense categories were
$18.5 billion in 1993 and are projected to be $27.0
of Federal public physical capital spending in 1993.
Federal public physical capital spending is defined billion by 2003. For national defense, this spending was
here to be the same as the “major public physical cap $76.2 billion in 1993 and is estimated to increase to
ital investment” category in Part I of this chapter. It $79.7 billion in 2003.
Table 8-14 shows current services projections ad
covers spending for construction and rehabilitation, ac
justed for inflation on a constant dollar basis, using
quisition of major equipment, and other physical assets.
fiscal year 1987 as the base year.
This section excludes outlays for human capital, such
Table 8-15 compares the current services and presi
as the conduct of education, training, and research.
dential policy projections from 1993 to 1999 in current
Table 8-13 shows projected current services outlays and constant dollars.
for Federal physical capital by the major categories
For outlay details for most programs, see the items
specified in the Act. Total Federal outlays for transpor included in major public physical capital in tables 8-3
tation-related physical capital were $23.9 billion in and 8-4.
TABLE &-13.
BASELINE OUTLAY PROJECTIONS FOR FEDERAL PHYSICAL CAPITAL SPENDING
(In billions of dollars)
Estimate
1993 acual
Nondefense:
Transportation-related categories:
Roadways and bridges...................................
Airports and airway facilities ...........................
Mass transportation systems...........................
Railroads.........................................................
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
16.3
4.2
3.1
0.3
17.7
4.0
2.4
0.5
18.7
3.9
2.7
0.5
19.7
4.1
2.8
0.5
20.4
4.2
2.9
0.5
20.9
4.4
3.2
0.5
21.6
4.5
3.0
0.5
22.3
4.6
3.0
0.5
22.9
4.7
3.1
0.5
23.6
4.9
3.2
0.5
24.3
5.0
3.3
0.6
Subtotal, transportation ..............................
Housing and buildings categories:
Federally assisted housing.............................
Hospitals .........................................................
Public buildings ’ ............................................
23.9
24.6
25.8
27.1
28.0
29.0
29.6
30.4
31.2
32.2
33.2
3.2
1.6
3.0
4.6
2.0
3.6
5.1
2.1
3.2
5.3
2.0
3.5
5.5
2.1
3.0
5.7
2.1
2.5
5.9
2.2
2.1
6.1
2.3
2.2
6.3
2.3
2.3
6.4
2.4
2.4
6.6
2.5
2.4
Subtotal, housing and buildings..................
7.8
10.2
10.4
10.8
10.6
10.3
10.2
10.6
10.9
11.2
11.5
Other nondefense categories:
Wastewater and drinking water treatment fa
cilities ..........................................................
Water resources projects ...............................
Space and communications facilities..............
Energy programs ............................................
Community development programs ................
Other nondefense...........................................
2.4
2.3
3.1
3.1
3.2
4.4
2.7
2.9
3.2
3.8
3.9
5.4
2.8
2.6
3.2
3.7
4.3
5.2
2.9
2.7
3.2
3.9
4.8
5.3
3.1
2.8
3.2
3.9
5.0
5.4
3.2
2.9
3.3
4.0
4.8
5.6
3.1
3.0
3.3
4.0
4.9
5.7
3.2
3.0
3.4
4.1
5.1
5.8
3.3
3.1
3.5
4.2
5.2
6.0
3.4
3.2
3.6
4.4
5.4
6.2
3.5
3.3
3.8
4.5
5.5
6.4
Subtotal, other nondefense.........................
18.5
21.9
21.8
22.8
23.4
23.8
24.0
24.6
25.5
26.2
27.0
Subtotal, nondefense .................................
50.2
56.7
58.0
60.7
62.0
63.0
63.8
65.6
67.6
69.6
71.7
National defense......................................................
76.2
66.4
65.0
66.1
67.5
69.1
70.8
73.0
75.2
77.4
79.7
Total............................................................
126.4
123.2
123.1
126.9
129.4
132.1
134.6
138.7
142.9
147.1
151.5
1 Excludes outlays for public buildings that are included in other categories in this table.
http://fraser.stlouisfed.org/
150-003 0 -9 4 -5 (QL 3)
Federal Reserve Bank of St. Louis
126
ANALYTICAL PERSPECTIVES
TABLE 8-14.
BASELINE OUTLAY PROJECTIONS FOR FEDERAL PHYSICAL CAPITAL SPENDING IN CONSTANT PRICES
(In billions of constant FY 1987 dollars)
Estimate
1993 actual
1994
1995
1996
1997
1998
1999
Nondefense:
Transportation-related categories:
Roadways and bridges .....................................................................
Airports and airway facilities.............................................................
Mass transportation systems ............................................................
Railroads...........................................................................................
14.4
3.9
2.7
0.2
15.2
3.6
2.0
0.5
15.7
3.4
2.3
0.5
16.1
3.5
2.3
0.4
16.2
3.5
2.3
0.4
16.2
3.5
2.5
0.4
16.2
3.5
2.2
0.4
Subtotal, transportation.................................................................
21.2
21.3
21.8
22.3
22.4
22.6
22.3
Housing and buildings categories:
Federally assisted housing ...............................................................
Hospitals ...........................................................................................
Public buildings1 ..............................................................................
2.9
1.5
2.8
4.0
1.9
3.3
4.3
1.8
2.9
4.3
1.8
3.1
4.4
1.8
2.5
4.4
1.8
2.0
4.5
1.8
1.7
Subtotal, housing and buildings ...................................................
7.2
9.2
9.1
9.2
8.7
8.2
8.0
Other nondefense categories:
Wastewater and drinking water treatment facilities..........................
Water resources projects..................................................................
Space and communications facilities................................................
Energy programs..............................................................................
Community development programs..................................................
Other nondefense..............................................................................
2.1
2.1
3.0
2.9
2.9
4.1
2.3
2.7
3.0
3.5
3.4
4.9
2.4
2.3
2.9
3.3
3.6
4.5
2.4
2.4
2.8
3.4
3.9
4.5
2.5
2.4
2.7
3.3
4.0
4.5
2.5
2.4
2.7
3.3
3.7
4.5
2.4
2.4
2.7
3.2
3.7
4.5
Subtotal, other nondefense ..........................................................
17.1
19.8
19.1
19.4
19.4
19.1
18.9
Subtotal, nondefense....................................................................
45.5
50.3
50.0
50.9
50.5
49.8
49.2
National defense .......................................................................................
69.5
59.1
56.2
55.6
55.1
54.8
54.5
Total..............................................................................................
115.0
109.4
106.3
106.5
105.5
104.6
103.6
1Exdudes outlays for public buidlngs that are included in other categories in this table.
TABLE 8-15.
PROJECTIONS OF FEDERAL OUTLAYS FOR PHYSICAL CAPITAL: CURRENT SERVICES AND PRESIDENTIAL POLICY
(In billions of dollars)
Estimate
1993 actual
1994
1995
1996
1997
1998
1999
50.2
76.2
56.7
66.4
58.0
65.0
60.7
66.1
62.0
67.5
63.0
69.1
63.8
70.8
Total..................................................................................................
Presidential policy:
Nondefense.......................................................................................
National defense ..............................................................................
126.4
123.2
123.1
126.9
129.4
132.1
134.6
50.2
76.2
56.7
66.6
59.4
60.4
61.3
60.5
61.9
60.4
59.5
60.4
59.0
60.5
Total..................................................................................................
126.4
123.3
119.8
121.8
122.3
119.9
119.5
In constant FY 1987 dollars:
Current services:
Nondefense.......................................................................................
National defense ..............................................................................
45.5
69.5
50.3
59.1
50.0
56.2
50.9
55.6
50.5
55.1
49.8
54.8
49.2
54.5
Total ..................................................................................................
Presidential policy:
Nondefense.......................................................................................
National defense ..............................................................................
115.0
109.4
106.3
106.5
105.5
104.6
103.6
45.5
69.5
50.3
59.2
51.2
52.3
51.4
50.9
50.3
49.4
47.0
47.9
45.4
46.5
Total..................................................................................................
115.0
109.5
103.5
102.3
99.7
94.9
91.9
In current dollars:
Current services:
Nondefense.......................................................................................
National defense ..............................................................................
127
8. FEDERAL INVESTMENT OUTLAYS AND CAPITAL BUDGETING
Public Civilian Capital Needs Assessments
The Act requires information regarding the state of
major Federal infrastructure programs, including high
ways and bridges, airports and airway facilities, mass
transit, railroads, federally assisted housing, hospitals,
water resources projects, and space and communica
tions investments. Funding levels, long-term projec
tions, policy issues, needs assessments, and critiques,
are required for each category.
Capital needs assessments change little from year
to year, in part due to the long-term nature of the
facilities themselves, and in part due to the consistency
of the analytical techniques used to develop the assess
ments and the comparatively steady but slow changes
in underlying demographics. As a result, the practice
has arisen in reports in previous years to refer to ear
lier discussions, where the relevant information had
been carefully presented and changes had been mini
mal.
The needs assessment material in reports of earlier
years is incorporated this year largely by reference to
earlier editions and by reference to other needs assess
ments. The needs analyses, their major components,
and their critical evaluations have been fully covered
in past Supplements, such as the 1990 Supplement to
Special Analysis D.
It should be noted that the needs assessment data
referenced here have not been determined on the basis
of cost-benefit analysis. Rather, the data reflect the
level of investment necessary to meet a predefined
standard (such as maintenance of existing highway con
ditions). The estimates do not address whether the ben
efits of each investment would actually be greater than
its cost or whether there are more cost-effective alter
natives to capital investment, such as initiatives to re
duce demand or use existing assets more efficiently.
Before investing in physical capital, it is necessary to
compare the cost of each project with its estimated
benefits, within the overall constraints on Federal
spending.
Significant Factors Affecting Infrastructure Needs Assessments
Significant Factors
Amount
Highways
1. Projected annual growth in travel to the year 2011 ..... 2.5 percent
2. Annual cost to maintain overall 1991 conditions and
performance on highways eligible for Federal-aid......... $48.4 billion (1991 dollars)
3. Annual cost to maintain overall 1991 conditions on
bridges ............................................................................. $5.2 billion (1991 dollars)
Airports and Airway Facilities
1. Airports in the National Plan of Integrated Airport
Systems with scheduled passenger traffic .................... 554
2. Air traffic control towers ................................................ 454
3. Airport development eligible under airport improve
ment program for period 1990-1999 ............................. $40.5 billion ($28.2 billion for capacity) (1989 dollars)
Mass Transportation Systems
1. Yearly cost to maintain condition and performance of
rail facilities over a period of 10 years .......................... $1.7 billion (1992 dollars)
2. Yearly cost to replace and maintain the urban, rural,
and special services bus fleet ......................................... $2.2 billion (1992 dollars)
Wastewater Treatment
1. Total needs of sewage treatment facilities ................... $80.5 billion (1990 dollars)
2. Total Federal expenditures under the Clean Water Act
of 1972 ............................................................................. $62 billion
3. Percent of population served by centralized treatment
facilities that benefits from at least secondary sewage
treatment systems.......................................................... 95 percent
4. States and territories served by State Revolving Funds 51
128
ANALYTICAL PERSPECTIVES
Significant Factors Affecting Infrastructure Needs Assessments—Continued
Significant Factors
Amount
Housing
1. Total unsubsidized very low income renter families
(3.6 million*):.
A. In severely substandard units ............................... 0.4 million
B. With a rent burden greater than 50 percent......... 3.4 million
* The total is less than the sum because some renter fam
ilies have both problems..
Indian Health (IHS) Care Facilities
1.
2.
3.
4.
5.
IHS hospital occupancy rates (1992)............................. .. 44.9 percent
Average length of stay, IHS hospitals (days) (1992).......4.5
Hospital admissions (1992) ..............................................61,992
Outpatient visits (1992) ...................................................3,924,484
Population (1992)........................................................... .. 1,149,881
Department of Veterans Affairs (VA) Hospitals
1.
2.
3.
4.
5.
Hospitals......................................................................... ...173
Outpatient clinics ..............................................................360
Domiciliaries .................................................................. ...39
Outreach centers................................................................202
VA owned nursing home beds ....................................... ...15,952
Water Resources
1.
2.
3.
4.
5.
6.
7.
Navigation (deepwater ports and inland waterway)
Flood control and storm damage protection.
Irrigation.
Hydropower.
Municipal and industrial water supply.
Recreation.
Fish and wildlife mitigation, enhancement, and restoration.
8. Soil conservation.
Most recent comprehensive estimates of the need for
navigation, flood control and shoreline storm damage protection, and municipal and industrial (M&I)
water supply are found in the National Council on
Public Works Improvement, 1987. A task force is assessing the current approach to flood damage reduction and flood plain management,
Investment Needs Assessment References
General
U.S. Advisory Commission on Intergovernmental Re
lations (ACIR). High Performance Public Works: A
New Federal Infrastructure Investment Strategy for
America, Washington, D.C., 1993.
U.S. Advisory Commission on Intergovernmental Re
lations (ACIR). Toward a Federal Infrastructure
Strategy: Issues and Options, A-120, Washington,
D.C., 1992.
Highways and Bridges
Report of the Secretary of Transportation to the U.S.
Congress. The Status of the Nation's Highways and
Bridges: Conditions and Performance and Highway
Replacement and Rehabilitation Program 1989.
June, 1989.
Airports and Airways Facilities
Federal Aviation Administration. The National Plan
of Integrated Airport Systems Report, March 4,
1991.
Mass Transportation Systems
Federal Transit Administration. Public Transpor
tation in the United States: Performance and Condi
tions. June 1992.
Indian Health Care Facilities
Indian Health Service. Priority System for Health
Facility Construction (Document Number 0820B or
2046T). September 19, 1981.
Office of Audit, Office of Inspector General, U.S.
Department of Health and Human Services. Review
of Health Facilities Construction Program. Indian
Health Service Proposed Replacement Hospital at
Shiprock, New Mexico (CIN A-09-88-00008). June,
1989.
8. FEDERAL INVESTMENT OUTLAYS AND CAPITAL BUDGETING
Office of Audit, Office of Inspector General, U.S.
Department of Health and Human Services. Review
of Health Facilities Construction Program. Indian
Health Service Proposed Construction Project for the
Alaska Native Medical Center at Anchorage Alaska
(CIN A-09-89-00096). July, 1989.
Office of Technology Assessment. Indian Health
Care (OTA-H-290). April, 1986.
Wastewater Treatment
Environmental Protection Agency, Office of
Wastewater Enforcement and Compliance. Assessment of Needed Publicly Owned Wastewater Treat
ment Facilities in the United States—Including
Federally-Recognized Indian Tribes and Alaska Na
tive Villages (EPA 430/09-91-024). November 1991.
Water Resources
“Water Resources: Increasing Demand and Scarce
Supplies,” Chapter 2 of America's Renewable Re
129
sources: Historical Trends and Current Challenges,
Kenneth Frederick and Roger Sedjo editors, Re
sources for the Future, Washington, DC, 1991.
National Council on Public Works Improvement. The
Nation's Public Works, Washington, D.C., May,
1987. See “Defining the Issues—Needs Studies,”
Chapter II; Report on Water Resources, Shilling
et al., and Report on Water Supply, Miller Associ
ates.
Frederick, Kenneth D., Balancing Water Demands
with Supplies: The Role of Demand Management
in a World of Increasing Scarcity, Report for the
International Bank of Reconstruction and Develop
ment, Washington, D.C. 1992.
National Research Council, Water Transfers in the
West, Efficiency, Equity and the Environment,
Washington, DC, 1992.
9. RESEARCH AND DEVELOPMENT EXPENDITURES
The Administration is proposing $70 billion (exclud
ing facilities) in research and development (R&D) in
vestments in 1995, a $2 billion or three percent in
crease over 1994. Civilian R&D will increase $1.4 bil
lion or five percent to $31 billion In 1995, university-
TABLE 9-1.
based research will increase to roughly $12 billion, a
$362 million or three percent increase over 1994. Chap
ter 3B of the Budget of the United States Government,
Fiscal Year 1995 includes a discussion of science and
technology that contains more information on research
and development activities.
FUNDING FOR RESEARCH AND DEVELOPMENT
(Outlays; dollars amounts in millions)
Percent
change:
1994 to 1995
1993
actual
1994
enacted
1995
proposed
Research and Development (R&D):
Civilian:
Basic.............................................................................
Applied and Development ............................................
11,370
15,886
11,967
17,149
12,454
18,074
+487
+925
+4%
+5%
Dollar change:
1994 to 1995
Total .............................................................................
27,255
29,116
30,527
+1,411
+5%
Defense:
Basic.............................................................................
Applied and Development ............................................
1,255
39,176
1,232
37,753
1,146
38,237
-86
+484
-7%
+1%
Total .............................................................................
40,432
38,985
39,383
+398
+1%
Total R&D (without facilities).................................................
Total R&D (with facilities)......................................................
67,687
70,320
68,101
70,828
69,910
72,495
+1,809
+1,667
+3%
+2%
37,662
9,579
8,087
5,878
1,754
1,308
3,417
36,343
10,311
8,213
6,121
1,984
1,353
3,777
36,841
10,996
8,324
6,449
2,001
1,392
3,908
+498
+685
+111
+328
+18
+39
+131
+1%
+7%
+1%
+5%
+1%
+3%
+3%
Total R&D ....................................................................
67,687
68,101
69,910
+1,810
+3%
R&D support to university researchers.................................
10,463
11,327
11,688
+362
+3%
R&D by Agency (w/o facilities):
Defense ............................................................................
Health and Human Services.............................................
NASA................................................................................
Energy ..............................................................................
National Science Foundation............................................
Agriculture.........................................................................
131
10. UNDERWRITING FEDERAL CREDIT AND INSURANCE
With over $5.9 trillion in insurance, loan guarantees
and direct loans outstanding at the end of 1993, the
Federal Government remains the largest underwriter
of financial risk in the United States. If activity at
Government sponsored enterprises (GSEs) is included,
the total is over $7.1 trillion, up slightly from 1993’s
level of $6.9 trillion. Including indirect assistance
through deposit insurance (but excluding the influence
of tax expenditures on borrowing), the Federal Govern
ment directly or indirectly assists over 35 percent of
total private domestic borrowing in the United States:
approximately $4 trillion. While the level of Federal
assistance has fallen from a peak of 54 percent in 1972,
most of the decline was due to the contraction in the
thrift and banking industries and the rise of non-bank
financial companies. Since 1975, the proportion of pri
vate domestic borrowing attributable to non-bank fi
nance companies has jumped from just over 8 percent
to 18 percent.
This chapter examines the trends in Federal and fed
erally assisted credit and insurance; analyzes the Fed
eral Government’s exposure to loss from these pro
grams; discusses the tools used in estimating, budget
ing, and managing the risk from these Federal pro
grams; and describes current efforts to rationalize the
allocation of scarce credit resources to their most effi
cient use. The chapter is divided into four sections.
The first section provides an overview of the current
exposure of the Federal Government from existing cred
it and insurance programs. The second section takes
a closer look at the current trends in the Federal insur
ance sector, particularly the largest two segments: de
posit insurance and pension insurance. Section three
discusses the trends in the largest recipient sectors of
Federal credit: business, education, and housing. The
fourth section focuses on the current tools used in man
aging the Federal exposure from these programs, as
well as the appropriate budgeting approach for both
credit and insurance programs.
Estimated Cost of Federal Credit and Insurance Programs
Table 10-1 reports the face value and the estimated
costs of the largest Federal credit and insurance pro
grams.1 As shown in the table, the face value of Federal
insurance remained relatively flat in 1993 ($5.0 tril
lion), while the face value of direct loans ($151 billion)
and loan guarantees ($693 billion) fell slightly. Govern
ment sponsored enterprises (GSEs) continued their
strong expansion during 1993, reaching just under $1.3
trillion—88 percent of which is held by Fannie Mae
and Freddie Mac.
The present value of future costs from losses embed
ded in these programs’ outstanding portfolios of credit
and from projections of future program activity is ex
pected to range from $180-$300 billion. This compares
with last years estimate of $123-$223 billion. Most
of the change in expected costs resulted from improved
methods of estimating the costs for Federal insurance
programs and trends in the underlying insurance port
folios:
• Improvements in the methods used to calculate
the future costs of deposit insurance, pension in
surance, and disaster insurance resulted in sub
stantial increases from the prior year. Comparable
figures for the present value of future costs for
last year were as follows: $60-90 billion for de
posit insurance, $45-75 billion for pension insur
ance, and $11-13 billion for disaster insurance.
1 Table 10-1 does not include credit programs exempt from credit reform, such as CCC
price supports. In contrast with Tables 10-2 through 10-11, defaulted guarantees that
result in loans receivable are included with guaranteed loans.
• Trends in the financial condition of banks and
thrifts and insured pension funds also resulted
in significant changes, although in opposite direc
tions:
— A stronger economy, high interest margins, and
improvements in bank balance sheets helped
boost bank and thrift profits during 1993. As
a result, the future costs of insuring banks and
thrifts fell by $5-10 billion and $10-12 billion,
respectively.
— The fall in interest rates over the past year,
which created an increase in the present value
of promised benefits relative to pension assets,
and inadequate funding of underfunded plans
increased the future costs of insuring pension
benefits by $15 billion. The Administration has
sponsored a reform bill that would significantly
reduce, if not eliminate, the Federal pension in
surance program’s risk from this corporate
underfunding.
• A higher than normal volume of claims during
1993 and the Administration’s proposal to reform
the crop insurance program(which incorporates
costs formerly borne by ad hoc disaster assistance)
account for most of the increase in the future costs
of disaster insurance.
The combined costs for direct loans and loan guaran
tees ($56-$113 billion) was relatively flat compared
with last year ($61-118 billion). However, the composi
tion of costs between direct loans and loan guarantees
133
134
ANALYTICAL PERSPECTIVES
changed with the creation of the Federal Direct Student
Loan Program and the phase-down of the Federal Fam
ily Education Loan Program. Mostly as a result of this
change, the future costs of direct loans increased by
$8-11 billion, while the expected costs of guaranteed
loans fell by $13-18 billion. Small increases in the cost
of Farmers Home direct lending and the Small Business
Administration loan guaranty program, and a phase
out of the Foreign Military Financing direct loan pro
gram resulted in the remaining changes in future credit
costs.
TABLE 10-1. FACE VALUE AND ESTIMATED COST OF FEDERAL CREDIT AND INSURANCE PROGRAMS
(In billions of dollars)
Program
Face Value
19921
1994 Estimates
Present Value of
Future Costs 12
Direct Loans:3
Farm Service Agency, Rural Development Administration....................................
Rural Electrification Admin, and Rural Telephone Bank........................................
Federal Direct Student Loan Program...................................................................
Export-lmport Bank.................................................................................................
Agency for International Development...................................................................
Public Law 480 ......................................................................................................
Foreign Military Financing......................................................................................
Small Business......................................................................................................
Other Direct ...........................................................................................................
50
38
—
9
16
12
9
6
16
16-22
2-4
Face Value 1993
Current Estimates
Present Value of
Future Costs 2
Subsidy Outlays
1994-1999
3-5
5-7
7-9
2-3
2-3
2-4
49
36
—
9
14
12
9
6
16
18-24
3-5
7-10
3-5
5-7
7-9
0-2
2-3
2-4
4-6
1-2
3-5
0-1
0-1
2-3
0-1
0-2
0-1
—
Total Direct Loans..................................................................................................
156
39-57
151
47-69
10-22
Guaranteed Loans3:
FHA Single-Family..................................................................................................
VA Mortgage..........................................................................................................
FHA Multi-Family....................................................................................................
Federal Family Education Loan Program..............................................................
Small Business......................................................................................................
Farm Service Agency.............................................................................................
Export-lmport Bank.................................................................................................
CCC Export Credits................................................................................................
Other Guaranteed...................................................................................................
308
176
79
79
17
6
8
9
22
(14)—
0
3-6
3-6
20-30
1-3
1-3
4-7
4-5
0-1
292
161
81
85
20
7
12
9
26
(18)—
0
3-6
4-6
8-11
2-4
1-4
4-5
4-5
1-3
(10)-0
1-?
0-1
7-9
1-3
0-1
1-3
2-3
0-1
Total Guaranteed Loans.........................................................................................
704
22-61
693
9-44
2-24
Federal Insurance:
Banks4 ...................................................................................................................
Thrifts4 ...................................................................................................................
Credit Unions.........................................................................................................
1,943
761
218
1-12
25-37
—
1,889
707
237
30-45
15-25
—
15-30
5-15
—
Total Deposit Insurance .........................................................................................
2,922
26-49
2,833
45-70
20-45
PBGC4 ...................................................................................................................
Disaster Insurance..................................................................................................
Other Insurance.....................................................................................................
950
721
358
25-40
7-9
4-6
950
722
511
60-90
10-16
9-10
18-20
9-13
8-9
Total Federal Insurance .........................................................................................
4,951
62-104
5,016
124-186
55-87
427
543
85
—
—
—
—
—
50
—
—
0-1
474
622
107
—
52
0-1
—
0-1
Total GSEs ............................................................................................................
1,105
0-1
1,255
0-1
0-1
T o tal..............................................................................................................
6,916
123-223
7,115
180-300
67-134
GSEs: s
Freddie M ac...........................................................................................................
Fannie M ae............................................................................................................
Federal Home Loan Banks....................................................................................
Sallie Mae e ...........................................................................................................
Farm Credit System ...............................................................................................
1 Costs
—
—
—
—
—
are as they were displayed in the 1994 Budget, uncorrected for errors; face values for 1992 have been updated.
^Direct loan future costs are program account outlays projected into the future plus the embedded loss from outstanding loans. Loan guarantee costs are program account outlays plus liquidating account out
lays (and outlays from defaulted guarantees that result in loans receivable) projected Mo the future. Future insurance costs are the equivalent of program plus liquidating costs through 1999, plus the accrued li
ability remaining at thhe end of 1999.
3 Exclude loans and guarantees by deposit insurance agencies and programs not included under credit reform, such as CCC farm supports. Defaulted guarantees which become loans receivable are accounted
for in guaranteed loans.
* Current estimates of deposit insurance and pension insurance costs reflect improvements in estimation methods. The corrected estimated costs for deposit insurance in 1994 was $60-$90 billion (banks:
$35-$53 billion; thrifts: $25-$37 billion), while pension insurance costs were $45-$75 billion.
s Net of borrowing from Federal sources, other GSEs, and federally guaranteed loans.
•The face value and Federal costs of Guaranteed Student loans in Sallie Mae’s portfolio are included in the Education account above.
135
10. UNDERWRITING FEDERAL CREDIT AND INSURANCE
Federal Insurance
Deposit Insurance
Through the Federal Deposit Insurance Corporation
(FDIC)(and before 1988, the Federal Savings and Loan
Insurance Corporation or FSLIC), the Federal Govern
ment insures deposits held at U.S. commercial banks
and thrifts. Individuals placing their deposits in insured
institutions are protected against losses arising from
the failure of a bank or thrift, up to a current limit
of $100,000 per account. The system is financed by
premiums levied on participating institutions and, in
the event of a shortfall, by the U.S. Treasury.
During the 1980s, both the FSLIC and the FDIC
faced an increase in failures.
• Between 1982 and 1992, over 1,100 of the 3,731
thrifts open in 1982 had failed. The closure of
these thrifts exhausted the FSLIC’s $6 billion re
serve, resulting in a taxpayer cleanup that is esti
mated to have cost $135 billion.
• Over the same period, 1,419 banks with a com
bined $232 billion in assets were closed by the
FDIC. As a result, the net worth of the FDIC’s
insurance fund (known since 1989 as the Bank
Insurance Fund or BIF) fell from $18 billion in
1985 to $11 billion at the end of 1992 (excluding
reserves for expected near-term failures).
Consequently, by the end of the decade, legislative
action was required to reinforce both agencies:
• The Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (FIRREA) created the
Resolution Trust Corporation (RTC) to manage the
huge task of closing the backlog of insolvent
thrifts and disposing of their assets. In its first
four years, the RTC closed 675 thrifts with a com
bined $219 billion in assets at an estimated cost
of $80 billion. At the end of September 1993, an
other 68 thrifts with $30 billion in assets were
being managed under RTC conservatorship, and
$43 billion of assets were in receivership.
• The Financial Deposit Insurance Corporation Im
provement Act (FDICIA) was enacted in 1991 to
stem the potential losses of the FDIC. FDICIA
was designed to recapitalize the BIF, while creat
ing a more stringent regulatory regime for banks
and thrifts.
Trends and Exposure
Bank profitability rebounded strongly in 1993 as high
interest margins associated with the steepness in the
yield curve buoyed earnings and allowed banks to
strengthen their balance sheets by selling off low-quality, non-performing assets. As a result, the banking
industry posted record earnings of almost $33 billion
for the first three quarters of 1993, up sharply from
the $24 billion earned over the comparable period in
1992. These gains were distributed across banks of all
asset sizes and in all geographic regions, with some
of the largest improvements occurring at troubled
banks in the Northeast and California. Furthermore,
this increase in profits reflected a real increase in core
earnings, which have now risen for seven consecutive
quarters.
Profits at thrift institutions also remained strong, to
taling $3.8 billion in the first nine months of 1993,
compared with $4.1 billion for the same period in 1992.
(Most of the decrease in earnings was due to a $500
million third-quarter write-down of goodwill by two
large thrifts in the Northeast.) Unlike the banking in
dustry, however, thrift profits remained depressed in
the West and, to a lesser extent, the Northeast regions.
Reflecting this renewed profitability, the expected de
posit insurance liability of the Federal Government im
proved markedly during 1993. The present value of ex
pected future costs of insuring banks and thrifts fell
over the past year from $75 billion to $58 billion.
Budget outlays for bank deposit insurance over the
1993-1998 period are now estimated to total -$32.9
billion, compared with the -$5.5 billion reported in the
1994 Budget. (That is, premium income and collections
from asset recoveries on previous failures are expected
to outstrip the costs of new failures by almost $33 bil
lion.) Most of the increase in negative outlays reflects
a reduction in expected failed bank assets, now pro
jected to total $91 billion over the 1993-1998 period.
The thrift industry is similar. Expected outlays from
both the Resolution Trust Corporation (RTC) and the
Savings Association Insurance Fund (SAIF) fell during
the past year with a drop in projected failed thrift
assets. Currently, failed thrift assets are expected to
total $71.7 billion over the 1993-1998 period, resulting
in net outlays of -$34.8 billion. In the 1994 Budget,
failed thrift assets and net outlays were projected at
$180.7 billion and -$21.2 billion, respectively.
Outlook
Clearly, 1993 was a banner year for banks and
thrifts. Given the pace and direction of change in the
financial services industry, however, the critical ques
tion is whether banks’ short-term profits represent a
renewed competitiveness or just a strong cyclical up
turn. While it is too early to give a firm answer, many
believe that the current gains in bank profits are just
a temporary respite in a continuing decline in banks’
market share brought on by increasing competition
from nonbank institutions. Further, while the turn
around in bank fortunes and the tighter regulatory en
vironment created by FDICIA has clearly reduced the
risk to the FDIC from near-insolvent banks, neither
development eliminated the FDIC’s exposure to bank
asset volatility risk—the risk that swings in the value
of bank earnings can force a currently healthy bank
to fail in the future.
The estimates of the Federal deposit insurance liabil
ity reported in Table 10-1 incorporate this volatility
risk and the cyclicality of bank earnings, adjusting
earnings in line with a typical bank business cycle.
In addition, the higher end of the range was estimated
allowing for a slight secular decline in industry equity.
136
These estimates, however, do not fully incorporate sev
eral factors that could precipitate a larger decline in
bank earnings: interest rate risk, nonbank competition,
and off-balance sheet risk.
Interest Rate Risk.—As the unusual steepness in
the term structure of interest rates continues to abate,
banks will lose the interest margin cushion that has
boosted earnings over the past 18 months. In addition,
in restructuring their balance sheets, banks have in
creased their holdings of longer-term Government secu
rities from 11 percent to 23 percent of bank assets.
While this investment strategy provided banks with
much needed profits, this shift into longer-term securi
ties has augmented the duration gap (the difference
between average maturities) between bank assets and
liabilities—increasing the vulnerability of bank assets
to future increases in interest rates.
Nonbank Competition.—New technology and finan
cial engineering have allowed nonbank institutions to
reduce many of the cost-of-funds advantages that were
once limited to federally insured banks. The recent ex
plosion in money market and mutual fund assets and
finance company lending demonstrates this increased
competition. Initially, banks responded to this competi
tion by seeking higher returns from riskier invest
ments—using the blanket protection of deposit insur
ance as security. This added balance sheet risk, how
ever, often led to additional bank and thrift failures,
disintermediation, and a cycle of falling industry prof
its. While FDICIA helped limit the moral hazard incen
tives in bank risk-taking, it left open the question of
bank competitiveness vis-a-vis nonbank financial insti
tutions.
In this respect, FDICIA has fueled the debate on
whether unequal regulation of bank and nonbank ac
tivities has placed banks at a competitive disadvantage
or whether the special role once served by federally
insured banks has been “innovated” away by techno
logical advances in financial markets.
• Some have argued that the increasing burden of
Federal regulations, designed to guard depositors
and potential borrowers against abuse, may now
more than offset any advantage conveyed to feder
ally insured banks through the deposit insurance
subsidy—handicapping depository institutions rel
ative to the largely unregulated nonbank sector.
Examples cited include regulations governing cap
ital requirements, bank lending, and community
reinvestment decisions.
• Others, however, argue that the fast pace of tech
nological innovation in the financial services in
dustry, especially among nonbanks, has eroded the
long proclaimed ’specialness’ of banks—their rel
ative advantage in assessing and monitoring cred
it risk.
ANALYTICAL PERSPECTIVES
the FDIC. Although the use of derivatives often pro
vides the bank with additional protection against finan
cial risks, the difficulty of overseeing these transactions,
when coupled with the moral hazard created by deposit
insurance, presents an opportunity for abuse within the
banking industry. Since future losses from off-balance
sheet holdings directly affect bank profits, and ulti
mately, the solvency of the bank, these activities in
crease the exposure of the Federal Government to de
posit insurance claims.
Future Reforms
The resurgence in bank profitability and a tighter
regulatory regime for banks and thrifts have clearly
improved the financial health of the deposit insurance
system. Nevertheless, risks still exist within the bank
ing industry and the possibility of a longer-term decline
in bank profits cannot be ignored. Thus, further reforms
of the deposit insurance system merit exploration.
These could include:
• improving the measurement of bank assets and
liabilities in order to provide regulators with bet
ter information concerning the financial condition
of insured banks (e.g., marking-to-market bank
balance sheets);
• continued efforts to reduce barriers to interstate
banking so as to improve the efficiency and diver
sification of bank portfolios; and
• allowing an expansion of bank powers into insur
ance and equity underwriting for those insured
institutions that fully collateralize their insured
deposit base.
Federal Home Loan Bank System
The Federal Home Loan Bank System has begun to
stabilize following the detrimental effects of the recent
thrift industry shrinkage. In 1989, commercial banks
and credit unions were authorized under FIRREA to
become members in the System. As a result, member
ship has climbed to 4,392, with commercial banks rep
resenting almost half of the total. While demand for
advances, earnings, and dividends are still lower than
they were in the 1980s, the System has not suffered
any losses, and its financial condition appears to have
stabilized. In 1992, Congress mandated that HUD,
CBO, GAO, the Federal Housing Finance Board, and
a committee made up of the System’s shareholders as
sess a range of issues including the System’s capital
structure, mission, capacity to pay its REFCorp obliga
tion, and related topics. The studies have raised a num
ber of important issues, including the System’s lack
of permanent capital. Addressing this and other related
issues will help to ensure the continued financial safety
and soundness of the Bank System.
Regulatory Consolidation
The Administration is proposing to consolidate the
current regulatory structure of banks and thrifts. The
Off-Balance Sheet Risk.—The increasing employ current system of regulation has evolved into a balkanment of financial derivatives in off-balance sheet oper ized structure where separate agencies have oversight
ations at banks may have expanded the exposure of in regulating nationally chartered banks, State char
137
10. UNDERWRITING FEDERAL CREDIT AND INSURANCE
tered banks, savings associations, and bank holding
companies. Such a fractured regulatory system may
have functioned adequately when depository and finan
cial institutions operated largely within their own spe
cialized markets. However, it is becoming increasingly
apparent that technological and financial innovations
and global competition have eroded these distinctions,
leaving Federal banking regulation obsolete and incapa
ble of addressing the proliferation of issues raised by
new banking practices and sources of financial risk.
• The present system is overly complex and need
lessly duplicative. As of 1993, 27 percent of all
bank and thrift assets were supervised and regu
lated by 1 Federal regulator, 26 percent were su
pervised by 2 Federal regulators, while the re
maining 47 percent were supervised by 3 or 4
Federal regulators.
• The current system imposes unnecessary costs on
the banking and thrift industries at a time when
they are under competitive pressure to operate
more efficiently.
To institute a more sensible and rational regulatory
system, the Administration has proposed the creation
of a new banking entity, the Federal Banking Commis
sion (FBC). The FBC would assume all of the functions
currently performed by the Office of the Comptroller
of the Currency and the Office of Thrift Supervision.
It would also perform the regulatory functions of the
Federal Deposit Insurance Corporation (FDIC), as pri
mary Federal regulator of State nonmember banks, and
the Federal Reserve, as primary Federal regulator of
State member banks, foreign banks, and bank holding
companies.
The Administration’s plan offers a number of impor
tant improvements beyond eliminating the obvious re
dundancy and needless complexity of the current sys
tem. Specifically, the Administration’s proposal would:
• establish a simplified regulatory structure with
clear lines of agency accountability for the safety
and soundness of depository institutions and the
protection of consumers;
• benefit the banking and thrift industries through
a consistent and less burdensome implementation
of regulations regardless of charter (the legal form
of the institution);
• lower the direct and indirect costs imposed upon
the regulated institutions over the long-run;
• allow the FDIC to concentrate on its primary role
as the Federal deposit insurance and asset liq
uidation agency, with full access to FBC inspection
reports and special authority to conduct examina
tions of marginally solvent banks; and
• maintain the Federal Reserve’s responsibility for
the payment system and monetary policy.
The Federal Reserve would also continue to bear sig
nificant responsibility for monitoring systemic risk in
the financial system—a responsibility which increas
ingly entails tracking developments in the financial
markets arising from the activities of all types of finan
cial institutions, including many large non-bank entities
such as mutual funds and finance companies.
Systemic Risk and Discount Window Borrowing
The large outflows from insured depository institu
tions to uninsured investment companies (noted above)
have increased the relative importance of mutual funds
and other non-bank intermediaries in the U.S. financial
system. To help maintain the integrity of our dynamic
financial system, and to protect the consumers it serves,
the Administration has proposed additional resources
for the Securities and Exchange Commission (SEC).
Specifically, the Administration is proposing to increase
funding for the SEC’s Investment Management Division
by approximately 47 percent. The increased spending
will help to protect the economy and investors against
fraud, self-dealing, inadequate disclosure, and other
abuses through greater inspection of investment compa
nies for their compliance with the Investment Company
Act of 1940.
FDICIA recognized the growing role of nonbank fi
nancial institutions in the payments system and in
cluded a provision expanding access to the Federal
Reserve discount window to nonbank firms that need
liquidity and cannot immediately borrow elsewhere.
The risk of loss to the Federal Reserve from discount
window borrowing was minimized by strong collateral
requirements. Nevertheless, discount window lending is
a potential source of loss to the Federal Reserve banks.
The scale of this risk is difficult to estimate, but any
such loss would reduce the system’s annual payments
to the Treasury from its earnings.
Pension Insurance
While the economic environment of the past year en
abled banks to recoup lost profits, falling interest rates
and corporate underfunding exacerbated the problems
in the Federal pension insurance program. Created by
the Employee Retirement Income Security Act of 1974
(ERISA), the Pension Benefit Guaranty Corporation
(PBGC) insures the promised benefits of participants
in most private defined benefit pension plans. Before
ERISA, when a pension plan sponsor entered bank
ruptcy and terminated an underfunded plan, the em
ployees in that plan were at risk of losing promised
benefits. PBGC insurance was established to insure
beneficiaries against this loss, covering the gap between
promised benefits and assets in the terminated plan.2
PBGC insurance is divided into a multi-employer pro
gram, where the plan sponsor represents an industry
or trade group, and single-employer program covering
plans sponsored by individual companies. Together,
2 “To terminate an underfunded pension plan, a plan sponsor must meet one of four
financial distress tests: (1) it has filed for bankruptcy under Chapter 7; (2) it has filed
for reorganization under Chapter 11 and the court has determined that the company cannot
successfully reorganize and stay in business unless the plan is terminated; (3) it dem
onstrates that it cannot meet its debts and stay in business unless the plan is terminated;
or (4) it demonstrates that pension costs are "unreasonably burdensome” because of a
declining work force. While the last of these criteria has seldom been used over the past
20 years, given the aging distribution of the defined benefit pension population, this criterion
could create a serious increase in the Federal cost of pension insurance. Moreover, a firm
with a defined benefit plan can switch to a defined contribution plan, keeping its existing
defined benefit plan for currently enrolled workers, only to terminate it at some later
date due to the large number of retirees to active participants in the plan.
138
these two programs insure around $950 billion in pen
sion benefits for 41 million participants, with the larg
est insurance coverage in the single-employer program
($800 billion in benefits and 32 million participants).
This section discusses both programs, but places more
emphasis on the single-employer program, where plan
underfunding reached $53 billion in 1993.
Multi-employer Program
The PBGC’s multi-employer insurance program cov
ers industry-sponsored defined benefit plans with an
estimated $150 billion in benefits backed by $160 bil
lion in plan assets. On the surface, the multi-employer
program appears to pose a much smaller risk to the
PBGC than the single-employer program, where a sin
gle corporate bankruptcy could trigger a claim to the
PBGC. In contrast, multi-employer claims can only
occur in response to industry-wide financial distress.
In addition, the Multi-employer Pension Plan Amend
ment Act (MPPAA) reforms passed in 1980 to stabilize
the multi-employer insurance system have been viewed
as a success. MPPAA increased the incentives for plan
funding by raising the coinsurance component of the
insurance—freezing the nominal value of the benefit
guarantee and establishing withdrawal liability for
firms within each industry. A more thorough evaluation
of the multi-employer system has been initiated by the
PBGC in accordance with the 5-year statutory review
scheduled for 1995.
Single-employer Program
The financial health of the PBGC's single-employer
program is more precarious. While the PBGC is not
facing a liquidity problem—it has enough cash to pay
promised benefits for many years—the agency is becom
ing increasingly insolvent. By the end of 1992, the
PBGC had a balance sheet deficit, with pension claims
exceeding agency assets, of $2.8 billion. More worrisome
is the fact that this “booked” deficit does not include
the agency’s large liability to currently insured plans.
The Nature o f the Risk.—A large portion of PBGC’s
risk of loss is related to a growing concentration of
underfunding in financially weak industries or firms.
Between the end of 1990 and the end of 1992, pension
underfunding increased from $31 billion to $53 billion.
While falling interest rates contributed to the increase
in underfunding during the last year (raising the
present value of benefits relative to fund assets), firm
contributions have continued to fall short of increases
in promised benefits.
The problem for the PBGC is that it must insure
against future pension claims without having effective
tools for minimizing this risk. Funding rules established
under ERISA and later modified in the Pension Protec
tion Act of 1987 have been largely ineffective in increas
ing firm contributions. In addition, the PBGC is ex
posed to systemic risk and pension fund volatility risk
for all plans; even overfunded plans can become under
funded and present a claim to the PBGC at some future
date. To this extent, there is some analogy with savings
ANALYTICAL PERSPECTIVES
and loans. In the thrift industry, firms failed primarily
because of systemic risk—an economic shock, namely
accelerating inflation and rising interest rates, de
pressed the value of thrift assets causing many thrifts
to fail. If we are, in fact, entering a prolonged period
of low interest rates, an analogous scenario is possible
with respect to pensions. Already, low interest rates
have been at least partially responsible for the increase
in underfunding during the past year. A severe shock
to the value of pension assets and firm net worth would
precipitate additional claims to the PBGC.
Premiums.—To offset losses from claims, the PBGC
collects both a flat rate premium and a variable rate
premium. The flat rate premium is currently set at
$19 per participant, while the variable rate premium
is equal to $9 per thousand of underfunding, up to
a maximum of $53 per participant. Neither premium,
however, is a truly risk-based premium that incor
porates the volatility and financial health of the pen
sion plan and the sponsoring firm. The variable rate
premium, while a function of current underfunding, is
independent of the solvency of the sponsoring firm and
the future funding status of the plan. Future premium
income is expected to fall well short of future claims.
In fact, Federal pension insurance appears underpriced for almost all firms. Cross-subsidization exists
not between existing plan sponsors but as a potential
liability on future premium payers (or in the worst
case, taxpayers). This liability provides a disincentive
against starting or maintaining a defined benefit plan.
As a result, the PBGC may experience a broader exodus
from the defined benefit system and a contraction in
the agency’s premium base unless the program is re
formed. Since well-funded plans have the strongest in
centive to exit the system, the PBGC may also face
a serious adverse selection problem in the pool of in
sured plans—only high-risk plans would remain insured
by the PBGC. In this context, the recent trend out
of defined benefit plans and into defined contribution
plans is troubling.
Reforms.—In response to the growing liability of the
PBGC, the Administration submitted a package of re
forms to Congress this past fall, entitled the Retirement
Protection Act of 1993. This package was designed to
stabilize the financial condition of the PBGC by:
• strengthening funding requirements to reduce ex
isting underfunding and force employers with un
derfunded plans to fully fund new benefits over
an approximate five-year period;
• increasing the agency’s leverage in monitoring cor
porate transactions and compliance; and
• removing the current cap on the variable rate pre
mium to increase contributions from plans that
pose the highest risk to the agency.
If passed, the PBGC expects the tougher funding re
quirements to force plans to eliminate existing
underfunding over the next 15 years. As such, the re
form bill should greatly reduce the agency’s risk from
139
10. UNDERWRITING FEDERAL CREDIT AND INSURANCE
plan underfunding—clearly the most immediate threat
to the agency’s financial viability.
In order to address any residual risk to the PBGC
from currently overfunded plans (volatility risk), the
PBGC would need the authority to:
• charge risk-based premiums based on the financial
health of the pension plan and the sponsoring
firm, and the volatility in the market value of
plan and firm assets and liabilities; or
• further constrain employer discretion in managing
their pension plans in order to improve the value
of PBGC’s collateral position and minimize future
losses. As an example, the PBGC could require
all insured plans to fully immunize or collateralize
their pension funds with safe, duration-matched
assets.
Crop Insurance
Federal crop insurance is another problem area. Since
1984 the crop insurance program has accumulated an
actuarial loss totaling roughly $8 billion. The crop in
surance program was expanded in 1980 in order to
eliminate the need for costly ad hoc disaster insurance.
Disaster payments, however, have continued—averag
ing roughly $1 billion per year over the last ten years.
Moreover, because farmers continue to expect ad hoc
disaster assistance, their participation in Federal crop
insurance has been undermined.
Disaster assistance costs the farmer nothing. The
qualifications for coverage are loose, and the probability
of receiving assistance in the wake of a disaster is
high—disaster assistance has been provided in each of
the last six years. Disaster assistance itself is problem
atic—increasing farming on marginal lands and encoun
tering administrative problems. A 1989 GAO audit of
the disaster program found significant rates of over
payment and fraud.
The 1993 Omnibus Budget Reconciliation Act (OBRA
1993) legislated reforms to improve the actuarial sound
ness of crop insurance, but did not address the low
farmer participation. Indeed, the higher premiums that
farmers would pay as a result of OBRA 1993 may re
duce participation and increase demand for disaster
payments. Therefore, unless disaster assistance can be
redirected into the Federal crop insurance program,
these programs will remain subject to abuse and their
costs uncontrolled. The Administration proposes
changes in the crop insurance program to achieve this
goal:
• Free catastrophic insurance would be provided to
all farmers for crops insured by the Federal crop
insurance program. The effective level of coverage
and expected insurance indemnities would be
roughly equal to the current indemnity payments
from ad hoc disaster payments. A $50 administra
tive fee would be charged for each crop, limited
to $100 per farmer annually.
• In order to obtain the catastrophic coverage, farm
ers would be required to participate in the basic
Federal crop insurance program. Farmers would
still be able to purchase additional coverage from
private insurers; for such coverage, administrative
expenses would still be subsidized and reinsurance
would be provided by the Federal Crop Insurance
Corporation(FCIC).
• Participation in the Department of Agriculture
commodity income- and price-support programs
would require farmers to obtain crop insurance,
including the catastrophic coverage.
Crops not currently insured by the FCIC would be
covered by a standing disaster program similar to the
current disaster program. In combination, the 1995
budget estimates that these reforms would result in
over $500 million in savings over five years.
Flood Insurance
The Federal Government provides flood insurance
through the National Flood Insurance Program (NFIP)
administered by the Federal Emergency Management
Agency (FEMA). Eligibility is restricted to property
owners living in communities that have enacted and
enforced appropriate flood plain management measures.
The NFIP, however, is not fully administered on an
actuarially sound basis. The NFIP is required by stat
ute to provide subsidized flood insurance premiums for
structures built before a community joined the NFIP
program. Premiums for structures built after that date
are fully actuarially rated. Rates have been established
for the subsidized insured at a level such that overall
premium revenue funds the historical average loss year
for both types of coverage.
Through 1992, premium increases on subsidized poli
cies have allowed the Fund to maintain a self-financing
status for the historical average loss year. Last year,
however, claims were significantly higher. The Decem
ber 1992 East Coast snowstorm, the March snowstorms,
and the Midwest flood resulted in $985 million in
claims—almost double the previous highest loss. As a
result, the flood insurance program recorded a net oper
ating loss of $500 million. Since reserves were inad
equate to cover this loss, the program was forced to
borrow $100 million from the U.S. Treasury. The NFIP
expects to collect sufficient premium income in 1994
and 1995 to retire these Treasury borrowings and plans
on implementing future rate adjustments to reflect the
1993 loss experience. Nonetheless, the subsidized por
tion of the NFIP will remain at risk to future losses
from severe flooding.
140
ANALYTICAL PERSPECTIVES
Federal Credit
In addition to supporting the extension of credit
through deposit insurance, the Federal Government
takes a direct role in providing credit where there is
a perceived social goal that is being underserved by
the market or where the Federal Government is
uniquely positioned to diversify the underlying risks.
While the fast pace of innovation in private financial
markets has greatly reduced the Federal Government’s
comparative advantage in this later respect, the Gov
ernment still takes an active role in providing credit
for certain forms of business (small business, exports,
and agriculture), in financing post-secondary education,
and in housing. The contingent exposure of these pro
grams, which are shown in Table 10-1, is roughly $85
billion. In many of these programs, however, efforts
are being taken to redirect Federal support on the basis
of net benefits delivered.
Business
Small Business
The Federal Government has been providing credit
assistance to small business for almost sixty years.
Since 1953, most of this support has come from the
Small Business Administration (SBA). The SBA cur
rently operates 5 direct loan programs, 3 loan guaran
tee programs, 4 programs to provide or guarantee eq
uity capital, and a disaster relief program. SBA pro
grams are designed to help provide loans for small com
panies denied credit at “reasonable” terms by private
lenders. The largest SBA program is the 7(a) loan guar
antee program, comprising 85 percent of all SBA busi
ness lending. The 7(a) program provides loan guaran
tees of up to 90 percent of the loan value (for a maxi
mum guarantee of $750,000) originated by private fi
nancial institutions. Loans are statutorily required to
be of sound value or so secured as to reasonably assure
repayment.
Federal assistance in providing credit for small busi
ness is designed to address a reluctance on the part
of financial institutions to provide credit to smaller
firms. Banks, recognizing the high monitoring costs of
these loans and the potential for adverse selection in
the pool of applicants, often bypass small business loans
as being too risky. This is especially true with respect
to the long-term credit needs of start-up firms. Further,
there is evidence that small business credit is the first
form of lending to be cut by banks during periods of
economic and financial contraction. This trend seemed
especially apparent during the most recent recession.
• Bank business lending fell by almost 14 percent
from the fourth quarter of 1989 to the first quar
ter of 1993.
• Meanwhile, demand for SBA 7(a) loans sky
rocketed, with total guarantees doubling over the
past four years to $6 billion. Guarantee levels in
1994 are projected to total $7 billion.
The prolonged sluggishness in private bank lending
and concerns over the efficacy and efficiency of SBA
programs have led to further efforts on the part of
the Federal Government to boost the availability of
credit for smaller firms. The Administration encouraged
federal regulators to adopt a series of credit crunch
initiatives last Spring and established a National Eco
nomic Council task force to formulate longer-term policy
initiatives for improving small business access to credit.
Already this year, the Administration has endorsed
Congressional initiatives to remove impediments to pri
vate market securitization of business loans. This legis
lation would facilitate the development of a private sec
ondary market in small business loans, increasing the
future liquidity and profitability of small business lend
ing. In addition, the SBA is in the process of revitaliz
ing its Small Business Investment Company (SBIC)
program that provides equity capital to new and emerg
ing companies. Reforms that help target SBA assistance
only to borrowers truly unable to obtain credit in pri
vate markets and initiatives that foster a general envi
ronment of strong business growth will be examined
during the coming year.
Export Credits
The Federal Government also provides loan guaran
tees and insurance to help U.S. companies export goods
overseas or manage overseas private investments. For
example, the Department of Agriculture provides over
$5 billion in loan guarantees annually to finance pur
chases of U.S. agricultural commodities. Most export
credit, however, is extended through the Export-Import
Bank (Eximbank): the official export credit agency
(ECA) of the United States. Eximbank’s traditional mis
sion is to use direct loans, login guarantees, and export
credit insurance to increase U.S. exports in cases where
competitive private financing is not available or where
foreign governments provide subsidized export credits.
In the past, it has been difficult to determine the
extent to which Eximbank’s programs have supported
U.S. exports that otherwise would not have taken place.
In 1995, Eximbank will attempt to refocus its resources
in areas where private financing is unavailable, thus
creating additional exports (“additionality”), and will
participate in multilateral negotiations to further re
duce the use of subsidized financing by all governments.
Additionality:—In the vast majority of cases, com
petitive private sector financing is available for U.S.
exports. However, in certain cases the private sector
cannot or will not provide financing for specific export
transactions. Eximbank is currently exploring ways to
ensure, to the maximum extent possible, that its credit
assistance actually goes to exporters otherwise unable
to secure private credit, and thus, create additional ex
ports. In particular:
• Eximbank has raised fees on credits for aircraft
exports and is considering revising its fee struc
10. UNDERWRITING FEDERAL CREDIT AND INSURANCE
ture so that fees are more commensurate with
the true cost of providing credit.
• Eximbank is reviewing its export credit insurance
and other programs to ensure that they do not
compete directly with private sector providers.
• Eximbank is requiring that applicants dem
onstrate why competitive private sector financing
is not available before it will consider providing
official export financing.
Multilateral Negotiations.—The Arrangement on
Official Export Credits, negotiated under the auspices
of the Organization for Economic Cooperation and De
velopment (OECD), restricts the extent to which sub
sidies may be provided to exporters through official di
rect export credits. However, ECAs continue to provide
implicit subsidies by underpricing credit risk. At the
urging of the U.S. and other countries, the Arrange
ment Participants are now beginning to consider the
question of limits on risk subsidies.
Risk Management—The question of risk subsidies
is also important for managing the U.S. Government’s
exposure to sovereign risk—the risk that a foreign gov
ernment will default on payments of debt owed to out
side sources—and non-sovereign or project risk. In
1991, the Federal Government implemented a proce
dure for managing sovereign risk with the creation of
the Interagency Country Risk Assessment System
(ICRAS). ICRAS applies directly to sovereign lending
where the transaction carries the “full faith and credit
guarantee” of the foreign central government.
Under this system, every country to which the U.S.
Government has lent or will lend is assigned a “risk
rating” “(A-F-)”. Risk is measured by the probability
of payment delays and the probability of subsequent
non-recovery. The risk assessment is done by applying
an interagency-agreed set of repayment factors and in
dicators. The five (unweighted) factors are: (1) payment^/arrears history; (2) foreign debt service burden;
(3) balance of payments adjustment capacity; (4) macroeconomic environment; and (5) political/social con
straints. The country rating is then translated into a
risk premium that represents the credit risk of lending
to a particular country. While continuing efforts are
underway to refine the Federal Government’s capacity
to assess sovereign risk, ICRAS greatly improved the
rationality of managing international credit program
costs.
Several international credit agencies also provide
credit to private sector borrowers operating abroad. Re
cent efforts, therefore, have concentrated on the devel
opment of a framework for accurately and uniformly
assessing non-sovereign risk. This framework will draw
on the criteria now utilized by these various agencies
in assigning risk ratings to individual projects anchor
loans. Factors to be considered include: (1) project struc
ture/leverage; (2) management assessment (of the bor
rower, project operator, financial intermediary); (3)
business risk/market assessment; (4) project liquidity;
(5) evaluation of financial forecasts; (6) country risk;
141
(7) sources of repayment; (8) collateral security ade
quacy; and (9) other/offsetting factors.
Trade Promotion Coordinating Committee
(TPCC).—The TPCC was created in 1990 in order to
provide a forum for coordinating all U.S. export pro
motion programs. (A full explanation is contained in
the Budget). The objective of the TPCC is to rationalize
and consolidate U.S. Government export promotion ef
forts into a unified export budget—eliminating overlaps
and redirecting scarce export budget resources to pro
grams that yield the highest benefits for U.S. exports.
The development of a unified export budget will require
the examination of each program’s objectives, justifica
tion (market failure), target recipients, and cost-benefit
analysis. Agencies will also be required to develop mile
stones that will be used to measure progress in meeting
programmatic goals.
Agriculture
Federal credit assistance to agricultural-related en
terprises is provided through Federal direct and guar
anteed loans, and through implicit backing for the
Farm Credit System (a GSE). At the end of 1993, U.S.
support for agricultural credit programs totaled $163
billion, down from $167 billion in 1992.
• The Farmers Home Administration (FmHA) pro
vides direct loans and loan guarantees to family
sized farmers who cannot secure credit on afford
able terms from private sources. Although FmHA
is a “lender of last resort”, demand for direct farm
loans has decreased in recent years as low interest
rates have enabled a greater number of farmers
to qualify for private credit. The Budget proposes
slightly higher levels of guaranteed loans and in
terest payment subsidies in an attempt to grad
uate more borrowers to private lenders.
• The Department of Agriculture also provides cred
it assistance to rural businesses through direct
and guaranteed loans issued under the Adminis
tration’s Rural Development Initiative. Significant
increases in these programs were enacted during
the past year and further increases are proposed
in the Administration’s Budget.
• The Administration proposed significant reduc
tions in interest rate subsidies for Rural Elec
trification Administration (REA) direct loans in
1994, half of which were enacted by Congress.
Additional reductions in subsidies for REA loans
are proposed in the 1995 budget, but with only
a minor reduction in loan levels.
The Farm Credit System (FCS) is a GSE that pro
vides credit to the farming sector through a conglomera
tion of member-owned cooperatives. The Farm Credit
System became insolvent in the mid-1980s when inad
equate interest-rate risk management and falling land
prices, which depressed the value of collateral behind
FCS credit, created large losses and necessitated a Fed
eral bailout through the FCS Financial Assistance Cor
poration (FAC). While the FCS has fully recovered from
its earlier financial difficulties, the failure of the FCS
142
ANALYTICAL PERSPECTIVES
provides another graphic example of the danger in not
fully accounting for the risks inherent in Federal pro
grams.
FCS institutions are still paying off $1.26 billion in
federally guaranteed FAC debt. While the Federal Gov
ernment pays roughly half of all interest on this debt,
the FCS is required to repay all Federal interest pay
ments and redeem FAC debt as it comes due, beginning
in 2003. Recent legislation requires the FCS to make
annual payments to FAC to defease the Federal interest
obligation and certain classes of FAC debt. In 1993,
FAC received approximately $50 million from the FCS
for this purpose. However, FCS institutions have also
begun to voluntarily make advance payments to FAC
in repayment of financial assistance, thereby reducing
the Government’s contingent liability from FAC debt.
These payments will accrue interest and be used to
redeem FAC debt as it matures.
Post-secondary Education
The Federal Government has been helping to finance
post-secondary educations since the 19th century. This
past year, however, marked a watershed in the Federal
Government’s support for education. In August, the
Congress passed the Administration’s Student Loan Re
form Act of 1993 as part of the Omnibus Budget Rec
onciliation Act of 1993. By phasing down guaranteed
loans under the Federal Family Education Loan Pro
gram (FFELP) and increasing the direct Federal lend
ing under the Federal Direct Student Loan Program
(FDSLP), the Student Loan Reform Act promises to
lower the Federal costs of providing loans for post-sec
ondary education while providing more flexible repay
ment options for student borrowers. Specifically, the
Act is designed to:
• lower the student and Federal Government costs
of financing a post-secondary education;
• provide students with an income-contingent repay
ment option that will permit many college grad
uates to take lower paying community service jobs
without fear of defaulting on their loan obliga
tions; and
• improve the Federal Government’s ability to man
age and control the costs of supporting post-secondary education.
Under both programs, combined new loans of $20
billion will be guaranteed or made directly in 1995 to
6 million borrowers. The outstanding volume of loans
at the end of 1994 is estimated to be $74 billion.
OMB and CBO estimated five-year savings of $4.2
billion from the enactment of this reform: the cost of
providing financial assistance through the FDSLP is
less than under the FFEL Program. Savings come from
elimination of payments to private lenders and State
guarantee agencies for in-school interest and collection
activity, the stream of interest payments that the Fed
eral Government will receive from borrowers under the
FDSLP, and a variety of fees on and lower payments
to lenders, guarantors, and secondary markets in the
FFEL Program as it phases down. Federal cost of ad
ministration has been taken into account in these sav
ings estimates; the Act provided $2.5 billion in manda
tory administrative funds for the FDSLP for fiscal years
1994 through 1998. A description of each of these pro
grams follows.
Federal Family Education Loan Program
The FFELP, formerly the Guaranteed Student Loan
Program, was authorized under the Higher Education
Act to provide Federal reinsurance for student and par
ent loans made by private lenders for students attend
ing eligible institutions of higher education (including
proprietary vocational schools). These loans are guaran
teed by agencies of each State, or by non-profit organi
zations designated by the State to guarantee student
loans. These loans are then reinsured by the Federal
Government. In 1993, 8,000 lenders and 46 guarantee
agencies participated in the program.
The statute has required the Federal Government
to reimburse lenders for all default costs, except for
a small percentage for which the State guarantee agen
cies are responsible in years in which an agency has
a high default rate. The 1993 OBRA mandated at least
2 percent risk-sharing for both lenders and State agen
cies on new guaranteed loans. Default costs in 1993
were $2.6 billion, and are estimated to be $2.3 billion
in 1995.
The Federal Stafford Loan program is the largest
of the FFEL programs (1993 volume was $11.5 billion,
70 percent of the total FFELP volume), and the most
highly subsidized. For borrowers with financial need
as defined by the Higher Education Act, the Federal
Government pays the interest on these loans while the
borrower is attending school and during certain
deferment periods. Under the other programs, the bor
rower is responsible for interest at all times.
Federal Direct Student Loan Program
Loans under the new FDSLP will be originated by
either eligible institutions or alternative originators
under contract to the Department of Education, using
Federal funds. Borrower payments will be made to a
Federal contractor, pending a study by the Departments
of Education and Treasury of how to involve the Inter
nal Revenue Service in the servicing of loans, particu
larly those repaid on an income-contingent basis.
Borrowers will receive loans with comparable interest
rates and repayment provisions to those in the FFELP
with the notable exception that loans under the FDSL
Program may also be repaid on an income-contingent
basis (for student, not parent, borrowers), not to exceed
25 years. That is, periodic repayment amounts will vary
with income, or ability to pay, and below certain family
income levels, may be suspended entirely. The specific
formulas for income-contingent repayment will be es
tablished by regulation. In addition, beginning in the
summer of 1994, the Department of Education is au
thorized to consolidate into the FDSLP the loans of
FFEL borrowers who desire income-contingent repay
ment.
10. UNDERWRITING FEDERAL CREDIT AND INSURANCE
The FDSLP will begin making loans to students and
their parents in July 1994. The statutory goal is that
loans made under the FDSLP will represent 5 percent
of total student loan volume in Academic Year (AY)
1994/95, 40 percent in AY 1995/96, 50 percent in AY
1996/91 and 1997/98, and 60 percent in AY 1998/99,
by which time the Act will have undergone its next
re-authorization and a decision on full replacement of
all guaranteed lending will have been made. Beginning
in AY 199Q/97, the Secretary of Education may exceed
these percentage goals if he or she determines that
a higher percentage is warranted by the number of
institutions that desire to participate.
Risk Management
The primary risk associated with the transition to
direct Federal lending from the guaranteed program
is the capacity of the Department of Education to make
the direct program work cost effectively while maintain
ing access to loan capital for students and parents.
The transition to the FDSLP will provide the Depart
ment of Education with enhanced risk management
controls over credit risk. Student loan defaults will be
reduced over time if income-contingent repayment is
selected by many borrowers who would have otherwise
defaulted because of their inability to repay. Extending
the repayment period of borrowers under income contin
gent repayment will not increase Federal costs since
interest will continue to accrue.
Student Loan Marketing Association
The transition to the direct student loan program,
however, will reduce and eventually eliminate the need
for existing secondary markets for student loans. While
there will continue to be a substantial volume of out
standing guaranteed loans for many years, the volume
of new guaranteed loans will steadily decline. The larg
est student loan secondary market is the Student Loan
Marketing Association (Sallie Mae), a government-spon
sored enterprise currently holding 35 percent of all out
standing guaranteed loans. The Departments of Edu
cation and Treasury are preparing a study of Sallie
Mae and will present to Congress legislative rec
ommendations for its future.
Housing
The Federal Government underwrites credit for home
purchases through the mortgage insurance programs
of the Federal Housing Administration (FHA) in the
Department of Housing and Urban Development (HUD)
and the Department of Veterans Affairs (VA). Credit
for the development of low-income multifamily housing
is insured through various FHA programs. The Govern
ment also provides credit for rural housing through
the Farmers Home Administration (FmHA). VA pro
vides mortgage guarantees, including no-downpayment
loans, to veterans, active-duty service persons, and se
lected reservists. In 1993, these Federal housing pro
grams combined to provide over $560 billion in credit
guarantees and insurance.
143
The Government National Mortgage Association
(GNMA) packages FHA and VA mortgages as securities
and guarantees timely payment to investors. Two Gov
ernment-sponsored enterprises—the Federal National
Mortgage Association (Fannie Mae) and the Federal
Home Loan Mortgage Corporation (Freddie Mac)—buy
conventional mortgages, as well as some FHA mort
gages—and package them as guaranteed securities. At
the end of 1993, Fannie Mae and Freddie Mac held
over $1.3 trillion in securitized mortgages.
Housing credit supported by Government programs
is generally of lower quality than that underwritten
by the private markets, and therefore, carries a greater
risk of default. Partly this reflects Government’s role
in expanding access to mortgage credit for groups
whose credit needs have been underserved by the pri
vate sector.
• FHA’s principal mortgage insurance program, for
instance, serves younger families who are buying
their first homes, but lack sufficient savings to
meet conventional downpayment requirements.
• VA guarantees no-downpayment loans and allows
veterans to finance the origination fee. Thus, VA
loans can have loan-to-value ratios that exceed
100 percent.
• USDA’s rural single-family housing direct loan
program provides interest rates that are based on
a borrower’s income, and can be as low as one
percent. The Administration, however, proposes to
conform the amount required to be contributed
by the borrower with other Federal housing stand
ards—increasing the required contribution from 20
to 30 percent.
These programs represent a higher risk to the Federal
Government, because buyers with a smaller initial eq
uity stake in their homes are more likely to default
under adverse circumstances, especially if the value of
their property falls.
Costs also vary with market conditions, however, in
cluding trends in housing prices and interest rates. In
general, market conditions affecting mortgage defaults
have been improving over the last year. As a result,
delinquency and default rates have dropped.
These trends have resulted in markedly improved
projections for the condition of the FHA’s largest single
family insurance program. Reforms enacted in 1990
also are contributing to a gradual improvement in the
equity position of FHA’s mutual mortgage insurance
(MMI) fund, which turned negative after massive de
fault losses in the 1980s. The most recent projections
suggest that the MMI fund’s economic value is now
positive and that, under the most likely economic condi
tions, it will reach the Congressionally mandated cap
ital ratio target of 2.0 percent by 2000.
This improved forecast is tempered by the wide range
of uncertainty about future market conditions. Another
source of concern is the possible effect of recent
refinancings: both those by buyers switching to conven
tional mortgages and those refinancing with FHA or
VA on a streamlined basis. In 1993, approximately 40
144
ANALYTICAL PERSPECTIVES
percent of VA’s guaranteed loans and 45 percent of
FHA’s guaranteed loans were refinancing loans. If FHA
and VA are left with the riskier portion of their older
mortgages while the safer part shifts to conventional
financing, this could have a net adverse effect on the
subsidies for these programs.
FHA’s multifamily insurance programs have been a
major source of support for the development of
moderate- and low-income rental housing. However, in
many instances, flawed program design, poor manage
ment, and weak market conditions have led to the dete
rioration of these properties and, ultimately, default.
This has left HUD with a large and growing inventory
of defaulted properties and troubled loans. In 1992, re
serves for losses were increased to $12 billion against
$44 billion of insurance in force.
FHA is hampered in managing and disposing of this
inventory both by limited resources and by unnecessary
statutory restrictions. Last year, Congress failed to
enact reforms that would provide FHA with greater
flexibility to dispose of these assets while protecting
their tenants. Unless reforms are enacted, FHA’s inven
tory of defaulted properties will grow and taxpayers
will bear the cost of operating and capital losses as
properties deteriorate. Tenants will suffer, and re
sources will be diverted from other efforts to meet the
housing needs of low-income communities.
Improving Budgeting and Financial Management
Present Value Budgeting: An Update on Credit
Reform
The Federal Credit Reform Act of 19903 fundamen
tally changed the budgetary treatment of direct loans
and loan guarantees. The Act, which became effective
in 1992, requires budgeting for the “costs” of Federal
credit programs. The Act defines these costs as “the
estimated long-term cost to the Government of a direct
loan or a loan guarantee, calculated on a net present
value basis, excluding administrative costs ...”
Prior to the Federal Credit Reform Act, direct loans
and loan guarantees were recorded on a cash basis.
The entire amount of the direct loans were shown as
a cash outlay in the year the loan was disbursed. Re
payments, were recorded as they occurred over a period
of years. Loan guarantees (Federal guarantees of loans
disbursed by private institutions) were recorded in the
budget only when fees were received by the Govern
ment or when the Government made payments for de
fault claims and interest supplements to borrowers.
This system had serious shortcomings. It overstated
the cost of direct loans when they were made and un
derstated the cost of loan guarantees.
• This encouraged the Federal Government to favor
loan guarantees over direct loans regardless of
their true cost.
• The true cost of different credit transactions could
not be compared to one another or to other budg
etary programs, such as grants.
• Direct loans and loan guarantees affected budget
outlays in later years, after their cost was sunk
and largely uncontrollable.
• Payments for guarantee claims did not require the
discipline of normal appropriations.
• Reserves were generally not set aside for loan
guarantees to pay for probable defaults.
The Credit Reform Act was a response to these short
comings. Under credit reform, the full cost (subsidy)
is recorded as an obligation when the Government en
ters into a loan obligation or guarantee commitment.
3 Title V of the Congressional Budget Act of 1974, as amended by section 13201 of the
Omnibus Budget Reconciliation Act of 1990.
The full cost of the loan or guarantee is recorded as
a budget outlay when the direct loan or guaranteed
loan is disbursed to the public. The subsidy element
of a credit program is calculated as the difference be
tween the present value of the expected cash outflows
from the Government and the present value of the ex
pected cash inflows, each discounted by the interest
rate on marketable Treasury securities of like maturity
at the time of loan disbursement.
By placing the cost of credit programs on a budgetary
basis equivalent to other spending, it allows for a better
comparison of cost between direct loan and loan guar
antee programs and between credit programs and other
federal assistance, such as grants. Credit reform has
proven that these comparisons are important in deci
sion making, especially when allocating scarce Federal
resources (tax revenue). For example, the debate on
the recently enacted change to direct student loans (in
stead of guaranteed loans) centered on which method
of delivery was the most cost-effective, not on the budg
etary impact of direct loans versus guarantees. Under
credit reform the budgetary impact, as measured by
the subsidy cost, is directly comparable. In addition,
when legislation was proposed to allow prepayment of
outstanding REA and SBA loans, the cost of these
modifications was measured on a present value basis
and recorded as budget authority and outlays. Appro
priations were required before the modifications could
be made. Before credit reform, prepayments would have
been recorded as an increase in receipts, with no ac
counting for the real loss and with no action required
in the appropriations process.
The analysis performed under credit reform gives a
more accurate picture of the costs of Federal credit
programs. Evaluation of this information by program
managers has been useful in making decisions on how
to use scarce resources. In addition, credit reform re
quires a link between accounting and budgeting that
is relatively new to Government budgeting. Agency
budget staffs rely on the accounting staff for data to
meet the credit reform requirements for reestimating
subsidies. Reestimates are done each year, over the
145
10. UNDERWRITING FEDERAL CREDIT AND INSURANCE
life of the loans, with data provided, in part, by the
agency accounting staff.
Reestimates
The Federal Credit Reform Act requires periodic
reestimates of the subsidy cost of a credit program
throughout the lifetime of the loan or guarantee.
Reestimates of the subsidy cost must be made at the
beginning of each fiscal year following the year in which
the initial disbursement was made.
Subsidy estimates are updated and adjusted for new
information as the login matures. Information from ac
tual accounting records used in making reestimates in
cludes: interest rates, loans disbursed, fees and interest
TABLE 10-2.
recorded, countries to which international loans were
disbursed, distribution of loans across different type^
classes of borrowers (risk categories), default claims
paid, and delinquencies and loan write-offs reported.
Reestimates are also made for changes in default expec
tations and other technical factors affecting loan repay
ments and recoveries.
To cover any increase in the subsidy cost resulting
from the reestimate, the Federal Credit Reform Act
provided permanent indefinite budget authority. These
funds are available without further action by the appro
priations committees and are not subject to the discre
tionary cap.
REESTIMATES OF CREDIT SUBSIDIES ON LOANS
DISBURSED IN 1992 AND 19931
(In millions of dollars)
DIRECT LOANS
International debt reduction....................
Agriculture credit insurance fund ............
Farms for the future...............................
Rural electrification and telephone loans
Rural telephone bank.............................
Rural development insurance fund.........
Rural housing insurance fund.................
Rural development loan program............
VA-Guaranty and indemnity....................
Export-lmport Bank direct loans..............
LOAN GUARANTEES
AID housing guaranty...........................................
Agriculture credit insurance..................................
Commodity Credit Corporation export guarantees
Rural development insurance fund......................
Rural housing insurance fund..............................
Federal family education (formerly GSL)..............
FHA-General and special risk..............................
VA-Guaranty and indemnity program ...................
VA-Loan guaranty program..................................
Export-lmport bank guarantees............................
Total
26
10
-1
1
-38
52
*
-12
-29
-2
5
-3
2
-1
114
-196
-446
-111
-11
-640
*$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 1995.
Table 10-2 shows the reestimates of credit subsidies
on loans disbursed in 1992 and 1993. The large upward
reestimate for the Rural Housing Insurance Fund re
sults from a technical change in the subsidy model
methodology. Significant downward reestimates in
cluded the VA-Guaranty and Indemnity program, VALoan Guaranty program, FHA-General and special risk,
and the Federal family education program.
The primary reasons for VA's downward reestimate
were the improvements in the methodology used in cal
culating the subsidy and a change in the foreclosure
rate assumed in the estimate. The foreclosure rate
changed as a result of the loans being refinanced when
interest rates fell. This lowered the mortgage payment
burden for borrowers and hence, lowered the expected
foreclosure rate. FHA’s downward reestimate resulted
from increased historical data that provided more in
sight into the actual costs of the program.
Budgeting for Federal Insurance Programs
While the Federal Credit Reform Act of 1990 im
proved the budgeting for Federal credit programs, Fed
eral insurance programs were explicitly excluded from
the Act. Federal insurance programs insure bank depos
its, pensions, overseas investments, veterans lives, and
crops. They also insure against floods and war-risk,
and provide vaccine compensation. As in credit pro
grams before credit reform, the current cash budgetary
treatment of these programs distorts the information
and incentives decision makers need to make proper
budget resource allocation decisions.
146
• The cash budget does not measure or require
budgetary authority to cover the Government’s ex
pected losses from these programs at the time the
insurance is extended.
• Cash budgeting provides little incentive, and in
some cases large negative incentives, to enact re
forms that reduce expected costs.
• Since future insurance costs remain hidden under
a cash budget, the problems of adverse selection
and moral hazard remain unchecked—increasing
costs and creating the potential for a hidden
intergenerational cross-subsidization of benefits.
This distortion created by a cash budget was clearly
evident in the Federal budget’s inability to account for
the rising costs of deposit insurance. Cash budgeting
did not assess the costs until the thrifts or banks were
closed and the Federal Government could do nothing
but pay the bill. Similar problems exist today with pen
sion guarantees, flood insurance, and other insurance
liabilities. Thus, a comparable reform is needed in the
budgetary treatment of Federal insurance programs.
Federal insurance programs can be thought of as fall
ing into one of two broad categories:
• Term insurance.—Some insurance covers losses
due to the occurrence of an insured event up to
specified limits during a fixed period of time. De
posit, crop, flood, war-risk, and overseas invest
ment insurance have this character.
• Open-ended insurance.—Other insurance covers
losses up to specified limits for an indefinite pe
riod until the insured event occurs or can no
longer occur. Pension insurance, veterans whole
life, and vaccine compensation are in this cat
egory.
If the budgeting for Federal insurance programs were
changed to a commitment basis similar to credit reform,
the annual cost to the Government would be defined
as the cost over the term of the contract of new insur
ance commitments extended during a given year. For
deposit insurance, this would be the expected costs from
bank failures during the year. For pensions, this would
be the expected costs associated with any increase in
benefits guaranteed during the year.
Switching the budgetary treatment of insurance to
this new basis would accurately record the costs on
new insurance commitments, but it would leave open
the question of existing liabilities at the date of conver
sion to a commitment basis.
• For programs with a short contract term, e.g. oneyear crop insurance, this requires only a one-year
adjustment.
• For insurance programs with longer-term con
tracts, however, the establishment of a sub-account for liquidating existing liabilities analogous
to the treatment of pre-1992 direct loans or loan
guarantees would be necessary. Claims associated
with outstanding benefits at the time of conver
sion to the new basis would be budgeted for as
those claims were made.
ANALYTICAL PERSPECTIVES
Switching insurance programs to this new budgetary
treatment would increase the accuracy and consistency
in budgeting Federal costs and would provide better
information and incentives for decision making.
Measuring Underwriting Risk
One of the greatest contributions of credit reform has
been the emphasis it has placed on understanding the
nature of Federal underwriting risk. As demonstrated
by the Federal bailouts of the thrift industry and the
Farm Credit System, improperly accounting for under
writing risk often leads to spending Federal tax dollars
in ways that few taxpayers would voluntarily choose.
In particular, lack of timely information often transfers
the cost of a program away from current beneficiaries
to later generations of taxpayers. Credit reform at
tempts to limit this practice by forcing policy-makers
to recognize the costs of Federal programs at the time
commitments to underwrite the program’s risks are un
dertaken.
Properly managing underwriting risk is predicated
on the ability to fully measure the nature of the under
lying risks within a particular program. These risks
include credit risk, systemic (volatility) risk, and inter
est rate risk.
• Credit risk is the risk that a particular borrower
will default, transferring the loss to the Federal
Government. Credit reform has focused attention
on improving agency estimates of defaults for co
horts of loans, but further work is needed to im
prove these estimates.
• Systemic risk relates to losses in Federal credit
and insurance programs caused by general trends
and volatility in the economy. The bailouts of the
thrift industry and the Farm Credit System
graphically demonstrate the danger in failing to
account for this risk.
• Interest rate risk is the risk that fluctuations in
the term structure of interest rates may lead to
adverse changes in Federal program costs. Pro
grams with interest supplements provide a clear
indication of the need to account for the full dis
tribution of possible futxire interest rate move
ments.
Quantifying these risks often involves the difficult
task of valuing a group of loan guarantees or direct
loans based on historical repayment patterns of the
existing program or similar programs. Efforts along
these lines are underway at the Department of Edu
cation and at the Export-Import Bank, where the analy
sis of risk is being disaggregated along similar lines
as the above three categories.
This estimation approach becomes difficult, however,
when repayment histories are unavailable; often, as the
result of poor data. Fortunately, analysts have been
increasingly able to turn to standard finance theory
and contingent claims analysis for valuing these credit
programs. Contingent claims analysis allows for the
valuation of a Federal credit or insurance instrument
whose value is not directly known but can be expressed
10. UNDERWRITING FEDERAL CREDIT AND INSURANCE
as a function of the value of another security for which
data is available. As an example, the value of a loan
guarantee to a specific company can be valued as a
function of the underlying value of that company, usu
ally expressed using the value of the company’s stock.
Over the past year, contingent claims models were
used in improving the estimates of VA mortgage de
faults and prepayments and in estimating the deposit
insurance and pension insurance subsidies. These ef
forts have clearly increased the Federal Government’s
understanding of the risks inherent in these programs;
and suggest a broader applicability of contingent claims
pricing in Federal credit programs. Additional work is
needed, however, across all agencies. Refining subsidy
estimates and developing the tools necessary for quan
tifying risk will become increasingly important as the
wave of financial innovation begins to extend into the
design of Federal programs. Credit reform provides the
framework and the mandate for developing the tools
needed for managing this risk.
Financial Management
To meet the goal of designing and administering loan
programs to avoid unnecessary losses, OMB undertook
several initiatives in 1993 to improve credit manage
ment in the areas of loan origination and servicing.
These initiatives focused on providing agencies with the
tools to decrease delinquencies and increase collections,
and included:
• Lender Agreements: OMB and Treasury have been
working with credit agencies to develop agree
ments with private lenders participating in guar
anteed loan programs. Standard lender agree
ments will provide a uniform format for both the
Government’s and lenders’ responsibilities in guar
anteed loan programs. A lender agreement for
farm programs has been adopted. A proposed
agreement has been developed for housing pro
grams, and will be published in the Federal Reg
ister for public comment early in 1994.
• Credit Screening: Persons who previously de
faulted on Government loans are a high risk for
new loans. Loan origination has been improved
through expanded use of the Department of Hous
ing and Urban Development’s computerized sys
tem for screening loan applicants for defaults on
previous HUD loans (the CAIVRS system). The
data base now also includes information on delin
quent and defaulted debts from the Departments
of Agriculture, Education, Veterans Affairs, and
the Small Business Administration. VA has begun
using CAIVRS for screening of its housing loan
applicants. Next year, other credit agencies will
147
begin accessing the system for the screening of
new loan applicants.
Early intervention is the key to reducing the Govern
ment’s default losses. The Federal Government uses
several tools in its debt collection program, including:
private collection agencies, IRS income tax refund off
set, administrative offset, federal salary offset, and liti
gation. In 1993, a new Govemmentwide private collec
tion agency contract was let, improving the debt collec
tion service to Federal agencies. During 1993, the Gov
ernment collected over $69 million through contracts
with private collection agencies administered by the De
partment of Education and the General Services Ad
ministration. In addition, over $836 million in delin
quent debts were collected as the result of tax refund,
administrative, and Federal salary offsets. During the
past year, delinquent non-tax receivables decreased
from $47 billion to $44 billion—the first significant
since govemmentwide numbers became available in
1985. The decrease is attributable to improved collec
tions and write-offs of old uncollectible receivables. New
debt collection initiatives include:
• Debt Collection Legislation: Debt collection legisla
tion was introduced and passed in the House of
Representatives as part of the Government Reform
and Savings Act of 1993 (HR 3400). Key provisions
of this legislation would: (1) allow agencies to re
tain a portion of collections to use for debt collec
tion activities; (2) expand the use of private collec
tion agencies to Customs and HHS; and (3) in
crease Justice’s use of private law firms for legal
services to litigate and collect delinquent debts.
• Financial Litigation: Litigation is often the most
effective tool in delinquent debt collection. In
1993, agencies reported that the Department of
Justice collected $334 million for cases referred
for litigation. To improve its litigation efforts, Jus
tice contracted for the development and implemen
tation of a financial litigation and collection man
agement information system. Legislation passed
in 1993 will allow Justice to pay for this system
by retaining a small percentage of collections.
To improve credit management, OMB and the major
credit agencies are developing “performance agree
ments” for credit management and debt collection ac
tivities. These agreements would lay out agency com
mitments for the achievement of collection and default
goals of the next 12 to 18 months. In return for these
commitments, OMB will give agencies the flexibility
to determine the best strategy for meeting these goals,
rather than mandating the use of certain govemment
wide credit management and debt collection tools and
techniques.
148
ANALYTICAL PERSPECTIVES
TABLE 10-3.
ESTIMATED 1995 SUBSIDY RATES, BUDGET AUTHORITY, AND LOAN LEVELS FOR
DIRECT LOANS i
(In millions of dollars)
Agency and Program
Funds Appropriated to the President:
Micro and small enterprise development...........................................................
Regional peace and security (formerly FMF) ....................................................
Overseas Private Investment Corporation..........................................................
Agriculture:
Agricultural credit insurance fund...........................................................................
Rural telecommunication partnership loans...........................................................
Rural housing and community development service .............................................
Self-help housing...................................................................................................
Rural housing insurance fund................................................................................
Rural development loans........................................................................................
Rural economic development loans.......................................................................
Rural electric and telephone..................................................................................
Rural electric and telephone refinancing (mandatory) ...........................................
Rural telephone bank.............................................................................................
Rural utilities service ..............................................................................................
Public Law 480 direct loans...................................................................................
Education:
Federal direct student loan program .....................................................................
Housing and Urban Development:
FHA-mutual mortgage insurance direct loans........................................................
FHA-general and special risk direct loans .............................................................
Interior:
Bureau of Reclamation loans.................................................................................
State Department: Repatriation loans........................................................................
Transportation:
Minority business resource center program ...........................................................
Veterans Affairs:
Transitional housing loans......................................................................................
Direct loan..............................................................................................................
Loan guarantee fund..............................................................................................
Guaranty and indemnity fund.................................................................................
Education loan fund................................................................................................
Vocational rehabilitation..........................................................................................
Other Independent Agencies:
Community development financial institutions fund ...............................................
Export-lmport Bank2 ...............................................................................................
Federal Emergency Management Agency:
Disaster assistance............................................................................................
Small Business Administration:
Business Loans..................................................................................................
Disaster loans.....................................................................................................
Total .......................................................................................................................
1995 Weighted av
erage subsidy as a
percent of disburse
ments
1995 Subsidy
budget authority
8.10
7.74
14.22
*
60
3
1
770
20
13.30
4.24
9.50
2.99
14.03
52.25
23.92
1.40
16.85
0.02
13.97
81.06
125
1
28
*
937
15
300
*
315
65
3
19
13
*
136
278
2,248
125
13
1,354
1,500
175
977
340
7.32
349
4,765
180
220
27.49
80.00
3
1
11
1
10.00
2
15
10.00
11.76
2.34
1.06
26.47
2.80
*
*
*
*
18
6
*
*
783
554
*
2
13.19
17.91
20
371
152
2,070
9.67
2
25
2.99
12.67
52
412
1,869
16,464
*$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 1995.
2 Includes FY 1993 and 1994 carryover budget authority.
1995 Estimated
loan levels
149
10. UNDERWRITING FEDERAL CREDIT AND INSURANCE
TABLE 10-4.
ESTIMATED 1995 SUBSIDY RATES, BUDGET AUTHORITY, AND LOAN LEVELS FOR
LOAN GUARANTEES i
(In millions of dollars)
1995 Weightedaverage subsidy as
a percent of
disbursements
Agency and Program
Funds Appropriated to the President:
Micro and small enterprise development..........................................................
AID housing and other credit guarantees..........................................................
Overseas Private Investment Corporation.........................................................
Agriculture:
Agricultural credit insurance fund...........................................................................
Agricultural resource conservation demonstration..................................................
Commodity Credit Corporation: Export credits......................................................
Rural housing and community development service .............................................
Rural housing insurance fund................................................................................
Rural business and cooperative development service...........................................
Commerce:
Economic development guarantees.......................................................................
Education:
Federal family education loan program.................................................................
Health and Human Services:
Health professions graduate student loan program...............................................
Housing and Urban Development:
Community development (Sec. 108)......................................................................
Federal Housing Administration general and special risk 2 ...................................
Federal Housing Administration mutual mortgage.................................................
GNMA secondary mortgage guarantees ...............................................................
Community development loan guarantees............................................................
Interior:
Indian loan guaranty and insurance fund..............................................................
Transportation:
Title XI maritime guaranteed loans........................................................................
Veterans Affairs:
Guaranty and indemnity fund.................................................................................
Loan guaranty fund ................................................................................................
Other Independent Agencies:
Export-lmport Bank3 .............................. ................................................................
Small Business Administration:
Business Loans..................................................................................................
1995 Subsidy
budget authority
1995 Estimated
loan levels
5.46
14.55
1.83
1
12
9
26
82
482
2.49
56.10
6.92
4.97
1.72
0.95
72
3
394
4
22
11
2,879
6
5,700
75
1,300
1,116
18.56
50
269
11.26
1,844
16,382
6.74
25
375
3.73
-2.78
152
18.09
10
47
9.88
50
500
1.18
13.34
357
*
30,256
2
4.34
675
15,565
2.99
318
11,419
4,009
325,255
Total...................................................................................................................
2,054
19,685
84,982
130,000
2,054
*$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 1995.
2 Subsidy rate shown is for positive subsidy risk categories only.
3 Includes FY 1993 and 1994 carryover budget authority.
TABLE 10-5. SUMMARY OF FEDERAL DIRECT LOANS AND LOAN GUARANTEES
(In billions of dollars)
Actual
1992
Direct Loans:
Obligations.............................................................................
Disbursements.......................................................................
Loan Guarantees:
Commitments..........................................................................
Lender Disbursements...........................................................
Estimate
1993
1994
1995
1996
1997
1998
1999
16.4
26.1
22.1
27.1
19.9
27.1
25.9
31.4
31.0
40.5
33.0
46.6
35.5
51.3
38.4
56.6
130.2
105.3
169.9
144.3
199.1
166.8
195.3
162.5
175.0
159.0
161.1
155.5
159.5
154.8
158.9
155.7
150
ANALYTICAL PERSPECTIVES
TABLE 10-6. SUBSIDY BUDGET AUTHORITY FOR DIRECT LOANS AND GUARANTEED LOANS BY FUNCTION
(In m
illions of dollars)
Estimate
Direct loan subsidy budget authority
Function
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....................................................
Guaranteed loan subsidy budget authority
1995
1994
1995
50
697
508
469
492
468
423
74
1,844
26
3
357
14
1,261
19
3
322
4,009
3,018
78
13
140
723
709
32
3
125
315
520
42
3
125
315
38
349
290
707
29
24
36
467
356
250
38
2,254
26
1
462
2,038
4,547
2,008
Total......................................................................................
ADDENDUM
Secondary guaranteed loans .
1996
50
643
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.
TABLE 10-7. NEW DIRECT LOAN OBLIGATIONS AND GUARANTEED LOAN COMMITMENTS BY FUNCTION
(In millions of dollars)
Direct loan obligations
Function
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..................................................................................................................................
ADDENDUM
Secondary guaranteed loans.............................................................................................
1 Commitments
1993
actual
1994
estimate
Guaranteed loan commitments
1995
estimate
1993 ac
tual
1994
estimate
1995
estimate
953
16,749
500
17,963
8,584
117,959
35,434
8,186
109,140
5
2,656
19,160
375
7
41,852
169,871
199,084
195,755
107,700
130,000
130,000
15,774
3,705
2,136
70
9,813
2,228
174
2,446
30
3,128
1,537
21
8,244
2,768
50
2,225
489
3,208
1,438
11
10,098
2,750
58
2,178
4,765
7,871
90,198
1,539
1,412
1,401
22,141
19,875
25,906
838
19,415
340
3,561
16,532
375
22
30,259
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.
151
10. UNDERWRITING FEDERAL CREDIT AND INSURANCE
TABLE 10-6.
DIRECT LOAN WRITE-OFFS AND GUARANTEED LOAN TERMINATIONS FOR DEFAULTS
In millions of dollars
Agency or Program
Direct loans:
Economic assistance loans.............................................
Private sector revolving fund...........................................
Foteign miliatary loans ....................................................
Rural development insurance fund .................................
Commodity Credit Corporation........................................
Agricultural credit insurance fund....................................
Rural housing insurance fund.........................................
Rural development loan ..................................................
Public Law 480 Food A id................................................
Higher Education ............................................................
Federal direct student loan .............................................
Economic development revolving fund (EDA)................
Interior Revolving Fund ..................................................
Indian loan guaranty and insurance fund (liquidating)....
Federal ship financing fund.............................................
MARAD ship financing fund...........................................
Veteran’s housing programs ..........................................
Small Business Administration.......................................
Export-lmport Bank.........................................................
Tennessee Valley Authority............................................
Total.......................................................................
Guaranteed loans:
Housing and other credit guaranty programs.................
Private sector revolving fund..........................................
Micro and small enterprise development........................
Overseas Private Investment Corporation......................
Agricultural credit insurance fund...................................
CCC export credit guarantees .......................................
Rural development insurance fund................................
Rural housing insurance.................................................
Economic development revolving fund...........................
Federal family education loans......................................
Federal Housing Administration fund.............................
Health professions guaranteed student loan..................
Indian loan guaranty and insurance fund.......................
Federal ship financing fund............................................
MARAD ship financing fund...........................................
Veteran’s housing programs ..........................................
Small business administration........................................
Export-lmport Bank.........................................................
1993
actual
As percentage of outstanding loans 1
1995 esti-
^ e s ti
mate
4.1
8.3
598
1
1993
1
6
259
1,095
133
6
924
125
1
9.5
0.1
11
834
124
1
2.8
7.6
14.3
0.9
1995 esti-
12.5
_
1.2
6.7
0.4
1.2
6.6
0.4
0.3
5.9
3.9
5.7
0.3
12.4
1.4
0.7
11.3
1.6
1.2
0.8
1.1
2.3
34.9
5.0
33
4
4.3
6.8
1.2
50
23
107
58
2
50
25
94
67
2
1.2
1.1
1.0
2,709
1,321
1,218
5.2
1.3
1.2
17
22
23
0.8
33
273
1
9
64
0
1
1
67
27
*
490
40
3
3
128
5,803
30
5
665
5,409
36
9
0
32
7
3.3
6.9
1.6
1.6
2.3
0
13.2
1.1
1.1
3.7
3.0
2.0
1.0
5.0
14.7
0.3
0.9
3.5
1.4
1.3
4.0
0.6
5.8
0.9
3.3
3.2
1.3
0
5.6
0.4
10.0
1,286
5,972
37
10
1
1
1
3
1,880
497
99
1,414
716
7
99
1,134
745
16
8.9
3.1
2.3
2.4
0.5
0.2
2.3
2.4
1.2
3.8
0.7
7.1
0.6
2.9
0.1
Total.......................................................................
8,467
8,974
9,431
3.5
1.5
Defaulted guaranteed loans that result in loans receivable:
Economic development revolving fund ...........................
CCC export loans...........................................................
Federal family education loans ......................................
Federal Housing Administration .....................................
Health professions guaranteed student loan..................
Veterans housing programs ...........................................
Small Business Administration.......................................
5
749
504
1,161
13
838
43
545
635
680
15
769
17
121
748
710
16
589
49
14.0
6.6
20.4
8.1
65.7
15.5
10.3
4.2
5.9
4.4
49.8
2.4
3.9
49.0
4.1
Total.......................................................................
3,313
2,661
2,233
18.7
7.9
6.5
Grand Total ............................................................
14,489
12,956
12,882
i Average of loans outstanding over year.
1.3
2.2
5.0
6.2
152
ANALYTICAL PERSPECTIVES
TABLE 10-9. APPROPRIATIONS ACTS LIMITATIONS ON CREDIT LOAN LEVELS
(In millions of dollars)
Agency or Program
Estimate
1993
actual
1994
1995
LIMITATIONS ON DIRECT LOAN OBLIGATIONS
Funds Appropriated to the President:
AID Micro and small enterprise development1 ......................................................
Overseas Private Investment Corporation1 ...........................................................
Regional peace and security (formerly FM F).........................................................
Agriculture:
Farmers Home Administration:
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 ...............................................................
Housing and Urban Development:
FHA-General and special risk................................................................................
FHA-Mutual mortgage insurance ...........................................................................
Interior:
Bureau of Reclamation direct loans ......................................................................
Indian direct loan...................................................................................................
State Department:
Repatriation Loans..................................................................................................
Transportation:
AMTRAK Corridor Improvement Loans.................................................................
Orange County (CA) toll road................................................................................
Minority business resource center.........................................................................
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-lmport Bank1 ...................................................................................................
FEMA—Disaster assistance .......................................................................................
Community development financial institutions fund....................................................
Total, limitations on direct loan obligations ...................................................
5
30
855
16
770
1
20
770
1,090
2,103
1,010
2,558
1
937
2,248
747
34
1,059
100
1,277
125
510
68
450
340
12
2,077
177
13
1,588
200
13
1,354
175
29
220
180
8
11
21
11
11
1
1
1
4
120
8
8
15
1
1
1
58
2
2
2
1,721
40
1,873
25
2,070
25
152
9,781
9,707
9,937
70
153
10. UNDERWRITING FEDERAL CREDIT AND INSURANCE
TABLE 10-9. APPROPRIATIONS ACTS LIMITATIONS ON CREDIT LOAN LEVELS-Continued
(In millions of dollars)
Estimate
1993
actual
1994
1995
LIMITATIONS ON GUARANTEED LOAN COMMITMENTS
Funds Appropriated to the President:
Loan guarantees to Israel......................................................................................
Micro and small enterprise development...............................................................
AID housing and other credit.................................................................................
Overseas Private Investment Corporation1 ...........................................................
Agriculture:
Agricultural credit insurance fund...........................................................................
Agricultural resource conservation demo (Farms for the future)...........................
Rural development insurance fund........................................................................
Rural housing insurance fund................................................................................
Alcohol fuels credit................................................................................................
Commerce:
Fishing vessel obligations guarantee.....................................................................
Economic development guaranteed loan...............................................................
Education:
Historically blade 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 ..........................................................
Indian Housing loan guarantee..............................................................................
Interior:
Indian loan guaranty and insurance......................................................................
Transportation:
Maritime guaranteed loans (Title X I)..........................................................................
Railroad rehabilitation and improvement....................................................................
Export-lmport Bank 2 ..................................................................................................
Total, limitations on guaranteed loan commitments..........................................
2,000
76
150
375
2,000
25
110
375
2,000
26
82
482
2,229
7
390
580
2,608
7
360
750
30
2,879
6
1,191
1,300
47
46
269
357
340
375
375
11,792
100,000
2,000
15,436
84,565
2,054
7
19,685
84,982
2,054
22
69
69
47
0
500
13,315
0
5
14,782
15,565
133,370
123,961
131,465
1,077,000
130,000
130,000
ADDENDUM
Secondary guaranteed loan commitment limitations:
GNMA, mortgage-backed securities ......................................................................
1The appropriations language for this program specifies a limitation that applies to direct and guaranteed loans in total.
appropriations language for this program does not include direct loan or loan guarantee limitations.
2 The
154
ANALYTICAL PERSPECTIVES
TABLE 10-10.
DIRECT LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT i
(In millions of dollars)
Agency or Program
1994 estimate
Agency or Program
Outstandings..............................
Funds Appropriated to the President
Multilateral Assistance
International organizations and programs:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
1993
actal
1994 estim
ate 1995 estim
ate
8
8
8
-4 6
554
-5 4
500
-5 6
445
497
-2 8 4
9,037
497
-3 8 8
8,649
525
-4 7 3
8,176
855
770
456
456
456
770
484
484
940
3
3
3
3
International Debt Reduction
-2
40
-2
38
-2
36
Debt reduction, financing account:
Obligations...................................
Loan disbursements.....................
Change in outstandings...............
Outstandings..............................
Agency for International Development
Regional Peace, Security and Defense
Cooperation
Economic assistance loans—liquidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
37
-1,287
14,435
12
11
-381
14,054
-3 5 2
13,702
Housing and other credit guaranty programs liq
uidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
85
55
368
64
34
402
64
34
435
3
-3
9
-2
7
Private sector revolving fund liquidating account:
Obligations..................................................
Loan disbursements ...................................
Change in outstandings.............................
Outstandings.............................................
2
Micro and small enterprise development direct
loan financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Agricultural credit insurance fund liquidating ac
count:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
-16
49
9
-2
47
6
-2,158
13,205
6
-1,740
11,465
3
-1,433
10,032
Agricultural credit insurance fund direct loan fi
nancing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
723
709
341
985
1,215
1,116
768
1,754
937
932
244
1,998
9,090
9,090
886
3,411
7,030
7,030
-381
3,029
9,161
9,161
-3 9 0
2,639
Commodity Credit Corporation export guarantee
financing account (acquisition of defaulted
guarantees):
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
571
558
558
453
9
567
421
395
962
Commodity credit corporation guaranteed loans
liquidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
756
453
4,794
562
-9 0
4,704
124
-4 2
4,662
Commodity credit corporation price supports:
Obligations.............................................
Loan disbursements...............................
Change in outstandings.........................
Outstandings........................................
Overseas Private Investment Corporation
Overseas private investment corporation guaran
teed loan financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Military debt reduction financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Farm Service Agency
Housing and other credit guaranty programs
guaranteed loan financing account:
Obligations........,.........................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Overseas Private Investment Corporation direct
loan financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Regional peace and security direct loan financ
ing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Department of Agriculture
Micro and small enterprise development guaran
teed loan financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Overseas Private Investment Corporation liq
uidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
Foreign military loan liquidating account:
Obligations............................................
Loan disbursements.............................
Change in outstandings.......................
Outstandings......................................
-8
39
26
39
36
51
155
10. UNDERWRITING FEDERAL CREDIT AND INSURANCE
TABLE 10-10.
DIRECT LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT i-Contlnued
(In millions of dollars)
Agency or Program
1993 actual
1994 estimate
1995 estimate
Rural Utilities Service
Change in outstandings........................................
Outstandings.............................................
Rural development insurance fund liquidating ac
count:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
306
89
4,723
208
-3 4
4,689
29
-211
4,477
Rural electrification and telephone direct loan fi
nancing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
2,077
877
845
1,488
1,459
916
877
2,365
1,354
1,014
970
3,335
Rural telephone bank direct loan financing ac
count:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
175
24
24
28
200
84
84
112
175
112
112
224
Rural development insurance fund direct loan fi
nancing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
747
185
183
213
1,059
545
542
755
1,277
745
736
1,491
Rural electrification and telephone revolving fund
liquidating account:2
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
571
-1,435
34,564
689
-641
33,922
504
-5 3 0
33,392
Rural telephone bank liquidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
85
-1 7
1,706
62
-2 2
1,684
46
-3 0
1,654
Rural Housing and Community Development
Service
Rural housing insurance fund liquidating ac
count:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Rural communication development fund (liquidat
ing):
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Self-help housing land development fund liq
uidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
1993 acual
1994 estimate
1,769
3,133
1996 estimate
2,391
5,524
2,379
7,903
_♦
Rural Business and Cooperative Development
Service
Rural economic development loans liquidating
account:
Obligations..................................................
Loan disbursements ...................................
Change in outstandings..............................
Outstandings.............................................
1
2
10
11
-1
9
REA—economic development loans financing
account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings............................................................
12
6
6
7
13
12
12
18
13
14
11
30
Rural development direct loan financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
34
9
9
9
100
29
29
38
125
49
49
87
7
7
7
-3
-3
3
13
11
79
12
8
87
5
2
89
Expenses, Public Law 480, foreign assistance
programs (liquidating):
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
-5 1 7
11,115
-3 5 9
10,755
-3 2 9
10,427
P.L 480 Direct credit financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
460
464
464
660
450
459
459
1,120
340
356
356
1,476
Alcohol fuels credit insurance guarantee financ
ing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Rural development loan fund (liquidating):
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
International Agricultural Trade Service
102
-1,696
26,642
-2
12
28
-1,520
25,122
-1
11
8
-1,457
23,666
-1
10
Self-help housing direct loan financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
1
1
1
Rural housing insurance fund direct loan financ
ing account:
Obligations..................................................
Loan disbursements...................................
2,056
1,795
2,538
2,427
2,248
2,462
Agency or Program
1
1
P.L. 480 Title I Food for Progress Credits, fi
nancing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Debt reduction—financing account:
Obligations..................................................
Loan disbursements...................................
599
62
68
156
ANALYTICAL PERSPECTIVES
TABLE 10-10.
DIRECT LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT i-Continued
(In millions of dollars)
Agency or Program
Change in outstandings.............................
Outstandings.............................................
1993 actual
1994 estimate
1995 estimate
67
-1
66
Miscellaneous appropriations:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
3
-4 5
92
-4
60
-1 5
77
-2
58
-8
69
-2
57
National Oceanic and Atmospheric
Administration
Federal ship financing fund, fishing vessels liq
uidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
3
-3
10
5
-4
5
2
-1
4
Department of Defense—Military
Revolving and Management Funds
Defense business operations fund:
Obligations..................................................
.......
Loan disbursements . . .
Change in outstandings..............................
Outstandings.............................................
1994 estimate
1993 actual
1995 estimate
-4 8
1,528
-4 9
1,480
-4 7
1,432
Department of Education
Outstandings.............................................
555
540
511
Federal family education loan program, financing
account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
67
67
Department of Commerce
Economic Development Administration
Economic development revolving fund liquidating
account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
Agency or Program
122
122
122
647
597
719
1,258
1,091
1,810
3
3
3
18
18
20
489
304
302
302
4,765
3,106
3,072
3,373
College housing and academic facilities direct
loan financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
29
Federal direct stud, loan program, financing ac
count:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Federal family education loan liquidating ac
count:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
2,560
1,006
14,798
1,670
-4 1 6
14,381
1,085
-1,202
13,179
Guarantees of SLMA obligations (FFEL) liquidat
ing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
-3 0
4,790
-2,030
2,760
-3 0
2,730
*
*
3
3
2
21
16
521
23
17
538
24
18
557
Office of Postsecondary Education
Energy Programs
Student financial assistance:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Energy supply, R&D activities:
Obligations..................................................
Loan disbursements...................................
Change in outstandings ............................
Outstandings.............................................
Higher education:
Obligations
........................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
Higher education facilities loans:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
31
319
5
324
10
334
Power Marketing Administration
Bonneville Power Administration fund:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
-1
-7
69
-6
63
-6
58
College housing and academic facilities loans
liquidating account:
Obligations
.................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
12
10
120
31
29
149
2
-5
143
College housing loans:
Obligations
..................................
Loan disbursements...................................
Change in outstandings..............................
7
-3 7
18
-1 5
4
-2 9
-*
Department of Health and Human Services
Health Resources and Services Administration
Health Resources and Services:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Health professions graduate student loan guar
anteed loan financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandinas.............................................
•
157
10. UNDERWRITING FEDERAL CREDIT AND INSURANCE
TABLE 10-10.
DIRECT LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT i-Contlnued
(In millions of dollars)
Agency or Program
Health professions graduate student loan insur
ance fund liquidat:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
Health loan funds:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
1994 estimate
1993 actual
56
60
309
1
-3 1
82
65
70
379
2
-9
73
1995 estimate
67
73
452
2
-8
66
Department of Housing and Urban
Development
Nonprofit sponsor assistance liquidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
Flexible Subsidy Fund:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
*
•
_#
2
85
85
367
1
129
128
494
1
94
93
588
577
51
3,366
463
-1 9 6
3,170
FHA general and special risk insurance funds
liquidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
898
-4 0 4
7,792
966
231
8,023
939
-3 9 3
7,630
180
180
179
179
27
27
27
160
156
183
389
377
560
-5 2
1,801
-5 4
1,747
-5 8
1,689
624
-1 4 9
477
829
-7 3
405
792
-4 5
359
Revolving fund (liquidating programs):
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
11
-5 2
504
6
-5 0
454
5
-4 9
405
Community development guaranteed loans liq
uidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
-4 3
131
-2 5
106
-2 0
86
Loan program liquidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
7
3
95
1
-2
93
-3
89
Bureau of Reclamation direct loan financing ac
count:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
6
7
7
10
21
18
18
28
11
11
11
39
Emergency fund:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
-1
7
-1
7
-1
6
Guarantees of mortgage-backed securities liq
uidating account:
Obligations..................................................
Loan disbursements ...................................
Change in outstandings..............................
Outstandings.............................................
Community Planning and Development
Department of the Interior
Bureau of Reclamation
7
7
7
163
153
159
FHA-General and special risk direct loan financ
ing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
http://fraser.stlouisfed.org/ 0 -9 4 -6 (QL 3)
150-003
Federal Reserve Bank of St. Louis
FHA-mutual mortgage insurance guaranteed
loan financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
1995 estimate
Government National Mortgage Association
906
459
3,315
Housing for the elderly or handicapped fund liq
uidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
1994 estimate
FHA-mutual mortgage insurance direct loan fi
nancing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Low-rent public housing—loans and other ex
penses:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
FHA-mutual mortgage and cooperative housing
insurance funds liquidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
FHA-General and special risk guaranteed loan
financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
1993 actual
Public and Indian Housing Programs
Housing Programs
Community disposal operations fund:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
Agency or Program
312
294
454
220
220
219
219
84
25
8,497
227
167
8,664
-6 2
8,602
158
ANALYTICAL PERSPECTIVES
TABLE 10-10.
DIRECT LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT’—Continued
(In millions of dollars)
Agency or Program
1993 ackial
1994 estimate
1995 estimate
National Park Service
Construction:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
8
8
_*
7
Bureau of Indian Affairs
-1 6
80
-7
72
-7
66
Indian loan guaranty and insurance fund liquidat
ing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
10
10
50
10
7
57
10
5
61
3
3
3
12
11
10
20
5
5
9
11
11
9
29
-2
-4
25
Territorial and International Affairs
Guam Power Liquidating Account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
1994 estimate
1995 estimate
Right-of-way revolving fund (trust revolving fund):
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
39
30
9
139
42
42
42
42
139
139
Amtrak corridor improvement loans liquidating
account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
7
7
7
Amtrak corridor improvement direct loan financ
ing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
2
1
1
3
2
2
6
6
Railroad rehabilitation and improvement liquidat
ing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
-3
82
—4
78
-4
75
6
6
6
-1
5
Federal Railroad Administration
Indian guaranteed loan financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Administration of territories:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
1993 acUal
Change in outstandings..............................
Outstandings.............................................
Revolving fund for loans liquidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Indian direct loan financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Agency or Program
-1
23
-1
22
-1
21
Railroad rehabilitation and improvement direct
loan financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Federal Transit Administration
Miscellaneous expired accounts:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
-8
5
Department of State
Maritime Administration
Administration of Foreign Affairs
Federal ship financing fund liquidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
-1 7 7
177
Repatriation loans liquidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
—*
—*
—*
5
-2 8
501
200
112
613
200
86
699
Minority business resource center direct loan fi
nancing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
8
3
3
3
8
12
9
12
15
15
3
15
Minority business resource center liquidating ac
count:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
1
1
1
Office of the Secretary
Repatriation loans financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
1
1
1
1
1
*
♦
*
Department of Transportation
Federal Highway Administration
Orange County (CA) toll road demonstration
project direct loan financing account:
Obligations..................................................
Loan disbursements...................................
120
159
10. UNDERWRITING FEDERAL CREDIT AND INSURANCE
TABLE 10-10.
DIRECT LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT i-Continued
(In millions of dollars)
Agency or Program
1993 actual
1994 estimate
1995 estimate
Department of the Treasury
Guaranty and indemnity direct loan financing ac
count:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Financial Management Service
Emergency assistance to Rhode Island direct
loan financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
-9 5
30
Veterans Health Administration
Transitional housing loans, financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
*
-*
Veterans Benefits Administration
115
34
53
109
29
81
103
37
118
Direct loan revolving fund liquidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
-9
20
-6
14
-4
9
Loan guaranty revolving fund liquidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
490
-4 2 8
2,654
350
-5 2 4
2,130
251
-4 3 5
1,695
Vocational rehabilitation direct loan financing ac
count:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
1993
acDai
1994 estim
ate 1995 estim
ate
211
221
2
55
336
336
89
144
554
554
146
290
Direct loan financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
-3 0
Department of Veterans Affairs
Guaranty and indemnity fund liquidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
A
gency or Program
*
*
*
*
*
*
1
1
1
Guaranty and indemnity guaranteed loan financ
ing account:
Obligations..................................................
Loan disbursements ...................................
Change in outstandings..............................
Outstandings.............................................
7
4
4
18
7
11
31
9
20
7
7
7
7
11
11
11
18
Native american veteran housing direct loan fi
nancing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
*
*
Environmental Protection Agency
Environmental Protection Agency
2
2
2
2
1
1
6
-5
118
11
-1
117
2
-1 0
107
Abatement, control, and compliance direct loan
financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
64
19
19
21
46
44
65
22
16
81
Pollution control equipment fund liquidating ac
count:
Obligations..................................................
Loan disbursements ...................................
Change in outstandings..............................
Outstandings.............................................
2
2
Abatement, control, and compliance direct loan
liquidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
19
-3 3
30
10
-2
28
5
-6
22
Business direct loan financing account:
Obligations..................................................
Loan disbursements ...................................
Change in outstandings.............................
Outstandings.............................................
76
59
54
89
137
102
82
172
58
23
195
Business guaranteed loan financing account:
Obligations..................................................
Loan disbursements....................................
Change in outstandings..............................
Outstandings.............................................
80
75
90
225
198
288
476
390
678
Disaster direct loan financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
1,419
1,022
929
817
980
751
412
668
345
1
Small Business Administration
Education direct loan financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
Education loan fund liquidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
Loan guaranty direct loan financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings.............................
Outstandings.............................................
Loan guaranty guaranteed loan financing ac
count:
Obligations..................................................
Loan disbursements
..............................
Change in outstandings..............................
Outstandings.............................................
Small Business Administration
-1 0
4
1,326
1,376
-5 4
291
_*
-1
3
1,008
1,046
151
442
-1
3
783
813
102
544
160
ANALYTICAL PERSPECTIVES
TABLE 10-10.
DIRECT LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT ’—Continued
(In millions of dollars)
Agency or Program
Outstandings.............................................
Disaster loan fund liquidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Business loan fund liquidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
1993 actual
1994 estimate
1995 estimate
2,059
2,404
27
-3 9 8
2,531
5
-3 8 9
2,141
-3 3 3
1,808
859
706
3,988
660
178
4,165
425
-3 3
4,132
District of Columbia
-1 6 0
99
-1 2
87
-1 2
75
Export-lmport Bank of the United States
470
-7 9 9
7,865
1,721
312
263
344
366
-7 9 7
7,068
135
-6 7 8
6,390
18
18
18
Debt reduction financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Export-lmport Bank direct loan financing ac
count:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
28
28
46
1,873
735
630
974
2,070
1,205
920
1,894
Farm Credit System Financial Assistance
Corporation
Financial assistance corporation assistance fund,
liquidating account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
1995 estimate
160
159
160
-7 1
89
89
Disaster assistance direct loan liquidating ac
count:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
-7 8
52
-2 7
25
-2 5
47
47
6
19
25
25
25
25
19
19
7
7
-9 5
7
4
1
-2
5
2
1
-1
4
89
89
89
100
100
FSLIC Resolution
FSUC resolution 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.............................................
1
2
2
6
6
6
Tennessee Valley Authority
Tennessee Valley Authority fund:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
59
59
-2,197
166
77
77
24
191
83
83
31
221
Community Development Financial Institutions
1,182
1,182
-7 4
1,108
-2 4
1,084
Bank Insurance
Bank insurance fund:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
1993 actual
Federal Emergency Management Agency
Appalachian Regional Commission
Export-lmport Bank of the United States liquidat
ing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
1994 estimate
Disaster assistance direct loan financing ac
count:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
1,308
Other Independent Agencies
Loans to the District of Columbia for capital
projects:
Obligations..................................................
Loan disbursements...................................
Change in outstandings...... .....................
Outstandings.............................................
Agency or Program
-2 1
16
16
16
Comunnity development financial institutions
fund direct loan financing account:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
Total, Direct loan transactions:
Obligations..................................................
Loan disbursements...................................
Change in outstandings..............................
Outstandings.............................................
152
76
72
72
22,141
27,124
-1,714
200,625
19,816
27,061
86
200,106
25,855
31,427
4,394
204,535
1Indudes defaulted guaranteed loans fiat result in loans receivable.
* Outstandings in REA rural electrification and telephone revolving fund Iquidating account indude refinanced
loans (per OBRA 1993) of $5.5 blfion in 1994 and $15 bilion in 1995.
161
10. UNDERWRITING FEDERAL CREDIT AND INSURANCE
TABLE 10-11.
GUARANTEED LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT
(In millions of dollars)
Agency or Program
1993 actual
1994 estimate
1995 estimate
Agency for International Development
Housing and other credit guaranty programs liq
uidating account:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings.............................
Outstandings.............................................
2 ,0 0 0
2 ,0 0 0
2 ,0 0 0
2 ,0 0 0
44
4
2,047
1.563
1.563
1.563
3.563
44
-4
2,043
Private sector revolving fund liquidating account:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings.............................
Outstandings.............................................
5
5
19
16
16
35
Micro and small enterprise development guaran
teed loan financing account:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings.............................
Outstandings.............................................
19
13
13
13
19
28
28
40
Housing and other credit guaranty programs
guaranteed loan financing account:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings..............................
Outstandings.............................................
130
33
33
33
95
170
170
203
2 ,0 0 0
2 ,0 0 0
Overseas private investment corporation guaran
teed loan financing account:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings.............................
Outstandings.............................................
44
-7
2,036
-3
32
26
20
19
60
82
28
27
230
74
423
281
197
620
-8 9
531
310
140
131
140
290
302
302
441
289
322
308
749
-2 1
Regional Peace, Security and Defense
Cooperation
Foreign military loan liquidating account:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings.............................
Outstandings.............................................
-5 1 7
7,696
-5 4 7
7,148
-5 2 6
6,623
Department of Agriculture
Farm Service Agency
Agricultural credit insurance fund liquidating ac
count:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings.............................
Outstandings.............................................
1995 estimate
30
-1,139
3,044
8
-8 9 6
2,148
Agricultural resource conservation demonstration
guaranteed loan:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
7
17
17
17
7
7
7
24
6
6
6
29
Agricultural credit insurance fund guaranteed
loan financing account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
2,164
1,495
1,302
2,574
2,479
2,309
1,795
4,368
2,879
2,810
1,922
6,290
Commodity Credit Corporation export guarantee
financing account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
5,700
3,022
1,621
6,704
5.700
5.700
1,232
7,935
5.700
5.700
759
8,694
Commodity credit corporation guaranteed loans
liquidating account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
-1,849
2,088
-651
1,436
-2 2 6
1,210
Rural development insurance fund liquidating ac
count:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
46
-1 5 6
897
31
-1 9 6
702
7
-1 6 8
533
Rural development insurance guaranteed loan fi
nancing account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
540
75
75
204
515
140
135
339
1,191
471
467
805
Rural electrification and telephone revolving fund
liquidating account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
181
939
-1 7
922
-1 9
904
Rural housing insurance fund liquidating ac
count:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
1
-4
47
-4
43
-3
40
5
5
5
Rural housing insurance fund guaranteed loan fi
nancing account:
Commitments..............................................
New guaranteed loans................................
540
476
728
651
1,300
1,119
2 ,0 0 0
5,563
Overseas Private Investment Corporation
Overseas Private Investment Corporation liq
uidating account:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings.............................
Outstandings.............................................
1994 estimate
1993 actual
Rural communication development fund:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
Funds Appropriated to the President
Loan guarantee to Israel financing account:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings.............................
Outstandings.............................................
Agency or Program
-6 8 5
1,463
Rural Utilities Service
Rural Housing and Community Development
Service
162
ANALYTICAL PERSPECTIVES
TABLE 10-11. GUARANTEED LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT-Continued
(In millions of dollars)
Agency or Program
Change in outstandings..............................
Outstandings.............................................
1993 actual
472
574
1994 estimate
1995 estimate
637
1,210
1,088
2,298
Rural Business and Cooperative Development
Service
Alcohol fuels credit insurance guarantee financ
ing account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
19
5
5
5
7
6
11
Economic Development Administration
Economic development revolving fund liquidating
account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
269
3
3
3
-1 1
30
-7
24
-7
17
National Oceanic and Atmospheric
Administration
Fishing vessel obligations guarantees financing
account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
Federal ship financing fund, fishing vessels liq
uidating account:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings.............................
Outstandings.............................................
1995 estimate
Department of Health and Human Services
Health Resources and Services Administration
-1
12
-1
11
-1
10
Health professions graduate student loan guar
anteed loan financing account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
340
340
340
680
375
375
375
1,055
375
375
375
1,429
Health professions graduate student loan insur
ance fund liquidating account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
-6 2
1,935
-7 1
1,864
-7 6
1,788
Health loan funds (liquidating):
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
-5 4
375
-5 6
320
-4 0
279
FHA mutual mortgage and cooperative housing
insurance funds liquidating account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
-77,517
190,156
-8,014
182,142
-5,947
176,195
FHA general and spedal risk insurance funds
liquidating account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
-8,136
63,131
-7,363
55,768
-6,512
49,256
FHA-General and special risk guaranteed loan
finandng account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
9,284
9,769
9,679
14,755
15,436
12,355
11,734
26,488
19,685
15,637
13,853
40,341
FHA-mutual mortgage insurance guaranteed
loan finandng account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
72,989
62,502
61,736
94,331
84,565
64,198
58,193
152,524
84,982
64,403
57,339
209,863
-261
4,690
-3 0 0
4,390
-3 2 5
4,065
Housing Programs
47
2
2
2
-1 1 5
198
46
-8,114
43,966
Historically Black College and University Capital
finandng—finandng account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
Federal family education loan program, financing
account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
1994 estimate
Department of Housing and Urban
Development
46
47
45
46
-4 5
153
-4
42
-2 5
128
Department of Education
Office of Postsecondary Education
Federal family education loan liquidating ac
count:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings..............................
Outstandings.............................................
1993 actual
Health Resources and Services (liquidating):
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
Department of Commerce
Economic development guaranteed loan financ
ing account:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings..............................
Outstandings.............................................
Agency or Program
30
-7,592
36,374
20
19
-6,801
29,573
150
20
20
20
Public and Indian Housing Programs
19,415
14,703
13,132
21,575
19,140
17,325
15,669
37,244
16,382
16,062
12,722
49,966
Low-rent public housing—loans and other ex
penses (liquidating):
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
163
10. UNDERWRITING FEDERAL CREDIT AND INSURANCE
TABLE 10-11. GUARANTEED LOAN TRANSACTIONS OF THE FEDERAL GOVERNMENT-ConUnued
(In millions of dollars)
Agency or Program
1993 actual
1994 estimate
1996 estimate
Agency or Program
1993 actual
1994 estimate
1996 estimate
Federal Transit Administration
Indian housing loan guarantee—financing ac
count:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings..............................
Outstandings.............................................
7
6
6
6
22
19
18
24
Miscellaneous expired accounts:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
Government National Mortgage Association
Federal Aviation Administration
Guarantees of mortgage-backed securities liq
uidating account:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings..............................
Outstandings.............................................
Aircraft purchase loan guarantee program:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
-8 2 0
820
Guarantees of mortgage-backed securities fi
nancing account:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings.............................
Outstandings.............................................
116,912
-7,190
415,291
104,345
42,895
458,186
95,598
28,049
486,235
Community development guaranteed loans fi
nancing account:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings..............................
Outstandings.............................................
Community development guaranteed loans liq
uidating account:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings.............................
Outstandings.............................................
107,700
130,000
130,000
-3
8
-4
4
-1
3
53
-2 0
301
2,054
100
90
184
100
50
351
-4 5
157
69
37
32
52
-1 2
145
69
56
47
98
500
500
427
1,333
2,054
100
80
264
50
351
Guaranty and indemnity fund liquidating account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
—1,153
18,870
-1,087
17,783
-1,024
16,759
Loan guaranty revolving fund liquidating account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
-34,447
83,216
-24,362
58,854
-17,230
41,624
-1 1
134
35.433
35.433
33,148
56,105
41.849
41.849
40,369
96,474
30.256
30.256
27,426
123,899
47
58
45
144
Pollution control equipment fund liquidating ac
count:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
-2 3
115
-1 3
102
-8
94
Business guaranteed loan financing account:
Commitments..............................................
7,336
8,366
11,919
Guaranty and indemnity guaranteed loan financ
ing account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
Small Business Administration
Small Business Administration
Federal Railroad Administration
-2 9 9
1,248
Loan guaranty guaranteed loan financing ac
count:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
Department of Transportation
Railroad rehabilitation and improvement guaran
teed loan financing account:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings..............................
Outstandings.............................................
Maritime guaranteed loan (Title XI) financing ac
count:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
-2 9 9
1,547
953
953
906
906
1,846
Veterans Benefits Administration
229
86
83
94
Bureau of Indian Affairs
Indian guaranteed loan financing account:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings..............................
Outstandings.............................................
Federal ship financing fund liquidating account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
Department of Veterans Affairs
Department of the Interior
Indian loan guaranty and insurance fund liquidat
ing account:
Commitments..............................................
New guaranteed loans...............................
Change in outstandings..............................
Outstandings.............................................
10
Maritime Administration
Community Planning and Development
Revolving fund (liquidating programs):
Commitments..............................................
New guaranteed loans...............................
Change in outstandings.............................
Outstandings.............................................
-7
-9
27
5
164
ANALYTICAL PERSPECTIVES
TABLE 10-11.
GUARANTEED LOAN TRANSACTIONS OF THE FEDERAL GOVERNM
ENT—Continued
(In millions of dollars)
Agency or Program
New guaranteed loans .........................
Change in outstandings..............................
Outstandings.............................................
Disaster loan fund liquidating account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
Business loan fund liquidating account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
1993 actual
1994 estimate
6,470
5,418
9,087
1995 estimate
7,493
5,371
14,458
9,745
6,548
21,005
_*
_*
1
*
•
157
-2,156
11,046
-2,178
8,868
-1,678
7,190
Export-lmport Bank of the United States
Export-lmport Bank guaranteed loan financing
account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
708
-7 9 2
5,178
13,315
6,514
5,754
7,310
556
-3 4 9
4,829
14,782
10,096
4,264
11,574
422
-3 3 0
4,499
15,565
12,250
4,404
15,978
FSLIC Resolution
FSLIC resolution fund:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings....................................
1993 actual
1994 estimate
400
1996 estimate
360
National Credit Union Administration
Credit union share insurance fund:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
1
1
-7 2
-1
1
Tennessee Valley Authority
Other Independent Agencies
Export-lmport Bank of the United States liquidat
ing account:
Commitments..............................................
New guaranteed loans................................
Change in outstandings.......................
Outstandings.............................................
Agency or Program
-9 0
-4 0
-3 6 0
Tennessee Valley Authority fund:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
1
Subtotal, Guaranteed loans (gross):
Commitments..............................................
New guaranteed loans................................
Change in outstandings........................
Outstandings.............................................
1
1
1
277,571
261,206
-9,225
1,075,225
329,084
271,141
131,160
1,206,385
325,682
258,052
115,501
1,321,886
GNMA guarantees of FmHA/VA/FHA pools:
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
107,700
116,912
—7,190
415,291
130,000
104,345
42,895
458,186
130,000
95,598
28,049
486,235
Total, primary guaranteed loans: *
Commitments..............................................
New guaranteed loans................................
Change in outstandings..............................
Outstandings.............................................
169,871
144,294
-2,035
659,934
199,084
166,796
88,265
748,199
195,682
162,454
87,452
835,651
1Loans guaranteed by FHA, VA, a FmHA are included _
these loans, so tiey are deducted here to avoid double counting.
* When guaranteed loans result in loans receivable, they are 1
i in the direct loan table.
Less, secondary guaranteed loans:1
GNMA places a secondary guarantee on
165
TABLE 10-12. LENDING AND BORROWING BY GOVERNMENT-SPONSORED ENTERPRISES (GSEs)
(In millions of dollars)
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 secondary funds advanced from Federal sources:
Student Loan Marketing Association from FFB2 ........................
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......................................................................
Student Loan Marketing Association 2 .........................................
Total GSE lending (net)...........................................................
BORROWING
Student Loan Marketing Association2 .............................................
Federal National Mortgage Association...........................................
Farm Credit System:
Banks for cooperatives ................................................................
Estimate
1993
actual
Enterprise
1994
1995
Obligations ................................
New transactions ......................
Net change ...............................
Outstandings.............................
7,340
7,340
922
34,585
8,722
8,722
2,946
37,531
7,995
7,995
1,786
39,317
Obligations ................................
New transactions ......................
Net change ...............................
Outstandings.............................
Obligations ................................
New transactions ......................
Net change ...............................
Outstandings.............................
85,485
86,574
35,323
185,951
338,738
209,286
51,945
481,880
87,304
89,081
39,385
225,336
211,532
211,532
56,410
538,290
64,100
63,341
23,440
248,776
143,638
143,638
47,950
586,240
Obligations ................................
New transactions ......................
Net change ...............................
Outstandings.............................
Obligations ................................
New transactions ......................
Net change ...............................
Outstandings.............................
Obligations ................................
New transactions ......................
Net change ...............................
Outstandings.............................
51,225
51,240
-5 0
11,264
18,509
17,103
40
38,421
52,072
52,072
-2 1
11,243
18,818
17,421
294
38,715
53,021
53,021
-9 0
11,153
19,102
17,738
614
39,329
Obligations ................................
New transactions ......................
Net change ...............................
Outstandings.............................
393,008
393,008
18,671
99,366
375,000
375,000
-2,366
97,000
375,000
375,000
Obligations ................................
New transactions ......................
Net change ...............................
Outstandings.............................
Obligations ................................
New transactions ......................
Net change ...............................
Outstandings.............................
Obligations ................................
New transactions ......................
Net change ...............................
Outstandings .............................
22,863
22,863
15,229
46,858
199,631
199,631
38,327
430,089
1,116,799
987,045
160,407
1,328,414
34,695
34,695
21,352
68,210
170,775
170,775
30,193
460,282
958,918
959,298
148,193
1,476,607
31,032
31,032
19,470
87,680
110,957
110,957
32,928
493,210
804,845
802,722
126,098
1,602,705
Obligations ................................
New transactions ......................
Net change ...............................
Outstandings.............................
-3 0
4,790
-2,030
2,760
-3 0
2,730
Net change ...............................
Outstandings .............................
Net change ...............................
Outstandings .............................
Net change ...............................
Outstandings.............................
Net change ...............................
Outstandings.............................
Net change ...............................
Outstandings.............................
Net change ...............................
Outstandings.............................
-3,103
20,848
-2,481
18,367
-8 3 3
17,534
573
-7 6 2
2,766
63
1,106
109
396
952
29,795
573
573
2,766
2,766
1,106
1,106
396
4,976
34,771
396
1,816
36,587
Obligations ................................
New transactions ......................
Net change ...............................
Outstandings.............................
1,116,799
987,045
163,178
1,268,140
958,918
959,298
147,728
1,415,868
804,845
802,722
125,145
1,541,013
Net change ...............................
Outstandings.............................
Net change ...............................
Outstandings.............................
-6 6
43,585
92,499
677,666
2,121
45,706
93,532
771,198
847
46,553
73,202
844,400
Net change ...............................
822
-4 5 2
626
97,000
166
ANALYTICAL PERSPECTIVES
TABLE 10-12. LENDING AND BORROWING BY GOVERNMENT-SPONSORED ENTERPRISES (G SEs)Continued
(In millions of dollars)
1993
actual
Enterprise
Farm credit banks .......................................................................
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 FFB2 ........................
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) ......................................................
Estimate
1994
1995
Outstandings.............................
Net change ...............................
Outstandings.............................
13,642
-1,623
39,094
13,190
-4 8 9
38,605
13,816
-8 9
38,516
Net change ...............................
Outstandings.............................
Net change ...............................
Outstandings.............................
Net change ...............................
Outstandings.............................
Net change ...............................
Outstandings.............................
Net change ...............................
Outstandings.............................
Net change ...............................
Outstandings.............................
19,696
130,450
2
8,139
-2
30,081
54,278
482,790
165,606
1,425,447
-1,343
18,467
2,250
132,700
1
8,140
-2
30,079
57,789
540,579
154,750
1,580,197
132,700
1
8,141
-3
30,076
60,127
600,706
134,711
1,714,908
18,467
18,467
Net change ...............................
Outstandings.............................
Net change ...............................
Outstandings.............................
-3 0
4,790
-5 0 0
10,091
-2,030
2,760
340
10,431
-3 0
2,730
368
10,799
Net change ...............................
Outstandings.............................
Net change ...............................
Outstandings.............................
Net change ...............................
Outstandings.............................
Net change ...............................
Outstandings.............................
Net change ...............................
Outstandings.............................
Net change ...............................
Outstandings.............................
-3,103
20,848
-2,481
18,367
-8 3 3
17,534
573
-7 6 2
2,766
63
1,106
109
396
952
29,795
573
573
2,766
2,766
1,106
1,106
396
4,976
34,771
396
1,816
36,587
Net change ...............................
Outstandings.............................
170,220
1,336,615
153,945
1,490,560
133,390
1,623,950
1 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 redassificafon
does not constitute repayment of GSE loans or GSE debt
* All SLMA lending financed through the FFB is counted as direct loans. Al SLMA loans shown in tie table above are guaranteed by he Federal Government and therefore the portion
not financed by the FFB is counted as guaranteed loans. To avoid double counlng, two deductions were made in this table: one for the amount flnanced tirough tie FFB, and the other
for the remainder.
11. AID TO STATE AND LOCAL GOVERNMENTS i
State and local governments have a vital constitu
tional responsibility to provide 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 Fed
eral Government contributes directly toward that role
both by promoting a healthy economy and by providing
grants, loans, and tax subsidies to State and local gov
ernments.
Federal grants help State and local governments fi
nance programs covering most areas of domestic public
spending, including income support, infrastructure, edu
cation, and social services. Federal grant outlays are
estimated to rise from $217.3 billion in 1994 to an
estimated $230.6 billion in 1995.
Grant outlays for payments for individuals are esti
mated to be 66 percent of total grants in 1995; for
physical capital investment, 16 percent; and for all
other purposes, largely education, training, and social
services, 19 percent.
States and localities receive Federal loans and guar
antees mostly for the purpose of rural development.
Direct loan and loan guarantee subsidies to State and
local governments are estimated to be $0.1 billion in
1994 and in 1995.
Information on Federal credit activities appears in
Chapter 10, “Underwriting Federal Credit and Insur
ance.”
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, from
taxable income, and the exclusion of interest on State
and local securities from Federal taxation. These var
ious provisions, on an outlay equivalent basis, are esti
mated to be $66.3 billion in 1994 and $68.9 billion
in 1995. A detailed discussion of the measurement and
definition of tax expenditures and a complete list of
the amount of specific tax expenditures are in Chapter
6, “Tax Expenditures.” As also discussed in this chap
ter, there are generally interactions among tax expendi
ture provisions, so that the estimates above only ap
proximate the aggregate effect of these provisions.
Tax expenditures that especially aid State and local
governments are displayed separately at the end of
Table 6-4 in that chapter.
Federal Grants by Agency
Table 11-1 shows the distribution of grants by agen
cy. Grant outlays for the Department of Health and
Human Services are estimated to be $133.4 billion in
1995, 58 percent of total grants, much more than any
other agency.
TABLE 11-1. FEDERAL GRANT OUTLAYS BY AGENCY
(in billions of dollars)
Estimate
1993
actual
1994
1995
Department of Agriculture ...............................................
Department of Commerce...............................................
Department of Education.................................................
Department of Energy.....................................................
Department of Health and Human Services ...................
Department of Housing and Urban Development...........
Department of the Interior...............................................
Department of Justice .....................................................
Department of Labor.......................................................
Department of Transportation .........................................
Department of the Treasury............................................
Environmental Protection Agency...................................
Federal Emergency Management Agency ......................
14.8
0.2
14.8
0.2
107.6
17.3
1.6
0.9
7.1
22.3
0.4
2.9
2.1
15.9
0.4
16.7
0.2
123.9
19.7
1.8
1.1
7.3
23.0
0.5
3.1
1.9
Other agencies ................................................................
1.6
1.9
16.6
0.4
16.4
0.3
133.4
21.4
1.8
1.3
7.6
24.1
0.4
3.1
1.3
0.7
1.8
Total...............................................................
193.7
217.3
230.6
Agency
HIGHLIGHTS OF THE FEDERAL AID PROGRAM
This section provides a brief overview of the high
lights of the Federal aid program. Major initiatives for
grants to State and local governments in the 1995
Budget include the following:
Health Security:
• $4.5 billion in proposed spending for 1995 through
1999 for access to the health care fund grants
to assist States in planning and starting State
health care alliances;
i 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
• $17.0 billion in grants over the same period for
academic health centers and graduate medical
education related to improving health care; and
• $97.1 billion in Federal savings generated over
five years for medicaid, as a result of the proposals
for health care reform. A more complete expla
nation is included in Chapter 4, “Reforming the
Nation’s Health Care System to Provide Health
Security for All Americans.”
to the public. The three primary forms of aid are grants, loans, and tax expenditures,
167
168
ANALYTICAL PERSPECTIVES
These proposals will help States in their effort to
the crime control fund initiative, and by expanding
ensure that the Health Security Act will guarantee all
the discretionary portion of the program.
Americans access to affordable health care that can
These proposals will put Federal resources to work
never be taken away.
supporting local law enforcement, rather than by ex
panding Federal involvement in local crime fighting.
Infrastructure:
• $0.7 billion increase in 1995 obligations for the
Education and Job Training:
core highway programs, which are categorical
• $1.8 billion in increased 1995 budget authority
grants distributed to the States; these grants fi
over 1994 levels for grants to State and local gov
nance preservation of major highways, including
ernments for elementary and secondary education
the Interstate Highway System;
grants, including the education reform programs;
• $4.7 billion in rescissions for 1994 through 1997
• $1.1 billion in increased 1995 budget authority
for low priority highway demonstration projects;
over the same year for training and employment
• $0.7 billion, or a 40 percent increase in formula
services; and
capital grant funding for mass transit over 1994
• $0.2 billion in proposed outlays from 1995 through
levels;
1999 for grants to States and localities to connect
• $0.5 billion increase in 1995 budget authority for
to the newly-created web of communication net
clean water and drinking water State revolving
works, computers, databases, and consumer elec
funds over 1994 levels; and
tronics.
• $0.6 billion increase in proposed grants for the
These actions will allow States and localities to im
1994-1999 period for rural water and waste water
facilities and housing and community development prove their education systems, and training and em
ployment services for the unemployed, in addition to
service programs.
These initiatives will promote economic growth, con providing them with the capability to develop and tap
into communication networks for their governments,
tribute to a clean environment, and create jobs.
schools, libraries, and law enforcement agencies.
Crime Control:
Urban and Community Development:
• Up to $18.3 billion in increased spending for the
• $1.2 billion in proposed grant outlays from
1995-1999 period for the crime control fund, to
1995-1999 for project-based community develop
aid States and localities in hiring 100,000 police
ment grants and for the Colonias assistance pro
officers to assist them in establishing community
gram.
policing programs to combat crime, and to assist
These grant monies will fund various economic revi
States in upgrading their criminal records
talization projects, and housing and community devel
databases; and
• $1.4 billion in grant outlay savings achieved over opment programs in urban areas, and will help imple
the same period by eliminating the formula por ment comprehensive community development strategies
tions of the Byrne Law enforcement justice assist in severely distressed settlements along the United
ance grants program, which will be replaced by States-Mexican border.
HISTORICAL PERSPECTIVES
In recent decades, Federal aid to State and local gov
ernments has become a major factor in the financing
of certain government functions. The rudiments of the
present system date back to the Civil War. The Morrill
Act, passed in 1862, established the land grant colleges
and instituted certain federally required standards for
States that received the grants, as is characteristic of
the present grant programs. Federal aid was later initi
ated for agriculture, highways, vocational education and
rehabilitation, forestry, and public health. In the de
pression years, Federal aid was extended to meet in
come security and other social welfare needs. However,
Federal grants did not become a significant factor in
Federal Government expenditures until after World
War II.
Table 11-2 displays trends in Federal grants to State
and local governments. Section A shows Federal grants
by function. Functions with a substantial amount of
grants are shown separately. Grants for the national
defense, energy, veterans benefits and services, and the
administration of justice functions are relatively small
and are combined in the “other functions” line in the
table.
169
11. AID TO STATE AND LOCAL GOVERNMENTS
TABLE 11-2. TRENDS IN FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS
(Outlays; dollar amounts in billions)
Actual
1960
A. 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.................................................................
1965
1970
1975
Estimate
1980
1985
1990
1993
1994
1995
1996
1997
1998
1999
0.1
0.2
3.0
0.1
0.2
0.5
4.1
0.6
0.4
0.6
4.6
1.8
2.4
0.4
5.9
2.8
5.4
0.6
13.1
6.5
4.1
2.4
17.1
5.2
3.7
1.3
19.2
5.0
3.8
1.1
22.3
5.7
4.2
1.0
23.0
6.3
4.0
0.9
24.1
6.4
4.0
0.8
25.0
6.6
4.3
0.8
25.2
6.7
4.3
0.9
25.5
6.3
4.5
0.8
25.6
6.3
0.5
0.2
2.6
0.2
0.0
1.1
0.6
3.5
0.2
0.1
6.4
3.8
5.8
0.5
0.1
12.1
8.8
9.4
7.1
0.9
21.9
15.8
18.5
8.6
1.2
17.8
24.5
27.2
6.8
0.9
23.4
43.9
35.2
2.3
1.4
30.2
79.7
47.0
2.1
1.8
34.4
91.5
52.2
2.4
2.1
35.5
101.7
53.5
2.2
2.3
38.7
112.6
55.4
2.2
3.6
40.5
120.1
57.1
2.3
5.4
42.3
117.2
58.8
2.3
6.4
43.9
113.5
61.1
2.3
7.6
Total..... l........................................................
7.0
10.9
24.1
49.8
91.5
105.9
135.4
193.7
217.3
230.6
248.9
262.3
263.9
265.6
B. Composition:
Current dollars:
Payments for individuals u ..........................
Physical capital2 ............................................
Other grants..................................................
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
49.3
24.9
31.7
75.7
27.2
32.5
124.3
31.2
38.2
140.8
34.2
42.2
151.1
36.5
43.1
161.5
37.9
49.5
168.1
38.6
55.6
165.8
38.6
59.5
163.2
38.7
63.7
7.0
10.9
24.1
49.8
91.5
105.9
135.4
193.7
217.3
230.6
248.9
262.3
263.9
265.6
35%
47
17
34%
46
20
36%
29
34
34%
22
45
36%
25
40
47%
23
30
56%
20
24
64%
16
20
65%
16
19
66%
16
19
65%
15
20
64%
15
21
63%
15
23
61%
15
24
Total...............................................................
Constant (1987) dollars:
Payments for individuals ..............................
Physical capital2 ...........................................
Other grants..................................................
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
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
97.1
27.4
30.5
107.0
29.4
32.9
111.4
30.6
32.7
115.3
30.9
36.5
116.1
30.7
40.0
110.8
29.8
41.6
105.5
29.1
43.3
Total...............................................................
Percentage of total grants:
Payments for individuals i>2...........................
Physical capital2 ...........................................
Other grants..................................................
Total...............................................................
29.1
41.8
73.6
105.4
127.6
113.0
119.6
155.0
169.3
174.6
182.7
186.3
182.2
177.8
C. Total grants as a percent of:
Federal outlays:
Total...............................................................
Domestic programs 3 .....................................
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%
14%
21%
22%
3%
15%
21%
N/A
3%
15%
22%
N/A
3%
16%
22%
N/A
3%
15%
21%
N/A
3%
15%
20%
N/A
3%
14%
19%
N/A
3%
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
22%
78
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...............................................................
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
N/A: Not available
1 For an Identification of accounts in this category, see Table 11-3—“Federal Grants to State and Local Governments—Budget Authority and Outlays,” including its footnotes.
2 Grants that are both payments for individuals and capital investment are shown under capital investment.
3 Excludes national defense, international affairs, net interest, and undistributed offsetting receipts.
Federal grants for transportation increased to $3.0
billion, or 43 percent of all Federal grants in 1960 after
initiation of aid to States to build the Interstate High
way System in the late 1950s.
By 1970 there had been significant increases in the
relative amounts for education, training, employment,
social services, and health (largely medicaid).
In the early and mid-1970s, major new grants were
created for natural resources and environment (con
struction of sewage treatment plants), community and
regional development (community development block
grants), and general government (general revenue shar
ing).
In the 1980s changes in the relative amounts among
functions reflected steady growth of grants for health
(medicaid) and income security and restraint in most
other areas.
The functions with the largest amount of grants are
health and income security, with combined grant out
lays of $155.2 billion or 67 percent of total grant outlays
in 1995. Section B of the Table shows the composition
of grants divided into three major categories: payments
for individuals, physical capital, and other grants.2
Grant outlays for payments for individuals, which are
mainly entitlement programs in which the Federal gov
ernment and the States share the costs, have grown
significantly as a percent of total grants. In 1980, they
2 Certain grants are classified in the budget as both payments for individuals and physical
capital spending. In the text and tables in this section, these grants are included in the
category for physical capital spending.
170
ANALYTICAL PERSPECTIVES
were 36 percent of the total, and by 1993 they had
grown to 64 percent of the total.
These grants are distributed through State or local
governments to provide cash or in-kind benefits that
constitute income transfers to individuals or families.
The major grant in this category is medicaid, which
had outlays of $75.8 billion in 1993, increasing to an
estimated $96.4 billion in 1995. Family support pay
ments to States (AFDC), child nutrition programs, and
housing assistance are also large grants in this cat
egory. All programs in this category are identified by
footnote in the detailed Table 11-3, “Federal Grants
to State and Local Governments—Budget Authority and
Outlays,” at the end of this chapter.
Grants for physical capital assist States and localities
with construction and other physical capital activities.
The major capital grants are for highways, but there
are also grants for airports, mass transit, sewage treat
ment plant construction, community development, and
other facilities. Grants for physical capital were almost
half of total grants in 1960, shortly after grants began
for construction of the Interstate Highway System. The
relative share of these outlays has declined, as pay
ments for individuals have grown. In 1993, grants for
physical capital were 16 percent of total grants.
The other grants are primarily for education, train
ing, employment, and social services. These grants in
creased to 45 percent of total grants by 1975, but de
clined to 20 percent of total grants in 1993.
Section B of Table 11-2 also shows these three cat
egories in constant dollars. In constant 1987 dollars,
total grants increased from $127.6 billion in 1980 to
$155.0 billion in 1993, an average annual increase of
1.5 percent. From 1980 to 1993, payments for individ
uals grew from $46.2 billion to $97.1 billion, an average
annual increase of 5.9 percent; grants for physical cap
ital decreased from $27.7 billion to $27.4 billion, an
average annual decrease of 0.1 percent, and other
grants decreased from $53.7 billion to $30.5 billion, an
average annual decrease of 4.3 percent.
Section C of this table shows grants as a percent
of Federal outlays, State and local expenditures, and
gross domestic product. Grants have declined as a per
cent of total Federal outlays from 15 percent in 1980
to 14 percent in 1993 and, as a percent of Federal
domestic programs, from 22 percent in 1980 to 21 per
cent in 1993.
As a percent of total State and local expenditures,
grants have declined from 28 percent in 1980 to 22
percent in 1993.
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 22 percent in 1993, reflecting re
straint 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 budg
et and in other documents.
• Major public physical capital investment programs
providing Federal grants to State and local gov
ernments are described in Chapter 8, “Federal In
vestment Outlays and Capital Budgeting.”
• Data for summary and detailed grants to State
and local governments can be found in many sec
tions of a separate document entitled, Historical
Tables. Section 12 of that document is devoted
exclusively to grants to State and local govern
ments. Additional information on grants can be
found in Section 6 (Composition of Federal Gov
ernment Outlays); Section 9 (Federal Government
Outlays for Major Physical Capital Investment);
Section 10 (Composition of Outlays for the Con
duct of Research and Development and for the
Conduct of Education and Training); Section 11
(Federal Government Payments for Individuals);
and Section 15 (Total (Federal and State and
Local) Government Finances).
In addition to these sources, a number of other
sources of information are available that use slightly
different concepts of grants, provide State-by-State in
formation, or provide information on how to apply for
Federal aid.
• Government Finances, published annually by the
Bureau of the Census in the Department of Com
merce, provides data on public finances, including
Federal aid to State and local governments.
• The Survey of Current Business, published month
ly by the Bureau of Economic Analysis in the De
partment of Commerce, provides data on the na
tional income and product accounts (NIPA), a
broad statistical concept encompassing the entire
economy. These accounts include data on Federal
grants to State and local governments. Data using
the NIPA concepts appear in this volume in Chap
ter 20, “National Income and Product Accounts.”
• Budget Information for States (BIS) provides esti
mates of State-by-State funding allocations for the
largest formula grant programs for the past,
present, and budget year. These programs com
prise approximately 85 percent of total Federal
aid to State and local governments. The document
is prepared by the Office of Management and
Budget soon after the Budget is released.
• Federal Expenditures by State, a report prepared
by the Bureau of the Census, shows Federal
spending by State for grants and other spending
for the most recently completed fiscal year.
• Consolidated Federal Funds Report (CFFC) is an
annual document that shows the distribution of
Federal spending by State county areas and by
171
11. AID TO STATE AND LOCAL GOVERNMENTS
local governmental jurisdictions. It is released by
the Bureau of the Census in the Spring.
• The Federal Assistance Awards Data System
(FAADS) provides computerized information about
current grant funding. Data on all direct assist
ance awards are provided quarterly by the Bureau
of the Census to the States and to the Congress.
• The Catalog for Federal Domestic Assistance is a
primary reference source for communities wishing
to apply for grants and other domestic assistance.
The Catalog is prepared by the General Services
Administration with data collected by the Office
of Management and Budget and is available from
the Government Printing Office. The basic edition
of the Catalog is usually published in June and
an update is generally published in December. It
contains a detailed listing of grant and other as
sistance programs; discussions of eligibility cri
teria, application procedures, and estimated obli
gations; and related information.
DETAILED FEDERAL AID TABLE
Table 11-3, “Federal Grants to State and Local Gov
ernments—Budget Authority and Outlays,” provides de
tailed budget authority and outlay data for grants.
TABLE 11-3. FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS—BUDGET AUTHORITY AND OUTLAYS
(in millions of dollars)
BUDGET AUTHORITY
Function, agency and program
1993 actual
1994
estimate
NATIONAL DEFENSE:
Department of Defense—Military:
Military construction, Army National Guard....................................................................................
Federal Emergency Management Agency:
Emergency management planning and assistance........................................................................
102
1 00
Total, national defense............................................................................................................
155
174
214
236
ENERGY:
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..................................................................................................................
Cooperative endangered species conservation fund .....................................................................
Wildlife conservation and appreciation 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 ..............................................................................................
53
OUTLAYS
1995
estimate
1993 actual
75
1994
estimate
1995
estimate
53
75
94
99
1 00
97
94
152
175
97
308
223
221
255
*
237
243
451
479
2
5
172
3
*
187
3
*
85
252
237
243
252
560
460
464
507
8
128
3
*
7
194
3
*
83
6
74
3
*
85
50
15
8
50
9
8
2
2
3
52
163
6
*
2
180
220
6
36
41
*
2,350
485
83
3
*
85
198
25
8
173
30
8
165
16
8
48
2
1
2
2
3
52
2
1
26
42
*
3
52
136
13
*
9
2
198
208
5
25
40
*
3
*
11
2
180
226
5
30
42
*
157
231
7
24
37
*
3
59
129
7
5
7
1
178
216
10
48
40
*
2,550
500
2,477
507
2,650
506
2,109
488
2,355
475
52
134
4
25
7
172
225
121
85
12
4
27
143
2
20
4
8
172
ANALYTICAL PERSPECTIVES
TABLE 11-3.
FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS-BUDGET AUTHORITY AND OUTLAYS-Continued
(in m
illions of dollars)
BUDGET AUTHORITY
Function, agency and program
1994
estimate
Abatement, control, and compliance loan program account........................................
Hazardous substance superfund...................................................................................
Leaking underground storage tank trust fund..............................................................
30
140
Total, natural resources and environment..........................................................
AGRICULTURE:
Department of Agriculture:
Cooperative State Research Service............................................................................
Extension Service........................................................................................................
Payments to States and possessions .........................................................................
Agricultural resource conservation demonstration guaranteed loan program account.
Commodity Credit Corporation fund ............................................................................
State mediation grants................................................................................................
Outreach for socially disadvantaged farmers..............................................................
P.L 102-552 temporary assistance............................................................................
Emergency food assistance program ..........................................................................
Total, agriculture...................................................................................................
OUTLAYS
1995
estimate
1994
estimate
8
1995
estimate
120
66
10
2
187
59
17
212
66
9
148
4,483
4,336
4,298
3,796
4,192
4,016
223
428
229
436
229
432
213
404
245
427
229
434
4
281
3
4
235
3
3
3
156
9
281
3
4
235
3
156
3
5
124
40
1
1
1
1
5
1
2
1
2
165
120
"40
42
163
1,106
1,031
867
1,117
1,041
870
10
13
10
11
9
65
17,325
9
72
18,058
167
94
COMMERCE AND HOUSING CREDIT:
Department of Commerce:
U.S. Travel and Tourism Administration salaries and expenses ................................
Promote and develop fishery products and research pertaining to American fisheries
Industrial technology services......................................................................................
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 .........................................................................................
Next generation high speed rail program....................................................................
Conrail commuter transition assistance.......................................................................
Research* training, and human resources ..................................................................
Interstate transfer grants—transit.................................................................................
Washington metro........................................................................................................
Formula 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:
Distance learning and medical link programs............................................................
Water and wastewater and community facility loans program account......................
Emergency community water assistance grants.........................................................
Rural water and waste disposal grants......................................................................
Rural community fire protection grants.......................................................................
Rural technology and cooperative development grants..............................................
Local technical assistance and planning grants..........................................................
Rural development grants...........................................................................................
20
76
20,248
17
325
-198
-137
171
196
’“ 29
17
83
19,350
196
7
62
15,895
231
74
5
131
5
7
7
200
94
*
135
5
35
2
11
14
75
170
1,700
44
1,725
45
200
2,415
147
1,734
39
200
2,865
92
1,725
163
149
2,240
16
1,298
112
2,050
1,202
1,690
1,931
*
37
7
8
189
1,387
45
1,450
29
1,850
1
144
3
17
1
15
9
78
148
1,851
74
1,608
21
1,710
1
24,710
26,270
5
149
30
353
4
10
144
10
415
4
5
193
15
30
436
5
5
5
36
24
7
53
26,757
40
7
9
47
14
22,343
23,049
24,134
18
6
85
7
200
3
121
270
3
127
18
318
12
16
11
10
23
173
11. AID TO STATE AND LOCAL GOVERNMENTS
TABLE 11-3.
FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS-BUDGET AUTHORITY AND OUTLAYS-Continued
(in m
illions of dollars)
BUDGET AUTHORITY
Function, agency and program
1993 actual
Economic development grants (REA).........................................
Rural development loan fund......................................................
Department of Commerce:
Economic development assistance programs............................
Regional development commissions...........................................
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....
Project-based community development grants...........................
Colonias assistance program......................................................
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 ............................
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 broadcasting facilities, planning, and construction.......................................
Information infrastructure grants .............................................................................
Department of Education:
Indian education ......................................................................................................
Impact a id ...............................................................................................................
Chicago litigation settlement...................................................................................
Education reform .....................................................................................................
Education for the disadvantaged ............................................................................
School improvement programs ...............................................................................
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......................................................................................................
Libraries ..................................................................................................................
Education research, statistics, and improvement....................................................
Department of Health and Human Services, except Social Security:
Community services block grant.............................................................................
Interim assistance to States for legalization............................................................
Payments to States for AFDC work programs........................................................
Family preservation and support ............................................................................
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.........................................................................................
1994
estimate
OUTLAYS
1995
estimate
30
10
388
324
3
4,243
4,400
1993 actual
1994
estimate
1995
estimate
_#
-15
1
10
1
328
130
*
267
308
4,400
1
3,198
51
5
1
3,746
45
7
-86
-77
81
2
10
91
800
100
4,136
35
6
26
4
-74
69
86
93
10
10
10
66
2
4
190
249
187
138
143
174
10
-225
17
1,622
17
234
30
256
17
1,821
17
1,619
23
1,165
11
14
15
11
14
15
7,107
5,751
6,911
5,666
6,300
6,428
18
22
24
9
92
12
13
*
17
6
72
836
74
794
82
748
91
468
15
6,680
1,429
187
2,725
1,978
6
1,411
78
25
129
35
139
6,896
1,260
199
2,866
2,082
6
1,411
94
34
129
35
867
7,559
1,535
217
3,053
2,144
7
1,387
35
44
103
10
72
979
18
17
6,877
1,522
209
3,344
2,169
6
1,251
79
26
147
32
75
858
8
199
6,903
1,339
206
3,021
2,246
7
1,303
58
33
132
29
2,800
3,406
2,924
839
464
810
1,100
58
3,800
3,999
2,993
871
435
243
1,300
144
2,800
4,602
3,441
876
2,785
3,191
2,636
567
475
696
860
47
2,877
3,856
3,000
817
465
243
1,031
126
3,240
4,149
3,362
876
48
59
64
43
52
60
3,548
87
24
1,078
80
3,907
90
77
1,106
76
4,582
87
277
1,113
101
3,245
84
23
1,077
77
3,467
85
34
1,090
78
3,716
89
117
1,102
91
84
92
98
84
92
98
441
324
1,000
6,582
1,903
101
2,356
1,804
8
1,133
89
30
159
29
423
317
736
174
ANALYTICAL PERSPECTIVES
TABLE 11-3. FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS-BUDGET AUTHORITY AND OUTLAYS-Continued
(in m
illions of dollars)
BUDGET AUTHORITY
Function, agency and program
National Endowment for the Arts:
Grants and administration....................................................................
Institute of Museum Services:
Institute of Museum Services: grants and administration.....................
Corporation for National and Community Service:
Domestic volunteer service programs, operating expenses.................
National and community service programs, operating expenses.........
Total, education, training, employment, and social services....
HEALTH:
Department of Agriculture:
Food Safety and Inspection Sen/ice 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 services1 ...................................
Grants to States for Medicaid1 .............................................................
Department of Labor
Occupational Safety and Health Administration salaries and expenses
Mine Safety and Health Administration salaries and expenses...........
Allowances:
Access to health care fund (health care services) ..............................
Access to health care fund (health research and training)..................
Academic health centers and graduate medical education..................
Total, health....................................................................................
INCOME SECURITY:
Department of Agriculture:
Funds for strengthening markets, income, and supply (section 32)1 ...
Rural housing for domestic farm labor1 ...............................................
Supervisory and technical assistance grants1 .....................................
Rural housing preservation grants1 ......................................................
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 child care assistance1 ..................................
Payments to States from receipts for child support............................
Department of Housing and UrbanDevelopment:
Housing programs annual contributions for assisted housing1 ............
Congregate services1 ..........................................................................
Assistance for renewal of expiring Section 8 subsidy contracts1 ........
Section 8 moderate rehabilitation, single room occupancy.................
Homeownership and opportunity for people everywhere grants1 ........
Payments for operation of low-income housing projects1 ...................
Community partnerships against crime1 ..............................................
Revitalization of severely distressed public housing projects1 ...........
Low-rent public housing-loans and other expenses1 ........................
Emergency shelter grants program1 ...................................................
Supportive housing program1 ..............................................................
Homeless assistance grants ...............................................................
Shelter plus care1 ...............................................................................
Home investment partnerships program..............................................
Youthbuild program .............................................................................
Innovative homeless initiatives demonstration program.......................
Department of Labor:
Unemployment trust fund....................................................................
Federal Emergency Management Agency:
Emergency food and shelter program1 ...............................................
OUTLAYS
1994
1994
1993 actual
1995
44
43
43
43
7
7
7
5
133
131
244
148
408
43
43
45
46
185
32,474
35,992
30,160
34,429
35,486
36
40
41
36
40
41
1,612
509
1.850
82,596
1,706
662
1.938
89,077
1,721
598
2,194
89,223
1,438
355
1,994
75,774
1.580
591
2.089
87.156
2,214
96,373
70
75
61
62
65
6
6
6
43
7
6
505
600
750
86,678
43
6
185
219
340
95,711
79,665
91,524
101,696
400
43
400
400
44
400
11
400
11
400
19
23
15
257
1.580
2,855
94
6,803
1.040
23
7
15
248
1,586
2,842
77
6,574
1,025
2
1
7
20
259
1,614
3.205
92
7,467
1.079
23
18
230
1,631
3.560
94
7,404
1,143
8
2
8
255
1,539
3,213
107
7,207
1,078
257
1,620
3,534
95
7,640
1,141
15.695
1,346
381
893
16,173
1.437
400
893
16,962
730
324
1,091
15.628
1,067
327
411
16,413
2,075
345
980
16,921
791
364
1,037
5.828
21
6.353
105
271
2.282
175
300
123
50
150
5,830
25
4,763
150
-207
2,621
265
778
154
115
334
6,449
8,107
7,868
16
4,451
36
267
1,232
40
124
1,275
2
2
20
2
6
4,400
100
2,496
265
500
108
5
1,999
3
35
2,453
116
213
71
91
129
130
3,615
19
68
2,533
268
30
219
68
107
86
2,563
239
146
166
86
1,100
50
212
15
876
8
8
2,464
2,536
2,469
2,396
129
130
1
100
2,504
11
159
152
50
1,200
16
18
1,250
2,606
1
175
11. AID TO STATE AND LOCAL GOVERNMENTS
TABLE 11-3.
FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS-BUDGET AUTHORITY AND OUTLAYS-Continued
(in millions of dollars)
BUDGET AUTHORITY
Function, agency and program
1993 actual
OUTLAYS
1995
estimate
1994
estimate
1993 actual
1994
estimate
1995
estimate
Total, income security.............................................................................................................
51,362
52,036
52,811
46,991
52,234
53,485
VETERANS BENEFITS AND SERVICES:
Department of Veterans Affairs:
Medical care1 .................................................................................................................................
Grants for the construction of State extended care facilities1 ......................................................
Grants for the construction of State veterans cemetaries.............................................................
129
40
5
149
41
5
178
37
5
129
56
5
149
72
5
178
59
5
Total, veterans benefits and services....................................................................................
174
195
221
189
226
242
15
25
33
9
12
22
12
193
1
746
150
12
225
1
607
139
13
220
1
287
160
2,071
12
193
1
545
125
9
225
1
714
114
13
220
1
489
146
402
102
102
51
14
133
5
102
25
26
26
25
26
26
ADMINISTRATION OF JUSTICE:
Department of Housing and Urban Development:
Fair housing activities.....................................................................................................................
Department of Justice:
Weed and seed program fund.......................................................................................................
Assets forfeiture fund .....................................................................................................................
National Institute of Corrections.....................................................................................................
Justice assistance...........................................................................................................................
Crime victims fund..........................................................................................................................
Crime control fund..........................................................................................................................
Department of the Treasury:
Department of the Treasury forfeiture fund....................................................................................
Customs forfeiture fund..................................................................................................................
Equal Employment Opportunity Commission:
Salaries and expenses...................................................................................................................
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 A c t........................................................................
Department of the Interior:
Payments in lieu of taxes ..............................................................................................................
Bureau of Land Management miscellaneous permanent payments accounts ..............................
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 .................................................................................
12
5
1
11
13
11
1,154
1,141
2,915
987
1,253
1,433
305
285
279
309
285
279
5
5
5
6
5
5
2
2
2
2
2
2
104
68
463
18
81
23
97
104
84
531
18
82
24
83
104
82
515
20
69
1
85
103
75
463
18
26
26
97
105
84
531
18
61
24
83
104
82
515
20
63
3
85
197
102
219
119
226
123
197
102
219
119
226
123
8
136
89
688
700
722
698
698
722
Total, general government......................................................................................................
2,243
2,256
2,232
2,131
2,370
2,228
Total, grants..............................................................................................................................
214,154
221,615
231,559
193,664
217,265
230,628
*$500 thousand or less.
1 Programs included in the "grants for payments to individuals" category shown in Table 11-2—'Trends in Federal Grants to State and Local Governments.”
12. 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.
Time Equivalents” shows total Federal employment on
an FTE basis.
Personnel Compensation and Benefits
The table entitled “Personnel Compensation and Ben
efits” displays personnel compensation and benefits for
all branches of Government, as well as for military
personnel.
Total Federal Employment in the Executive
Direct compensation of the Federal work force in
Branch
cludes base pay and premium pay, such as overtime.
Civilian employment in the Executive Branch is In addition, it includes other cash components, such
measured on the basis of full-time equivalents (FTEs). as geographic pay differentials (i.e., locality pay, in
One FTE is equal to one work year or 2,080 hours. terim geographic adjustments, special pay adjustments
The Budget continues the implementation of a reduc for law enforcement officers), recruitment and reloca
tion of Federal positions, measured on an FTE basis, tion bonuses, retention allowances, performance
pursuant to Executive Order 12839 issued February awards, and cost-of-living and overseas allowances.
In the case of military personnel, compensation in
10, 1993. The Executive Order sets a reduction target
of 100,000 FTEs by 1995. Allocations of FTE resources cludes basic pay, special and incentive pay (including
by agency were made based upon Presidential priorities enlistment and reenlistment bonuses), and allowances
and other factors. As shown in Table 12-1, a reduction for clothing, housing, and subsistence.
Related compensation in the form of personnel bene
of 118,300 FTEs or 5.5 percent is anticipated in 1995.
The National Performance Review (NPR) has rec fits for current personnel consists primarily of the Gov
ommended that the Federal Government reduce ernment’s share (as an employer) of health insurance,
252,000 Federal positions by 1999. This recommenda life insurance, old age survivors’ disability and health
tion was mandated by the Presidential Memorandum, insurance, and payments to the Department of De
“Streamlining the Bureaucracy,” dated September 11, fense’s Military Retirement Fund, the Civil Service Re
1993. These reductions include the 100,000 FTE re tirement and Disability Fund, and the Federal Employ
duced by 1995, with the additional 152,000 reductions ees Retirement System to finance future retirement
to be accomplished in 1996-1999. These reductions benefits.
would be made as agencies streamline their operations,
Government Employment and Population
trim overhead, and reduce unnecessary layers of bu
Comparisons
reaucracy. The NPR has recommended that these re
ductions be focused in the areas of administrative and
As illustrated in the table entitled “Government Em
central control staffs and supervisors.
ployment and Population,” the Federal share of total
Government employment has declined significantly over
Total Federal Employment Levels
the last three decades, from 21.2 percent in 1962 to
The tables that follow show total Federal employment 14.3 percent in 1993. Employment for all Government
in all branches of Government, as well as the U.S. has risen steadily over the period mostly due to in
Postal Service, Postal Rate Commission, and active creases in state and local Government employment.
The ratio of Federal civilian employment to the total
duty uniformed military personnel. The table entitled
“Total Federal Employment as Measured by Total Posi U.S. population is estimated to be 11.0 per thousand
tions Filled” displays total Federal employment as in 1994, down from a high of 14.9 in 1968 and 1969.
measured by actual positions filled, and the table enti A further decline, to 10.7 per thousand, is expected
tled “Total Federal Employment as Measured by Full- for 1995.
177
178
THE BUDGET FOR FISCAL YEAR 1995
TABLE 12-1.
FEDERAL EM
PLOYM
ENT IN TH EXECU
E
TIVE BRANCH
(Civilian employment as measured by Full-Time Equivalents in thousands)
Agency
Cabinet agencies:
Agriculture .............................................................................................................................................
Commerce............................................................................................................................................
Defense—military functions1 ................................................................................................................
Education..............................................................................................................................................
Enerav..................................................................................................................................................
Health and Human Services ................................................................................................................
Housing and Urban Development........................................................................................................
Interior..................................................................................................................................................
Justice ..................................................................................................................................................
Labor ....................................................................................................................................................
State.....................................................................................................................................................
Transportation ......................................................................................................................................
Treasury2 .............................................................................................................................................
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 Corporation .........................................
General Services Administration..........................................................................................................
National Aeronautics and Space Administration...................................................................................
National Archives and Records Administration.....................................................................................
National Labor Relations Board ...........................................................................................................
National Science Foundation................................................................................................................
Nuclear Regulatory Commission..........................................................................................................
Office of Personnel Management.........................................................................................................
Panama Canal Commission.................................................................................................................
Peace Corps .........................................................................................................................................
Railroad Retirement Board...................................................................................................................
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 .........................................................................................
FTE reduction from the base ...............................................................................................................
Percentage reduction from the base....................................................................................................
Percentage reduction target/FTE reduction target................................................................................
1993
Base
1993
actual
Estimate
1994
Change: 1993 base to 1995
1995
FTE’s
Percent
114.6
36.7
931.4
5.0
20.6
130.0
13.6
77.9
99.4
19.9
26.0
71.1
166.1
232.4
113.4
36.1
931.8
4.9
20.3
129.0
13.3
76.7
95.4
19.6
25.6
69.9
161.1
234.4
110.2
35.8
886.0
5.1
20.4
127.7
13.3
76.0
97.2
19.4
25.4
68.9
161.2
235.1
108.5
35.8
854.9
5.2
20.6
127.2
13.4
74.6
101.9
19.5
25.0
67.5
157.6
229.7
-6.1
-0.9
-76.5
0.2
-5.3%
-2.6%
-8.2%
2.4%
-2.8
-0.2
-3.3
2.5
-0.4
-1.0
-3.6
-8.5
-2.7
-2.2%
-1.8%
-4.3%
2.5%
-2.3%
-4.0%
-5.0%
-5.1%
-1.1%
4.4
29.2
19.0
2.9
2.7
21.3
20.7
25.7
2.8
2.1
1.3
3.4
6.2
8.7
1.3
1.9
2.7
4.0
4.9
19.1
8.7
17.5
4.1
28.4
18.3
2.8
2.6
21.6
20.2
24.9
2.6
2.1
1.2
3.4
5.9
8.5
1.2
1.8
2.7
3.9
4.5
17.3
8.3
16.4
4.0
28.5
18.6
2.9
2.6
20.4
20.1
24.5
2.7
2.1
1.2
3.3
6.0
8.6
1.2
1.8
2.7
3.8
4.8
17.3
8.5
17.0
4.0
27.8
19.4
3.0
2.7
15.1
19.7
23.6
2.6
2.1
1.3
3.2
5.8
8.8
1.2
1.8
2.9
3.8
4.7
16.6
8.3
17.2
-0.4
-1.4
0.4
0.1
-8.6%
-4.7%
2.2%
5.6%
-1.1%
-28.8%
-4.7%
-8.2%
-4.7%
-4.2%
-4.0%
-5.5%
-7.3%
0.7%
-1.0%
-4.7%
7.2%
-4.4%
-3.6%
-13.2%
-5.0%
-1.8%
2,155.2
2,134.3
2,084.2
2,036.9
-118.3
-20.9
-1.0%
-1.0%
-71.0
-3.3%
-2.5%
-118.3
-5.5%
-4.0%
-100.0
-6.2
-1.0
-2.1
-0.2
-0.2
-0.4
0.1
-0.1
-0.1
0.2
-0.2
-0.2
-2.5
-0.4
-0.3
1 Because Defense was already reduced by almost 42,000 from 1992 to 1993, no further reduction was required in 1993.
2 The Administration is working with Congress to design a deficit reduction/tax compliance initiative for the Internal Revenue Service that would increase Treasury FTEs by approximately 5,000 above the level shown. Even with
these additional FTEs, the Administration still achieves the 100,000 reduction under E.O. 12839.
3 Excludes Postal Service and Postal Rate Commission.
179
12. EMPLOYMENT
TABLE 12-2. TOTAL FEDERAL EMPLOYMENT
(As measured by total positions filled)
Actual as of September 30
Description
1993
1992
Executive branch civilian employment:
All agencies except Postal Service and Postal Rate Commission:
Full-time permanent ..................................................................
Other than full-time permanent..................................................
Percent change:
1991 to 1993
1,937,686
261,298
1,946,705
235,984
1,1
221,004
-2.4%
-15.4%
Subtotal ...........................
2,198,984
2,182,689
2,112,690
-3.9%
Postal Service:1
Full-time permanent.................
Other than full-time permanent ,
644,271
160,125
627,074
164,975
623,092
167,248
-3.3%
4.4%
804,396
792,049
790,340
-1.7%
Special Categories2 ...............................................
Subtotal, executive branch civilian employment.
44,458
3,047,838
45,020
3,019,758
43,431
2,946,461
-2.3%
-3.3%
Military personnel on active duty:3
Department of Defense.....................................
Department of Transportation (Coast Guard)....
2,002,614
1,808,131
39,469
1,705,103
39,234
-14.9%
1.5%
2,041,283
1,847,600
1,744,337
-14.5%
5,089,121
4,867,358
4,690,798
-7.8%
Legislative branch:
Full-time permanent....................
Other than full-time permanent ...
16,783
21,719
16,740
21,769
16,460
21,798
-1.9%
0.4%
Subtotal, Legislative Branch ...
38,502
38,509
38,258
-
Judicial Branch:
Full-time permanent....................
Other than full-time permanent ...
23,306
2,499
25,488
2,499
25,900
2,220
Subtotal, Judicial Branch .......
25,805
27,987
28,120
9.0%
Grand total .....................................
5,153,428
4,933,854
4,757,176
-7.7%
974,404
1,224,580
945,356
1,237,333
885,472
1,227,218
-9.1%
0. 2%
2,198,984
2,182,689
2,112,690
-3.9%
Subtotal.
Subtotal, military personnel....
Subtotal, Executive Branch
0 . 6%
11.1%
-
11. 2 %
ADDENDUM
Executive branch civilian personnel (excluding Postal Service):
DOD-Military functions............................................................
All other executive branch......................................................
Total4 .
11ncludes Postal Rate Commission.
2 Includes Summer Aides, Stay-in-school, Junior Fellowship, Worker-Trainee Opportunity Program, formerly exempt from employment controls,
a Excludes reserve components.
4 Excludes disadvantaged youth programs.
180
THE BUDGET FOR FISCAL YEAR 1995
TABLE 12-3. TOTAL FEDERAL EMPLOYMENT
(As measured by Full-Time Equivalents)
Estimate
1994
1995
tchange:
1993 to 1995
1,202,556
931,763
1,198,271
885,958
1,182,092
854,859
-1.7%
-8.3%
2,134,319
753,799
2,084,229
770,318
2,036,951
784,515
-4.6%
4.1%
Subtotal, Executive Branch civilian personnel.
2,888,118
2,854,547
2,821,466
-2.3%
Executive branch uniformed personnel:2
Department of Defense...........................................
Department of Transportation (Coast Guard) .........
1,751,362
39,342
1,658,149
38,921
1,567,522
38,376
-10.5%
-2.5%
1,790,704
1,697,070
1,605,898
-10.3%
4,678,822
37,985
4,551,617
37,035
4,427,364
36,466
-5.4%
-4.0%
27,378
28,107
29,289
7.0%
4,744,185
4,616,759
4,493,119
-5.3%
Description
Executive branch civilian personnel:
All agencies except Postal Service and Defense .
Defense-Military functions (civilians)....................
Subtotal, excluding Postal Service
Postal Service1 ....................................
Subtotal, uniformed military personnel
Subtotal, Executive Branch
Legislative Branch^ Total F T E .........
Judicial branch: Total FTE
Grand total.......
11ncludes Postal Rate Commission.
2 Military personnel on active duty. Excludes reserve components. Data shown are average strength.
3Actual 1993 FTE data not available for legislative branch. Data shown are estimates.
181
12. EMPLOYMENT
TABLE 12-4. PERSONNEL COMPENSATION AND BENEFITS
(In millions of dollars)
Description
Estimate
1993 actual
Percent change:
1993 to 1995
1994
1995
34,353
50,631
33,724
52,760
32,946
53,757
-4.1%
6.2%
Subtotal, direct compensation...................................................................
Personnel benefits:
DOD—military functions.................................................................................
All other executive branch1 ..........................................................................
84,984
86,484
86,703
2.0%
6,940
18,996
7,078
19,590
7,054
20,083
-1.6%
5.7%
Subtotal, personnel benefits......................................................................
25,936
26,668
27,137
4.6%
Subtotal, executive branch ...................................................................
110,920
113,152
113,840
2.6%
Postal Service:
Direct compensation...........................................................................................
Personnel benefits..............................................................................................
29,231
9,108
30,184
9,536
31,343
10,380
7.2%
14.0%
Subtotal .........................................................................................................
38,339
39,720
41,723
8.8%
Legislative Branch:2
Direct compensation...........................................................................................
Personnel benefits..............................................................................................
781
154
793
159
824
165
5.5%
7.1%
Civilian personnel costs:
Executive Branch (excluding Postal Service):
Direct compensation:
DOD—military functions.................................................................................
All other executive branch.............................................................................
Subtotal.........................................................................................................
Judicial Branch:
Direct compensation...........................................................................................
Personnel benefits..............................................................................................
935
952
989
5.8%
1,194
254
1,292
296
1,389
333
16.3%
31.1%
Subtotal.........................................................................................................
Total, civilian personnel costs.......................................................................
1,448
151,642
1,588
155,412
1,722
158,274
18.9%
4.4%
Military personnel costs:
Direct compensation...............................................................................................
Personnel benefits.................................................................................................
53,453
21,048
52,157
19,633
49,490
19,322
-7.4%
-8.2%
Total, military personnel costs3 ........................................................................
74,501
71,790
68,812
-7.6%
Grand total, personnel costs......................................................................................
226,143
227,202
227,086
0.4%
ADDENDUM
Retired pay for former personnel:
Civilian personnel ..................................................................................................
Military personnel...................................................................................................
37,804
26,359
39,918
27,045
40,885
27,757
8.1%
5.3%
Total...................................................................................................................
64,163
66,963
68,642
7.0%
1 1n 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 the 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 $7,178 million in 1993 and are estimated to be $7,391 million in 1994 and $7,806 million in 1995.
2 Excludes members and officers of Congress.
3 Excludes resen/e components.
182
THE BUDGET FOR FISCAL YEAR 1995
TABLE 12-5. GOVERNMENT EMPLOYMENT AND POPULATION, 1962-1995
Governm em ent
ent ploym
Fiscal year
1962 .......................................
19632 ....................................
19642 ....................................
1965 .......................................
1966 .......................................
1967 .......................................
1968 .......................................
19693 ....................................
19704 ....................................
19714 ....................................
1972 .......................................
1973 .......................................
1974 .......................................
1975 .......................................
1976 .......................................
19775 ....................................
1978 .......................................
1979 .......................................
19804 ....................................
19814 ....................................
1982 .......................................
1983 .......................................
1984 .......................................
1985 .......................................
1986 .......................................
1987 .......................................
1988 .......................................
1989 .......................................
19904 ....................................
19914 ....................................
1992 .......................................
1993 .......................................
1994 .......................................
1995 .......................................
Executive branch
dvians
(thousands)
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
2,946
2,892
2,848
Federal1
Uniform m
ed ffitary Legislative and ju
dicial branch per
personnel
sonnel
(thousands)
(ftousands)
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
1,744
1,649
1,564
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
66
65
64
Total Federal
personnel
(thousands)
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
4,756
4,606
4,476
Population
State and local
governm
ents
(thousands)
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
15,436
15,684
15,927
AR governm
ental
units (thousands)
Federal dvian as
a percent of all
governm
ental
units
Total United
States
(thousands)*
Federal dvian
em ent per
ploym
1,000 population
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
20,683
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
14.3
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
250,689
253,426
256,271
259,015
262,449
265,142
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
12.2
12.0
12.0
11.4
11.0
10.7
’ Covers total end-of-year dvian 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-tralnee programs.
2 Excludes 7,411 project employees in 1963 and 406 project employees in 1964 for the public works acceleration program.
s On Jan. 1, 1969, 42,000 dvian 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.
4 Indudes temporary employees for the decennial census.
sData for 1961 through 1976 are as of June 30; for 1977 through 1993, as of September 30.
• Population estimates for 1994 and 1995 are U.S. Census Bureau projections.
FEDERAL BORROWING AND DEBT
183
13. FEDERAL BORROWING AND DEBT
Debt is the most explicit and legally binding obliga
tion of the Federal Government. At the end of 1993
the Government owed $3,247.2 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 ac
counts, was $4,351.2 billion. This year the Government
is estimated to pay about $213 billion of interest to
the public on its debt.
The present deficit is continuing to increase the
amount of debt. However, the Omnibus Budget Rec
onciliation Act of 1993 and the present economic expan
sion are reducing the size of the deficit, and the Admin
istration's proposal for health care reform is estimated
to reduce it further by the end of the decade.
Trends in Federal Debt
Federal debt held by the public has increased by four
and a half times since 1980, as shown in table 13-1.
In 1980 it was $709.3 billion; by the end of 1993 it
stood at $3,247.2 billion. The data in this table are
supplemented for earlier years by tables 7.1-7.3 in His
torical Tables, which is published as a separate volume
of the budget.
At the end of World War II, Federal debt equalled
more than 100 percent of GDP. From then until the
1970s, Federal debt grew gradually, but, due to infla
tion, it declined significantly in real terms. Because
of an expanding economy as well as inflation, Federal
debt as a percentage of GDP decreased almost every
year. With households borrowing heavily to buy homes
and consumer durables, and with businesses borrowing
heavily to buy plant and equipment, Federal debt also
decreased almost every year as a percentage of the
total credit market debt outstanding. The cumulative
effect of this was impressive. From 1950 to 1970, debt
held by the public declined from 82.4 percent of GDP
to 28.7 percent, and from 55.3 percent of credit market
debt to 20.8 percent. At the same time, despite rising
interest rates, interest outlays became a smaller share
TABLE 13-1. TRENDS IN FEDERAL DEBT HELD BY THE PUBLIC
(Dollar amounts in billions)
Debt held by the public
Current dollars
Constant 1987
dollars'
Debt held by the public as a
percent of:
Interest on debt held by the public
as a percent of:3
GDP
Credit market
debt2
Total outlays
GDP
1950
1955
1960
1965
1970
1975
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
219.0
226.6
236.8
260.8
283.2
394.7
1,094.2
1,001.4
907.7
922.1
818.2
829.5
82.4
58.9
46.9
38.9
28.7
26.1
55.3
43.4
33.8
26.9
20.8
18.4
11.4
7.6
8.5
8.1
7.9
7.5
1.8
1.3
1.5
1.4
1.6
1.7
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
1,004.9
1,009.3
1,100.2
1,299.7
1,430.9
26.8
26.5
29.4
34.1
35.2
18.6
18.7
20.0
22.1
22.4
10.6
12.1
13.6
13.8
15.7
2.4
2.8
3.2
3.4
3.6
1,589.6
1,786.6
1,888.1
1,978.4
2,021.5
37.8
41.2
42.4
42.6
42.3
22.7
23.0
22.7
22.6
22.3
16.2
16.1
16.0
16.2
16.5
3.9
3.8
3.6
3.6
3.7
1990 ...............................................................................................................................
1991 ...............................................................................................................................
1992 ...............................................................................................................................
1993 ...............................................................................................................................
1994 estimate................................................................................................................
709.3
784.8
919.2
1,131.0
1,300.0
1,499.4
1,736.2
1,888.1
2,050.3
2,189.3
2,410.4
2,687.9
2,998.6
3,247.2
3,472.4
2,134.0
2,283.5
2,472.4
2,607.2
2,742.6
44.0
47.4
50.5
51.6
52.3
22.9
24.4
25.9
26.8
16.2
16.2
15.5
14.9
14.3
3.7
3.8
3.6
3.3
3.2
1995 estimate................................................................................................................
1996 estimate................................................................................................................
1997 estimate................................................................................................................
1998 estimate................................................................................................................
1999 estimate................................................................................................................
3,646.1
3,828.5
4,029.9
4,237.2
4,436.3
2,802.1
2,860.1
2,923.8
2,984.6
3,033.8
51.9
51.6
51.4
51.1
50.7
14.6
14.5
14.3
14.2
14.1
3.2
3.1
3.1
3.0
3.0
1 Debt in current dollars deflated by the GDP deflator with 1987 - 100.
2 Total credit market debt owed by domestic nonfinandal sectors, modified to be consistent with budget concepts for the measurement of Federal debt. Financial sectors are omitted to avoid double counting, since financial
intermediaries both borrow and lend m the credit market Source: Federal Reserve Board flow of funds accounts. Projections are 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 subfunctions 902 and 903). It does not include the comparatively small
amount of interest on agency debt or the offsets for other interest on public debt received by Government accounts.
185
186
ANALYTICAL PERSPECTIVES
for additional tangible or intangible investment, the
Federal demand on credit markets has to be financed
by the saving of households and businesses, the State
and local sector, or the rest of the world.2 Borrowing
from the public moreover affects the size and composi
tion of assets held by the private sector and the per
ceived wealth of the public. It also affects the amount
of taxes required to pay interest to the public on Fed
eral debt. Borrowing from the public is therefore an
important concern of Federal fiscal policy.
Issuing debt securities to Government accounts is an
essential element in accounting for the operation of
these funds. The balances of debt represent the cumu
lative 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
in order to finance future spending (as in the case of
social security) or to measure the accruing cost of em
ployee pension compensation (in the case of the military
and new civilian employees).
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 Govern
ment with the public or an estimated amount of future
transactions with the public. For example, if the ac
count conducts a retirement program, the debt that
it holds does not represent the actuarial present value
of future benefits. The future transactions of Federal
social insurance and retirement programs, which own
Debt Held by the Public and Gross Federal
about four-fifths of the debt held by Government ac
Debt
counts, are important in their own right and need to
The Federal Government issues debt for two principal be considered separately. Debt held by the public is
purposes. First, it borrows from the public in order therefore a better concept than gross Federal debt for
to finance the Federal deficit. Second, it issues debt analyzing the effect of the budget on the economy.3
to Government accounts, primarily trust funds, that
Borrowing and Government Deficits
accumulate surpluses. By law, most trust fund sur
Table 13-2 summarizes Federal borrowing and debt
pluses must be invested in Federal securities. The gross
Federal debt is thus defined to consist of both the debt from 1993 through 1999. In 1993 the borrowing from
held by the public and the debt held by Government the public was $247.3 billion, and Federal debt held
accounts. Nearly all the Federal debt has been issued by the public increased to $3,247.2 billion. The issuance
by the Treasury and is formally called “public debt,”
2The Federal sector of the national income and product accounts provides a better measure
but a small portion has been issued by other Govern of the deficit for analyzing the effect of Federal fiscal policy on national saving than does
the budget deficit or Federal borrowing from the public. The Federal sector and its dif
ment agencies and is called “agency debt.” 1
ferences from the budget are discussed in Chapter 19.
3Debt held by the public was measured until recent years as the par value (or face
Borrowing from the public, whether by the Treasury
value) of the security, which is the principal amount due at maturity. The only exception
or some other Federal agency, has a significant impact was savings bonds. However, most Treasury securities are sold at a discount from par,
some are sold at
premium. Treasury debt held by the public is
on the economy. Borrowing from the public is normally andthe sales prices plusathe unamortized discount (or less the unamortizednow measured
as
premium). At
a good approximation to the Federal demand on credit the time of sale, the value equals the sales price. Subsequently, the value equals the
sales price plus the amount of the discount that has been amortized up to that time.
markets. Even if the proceeds are used productively In equivalent terms, the value equals par less the unamortized discount. (For a security
of the budget and were roughly stable as a percentage
of GDP.
During the 1970s, large budget deficits emerged as
the economy was disrupted by oil shocks and inflation.
The nominal amount of Federal debt more than dou
bled, and, despite high inflation, the real value of Fed
eral debt increased by about a fifth. The ratios of Fed
eral debt to GDP and credit market debt stopped declin
ing after the middle of the decade.
The growth of Federal debt held by the public acceler
ated during the early 1980s due to very large budget
deficits. Since the deficits have continued to be large,
debt has continued to grow substantially, although the
rate of increase has been slowed. With inflation re
duced, the large growth in nominal debt has meant
a large growth in real debt as well. The ratio of Federal
debt to GDP rose from 26.8 percent in 1980 to 51.6
percent in 1993, the highest ratio since 1956. The ratio
of Federal debt to credit market debt also rose, though
to a much lesser extent, from 18.6 percent to 26.8 per
cent. Interest outlays on debt held by the public, cal
culated as a percentage of both total Federal outlays
and GDP, increased by about a half.
Federal debt held by the public is estimated in table
13-1 to continue to increase in 1994 and the following
years but at a markedly slower rate. The spending re
ductions and tax increases in the Omnibus Budget Rec
onciliation Act of 1993 reduced the total cumulative
deficit during 1994-98 by about $500 billion, and by
the end of the decade the Administration’s proposal
for health care reform is estimated to reduce it further.
As a result of these measures and the continuing eco
nomic expansion, debt as a percentage of GDP is esti
mated to decline gradually after 1994. Interest outlays
have already begun to decline as a percentage of both
Federal outlays and GDP and are estimated to gradu
ally decline further over the rest of the decade.
iThe term "agency debt” is defined more narrowly in the budget than in the securities
market, where it includes not only the debt of the Federal agencies listed in table 13-3
but also the debt of the Government-sponsored enterprises listed in a table at the end
of Chapter 10 and certain Government-guaranteed securities.
sold at a premium, the definition is symmetrical.) Agency debt, except for zero-coupon
certificates, is recorded at par. For further analysis of the concepts, see Special Analysis
E, “Borrowing and Debt,” in Special Analyses, Budget of the United States Government,
Fiscal Year 1990, pp. E-5 to E-8, although some of the practices it describes have been
changed.
187
13. FEDERAL BORROWING AND DEBT
of debt to Government accounts was $100.7 billion, and
gross Federal debt increased to $4,351.2 billion. Borrow
ing from the public is estimated to decrease to $173.7
billion in 1995.
Borrowing from the public depends both on the Fed
eral Government’s expenditure programs and tax laws
and on economic conditions. The sensitivity of the budg
et to economic conditions is analyzed in Chapter 1 of
this volume.
Debt held by the public.—Table 13-2 shows the
relationship between borrowing from the public and the
Federal deficit. The total deficit of the Federal Govern
ment includes not only the budget deficit but also the
surplus or deficit of the off-budget Federal entities,
TABLE 13-2.
which have been excluded from the budget by law.
Under present law the off-budget Federal entities are
the social security trust funds (old-age and survivors
insurance and disability insurance) and the Postal Serv
ice fund.4 Since they had a large combined surplus
in 1993 and are estimated to have a growing surplus
during 1994-99, they reduce the requirement for Treas
ury to borrow from the public by a substantial amount.
The total Federal deficit is financed either by borrow
ing from the public or by the other means shown in
table 13-2, such as a decrease in Treasury’s cash bal
ance. Many of these other means of financing are nor
mally small relative to borrowing from the public. This
4 For further explanation of the off-budget Federal entities, see Chapter 22, “Off-Budget
Federal Entities.”
FEDERAL GOVERNMENT FINANCING AND DEBT <
(In billions of dollars)
Estimate
1993
actual
FINANCING
Surplus or deficit (-) ...............................................................................................
(On-budget)........................................................................................................
(Off-budget)........................................................................................................
1994
1995
1996
1997
1998
1999
-254.7
-300.0
45.3
-234.8
-290.1
55.3
-165.1
-225.0
59.9
-169.6
-236.3
66.7
-186.4
-265.5
79.2
-190.5
-279.2
88.7
-181.1
-278.6
97.6
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.............................................................
6.3
0.4
-0.4
0.4
12.5
-0.9
-0.5
0.6
—
—
—
—
—
—
—
—
—
—
-0.4
-1.7
0.6
0.6
0.6
0.6
0.6
-3.8
4.6
-6.4
4.2
-10.1
3.0
-15.9
2.5
-17.9
2.3
-18.9
1.4
-19.0
0.4
Total, means of financing other than borrowing from the public...............
7.4
9.5
-8.6
-12.8
-15.0
-16.8
-18.0
Total, requirement for borrowing from the public......................................
Reclassification of debt4 ...........................................................................
-247.3
-1.3
-225.2
-173.7
-182.4
-201.4
-207.3
-199.1
Change in debt held by the public................................................................
248.5
225.2
173.7
182.4
201.4
207.3
199.1
4,326.5
24.8
4,652.1
23.9
4,936.0
24.2
5,243.0
24.1
5,577.2
24.1
5,929.4
24.1
6,281.4
24.1
—
—
—
—
—
—
—
—
—
DEBT, END OF YEAR 1
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)............................................................................................................
4,351.2
4,676.0
4,960.1
5,267.1
5,601.3
5,953.5
6,305.4
1,104.0
3,247.2
325.7
2,921.5
1,203.6
3,472.4
1,314.0
3,646.1
1,438.5
3,828.5
1,571.3
4,029.9
1,716.3
4,237.2
1,869.1
4,436.3
DEBT SUBJECT TO STATUTORY LIMITATION, END OF YEAR
Debt issued by Treasury ........................................................................................
Less: Treasury debt not subject to limitations .......................................................
Agency debt subject to limitation ...........................................................................
Adjustment for discount and premium e .................................................................
4,326.5
-15.6
0.2
4.5
4,652.1
-15.6
0.1
4.5
4,936.0
-15.6
0.1
4.5
5,243.0
-15.6
0.1
4.5
5,577.2
-15.6
0.1
4.5
5,929.4
-15.6
0.1
4.5
6,281.4
-15.6
0.1
4.5
Total, debt subject to statutory limitation7 ...................................................
4,315.6
4,641.1
4,925.0
5,232.0
5,566.2
5,918.4
6,270.3
1 Treasury
securities held by the public and zero-coupon bonds held by Government accounts are almost entirely measured at sales price plus amortized discount or less amortized premium. Agency debt is almost entirely
measured at face value. Treasury securities in the Government account series are measured at face value less unrealized discount (if any).
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.
3 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 oper
ating 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 This reclassification does not constitute borrowing.
s Consists primarily of Federal Financing Bank debt
6 Consists of unamortized discount (less premium) on public issues of Treasury notes and bonds (other than zero-coupon bonds) and unrealized discounts on Government account series securities.
7The statutory debt limit is $4,900 billion.
188
is because they are limited by their own nature. De
creases in cash balances, for example, are inherently
limited by past accumulations, which themselves re
quired financing when they were built up. In 1993
these other accounts added up to a positive amount,
$7.4 billion, which reduced the need to borrow from
the public.
One of the other means of financing was created by
the Federal Credit Reform Act of 1990. Budget outlays
for direct loans and loan guarantees consist of the esti
mated subsidy cost of the loans or guarantees at the
time when the direct loans or guaranteed loans are
disbursed. The portion of the net cash flow that does
not represent a cost to the Government is non-budgetary in nature and is recorded as a transaction of
the financing account for each credit program.5
The “net financing disbursements” of a financing ac
count are defined in the same way as the “outlays”
of a budgetary account and may be either positive or
negative. They are positive if the gross disbursements
by the account—whether to the public or to a budgetary
account—exceed the collections from both of these
sources; they are negative if the collections exceed the
gross disbursements. If the net financing disbursements
are positive, they must be paid in cash and thus in
crease the requirement for Treasury borrowing; if the
net financing disbursements are negative, they provide
cash to the Treasury that can be used to pay the Gov
ernment's bills in the same way as tax receipts, borrow
ing, or any other cash collection. The financing accounts
are therefore a means of financing the Government,
positive or negative, just like the other means listed
in table 13-2. A positive amount of net financing dis
bursements is shown in the table by the financing ac
count having a negative sign, like the deficit, so that
it is shown adding to the requirement for borrowing
from the public.
The financing accounts subtracted a small amount
from borrowing requirements in 1993. However, they
are expected to add to borrowing requirements begin
ning in 1994, and their total net effect is estimated
to widen in the following years and reach $18.6 billion
by 1999. The principal reason is that the Omnibus
Budget Reconciliation Act of 1993 replaced much of the
guaranteed student lending with direct loans in order
to lower Federal cost by providing student assistance
more efficiently. It is estimated that 60 percent of the
lending in 1998-99 will be direct loans. Since direct
loans require cash disbursements equal to the full
amount of the loans when the loans are made, Federal
borrowing requirements are increased.
Debt held by Government accounts.—The amount
of Federal debt issued to Government accounts depends
largely on the surpluses of the trust funds, both onbudget and off-budget, which owned 95 percent of the
total Federal debt held by Government accounts at the
end of 1993. In 1993, for example, the total trust fund
ANALYTICAL PERSPECTIVES
surplus was $100.0 billion and Government accounts
invested $100.7 billion in Federal securities. The small
difference is because some other accounts hold Federal
debt and because the trust funds may change the
amount of their cash assets not currently invested. The
amounts held in major accounts and the annual invest
ments are shown in table 13-4.
Agency Debt
Several Federal agencies, shown in table 13-3, sell
debt securities to the public and in one case to other
Government accounts. During 1993, agencies borrowed
$5.4 billion, and reclassifying the Farm Credit System
Financial Assistance Corporation from a Governmentsponsored enterprise to a Federal agency increased
agency debt by another $1.3 billion. Agency debt is
only one percent of Federal debt held by the public.
The reason for issuing agency debt differs consider
ably from one agency to another. The predominant
agency borrower in 1993 was the Tennessee Valley Au
thority, which borrowed $5.7 billion from the public.
Most of this borrowing was to buy back its nuclear
fuel inventory that had previously been leased to the
Seven States Energy Corporation and to engage in ad
vance refunding of some of its existing debt.
The Federal Housing Administration, on the other
hand, has for many years issued both checks and de
bentures as means of paying claims to the public that
arise from defaults on FHA-insured mortgages. Issuing
debentures to pay the Government’s bills is equivalent
to borrowing from the public and then paying the bills
by disbursing the cash borrowed, so the transaction
is recorded as being simultaneously an outlay and a
borrowing. The notes are therefore classified as agency
debt. The borrowing by FHA and other agencies that
have engaged in similar transactions is thus inherent
in the way that their programs operate.6
Some types of lease-purchase contracts are equivalent
to direct Federal construction financed by Federal bor
rowing. The Federal Government guaranteed the debt
used to finance the construction of buildings for the
National Archives and the Architect of the Capitol and
has exercised full control over the design, construction,
and operation of the buildings. The construction ex
penditures and interest were therefore classified as
Federal outlays, and the borrowing was classified as
Federal agency borrowing from the public. The securi
ties used to finance the construction of the building
for the Architect of the Capitol were zero-coupon certifi
cates, for which the sales price was about one-fourth
of par value. As an exception to the normal treatment
of agency debt, but like Treasury zero-coupon bonds,
they are recorded at the sales price plus the amortized
discount. The interest is accrued as an outlay.
The proper budgetary treatment of lease-purchases
was further examined in connection with the Budget
6 The debt securities of the Federal Deposit Insurance Corporation and Department of
5 As explained in Chapter 22, “Off-Budget Federal Entities," the financing accounts are the Interior were also issued as a means of paying specified bills. The budgetary treatment
of these securities is further discussed in Special Analysis E of the 1989 Budget, pp.
non-budgetary in concept because they do not measure cost. For further discussion of credit
E-25 to E-26; and Special Analysis E of the 1988 Budget, pp. E-27 to E-28.
reform, see Chapter 10, “Underwriting Federal Credit and Insurance.”
189
13. FEDERAL BORROWING AND DEBT
TABLE 13-3. AGENCY DEBT
(In millions of dollars)
Borrowing or repayment (-) of debt
Description
1993
actual
1994
estimate
1995
estimate
Borrowing from the public:
_*
-1
Defense ............................................................................................................
-6
Housing and Urban Development:
14
-112
Federal Housing Administration...................................................................
1
-5
Interior...............................................................................................................
Small Business Administration:
Participation certificates: SBIC and section 505 development company.....
14
7
Architect of the Capitol.....................................................................................
-1
Farm Credit System Financial Assistance Corporation1 .................................
Federal Deposit Insurance Corporation:
Bank Insurance Fund ...................................................................................
-93
-194
-943
FSLIC Resolution Fund................................................................................
National Archives .............................................................................................
—
3
-4
5,660
Tennessee Valley Authority..............................................................................
325
250
Total, borrowing from the public.........................................................
5,493
Borrowing from other funds:
Housing and Urban Development:
Federal Housing Administration ...................................................................
-830
Debt end of
1995
estimate
81
8
74
182
1,261
295
22,250
246
24,151
-102
-1
20
Total, borrowing from other funds.......................................................
-102
-1
20
Total, agency borrowing........................................................................
5,391
245
24,171
-830
*$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.
Enforcement Act of 1990. Several changes were made.
Among other decisions, it was determined that outlays
for a lease-purchase in which the Government assumes
substantial risk will be recorded in an amount equal
to the asset cost over the period during which the con
tractor constructs, manufactures, or purchases the
asset; if the asset already exists, the outlays will be
recorded when the contract is signed. Agency borrowing
will be recorded each year to the extent of these out
lays. The agency debt will subsequently be redeemed
over the lease payment period by a portion of the an
nual lease payments. This rule was effective starting
in 1991. However, no lease-purchase agreements in
which the Government assumes substantial risk have
yet been authorized or are estimated for 1994 or 1995.
Besides the lease-purchases financed by agency bor
rowing from the public, the budget also reflects the
cost of lease-purchases financed by the Federal Financ
ing Bank (FFB). The FFB, established within the
Treasury Department, can lend to agencies by purchas
ing agency debt or in other specified ways. It finances
these transactions by borrowing from the Treasury,
which in turn borrows from the public. This reduces
the cost of financing below what the agency or guaran
teed private borrower would have had to pay in the
credit market. In 1988, 1989, and 1990 Congress au
thorized the General Services Administration to enter
into lease-purchase contracts for a number of buildings
to be constructed over five years at a total cost of $1.9
billion. The FFB is financing these contracts. The out
lays are recorded in the budget as payments are made
for construction and other costs, and the financing con
150-003
http://fraser.stlouisfed.org/ 0 -9 4 -7 (QL 3)
Federal Reserve Bank of St. Louis
sists of Treasury borrowing from the public. Borrowings
from the FFB are not included in table 13-3 or other
tabulations of Federal debt in order to avoid double
counting.
Debt Held by Government Accounts
Trust funds, and some public enterprise revolving
funds and special funds, accumulate cash in excess of
current requirements in order to meet future obliga
tions. These cash surpluses are invested mostly in
Treasury debt and, to a very small extent, in agency
debt.
Investment by trust funds and other Government ac
counts was around $10 billion per year in the early
1980s. Primarily due to the Social Security Amend
ments of 1983, an expanding economy, and the creation
of the military retirement trust fund, investment has
risen greatly since then. It was $100.7 billion in 1993
and, as shown in table 13-4, it is estimated to be
$110.4 billion in 1995. The holdings of Federal securi
ties by Government accounts are estimated to rise to
$1,314.0 billion by the end of 1995. This will be 26
percent of the gross Federal debt.
The large investment by Government accounts is con
centrated among a few trust funds. The two social secu
rity trust funds—old-age and survivors insurance and
disability insurance—have a combined large surplus
and invest increasing amounts almost each year: a total
of $166.6 billion during 1993-95, which constitutes 54
percent of the total estimated investment by Govern
ment accounts. The hospital insurance trust fund, also
financed by the social security payroll tax, has sur-
190
ANALYTICAL PERSPECTIVES
TABLE 13-4. DEBT HELD BY GOVERNMENT ACCOUNTS i
(In m
illions of dollars)
Investment or disinvestment (-)
Description
1994
estimate
actual
Investment in Treasury debt:
Overseas Private Investment Corporation ........................................
Defense-Military: Defense Cooperation............................................
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 .....................................................
Labor:
Unemployment trust fund ............................................................
Pension Benefit Guaranty Corporation i .....................................
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 ...................................................................
FSLIC 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..............................................................................
Unrealized discount..........................................................................
92
-2,023
8,937
1995
estimate
Holdings end
of 1995
9,060
379
-2
-4
8,220
589
3,265
7
113,969
4,930
48,986
-2,681
5,432
4,734
49,160
8,094
3,500
-1,407
52,929
10,135
5,945
-6,581
457,599
28,466
135,523
13,280
-641
468
1,603
635
1,335
664
8,132
4,739
76
-29
77
-1,266
82
4
1,257
1,473
1,509
1,918
667
564
3,528
819
655
42,052
6,023
7,880
1,042
-2,419
2,322
-6,772
-5,407
258
-169
28
171
15,063
7,293
6,065
356
51
-44
942
184
28
-96
607
120
28
-41
741
11,970
1,681
569
6,046
27,275
1,084
801
28,003
1,098
962
28,146
367,853
15,896
8,652
-339
-517
943
367
-1,653
433
1,213
-33
1,506
6,365
-362
1,065
305
-76
-452
-39
418
5,578
-161
1,119
370
-273
106
-3,000
117
452
16,267
305
3,468
3,420
542
11,992
99,573
100,385
1,313,981
-102
-1
20
Total, investment in agency debt ........
-102
-1
20
Total, investment in Federal debt 1 .....
100,743
99,573
110,384
1,314,001
11,880
7,633
-273
41,225
63,065
-1,266
61,550
542
766,610
Total, investment in Treasury debt1
Investment in agency debt:
Housing and Urban Development:
Government National Mortgage Association
1,475
2
2,212
-
-6
100,844
1,110
3,083
7,459
-770
MEMORANDUM
Investment by Federal funds (on-budget)1
Investment by Federal funds (off-budget) ..
Investment by trust funds (on-budget).......
Investment by trust funds (off-budget).......
Investment by deposit funds3 ....................
Unrealized discount...................................
3,740
-1,653
52,311
46,305
46
-6
-
2,212
32,678
57,254
-29
-770
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 at the market or redemption price; and the unrealized discount on Government account series securities, which is not dis
tributed by account. Changes are not estimated in the unamortized discount on PBGC bonds or the unrealized discount. If recorded at face value, PBGC's holdings at
the end of 1993 would be $12,006 million higher.
2 Off-budget Federal entity.
3 Only those deposit funds classified as Government accounts.
13. FEDERAL BORROWING AND DEBT
pluses at present and accounts for 5 percent of the
total investment over this period.
In addition to these three funds, the largest investors
are the two major Federal employee retirement funds:
the civil service retirement and disability trust fund
and the military retirement trust fund. They account
for 35 percent of the total investment by Government
accounts during 1993-95. Altogether, the investment
of these two retirement funds and the three funds fi
nanced by the social security tax equals 94 percent
of the investment by all Government accounts during
this period. At the end of 1995, they will account for
84 percent of the total holdings by Government ac
counts.
Technical note on measurement.—The Treasury secu
rities held by Government accounts consist almost en
tirely of the Government account series. Most was is
sued at par value (face value), and the securities issued
at a discount or premium have traditionally been re
corded at par in the OMB and Treasury reports on
Federal debt. However, there are now two exceptions.
First, since 1991 Treasury has issued zero-coupon
bonds to the Pension Benefit Guaranty Corporation
(PBGC). Because the purchase price is a small fraction
of par value and the amounts are large, the PBGC
holdings are recorded in table 13-4 at purchase price
plus amortized discount. The valuation method is the
estimated market or redemption price. Treasury aggre
gates all debt held by Government accounts at par but
subtracts the unamortized discount in calculating "net
federal securities held as investments of government
accounts.”
Second, as of September 1993 Treasury has also sub
tracted the unrealized discount on other Government
account series securities in calculating “net federal se
curities held as investments of government accounts.”
Unlike the discount recorded for PBGC or for debt held
by the public, this discount is the amount at the time
of issue and is not amortized over the term of the
security. It is much smaller than the unamortized dis
count on the zero-coupon bonds held by PBGC: $0.8
billion at the end of 1993 compared to $12.0 billion.
In table 13-4 it is shown as a separate item at the
end of the table and is not distributed by account. The
data for 1989-92 were revised retroactively for this
change.
Limitations on Federal Debt
Definition o f debt subject to limit.—Statutory lim
itations have normally been placed on Federal debt.
Until World War I, the Congress ordinarily authorized
a specific amount of debt for each separate issue. Begin
ning with the Second Liberty Bond Act of 1917, how
ever, the nature of the limitation was modified in sev
eral steps until it developed into a ceiling on the total
amount of most Federal debt outstanding. The latter
type of limitation has been in effect since 1941. The
limit currently applies to most debt issued by the
Treasury since September 1917, whether held by the
public or by Government accounts; and other debt is
191
sued by Federal agencies that, according to explicit
statute, is guaranteed as to principal and interest by
the United States Government.
The lower part of table 13-2 compares total Treasury
debt with the amount of Federal debt that is subject
to the limit. Most of the Treasury debt not subject
to limit was issued by the FFB. It is authorized to
have outstanding up to $15 billion of publicly issued
debt, and this amount has been issued to the civil serv
ice retirement and disability trust fund. The remaining
Treasury debt not subject to limit consists almost en
tirely of silver certificates and other currencies no
longer being issued.
The sole type of agency debt currently subject to the
general limit is the debentures issued by the Federal
Housing Administration, which were only $213 million
at the end of 1993. Some of the other agency debt,
however, is subject to its own statutory limit. For exam
ple, the Tennessee Valley Authority is limited to $30
billion of securities outstanding (including its debt to
the FFB).
The comparison between Treasury debt and debt sub
ject to limit also includes an adjustment for measure
ment differences in the treatment of discounts and pre
miums. As explained elsewhere in this chapter, debt
securities may be sold at a discount or premium, and
the measurement of debt may take this into account
rather than recording the face value of the securities.
However, the treatment is not uniform. An adjustment
is needed to derive debt subject to limit (as defined
by law) from Treasury debt, and this adjustment is
specified in footnote 6 to table 13-2. The amount is
relatively small: $4.5 billion at the end of 1993 com
pared to the total discount (less premium) of $85.0 bil
lion recognized on Treasury securities.
Methods o f changing the debt limit.—The statu
tory debt limit has frequently been changed. Since
1960, Congress has passed 64 separate acts to raise
the limit or extend the duration of a temporary in
crease.
The statutory limit can be changed by normal legisla
tive procedures. It can also be changed as a con
sequence of the annual Congressional budget resolution,
which is not itself a law. The budget resolution includes
a provision specifying the appropriate level of the debt
subject to limit at the end of each fiscal year. The
rules of the House of Representatives provide that,
when the budget resolution is adopted by both Houses
of the Congress, the vote in the House of Representa
tives is deemed to have been a vote in favor of a joint
resolution setting the statutory limit at the level speci
fied in the budget resolution. The joint resolution is
transmitted to the Senate for further action. It may
be amended in the Senate to change the debt limit
provision or in any other way. If it passes both Houses
of the Congress, it is sent to the President for his
signature. This method directly relates the decision on
the debt limit to the decisions on the Federal deficit
and other factors that determine the change in the
192
ANALYTICAL PERSPECTIVES
debt subject to limit. Both methods have been used
numerous times.
Recent changes in the debt limit.—A statutory
debt 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. The negotia
tions were concluded with the Omnibus Budget Rec
onciliation 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 since the period from
1946 to 1954.
In the spring of 1993 the debt approached the limit,
and Treasury had to postpone several auctions. On
April 6, 1993, the Congress passed a bill raising the
limit to $4,370 billion through September 30, 1993, and
the President signed the bill on that same day. A fur
ther debt limit increase, one without an expiration date,
accompanied the deficit reduction package as part of
the Omnibus Budget Reconciliation Act of 1993. This
Act, which the President signed on August 10, 1993,
increased the limit to $4,900 billion.
Federal funds financing and the change in debt
subject to limit.—The change in debt held by the pub
lic, as shown in table 13-2, is determined principally
by the total Government deficit. The debt subject to
TABLE 13-5.
limit, however, includes not only debt held by the public
but also debt held by Government accounts. The change
in debt subject to limit is therefore determined both
by the factors that determine the total Government
deficit and by the factors that determine the change
in debt held by Government accounts.
The budget is composed of two groups of funds, Fed
eral funds and trust funds. The Federal funds, in the
main, are derived from tax receipts and borrowing and
are used for the general purposes of the Government.
The trust funds, on the other hand, are financed by
taxes or other collections earmarked by law for specified
purposes, such as paying social security or unemploy
ment benefits.7
A Federal funds deficit must generally be financed
by borrowing, either by selling securities to the public
or by issuing securities to Government accounts. Fed
eral funds borrowing consists almost entirely of the
Treasury issuing securities that are subject to the stat
utory debt limit. Trust fund surpluses are almost en
tirely invested in these securities, and trust fund hold
ings include most of the debt held by Government ac
counts. The change in debt subject to limit is therefore
determined principally by the Federal funds deficit,
7 For further discussion of the trust funds and Federal funds groups, see Chapter 18,
‘Trust Funds and Federal Funds."
FEDERAL FUNDS FINANCING AND CHANGE IN DEBT SUBJECT TO STATUTORY LIMIT
(In billions of dollars)
Description
1993
actual
Estimate
1994
1995
1996
1997
1996
1999
-354.7
-353.3
-1.4
-334.4
-332.6
-1.7
-267.7
-264.4
-3.3
-288.8
-288.5
-0.2
-316.5
-317.0
0.5
-333.8
-334.9
1.1
-333.1
-334.6
1.5
6.3
1.8
-0.4
0.4
12.5
8.8
-0.5
0.6
-2.1
-1.7
0.6
0.6
0.6
0.6
0.6
-3.8
4.6
-6.4
4.2
-10.1
3.0
-15.9
2.5
-17.9
2.3
-18.9
1.4
-19.0
0.4
Total, means of financing other than borrowing ...............................................
8.8
19.2
-10.3
-12.8
-15.0
-16.8
-18.0
Decrease or increase (-) in Federal debt held by Federal funds and deposit funds4 .......
Increase or decrease (-) in Federal debt not subject to limit.............................................
-2.1
6.7
-9.6
-0.7
-6.1
0.2
-5.3
-0.1
-2.7
-1.6
-0.8
Total, requirement for Federal funds borrowing subject to debt lim it............
-341.3
-325.5
-283.9
-307.0
-334.2
-352.2
-351.9
Adjustment for change in discount or premium 5 ................................................................
Reclassification of debt.................................. ......................................................................
Increase in debt subject to limit...........................................................................................
-0.5
-1.3
343.0
325.5
283.9
307.0
334.2
352.2
351.9
ADDENDUM
Debt subject to statutory limit ® ............................................................................................
4,315.6
4,641.1
4,925.0
5,232.0
5,566.2
5,918.4
6,270.3
Federal funds, surplus or deficit ( - ) .................................................................................
(On-budget)......................................................................................................................
(Off-budget)......................................................................................................................
Means of financing other than borrowing:
Change in:1
Treasury operating cash balance................................................................................
Checks outstanding, etc.2 ...........................................................................................
Deposit fund balances3 ...............................................................................................
Seigniorage on coins........................................................................................................
Less: Net financing disbursements:
Direct loan financing accounts.....................................................................................
Guaranteed loan financing accounts...........................................................................
iimiuh or less.
_*
1 A decrease in the Treasury operating cash balance (which is an asset) Is a means of financing the d efat 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 Kabiities) is also a means of financing the deficit and therefore also has a positive sign.
2 Besides checks outstanding, indudes accrued interest payable on Treasury debt, miscellaneous liabity accounts, alocations of special drawing rights, and, as an offset, cash and monetary assets other than the Treasury oper
ating cash balance, miscellaneous asset accounts, and profit on sale of gold.
3 Does not indude investment in Federal debt securities by deposit funds classified as part of the pubfic.
4 Only those deposit funds d as fifi^ as Government accounts.
fi Consists of unamortized discount (less premium) on public issues of Treasury notes and bonds (other than zero-coupon bonds) and unrealized discount on Government account series securities.
•The statutory debt Umit is $4,900 bUion.
193
13. FEDERAL BORROWING AND DEBT
which is equal to the arithmetic sum of the total Gov
ernment deficit and the trust fund surplus.
Table 13-5 derives the change in debt subject to
limit. In 1993 the Federal funds deficit was $354.7 bil
lion; and other factors reduced the requirement to bor
row subject to limit by $13.4 billion. The largest other
factors were the decrease in Treasury cash balances
and the increase in agency debt not subject to the gen
eral limit. As a result, the debt subject to limit in
creased by $343.0 billion, which was $94.5 billion more
than the increase in debt held by the public.
So long as the trust fund surplus is large, the Federal
funds deficit will be much more than the total Govern
ment deficit; and the increase in debt subject to limit
will be much more than the increase in debt held by
the public. The trust fund surplus is estimated to re
main large, so the debt limit will have to be increased
in the future by much more than needed to finance
the total Government deficit.
Debt Held by Foreign Residents
During most of American history the Federal debt
was held almost entirely by individuals and institutions
within the United States. In the late 1960s, as shown
in table 13-6, foreign holdings were just over $10.0
billion, less than 5 percent of the total Federal debt
held by the public.
Foreign holdings began to grow much faster starting
in 1970. This increase has been primarily due to foreign
decisions, both official and private, rather than the di
rect marketing of these securities to foreign residents.
At the end of fiscal year 1993 foreign holdings of Treas
ury debt were $592.1 billion, which was 18 percent
of the total debt held by the public.
Although the amount of debt held by foreigners has
grown greatly in the past ten years, the proportion
is now about the same as during the late 1970s. It
has been roughly stable the past few years. At the
end of fiscal year 1993, foreign central banks and other
TABLE 13-6. FOREIGN HOLDINGS OF FEDERAL DEBT
(Dollar amounts in billions)
Debt held by the public
Fiscal year
Total
Foreign1
Borrowing from the public
Percent
age
foreign
Total 2
Foreign1
Interest on debt held by the public
Percent
age
foreign
Total3
Foreign4
Percent
age
foreign
1965
1966
1967
1968
1969
......................................................
......................................................
......................................................
......................................................
......................................................
260.8
263.7
266.6
289.5
278.1
12.3
11.6
11.4
10.7
10.3
4.7
4.4
4.3
3.7
3.7
3.9
2.9
2.9
22.9
-1.3
0.3
-0.7
-0.2
-0.7
-0.4
6.4
n.a.
n.a.
n.a.
n.a.
. 9.6
10.1
11.1
11.9
13.5
0.5
0.5
0.6
0.7
0.7
4.9
5.1
5.1
5.6
5.3
1970
1971
1972
1973
1974
......................................................
......................................................
......................................................
......................................................
......................................................
283.2
303.0
322.4
340.9
343.7
14.0
31.8
49.2
59.4
56.8
5.0
10.5
15.2
17.4
16.5
3.5
19.8
19.3
18.5
2.8
3.8
17.8
17.3
10.3
-2.6
107.2
89.8
89.5
55.3
n.a.
15.4
16.2
16.8
18.7
22.7
0.8
1.3
2.4
3.2
4.1
5.5
7.9
14.2
17.2
17.9
1975 ......................................................
1976 ......................................................
TQ .........................................................
1977 ......................................................
1978 ......................................................
19795 ....................................................
394.7
477.4
495.5
549.1
607.1
639.8
66.0
69.8
74.6
95.5
121.0
120.3
16.7
14.6
15.1
17.4
19.9
18.8
51.0
82.2
18.1
53.6
58.0
32.6
9.2
3.8
4.9
20.9
25.4
-0.7
18.0
4.6
26.9
39.0
43.5
n.a.
25.0
29.3
7.8
33.8
40.2
49.9
4.5
4.4
1.2
5.1
7.9
10.7
18.2
15.1
14.9
15.0
19.5
21.5
1980 ......................................................
1981 ......................................................
1982 ......................................................
1983 ......................................................
1984 ......................................................
19855 ....................................................
1986 ......................................................
1987 ......................................................
1988 ......................................................
1989 ......................................................
709.3
784.8
919.2
1,131.0
1,300.0
121.7
130.7
140.6
160.1
175.5
17.2
16.7
15.3
14.2
13.5
69.5
75.5
134.4
211.8
168.9
1.4
9.0
9.9
19.5
15.4
2.0
12.0
7.4
9.2
9.1
62.8
81.7
101.2
111.6
133.5
11.0
16.4
18.7
19.2
20.3
17.5
20.1
18.5
17.2
15.2
1,499.4
1,736.2
1,888.1
2,050.3
2,189.3
222.9
265.5
279.5
345.9
394.9
14.9
15.3
14.8
16.9
18.0
199.4
236.8
152.0
162.1
139.1
47.4
42.7
14.0
66.4
49.0
n.a.
18.0
9.2
40.9
35.2
152.9
159.3
160.4
172.3
189.0
23.0
24.2
25.7
29.9
37.1
15.1
15.2
16.0
17.4
19.6
1990
1991
1992
1993
2,410.4
2,687.9
2,998.6
3,247.2
440.3
477.3
535.2
592.1
18.3
17.8
17.8
18.2
221.0
277.6
310.7
247.3
45.4
37.0
57.9
56.9
n.a.
13.3
18.6
23.0
202.4
214.8
214.5
210.2
40.1
42.0
41.0
41.6
19.8
19.5
19.1
19.8
......................................................
......................................................
......................................................
......................................................
1 Estimated by Treasury Department These estimates exclude agency debt, the holdings of which are believed to be small. The data on foreign holdings are not re
corded by methods that are strictly comparable with the data on debt held by the public. Projections are not available.
2 Borrowing from the public is defined as equal to the change in debt held by the public from the beginning of the year to the end, except to the extent that the
amount of debt is changed by reclassification.
3 Estimated as interest on the public debt less “interest received by trust funds” (subfunction 901 less subfunctions 902 and 903). Does not include the comparatively
small amount of interest on Mjency debt or the offsets for other interest on public debt received by Government accounts.
4 Estimated by Bureau of Economic Analysis, Department of Commerce. These estimates include small amounts of interest from other sources, including the debt of
Government-sponsored enterprises, which are not part of the Federal Government
s Benchmark revisions reduced the estimated foreign holdings of Federal debt as of December 1978 and increased the estimated foreign holdings as of December 1984
and December 1989. As a result, the data on foreign holdings m different time periods are not strictly comparable, and the “borrowing" from foreign residents in 1979,
1985, and 1989 reflects the benchmark revision as well as the net purchases of Federal debt securities.
n.a - Not applicable due to negative numbers or benchmark revision.
194
ANALYTICAL PERSPECTIVES
official institutions owned 62 percent of the Federal
debt held by foreign residents; private investors owned
nearly all the rest. All the Federal debt held by foreign
residents is currently denominated in dollars.
Foreign holdings of Federal debt are about one-fifth
of the foreign-owned assets in the U.S., and foreign
purchases of Federal debt securities are normally only
a moderate part of the total capital inflow from abroad.
The foreign purchases of Federal debt securities do not
measure the full impact of the capital inflow from
abroad on the market for Federal debt securities. The
capital inflow supplies additional funds to the credit
market generally, which affect the market for Federal
debt. For example, the capital inflow includes deposits
in U.S. financial intermediaries that themselves buy
Federal debt.
Federally Assisted Borrowing
The effect of the Government on borrowing in the
credit market arises not only from its own borrowing
to finance Federal operations but also from its assist
ance to certain borrowing by the public. Federally as
sisted borrowing is of two principal types: Governmentguaranteed borrowing, which is another term for guar
anteed lending, and borrowing by Government-spon
sored enterprises (GSEs). The Federal Government also
exempts the interest on most State and local govern
ment debt from income tax.
Federal credit assistance is discussed in Chapter 10,
“Underwriting Federal Credit and Insurance.” Detailed
data are presented in tables at the end of that chapter.
Table 13-7 brings together the totals of Federal and
federally assisted borrowing and lending and shows the
trends since 1965 in terms of both dollar amounts and,
more significantly, as percentages of total credit market
borrowing or lending. The Federal and federally as
sisted lending is recorded at face value. It does not
take into account the degree of subsidy and does not
indicate the extent to which the credit assistance
changed the allocation of financial and real resources.
The Federal borrowing participation rate has trended
strongly upward since the 1960s. Much of the recent
increase has been due to higher GSE borrowing as well
as higher Federal deficits. The Federal lending partici
pation rate has been smaller and more stable over time
than the borrowing participation rate, because Federal
direct loans are much smaller than Federal borrowing.
TABLE 13-7. FEDERAL PARTICIPATION IN THE CREDIT MARKET
(Dollar amounts in billions)
Actual
1965
1970
Estimates
1975
1980
1985
1990
1991
1992
1993
1994
1995
Total net borrowing in credit market1 ................................................................
66.7
87.9
169.7
324.9
803.5
690.2
503.7
552.8
544.4
Federal borrowing from the public.....................................................................
Guaranteed borrowing........................................................................................
Government-sponsored enterprise borrowing2 ..................................................
3.9
5.0
1.2
3.5
7.8
4.9
51.0
8.6
5.3
69.5
31.6
21.4
199.4
21.6
57.9
221.0
40.7
115.4
277.6
22.1
124.6
310.7
19.73
150.8
247.3
-2.0
170.2
225.2
88.3
153.9
173.7
87.5
133.4
Total, Federal and federally assisted borrowing.......................................
Federal borrowing participation rate (percent).............................................
10.1
15.1
16.2
18.4
65.0
38.3
122.5
37.7
278.9
34.7
377.1
54.6
424.3
84.2
481.2
87.0
415.5
76.3
467.4
394.6
Total net lending in credit market1 ...................................................................
66.7
87.9
169.7
324.9
803.5
690.2
503.7
552.8
544.4
Direct loans ........................................................................................................
Guaranteed loans...............................................................................................
Government-sponsored enterprise loans2 .........................................................
2.0
5.0
1.4
3.0
7.8
5.2
12.7
8.6
5.5
24.2
31.6
24.1
28.0
21.6
60.7
2.8
40.7
90.0
-7.5
22.1
90.7
7.0
19.73
145.2
-1.7
-2.0
163.2
-0.2
88.3
147.7
7.5
87.5
125.1
Total, Federal and federally assisted lending ...........................................
Federal lending participation rate (percent)..................................................
8.3
12.4
15.9
18.1
26.9
15.9
79.9
24.6
110.3
13.7
133.5
19.3
105.3
20.9
171.9
31.1
159.5
29.3
235.8
220.1
1 Total net borrowing (or lending) in credit market by domestic nonfinandal sectors excluding equities. Financial sectors are omitted to avoid double counting, since financial intermediaries both borrow and lend in the credit mar
ket Source: Federal Reserve Board flow of funds accounts. Projections are not available.
2 Most Government-sponsored enterprises (GSEs) are financial intermediaries. GSE borrowing (lending) is nevertheless compared with total credit market borrowing (lending) because GSE borrowing (lending) is a proxy for the
borrowing (lending) by nonfinandal sectors that is intermediated by GSEs. It assists the ultimate nonfinandal borrower (lender) whose loans are purchased or otherwise financed by GSEs. In order to avoid double counting, GSE
borrowing and lending are calculated net of transactions with Federal agencies, transactions between GSEs, and transactions in guaranteed loans.
AAA3Revised from the 1994 Budget
BUDGET ENFORCEMENT ACT
PREVIEW REPORT
14. PREVIEW REPORT
The Budget Enforcement Act of 1990 (BEA) contains
procedures designed to enforce the deficit reduction
agreement of the Omnibus Budget Reconciliation Act
of 1990. The BEA divides the budget into two mutually
exclusive categories; 1) discretionary programs, and 2)
direct spending and receipts. For 1991 through 1995,
the BEA limits discretionary spending and establishes
a “pay-as-you-go” requirement that legislation changing
direct spending and receipts must, in total, be at least
deficit neutral. These provisions were extended through
1998 by the Omnibus Budget Reconciliation Act of 1993
(OBRA 1993), which became law on August 10, 1993.
This Preview Report discusses the status of discre
tionary, pay-as-you-go, and deficit sequestration based
on current law as of December 31, 1993. In addition,
it explains the differences between the OMB and CBO
estimates of the discretionary caps and the maximum
deficit amount.
The OMB estimates use the economic and technical
assumptions underlying the President's budget submis
sion, as required by the BEA. The OMB Update Report
that will be issued in August, and the Final Report
that will be issued after the end of the Congressional
session, must also use these economic and technical
assumptions. Estimates in the Update Report and the
Final Report will only be revised to reflect laws enacted
since the Preview Report.
Discretionary Sequestration Report
Discretionary programs are, in general, those that
have their program levels established annually through
the appropriations process. The scorekeeping guidelines
accompanying the BEA identify accounts with discre
tionary resources. The BEA, as amended, limits budget
authority and outlays available for discretionary pro
grams each year through 1998. Appropriations that
cause either the budget authority or outlay limits to
be exceeded will trigger a sequester to eliminate any
such breach.
Adjustments to the limits.—The BEA permits certain
adjustments to the discretionary limits—also known as
caps. On December 10, 1993, the Office of Management
and Budget submitted the Final Sequestration Report
required by the BEA. This report described adjustments
permitted by the BEA as of the time the report was
issued. The caps resulting from these adjustments are
the starting points for this Preview Report. Included
in this report are cap adjustments for differences be
tween actual and projected inflation, reestimates of sub
sidy amounts under credit reform, and changes in con
cepts and definitions. Table 14-1, Summary of Changes
to Discretionary Spending Limits, is a summary of all
changes to the 1991 through 1995 caps originally en
acted in the BEA. Table 14-2, Discretionary Spending
Limits, shows the impact on the caps of adjustments
being made in this Preview Report.
TABLE 14-1. SUMMARY OF CHANGES TO DISCRETIONARY SPENDING LIMITS, 1991-1995
(In billions of dollars)
1991
TOTAL DISCRETIONARY
Statutory Caps as Set in OBRA 1990 ............................................................................................................
Adjustments for Allowances.............................................................................................................................
Adjustments for IRS Funding, IMF, and Debt Forgiveness.............................................................................
Adjustments for Changes in Inflation...............................................................................................................
Adjustments for Redefinition of Concepts (credit reform, etc.), and credit reestimates..................................
Adjustments for Emergency Requirements1 .....................................................................................................
Subtotal, Adjustments Excluding Desert Shield/Desert Storm................................................................
Adjustments for Desert Shield/Desert Storm...................................................................................................
Preview Report Discretionary Spending Limits................................................................................................
1992
BA
OL
BA
OL
BA
OL
BA
OL
BA
OL
BA
OL
491.7
514.4
1993
1994
1995
517.7
540.8
0.9
1.1
503.4
524.9
3.6
3.1
0.2
0.3
-0.5
-0.3
7.7
1.1
8.3
1.8
511.5
534.0
2.9
2.7
12.5
0.3
-5.1
-2.5
8.7
2.9
4.6
5.4
510.8
534.8
2.9
3.4
0.2
0.4
-9.5
-5.8
8.6
2.8
0.4
4.3
BA
OL
BA
OL
1.1
3.9
44.2
33.3
19.3
5.9
14.0
14.9
23.6
8.8
0.6
7.5
2.6
5.1
*
2.8
-2.5
-2.2
*
BA
OL
537.1
551.6
536.6
545.7
535.7
550.3
513.4
542.7
515.2
539.6
2.6
0.2
0.3
1.3
0.2
-11.8
-8.8
9.3
3.4
1.6
1.0
‘ Less than $50 million.
11ncludes adjustments in 1993 and 1994 for the release of contingent emergency appropriations.
197
198
The discretionary caps enacted in the BEA reflect
assumptions about inflation, as measured by the gross
national product implicit price deflator. These assump
tions are presented in the law for 1990 through 1993.
The BEA requires an inflation adjustment if the actual
rate of inflation for a year is different from the rate
identified in the law for that year. Because the actual
rate of inflation for 1993 was 2.7 percent, or 0.6 per
centage points less than the 3.3 percent assumed in
the BEA, a downward adjustment has been made to
the discretionary caps for 1995.
Certain changes to the caps affect specific accounts.
An adjustment previously was made to the caps for
accounting changes made by the Federal Credit Reform
Act of 1990. Table 14-2 shows reestimates of these
changes that result from better information on subsidy
levels in credit programs.
Several cap adjustments represent changes in con
cepts and definitions resulting from legislative action
that reclassified certain programs. These actions shifted
programs between the mandatory (i.e., direct spending)
category and the discretionary category. For instance,
several 1994 appropriations bills included provisions
that modified normally mandatory programs. Since
funding controlled by appropriations action is consid
ered discretionary, the effects of these provisions are
recorded as adjustments to the caps. In other cases,
authorizing legislation affecting spending in discre
tionary accounts was scored with pay-as-you-go savings;
downward cap adjustments are made to these accounts
to reflect the reduced discretionary spending that will
result.
Other adjustments to the limits.—The BEA identifies
other adjustments to the discretionary caps that can
be made only after legislation has been enacted. For
example, an adjustment may be made if 1995 appro
priations fund the Internal Revenue Service compliance
initiative above the CBO baseline levels estimated in
June 1990. The BEA specifies the amounts of these
adjustments. The BEA also provides special allowances
for budget authority and outlays. Two separate budget
authority allowances may be provided for 1994 and
1995, together with an adjustment for outlays associ
ated with one of the allowances, calculated using
spendout rates contained in the BEA. For 1994 through
1998, the BEA also provides for an additional budget
authority allowance equal to 0.1 percent of the adjusted
limit on total discretionary budget authority for the
budget year. Another adjustment is the special outlay
allowance. The dollar amounts of the special outlay al
lowance for 1991 through 1995 are specified in the
BEA. The annual allowances for 1994 and 1995 are
$6.5 billion. The outlay allowances through 1995 are
reduced by the outlays associated with the budget au
thority allowances. For 1996 through 1998, the outlay
allowances are equal to 0.5 percent of the adjusted dis
cretionary outlay limit.
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
ANALYTICAL PERSPECTIVES
until appropriations have been enacted. Table 14-2
shows the end-of-session adjustments that would result
if the President’s legislative program is enacted. The
President’s request includes funding in 1995 for the
IRS compliance initiative.
Consistent with the BEA, the President’s request as
sumes an increase in budget authority and outlays
based on the special allowance formulas. The adjust
ment to total discretionary in 1995 would increase
budget authority by $2.9 billion and outlays by $1.4
billion. In addition, about $1.3 billion of the outlay al
lowance has been used by the special budget authority
allowances calculated for 1992, 1993, and 1994. The
remaining outlay allowance available in 1995 would be
$3.8 billion.
Table 14-2 also shows two additional adjustments.
The first is an adjustment for proposals in the Presi
dent’s budget that would increase certain governmental
receipts through appropriations language. Changes to
governmental receipts provided in appropriations bills
are scored as discretionary by OMB based on the scor
ing convention that any action by the Appropriations
Committees is discretionary. Under accepted budget
concepts, however, governmental receipts do not offset
budget authority or outlays, although they offset the
deficit. This means that governmental receipt changes
cannot be included for the purpose of presenting the
President’s request for discretionary budget authority
and outlays. The adjustment shows the credit under
the discretionary caps that will be scored to appropria
tions bills that include the proposals. The caps will
actually be adjusted in next year’s Preview Report only
to the extent enacted appropriations result in perma
nent changes to the level of receipts.
The second adjustment reflects estimates of the Ad
ministration’s proposal to charge agencies for the prop
er costs of employee retirement. This proposal is dis
cussed more fully in Chapter 3A. Enactment of the
proposal would substantially increase discretionary pay
ments to the government’s retirement funds, particu
larly the Civil Service Retirement and Disability Fund.
A cap adjustment would need to be made after enact
ment to accommodate this change in accounting be
tween government accounts.
The President’s budget proposals for discretionary
programs are below the adjusted caps, as currently esti
mated, for 1995 through 1998. Table 14-3 displays the
President’s proposals relative to the spending limits,
including the adjustment for increased governmental
receipts. The budget estimates do not include the
spending related to the proper accounting for retire
ment costs proposal, so the cap adjustment for that
proposal is not included in the table.
Sequester determinations.—Five days after enactment
of an appropriations act, OMB must submit a report
to Congress estimating the budget authority and out
lays 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
199
14. PREVIEW REPORT
TABLE 14-2.
DISCRETIONARY SPENDING LIMITS, 1994-1998
(In m
illions of dollars)
Total discretionary spending limits, December 10,1993 Final Sequester Report................................
Adjustments:
1993 Inflation......................................................................................................................................
Reestimates of credit reform subsidies..............................................................................................
Statutory and other shifts between categories ..................................................................................
Emergency appropriations (release of contingencies).......................................................................
Reestimates of emergency flood spending........................................................................................
Subtotal, adjustments for the Preview Report...............................................................................
Preview Report discretionary limits........................................................................................................
Further adjustments authorized under the Budget Enforcement Act:
IRS funding.........................................................................................................................................
Special allowances.............................................................................................................................
Proposed emergency supplemental appropriations...........................................................................
Estimated discretionary spending limits including IRS, special allowances, and emergencies.............
Further adjustments to reflect enactment of the President’s program:
Adjustment to reflect discretionary credit for appropriations language proposals to increase certain
fees charged by the government...................................................................................................
Discretionary spending limits including adjustment for fees..................................................................
Estimated adjustment to reflect change in budget accounting for Federal retirement......................
Discretionary spending limits including adjustment for change in budget accounting for Federal retire
ment ...................................................................................................................................................
BA
OL
513,177
542,606
517,398
540,498
528,079
547,502
530,639
547,875
-110
58
38
-569
-638
59
44
-583
-844
61
50
-608
-871
75
5
1
180
BA
OL
BA
OL
BA
OL
BA
OL
BA
OL
519,142
547,733
176
-2,023
-849
57
16
-254
186
102
1
BA
OL
186
102
2,220
-862
-511
-415
-524
-623
-547
-820
BA
OL
513,363
542,708
515,178
539,636
518,631
547,318
527,555
546,879
530,092
547,055
188
184
2,880
1,438
753
BA
OL
BA
OL
BA
OL
1,942
1,124
BA
OL
-
515,305
543,832
134
"642”
30
17
518,246
541,900
518,631
548,167
527,555
547,305
530,092
547,206
473
473
452
452
455
455
461
461
BA
OL
BA
OL
BA
OL
515,305
543,832
518,719
542,373
5,951
5,941
519,083
548,619
5,957
5,956
528,010
547,760
5,968
5,966
530,553
547,667
5,961
5,959
BA
OL
515,305
543,832
524,670
548,314
525,040
554,575
533,978
553,726
536,514
553,626
TABLE 14-3. BUDGET PROPOSALS
(in millions of dollars)
1995
President’s discretionary proposals.............................................................
Estimated discretionary limits......................................................................
President’s discretionary proposals below (-) the discretionary caps.........
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 given fiscal year
occurs when the final sequestration report is issued
after Congress adjourns to end a session—near the be
BA
OL
BA
OL
BA
OL
1996
1997
1998
512,250
542,363
518,719
542,373
-6,469
-10
517,682
546,085
519,083
548,619
-1,401
-2,534
520,331
547,759
528,010
547,760
-7,679
-1
525,967
544,449
530,553
547,667
-4,586
-3,218
ginning of the fiscal year. The monitoring process be
gins again after Congress reconvenes for a new session.
Appropriations for the fiscal year in progress that cause
a breach in the caps would, if enacted before July 1st,
trigger a sequester. When such a breach is estimated,
a “within-session” sequestration report and Presidential
sequestration order are issued. For a breach that re
sults from appropriations enacted on or after July 1st,
reductions necessary to eliminate the breach are not
applied to the budgetary resources available in the cur
rent year. Instead, the corresponding caps for the fol
200
ANALYTICAL PERSPECTIVES
lowing 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 1994
is possible only if additional appropriations for 1994
are enacted. OMB reported in the Final Sequestration
Report to the President and the Congress that enacted
discretionary appropriations for 1994 were within the
prescribed spending limits.
Sequester calculations.—If either the discretionary
budget authority or outlay caps are exceeded, an acrossthe-board reduction of sequestrable budgetary resources
would be required to eliminate the breach. The percent
age reduction for certain special-rule programs would
be limited to 2 percent. Once this limit is reached,
the uniform percentage reduction for all other discre
tionary sequestrable resources would be increased to
a level sufficient to achieve the required reduction.
If both the budget authority and outlay caps are ex
ceeded, a sequester would first be calculated to elimi
nate the budget authority breach. If estimated outlays
still remained above the cap, even after applying the
available outlay allowance, further reductions in budg
etary 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 expla
nation of differences between OMB and CBO estimates
for the discretionary spending limits. Table 14-4 com
pares OMB and CBO limits for 1994 through 1998.
Differences in 1994 are due primarily to the release
of a contingent emergency appropriation for the Small
Business Administration on January 19, 1994. This re
lease occurred too late for inclusion in CBO’s Preview
Report.
Differences in 1995 are due primarily to CBO assum
ing lower credit subsidy costs than does OMB. As a
result, CBO lowers the discretionary limits for
reestimates of credit subsidy costs, while OMB raises
the limits.
OMB and CBO have different interpretations of the
BEA provision that requires an adjustment for dif
ferences between actual and estimated inflation. Since
the limits for 1996 through 1998 were enacted in OBRA
1993, OMB interprets the inflation assumptions en
acted in the original BEA of 1990 as not applying to
those years. CBO reduces the limits in each year by
the inflation adjustment.
Pay-As-You-Go Sequestration Report
This section of the Preview Report discusses the en
forcement procedures that apply to the remainder of
the budget—direct spending and receipts. The BEA de
fines direct spending as budget authority provided by
law other than appropriations acts, entitlement author
ity, and the food stamp program. Social security and
the Postal Service are not subject to pay-as-you-go en
forcement. Legislation specifically designated as an
emergency requirement and legislation fully funding
the Government’s commitment to protect insured depos
its are also exempt from pay-as-you-go enforcement.
TABLE 14-4. COMPARISON OF OMB AND CBO DISCRETIONARY SPENDING LIMITS
(In millions of dollars)
1994
1996
1997
1998
513,268
542,672
515,010
539,539
516,734
546,127
525,608
545,544
528,102
545,653
513,363
542,708
515,178
539,636
518,631
547,318
527,555
546,879
530,092
547,055
-95
-36
CBO Preview Report limits:
B A .....................................................................
O L .....................................................................
OMB Preview Report limits:
B A .....................................................................
O L .....................................................................
Difference:
B A .....................................................................
O L .....................................................................
1995
-168
-97
-1,897
-1,191
-1,947
-1,335
-1,990
-1,402
TABLE 14-5. PAY-AS-YOU-GO LEGISLATION ENACTED AS OF DECEMBER 31,1993
(In millions of dollars)
Change in the Baseline deficit
1994
1995
Revenue impact of enacted legislation.......................................
Outlay impact of enacted legislation...........................................
-1,265
1,270
-1,194
225
221
-671
166
-635
-629
-485
Total impact of enacted legislation.....................................
4
-969
-450
-469
-1,114
MEMORANDUM
Deficit impact of OBRA 1993:1
Revenue impact......................................................................
Outlay impact..........................................................................
-27,419
-19,333
-46,948
-35,765
-54,333
-46,221
-62,836
-66,062
-58,559
-87,287
Total impact of OBRA 1993—Public Law 103-66 ..............
-46,752
-82,713
-100,554
-128,898
-145,846
’ OBRA 1993 specified that none of its savings should be included in the totals of the pay-as-you-go scorecard.
1996
1997
1998
201
14. PREVIEW REPORT
Current law requires that direct spending and re
ceipts legislation should not increase the deficit in any
year through 1998. 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.
Net savings enacted for one fiscal year can be used
to offset net increases in the subsequent year. The im
pact of proposed legislation affecting direct spending
and receipts is shown in the table entitled “Mandatory
and Receipts PAYGO Proposals” in the Summary Ta
bles section of the Budget.
Sequester determinations.—Within five days after en
actment of direct spending or receipts legislation, OMB
is required to submit a report to Congress estimating
the change in outlays or receipts for each fiscal year
through 1998 resulting from that legislation. The esti
mates must use the economic and technical assump
tions 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, begin
ning with the 102nd Congress, the deficit impact of
enacted direct spending and receipts legislation and re
quired pay-as-you-go sequesters. The pay-as-you-go Pre
view Report is intended to show how these past actions
affect the upcoming fiscal year.
As of December 31, 1993, OMB had issued 201 re
ports on legislation affecting direct spending and re
ceipts. Most of these (83 percent) either had no effect
on the deficit or changed it by less than $10 million
in each year. Less than ten percent of the pay-as-yougo legislation had a deficit impact greater than $50
million in any one year.
Table 14-5 shows OMB estimates for legislation en
acted through December 31, 1993. In total, pay-as-yougo legislation has reduced the combined 1994 and 1995
deficits by $1.0 billion. This balance of pay-as-you-go
savings can be used to offset legislation that increases
direct spending or reduces receipts in 1994 and 1995.
Legislation that increases the combined 1994 and 1995
deficits by a greater amount will cause a sequester.
The Omnibus Budget Reconciliation Act of 1993
(OBRA 1993) produced savings of $46.8 billion in 1994
and over $500 billion over 1994-98. However, the Act
specified that none of the resulting savings should be
included in the pay-as-you-go scorecard.
Deficit Sequestration Report
The BEA specifies maximum deficit amounts for 1991
through 1995 that reflect the on-budget current law
levels for direct spending and receipts, and the spend
ing limits for discretionary programs.
These deficit amounts reflect the economic and tech
nical assumptions as of the time the BEA was enacted.
For the 1992 and 1993 budgets, the BEA required OMB
to adjust the maximum deficit amounts to reflect upto-date economic and technical assumptions for each
year through 1995. The BEA gives the President the
option of adjusting the maximum deficit amounts to
reflect current economic conditions and technical as
sumptions in 1994 and 1995. Since the President chose
to make this adjustment in 1994, the BEA provides
him with the same opportunity in 1995. This adjust
ment has been made for 1995, resulting in a maximum
deficit amount of $239.2 billion, $48.0 billion below the
unadjusted maximum deficit. This reduction is largely
due to higher receipts, and lower expected outlays for
Medicare, Medicaid, and deposit insurance in FY 1995.
Table 14-6 shows for 1995 the current maximum def
icit amount and the current estimated deficit calculated
using BEA rules. The current estimated deficit is below
the maximum deficit amount by the amount of payas-you-go savings enacted and the associated debt serv
ice. Therefore, no sequestration is projected at this
time. The table also shows adjustments to reach the
end-of-session maximum deficit amount.
In its Preview Report, CBO estimates a maximum
deficit amount for 1995 of $244.1 billion, $5.0 billion
above the OMB estimate. Compared to previous years,
this difference is relatively minor. The major differences
between OMB and CBO are shown in Table 14-7.
TABLE 14-6. MAXIMUM DEFICIT AMOUNTS
(In billions of dollars)
1995
Maximum deficit amount before adjustments...........................................
Change in deposit insurance....................................................................
Other adjustments for up-to-date economic and technical assumptions ...
287.2
-10.4
-37.5
Current maximum deficit amount.............................................................
Current estimated deficit...........................................................................
239.2
238.2
Excess deficit............................................................................................
-1.0
MEMORANDUM
Current maximum deficit amount..............................................................
End-of-session cap adjustment1 ...........................................................
Related debt service ............................................................................
239.2
2.3
0.1
Subtotal.................................................................................................
End-of-session maximum deficit amount..................................................
2.4
241.5
1 Assumes
enactment of Presidential policy.
202
ANALYTICAL PERSPECTIVES
TABLE 14-7.
DIFFERENCES BETWEEN OMB AND CBO MAXIMUM
DEFICIT AMOUNTS
(In billions of dollars)
1995
OMB maximum deficit amount...................................................................................
Receipts (deficit impact).........................................................................................
Outlays:
Discretionary.................................... ..................................................................
Commodity Credit Corporation ..........................................................................
Deposit insurance...............................................................................................
Food stamps......................................................................................................
Medicaid ............................................................................................................
Medicare............................................................................................................
Supplemental Security Income..........................................................................
Veterans’ Benefits and Services........................................................................
Other mandatory ................................................................................................
On-budget interest..............................................................................................
239.2
7.3
Total, outlay differences ................................................................................
-2.3
-0.1
-1.9
0.1
-0.6
-0.2
2.1
-1.7
-1.4
0.2
1.1
Total, differences.......................................................................................
5.0
CBO maximum deficit amount....................................................................................
244.1
15. REVIEW OF DIRECT SPENDING AND RECEIPTS
In trodu ction
The Budget Enforcement Act of 1990 established
mechanisms to control total discretionary spending
through caps on spending and legislative changes to
mandatory programs and revenues through a pay-asyou-go requirement. It did not, however, control the
growth of mandatory spending resulting from economic
and technical factors. In August 1993, the President
established procedures to control this growth in manda
tory spending in Executive Order 12857. The Order
provided for targets on the level of mandatory spending,
excluding deposit insurance and net interest, for 1994
through 1997. The Order also listed actions that must
be taken if the targets were exceeded. These actions
may include specific revenue or direct spending changes
or reductions in the discretionary caps. The savings
to remove the excess in the prior, current, and budget
years can be achieved over the six year period covering
the current year through four years beyond the budget
year. The President also has the option to recommend
breaching the targets because of economic conditions
or other specific reasons.
As required by the Order, OMB issued an initial re
port to the Congress in September setting mandatory
targets for 1994 through 1997. The initial targets were
based on the economic and technical assumptions used
in preparing the congressional budget resolution for
1994. The levels are consistent with the policies in the
resolution as adjusted by final Congressional action on
the Omnibus Budget Reconciliation Act of 1993 (OBRA
1993). This chapter fulfills the Order's requirements
for an annual review of direct spending and receipts.
Adjustm ents to Targets
The Order requires adjustments to the mandatory
targets under certain circumstances; in particular, the
targets must be adjusted each year for increases in
the estimated numbers of beneficiaries of mandatory
programs, and for changes in receipts in legislation en
acted after OBRA 1993. Table 15-1 shows the targets
as revised for these circumstances. The target for 1994
is now $752.0 billion, $5.6 billion above the initial tar
get. Similarly, the target for 1995 is now $792.7 billion,
$7.9 billion above the initial target. The targets have
increased by $37.5 billion over the four year period
1994 through 1997.
Table 15-1 also shows the major differences in cur
rent law estimates between August, 1993 (when the
Executive Order became effective) and now. Most of
the differences are because of decreases in Medicare
and Medicaid outlays since the initial targets were cal
culated.
The Order requires an adjustment to the targets to
reflect increases in estimated beneficiaries. Table 15-2
shows the current estimates of beneficiaries for major
benefit payment programs as well as the estimates used
in the initial targets. For most of the major benefit
programs, the current OMB estimates are above the
estimates used in the initial targets. This is largely
the result of technical differences between resolution
TABLE 15-1. SUM ARY OF CHANGES TO M
M
ANDATORY TARGETS AND CURRENT LAW OUTLAYS
(In billions of dollars)
1994
1995
1996
1997
1994-97
Initial mandatory targets (Executive Order 12857).....................................................
Adjustments for:
Increase in beneficiaries.........................................................................................
Changes in receipts................................................................................................
Changes due to category shifts.............................................................................
746.4
784.7
823.7
887.7
5.7
-0.1
0.0
8.0
-0.1
-0.0
10.2
-0.2
-0.1
14.1
-0.1
-0.0
38.1
-0.5
-0.1
Total adjustments.......................................................................................................
Current mandatory targets..........................................................................................
5.6
752.0
7.9
792.7
10.0
833.7
14.0
901.7
37.5
Outlays under current law as of August 1993 ..........................................................
Adjustments for:.
Increase in beneficiaries.........................................................................................
Decreases in beneficiaries.....................................................................................
Cost of living adjustments......................................................................................
Other inflation ........................................................................................................
Other technicals.....................................................................................................
746.4
784.7
823.7
887.7
5.7
-7.6
-1.4
0.4
-8.9
8.0
^ .1
-1.0
1.3
-14.2
10.2
-2.1
1.1
2.4
-9.0
14.1
-2.1
4.0
4.6
-20.8
38.1
-15.9
2.7
8.7
-52.8
Total adjustments.......................................................................................................
Outlays under current law as of January 1994 .........................................................
Amount over (+) or under (-) the current target.......................................................
-11.8
734.6
-17.4
-10.0
774.7
-18.0
2.6
826.3
-7.4
-0.1
887.6
-14.1
-19.3
Changes to mandatory targets
Changes to outlays under current laws
-56.8
203
204
ANALYTICAL PERSPECTIVES
assumptions and current OMB assumptions. In each
case that beneficiaries have increased, an adjustment
to the targets are made that adjusts the initial estimate
for the program by the percentage change in the num
ber of beneficiaries. The largest adjustments are for
the supplementary security income, food stamps and
social security (disability insurance). In total, the tar
gets are increased by $38.1 billion for the four year
period because of changes in beneficiary estimates.
TABLE 15-2. BENEFICIARIES ESTIMATES FOR MAJOR BENEFIT PAYMENT PROGRAMS
(Annual average, in thousands)
1994
Family education loans:
Initial estimate........................................................................................................
Current estimate....................................................................................................
Direct loans:
Initial estimate........................................................................................................
Current estimate....................................................................................................
AFDC work programs:
Initial estimate........................................................................................................
Current estimate....................................................................................................
Foster care and adoption assistance:
Initial estimate........................................................................................................
Current estimate....................................................................................................
Medicaid:
Initial estimate........................................................................................................
Current estimate:
Aged/Blind/Disabled ...........................................................................................
Other..................................................................................................................
Total, current estimate............................................................................................
Medicare:
Hospital insurance:
Initial estimate ...................................................................................................
Current estimate.................................................................................................
Supplementary medical insurance:
Initial estimate ...................................................................................................
Current estimate.................................................................................................
Railroad retirement:
Initial estimate........................................................................................................
Current estimate....................................................................................................
Federal civil service retirement:
Initial estimate........................................................................................................
Current estimate.....................................................................................................
Military retirement:
Initial estimate........................................................................................................
Current estimate....................................................................................................
Unemployment insurance:
Initial estimate........................................................................................................
Current estimate....................................................................................................
Food stamps:
Initial estimate........................................................................................................
Current estimate....................................................................................................
Child nutrition:
Initial estimate........................................................................................................
Current estimate.....................................................................................................
Family support: maintenance assistance (AFDC)1:
Initial estimate........................................................................................................
Current estimate.....................................................................................................
Family support: emergency assistance:
Initial estimate........................................................................................................
Current estimate....................................................................................................
Family support: Child support:
Initial estimate.........................................................................................................
Current estimate.....................................................................................................
Supplemental security income:
Initial estimate.........................................................................................................
Current estimate:.
1995
1996
1997
6,270
5,528
5,394
4,413
3,898
3,271
3,695
3,100
161
137
1,566
1,283
3,189
2,679
3,694
3,102
664
637
708
667
721
663
727
652
339
337
362
359
384
377
404
394
35,600
36,500
37,500
38,500
9,619
24,959
10,345
25,634
11,064
26,376
11,779
27,179
34,578
35,979
37,440
38,958
35,800
36,148
36,400
36,821
37,000
37,446
37,500
38,001
34,900
35,010
35,500
35,651
36,000
36,244
36,500
36,760
817
825
796
805
774
783
751
761
2,267
2,258
2,297
2,289
2,327
2,319
2,365
2,347
1,720
1,775
1,750
1,798
1,770
1,821
1,790
1,843
10,000
8,770
9,000
8,810
9,000
8,900
9,000
8,840
25,800
27,394
25,000
27,314
24,600
27,161
24,600
27,004
35,800
36,169
36,700
37,067
37,400
37,938
38,100
38,828
5,210
5,055
5,250
5,146
5,330
5,252
5,410
5,363
NA
81
NA
82
NA
83
NA
84
NA
14,362
NA
15,151
NA
15,939
NA
16,727
5,579
5,896
6,190
6,450
205
15. REVIEW OF DIRECT SPENDING AND RECEIPTS
TABLE 15-2. BENEFICIARIES ESTIMATES FOR MAJOR BENEFIT PAYMENT PROGRAMS-Continued
(Annual average, in thousands)
1994
1995
1996
1997
Aged ..................................................................................................................
Blind/Disabled....................................................................................................
1,325
4,498
1,320
5,013
1,325
5,497
1,325
5,956
Total, current estimate............................................................................................
Earned income tax credit:
Initial estimate........................................................................................................
Current estimate....................................................................................................
Social Security (OASDI):
Old age and survivors insurance:
Initial estimate ...................................................................................................
Current estimate................................................................................................
Disability insurance:
Initial estimate ...................................................................................................
Current estimate.................................................................................................
Veterans compensation:
Initial estimate........................................................................................................
Current estimate....................................................................................................
Veterans pensions:
Initial estimate........................................................................................................
Current estimate....................................................................................................
Memorandum:
Medicaid with health care reform ..........................................................................
Medicare with health care reform:
Hospital insurance..............................................................................................
Supplementary medical insurance.....................................................................
5,823
6,333
6,822
7,281
16,000
15,313
17,000
15,764
17,000
16,296
17,000
16,474
37,029
37,074
37,425
37,459
37,795
37,821
38,137
38,166
5,279
5,335
5,547
5,685
5,796
6,028
6,039
6,359
2,487
2,523
2,487
2,530
2,490
2,531
2,495
2,527
832
834
778
782
729
737
683
699
34,578
35,980
35,714
33,518
36,148
35,010
36,821
35,651
37,446
35,916
38,001
36,318
1Average number of monthly cases.
NA = Not available.
An adjustment to the mandatory targets is also re reconciliation action or passage of emergency legisla
quired for any changes in receipts enacted after OBRA tion. Thus, there are no additional adjustments to the
1993. This allows for tradeoffs between receipt in targets required by the Order.
creases and outlay reductions. Since OBRA 1993, there
has been only one major piece of enacted legislation
Growth in Mandatory Programs
that affects receipts—the North American Free Trade
Table 15-3 shows outlays for mandatory and related
Agreement (NAFTA) Implementation Act. This and
programs for the years 1993 through 1999. Spending
other minor legislation have decreased receipts by $0.5
billion over the four year period covered by the targets. on mandatory programs including net interest is pro
As a result, the targets have also been reduced by jected to be $976.6 billion in 1995, $42.1 billion more
than the 1994 estimate. By 1999, spending for manda
the same amount.
The targets were adjusted for minor categorical tory programs including net interest is projected to
shifts. Since OBRA 1993, there has been no additional reach $1,283.5 billion.
TABLE 15-3. OUTLAYS FOR MANDATORY AND RELATED PROGRAMS UNDER CURRENT LAW
(in billions of dollars)
1993
Actual
Human resources programs:
Education, training, employment, and social services:
Family education loan...............................................................................................................
Direct loan .................................................................................................................................
Other ..........................................................................................................................................
Subtotal, education, training, employment, and social services....................................................
Health:
Medicaid.....................................................................................................................................
FEHB and other........................................................................................................................
Subtotal, health..............................................................................................................................
Medicare:
Hospital insurance.....................................................................................................................
Supplementary medical insurance.............................................................................................
1994
1995
1996
1997
1998
1999
2.2
0.0
11.6
2.3
0.2
9.2
1.8
0.5
11.3
1.4
0.8
8.7
1.1
1.1
10.2
1.0
1.2
10.7
1.0
1.5
11.2
13.8
11.7
13.6
10.9
12.3
13.0
13.7
75.8
4.0
87.2
5.3
96.4
4.8
108.2
5.0
121.5
5.9
136.3
6.6
152.2
6.6
79.8
91.1
100.5
112.8
126.2
141.8
158.1
90.5
52.6
101.8
56.8
111.1
64.4
122.2
71.9
134.0
80.0
146.5
89.2
160.3
99.7
206
ANALYTICAL PERSPECTIVES
TABLE 15-3. OUTLAYS FOR MANDATORY AND RELATED PROGRAMS UNDER CURRENT LAW-Continued
(in billions of dollars)
1993
Actual
1994
1995
1996
1997
1998
1999
Medicare premiums and collections..........................................................................................
-15.3
-17.4
-19.9
-20.4
-23.2
-23.2
-23.2
Subtotal, medicare.........................................................................................................................
Income security:
General retirement and disability:
Railroad retirement................................................................................................................
Other .....................................................................................................................................
127.8
141.0
155.4
174.2
192.7
211.8
234.7
3.9
-0.0
4.2
0.9
4.2
0.9
4.2
0.9
4.3
0.9
4.3
0.9
4.3
0.9
Subtotal, general retirement and disability................................................................................
Federal employee retirement and disability:.
Civilian employees retirement................................................................................................
Military retirement..................................................................................................................
Other......................................................................................................................................
3.9
4.7
4.9
5.0
5.0
5.1
5.2
35.1
25.7
-0.9
36.5
26.5
-0.4
38.0
27.2
-0.4
39.6
28.3
-0.3
41.8
29.6
-0.2
43.8
30.9
-0.1
45.9
33.1
-0.1
Subtotal, federal employees retirement and disability..............................................................
Unemployment compensation....................................................................................................
Food and nutrition assistance:.
Food stamps .........................................................................................................................
Child nutrition and special m ilk.............................................................................................
Other......................................................................................................................................
60.0
35.5
62.2
26.7
64.3
23.0
67.1
23.5
70.6
23.9
73.9
24.0
78.2
25.1
23.6
6.6
1.5
25.5
7.3
1.6
25.2
7.6
1.6
26.1
8.2
1.6
27.2
8.7
1.6
28.2
9.3
1.6
29.2
10.0
1.6
Subtotal, food and nutrition assistance.....................................................................................
Other income security:.
Supplemental security income...............................................................................................
Family support payments......................................................................................................
Earned income tax credit ......................................................................................................
Other......................................................................................................................................
31.7
34.4
34.4
35.8
37.5
39.1
40.7
21.1
15.6
8.8
-0.7
24.9
16.4
10.0
-0.9
26.2
16.9
15.8
-1.0
27.0
17.5
18.9
-1.1
29.4
18.2
21.5
-1.3
32.9
18.9
22.4
-1.5
36.5
19.7
23.2
-1.6
Subtotal, other income security.................................................................................................
44.8
50.4
57.8
62.3
67.7
72.7
77.8
Subtotal, income security..............................................................................................................
Social security................................................................................................................................
Veterans’ benefits and services:
Compensation............................................................................................................................
Pensions....................................................................................................................................
Other..........................................................................................................................................
175.8
302.0
178.5
317.6
184.6
334.6
193.7
353.7
204.6
369.6
214.7
389.7
226.9
411.0
13.4
3.5
2.4
15.0
3.7
2.1
14.5
3.3
2.0
13.8
3.1
1.8
15.4
3.3
1.9
15.9
3.3
2.0
16.3
3.7
2.0
Subtotal, veterans benefits and services.......................................................................................
19.3
20.6
20.1
19.0
20.9
21.4
23.0
Subtotal, human resources programs................................................................................................
718.5
760.4
808.8
864.4
926.4
992.4
1,067.3
Other programs included in the entitlement target:
Agriculture:
Farm price supports (CCC) ......................................................................................................
Other..........................................................................................................................................
16.0
0.1
12.1
0.4
9.1
-0.2
9.3
-0.6
9.7
-0.8
9.8
-0.6
9.8
-0.5
Subtotal, agriculture.......................................................................................................................
Undistributed offsetting receipts:
Employer share, employee retirement.......................................................................................
Rents and royalties on the outer continental shelf...................................................................
Spectrum sales..........................................................................................................................
16.2
12.5
8.9
8.8
8.9
9.2
9.3
-34.6
-2.8
0.0
-34.7
-2.7
-0.5
-35.5
-3.0
-4.3
-35.3
-2.7
-4.2
-36.0
-2.7
-1.6
-37.9
-2.8
-2.0
-39.3
-2.8
0.0
Subtotal, undistributed offsetting receipts......................................................................................
Other functions...............................................................................................................................
-37.4
-2.4
-37.9
-0.4
-42.8
-0.3
-42.2
-4.6
-40.3
-7.5
-42.6
-9.1
-42.1
-10.5
Subtotal, other programs included in the entitlement target.............................................................
-23.6
-25.9
-64.1
-38.0
-38.9
-42.5
-43.3
Subtotal, mandatory programs included in the entitlement target.....................................................
Deposit insurance...............................................................................................................................
694.9
-28.0
734.6
-3.3
774.7
-11.1
826.3
-11.3
887.6
-6.1
949.9
-4.9
1,023.9
-3.3
Net interest:
Interest on the public debt............................................................................................................
Interest received by trust funds .....................................................................................................
Other interest.................................................................................................................................
292.5
-55.5
-38.2
298.3
-56.8
-38.3
311.1
-57.2
-40.9
325.6
-57.6
-42.6
341.5
-58.5
-46.2
359.5
-59.4
-50.6
378.0
-59.8
-55.4
Subtotal net interest ......................................................................................................................
198.8
203.2
213.1
225.4
236.8
249.6
262.9
Total, outlays for mandatory and related programs..........................................................................
865.8
934.5
976.6
1,040.5
1,118.2
1,194.6
1,283.5
Spending on programs covered by the mandatory targets is projected to grow from $734.6 billion in 1994
to $1,023.9 in 1999, an annual average rate of 6.9 percent. In percentage terms, the areas of largest growth
207
15. REVIEW OF DIRECT SPENDING AND RECEIPTS
are the health entitlements. Approximately 55 percent
of the growth in programs covered by the mandatory
targets is in Medicaid and Medicare. For additional
information on the trends in mandatory spending, refer
to Chapter 17 “Current services estimates” in this vol
ume.
Growth in Receipts
Receipts are projected to be $1,341.6 billion in 1995,
$92.5 billion more than the 1994 estimate. By 1999,
receipts are projected to reach $1,629.2 billion. For ad
ditional information on the trends in receipts, refer to
Chapter 4 “Federal receipts” in this volume.
As shown in Table 15-4, receipts are higher than
the September 1993 Midsession estimates in each year,
by amounts ranging from $7.6 billion to $38.4 billion.
These increases are the net effect of revised economic
assumptions, technical estimating revisions, and legis
lative and regulatory changes. With the exception of
1994, revised economic assumptions increase receipts
in each year. For 1995 and 1996, increases in corpora
tion income taxes, attributable to increases in corporate
profits, more than offset the reductions in other sources
of receipts attributable to reductions in wages and sala
ries, interest rates, and imports. For 1997 and 1998,
the effects of higher corporate profits and wages and
salaries on income and payroll taxes more than offset
the reductions in other sources of receipts. Technical
revisions, primarily reflecting collection experience, up
dated tabulations from tax returns, and revisions in
historical economic data, increase receipts by an
additonal $5.4 billion to $10.3 billion in each year. Reg
ulatory and legislative changes since the September
1993 Midsession do not have a significant effect on
receipts.
Comparison of Mandatory Targets and Outlays
under Current Laws
As Table 15-1 shows, estimates of spending for pro
grams covered by the targets under current laws are
$17.4 billion below the target for 1994, and $18.0 billion
below the target for 1995. Over the four year period
covered by the targets, projections of current law spend
ing are $56.8 billion below the targets. Most of the
difference between the targets and current law esti
mates are because the targets increased relative to the
resolution levels as a result of upward revisions in ben
eficiary estimates.
Since current law spending is projected to be below
the targets, a special message to reduce direct spending
is not required.
Comparison of Mandatory Targets and
Presidential Proposals
Enactment of the proposals in the President’s budget
would change the levels of the targets and outlays
under current law. As shown in Table 15-5, enactment
of health reform would increase mandatory outlays by
$40.8 billion over the four years between 1994 and
1997. This spending would be more than offset by a
$53.1 billion increase in the targets for additional reve
nue that result from the President’s health care propos
als. The target enforcement procedure allows for this
type of tradeoff between revenue increases and manda
tory spending. After adjustments to the targets are
made to reflect the President’s policy initiatives, spend
ing under the President’s budget is $18.2 billion below
the target for 1994, and $28.4 billion below the target
for 1995. Over the four year period covered by the tar
get, projections of the President’s budget is $67.7 billion
below the targets.
TABLE 15-4. COMPARISON OF MIDSESSION TO 1995 BUDGET BASELINE RECEIPTS
(in billions of dollars)
Midsession estimates i .............................................
Revised economic assumptions:
Individual income taxes........................................
Corporation income taxes....................................
Social insurance taxes and contributions.............
Customs duties.....................................................
Other receipts.......................................................
Subtotal, economic assumptions......................
Technical revisions:
Individual income taxes .........................................
Corporation income taxes....................................
Social insurance taxes and contributions.............
Other receipts.......................................................
Subtotal technical revisions.............................
Enacted legislation....................................................
Administrative action2 ..............................................
Total changes.......................................................
1995 budget baseline estimates..............................
1 Estimates based on updated CBO economic assumptions.
2 Reflects the effect of regulations affecting hedging transactions.
1,241.5
1,329.5
1,402.9
1,457.6
1,512.6
-3.0
5.8
-3.2
-0.5
-3.7
8.8
-1.7
-2.3
8.1
-1.3
0.2
-0.7
-0.7
4.3
7.2
4.4
-2.4
-0.4
16.7
7.4
10.4
-3.0
0.2
0.8
1.6
2.0
13.0
31.7
4.7
4.6
0.4
-0.5
2.5
5.9
2.3
-0.3
2.0
1.2
6.5
2.0
-3.0
7.4
1.5
-0.5
9.2
10.3
-
0.1
-
-
0.6
0.2
0.1
0.1
5.4
1.2
0.1
7.6
1,249.1
12.1
1,341.6
7.6
1,410.4
22.0
1,479.6
38.4
1,551.0
-
-
1.1
0.1
-
-
1.8
6.1
2.2
-
0.6
-
0.6
-
0.1
5.6
-
0.2
9.0
1,629.2
208
ANALYTICAL PERSPECTIVES
TABLE 15-5. MANDATORY TARGETS ASSUMING ENACTMENT OF PRESIDENTIAL PROPOSALS
(in billions of dollars)
1994
1995
1996
1997
Current mandatory targets
Receipt adjustment to targets if the President’s proposals are enacted:
Health care reform ..................................................................................
Other administration proposals...............................................................
752.0
792.7
833.7
901.7
-0.1
0.0
11.6
0.2
16.8
-0.3
24.8
-0.4
53.1
-0.4
Total adjustments................................................................................
Targets adjusted for Presidential proposals ....................................................
-0.1
751.9
11.8
804.4
16.5
850.3
24.4
926.1
52.6
734.6
774.7
826.3
887.6
-0.2
-0.7
0.9
0.4
11.7
0.7
28.3
0.6
40.8
1.0
-0.9
733.7
-18.2
1.3
776.0
-28.4
12.4
838.8
-11.5
28.9
916.5
-9.6
41.7
1994-97
Mandatory targets
Proposed Outlays
Outlays under current law ...............................................................................
Presidential proposals:
Health care reform..................................................................................
Other.......................................................................................................
Proposed outlay totals.....................................................................................
Amount over (+) or under (-) the targets........................................................
-67.7
16. DEFICIT REDUCTION FUND
On August 4, 1993, the President issued Executive
Order 12858 to guarantee that the net deficit reduction
achieved by the Omnibus Budget Reconciliation Act
(OBRA) of 1993 is dedicated exclusively to reducing
the deficit. The order established the Deficit Reduction
Fund and requires that amounts equal to the spending
reductions and revenue increases resulting from OBRA
be credited to the Fund. The order also requires that
information about the fund, including statements of the
amounts in and Federal debt redeemed by the fund,
be included in the President’s budget. Table 16-1 pre
sents the amounts that will be credited to the fund,
adjusted to reflect final scoring of OBRA by OMB:
Each year, amounts are credited to the fund on a
daily basis equal to the net deficit reduction achieved
by OBRA. The order requires that the fund balances
be used exclusively to redeem maturing debt obligations
of the Treasury held by foreign governments. On Octo
ber 1, 1993, amounts began to be credited to the fund
and, during the year, these amounts were used for the
stated debt redemption purposes.
The status of the fund on December 31, 1993, was:
TABLE 16-2. STATUS OF THE DEFICIT REDUCTION FUND
(In millions of dollars)
Description
TABLE 16-1. REVENUE INCREASES AND SPENDING
REDUCTIONS CREDITED TO THE DEFICIT REDUCTION FUND
(In millons of dollars)
Fiscal Year
1994
1995
1996
1997
1998
.............................................................................
.............................................................................
.............................................................................
.............................................................................
.............................................................................
Annual amount
Cumulative
amount
46,752
82,713
100,554
128,898
145,846
Beginning balance...................................................................................
Deposits made between October 1,1993, and December 31,1993 .....
Redemptions of Treasury debt held by foreign governments between
October 1,1993, and December 31,1993 ........................................
Fund balance as of December 31,1993 ................................................
Amount
11.362
11.362
46,752
129,465
230,019
358,917
504,763
209
CURRENT SERVICES ESTIMATES
211
17. 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 en
acted. The baseline is not a prediction of the final out
come 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 par
ticular policy, and it does not constrain the 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 sev
eral reasons:
• It warns of future problems, either for Govern
ment 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 pro
posed 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 se
questration.
The following table shows current services estimates
of receipts, outlays, and deficits for 1993 through 1999.
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 out
lays 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 dis
cretionary funding is held constant in real terms at
the 1994 enacted level. Other assumptions about discre
tionary funding are plausible. For example, all discre
tionary funding could be set equal to the discretionary
cap levels established in the BEA through 1998 with
adjustment for inflation in 1999. Total discretionary
outlays and the deficit under this assumption are
shown as memorandum items on 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 (discre
tionary spending). Different estimating rules apply to
each category.
TABLE 17-1. CURRENT SERVICES ESTIMATES, 1993-1999
(In billions of dollars)
1993
actual
Estimates
1994
1995
1996
1997
1998
1999
Receipts..................................................................................................................
Outlays:
Discretionary:
Defense...........................................................................................................
Nondefense.....................................................................................................
1,153.5
1,249.1
1,341.6
1,410.4
1,479.6
1,551.0
1,629.2
292.4
250.5
279.7
269.4
273.0
276.0
278.0
286.8
285.4
297.7
294.3
306.8
303.8
317.3
Subtotal, discretionary........................................................................................
Mandatory:
Deposit insurance...........................................................................................
Other..............................................................................................................
542.5
549.1
548.9
564.8
583.1
601.1
621.1
-28.0
694.9
—
3.3
734.6
-11.1
774.7
-11.3
826.3
-6.1
887.6
-4.9
949.9
—
3.3
1,023.9
Subtotal, mandatory............................................................................................
Net interest..........................................................................................................
666.9
198.8
731.3
203.2
763.6
213.1
815.1
225.4
881.4
236.8
945.0
249.6
1,020.7
262.9
Total, outlays...........................................................................................................
1,408.2
1,483.6
1,525.6
1,605.3
1,701.3
1,795.6
1,904.7
Deficit ( - ) ................................................................................................................
On-budget...........................................................................................................
Off-budget...........................................................................................................
-254.7
-300.0
45.3
-234.5
-289.8
55.3
-183.9
-244.7
60.7
-194.9
-263.2
68.4
-221.7
-300.3
78.7
-244.6
-331.7
87.1
-275.4
-370.1
94.7
MEMORANDUM
With discretionary spending at BEA caps:
Discretionary...................................................................................................
Deficit ( - ) ........................................................................................................
543.0
-254.7
550.3
-235.7
542.4
-177.3
548.6
-178.0
547.8
-184.3
547.7
-186.8
564.6
-211.5
213
214
ANALYTICAL PERSPECTIVES
Direct spending and receipts.—Direct spending in
cludes the major entitlement programs, such as social
security, medicare, medicaid, Federal employee retire
ment, unemployment compensation, food stamps and
other means-tested entitlements. It also includes such
programs as deposit insurance and farm price and in
come supports, where the Government is legally obli
gated under certain conditions to make payments. Re
ceipts and direct spending are alike in that they involve
ongoing activities that generally operate under perma
nent authority (they do not require annual authoriza
tion), and the underlying statutes generally specify the
level of receipts or benefits that must be collected or
paid, and who must pay or who is eligible to receive
benefits.
The current services baseline assumes that receipts
and direct spending programs continue in the future
as specified by current law. That is in fact what will
occur without enactment of new legislation.
Provisions of law providing spending authority and
the authority to collect taxes or other receipts that ex
pire under current law are usually assumed to expire
as scheduled. However, the current services baseline
assumes extension of two types of authority that, in
fact, normally are extended in some form by Congress.
Expiring provisions affecting excise taxes dedicated to
a trust fund, such as airport and airway taxes, are
assumed to be extended at current rates. In addition,
direct spending programs that will expire under current
law are assumed to be extended if their 1994 outlays
exceed $50 million. The budgetary impact of anticipated
regulations and administrative actions that are permis
sible under current law are also reflected in the esti
mates.
Discretionary spending.—Discretionary programs dif
fer in one important aspect from direct spending pro
grams-Congress usually provides spending authority for
discretionary programs one year at a time. The spend
ing authority is normally provided in the form of an
nual appropriations. Absent appropriations of addi
tional 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.
The definition used here is that, for 1994, the current
services estimates for discretionary programs are equal
to the enacted 1994 appropriations. In subsequent
years, funding is equal to the 1994 level adjusted for
inflation.
Economic Assumptions
The current services estimates are based on the same
economic assumptions as the President’s budget. These
assumptions assume that the President’s budget pro
posals will be adopted.
The economy and the budget interact. Economic con
ditions significantly alter the estimates of tax receipts,
unemployment benefits, entitlement payments that are
automatically adjusted for changes in cost-of-living
(COLAs), income support programs for low-income indi
viduals, and interest on the Federal debt. In turn, Gov
ernment tax and spending policies influence prices, eco
nomic growth, consumption, savings, and investment.
Because of these interactions, it would be reasonable,
from an economic perspective, to assume different eco
nomic paths for the current services baseline and the
President’s budget. However, this would diminish the
value of current services estimates as a benchmark for
measuring proposed policy changes, because it would
then be difficult to separate the effects of proposed pol
icy changes from the effects of different economic as-
TABLE 17-2. SUMMARY 01: ECONOMIC ASSUMPTIONS
(Fiscal years; dollar amounts in billions)
1993
Gross Domestic Product (GDP):
Levels, dollar amounts in billions:
Current dollars.............................................................................................................
Constant (1987) dollars................................................................................................
Percent change, year over year:
Current dollars..............................................................................................................
Constant (1987) dollars................................................................................................
Inflation measures (percent change, year/year):
GDP deflator....................................................................................................................
Consumer Price Index (all urban)....................................................................................
Unemployment rate, civilian (percent)1 ...............................................................................
Interest rates (percent):
91-day Treasury bills........................................................................................................
10-year Treasury notes ....................................................................................................
MEMORANDUM
Related programmatic assumptions:
Automatic benefit increases (percent):
Social security and veterans pensions (January)........................................................
Federal employee retirement2 .....................................................................................
Food stamps (October) ................................................................................................
Insured unemployment rate..............................................................................................
1994
1995
1996
1997
1998
1999
6,294
5,096
6,641
5,245
7,022
5,397
7,419
5,542
7,842
5,689
8,285
5,836
8,750
5,984
6.0
3.2
5.5
2.9
5.7
2.9
5.7
2.7
5.7
2.7
5.7
2.6
5.6
2.5
2.7
3.0
7.0
2.5
2.8
6.6
2.8
3.1
6.2
2.9
3.3
5.9
3.0
3.3
5.8
3.0
3.4
5.5
3.0
3.4
5.5
3.0
6.2
3.3
5.8
3.7
5.8
4.0
5.8
4.3
5.8
4.4
5.8
4.4
5.8
2.6
2.6
1.2
2.7
2.6
2.6
2.7
2.7
3.0
3.0
3.1
2.5
3.2
3.2
3.3
2.4
3.3
3.3
3.4
2.3
3.3
3.3
3.4
2.2
3.4
3.4
3.4
2.2
1Corresponds to survey methodology used through December, 1993.
2April in 1994. For civilians, April in 1995 and 1996, January for 1997-99. For military, none in 1995, October for 1996-98, and January for 1999.
215
17. CURRENT SERVICES ESTIMATES
sumptions. By using the same economic assumptions
for current services and the President's budget, this
potential source of confusion is eliminated.
The health care reform proposals in the budget would
significantly affect the way the health care industry
works in the U.S. These effects would not affect the
macroeconomy to such an extent that the budget esti
mates (which assume enactment of health care reform
proposals) require a fundamentally different set of eco
nomic assumptions than the baseline estimates (which
assume no change in the health care system). Technical
consistency between baseline and policy projections for
the out-years, however, requires recognition of two eco
nomic effects. First, health care cost controls would re
duce the annual rate of inflation in the medical care
sector by about a percentage point. (This is assumed
to be offset outside the medical care sector so that
the overall rate of inflation for the macroeconomy is
unchanged.) Second, employer costs for contributions
for employee health insurance would be reduced, slight
ly changing the division of total compensation between
(taxable) wages and salaries and fringe benefits. Nei
ther of these factors becomes significant before 1997.
These minor exceptions aside, the common set of eco
nomic assumptions underlying both the budget and the
current service estimates are summarized in the Table
17-2. The economic outlook underlying these assump
tions is discussed in greater detail in the Economic
Projections section.
Major Programmatic Assumptions
A number of programmatic assumptions must be
made in order to calculate the baseline estimates. These
include assumptions about the number of beneficiaries
who will receive payments from the major benefit pro
grams and annual cost-of-living adjustments in the in
dexed programs. Assumptions on baseline caseload pro
jections for the major benefit programs are shown in
Chapter 15, Review of Direct Spending and Receipts.
Assumptions about various automatic cost-of-living-adjustments are shown in Table 17-2.
Many other important assumptions must be made
in order to calculate the baseline estimates. These in
clude assumptions about the timing and substance of
regulations that will be issued over the projection pe
riod, which programs that expire under current law
are extended and which are allowed to expire, the use
of administrative discretion provided under current law,
and other assumptions about the way programs oper
ate.
Table 17-3 lists many of these assumptions and their
impact on the baseline estimates. It is not intended
to be an exhaustive listing; the variety and complexity
of Government programs are too great to provide a
complete list. Instead, some of the more important as
sumptions are shown.
TABLE 17-3. OUTLAY IMPACT OF REGULATIONS, EXPIRING AUTHORIZATIONS, AND OTHER ASSUMPTIONS IN THE BASELINE
(In millions of dollars)
1994
1995
1996
1997
1998
1999
REGULATIONS
Grazing fees:
Fee increase beginning in 1995 and phased-in over three yearsto reach fair market value:.
Department of Agriculture .................................................................................................... ...........
Department of Interior......................................................................................................................
Subtotal, grazing fees...........................................................................................................................
Foster care:
Provide 75% enhanced Federal match for States child welfaretracking automated systems in
1994-96, 50% thereafter..................................................................................................................
Medicare hospital insurance (HI):
Regulations codifying OBRA93 ............................................................................................................
Changes to 1994 inpatient hospital payment system ..........................................................................
Nursing and allied health payments.....................................................................................................
Waiver of liability for certain HHA claims denials ................................................................................
Medicare supplementary medical insurance (SMI):
Regulations codifying OBRA93/OBRA90.............................................................................................
Revise Medical economic index (MEI).................................................................................................
Denial of payment for substandard quality care ..................................................................................
Diagnosis code changes on physician’s bills .......................................................................................
HI and SMI:
Limit payment to contracting HMOs/CMPs/HCPPs..............................................................................
MSP: multiemployer plan exceptions...................................................................................................
Application of interest charges to MSP recoveries..............................................................................
Medicaid:
Regulations codifying OBRA93/OBRA90.............................................................................................
Elimination of the cold bed test for home and community-basedwaivers............................................
Payment of Medicare cost-sharing for QMBs.......................................................................................
Protection of income and resources for community spouses ofinstitutionalized individuals.................
Targeted case management.................................................................................................................
Nursing home reform............................................................................................................................
Social Security’s disability insurance:
Improve determination accuracy and processing.................................................................................
-6
-12
-10
-15
-15
-17
-15
-14
-15
.-14
-18
-25
-32
-29
-29
56
124
184
111
94
70
-1,840
-1,353
-50
2
1
-2,172
-50
2
1
-3,002
-50
3
1
-3,187
-50
3
1
NA
-50
3
1
-742
-6,361
-7,984
-9,494
-11,400
-1
-12
-3,052
-25
-1
-12
-1
-12
-1
-12
-1
-12
-1
-12
1
-1
-15
1
-1
-17
1
-1
-19
1
-1
-21
1
-1
-23
1
-1
14
85
760
475
445
460
-712
110
895
520
520
500
-1,566
135
1,055
565
660
550
-2,003
160
1,250
615
805
600
-2,158
190
1,500
660
955
660
-2,325
225
1,725
715
1,130
715
-34
-73
-121
-163
-211
-211
216
ANALYTICAL PERSPECTIVES
TABLE 17-3. OUTLAY IMPACT OF REGULATIONS, EXPIRING AUTHORIZATIONS, AND OTHER ASSUMPTIONS IN THE BASELINE—
Continued
(In millions of dollars)
1994
Supplemental security income:
Improve determination accuracy and processing.................................................................................
Veterans compensation:
Adds multiple myeloma and respiratory cancers to the list ofpresumptive conditions related to expo
sure to certain herbicides(most notably Agent Orange)..................................................................
National Pollutant Discharge Eliminiation System:
EPA will collect fees to cover the costs of EPA issued water pollution permits.................................
Ethanol: require use of more ethanol (impact on com subsidy payments) .............................................
1995
1996
1997
1998
1999
-19
-43
-62
-81
-100
-100
25
55
65
80
95
110
-126
-10
-135
-10
-156
-10
-169
-10
-183
-10
-194
-9
5
1,143
1,143
1,143
59
21
370
405
440
470
48
55
205
60
420
180
230
67
530
200
EXPIRING AUTHORIZATIONS
Commodity credit corporation:
Extra-long staple cotton program (expires in baseline) .......................................................................
Child nutrition:
Miscellaneous provisions of Child Nutrition Act (expires in baseline)..................................................
Food stamps:
Nutrition assistance to Puerto Rico (baseline assumes extension beyond 1995 expiration)...............
Medicaid (included in baseline):
Home and community care for frail elderly..........................................................................................
Community supported living arrangements...........................................................................................
Family Support Act transition benefits.................................................................................................
Medicare, HI:
New authorization for regional payment floor.......................................................................................
Medicare dependent small rural hospitals............................................................................................
HHA cost limits .....................................................................................................................................
SNF cost limits......................................................................................................................................
Medicare, SMI:
25% part B premium ............................................................................................................................
Medicare, HI and SMI:
MSP for the disabled............................................................................................................................
MSP requirements for ESRD ...............................................................................................................
IRS/SSA/HCFA MSP data match.........................................................................................................
Medicare and medicaid demonstrations (included in baseline):
HI:
Case management...........................................................................................................................
Ventilators........................................................................................................................................
Heart bypass (CABG) ......................................................................................................................
Cataract............................................................................................................................................
Texas nursing facility case-mix........................................................................................................
Montana rural health (MAF)....................................................................................................... ......
Monroe County (NY) L TC ................................................................................................................
Home health prospective payment..................................................................................................
SMI:.
Alzheimer’s
.................................................................................................................................
Home dialysis ...................................................................................................................................
Municipal health:
Costs.............................................................................................................................................
Replacement benefits...................................................................................................................
United Mine Workers capitation (scheduled to end in 1994):
Costs.............................................................................................................................................
Replacement benefits...................................................................................................................
HI and SMI:
MIGs:
Costs.............................................................................................................................................
Replacement benefits...................................................................................................................
AAPCC (scheduled to end in 1995):
Costs.............................................................................................................................................
Replacement benefits...................................................................................................................
Multi-state nursing facility case m ix.................................................................................................
Community Nursing Organization ....................................................................................................
Medicaid:
Minnesota voucher...........................................................................................................................
Uninsured low-income......................................................................................................................
Arizona AHCCCS (scheduled to end in 1994):
Costs.............................................................................................................................................
Replacement benefits...................................................................................................................
Pregnant substance abusers ...........................................................................................................
Welfare reform..................................................................................................................................
Pregnant women and children expansion........................................................................................
9
52
18
335
90
1,143
255
75
570
220
1,360
1,125
60
140
16
9
72
4
1
1
11
5
72
4
54
3
230
1
1
274
13
1
2
1
55
50
62
57
70
64
79
72
20
18
166
166
235
235
483
483
507
507
533
533
559
559
125
125
150
150
175
175
175
175
200
200
200
200
759
759
220
20
1.072
1.072
450
30
1.137
1.137
550
30
550
10
152
12
168
12
185
6
1,006
1,006
6
41
9
1,107
1,107
5
49
2
1,217
1,217
2
57
1,339
1,339
1,473
1,473
1,620
1,620
67
6
6
1
1
319
197
217
17. CURRENT SERVICES ESTIMATES
TABLE 17-3. OUTLAY IMPACT OF REGULATIONS, EXPIRING AUTHORIZATIONS, AND OTHER ASSUMPTIONS IN THE BASELINE—
Continued
(In millions of dollars)
1994
Oregon (scheduled to end in 1999):
Costs............................................................................................................................................
Replacement benefits...................................................................................................................
Hawaii Health QUEST (scheduled to end in 1999):
Costs............................................................................................................................................
Replacement benefits...................................................................................................................
Delaware pediatric............................................................................................................................
TennCare (scheduled to end in 1999):
Costs............................................................................................................................................
Replacement benefits...................................................................................................................
Kentucky (scheduled to end in 1999):
Costs............................................................................................................................................
Replacement benefits...................................................................................................................
SC family planning ...........................................................................................................................
Rhode Island Rite care ....................................................................................................................
Maryland pediatric care....................................................................................................................
Demonstration proposals under review...........................................................................................
Medicare and medicaid:
SHMOs-Medicare(scheduled to end in 1998) ..................................................................................
SHMOs-Medicaid (scheduled to end in 1998) .................................................................................
Social HMO II—Medicare (scheduled to end in 1998)....................................................................
Social HMO tl—Medicaid (scheduled to end in 1998) ....................................................................
PACE—Medicare (scheduled to end in 1997) .................................................................................
PACE—Medicaid (scheduled to end in 1997)..................................................................................
On-Lok—Medicare............................................................................................................................
On-Lok—Medicaid ............................................................................................................................
Federal employee health benefits:
Modified “phantom Big 6” government premium contribution formula.................................................
1995
1996
1997
1998
1999
854
854
1,323
1,323
1,458
1,458
1,658
1,658
1,865
1,865
1,000
2,050
22
22
6
95
95
15
107
107
21
120
120
17
135
135
113
150
1,581
1,581
2,239
2,239
2,411
2,411
2,559
2,559
2,693
2,693
682
2,728
1,652
1,652
2
14
2
10
1,815
1,815
5
60
2
25
1,951
1,951
7
63
2
39
2,059
2,059
7
65
2
49
2,159
2,159
7
68
2
68
1,650
2,200
240
24
316
32
318
63
31
47
7
9
400
40
403
80
46
57
8
11
500
50
503
100
58
68
9
12
588
59
589
118
71
83
9
13
694
70
689
138
99
116
10
13
23
37
6
8
53
67
-144
OTHER IMPORTANT PROGRAM ASSUMPTIONS
Commodity credit corporation disaster payments:
Secretary of Agriculture’s use of discretionary authority to make a determiniation of economic loss
from damaging weather and provide mandatory disaster payments to farmers (this will reduce
farmer uncertainty and is consistent with apparent Congressional intent to provide such assist
ance) ................................................................................................................................................
Wetlands reserve program:
Enroll 300,000 new acres in 1995 bringing total to over 400,000; reach target of 975,000 acres by
the end of 1999 ................................................................................................................................
Timber sales:
Forest service:
Million board feet timber sale offer..................................................................................................
Million board feet harvest.................................................................................................................
Bureau of Land Management:
Million board feet timber sale offer................................................................ .................................
Million board feet harvest.................................................................................................................
Food stamps:
General overpayment recovery............................................................................................................
Overpayment recovery through tax refund offset.................................................................................
Quality control recoveries.....................................................................................................................
Net effect of matches above the normal program rate........................................................................
Aid to families with dependent children:
Overpayment recoveries.......................................................................................................................
Quality control recoveries.....................................................................................................................
Net effects of matches above the normal program rate......................................................................
Child support enforcement:
Collections of penalties from State audit failures.................................................................................
Foster care:
Repayments from States due to overpayments for benefits, training, and administrative costs and
due to lifting of moratoria placed on collection of past disallowances............................................
Federal Old Age Survivors and Disability lnsurance(OASDI)/supplemental security income (SSI)/ hos
pital insurance (HI):.
Expansion of tax refund offset program to debts previously written off (OASDI/SSI).........................
Performance of continuing disability reviews under current workload policy (OASDI/HI) ....................
Collections of overpayments:
OASI.................................................................................................................................................
D I......................................................................................................................................................
SSI ...................................................................................................................................................
1,000
1,000
1,000
1,000
1,000
1,000
17
97
215
141
103
103
4,635
5,565
4,381
5,000
4,566
4,559
4,566
4,508
4,566
4,525
4,566
4,536
30
134
240
164
240
240
240
240
240
240
240
240
-52
-52
-22
-52
-22
-52
-22
-149
-52
-22
-149
-52
-22
-107
-1
18
2
-72
-61
20
-73
-51
-74
-39
-74
-38
-74
-39
-74
-39
-8
-10
-10
-10
-10
-10
-260
-295
-186
-182
-192
-202
-50
-25
-50
-25
-100
-25
-150
-25
-200
-817
-156
-334
-852
-167
-379
-869
-180
-422
-926
-194
-465
-988
-209
-513
-783
-145
-290
218
ANALYTICAL PERSPECTIVES
TABLE 17-3. OUTLAY IMPACT OF REGULATIONS, EXPIRING AUTHORIZATIONS, AND OTHER ASSUMPTIONS IN THE BASELINE
Continued
(In millions of dollars)
1994
Debts written off:
OASI.................................................................................................................................................
D l......................................................................................................................................................
SSI ....................................................................................................................................................
Disability insurance:
Demonstration projects.....................................................................................................................
Interest payments to Treasury for advance tax transfers................................................................
Supplemental security income:
Payments from States for State supplemental benefits ..................................................................
Payments for States supplemental benefits.....................................................................................
Research and demonstration projects..............................................................................................
Monitoring of drug addicts and alcoholics........................................................................................
Report SSI entrance into nursing facilities.......................................................................................
Medicare:
Payment safeguard activities................................................................................................................
Extend time limit on MSP recoveries under certain circumstances.....................................................
HI and SMI and other collections (anticipated recoveries beyond payment safeguard activities).......
Medicaid:
Financial management recoveries based on audits.............................................................................
Administrative costs for Motor Voter....................................................................................................
HHS Inspector General:
Investigative and audit recoveries........................................................................................................
Railroad Retirement Board:
Improved debt collection.......................................................................................................................
Audit recoveries....................................................................................................................................
Financial interchange correction...........................................................................................................
Current Services Receipts, Outlays, and Budget
Authority
Receipts.—The table below shows baseline receipts by
major source. Total receipts are projected to increase
by $92.5 billion from 1994 to 1995 and by $287.6 billion
from 1995 to 1999, largely due to assumed increases
in incomes resulting from both real economic growth
and inflation and the legislated tax increases provided
in the Omnibus Budget Reconciliation Act of 1993
(OBRA93).
Individual income taxes are estimated to increase by
$47.2 billion from 1994 to 1995 under current law. This
growth of nine percent is primarily the effect of in
creased collections resulting from rising personal in
comes and the legislated increase in marginal tax rates
for high income taxpayers provided in OBRA93. Indi
1995
1996
1997
1998
79
97
156
82
103
180
85
111
204
89
120
227
4
1
1
18
1
-3,545
3,545
19
19
-3,215
3,215
7
36
-10
-2,900
2,900
5
36
-10
-6,006
-1
-100
-6,747
-1
-100
-310
25
1999
93
129
250
97
139
276
-3,085
3,085
5
36
-10
-3,020
3,020
5
36
-10
-2,950
2,950
5
36
-10
-7,171
-1
-100
-7,791
-1
-100
-8,465
-1
-100
-9,198
-1
-100
-341
26
-375
28
-413
30
-455
33
-500
36
-414
-414
-414
-414
-414
-414
-31
-1
-29
-46
-1
-4
-44
-1
-4
-43
-1
-4
-43
-1
-4
-43
-1
-4
vidual income taxes are projected to grow at an annual
rate of six percent between 1995 and 1999. These esti
mates reflect permanent extension of the limitations
on itemized deductions and personal exemptions, which
had been scheduled to expire on December 31, 1995
and December 31, 1996, respectively, under prior law.
Corporation income taxes under current law are esti
mated to grow by $10.3 billion or eight percent from
1994 to 1995, in large part due to higher corporate
profits. Corporation income taxes are projected to in
crease at an annual rate of three percent from 1995
to 1999. These estimates reflect expiration of the envi
ronmental tax on corporate taxable income, which is
deposited in the Hazardous Substance Response
Superfund and scheduled to expire after December 31,
1995. The estimates also reflect expiration of the re-
TABLE 17-4. BASELINE RECEIPTS BY SOURCE
(In billions of dollars)
1993
actual
Individual income taxes ..........................................................................................
Corporation income taxes.......................................................................................
Social insurance taxes and contributions................................................................
On*budget...........................................................................................................
Off-budget...........................................................................................................
Excise taxes............................................................................................................
On-budget...........................................................................................................
Off-budget)..........................................................................................................
Estimates
1994
1995
1996
1997
1998
1999
509.7
117.5
428.3
116.4
311.9
48.1
50.0
550.0
130.7
461.9
125.7
336.2
54.6
52.0
597.1
141.0
492.1
135.6
356.6
55.8
55.6
631.0
146.4
518.7
142.3
376.4
56.6
57.8
664.4
150.3
546.4
149.1
397.3
57.8
60.8
699.1
152.9
576.4
156.4
420.0
58.8
63.9
739.7
157.5
605.1
162.5
442.6
60.2
66.7
1,153.5
(841.6)
(311.9)
1,249.1
(913.0)
(336.2)
1,341.6
(985.1)
(356.6)
1,410.4
(1,034.1)
(376.4)
1,479.6
(1,082.3)
(397.3)
1,551.0
(1,131.1)
(420.0)
1,629.2
(1,186.6)
(442.6)
219
17. CURRENT SERVICES ESTIMATES
TABLE 17-5. CHANGE IN BASELINE OUTLAYS ESTIMATES BY CATEGORY
(Dollar amounts in billions)
Change 1994 to 1995
1994
1995
Amount
Discretionary:
Defense..........................................................................................................................
Nondefense........................... ........................................................................................
Change 1994 to 1999
1999
Percent
Amount
Annual
average rate
279.7
269.4
273.0
276.0
303.8
317.3
-6.8
6.6
-2
2
24.1
47.9
2
3
Subtotal, discretionary.........................................................................................................
Mandatory:
Deposit insurance..........................................................................................................
Medicaid.........................................................................................................................
Medicare.........................................................................................................................
Federal retirement ..........................................................................................................
Means tested entitlements .............................................................................................
Unemployment compensation ........................................................................................
Social Security...............................................................................................................
Undistributed offsetting receipts.....................................................................................
Other..............................................................................................................................
549.1
548.9
621.1
-0.2
_*
72.0
2
-3.3
87.2
141.0
81.8
91.6
26.7
317.6
-37.9
26.6
-11.1
96.4
155.4
83.5
97.7
23.0
334.6
-42.7
26.8
-3.3
152.2
234.7
99.1
124.8
25.1
411.0
-42.1
19.2
-7.8
9.2
14.5
1.7
6.1
-3.7
17.0
-4.9
0.2
235
11
10
2
7
-14
5
13
1
0.1
65.1
93.7
17.3
33.2
-1.7
93.4
-4.2
-7.3
12
11
4
6
-1
5
2
-6
Subtotal, mandatory...........................................................................................................
Net interest.........................................................................................................................
Total, outlays......................................................................................................................
731.3
203.2
1,483.6
763.6
213.1
1,525.6
1,020.7
262.9
1,904.7
32.3
9.8
41.9
4
5
3
289.4
59.6
421.0
7
5
5
_*
*Less than 0.5 percent
search and experimentation (R&E) tax credit and allo
cation rules after June 30, 1995 and July 31, 1995,
respectively.
Social insurance taxes and contributions are esti
mated to increase by $30.2 billion between 1994 and
1995, and by an additional $113.0 billion between 1995
and 1999. The estimates reflect assumed increases in
total wages and salaries paid, scheduled increases in
the social security taxable earnings base from $60,600
in 1994 to $72,300 in 1999, and the repeal of the medi
care taxable earnings base cap effective January 1,
1994. The estimates also reflect expiration of the tem
porary unemployment surtax of 0.2 percent imposed
on employers, which expires on December 31, 1998.
Excise taxes are estimated to increase by $1.2 billion
from 1994 to 1995, in large part due to increased eco
nomic activity. Excise taxes are estimated to increase
by $4.4 billion from 1995 to 1999. These estimates re
flect extension of the 2.5 cents per gallon tax on gaso
line and special motor fuels that had been scheduled
to expire on September 30, 1995 under prior law. Excise
taxes deposited in the Airport and Airway Trust Fund,
the Hazardous Substance Response Superfund, and
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 in
crease by $14.7 billion from 1994 to 1999.
Outlays.—Current services outlays are estimated to
be $1,483.6 billion in 1994 and $1,525.6 billion in 1995,
a three percent increase. Between 1995 and 1999, they
are projected to increase at an average annual rate
of five percent. Outlays for discretionary programs de
cline from $549.1 billion in 1994 to $548.9 billion in
1995, reflecting outyear effects of previously enacted
reductions for national defense programs. Outlays for
discretionary programs increase each year thereafter,
largely reflecting increases in resources to keep pace
with inflation, reaching $621.1 billion by 1999.
Entitlement and other mandatory programs grow
from $731.3 billion in 1994 to $763.6 billion in 1995,
and to $1,020.7 billion in 1999. Net receipts for deposit
insurance increase from $3.3 billion in 1994 to $11.1
billion in 1995, and then gradually decline to $3.3 bil
lion in 1999, reflecting completion of the cleanup of
failures and the return to a self-financing system. Other
mandatory programs grow from $734.6 billion in 1994
to $1,023.9 billion in 1999 due in large part to changes
in the number of beneficiaries and to automatic costof-living adjustments and other adjustments for infla
tion. Social security outlays grow from $317.6 billion
in 1994 to $411.0 billion in 1999, an average annual
rate of five percent. The health entitlements are pro
jected to grow at an annual average rate over 11 per
cent, far outpacing inflation. Other areas of growth in
clude means tested entitlements (annual average
growth rate of 6 percent) and Federal retirement pro
grams (annual average growth rate of 4 percent).
Net interest payments to the public also increase sub
stantially, from $203.2 billion in 1994 to $262.9 billion
in 1999, or an annual average rate of 5 percent. This
is mainly a result of the increased borrowing by the
Government that is estimated to occur over the period
and the assumed rise in short term interest rates from
the current historic low levels.
Tables 17-6 and 17-7 show current services outlays
by function and by agency, respectively. A more de
tailed presentation of outlays (by function, subfunction,
and program) appears at the end of this chapter.
Budget authority.—Tables 17-8 and 17-9 show cur
rent services estimates of budget authority by function
and by agency, respectively.
220
ANALYTICAL PERSPECTIVES
TABLE 17-6. CURRENT SERVICES OUTLAYS BY FUNCTION
(In billions of dollars)
Function
1993 actual
1994 estimate
1995 estimate
1996 estimate
1997 estimate
1998 estimate
1999 estimate
278.6
12.5
266.5
12.5
260.4
12.2
264.9
12.6
271.9
13.0
280.4
13.3
289.5
13.7
Total, national defense.....................................................................
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............................
Other undistributed offsetting receipts..................................................
291.1
16.8
17.0
4.3
20.2
20.4
-22.7
(-24.2)
(1.4)
35.0
9.1
50.0
99.4
130.6
207.3
304.6
(6.2)
(298.3)
35.7
15.0
13.0
198.8
(225.6)
(-26.8)
279.0
18.4
17.3
5.2
22.3
16.9
1.4
(-0.4)
(1.7)
37.6
9.3
50.8
112.3
143.8
214.6
320.5
(5.8)
(314.7)
38.1
16.5
14.4
203.2
(232.3)
(-29.1)
272.6
18.9
17.4
5.1
22.5
13.6
-5.4
(-8.7)
(3.3)
38.9
9.1
53.1
122.8
158.4
222.2
337.6
(6.6)
(331.0)
38.3
16.3
13.8
213.1
(244.7)
(-31.7)
277.5
18.5
18.6
5.1
23.3
13.5
-8.8
(-9.1)
(0.2)
41.0
8.7
51.9
135.9
177.4
232.5
356.9
(7.0)
(349.9)
38.1
17.4
14.7
225.4
(260.3)
(-34.9)
284.9
19.1
19.2
5.2
24.0
14.0
-5.6
(-5.0)
(-0.5)
42.6
8.8
54.4
150.8
196.1
245.5
373.0
(7.4)
(365.6)
40.6
17.8
14.6
236.8
(275.5)
(-38.8)
293.1
19.9
19.6
5.4
24.1
14.3
-5.4
(-4.3)
(-1.1)
44.0
8.7
56.3
167.3
215.3
257.3
393.3
(7.9)
(385.4)
41.9
18.3
14.7
249.6
(292.7)
(-43.2)
303.3
20.6
20.3
5.4
24.3
14.5
-4.7
(-3.2)
(-1.5)
45.2
9.0
58.4
184.5
238.3
271.8
414.7
(8.4)
(406.3)
44.4
19.0
15.2
262.9
(310.9)
(-48.0)
-28.2
-6.4
-2.8
-28.2
-6.5
-2.7
-0.5
-28.7
-6.8
-3.0
-4.3
-28.1
-7.2
-2.7
-4.2
-28.3
-7.6
-2.7
-1.6
-29.6
-8.3
-2.8
-2.0
-30.4
-8.9
-2.8
Total, Undistributed offsetting receipts.............................................
On-budget.....................................................................................
Off-budget.....................................................................................
-37.4
(-31.0)
(-6.4)
-37.9
(-31.4)
(-6.5)
-42.7
(-36.0)
(-6.8)
-42.2
(-35.0)
(-7.2)
-40.3
(-32.7)
(-7.6)
-42.6
(-34.4)
(-8.3)
-42.1
(-33.2)
(-8.9)
Total .................................................................................................
On-budget.....................................................................................
Off-budget.....................................................................................
1,408.2
(1,141.6)
(266.6)
1,483.6
(1,202.8)
(280.9)
1,525.6
(1,229.7)
(295.8)
1,605.3
(1,297.3)
(308.0)
1,701.3
(1,382.7)
(318.6)
1,795.6
(1,462.8)
(332.9)
1,904.7
(1,556.8)
(347.9)
National defense:
Department of Defense—Military..........................................................
Other.....................................................................................................
Change in Estimates Since the 1994 Budget.—The
baseline deficit for 1994 in the 1994 Budget (April 1993)
was $302 billion, $67 billion above the current estimate
of $235 billion. Since that time, the Congress completed
action on a deficit reduction package that achieved over
$500 billion in savings over 5 years. This package,
along with appropriations action and other policy
changes, reduced the 1994 deficit, on net, by $37 billion.
Of this reduction, about $31 billion was from receipts
and direct spending changes included in OBRA93. Ap
propriations action reduced discretionary spending by
about $7 billion below last year’s baseline level. Other
legislation, largely the emergency extension of extended
unemployment benefits, increased the 1994 deficit, on
net, by $3 billion. Remaining savings, roughly $2 bil
lion, were from related reductions in debt service costs
and other policy changes. Changes in economic assump
tions and technical factors reduced the projected 1994
deficit by an additional $30 billion.
Current Services Outlays and Budget Authority by
Function and Program.—Tables 17-10 and 17-11
present current services budget authority and outlays,
respectively, in function order, with subfunction and
program level detail.
221
17. CURRENT SERVICES ESTIMATES
TABLE 17-7. CURRENT SERVICES OUTLAYS BY AGENCY
(In billions of dollars)
Agency
1993 actual
1994 estimate
1995 estimate
1996 estimate
1997 estimate
1998 estimate
1999 estimate
Cabinet Agencies:
Agriculture.............................................................................................
Commerce.............................................................................................
Defense-Military..................................................................................
Education ..............................................................................................
Energy...................................................................................................
Health and Human Services................................................................
On-budget.........................................................................................
Off-budget.........................................................................................
Housing and Urban Development.........................................................
Interior...................................................................................................
Justice...................................................................................................
Labor .....................................................................................................
State......................................................................................................
Transportation.......................................................................................
Treasury................................................................................................
Veterans Affairs....................................................................................
63.1
2.8
278.6
30.3
16.9
581.1
(282.8)
(298.3)
25.2
6.8
10.2
44.7
5.2
34.5
298.8
35.5
64.9
3.2
266.6
28.7
17.4
631.4
(316.8)
(314.7)
26.4
7.3
10.8
37.1
5.1
36.7
309.0
37.9
61.5
3.5
260.5
29.6
16.9
675.2
(344.2)
(331.0)
28.3
7.4
10.4
34.2
5.3
37.8
328.4
38.2
63.0
3.7
264.9
27.3
17.8
727.8
(377.9)
(349.9)
29.3
7.7
11.3
35.3
5.5
39.8
347.2
38.0
65.4
4.0
271.9
29.2
18.3
780.1
(414.5)
(365.6)
30.0
8.0
11.3
36.0
5.7
41.3
366.0
40.4
66.5
4.3
280.4
30.1
18.8
840.0
(454.6)
(385.4)
31.1
8.3
11.7
36.6
5.9
42.6
385.4
41.7
68.2
4.3
289.5
31.2
19.5
906.2
(499.9)
(406.3)
32.8
8.6
12.0
38.2
6.1
43.7
405.4
44.2
Major Agencies:
Corps of Engineers, Military Retirement and Other Defense...............
Environmental Protection Agency.........................................................
Executive Office Of the President.........................................................
Funds Appropriated to the President....................................................
General Services Administration...........................................................
The Judiciary ........................................................................................
Legislative Branch ................................................................................
National Aeronautics and Space Administration..................................
Office of Personnel Management.........................................................
Small Business Administration.............................................................
29.3
5.9
0.2
11.2
0.7
2.6
2.4
14.3
36.8
0.8
31.0
6.6
0.2
11.5
1.1
2.9
2.8
14.2
38.1
0.6
31.4
6.6
0.2
12.1
0.6
2.9
2.8
14.8
40.2
0.4
32.6
6.8
0.2
11.3
0.8
3.0
2.9
15.5
42.3
0.5
34.0
7.0
0.2
11.4
0.5
3.2
3.0
15.9
44.5
0.6
35.5
7.2
0.2
11.8
*
3.3
3.1
16.4
47.2
0.6
37.9
7.2
0.2
12.2
-0.2
3.4
3.2
16.9
49.6
0.6
All Other Agencies..................................................................................
On-budget.............................................................................................
Off-budget.............................................................................................
-10.0
(-11.5)
(1.4)
15.7
(13.9)
(1.7)
8.9
(5.7)
(3.3)
5.6
(5.4)
(0.2)
10.7
(11.2)
(-0.5)
12.1
(13.2)
(-1.1)
13.6
(15.1)
(-1.5)
Undistributed Offsetting Receipts .........................................................
On-budget.............................................................................................
Off-budget.............................................................................................
-119.7
(-86.5)
(-33.2)
-123.7
(-88.2)
(-35.5)
-132.4
(-94.0)
(-38.4)
-134.7
(-92.6)
(-42.1)
-137.6
(-91.2)
(-46.4)
-145.1
(-93.7)
(-51.4)
-149.9
(-93.0)
(-56.9)
Total .................................................................................................
On-budget.....................................................................................
Off-budget.....................................................................................
1,408.2
(1,141.6)
(266.6)
1,483.6
(1,202.8)
(280.9)
1,525.6
(1,229.7)
(295.8)
1,605.3
(1,297.3)
(308.0)
1,701.3
(1,382.7)
(318.6)
1,795.6
(1,462.8)
(332.9)
1,904.7
(1,556.8)
(347.9)
* $50 million or less.
150-003
http://fraser.stlouisfed.org/0 -9 4 -8 (QL 3)
Federal Reserve Bank of St. Louis
222
ANALYTICAL PERSPECTIVES
TABLE 17-8. CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION
(In billions of dollars)
1994 estimate
1995 estimate
1996 estimate
1997 estimate
1998 estimate
1999 estimate
267.2
13.9
248.7
12.0
257.7
12.3
266.6
12.7
276.2
13.1
286.1
13.6
296.4
14.0
Total, national defense.....................................................................
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............................
Other undistributed offsetting receipts..................................................
281.1
32.3
17.2
8.3
21.6
19.1
9.9
(7.7)
(2.2)
40.4
10.2
52.8
108.6
124.8
214.8
306.3
(6.2)
(300.1)
36.3
15.2
13.2
198.8
(225.6)
(-26.8)
260.6
18.6
17.6
5.1
21.9
16.2
28.2
(24.0)
(4.3)
41.4
8.3
53.4
116.1
150.7
215.5
322.0
(5.8)
(316.2)
36.7
15.9
13.8
203.2
(232.3)
(-29.1)
270.0
19.2
18.1
5.2
23.0
13.7
11.2
(5.9)
(5.3)
41.8
8.6
55.0
117.1
158.4
221.6
339.3
(6.6)
(332.6)
38.5
16.4
14.1
213.1
(244.7)
(-31.7)
279.3
18.3
18.7
6.4
23.7
13.4
8.1
(6.0)
(2.1)
42.4
8.9
53.7
137.1
177.9
242.3
357.4
(7.0)
(350.4)
39.7
16.9
14.9
225.4
(260.3)
(-34.9)
289.3
19.0
19.3
6.2
24.4
13.2
5.3
(5.0)
(0.3)
45.2
9.1
56.9
152.3
195.8
256.0
376.7
(7.4)
(369.3)
40.8
17.6
15.7
236.8
(275.5)
(-38.8)
299.7
19.9
19.9
6.0
24.6
13.3
5.7
(4.1)
(1.6)
46.7
9.4
59.4
168.5
215.2
267.5
397.2
(7.9)
(389.3)
42.0
18.3
16.5
249.6
(292.7)
(-43.2)
310.4
20.9
20.6
6.2
25.1
13.6
3.8
(3.8)
*
48.3
9.8
61.7
185.6
238.9
281.4
418.7
(8.4)
(410.3)
44.4
19.1
17.4
262.9
(310.9)
(-48.0)
-28.2
-6.4
-2.8
-28.2
-6.5
-2.7
-0.5
-28.7
-6.8
-3.0
-4.3
-28.1
-7.2
-2.7
-4.2
-28.3
-7.6
-2.7
-1.6
-29.6
-8.3
-2.8
-2.0
-30.4
-8.9
-2.8
Total, Undistributed offsetting receipts.............................................
On-budget.....................................................................................
Off-budget.....................................................................................
-37.4
(-31.0)
(-6.4)
-37.9
(-31.4)
(-*5 )
-42.7
(-36.0)
(-6.8)
-42.2
(-35.0)
(-7.2)
-40.3
(-32.7)
(-7.6)
-42.6
(-34.4)
(-8.3)
-42.1
(-33.2)
(-8.9)
Total .................................................................................................
On-budget.....................................................................................
Off-budget.....................................................................................
1,473.6
(1,204.4)
(269.1)
1,507.3
(1,222.4)
(284.9)
1,541.5
(1,242.0)
(299.5)
1,642.5
(1,332.1)
(310.4)
1,739.3
(1,416.1)
(323.2)
1,836.7
(1,497.3)
(339.4)
1,946.6
(1,593.1)
(353.4)
Function
National defense:
Department of Defense—Military..........................................................
O ther....................................................................................................
1993 actual
223
17. CURRENT SERVICES ESTIMATES
TABLE 17-9. CURRENT SERVICES BUDGET AUTHORITY BY AGENCY
(In billions of dollars)
Agency
Cabinet Agencies:
Agriculture ..........................................................................................................
Commerce..........................................................................................................
Defense—Military................................................................................................
Education............................................................................................................
Energy................................................................................................................
Health and Human Services ..............................................................................
On-budget.......................................................................................................
Off-budget......................................................................................................
Housing and Urban Development......................................................................
Interior................................................................................................................
Justice ................................................................................................................
Labor ..................................................................................................................
1993
actual
1994
estimate
1995
estimate
1996
estimate
1997
estimate
1998
estimate
1999
estimate
Transportation ....................................................................................................
Treasury.............................................................................................................
Veterans Affairs...................................................................................................
67.9
3.2
267.4
31.5
17.7
586.7
(286.6)
(300.1)
26.5
6.9
10.5
46.9
5.3
40.0
300.5
36.0
65.2
3.6
248.7
28.8
17.0
643.9
(327.8)
(316.2)
25.9
7.5
10.3
38.6
5.0
40.2
309.9
36.5
63.4
3.9
257.7
30.7
17.5
669.8
(337.2)
(332.6)
26.7
7.6
10.4
35.3
5.2
40.5
329.4
38.3
65.2
4.0
266.6
28.6
18.3
729.5
(379.0)
(350.4)
36.8
7.9
10.8
36.2
5.4
41.1
348.1
39.5
67.1
4.2
276.2
31.0
18.8
784.1
(414.8)
(369.3)
39.1
8.2
11.2
37.0
5.6
43.9
367.1
40.6
68.0
4.4
286.1
32.4
19.4
844.4
(455.2)
(389.3)
40.3
8.5
11.7
37.4
5.9
45.4
386.5
41.8
69.7
4.5
296.4
33.7
20.1
911.5
(501.1)
(410.3)
41.7
8.8
12.1
39.0
6.1
46.9
406.4
44.2
Major Agencies:
Corps of Engineers, Military Retirement and Other Defense............................
Environmental Protection Agency......................................................................
Executive Office Of the President.......................................................................
Funds Appropriated to the President.................................................................
General Services Administration ........................................................................
The Judiciary......................................................................................................
Legislative Branch...............................................................................................
National Aeronautics and Space Administration.................................................
Office of Personnel Management.......................................................................
Small Business Administration ...........................................................................
29.9
6.7
0.2
24.8
0.6
2.6
2.6
14.3
39.3
1.2
30.7
6.4
0.2
11.3
0.7
2.8
2.7
14.6
40.2
0.8
31.4
6.6
0.2
11.3
0.9
3.0
2.8
15.0
42.1
0.8
32.7
6.9
0.2
9.8
1.2
3.1
2.9
15.5
44.2
0.8
34.1
7.1
0.2
10.1
1.4
3.2
3.0
16.0
46.9
0.8
35.5
7.4
0.2
10.5
1.6
3.3
3.1
16.5
49.4
0.9
37.9
7.7
0.2
11.2
1.8
3.5
3.3
17.1
51.8
0.9
Ail Other Agencies................................................................................................
On-budget .<..........................................................................................................
Off-budget...........................................................................................................
24.1
(21.8)
(2.2)
39.6
(35.3)
(4.3)
23.4
(18.1)
(5.3)
22.1
(20.1)
(2.1)
19.8
(19.5)
(0.3)
21.1
(19.5)
(1.6)
20.0
(20.0)
*
Undistributed Offsetting Receipts.......................................................................
On-budget...........................................................................................................
Off-budget...........................................................................................................
-119.7
(-86.5)
(-33.2)
-123.7
(-88.2)
(-35.5)
-132.4
(-94.0)
(-38.4)
-134.7
(-92.6)
(-42.1)
-137.6
(-91.2)
(-46.4)
-145.1
(-93.7)
(-51.4)
-149.9
(-93.0)
(-56.9)
Total...............................................................................................................
On-budget...................................................................................................
Off-budget...................................................................................................
1,473.6
(1,204.4)
(269.1)
1,507.3
(1,222.4)
(284.9)
1,541.5
(1,242.0)
(299.5)
1,642.5
(1,332.1)
(310.4)
1,739.3
(1,416.1)
(323.2)
1,836.7
(1,497.3)
(339.4)
1,946.6
(1,593.1)
(353.4)
* $50 million or less.
224
ANALYTICAL PERSPECTIVES
TABLE 17-10. CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION AND PROGRAM
(In millions of dollars)
estimate
1993
actual
1994
1995
1996
1997
1998
1999
050 National defense:
051 Department of Defense—Military ...............................................
267,194
248,675
257,708
266,628
276,194
286,113
296,413
053 Atomic energy defense activities...............................................
12,059
10,877
11,201
11,545
11,911
12,289
12,679
054 Defense-related activities............................................................
1,823
1,074
1,119
1,166
1,214
1,263
1,314
Total, National defense................................................................
281,076
260,626
270,028
279,339
289,319
299,666
310,406
150 International affairs:
151 International development and humanitarian assistance:
Agency for International Development.............................................
Assistance for New Independent States of Former Soviet Union ....
Multilateral development banks (MDB’s ) ..........................................
Food aid ...........................................................................................
Refugee programs............................................................................
Voluntary contributions to international organizations......................
Peace Corps.....................................................................................
Other programs................................................................................
Credit liquidating accounts...............................................................
Offsetting receipts ............................................................................
2,986
1,018
1,583
1,573
670
320
220
589
-1,014
-939
2,765
1,510
1,478
1,511
720
361
220
512
-572
-710
2,857
1,554
1,521
1,540
741
371
229
639
-510
-618
2,950
1,601
1,566
1,587
763
382
238
519
-361
-549
3,048
1,650
1,615
1,636
787
394
248
530
-286
-516
3,150
1,701
1,665
1,687
812
406
258
542
-240
-472
3,255
1,754
1,716
1,739
837
419
268
553
-212
-432
Subtotal, International development and humanitarian assistance
7,007
7,796
8,325
8,696
9,106
9,509
9,898
152 International security assistance:
Non-proliferation and disarmament fund..........................................
Foreign military financing grants and loans.....................................
Economic support fund....................................................................
Other programs................................................................................
Foreign military financing repayment................................................
Foreign military financing liquidating account..................................
3,382
2,676
90
-469
-204
10
3,196
2,162
96
-574
-235
10
3,289
2,224
100
-628
-286
11
3,388
2,291
103
-726
-245
11
3,493
5,362
106
-731
-230
11
3,601
2,435
109
-632
-230
12
3,713
2,511
113
-606
-223
Subtotal, International security assistance...................................
5,475
4,655
4,710
4,821
5,011
5,294
5,519
153 Conduct of foreign affairs:
State Department salaries and expenses........................................
Foreign buildings..............................................................................
Contributions to International Organizations (UN) ...........................
Contributions to International Peacekeeping (U N )...........................
Other programs ................................................................................
2,164
560
913
460
229
2,112
400
861
402
184
2,198
413
886
413
191
2,287
427
912
426
198
2,383
441
941
439
206
2,483
456
970
452
214
2,587
472
1,000
466
223
Subtotal, Conduct of foreign affairs .............................................
4,327
3,958
4,101
4,250
4,410
4,576
4,748
154 Foreign information and exchange activities:
U.S. Information Agency..................................................................
Board for International Broadcasting................................................
Other programs ................................................................................
1,190
40
18
1,144
210
17
1,184
216
18
1,227
223
18
1,272
230
19
1,319
237
20
1,368
244
20
Subtotal, Foreign information and exchange activities.................
1,248
1,371
1,418
1,468
1,520
1,575
1,632
155 International financial programs:
Export-lmport Bank ..........................................................................
International monetary fund
..............................
Foreign military sales trust fund (net) ..............................................
Special defense acquisition fund......................................................
Credit liquidating account (Exim)......................................................
Offsetting receipts ............................................................................
751
14,653
87
-193
-923
-100
1,018
1,027
1,041
1,068
1,098
1,132
1,280
-266
-1,125
-102
740
-282
-766
-104
-1,170
-220
-454
-106
-1,460
-166
-348
-108
-1,710
-106
-225
-110
-1,690
-30
-224
-112
Subtotal, International financial programs....................................
14,275
805
615
-909
-1,014
-1,054
-925
—*
_*
Major missions and programs
156 International cooperation:
Multilateral development banks (MDB’s)
....................................
Other programs................................................................................
56
Subtotal, International cooperation...............................................
56
_*
_*
_*
Total, International affairs.............................................................
32,333
18,585
19,225
18,326
19,032
19,900
20,872
250 General science, space, and technology:
251 General science and basic research:
National Science Foundation programs ...........................................
2,702
2,995
3,083
3,176
3,276
3,378
3,484
225
17. CURRENT SERVICES ESTIMATES
TABLE 17-10. CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION AND PROGRAIUI-Continued
(In millions of dollars)
Major missions and programs
estimate
1993
actual
1994
1995
1996
1997
1998
1999
Department of Energy general science programs...........................
1,471
1,615
1,662
1,712
1,766
1,821
1,877
Subtotal, General science and basic research............................
4,173
4,610
4,745
4,889
5,041
5,199
5,362
252 Space flight, research, and supporting activities:
Research and program development...............................................
Space flight control and data communications................................
Construction of facilities...................................................................
Research and development..............................................................
Other.................................................................................................
1,320
5,059
462
6,208
15
1,304
4,854
306
6,502
15
1,367
4,994
315
6,691
16
1,433
5,144
324
6,892
17
1,504
5,304
334
7,105
18
1,578
5,468
344
7,325
19
1,655
5,637
355
7,553
19
Subtotal, Space flight, research, and supporting activities..........
13,064
12,980
13,383
13,810
14,264
14,734
15,220
Total, General science, space, and technology..........................
17,236
17,591
18,129
18,699
19,306
19,933
20,582
3,457
-220
37
3,409
437
275
-437
-56
250
5
247
3,882
-211
-400
1,334
177
286
261
-391
-9
122
4
-1,263
3,997
-190
-320
1,056
182
295
269
-551
-4
131
4
-955
4,120
-190
-67
1,841
188
303
277
-585
-2
145
4
-964
4,251
-192
-71
1,419
194
313
266
-591
-2
146
4
-957
4,386
-164
-140
1,094
200
323
274
-592
-2
153
4
-976
4,525
-125
-168
1,033
207
333
283
-600
-2
159
5
-985
Subtotal, Energy supply...............................................................
7,404
3,792
3,914
5,070
4,781
4,560
4,664
272 Energy conservation...................................................................
561
673
693
715
738
762
786
274 Emergency energy preparedness..............................................
60
216
222
229
237
244
252
276 Energy information, policy, and regulation:
Nuclear Regulatory Commission (NRC)...........................................
Other energy programs....................................................................
33
207
22
364
23
371
24
394
25
411
27
428
28
446
Subtotal, Energy information, policy, and regulation...................
240
386
394
418
436
455
474
Total, Energy................................................................................
8,264
5,067
5,224
6,433
6,192
6,020
6,176
Other.................................................................................................
Offsetting receipts ............................................................................
4,021
911
333
-464
4,197
944
359
-472
4,355
968
372
-474
4,489
1,029
385
-486
4,647
1,050
399
-538
4,780
1,085
413
-514
4,921
1,097
428
-466
270 Energy:
271 Energy supply:
Research and development..............................................................
Naval petroleum reserves................................................................
Federal power marketing .................................................................
Tennessee Valley Authority..............................................................
Uranium enrichment.........................................................................
Uranium enrichment decontamination and decommissioning fund ...
Nuclear waste program....................................................................
Nuclear waste fund receipts.............................................................
Subsidies for nonconventional fuel production.................................
Rural electric and telephone lines....................................................
Isotopes ............................................................................................
Credit liquidating account (REA) ......................................................
300 Natural resources and environment:
301 Water resources:
Corps of Engineers ..........................................................................
Bureau of Reclamation ...............................................................................
Subtotal, Water resources............................................................
4,801
5,029
5,220
5,417
5,558
5,764
5,980
302 Conservation and land management:
Forest Service ..................................................................................
Management of public lands (BLM) .................................................
Federal land acquisition...................................................................
Mining reclamation and enforcement ...............................................
Conservation reserve program .........................................................
Other conservation of agricultural lands...........................................
Other.................................................................................................
Offsetting receipts ............................................................................
2,995
907
28
300
1,547
860
356
-2,218
2,902
966
12
302
1,743
932
371
-2,379
2,960
1,002
13
312
1,772
1,178
385
-2,351
3,047
1,043
13
322
1,806
1,039
399
-2,429
3,147
1,086
13
334
1,741
1,068
415
-2,492
3,220
1,130
14
345
1,061
1,119
431
-2,511
3,373
1,177
14
358
622
1,162
448
-2,553
Subtotal, Conservation and land management............................
4,775
4,849
5,271
5,240
5,311
4,809
4,600
303 Recreational resources:
Federal land acquisition...................................................................
Urban park and historic preservation funds.....................................
Operation of recreational resources.................................................
257
42
2,509
242
45
2,638
280
46
2,745
287
48
2,936
296
49
3,050
304
51
3,121
313
52
3,262
226
ANALYTICAL PERSPECTIVES
TABLE 17-10. CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
estimate
1993
actual
1994
1995
1996
1997
1998
1999
Offsetting receipts ............................................................................
-204
-223
-261
-276
-285
-293
-301
Subtotal, Recreational resources .................................................
2,604
2,702
2,810
2,995
3,110
3,183
3,326
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.......................................................
2,712
1,589
165
2,550
84
-191
2,600
1,497
153
2,477
76
-236
2,717
1,545
156
2,549
78
-248
2,815
1,596
159
2,625
81
-224
2,920
1,651
162
2,707
83
-200
3,029
1,707
166
2,791
86
-176
3,142
1,765
169
2,877
89
-151
Subtotal, Pollution control and abatement...................................
6,908
6,568
6,798
7,053
7,324
7,603
7,892
306 Other natural resources:
Program activities.............................................................................
Offsetting receipts ............................................................................
2,566
-19
2,769
-18
2,878
-19
2,989
-19
3,109
-19
3,234
-19
3,364
-19
Subtotal, Other natural resources................................................
2,547
2,750
2,860
2,970
3,090
3,215
3,346
Total, Natural resources and environment...................................
21,636
21,897
22,959
23,676
24,393
24,574
25,145
350 Agriculture:
351 Farm income stabilization:
Commodity Credit Corporation .........................................................
Crop insurance.................................................................................
Agricultural credit insurance..............................................................
Emergency food assistance program...............................................
Other.................................................................................................
Credit liquidating accounts (ACIF & FAC) .......................................
14,570
286
427
165
1,085
-70
11,455
236
491
120
1,031
50
9,563
219
492
124
1,064
-623
8,479
219
510
127
1,100
-731
9,019
219
529
131
1,138
-912
8,942
219
549
135
1,177
-863
8,896
219
570
139
1,218
-767
Subtotal, Farm income stabilization.............................................
16,464
13,383
10,838
9,704
10,123
10,159
10,276
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 ............................................................................
1,139
428
191
459
143
429
-130
1,185
435
191
469
140
505
-117
1,219
448
194
483
146
522
-114
2,001
461
197
497
153
542
-113
1,271
476
203
512
159
563
-110
1,311
491
208
528
167
585
-109
1,352
506
213
544
174
607
-109
Subtotal, Agricultural research and services ...............................
2,660
2,808
2,897
3,738
3,074
3,180
3,288
Total, Agriculture..........................................................................
19,124
16,191
13,736
13,441
13,198
13,339
13,564
370 Commerce and housing credit:
371 Mortgage credit:
Mortgage credit (FHA) .....................................................................
Rural housing programs...................................................................
Federal housing enterprise oversight and other..............................
Credit liquidating accounts................................................................
287
1,081
11
1,170
934
1,478
191
1,153
-6
904
200
1,193
-6
560
209
1,236
-6
40
218
1,280
-6
-660
228
1,325
-6
-1,015
Subtotal, Mortgage credit .............................................................
2,302
2,659
2,243
1,947
1,478
832
532
372 Postal service:
Payments to the Postal Service fund (On-budget)..........................
Postal service (Off-budget) ...............................................................
161
2,239
130
4,282
132
5,349
134
2,057
137
311
140
1,579
143
6
Subtotal, Postal service................................................................
2,400
4,412
5,481
2,191
448
1,719
149
373 Deposit insurance:
Resolution Trust Corporation Fund ................................................
FSLIC Resolution Fund
.........................................
Savings Association Insurance Fund ...............................................
Discretionary.....................................................................................
2,428
18,315
396
827
34
34
36
1,174
38
452
40
142
42
44
Subtotal, Deposit insurance..........................................................
2,462
18,745
863
1,212
492
184
44
376 Other advancement of commerce:
Small and minority business assistance..........................................
Science and technology....................................................................
815
413
624
546
645
565
667
585
690
606
715
629
740
652
227
17. CURRENT SERVICES ESTIMATES
TABLE 17-10. CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
1993
actual
estimate
1994
1995
1996
1997
1998
1999
Economic and demographic statistics..............................................
Payments to copyright owners .........................................................
Regulatory agencies.........................................................................
International trade and other business promotion ...........................
Credit liquidating accounts...............................................................
344
213
341
367
250
284
250
230
479
8
296
250
238
659
3
309
260
251
682
323
270
261
706
337
280
275
732
352
290
290
758
Subtotal, Other advancement of commerce................................
2,743
2,420
2,655
2,753
2,857
2,967
3,082
Total, Commerce and housing credit...........................................
9,906
28,235
11,242
8,103
5,275
5,702
3,807
On-budget................................................................................
Off-budget................................................................................
(7,667)
(2,239)
(23,953)
(4,282)
(5,892)
(5,349)
(6,046)
(2,057)
(4,964)
(311)
(4,123)
(1,579)
(3,801)
(6)
400 Transportation:
401 Ground transportation:
Highways ..........................................................................................
Highway safety.................................................................................
Mass transit......................................................................................
Railroads...........................................................................................
Regulation (ICC)...............................................................................
Offsetting receipts ............................................................................
21,129
395
3,867
1,052
44
-42
21,064
420
4,629
1,118
45
-44
20,971
428
4,534
1,148
47
-45
20,948
434
4,474
1,205
49
-6
20,961
446
6,552
1,239
51
-6
21,610
455
6,756
1,279
53
-6
22,280
464
6,966
1,320
56
-6
Subtotal, Ground transportation ...................................................
26,446
27,233
27,082
27,103
29,243
30,147
31,079
402 Air transportation:
Airports and airways (FAA)...............................................................
Aeronautical research and technology.............................................
Payments to air carriers...................................................................
9,112
1,245
39
8,645
1,571
39
8,974
1,623
39
9,318
1,678
39
9,685
1,737
39
10,067
1,798
39
10,466
1,861
39
Subtotal, Air transportation...........................................................
10,396
10,254
10,636
11,034
11,460
11,904
12,365
3,202
163
-78
3,538
184
1
-S7
3,652
171
6
-99
3,797
177
1
-102
4,065
182
-2
-103
4,237
187
-1
-104
4,396
192
1
-104
403 Water transportation:
Marine safety and transportation......................................................
Ocean shipping ................................................................................
Panama Canal Commission .............................................................
Offsetting receipts ............................................................................
Subtotal, Water transportation......................................................
3,287
3,635
3,730
3,872
4,143
4,319
4,485
407 Other transportation:
Miscellaneous programs ..................................................................
Offsetting receipts ............................................................................
324
-24
353
-36
387
-36
386
-37
400
-38
414
-38
430
-39
Subtotal, Other transportation ......................................................
299
317
350
349
362
376
390
Total, Transportation....................................................................
40,428
41,440
41,798
42,358
45,208
46,746
48,318
450 Community and regional development:
451 Community development:
Community development block grants .............................................
Pennsylvania Avenue Development Corporation.............................
Other .................................................................................................
4,243
15
590
4,400
14
177
4,528
15
418
4,663
15
436
4,808
16
451
4,957
16
468
5,111
17
487
Subtotal, Community development...............................................
4,848
4,591
4,960
5,115
5,275
5,442
5,615
452 Area and regional development:
Rural development...........................................................................
Economic development assistance...................................................
Indian programs ...............................................................................
Appalachian Regional Commission ..................................................
Tennessee Valley Authority..............................................................
Credit liquidating accounts................................................................
Offsetting receipts ............................................................................
732
333
1,467
195
135
513
-455
868
351
1,612
254
140
316
-412
892
361
1,644
261
146
75
-389
920
373
1,634
269
152
136
-347
950
385
1,664
277
159
74
-333
981
397
1,697
286
166
61
-322
1,014
410
1,736
294
173
106
-322
Subtotal, Area and regional development....................................
2,919
3,129
2,989
3,138
3,175
3,266
3,412
453 Disaster relief and insurance:
Small business disaster loans..........................................................
Disaster relief ...................................................................................
National flood insurance fund...........................................................
148
2,027
171
292
4
176
300
181
309
187
319
193
329
199
339
228
ANALYTICAL PERSPECTIVES
TABLE 17-10. CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
estimate
1993
actual
1994
1995
1996
1997
1998
1999
Other.................................................................................................
212
145
161
168
174
181
188
Subtotal, Disaster relief and insurance........................................
2,387
612
638
658
680
703
726
Total, Community and regional development..............................
10,154
8,332
8,588
8,911
9,130
9,410
9,753
500 Education, training, employment, and social services:
501 Elementary, secondary, and vocational education:
Education reform..............................................................................
School improvement programs.........................................................
Education for the disadvantaged......................................................
Special education.............................................................................
Impact a id .........................................................................................
Vocational and adult education ........................................................
Indian education programs ...............................................................
Other.................................................................................................
1,531
6,709
2,966
840
1,481
535
152
155
1,377
6,924
3,109
798
1,488
579
247
160
1,417
7,125
3,199
821
1,531
599
254
164
1,459
7,339
3,295
846
1,577
620
261
170
1,504
7,567
3,397
872
1,626
643
269
175
1,551
7,801
3,502
899
1,676
666
278
180
1,599
8,043
3,611
927
1,728
691
286
Subtotal, Elementary, secondary, and vocational education........
14,214
14,677
15,106
15,562
16,048
16,548
17,065
502 Higher education:
Student financial assistance .............................................................
Family education loan program........................................................
Higher education ..............................................................................
Federal direct loan program .............................................................
Other.................................................................................................
Credit liquidating account (Family education loan program)............
7,920
2,647
838
10
289
3,055
8,023
2,441
894
298
290
-443
8,256
1,919
920
694
298
756
8,504
1,339
947
1,262
320
-2,118
8,767
1,224
977
1,418
332
-674
9,039
1,173
1,007
1,894
344
-604
9,319
1,108
1,038
2,293
353
-616
Subtotal, Higher education ...........................................................
14,759
11,503
12,842
10,253
12,045
12,853
13,494
503 Research and general education aids ......................................
2,119
2,158
2,243
2,333
2,418
2,507
2,599
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.................................................................................................
4,614
80
396
1,000
1,181
77
5,014
76
410
1,100
1,254
93
5,160
101
422
1,300
1,294
97
5,317
102
435
1,000
1,333
101
5,483
92
449
1,000
1,376
106
5,655
103
462
1,000
1,419
110
5,832
80
477
1,000
1,464
115
Subtotal, Training and employment.............................................
7,347
7,946
8,375
8,289
8,505
8,750
8,968
505 Other labor services...................................................................
933
949
988
1,031
1,076
1,123
1,172
202
653
150
2,800
478
2,362
3,441
4,362
897
243
16
802
225
2,800
492
2,432
4,000
4,495
924
888
240
2,800
507
2,510
4,249
4,637
953
988
255
2,800
523
2,590
4,654
4,783
983
1,103
270
2,800
539
2,677
5,079
4,934
1,014
17
17
18
19
506 Social services:
National service initiative .................................................................
Family support and preservation ......................................................
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 ...................................................................
Interim assistance to States for legalization ....................................
Other social services........................................................................
2,800
441
2,183
2,924
3,659
839
326
15
577
60
3,800
464
2,297
2,993
4,237
871
812
16
Subtotal, Social services .............................................................
13,387
16,127
15,401
16,188
16,801
17,594
18,436
Total, Education, training, employment, and social services.......
52,760
53,360
54,956
53,655
56,894
59,375
61,734
550 Health:
551 Health care services:
Medicaid grants................................................................................
Health insurance earned income credit............................................
Federal employees’ health benefits (FEHB) ....................................
Coal miners retirees health benefits.................................................
Indian health.....................................................................................
Substance abuse and mental health services.................................
Other health care services................................................................
82,596
650
4,149
161
1,868
2,039
4,176
89,077
373
3,805
239
1,947
2,150
4,936
89,238
108,191
121,488
136,338
152,235
4,211
236
2,094
2,213
5,078
4,646
233
2,087
2,280
5,227
5,276
229
2,159
2,352
5,400
5,757
226
2,239
2,426
5,578
6,062
222
2,321
2,502
5,767
Subtotal, Health care services .....................................................
95,638
102,528
103,069
122,664
136,905
152,563
169,109
229
17. CURRENT SERVICES ESTIMATES
TABLE 17-10. CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Major missions and programs
1993
actual
estimate
1994
1995
1996
1997
1998
1999
552 Health research and training:
National Institutes of Health.............................
DoD breast cancer and other health research
Clinical training................................................
Other research and training.............................
10,335
210
353
264
10,965
11,299
11,653
12,031
12,420
12,823
358
309
382
320
381
332
380
344
380
358
378
371
Subtotal, Health research and training
11,161
11,632
12,001
12,366
12,756
13,158
13,573
494
830
493
517
913
505
543
951
526
571
991
548
1,071
1,033
571
1,119
1,078
595
1,172
1,124
620
Subtotal, Consumer and occupational health and
1,817
1,935
2,020
2,110
2,676
2,792
2,917
Total, Health........................................................
108,616
116,095
117,090
137,140
152,336
168,513
185,598
89,076
49,735
-14,054
102,779
58,545
-10,592
112,173
66,254
-20,056
123,943
73,885
-19,914
135,017
82,083
-21,348
147,716
91,315
-23,859
162,247
102,027
-25,372
124,757
150,733
158,371
177,913
195,753
215,172
238,902
600 Income security:
601 General retirement and disability insurance (excluding social
security):
Railroad retirement..................................................................
Special benefits for disabled coal miners..............................
Other.......................................................................................
4,192
1,308
179
4,654
1,388
202
4,661
1,334
200
4,742
1,282
209
4,761
1,246
219
4,773
1,207
228
4,849
1,166
239
Subtotal, General retirement and disability insurance (excluding
social security)................................................................
5,678
6,245
6,195
6,233
6,226
6,208
6,254
35,502
25,823
288
12
36,753
26,513
278
2
38,268
27,200
275
19
39,901
28,322
306
21
42,076
29,560
336
23
44,091
30,891
358
26
46,222
33,080
367
29
Subtotal, Federal employee retirement and disability
61,625
63,546
65,761
68,550
71,995
75,366
79,697
603 Unemployment compensation.................................
38,164
29,195
25,540
26,123
26,605
26,754
27,979
604 Housing assistance:
Subsidized housing including section 8 ....
Public housing...........................................
Supportive housing program......................
Emergency shelter grants..........................
Home investment partnerships program ....
Shelter plus care.......................................
Community partnerships against crime.....
Youthbuild program...................................
HOPE grants .............................................
Revitalization of distressed public housing
Rural housing assistance..........................
Other housing assistance ..........................
15,623
2,342
150
50
1,232
267
175
40
271
300
513
213
14,591
2,721
334
115
1,275
124
265
14,675
2,747
344
118
1,312
127
273
24,626
2,828
354
122
1,351
131
281
26,786
2,914
365
126
1,393
135
290
27,686
3,003
376
130
1,436
139
299
28,704
3,094
388
134
1,481
144
308
-141
778
546
413
801
562
502
825
579
519
850
597
538
877
615
557
904
634
578
21,177
21,021
21,460
31,616
33,994
35,118
36,368
27,064
1,040
6,841
27,046
1,079
7,517
27,674
1,143
7,407
28,612
1,143
8,245
29,689
1,143
8,822
30,685
1,143
9,423
31,692
1,143
10,073
2,860
1,211
3,210
1,124
3,303
1,097
3,402
1,057
3,508
1,079
3,616
1,101
3,728
1,125
39,016
39,976
40,624
42,459
44,240
45,968
47,761
554 Consumer and occupational health and safety:
Food safety and inspection.......................................
Other consumer safety..............................................
Occupational safety and 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, 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 chil
dren (WIC) ...................................................................................
Other nutrition programs...................................................................
Subtotal, Food and nutrition assistance .
230
ANALYTICAL PERSPECTIVES
TABLE 17-10. CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Major missions and programs
estimate
1993
actual
1994
1995
1996
1997
1998
1999
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...................................................................................
SSI offsetting receipts.........................................................
22,568
15,695
8,781
381
1,346
893
226
-735
27,334
16,173
10,036
400
1,437
893
170
-922
27,356
16,962
15,797
412
1,479
919
173
-1,047
28,926
17,510
18,932
424
1,523
946
185
-1,147
31,378
18,232
21,456
437
1,571
975
193
-1,350
34,965
18,904
22,368
451
1,619
1,006
202
-1,477
38,613
19,739
23,167
465
1,670
1,037
211
-1,609
Subtotal, Other income security.....................................
49,154
55,521
62,050
67,300
72,894
78,038
83,291
Total, Income security ....................................................
214,815
215,502
221,631
242,281
255,953
267,453
281,350
650 Social Security:
651 Social security:
Old-age and survivors insurance (OASI) ...........................
Disability insurance (D l)......................................................
Social security interfunds....................................................
271,282
35,060
-4
283,845
38,135
-16
297,076
42,192
-16
311,459
45,986
-16
326,662
50,089
-16
342,739
54,458
-16
359,707
59,054
-16
Total, Social Security......................................................
306,338
321,964
339,252
357,429
376,735
397,181
418,744
On-budget...................................................................
Off-budget...................................................................
(6,248)
(300,090)
(5,790)
(316,174)
(6,639)
(332,613)
(7,004)
(350,425)
(7,447)
(369,288)
(7,910)
(389,271)
(8,404)
(410,340)
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................................................
13,429
3,477
99
1,480
34
-395
14,014
3,398
108
1,388
25
-319
14,520
3,344
111
1,357
33
-306
14,961
3,314
114
1,300
37
-288
15,429
3,304
118
1,280
35
-274
15,887
3,296
121
1,179
35
-261
16,396
3,768
124
1,104
34
-246
Subtotal, Income security for veterans ..........................
18,123
18,615
19,058
19,439
19,892
20,257
21,182
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...................................................................................
779
-16
-89
1
1,051
-3
-63
1
1,287
-1
-146
1
1,445
-1
-141
1
1,525
1,607
1,664
-130
1
-137
1
-123
1
Subtotal, Veterans education, training, and rehabilitation
675
985
1,140
1,305
1,397
1,472
1,542
703 Hospital and medical care for veterans:
Medical care and hospital services....................................
Construction........................................................................
Third-party medical recoveries............................................
Fees and other charges for medical services ...................
14,962
684
-53
-357
15,953
565
-63
-420
16,628
582
-61
-503
17,327
599
-56
-587
17,905
618
-57
-644
18,680
637
-61
-701
19,489
657
370
-709
Subtotal, Hospital and medical care for veterans..........
15,235
16,036
16,645
17,284
17,822
18,555
19,807
704 Veterans housing:
Loan guaranty ....................................................................
Direct loans ........................................................................
Guaranty and indemnity......................................................
Credit liquidating accounts ..................................................
207
6
855
112
96
3
-57
93
3
422
98
3
400
97
3
341
97
4
318
98
4
486
Subtotal, Veterans housing ............................................
1,181
42
518
501
441
419
587
705 Other veterans benefits and services:
Cemeteries, administration of veterans benefits, and other
Non-VA support programs..................................................
948
95
964
94
1,006
98
1,049
100
1,095
104
1,144
107
1,195
109
Subtotal, Other veterans benefits and services.............
1,043
1,057
1,103
1,149
1,199
1,251
1,304
Total, Veterans benefits and services............................
36,259
36,736
38,465
39,677
40,752
41,953
44,422
750 Administration of justice:
751 Federal law enforcement activities:
Criminal investigations (DEA, FBI, FinCEN, OCDE) ..........
Alcohol, tobacco, and firearms investigations (ATF) .........
3,209
372
3,413
372
3,540
389
3,639
406
3,777
424
3,921
443
4,072
463
231
17. CURRENT SERVICES ESTIMATES
TABLE 17-10. CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
1993
actual
estimate
1994
1995
1996
1997
1998
1999
Border enforcement activities (Customs and INS) ..........................
Customs and INS fees.....................................................................
Protection activities (Secret Service)................................................
Other enforcement ...........................................................................
3,187
-1,276
521
738
3,357
-1,423
502
651
3,678
-1,669
522
679
3,791
-1,738
543
708
3,911
-1,765
566
755
4,036
-1,792
589
787
4,164
-1,819
624
821
Subtotal, Federal law enforcement activities...............................
6,751
6,872
7,139
7,349
7,669
7,985
8,326
752 Federal litigative and judicial activities:
Civil and criminal prosecution and representation...........................
Federal judicial activities..................................................................
Representation of indigents in civil cases........................................
Other.................................................................................................
2,501
2,614
357
14
2,695
2,820
400
14
2,663
2,957
412
14
2,750
3,077
424
14
2,842
3,205
437
15
2,938
3,338
451
15
3,038
3,478
465
16
Subtotal, Federal litigative and judicial activities.........................
5,486
5,929
6,046
6,265
6,498
6,742
6,997
753 Federal correctional activities....................................................
1,937
2,220
2,310
2,405
2,506
2,611
2,721
754 Criminal justice assistance.........................................................
1,006
859
900
927
955
985
1,015
Total, Administration of justice.....................................................
15,180
15,880
16,395
16,945
17,628
18,324
19,059
800 General government:
801 Legislative functions...................................................................
2,109
2,113
2,201
2,291
2,390
2,493
2,600
802 Executive direction and management.......................................
254
253
262
273
283
295
307
803 Central fiscal operations:
Collection of taxes............................................................................
Other fiscal operations.....................................................................
7,105
149
7,352
228
7,672
214
8,003
312
8,358
349
8,729
381
9,157
410
Subtotal, Central fiscal operations ...............................................
7,254
7,580
7,886
8,316
8,707
9,110
9,568
804 General property and records management:
Real property activities.....................................................................
Property and other receipts..............................................................
Records management......................................................................
Other .................................................................................................
408
-11
168
198
526
-43
193
192
699
-52
198
198
1,026
-52
204
206
1,263
-52
210
217
1,464
-52
217
226
1,645
-52
224
235
Subtotal, General property and records management.................
763
868
1,044
1,384
1,639
1,855
2,051
178
177
185
193
202
211
220
528
305
463
678
285
531
698
279
509
719
272
536
741
265
562
765
261
568
789
256
584
86
104
227
207
102
104
230
228
101
107
236
234
77
110
244
241
77
114
253
248
78
117
259
256
78
121
270
263
Subtotal, General purpose fiscal assistance................................
1,919
2,158
2,164
2,199
2,260
2,303
2,362
808 Other general government:
Compact of free association.............................................................
Territories..........................................................................................
Treasury claims................................................................................
Civil liberties public education fund..................................................
Presidential election campaign fund.................................................
Other.................................................................................................
161
112
518
500
28
183
324
106
591
100
81
91
173
108
611
178
111
523
153
113
523
148
116
523
151
119
518
81
96
81
100
81
105
81
110
81
116
Subtotal, Other general government............................................
1,503
1,293
1,068
992
976
978
984
809 Deductions for offsetting receipts.............................................
-739
-691
-700
-710
-710
-710
-710
Total, General government...........................................................
13,240
13,750
14,111
14,937
15,746
16,534
17,382
900 Net interest:
901 Interest on the public d e b t.........................................................
292,502
298,303
311,102
325,602
341,459
359,503
378,021
902 Interest received by on-budget trust funds:
Civil Service retirement and disability..............................................
-25,155
-26,197
-27,071
-27,875
-28,562
-29,241
-30,058
805 Central personnel management.................................................
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.................................................................................................
232
ANALYTICAL PERSPECTIVES
TABLE 17-10. CURRENT SERVICES BUDGET AUTHORITY BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
1993
actual
estimate
1994
1995
1996
1997
1998
1999
Military retirement.............................................................................
Medicare...........................................................................................
Other on-budget trust fund interest..................................................
-9,831
-12,468
-8,082
-10,252
-12,724
-7,590
-10,695
-12,337
-7,053
-11,100
-11,503
-7,145
-11,525
-11,118
-7,289
-11,951
-10,402
-7,759
-12,379
-9,251
-8,105
Subtotal, Interest received by on-budget trust funds...................
-55,537
-56,762
-57,156
-57,623
-58,495
-59,354
-59,793
903 Interest received by off-budget trust fund s.............................
-26,788
-29,073
-31,669
-34,922
-38,784
-43,151
-48,023
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.................................
Cash management improvement......................................................
-11,333
2,127
2,328
514
-493
-542
-5,874
3,297
2,328
1,031
-4,060
-885
-60
-3,209
-5,144
3,440
2,328
1,051
-4,944
-885
-53
-8,122
Subtotal, Other interest.................................................................
-11,356
-9,238
-9,215
-7,648
-7,429
-7,433
-7,329
Total, Net interest........................................................................
198,822
203,229
213,062
225,409
236,751
249,566
262,876
On-budget................................................................................
Off-budget................................................................................
(225,610)
(-26,788)
(232,302)
(-29,073)
(244,731)
(-31,669)
(260,331)
(-34,922)
(275,535)
(-38,784)
(292,717)
(-43,151)
(310,899)
(-48,023)
950 Undistributed offsetting receipts:
951 Employer share, employee retirement (on-budget):
Contributions to military retirement fund ..........................................
Contributions to HI trust fund ...........................................................
Postal Service contributions to CSRS..............................................
Other contributions to civilian retirement fund .................................
-13,179
-2,375
-4,785
-7,847
-12,671
-2,448
-5,136
-7,961
-12,249
-2,531
-5,669
-8,266
-10,498
-3,249
-5,678
-8,704
-10,488
-2,743
-5,925
-9,186
-10,692
-2,874
-6,389
-9,623
-10,881
-3,031
-6,519
-9,970
Subtotal, Employer share, employee retirement (on-budget).......
-28,186
-28,217
-28,714
-28,129
-28,342
-29,578
-80,401
-7,628
-8,279
-8,887
-2,838
-8,794
-7,645
-6,708
2,899
3,016
3,151
2,328
2,328
2,328
921
786
997
-1,177
-1,922
-2,914
-740
-805
-870
-64
-56
-69
-3,957 Other.................................................................................................
-3,840
-4,462
-3,344
-3,478
-9,601
2,679
2,328
527
-707
-624
952 Employer share, employee retirement (off-budget)..................
-6,416
-6,463
-6,756
-7,184
953 Rents and royalties on the Outer Continental Shelf................
-2,785
-2,708
-2,980
-2,677
-2,725
-2,777
-500
-4,300
-4,200
-1,600
-2,000
959 Other undistributed offsetting receipts.....................................
Total, Undistributed offsetting receipts.........................................
-37,386
-37,887
-42,750
-42,190
-40,294
-42,634
-42,126
On-budget................................................................................
Off-budget................................................................................
(-30,970)
(-6,416)
(-31,425)
(-6,463)
(-35,994)
(-6,756)
(-35,006)
(-7,184)
(-32,666)
(-7,628)
(-34,355)
(-8,279)
(-33,239)
(-8,887)
T o tal.............................................................................................
1,473,557
1,507,326
1,541,510
1,642,484
1,739,307
1,836,726
1,946,565
On-budget................................................................................
Off-budget................................................................................
(1,204,431)
(269,126)
(1,222,406)
(284,919)
(1,241,972)
(299,538)
(1,332,108)
(310,376)
(1,416,120)
(323,187)
(1,497,307)
(339,420)
(1,593,129)
(353,436)
* $500 thousand or less.
233
17. CURRENT SERVICES ESTIMATES
TABLE 17-11.
CURRENT SERVICES OUTLAYS BY FUNCTION AND PROGRAM
(In millions of dollars)
estimate
1993
actual
1994
1995
1996
1997
1998
1999
050 National defense:
051 Department of Defense—Military.............................................................
278,561
266,507
260,443
264,883
271,885
280,398
289,513
053 Atomic energy defense activities.............................................................
11,017
11,184
11,020
11,385
11,789
12,116
12,465
Major missions and programs
054 Defense-related activities .........................................................................
1,508
1,280
1,145
1,191
1,193
1,229
1,278
Total, National defense..............................................................................
291,086
278,970
272,607
277,460
284,867
293,744
303,257
150 International affairs:
151 International development and humanitarian assistance:
Agency for International Development............................................................
Assistance for New Independent States of Former Soviet Union..................
Multilateral development banks (MDB’s) ........................................................
Food aid .........................................................................................................
Refugee programs..........................................................................................
Voluntary contributions to international organizations....................................
Peace Corps...................................................................................................
Other programs...............................................................................................
Credit liquidating accounts.............................................................................
Offsetting' receipts...........................................................................................
2,971
48
1,165
1,481
672
382
212
477
-1,057
-939
2,692
635
1,354
2,098
686
370
226
608
-585
-710
2,742
1,028
1,544
1,523
745
385
228
707
-521
-618
2,804
1,571
1,700
1,563
756
295
237
566
-371
-549
2,897
1,689
1,860
1,611
780
325
246
529
-297
-516
3,002
1,629
1,896
1,661
804
305
256
523
-251
-472
3,072
1,679
1,777
1,713
829
314
266
527
-223
-432
Subtotal, International development and humanitarian assistance............
5,413
7,374
7,763
8,572
9,123
9,352
9,523
152 International security assistance:
Non-proliferation and disarmament fund ........................................................
Foreign military financing grants and loans ...................................................
Economic support fund ..................................................................................
Other programs...............................................................................................
Foreign military financing repayment..............................................................
Foreign military financing liquidating account.................................................
4,580
3,231
83
-469
206
2
4,192
2,869
156
-574
186
5
4,356
2,529
117
-628
179
8
3,456
2,465
114
-726
-228
10
3,513
2,452
113
-731
-503
11
3,569
2,471
113
-632
-502
11
3,674
2,509
115
-606
-485
Subtotal, International security assistance.................................................
7,631
6,830
6,558
5,089
4,854
5,030
5,219
153 Conduct of foreign affairs:
State Department salaries and expenses ......................................................
Foreign buildings ............................................................................................
Contributions to International Organizations (UN)..........................................
Contributions to International Peacekeeping (U N ).........................................
Other programs...............................................................................................
2,287
484
915
458
181
2,106
491
861
403
212
2,185
496
886
420
204
2,270
513
912
425
213
2,347
516
940
439
205
2,445
514
969
452
212
2,548
522
999
466
221
Subtotal, Conduct of foreign affairs............................................................
4,325
4,073
4,190
4,333
4,446
4,593
4,756
154 Foreign information and exchange activities:
U.S. Information Agency................................................................................
Board for International Broadcasting .............................................................
Other programs...............................................................................................
1,088
246
18
1,169
227
17
1,117
216
18
1,210
223
19
1,258
230
19
1,305
237
19
1,353
244
20
Subtotal, Foreign information and exchange activities..............................
1,352
1,413
1,351
1,452
1,507
1,561
1,617
155 International financial programs:
Export-lmport Bank.........................................................................................
International monetary fund ...........................................................................
Exchange stabilization fund ...........................................................................
Foreign military sales trust fund (net)............................................................
Special defense acquisition fund...................................................................
Credit liquidating account (Exim)...................................................................
Offsetting receipts...........................................................................................
211
336
-1,379
-78
71
-958
-100
445
13
-925
70
-75
-677
-102
545
19
-950
110
-146
-537
-104
645
19
-1,000
100
-105
-458
-106
734
19
-1,000
-60
-98
-347
-108
775
19
-1,000
-70
-75
-217
-110
809
19
-965
-90
-19
-178
-112
Subtotal, International financial programs..................................................
-1,896
-1,251
-1,063
-905
-860
-679
-537
156 International cooperation:
Multilateral development banks (MDB’s) ........................................................
Other programs...............................................................................................
54
Subtotal, International cooperation.............................................................
54
2
_*
18,854
18,543
19,070
Total, International affairs..........................................................................
16,826
18,439
2
_*
_*
19,857
20,578
234
ANALYTICAL PERSPECTIVES
TABLE 17-11. CURRENT SERVICES OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Mayor missions and programs
1993
actual
estimate
1994
1995
1996
1997
1998
1999
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.....................................................
2,441
1,481
16
2,796
1,653
2,805
1,279
2,981
1,692
3,179
1,744
3,239
1,798
3,340
1,854
Subtotal, General science and basic research.........................
3,938
4,448
4,084
4,673
4,923
5,037
5,194
252 Space flight, research, and supporting activities:
Research and program development............................................
Space flight control and data communications.............................
Construction of facilities................................................................
Research and development...........................................................
Other..............................................................................................
1,309
5,025
492
6,251
15
1,291
4,764
456
6,322
15
1,360
4,971
444
6,561
16
1,451
5,219
370
6,903
17
1,506
5,294
331
7,092
18
1,575
5,423
335
7,247
18
1,651
5,580
348
7,457
19
Subtotal, Space flight, research, and supporting activities........
13,092
12,848
13,353
13,959
14,240
14,599
15,057
Total, General science, space, and technology........................
17,030
17,296
17,437
18,632
19,163
19,636
20,251
3,382
-255
409
1,486
-350
Credit liquidating account (REA)..................................
264
-437
74
117
5
-1,409
3,851
-199
-356
773
169
177
269
-391
90
157
4
-574
3,962
-189
-350
500
145
272
265
-551
36
174
4
-451
4,125
-196
-358
533
180
308
273
-585
35
134
4
-693
4,164
-198
-339
601
225
307
272
-591
35
142
4
-824
4,296
-169
-389
649
284
316
270
-592
35
152
4
-904
4,432
-131
-402
375
345
326
278
-600
35
164
5
-923
Subtotal, Energy supply...........................................
3,286
3,970
3,817
3,762
3,798
3,952
3,903
272 Energy conservation...............................................
521
586
662
697
719
742
766
274 Emergency energy preparedness .........................
336
279
237
248
256
265
274
276 Energy information, policy, and regulation:
Nuclear Regulatory Commission (NRC).......................
Other energy programs................................................
-19
195
8
381
18
369
19
387
19
400
21
418
22
435
176
390
387
405
420
438
457
Total, Energy............................................................
4,319
5,225
5,103
5,112
5,192
5,397
5,400
300 Natural resources and environment:
301 Water resources:
Corps of Engineers ......................................................
Bureau of Reclamation.................................................
Other............................................................................
Offsetting receipts.........................................................
3,522
912
287
-464
4,560
1,039
401
-472
4,322
946
351
-474
4,434
1,003
385
-486
4,642
1,028
393
-538
4,746
1,063
407
-514
4,883
1,069
422
-466
Subtotal, Water resources.......................................
4,258
5,528
5,145
5,337
5,525
5,703
5,908
302 Conservation and land management:
Forest Service...............................................................
Management of public lands (BLM).............................
Federal land acquisition...............................................
Mining reclamation and enforcement...........................
Conservation reserve program.....................................
Other conservation of agricultural lands......................
Other............................................................................
Offsetting receipts.........................................................
2,897
857
28
304
1,690
854
367
-2,218
2,853
943
23
262
1,819
894
367
-2,379
2,936
1,012
13
320
1,828
992
376
-2,351
3,033
1,035
12
332
1,806
1,181
394
-2,429
3,126
1,073
13
370
1,741
1,109
410
-2,492
3,197
1,117
13
333
1,061
1,118
425
-2,511
3,349
1,163
14
344
622
1,156
442
-2,553
Subtotal, Conservation and land management........
4,777
4,783
5,126
5,364
5,349
4,753
4,537
303 Recreational resources:
Federal land acquisition...............................................
305
263
260
259
263
267
276
270 Energy:
271 Energy supply:
Research and development...........................................................
Naval petroleum reserves..............................................................
Federal power marketing ...............................................................
Tennessee Valley Authority ...........................................................
Uranium enrichment......................................................................
Uranium enrichment decontamination and decommissioning fund
Nuclear waste program.................................................................
Nuclear waste fund receipts ..........................................................
Subsidies for nonconventional fuel production..............................
Rural electric and telephone lines.................................................
Subtotal, Energy information, policy, and regulation
235
17. CURRENT SERVICES ESTIMATES
TABLE 17-11. CURRENT SERVICES OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
1993
actual
estimate
1994
1995
1996
1997
1998
1999
Urban park and historic preservation funds...................................................
Operation of recreational resources ..............................................................
Offsetting receipts...........................................................................................
43
2,475
-204
50
2,565
-223
47
2,725
-261
45
2,857
-276
47
2,988
-285
49
3,084
-293
51
3,207
-301
Subtotal, Recreational resources................................................................
2,620
2,655
2,772
2,885
3,013
3,108
3,233
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....................................................................
2,516
1,418
108
2,130
80
-191
2,714
1,613
113
2,408
78
-236
2,767
1,598
117
2,461
78
-248
2,825
1,604
123
2,510
80
-224
2,885
1,616
126
2,629
82
-200
2,984
1,628
129
2,702
85
-176
3,092
1,647
133
2,584
87
-151
Subtotal, Pollution control and abatement.................................................
6,061
6,690
6,773
6,918
7,138
7,352
7,392
306 Other natural resources:
Program activities...........................................................................................
Offsetting receipts...........................................................................................
2,541
-19
2,618
-18
2,738
-19
2,770
-19
3,023
-19
3,164
-19
3,291
-19
Subtotal, Other natural resources ..............................................................
2,522
2,599
2,719
2,751
3,005
3,145
3,273
Total, Natural resources and environment.................................................
20,239
22,255
22,536
23,255
24,029
24,060
24,343
350 Agriculture:
351 Farm income stabilization:
Commodity Credit Corporation.......................................................................
Crop insurance...............................................................................................
Agricultural credit insurance...........................................................................
Emergency food assistance program .............................................................
Other..............................................................................................................
Credit liquidating accounts (ACIF & FAC)......................................................
16,047
145
372
163
1,120
-48
12,118
726
489
124
953
-231
9,136
556
490
123
993
-593
9,322
408
510
127
979
-800
9,689
440
528
131
1,021
-1,050
9,813
440
548
135
1,132
-947
9,796
440
569
139
1,171
-859
Subtotal, Farm income stabilization ...........................................................
17,799
14,179
10,705
10,546
10,760
11,122
11,257
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...........................................................................................
1,133
404
204
489
147
396
-130
1,174
426
176
448
139
477
-117
1,236
442
193
474
141
522
-114
1,248
455
195
488
152
531
-113
1,404
470
202
509
158
558
-110
1,290
484
207
525
165
576
-109
1,331
500
212
541
173
598
-109
Subtotal, Agricultural research and services..............................................
2,643
2,723
2,894
2,957
3,192
3,139
3,245
Total, Agriculture........................................................................................
20,443
16,902
13,599
13,503
13,951
14,261
14,502
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.............................................................................
-4
319
921
-1
319
-2
-1
1,107
2
-623
-1
183
1,118
-6
-1,311
-1
192
1,163
-6
-1,918
*
200
1,209
-6
-3,187
*
209
1,260
-6
-3,925
219
1,302
-7
-4,487
Subtotal, Mortgage credit...........................................................................
1,554
483
-17
-571
-1,784
-2,462
-2,972
372 Postal service:
Payments to the Postal Service fund (On-budget)........................................
Postal service (Off-budget).............................................................................
161
1,441
130
1,748
132
3,259
134
242
137
-534
140
-1,079
143
-1,458
Subtotal, Postal service .............................................................................
1,602
1,879
3,391
376
-397
-939
-1,315
373 Deposit insurance:
Resolution Trust Corporation Fund.................................................................
Bank Insurance Fund.....................................................................................
FSLIC Resolution Fund..................................................................................
Savings Association Insurance Fund..............................................................
National Credit Union Administration..............................................................
Other mandatory.............................................................................................
-19,183
-9,834
2,362
-943
-372
-18
3,522
-6,833
1,367
-1,065
-305
-4
-5,057
-5,578
988
-1,119
-356
-9
-6,963
-5,315
108
1,292
-378
-14
-3,144
-2,748
-267
424
-398
-11
-2,647
-1,586
-281
79
-428
-11
-1,723
-870
12
-212
-463
-6
236
ANALYTICAL PERSPECTIVES
TABLE 17-11. CURRENT SERVICES OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
estimate
1993
actual
1994
1995
1996
1997
1998
1999
Discretionary...................................................................................................
30
33
36
37
39
41
43
Subtotal, Deposit insurance.......................................................................
-27,957
-3,285
-11,094
-11,233
-6,105
-4,833
-3,218
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.............................................................................
701
267
392
16
306
335
60
779
400
325
250
248
438
-131
668
442
288
250
236
531
-104
673
549
296
260
248
575
-13
697
597
320
270
258
617
-35
721
629
334
280
272
653
-59
747
631
349
290
286
686
-138
Subtotal, Other advancement of commerce ..............................................
2,077
2,310
2,311
2,587
2,724
2,830
2,852
Total, Commerce and housing credit.........................................................
-22,725
1,387
-5,409
-8,840
-5,562
-5,404
-4,654
On-budget ..............................................................................................
Off-budget.......................................................................... ...................
(-24,166)
(1,441)
(-362)
(1.748)
(-8,668)
(3,259)
(-9,082)
(242)
(-5,028)
(-534)
H .325)
(-1,079)
(-3,196)
(-1,458)
400 Transportation:
401 Ground transportation:
Highways.........................................................................................................
Highway safety...............................................................................................
Mass transit....................................................................................................
Railroads.........................................................................................................
Regulation (IC C ).............................................................................................
Offsetting receipts...........................................................................................
16,608
316
3,510
818
41
-42
18,205
358
3,771
1,068
45
-44
19,159
374
3,966
1,142
47
-45
20,150
390
4,301
1,085
49
-6
20,865
411
4,407
1,097
51
-6
21,437
414
4,819
1,132
53
-6
22,108
427
4,656
1,169
56
-6
Subtotal, Ground transportation.................................................................
21,251
23,404
24,643
25,968
26,825
27,848
28,409
402 Air transportation:
Airports and airways (FAA)............................................................................
Aeronautical research and technology...........................................................
Payments to air carriers.................................................................................
8,800
1,212
37
8,728
1,353
37
8,843
1,458
34
9,152
1,531
35
9,489
1,700
36
9,830
1,764
37
10,180
1,833
38
Subtotal, Air transportation ........................................................................
10,049
10,118
10,335
10,718
11,225
11,631
12,051
403 Water transportation:
Marine safety and transportation...................................................................
Ocean shipping...............................................................................................
Panama Canal Commission...........................................................................
Offsetting receipts...........................................................................................
3,168
356
-23
-78
3,551
324
-5
-87
3,294
365
-7
-99
3,693
361
-8
-102
3,997
324
-*
-103
4,077
202
4,239
179
-104
-104
Subtotal, Water transportation...................................................................
3,423
3,783
3,552
3,943
4,218
4,175
4,313
407 Other transportation:
Miscellaneous programs.................................................................................
Offsetting receipts...........................................................................................
306
-24
353
-36
370
-36
393
-37
398
-38
412
-38
428
-39
Subtotal, Other transportation....................................................................
281
317
334
356
360
374
389
Total, Transportation..................................................................................
35,004
37,623
38,864
40,985
42,629
44,029
45,162
450 Community and regional development:
451 Community development:
Community development block grants............................................................
Pennsylvania Avenue Development Corporation...........................................
Other ...............................................................................................................
Credit liquidating accounts.............................................................................
3,198
82
437
-37
3,746
185
410
-30
4,141
215
452
-27
4,641
165
474
-81
4,890
16
479
-128
4,719
16
462
-133
4,848
17
481
-121
Subtotal, Community development.............................................................
3,681
4,311
4,780
5,199
5,257
5,065
5,225
390
157
1,471
150
143
572
293
1,504
154
139
694
338
1,584
191
169
772
403
1,580
226
147
846
419
1,631
204
146
906
445
1,666
241
147
982
389
1,708
275
151
588
292
119
106
72
78
72
452 Area and regional development:
Rural development..........................................................................................
Economic development assistance.................................................................
Indian programs..............................................................................................
Appalachian Regional Commission ................................................................
Tennessee Valley Authority ...........................................................................
Coastal enerav imoact fund
.........................................................
Credit liquidating accounts.............................................................................
_*
237
17. CURRENT SERVICES ESTIMATES
TABLE 17-11. CURRENT SERVICES OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
1993
actual
estimate
1994
1995
1996
1997
1998
1999
Offsetting receipts...........................................................................................
-455
-412
-389
-347
-333
-322
-322
Subtotal, Area and regional development..................................................
2,443
2,542
2,705
2,887
2,984
3,162
3,254
453 Disaster relief and insurance:
Small business disaster loans .......................................................................
Disaster relief..................................................................................................
National flood insurance fund........................................................................
Other ..............................................................................................................
Credit liquidating accounts.............................................................................
453
2,276
475
187
-465
391
2,024
104
220
-317
236
1,449
-13
187
-244
180
567
-26
176
-267
186
443
-35
173
-233
191
321
-45
179
-197
197
331
-57
186
-167
Subtotal, Disaster relief and insurance......................................................
2,927
2,421
1,615
630
533
449
491
Total, Community and regional development ............................................
9,051
9,274
9,100
8,716
8,775
8,676
8,971
500 Education, training, employment, and social services:
501 Elementary, secondary, and vocational education:
Education reform ............................................................................................
School improvement programs ......................................................................
Education for the disadvantaged...................................................................
Special education ...........................................................................................
Impact a id ......................................................................................................
Vocational and adult education......................................................................
Indian education programs.............................................................................
Other..............................................................................................................
2,017
6,615
2,564
432
1,190
505
157
19
1,645
6,900
3,604
983
1,317
502
282
128
1,428
6,873
3,298
914
1,383
541
262
159
1,405
7,108
3,258
946
1,635
576
262
165
1,455
7,320
3,286
880
1,580
627
251
169
1,500
7,545
3,388
893
1,628
650
269
175
1,546
7,779
3,493
921
1,678
673
277
Subtotal, Elementary, secondary, and vocational education......................
13,481
15,252
14,826
15,348
15,574
16,042
16,542
502 Higher education:
Student financial assistance...........................................................................
Family education loan program .....................................................................
Higher education.............................................................................................
Federal direct loan program...........................................................................
Other ..............................................................................................................
Credit liquidating account (Family education loan program) .........................
7,678
2,228
1,042
10
322
3,203
7,421
2,370
881
154
302
-552
7,416
1,912
856
474
273
882
7,612
1,433
914
849
291
-2,029
7,834
1,180
945
1,057
300
-595
8,062
1,114
974
1,213
304
-547
8,283
1,058
1,005
1,511
315
-578
Subtotal, Higher education.........................................................................
14,483
10,575
11,812
9,070
10,721
11,121
11,595
503 Research and general education a id s .....................................................
2,040
2,219
2,244
2,290
2,343
2,428
2,515
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..............................................................................................................
4,241
77
389
736
1,180
76
4,536
78
386
860
1,196
81
4,820
91
411
1,031
1,273
91
5,164
90
424
1,005
1,311
98
5,307
69
436
996
1,352
102
5,476
73
450
995
1,395
107
5,621
68
464
987
1,439
111
Subtotal, Training and employment............................................................
6,700
7,136
7,718
8,093
8,262
8,495
8,690
505 Other labor services .................................................................................
948
945
974
1,017
1,062
1,108
1,157
208
440
131
3,240
507
2,476
3,362
4,237
889
244
16
544
209
3,255
497
2,414
3,874
4,374
915
632
236
2,835
503
2,489
4,174
4,562
944
723
252
2,800
518
2,568
4,559
4,716
974
733
267
2,800
534
2,654
4,976
4,872
1,004
16
17
17
18
506 Social services:
National service initiative................................................................................
Family support and preservation ...................................................................
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..................................................................................
Interim assistance to States for legalization...................................................
Other social services......................................................................................
2,785
423
1,984
2,636
3,432
567
318
6
196
48
2,877
475
2,397
3,000
4,135
817
699
16
Subtotal, Social services............................................................................
12,360
14,660
15,542
16,097
16,392
17,127
17,858
Total, Education, training, employment, and social services.....................
50,012
50,786
53,117
51,916
54,354
56,321
58,357
550 Health:
551 Health care services:
Medicaid grants..............................................................................................
75,774
87,156
96,388
108,191
121,488
136,338
152,235
238
ANALYTICAL PERSPECTIVES
TABLE 17-11. CURRENT SERVICES OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In minions of dollars)
Major missions and programs
estimate
1993
actual
1994
1995
1996
1997
1998
1999
Health insurance earned income credit..........................................................
Federal employees’ health benefits (FEHB)...................................................
Coal miners retirees health benefits...............................................................
Indian health...................................................................................................
Substance abuse and mental health services...............................................
Other health care services.............................................................................
650
2,879
161
1,742
1,994
3,659
373
2,918
239
1,949
2,089
4,268
3,519
236
2,084
2,193
4,736
4,047
233
2,042
2,241
4,998
4,115
229
2,126
2,310
5,219
4,828
226
2,204
2,383
5,441
5,216
222
2,285
2,457
5,611
Subtotal, Health care services...................................................................
86,860
98,991
109,155
121,751
135,488
151,419
168,026
9,543
10,757
67
372
104
298
11,343
12,018
12,424
12,821
335
672
244
10,261
124
353
342
256
367
380
371
370
317
332
345
358
Subtotal, Health research and training...... ................................................
10,794
11,336
11,598
12,027
12,730
13,140
13,548
554 Consumer and occupational health and safety:
Food safety and inspection............................................................................
Other consumer safety...................................................................................
Occupational safety and health .....................................................................
506
775
480
495
946
504
540
943
524
569
984
545
1,029
1,026
568
1,115
1,070
592
1,168
1,116
617
Subtotal, Consumer and occupational health and safety..........................
1,762
1,945
2,007
2,098
2,623
2,777
2,901
Total, Health...............................................................................................
99,415
112,272
122,760
135,877
150,840
167,337
184,476
570 Medicare:
571 Medicare:
Hospital insurance (H I)...................................................................................
Supplementary medical insurance (SM I)........................................................
Medicare premiums and collections ...............................................................
91,604
54,254
-15,306
102,892
58,490
-17,581
112,280
66,214
-20,056
123,448
73,820
-19,914
135,335
82,067
-21,348
147,831
91,291
-23,859
161,741
101,942
-25,372
Total, Medicare...........................................................................................
130,552
143,801
158,438
177,354
196,054
215,263
238,311
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...............................................................................................................
4,274
1,416
-1,508
165
4,517
1,398
-909
194
4,547
1,325
-721
192
4,607
1,286
-669
201
4,846
1,249
-603
210
4,892
1,210
-531
218
4,964
1,168
-459
229
Subtotal, General retirement and disability insurance (excluding social se
WUIItJ/ ....................................................................................................
curitv) ......................................................................................................
4,347
5,199
5,343
5,426
5,702
5,789
5,902
602 Federal employee retirement and disability:
Civilian retirement and disability programs.....................................................
Military retirement...........................................................................................
Federal employees workers’ compensation (FECA)......................................
Federal employees life insurance fund...........................................................
35,210
25,708
205
-1,076
36,615
26,513
215
-1,086
38,092
27,200
228
-1,100
39,715
28,322
263
-1,119
41,878
29,560
285
-1,096
43,886
30,891
310
-1,118
46,008
33,080
318
-1,148
Subtotal Federal employee retirement and disability................................
60,047
62,257
64,419
67,180
70,628
73,968
78,257
603 Unemployment compensation .................................................................
37,802
29,210
25,619
26,189
26,605
26,754
27,979
17,015
2,604
91
71
212
1
116
18,086
2,698
107
68
876
15
268
8
68
30
518
19,393
2,737
185
104
1,204
53
239
10
99
146
526
19,820
2,783
249
119
1,234
65
270
8
101
314
564
20,920
2,856
315
122
1,298
79
278
8
84
462
603
21,920
2,940
384
125
1,361
92
286
6
52
599
635
23,349
3,030
411
129
1,378
106
295
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...........................................................................
604 Housing assistance:
Subsidized housing including section 8 ..........................................................
Public housing ................................................................................................
Supportive housing program..........................................................................
Emergency shelter grants ..............................................................................
Home investment partnerships program.........................................................
Shelter plus c are............................................................................................
Community partnerships against crime ......................... ................................
Youthbuild program
..........................................................
HOPE grants...................................................................................................
Revitalization of distressed public housing.....................................................
Rural housing assistance...............................................................................
35
415
25
741
658
239
17. CURRENT SERVICES ESTIMATES
TABLE 17-11. CURRENT SERVICES OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Major missions and programs
1993
actual
estimate
1994
1995
1996
1997
1998
1999
Other housing assistance..............................................................................
987
1,107
1,062
1,114
1,166
1,213
1,259
Subtotal, Housing assistance....................................................................
21,548
23,848
25,756
26,641
28,190
29,614
31,381
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...............................................................................
23,577
1,025
6,612
2,846
1,087
25,547
1,078
7,258
3,222
1,090
25,177
1,141
7,649
3,296
1,097
26,102
1,143
8,170
3,395
1,055
27,178
1,143
8,742
3,500
1,076
28,175
1,143
9,338
3,608
1,099
29,175
1,143
9,982
3,720
1,122
Subtotal, Food and nutrition assistance...................................................
35,148
38,195
38,361
39,865
41,640
43,364
45,142
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.............................................................................................................
SSI offsetting receipts...................................................................................
22,642
15,628
8,781
360
1,068
411
211
-735
26,706
16,413
10,036
378
2,076
980
266
-922
28,015
16,921
15,797
374
1,434
1,036
165
-1,047
28,926
17,486
18,932
391
1,448
991
172
-1,147
31,378
18,172
21,456
411
1,500
951
188
-1,350
34,965
18,857
22,368
430
1,546
973
197
-1,477
38,613
19,683
23,167
447
1,594
1,002
206
-1,609
Subtotal, Other income security...............................................................
48,366
55,933
62,695
67,200
72,707
77,859
83,103
Total, Income security...............................................................................
207,257
214,642
222,193
232,500
245,472
257,347
271,764
650 Social Security:
651 Social security:
Old-age and survivors insurance (OASI)......................................................
Disability insurance (DI) ............................................................................ ...
Social security interfunds.............................................................................
269,960
34,641
-17
282,394
38,075
-10
295,824
41,840
-16
311,253
45,630
-16
323,280
49,759
-16
339,180
54,109
-16
355,995
58,688
-16
Total, Social Security................................................................................
304,585
320,460
337,648
356,866
373,023
393,273
414,667
On-budget............................................................................................
Off-budget ............................................................................................
(6,236)
(298,349)
(5,796)
(314,663)
(6,639)
(331,009)
(7,004)
(349,862)
(7,447)
(365,576)
(7,910)
(385,362)
(8,404)
(406,262)
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 .........................................................................
13,376
3,529
99
1,127
21
-395
15,035
3,661
109
1,205
110
-319
14,522
3,344
111
1,238
50
-306
13,806
3,062
114
1,254
11
-288
15,391
3,305
118
1,280
20
-274
15,851
3,296
121
1,326
23
-261
16,335
3,730
124
1,368
-3
-246
Subtotal, Income security for veterans.....................................................
17,758
19,801
18,958
17,959
19,839
20,356
21,310
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 ............................................................................................................
854
61
-89
1,198
35
-63
1,300
43
-146
*
1,405
20
-141
1
1,511
19
-130
1
1,603
16
-137
1
1,659
14
-123
1
Subtotal, Veterans education, training, and rehabilitation.......................
826
1,170
1,196
1,285
1,401
1,484
1,552
703 Hospital and medical care for veterans:
Medical care and hospital services ..............................................................
Construction..................................................................................................
Third-party medical recoveries.....................................................................
Fees and other charges for medical services..............................................
14,613
617
-60
-357
15,629
699
-60
-420
16,346
656
-62
-503
17,202
613
-56
-587
17,773
599
-58
-644
18,542
606
-61
-701
19,345
621
370
-709
Subtotal, Hospital and medical care for veterans....................................
14,812
15,849
16,438
17,172
17,671
18,385
p 19,626
704 Veterans housing:
Loan guaranty...............................................................................................
Direct loans...................................................................................................
Guaranty and indemnity...............................................................................
207
2
855
96
4
-57
93
4
422
98
5
400
97
5
341
97
4
318
98
4
486
240
ANALYTICAL PERSPECTIVES
TABLE 17-11. CURRENT SERVICES OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In millions of dollars)
Major missions and programs
1993
actual
estimate
1994
1995
1996
1997
1998
1999
Credit liquidating accounts.............................................................................
235
169
123
69
54
21
13
Subtotal, Veterans housing........................................................................
1,299
212
642
571
497
440
601
705 Other veterans benefits and services:
Cemeteries, administration of veterans benefits, and other..........................
Non-VA support programs..............................................................................
937
88
1,009
95
975
101
1,026
94
1,071
98
1,119
101
1,169
103
Subtotal, Other veterans benefits and services.........................................
1,025
1,104
1,077
1,120
1,170
1,220
1,272
Total, Veterans benefits and services........................................................
35,720
38,136
38,311
38,108
40,578
41,885
44,360
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 IN S ).........................................
Customs and INS fees...................................................................................
Protection activities (Secret Service)..............................................................
Other enforcement..........................................................................................
3,248
376
3,199
-1,276
511
615
3,277
371
3,364
-1,423
500
755
3,360
388
3,575
-1,669
579
686
3,599
405
3,719
-1,738
612
700
3,726
423
3,881
-1,765
633
747
3,855
442
3,993
-1,792
660
779
4,003
462
4,120
-1,819
692
812
Subtotal, Federal law enforcement activities .............................................
6,674
6,843
6,918
7,297
7,644
7,936
8,271
752 Federal litigative and judicial activities:
Civil and criminal prosecution and representation.........................................
Federal judicial activities ................................................................................
Representation of indigents in civil cases......................................................
Other ...............................................................................................................
2,285
2,649
389
13
2,855
2,889
393
15
2,661
2,908
410
9
2,734
3,062
422
13
2,838
3,189
435
14
2,934
3,322
448
15
3,035
3,461
462
15
Subtotal, Federal litigative and judicial activities .......................................
5,336
6,152
5,988
6,230
6,476
6,719
6,974
753 Federal correctional activities ..................................................................
2,124
2,482
2,597
2,849
2,710
2,738
2,735
754 Criminal justice assistance......................................................................
822
1,002
843
1,052
932
951
980
Total, Administration of justice ...................................................................
14,955
16,480
16,345
17,428
17,763
18,345
18,960
800 General government:
801 Legislative functions.................................................................................
2,124
2,168
2,202
2,280
2,378
2,481
2,588
802 Executive direction and management.....................................................
197
252
246
270
281
292
304
803 Central fiscal operations:
Collection of taxes..........................................................................................
Other fiscal operations ...................................................................................
6,879
96
7,316
262
7,638
200
7,964
368
8,316
334
8,685
309
9,112
398
Subtotal, Central fiscal operations..............................................................
6,976
7,578
7,838
8,332
8,650
8,995
9,510
804 General property and records management:
Real property activities...................................................................................
Property and other receipts ...........................................................................
Records management....................................................................................
Other...............................................................................................................
573
-11
269
175
884
-43
282
255
468
-52
193
211
657
-52
201
218
314
-52
191
227
-159
-52
197
228
-393
-52
202
235
Subtotal, General property and records management..............................
1,005
1,378
820
1,025
681
214
-8
805 Central personnel management ...............................................................
182
162
179
191
200
209
218
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 A c t................
Payments to States and counties from Federal land management activities .
Payments in lieu of taxes ..............................................................................
Payments to territories and Puerto Rico........................................................
Other ...............................................................................................................
539
309
463
93
103
223
206
676
285
531
102
105
230
229
698
279
509
101
107
236
234
718
272
536
76
110
244
241
741
265
562
77
114
253
248
765
261
568
78
117
259
256
789
256
584
78
121
270
263
Subtotal, General purpose fiscal assistance..............................................
1,935
2,158
2,164
2,198
2,260
2,303
2,362
808 Other general government:
Compact of free association..........................................................................
Territories................................................................................................... .
160
60
324
85
173
100
178
108
153
112
148
115
151
118
241
17. CURRENT SERVICES ESTIMATES
TABLE 17-11. CURRENT SERVICES OUTLAYS BY FUNCTION AND PROGRAM-Continued
(In m
illions of dollars)
Major missions and programs
1993
actual
estimate
1994
1995
1996
1997
1998
Treasury claims........................................................................
Civil liberties public education fund..........................................
Presidential election campaign fund.........................................
Other.........................................................................................
519
500
6
84
591
100
*
247
611
523
523
523
518
24
183
103
4
108
113
29
119
Subtotal, Other general government...................................
1,329
1,348
1,007
1,095
901
809 Deductions for offsetting receipts....................................
-739
-691
-700
-710
-710
-710
-710
Total, General government..................................................
13,009
14,352
13,755
14,682
14,640
14,683
15,199
900 Net interest:
901 Interest on the public d e b t................................................
292,502
298,303
311,102
325,602
341,459
359,503
378,021
902 Interest received by on-budget trust funds:
Civil Service retirement and disability.......................................
Military retirement.....................................................................
Medicare ..................................................................................
Other on-budget trust fund interest.........................................
-25,155
-9,831
-12,468
-8,082
-26,197
-10,252
-12,724
-7,590
-27,071
-10,695
-12,337
-7,053
-27,875
-11,100
-11,503
-7,145
-28,562
-11,525
-11,118
-7,289
-29,241
-11,951
-10,402
-7,759
-30,058
-12,379
-9,251
-8,105
Subtotal, Interest received by on-budget trust funds ..........
-55,537
-56,762
-57,156
-57,623
-58,495
-59,354
-59,793
903 Interest received by off-budget trust funds.....................
-26,788
-29,073
-31,6
-34,922
-38,784
-43,151
-48,023
-11,333
2,127
2,328
514
-493
-542
-9,601
2,679
2,328
527
-707
-624
-3,968
-3,840
-8,794
2,899
2,328
786
-1,177
-740
-56
-4,462
-7,645
3,016
2,328
921
-1,922
-805
-64
-3,478
-6,708
3,151
2,328
997
-2,914
-870
-69
-3,344
-5,874
3,297
2,328
1,031
-4,060
-885
-60
-3,209
-5,144
3,440
2,328
1,051
-4,944
-885
-53
-3,122
Subtotal, Other interest........................................................
-11,367
-9,238
-9,215
-7,648
-7,429
-7,433
-7,329
Total, Net interest.................................................................
198,811
203,229
213,062
225,409
236,751
249,566
262,876
On-budget.......................................................................
Off-budget.......................................................................
(225,599)
(-26,;
(232,302)
(-29,073)
(244,731)
(-31,669)
(260,331)
(-34,922)
(275,535)
(-38,784)
(292,717)
(-43,151)
(310,899)
(-48,023)
950 Undistributed offsetting receipts:
951 Employer share, employee retirement (on-budget):
Contributions to military retirement fund..................................
Contributions to HI trust fund...................................................
Postal Service contributions to CSRS.....................................
Other contributions to civilian retirement fund.........................
-13,179
-2,375
-4,785
-7,847
-12,671
-2,448
-5,136
-7,961
-12,249
-2,531
-8,266
-10,498
-3,249
-5,678
-8,704
-10,488
-2,743
-5,925
-9,186
-10,692
-2,874
-6,389
-9,623
-10,881
-3,031
-6,519
-9,970
Subtotal, Employer share, employee retirement (on-budget)
-28,186
-28,217
-28,714
-28,129
-28,342
-29,578
-30,401
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........................
Cash management improvement.............................................
Other........................................................................................
934
952 Employer share, employee retirement (off-budget).........
-6,416
-6,463
-6,756
-7,184
-7,628
-8,279
-8,887
953 Rents and royalties on the Outer Continental Shelf.......
-2,785
-2,708
-2,980
-2,677
-2,725
-2,777
-2,838
-500
-4,300
-4,200
-1,600
-2,000
959 Other undistributed offsetting receipts............................
Total, Undistributed offsetting receipts................................
-37,386
-37,887
-42,750
-42,190
-40,294
-42,634
-42,126
On-budget .......................................................................
Off-budget.......................................................................
(-30,970)
(-6,416)
(-31,425)
(-6,463)
(-35,994)
(-6,756)
(-35,006)
(-7,184)
(-32,666)
(-7,628)
(-34,355)
(-8,279)
(-33,239)
(-8,887)
T o ta l....................................................................................
1,408,205
1,483,643
1,525,572
1,605,315
1,701,297
1,795,643
1,904,651
On-budget........................................................................
Off-budget........................................................................
(1.141,618)
(266,587)
(1,202,767)
(1,229,728)
(295,844)
(1,297,317)
(307,998)
(1,382,667)
(318,630)
(1,462,789)
(332,853)
(1,556,756)
(347,894)
* $500 thousand or less.
OTHER TECHNICAL PRESENTATIONS
18. TRUST FUNDS AND FEDERAL FUNDS
The budget consists of two major groups of funds:
Federal funds and trust funds. This section presents
summary information about the transactions of each
fund group and of the major trust funds. It also dis
cusses the relationship between the trust funds surplus
and the Federal deficit, and the meaning of the large
and growing trust funds balance.
Federal Funds Group.—This group comprises the
larger part of the budget. It 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 to carry out the general
purposes of Government rather than being restricted
by law to a specific program. It consists of all collections
not earmarked by law to finance other funds, including
virtually all income taxes and many excise taxes, and
all expenditures financed by these collections and by
general Treasury borrowing.
The Federal funds group also includes special funds
and revolving funds. Special funds are financed by ear
marked collections. Where the law requires that Fed
eral fund collections from a specified source be ear
marked to finance a particular program, such as the
license fees deposited into the land and water conserva
tion fund, the collections and associated disbursements
are recorded in special fund receipt and expenditure
accounts. As a general rule, special fund collections
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 spend
ing. The proceeds are recorded as offsets (reductions)
to spending within the fund that makes the expendi
ture. These collections generally are available automati
cally for obligation. There are two classes of revolving
funds. Public enterprise funds, such as the Postal Serv
ice, conduct business-like operations mainly with the
public. Intragovemmental funds, such as the Federal
Buildings Fund, conduct business-like operations main
ly within and between Government agencies.
Trust Funds Group.—This group consists primarily
of funds that are designated by law as trust funds,
including trust revolving funds. They are usually fi
nanced by earmarked collections. The larger trust funds
finance social insurance and other payments for individ
uals, such as social security, medicare, Federal em
ployee 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. Whether or not a particular fund is
designated as a trust fund is, in many cases, arbitrary.
Congress has not followed a systematic rule in designat
ing trust funds.
The Federal budget meaning of the term “trust” dif
fers significantly from its private sector usage. In the
private sector, the beneficiary usually owns the trust’s
assets, which are managed by a trustee acting as the
fiduciary. The trustee is required to follow the stipula
tions of the trust, which he cannot change. In contrast,
the Federal Government owns the assets of most Fed
eral trust funds, and it can raise or lower future trust
fund collections and payments by changing existing law.
A trust fund must use its income for the purposes
designated by law. Some, such as the foreign military
sales trust fund, spend their income almost as quickly
as it is collected. Others, such as the Social Secxirity
and the Federal employee retirement trust funds, cur
rently spend considerably less than the income they
receive each year. A surplus of receipts over outlays
adds to the trust fund’s balances, which are available
to finance future expenditures. The balances are gen
erally invested, by law, in Treasury debt securities. Any
net cash inflow from the public to the trust funds de
creases the Treasury’s need to borrow from the public
in order to finance the Federal funds deficit.
Income and Outgo by Fund Group
Table 18-1 shows income, outgo, and surplus or defi
cit 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 most
interfund collections (receipts by one fund of payments
from a fund in the other fund group). Outgo consists
of payments made to the public and interfund pay
ments.
Two types of transactions are treated differently than
as described above. Income and outgo for a fund group
exclude transactions between funds within the same
fund group. These intrafund transactions constitute
outgo and income for the individual funds that make
and collect the payment. However, since the totals for
each fund group are intended to measure its trans
actions with the public and the other fund group,
intrafund transactions must be subtracted from the
sum of the income and outgo of all funds within the
fund group to calculate the amounts that are shown
in the table.
Income also excludes collections that are offset, by
law, against the outlays of an expenditure account.
These collections offset (reduce) outgo of the receiving
fund group, instead of increasing its income. For exam
ple, the Federal Employees Health Benefits (FEHB)
Fund collects health insurance premiums paid by Fed-
245
246
ANALYTICAL PERSPECTIVES
eral agencies. These are recorded as offsets to outlays
within the FEHB account, thereby reducing net 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 the adjustment to income and
outgo that must be made in order to derive receipts
and outlays as they are reported in the unified budget.
The adjustment is for offsetting receipts, which are of
two types and must be subtracted from both income
and outgo.
Receipts resulting from voluntary business-like trans
actions 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 deriv
ing 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,
and unified budget outlays measure only the amount
of resources allocated by the Government in a nonmarket capacity.
Receipts resulting from transactions between fund
groups also constitute income for a fund group, but
they are offset against interfund payments in the uni
fied budget. In this way, unified budget receipts and
outlays record only the Government’s net transactions
with the public.
decades, growing trust fund surpluses have offset a
major part of the large and growing Federal fund defi
cits. As shown in the bottom of table 18-1, 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 in
crease both the Federal funds deficit and the trust
funds surplus, but in the unified budget the increase
in one is offset by the increase in the other, and the
unified budget deficit is unchanged. If interfund trans
actions are excluded, so that the bottom lines for both
fund groups are on the basis of transactions with the
public, the trust fund surplus becomes a deficit and
the Federal funds deficit becomes much smaller.
In 1993, for example, the trust fund surplus was
$100 billion, and the Federal fund deficit was $355
billion. Both figures include the effects of $215 billion
of net payments from Federal funds to trust funds.
On the basis of transactions with the public, the trust
Contribution to the Federal Deficit
fund group experienced a $115 billion deficit, and the
Much attention has focused recently on the trust fund Federal fund deficit was $140 billion. These are ex
surpluses, the Federal fund deficits, and the contribu pected to converge in 1995 and then diverge in later
tion of each to the unified deficit. Over the past three years as the difference between receipts from the public
TABLE 18-1. RECEIPTS, OUTLAYS, AND SURPLUS OR DEFICIT BY FUND GROUP
(In billions of dollars)
Estimate
1993
actual
1994
1995
1996
1997
1998
1999
717.7
3.9
777.9
3.9
859.4
4.1
901.1
4.2
947.1
4.3
998.5
4.4
1,051.8
4.5
721.6
781.8
863.4
905.3
951.4
1,002.9
1,056.3
482.9
522.3
554.4
587.6
620.6
653.5
686.4
82.3
136.3
85.8
121.5
88.9
120.5
92.5
145.6
98.1
160.4
104.3
168.7
111.1
179.2
Total, trust funds cash income..............................................................
Offsetting receipts...............................................................................................
701.5
-269.6
729.6
-262.4
763.8
-273.4
825.7
-303.7
879.1
-325.4
926.6
-342.6
976.7
-360.1
Total, unified budget receipts ........................................................................
Outlays:
Federal funds cash outgo ..................................................................................
Trust funds cash outgo ......................................................................................
Offsetting receipts...............................................................................................
1,153.5
1,249.1
1,353.8
1,427.3
1,505.1
1,586.9
1,672.9
1,076.3
601.5
-269.6
1,116.2
630.0
-262.4
1,131.1
661.2
-273.4
1,194.0
706.5
-303.7
1,267.9
748.9
-325.4
1,336.8
783.2
-342.6
1,389.4
824.7
-360.1
Total, unified budget outlays..........................................................................
Surplus or deficit (-):
Federal funds......................................................................................................
Trust funds..........................................................................................................
1,408.2
1,483.8
1,518.9
1,596.9
1,691.4
1,777.4
1,854.0
-354.7
100.0
-334.4
99.6
-267.7
102.6
-288.8
119.2
-316.5
130.1
-333.8
143.4
-333.1
152.0
Total, unified surplus/deficit ( - ) ......................................................................
-254.7
-234.8
-165.1
-169.6
-186.4
-190.5
-181.1
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...........................................................................................................
247
18. TRUST FUNDS AND FEDERAL FUNDS
and outlays to the public stabilizes for Federal funds
but grows larger for trust funds. On this basis, there
fore, 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
budget deficit. This is because many interfund pay
ments appropriately allocate the costs of Federal activi
ties to the fund group that incurs and controls the
costs. In principle, these costs should be financed by
each fund group’s income. To the extent they are not,
the deficit ultimately is higher. Including these
interfund payments therefore may provide a more rea
sonable measure of the contribution of each fund group
to the overall deficit.
Payments by Government agencies to the various
Federal employee trust funds for retirement and other
benefits earned by Federal employees fall into this cat
egory. These payments by the Government as an em
ployer 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 pub
lic 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 the unified deficit should be attributed
to the Federal funds group. The interfund payments
made currently for these purposes are a reasonable,
though partial, measure of the amount that could be
attributed to Federal funds. In 1993, interfund pay
ments for military and Federal civlian employee retire
ment alone were $58 billion.
Interest payments on trust fund investments in
Treasury debt are another example of interfund pay
ments that appropriately allocate costs between fund
groups. These are the largest of the interfund pay
ments, comprising about two-fifths of the total. In 1993
trust fund interest income was $82 billion, and it is
expected to grow to $111 billion by 1999. These pay
ments add equally to the trust fund surplus and the
Federal fund deficit. As shown in the top of table 18-2,
in 1994 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 bor
rower and the lender. If permitted by law, the trust
fund surpluses could have been invested outside the
Government and earned interest income from the pub
lic. The Federal funds would have been required to
offset the loss of this source of financing by borrowing
more from the public, which would have increased Fed
eral fund interest outlays to the public. As a result,
both the trust funds surplus and the Federal funds
deficit would have been greater, if 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.
In contrast to these types of interfund payments that
appropriately allocate costs, and thus are useful for
this analysis, Federal law sometimes requires interfund
payments to be made by a fund group that does not
incur or control the costs. Because fund accounting re
flects these legal requirements, some interfund pay
ments do not indicate the ultimate responsibility for
Federal spending and the deficit. Instead, they cause
the impact to be overstated for the fund group making
the payment and understated for the fund group receiv
ing the payment.
The principal payment of this type is the general
fund payment to the Federal Supplementary Medical
Insurance (SMI) Trust Fund. This payment was $44
billion in 1993, and it funded about 80% of SMI expend
itures. 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 sub
sidies that finance the bulk of the trust fund's spending,
and the effect of SMI expenditures on the unified deficit
should be attributed to the trust funds group. Since
the budget records the general fund subsidy as a Fed
eral fund payment and as trust fund income, most of
the impact of the SMI program instead appears as an
addition to the Federal funds deficit.
The trust funds would have a very large surplus even
if they were adjusted for these kinds of transactions.
TABLE 18-2. SURPLUS OR DEFICIT BY FUND GROUP
(In billions of dollars)
Estimate
1993
actual
Surplus or deficit (-) excluding inferfund interest:
Federal funds......................................................................................................
Trust funds.........................................................................................................
Net interfund interest receipts/payments (-):
Federal funds......................................................................................................
Trust funds.........................................................................................................
Surplus or deficit (-) including interfund interest:
Federal funds.....................................................................................................
Trust funds.........................................................................................................
1994
1995
1996
1997
1998
1999
-272.4
17.7
-248.5
13.8
-178.8
13.7
-196.2
26.7
-218.4
32.1
-229.5
39.0
-222.0
40.9
-82.3
82.3
-85.8
85.8
-88.9
88.9
-92.5
92.5
-98.1
98.1
-104.3
104.3
-111.1
111.1
-354.7
100.0
-334.4
99.6
-267.7
102.6
-288.8
119.2
-316.5
130.1
-333.8
143.4
-333.1
152.0
248
ANALYTICAL PERSPECTIVES
Nevertheless, this would not absolve trust fund pro
grams from any responsibility for the unified deficit.
Both Federal fund and trust fund expenditures have
to be financed by the same revenue source—the Amer
ican people. Over the past three decades, total receipts
have been, on average, between 18 and 19 percent of
gross domestic product. If this is construed as the politi
cally acceptable level of total Federal taxes, then total
spending must be kept to the same level to avoid a
deficit. The spending restraint could be applied to Fed
eral fund programs or to trust fund programs. If trust
fund spending were reduced, trust fund receipts could
be reduced by corresponding amounts and Federal fund
receipts could be increased without exceeding the politi
cally acceptable limit on total taxes. This would result
not only in a balanced unified budget, it would also
keep trust fund surpluses at the levels anticipated
under current law and reduce the Federal funds deficit.
In that sense, both fund groups are responsible for the
unified deficit.
Income, Outgo, and Balances of Trust Funds
Table 18-3 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.
The trust funds group is expected to have large and
growing surpluses over the projection period. As a con
sequence, trust fund balances will grow substantially,
TABLE 18-3.
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 ex
penses and to maintain prudent reserves, generally de
fined 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 re
tirement 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
and their employees to make annual payments to the
Federal employees’ retirement trust funds in an amount
equal to the 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
INCOME, OUTGO, AND BALANCES OF TRUST FUNDS GROUP
(In billions of dollars)
Estimate
1993
actual
1994
1995
1996
1997
1998
1999
980.4
1,080.3
1,179.9
1,282.5
1,401.7
1,531.8
1,675.2
452.6
30.3
489.7
32.6
519.0
35.4
550.5
37.1
581.4
39.2
613.8
39.7
644.9
41.5
82.3
136.3
85.8
121.5
88.9
120.5
92.5
145.6
98.1
160.4
104.3
168.7
111.1
179.2
Subtotal, income ........................................................................................
Outgo:
To the public.......................................................................................................
Payments to Federal funds................................................................................
701.5
729.6
763.8
825.7
879.1
926.6
976.7
597.6
3.9
626.1
3.9
657.1
4.1
702.3
4.2
744.6
4.3
778.8
4.4
820.2
4.5
Subtotal, outgo...........................................................................................
Change in fund balance:
Surplus or deficit (-):
Excluding interest...........................................................................................
Interest............................................................................................................
601.5
630.0
661.2
706.5
748.9
783.2
824.7
17.7
82.3
13.8
85.8
13.7
88.9
26.7
92.5
32.1
98.1
39.0
104.3
40.9
111.1
Subtotal, surplus or deficit ( - ) ...................................................................
Adjustments:
Transfers/lapses (net).....................................................................................
Other adjustments..........................................................................................
100.0
99.6
102.6
119.2
130.1
143.4
152.0
Total, change in fund balance.......................................................................
99.9
99.6
102.6
119.2
130.1
143.4
152.0
Balance, end of y e a r..............................................................................................
1,080.3
1,179.9
1,282.5
1,401.7
1,531.8
1,675.2
1,827.2
Total Trust Funds
Balance, start of year .............................................................................................
Income:
Governmental receipts........................................................................................
Proprietary receipts.............................................................................................
Receipts from Federal funds:
Interest............................................................................................................
Other...............................................................................................................
-0.1
249
18. TRUST FUNDS AND FEDERAL FUNDS
to $1.1 trillion at the end of 1993. The balances are
expected to grow to $1.8 trillion by the end of 1999.
Almost all of these balances are invested in Treasury
debt and earn interest. Therefore, they effectively rep
resent the value, in current dollars, of taxes and user
fees that have been paid in advance for future benefits
and services.
These balances are available to finance future benefit
payments and other trust fund expenditures—but only
in an accounting sense. They do not consist of real
economic assets that can be drawn down in the future
to fund benefits. Instead, they are claims on the Treas
ury that, when redeemed, will have to be financed by
taxes, reductions in benefits or other expenditures, or
borrowing from the public. From an economic stand
point, the Government is able to prefund benefits only
by increasing saving and investment in the economy
as a whole. This can be fully accomplished only by
simultaneously running trust fund surpluses equal to
TABLE 18-4.
the actuarial present value of the accumulating benefits
and reducing the unified budget 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 fi
nance investment. If the additional investment in
creased the rate of productivity growth, future incomes
and wealth would be expanded. As a result, when the
trust funds drew down their investments in Treasury
debt to pay future benefits, the burden on future work
ers 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
funds are financially sound. For example, the balances
of the Social Security Disability Insurance trust fund
are expected to be exhausted in 1996 without the pro
posed reallocation of payroll tax rates. Estimates of in
come, outgo, and balances for 1993 through 1999 for
the major trust funds are shown in the following table.
IN
COM OUTGO, AND BALANCES OF MAJOR TRUST FUNDS
E,
(In billions of dollars)
Estim
ate
actual
Airport and airway trust funds
Baliance, start of y e a r.........................................................
Income:
Governmental receipts....................................................
Proprietary receipts.........................................................
Receipts from Federal funds:
Interest.......................................................................
Other..........................................................................
Receipts from Trust funds..............................................
15.2
12.9
12.6
12.6
12.9
13.7
14.9
3.3
5.4
5.8
6.2
6.6
7.1
7.6
1.0
0.9
0.7
0.7
0.7
0.7
0.8
Subtotal, income....................................................
Outgo:
To the public..................................................................
Payments to Other funds...............................................
4.3
6.3
6.5
6.9
7.3
7.9
8.4
6.7
6.5
6.5
6.6
6.7
6.5
6.5
-3.4
1.0
-1.1
0.9
-0.7
0.7
Subtotal, surplus or deficit ( - ) ...............................
Adjustments:
Transfers/lapses (net) ................................................
Other adjustments......................................................
-2.4
Total, change in fund balance...................................
Balance, end of ye a r.........................................................
Subtotal, outgo.......................................................
Change in fund balance:
Surplus or deficit (-):
Excluding interest.......................................................
Interest.......................................................................
6.6
6.6
6.6
6.6
-0.4
0.7
0.7
0.5
0.7
1.0
0.8
-0.2
0.3
0.7
1.2
1.8
-2.4
-0.2
0.3
0.7
1.2
1.8
12.8
12.6
12.9
13.7
14.9
16.7
12.6
250
ANALYTICAL PERSPECTIVES
TABLE 18-4. INCOME, OUTGO, AND BALANCES OF MAJOR TRUST FUNDS-Continued
(In billions of dollars)
Estimate
1996
1997
1999
Federal civilian employees retirement funds
290.6
318.6
347.2
376.0
404.6
432.5
460.3
4.8
4.7
4.7
4.6
4.5
4.5
4.4
25.7
32.8
26.8
33.7
27.7
34.6
28.5
35.2
29.2
36.2
29.8
37.3
30.6
38.1
Subtotal, income
63.3
65.2
67.0
68.3
69.9
71.7
73.1
To the public...................
Payments to Other funds
35.3
36.7
38.1
39.8
41.9
43.9
46.1
35.3
36.7
38.1
39.8
41.9
43.9
46.1
2.3
25.7
1.8
26.8
28.5
-1.3
29.2
2.1
27.7
29.8
-3.5
30.6
28.0
28.6
28.8
28.5
28.0
27.7
27.0
Total, change in fund balance......................................
28.0
28.6
28.8
28.5
28.0
27.7
27.0
Balance, end of ye a r............................................................
318.6
347.2
376.0
432.5
460.3
487.3
6.5
6.6
6.5
6.4
6.3
6.4
6.4
13.2
13.4
13.7
13.1
12.4
11.6
10.7
Subtotal, income....
Outgo:
To the public...................
Payments to Other funds
13.2
13.4
13.7
13.1
12.4
11.6
10.7
13.2
13.4
13.8
13.2
12.4
11.5
10.6
Subtotal, outgo ...
Change in fund balance:
Surplus or deficit (-):
Excluding interest ...
Interest...................
13.2
13.4
13.8
13.2
12.4
11.5
10.6
Balance, start of y e a r.....................................................................
Income:
Governmental receipts................................................................
Proprietary receipts.....................................................................
Receipts from Federal funds:
Interest....................................................................................
Other .......................................................................................
Receipts from Trust funds...........................................................
Subtotal, outgo ...
Change in fund balance:
Surplus or deficit (-):
Excluding interest ...
Interest...................
Subtotal, surplus or deficit (-)
1.1
-
Transfers/lapses (net)
Other adjustments.....
Foreign military sales trust fund
Balance, start of y e a r...........................................................
Income:
Governmental receipts...........
Proprietary receipts................
Receipts from Federal funds:
Interest..............................
Other.................................
Receipts from Trust funds.....
Subtotal, surplus or deficit (-)
Adjustments:
0.1
-
0.1
-
0.1
-
0.1
0.1
0.1
0.1
0.1
-
0.1
-
0.1
-
0.1
0.1
0.1
0.1
0.1
-
0.1
-
0.1
-
0.1
0.1
0.1
0.1
6.3
6.4
6.4
6.5
Other adjustments...................
Total, change in fund balance .
Balance, end of y e a r......................
6.5
6.4
251
18. TRUST FUNDS AND FEDERAL FUNDS
TABLE 18-4. INCOME, OUTGO, AND BALANCES OF MAJOR TRUST FUNDS-Continued
(In billions of dollars)
Estimate
1993
actual
1994
1995
1996
1997
1998
1999
Balance, start of y e a r.................................................................................................
Income:
Governmental receipts............................................................................................
Proprietary receipts.................................................................................................
Receipts from Federal funds:
Interest...............................................................................................................
Other..................................................................................................................
Receipts from Trust funds......................................................................................
327.1
373.9
430.9
494.0
561.0
639.7
727.3
311.9
336.2
355.2
374.7
397.5
421.4
445.1
26.8
12.7
29.1
12.3
31.7
13.4
34.9
14.2
38.8
15.1
43.2
16.2
48.0
17.3
Subtotal, income............................................................................................
Outgo:
To the public..........................................................................................................
Payments to Other funds.......................................................................................
351.4
377.5
400.3
423.8
451.4
480.7
510.4
300.8
3.8
316.5
3.9
333.1
4.0
352.7
4.2
368.5
4.2
388.8
4.3
410.0
4.4
Subtotal, outgo...............................................................................................
Change in fund balance:
Surplus or deficit (-):
Excluding interest...............................................................................................
Interest...............................................................................................................
304.6
320.5
337.2
356.9
372.7
393.1
414.4
20.0
26.8
28.0
29.1
31.4
31.7
32.0
34.9
39.9
38.8
44.5
43.2
48.1
48.0
Subtotal, surplus or deficit ( - ) .......................................................................
Adjustments:
Transfers/lapses (net) ........................................................................................
Other adjustments..............................................................................................
46.8
57.1
63.1
67.0
78.6
87.7
96.1
Total, change in fund balance...........................................................................
46.8
57.1
63.1
67.0
78.6
87.7
96.1
Balance, end of y e a r..................................................................................................
373.9
430.9
494.0
561.0
639.7
727.3
823.4
Balance, start of y e a r.................................................................................................
Income:
Governmental receipts............................................................................................
Proprietary receipts.................................................................................................
Receipts from Federal funds:
Interest...............................................................................................................
Other ..................................................................................................................
Receipts from Trust funds......................................................................................
120.6
126.1
129.6
135.5
144.0
152.0
162.2
81.2
0.6
90.1
0.8
99.0
0.9
106.8
0.9
113.5
1.0
120.4
1.0
127.2
1.1
10.6
2.9
10.8
4.7
10.8
7.3
10.9
8.1
11.1
7.8
11.3
8.2
11.6
8.6
Subtotal, income............................................................................................
Outgo:
To the public..........................................................................................................
Payments to Other funds.......................................................................................
95.3
106.3
118.0
126.7
133.4
140.9
148.5
91.6
102.9
112.1
118.2
125.4
130.6
137.9
Subtotal, outgo...............................................................................................
Change in fund balance:
Surplus or deficit (-):
Excluding interest...............................................................................................
Interest...............................................................................................................
91.6
102.9
112.1
118.2
125.4
130.6
137.9
-6.9
10.6
-7.3
10.8
-4.9
10.8
-2.4
10.9
-3.1
11.1
-1.1
11.3
-1.0
11.6
Subtotal, surplus or deficit ( - ) .......................................................................
Adjustments:
Transfers/lapses (net) ........................................................................................
Other adjustments..............................................................................................
3.7
3.4
5.9
8.5
8.0
10.2
10.6
Total change in fund balance...........................................................................
5.5
3.4
5.9
8.5
8.0
10.2
10.6
Balance, end of v e a r..................................................................................................
126.1
129.6
135.5
144.0
152.0
162.2
172.8
Federal old-age, survivors and disability insurance trust funds
Health insurance: HI trust fund
1.8
252
ANALYTICAL PERSPECTIVES
TABLE 18-4. INCOME, OUTGO, AND BALANCES OF MAJOR TRUST FUNDS-Continued
(In billions of dollars)
Estimate
1993
actual
1994
1995
1996
1997
1998
1999
18.5
23.3
21.9
13.3
14.3
15.3
17.0
14.7
16.8
19.2
21.4
24.2
25.6
28.3
1.9
44.2
2.0
38.1
1.6
34.9
0.7
59.1
0.8
71.6
1.0
76.3
1.1
83.4
Subtotal, income............................................................................................
Outgo:
To the public..........................................................................................................
payments to Other funds.......................................................................................
60.8
56.9
55.6
81.2
96.7
102.9
112.8
54.3
58.3
64.2
80.2
95.7
101.2
109.6
Subtotal, outgo...............................................................................................
Change in fund balance:
Surplus or deficit (-):
Excluding interest...............................................................................................
Interest...............................................................................................................
54.3
58.3
64.2
80.2
95.7
101.2
109.6
4.7
1.9
-3.4
2.0
-10.1
1.6
0.3
0.7
0.2
0.8
0.7
1.0
2.1
1.1
Subtotal, surplus or deficit ( - ) .......................................................................
Adjustments:
Transfers/lapses (net) ........................................................................................
Other adjustments..............................................................................................
6.5
-1.4
-8.6
10
1.0
1.7
3.2
Health insurance: SMI trust fund
Balance, start of y e a r.................................................................................................
Income:
Governmental receipts............................................................................................
Proprietary receipts.................................................................................................
Receipts from Federal funds:
Interest...............................................................................................................
Other ..................................................................................................................
Receipts from Trust funds......................................................................................
-1.8
Total, change in fund balance...........................................................................
4.7
-1.4
-8.6
1.0
1.0
1.7
3.2
Balance, end of y e a r..................................................................................................
23.3
21.9
13.3
14.3
15.3
17.0
20.2
Balance, start of y e a r.................................................................................................
Income:
Governmental receipts............................................................................................
Proprietary receipts.................................................................................................
Receipts from Federal funds:
Interest...............................................................................................................
Other ..................................................................................................................
Receipts from Trust funds......................................................................................
22.0
23.0
21.4
19.4
20.2
20.4
20.9
18.0
18.3
18.6
22.4
22.8
23.1
23.5
1.6
1.4
1.1
1.0
1.0
1.0
1.0
Subtotal, Income............................................................................................
Outgo:
To the public..........................................................................................................
Payments to Other funds.......................................................................................
19.6
19.7
19.8
23.3
23.8
24.1
24.5
18.5
21.4
21.8
22.5
23.5
23.7
23.8
Subtotal Outgo..............................................................................................
Change in fund balance:
Surplus or deficit
Excluding interest...............................................................................................
Interest...............................................................................................................
18.5
21.4
21.8
22.5
23.5
23.7
23.8
-0.5
1.6
-3.1
1.4
-3.2
1.1
-0.2
1.0
-0.7
1.0
-0.6
1.0
-0.2
1.0
Subtotal, surplus or deficit.............................................................................
Adjustments:
Transfers/lapses (net) ........................................................................................
Other adjustments..............................................................................................
1.1
-1.7
-2.0
0.8
0.3
0.4
0.8
Total, Change in fund balance..........................................................................
1.0
-1.7
-2.0
0.8
0.3
0.4
0.8
Balance, end of v e a r..................................................................................................
23.0
21.4
19.4
20.2
20.4
20.9
21.7
Highway trust funds
253
18. TRUST FUNDS AND FEDERAL FUNDS
TABLE 18-4.
INCOME, OUTGO, AND BALANCES OF MAJOR TRUST FUNDS-Continued
(In billions of dollars)
1994
1995
1996
Military retirement fund
Balance, start of y e a r.........................................................
Income:
Governmental receipts.....................................................
Proprietary receipts.........................................................
Receipts from Federal funds:
Interest........................................................................
Other...........................................................................
Receipts from Trust funds...............................................
88.2
97.7
106.1
114.3
120.6
126.8
133.0
9.8
25.5
10.3
24.6
10.7
24.7
11.0
23.6
11.5
24.2
11.9
25.1
12.3
26.0
Subtotal, income.....................................................
Outgo:
To the public...................................................................
Payments to Other funds................................................
35.3
34.8
35.4
34.6
35.7
37.0
38.3
25.7
26.5
27.2
28.3
29.5
30.8
32.9
Subtotal, outgo.......................................................
Change in fund balance:
Surplus or deficit (-):
Excluding interest.......................................................
Interest........................................................................
25.7
26.5
27.2
28.3
29.5
30.8
32.9
-0.3
9.8
-1.9
10.3
-2.5
10.7
-4.7
11.0
-5.3
11.5
-5.7
11.9
-7.0
12.3
8.3
8.2
6.3
6.2
6.2
5.4
Subtotal, surplus or deficit ( - ) ................................
Adjustments:
Transfers/lapses (net) ................................................
Other adjustments......................................................
Total, change in fund balance...................................
9.6
8.3
8.2
6.3
6.2
6.2
5.4
Balance, end of y ear..........................................................
97.7
106.1
114.3
120.6
126.8
133.0
138.3
Balance, start of y e a r.........................................................
Income:
Governmental receipts....................................................
Proprietary receipts.........................................................
Receipts from Federal funds:
Interest.......................................................................
Other..........................................................................
Receipts from Trust funds..............................................
11.0
11.6
11.9
12.3
12.6
12.8
13.1
3.9
3.9
3.9
3.9
3.9
4.0
4.0
0.9
3.0
3.6
0.8
3.1
3.6
0.8
0.8
0.8
0.8
0.8
3.2
3.7
3.3
3.8
3.4
3.9
3.5
4.0
3.5
4.0
Subtotal, income....................................................
Outgo:
To the public..................................................................
Payments to Other funds...............................................
11.4
11.3
11.6
11.8
12.0
12.2
12.4
7.6
3.2
7.9
3.2
8.0
3.3
8.1
3.4
8.2
3.5
8.4
3.6
8.5
3.7
Subtotal, outgo.......................................................
Change in fund balance:
Surplus or deficit (-):
Excluding interest.......................................................
Interest.......................................................................
10.8
11.0
11.3
11.5
11.7
11.9
12.1
-0.3
0.9
-0.4
-0.5
0.8
-0.5
-0.5
0.8
0.8
-0.5
0.8
-0.5
0.8
Subtotal, surplus or deficit ( - ) ...............................
Adjustments:
Transfers/lapses (net) ................................................
Other adjustments......................................................
0.6
0.3
0.3
0.3
0.3
0.3
0.3
Total, change in fund balance...................................
0.6
0.3
0.3
0.3
0.3
0.3
0.3
Balance, end of y e a r..........................................................
11.6
11.9
12.3
12.6
12.8
13.1
13.4
Railroad retirement trust funds
150-003 0 -9
http://fraser.stlouisfed.org/ 4 -9 (QL 3)
Federal Reserve Bank of St. Louis
0.8
254
ANALYTICAL PERSPECTIVES
TABLE 18-4. INCOME, OUTGO, AND BALANCES OF MAJOR TRUST FUNDS-Continued
(In billions of dollars)
1993
actual
Estimate
1994
1995
1996
1997
1998
1999
Unemployment trust fund
Balance, start of y e a r................................................................................................
Income:
Governmental receipts............................................................................................
Proprietary receipts................................................................................................
Receipts from Federal funds:
Interest...................................................................... ........................................
Other..................................................................................................................
Receipts from Trust funds......................................................................................
35.7
37.1
39.3
42.9
46.7
51.0
56.4
25.5
0.1
27.0
27.6
28.3
29.0
29.8
0.1
29.4
0.1
2.5
13.1
2.3
4.0
2.1
1.2
2.3
0.8
2.5
0.7
2.9
0.7
3.2
0.7
Subtotal, income............................................................................................
Outgo:
To the public..........................................................................................................
Payments to Other funds.......................................................................................
41.3
33.3
30.9
31.4
32.3
33.4
33.4
39.9
31.1
27.3
27.6
27.9
28.0
29.1
Subtotal, outgo..............................................................................................
Change in fund balance:
Surplus or deficit (-):
Excluding interest...............................................................................................
Interest...............................................................................................................
39.9
31.1
27.3
27.6
27.9
28.0
29.1
-1.1
2.5
-0.1
2.3
1.5
2.1
1.5
2.3
1.9
2.5
2.5
2.9
1.1
3.2
Subtotal, surplus or deficit ( - ) .......................................................................
Adjustments:
Transfers/lapses (net) ........................................................................................
Other adjustments..............................................................................................
1.4
2.2
3.6
3.8
4.3
5.4
4.3
Total, change in fund balance...........................................................................
1.4
2.2
3.6
3.8
4.3
5.4
4.3
Balance, end of y e a r.................................................................................................
37.1
39.3
42.9
46.7
51.0
56.4
60.7
Balance, start of y e a r................................................................................................
Income:
Governmental receipts............................................................................................
Proprietary receipts................................................................................................
Receipts from Federal funds:
Interest...............................................................................................................
Other ..................................................................................................................
Receipts from Trust funds......................................................................................
12.9
13.3
13.5
13.6
13.7
13.7
13.5
0.4
0.3
0.3
0.3
0.3
0.3
0.2
1.1
1.1
1.1
1.0
1.0
0.9
0.9
Subtotal, income ............................................................................................
Outgo:
To the public..........................................................................................................
Payments to Other funds.......................................................................................
1.5
1.4
1.4
1.3
1.2
1.2
1.1
1.1
1.2
1.2
1.2
1.3
1.3
1.3
Subtotal, outgo..............................................................................................
Change in fund balance:
Surplus or deficit (-):
Excluding interest...............................................................................................
Interest...............................................................................................................
1.1
1.2
1.2
1.2
1.3
1.3
1.3
-0.7
1.1
-0.9
1.1
-0.9
1.1
-0.9
1.0
-1.0
1.0
-1.0
0.9
-1.1
0.9
Subtotal, surplus or deficit ( - ) .......................................................................
Adjustments:
Transfers/lapses (net) ........................................................................................
Other adjustments.............................................................................................
0.4
0.2
0.1
0.1
-0.1
-0.2
Total, change in fund balance...........................................................................
0.4
0.2
0.1
0.1
-0.1
-0.2
Balance, end of y ear.................................................................................................
13.3
13.5
13.6
13.7
13.5
13.3
Veterans life insurance trust funds
13.7
255
18. TRUST FUNDS AND FEDERAL FUNDS
TABLE 18-4. INCOME, OUTGO, AND BALANCES OF MAJOR TRUST FUNDS-Continued
(In billions of dollars)
Estimate
1993
actual
1994
1995
1996
1997
1998
1999
32.1
36.3
39.1
42.2
44.9
47.6
50.1
4.0
1.3
4.1
1.3
4.2
1.3
3.7
1.3
3.5
1.3
3.5
1.2
3.6
1.2
0.4
2.2
0.6
1.0
0.6
1.1
0.7
1.4
0.7
1.4
0.7
1.5
0.8
1.5
7.8
7.0
7.2
7.0
6.9
7.0
7.0
3.0
0.5
3.7
0.4
3.7
0.4
3.9
0.4
3.7
0.5
3.9
0.5
3.9
0.5
Subtotal, outgo..............................................................................................
Change in fund balance:
Surplus or deficit (-):
Excluding interest..............................................................................................
Interest...............................................................................................................
3.6
4.1
4.1
4.3
4.2
4.4
4.4
3.9
0.4
2.3
0.6
2.5
0.6
2.0
0.7
2.0
0.7
1.8
0.7
1.9
0.8
Subtotal, surplus or deficit ( - ) .......................................................................
Adjustments:
Transfers/lapses (net) ........................................................................................
Other adjustments.............................................................................................
4.3
2.8
3.1
2.7
2.7
2.6
2.6
Other trust funds
Balance, start of y e a r................................................................................................
Income:
Governmental receipts............................................................................................
Proprietary receipts................................................................................................
Receipts from Federal funds:
Interest...............................................................................................................
Other..................................................................................................................
Receipts from Trust funds......................................................................................
Subtotal, income...........................................................................................
Outgo:
To the public..........................................................................................................
Payments to Other funds.......................................................................................
-0.1
Total, change in fund balance...........................................................................
4.2
2.8
3.1
2.7
2.7
2.6
2.6
Balance, end of y e a r.................................................................................................
36.3
39.1
42.2
44.9
47.6
50.1
52.8
19. NATIONAL INCOME AND PRODUCT ACCOUNTS
The National Income and Product Accounts (NIPAs) from the budget in netting, timing, and coverage. These
are an integrated set of measures of aggregate U.S. differences cause total receipts and expenditures in the
economic activity that are prepared by the Department NIPAs to differ from total receipts and outlays in the
of Commerce. One of the many purposes of the NIPAs budget. Differences in timing and coverage also cause
is to measure the Nation’s total current production of the deficit to differ. Netting differences have equal ef
goods and services, known as gross domestic product fects on receipts and expenditures and thus have no
(GDP), and the incomes generated in its production. effect on the deficit. Besides these differences, the
Because the NIPAs are widely used in economic analy NIPAs combine transactions into different categories
sis, it is important to show the NIPA presentation of from those used in the budget.
Federal transactions.
Netting differences arise when the budget records
GDP is the sum of the net products of the household, certain transactions as offsets to outlays while they
business, government, and foreign-owned sectors. Fed are recorded as receipts in the NIPAs (or vice versa).
eral transactions are included in the NIPAs as part The budget treats all income that comes to the Govern
of the government sector. The concepts for the Federal ment due to its sovereign powers—mainly, but not ex
sector have been designed to measure certain important clusively, taxes—as governmental receipts. However,
economic effects of Federal transactions in a way that any intragovemmental income from one account to an
is consistent with the conceptual structure of the entire other is offset against outlays rather than being re
set of integrated accounts. The NIPA Federal sector corded as a receipt. Government contributions for em
is not itself a budget, for it is not a financial plan ployee retirement is one example. The budget offsets
for proposing, determining, and controlling the fiscal these payments against outlays, while the NIPAs treat
activities of the Government. Rather, it is an accounting the Federal Government as any other employer and
translation of the budget to meet specialized and impor show contributions for employee social insurance as ex
tant needs, chiefly the measurement of the impact of penditures by the employing agencies and receipts to
Federal receipts, outlays, and the deficit on the national the appropriate social insurance funds. The NIPAs also
economy. NIPA concepts differ in many ways from include certain imputations that the budget does not.
budget concepts, and therefore the NIPA presentation For example, unemployment benefits for Federal em
of Federatl finances is significantly different from that ployees are financed by direct appropriations rather
of the budget.
than social insurance contributions. The NIPAs impute
GDP is a measure of final output which excludes social insurance contributions by employing agencies to
intermediate product to avoid double counting. Govern finance these benefits—again, treating the Federal Gov
ment purchases of goods and services are included in ernment as any other employer.
GDP as part of final output, together with personal
The budget also offsets against outlays any income
consumption expenditures, gross private domestic in that arises from voluntary business-type transactions
vestment, and net exports of goods and services. Other with the public. The NIPAs generally follow this con
Federal expenditures—transfer payments, grants to vention as well, and all income to government enter
State and local governments, subsidies, and net interest prises such as the Postal Service or the power adminis
payments—do not buy final output. Rather, they are trations is offset against expenditures. However, the
transfers of income to others, whose consumption, in NIPAs have a narrower definition of “business-type
vestment, purchases, or transactions with foreigners transactions”. Rents, royalties, and regulatory or in
are part of final output. An entire set of receipt and spection fees are recorded under receipts as business
expenditure transactions of the Federal Government is nontaxes. The budget classifies premiums for Medicare
prepared as one sector of the NIPAs; however, when Part B, supplementary Medical Insurance, as businessthe accounts for all the sectors are consolidated into type transactions, whereas the NIPAs record them as
a summary account for the Nation as a whole, transfer social insurance receipts.
payments, grants, subsidies, and net interest expendi
Timing differences for receipts occur because the
tures are canceled out by the receipt of those payments NIPAs generally record personal taxes and social insur
as income in other sectors. This leaves only purchases ance contributions when they are paid and business
to be included in final output.
taxes when they are accrued, while the budget records
all receipts when they are received. The principal tim
D ifferences Between the NIPAs and the Budget
ing difference between NIPA expenditures and budget
Federal transactions in the NIPAs are measured ac outlays occurs because purchases are recorded on a de
cording to NIPA accounting rules in order to be compat livery basis in the NIPAs, but when cash is disbursed
ible with the purposes of the NIPAs and other trans in the budget. This difference can be large for major
actions recorded in the NIPAs. As a result they differ defense purchases because progress payments are re-
25?
258
ANALYTICAL PERSPECTIVES
corded as outlays in the budget, while the NIPAs do subsidies nor the loan transactions are included; how
not record expenditures until delivery is made. The ever, the NIPAs continue to include all interest trans
NIPAs count work in progress as part of business in actions with the public, including net interest paid to
ventories until delivery is made to the Government. the new financing accounts.
Deposit insurance outlays for resolving failed banks
The budget and the NIPAs also have coverage dif
ferences. The NIPAs include off-budget Federal entities and thrift institutions are similarly excluded from the
and exclude transactions with U.S. territories. The NIPAs on the grounds that there are no offsetting cur
NIPAs also exclude the proceeds from the sales of as rent income flows from these transactions. In recent
sets such as land. Bonuses paid on Outer Continental years, this exclusion has been the largest difference
Shelf oil leases are shown as offsetting receipts in the between the NIPAs and the budget and has tended
budget and are deducted from budget outlays. In the to make the unified budget deficit larger than the NIPA
NIPAs these transactions are excluded as an exchange deficit. In coming years, as assets acquired from failed
financial institutions are sold, these collections will
of assets.
Financial transactions such as loans, loan repay tend to make the unified deficit smaller than the NIPA
ments, loan asset sales, and loan guarantees are ex deficit.
cluded from the NIPAs on the grounds that such trans
Federal Sector Receipts
actions involve an exchange of assets with no produc
tion involved. Through 1991, in contrast, the budget
The table entitled “Federal Transactions in the Na
recorded loans as outlays when disbursed and as offsets tional Income and Product Accounts, 1984-1995” shows
to outlays when repaid or sold. With the enactment Federal receipts in the four major categories used in
of the Federal Credit Reform Act of 1990, the budget the NIPAs, which are similar to the budget categories
made a fundamental change in the way that it records but with significant differences.
lending transactions. For direct loan obligations and
Personal tax and nontax receipts is the largest cat
loan guarantee commitments made after 1991, the egory. It is composed primarily of personal income
budget records the estimated subsidy cost of the direct taxes, but also includes estate and gift taxes, fees, fines,
loan or loan guarantee when the direct loan or guaran and other receipts from persons.
teed loan is disbursed. The nonsubsidized cash flows
Corporate profits tax accruals differ in classification
are recorded in nonbudgetary accounts as a means of from the corresponding budget category primarily be
financing the budget deficit rather than as budgetary cause the NIPAs include the deposit of earnings of the
transactions themselves. This treatment recognizes that Federal Reserve System as corporate profits taxes,
part of a Federal direct loan is an exchange of assets while the budget treats these collections as miscellane
with equal value but part is normally a subsidy to ous receipts. The timing difference between the NIPAs
the borrower. It also recognizes the subsidy normally and the budget is especially large for this category of
granted by loan guarantees. In the NIPAs, neither the receipts.
TABLE 19-1.
FEDERAL TRANSACTIONS IN THE NATIONAL INCOME AND PRODUCT ACCOUNTS, 1984-1995
(In billions of dollars)
Actual
Description
1984
1985
1986
1987
1988
Estimate
1989
1990
1991
1992
1993
1994
1995
RECEIPTS
Personal tax and nontax receipts ......................
Corporate profits tax accruals............................
Indirect business tax and nontax accruals ........
Contributions for social insurance......................
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
57.9
345.5
403.8
107.6
59.6
384.1
456.9
119.2
62.2
411.8
475.2
115.4
63.1
438.3
475.7
104.8
76.7
460.6
484.0
116.3
80.8
484.5
511.7
135.6
86.0
516.0
558.5
148.9
91.9
546.0
607.3
155.8
112.6
575.3
Total receipts.......................................
711.7
777.0
813.8
899.1
955.1
1,050.1
1,092.9
1,121.4
1,165.6
1,249.3
1,345.4
1,450.9
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
418.1
309.0
109.1
505.6
491.2
14.4
128.3
175.1
446.0
325.8
120.1
509.8
535.9
-26.1
147.0
183.2
444.9
311.7
133.1
607.3
595.8
11.5
167.4
189.7
445.0
306.8
138.2
646.4
630.2
16.2
182.1
181.3
443.4
293.6
149.8
678.5
661.6
16.9
203.9
183.3
450.0
287.7
162.3
715.2
700.0
15.2
215.3
193.3
23.0
-0.1
21.6
0.1
22.1
24.9
-0.1
28.9
0.1
27.6
22.7
23.3
*
26.7
0.0
29.7
0.0
24.2
0.0
23.3
Total expenditures...............................
875.3
952.9
1,017.6
1,051.0
1,098.5
1,164.5
1,250.0
1,309.2
1,436.0
1,484.5
1,533.3
1,597.1
Deficit ( - ) ..............................................
-163.6
-175.9
-203.9
-151.9
-143.3
-114.3
-157.9
-187.8
-270.4
-235.2
-187.9
-146.1
EXPENDITURES
Purchases...........................................................
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....................
259
19. NATIONAL INCOME AND PRODUCT ACCOUNTS
Indirect business tax and nontax accruals are com
posed of excise taxes, customs duties, royalties, fines,
and other receipts.
Contributions for social insurance differ from the cor
responding budget category primarily because: (1) the
NIPAs include Federal employer contributions for em
ployee 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 pro
grams including Part B of medicare as Government
receipts, which the budget also nets against outlays;
and (3) the NIPAs include imputations for Federal em
ployees’ unemployment insurance and workers’ com
pensation.
flecting contributions from foreign governments for
Desert Storm.
Grants-in-aid to State and local governments are de
signed to help finance a range of programs. Grants
are for income security, capital expenditures for infra
structure, and other purposes.
Net interest paid is the interest paid by the Govern
ment on its borrowing, less interest received on its lending.
Subsidies less current surplus of Government enter
prises 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 sub
sidies do not include the imputed credit subsidies esti
mated as part of credit reform in the budget. Rather,
loans and guarantees are categorized as financial trans
actions 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.
Federal Sector Expenditures
The table entitled "Federal Transactions in the Na
tional Income and Product Accounts, 1984-1995” shows
expenditures in the six major NIPA categories, which
are very different from the budget categories.
Purchases are the goods and services purchased by
the Federal Government, including employee compensa
tion. This category is divided into defense and non
Differences in the Estimates
defense components.
Transfer payments is the largest expenditure cat
Since the introduction of the unified budget in Janu
egory. Domestic transfer payments are mainly for in ary 1968, NIPA receipts have exceeded budget receipts
come security programs, such as social security and in each year, due principally to the imputed employer
medicare. Foreign transfer payments include grants to contributions for employee retirement. NIPA expendi
foreign governments and payments under social secu tures have usually been higher than budget outlays
rity and other similar programs to individuals living for the same reason. There are, however, two compo
abroad. In 1991, foreign transfers were negative, re nents of budget outlays that are sometimes sufficiently
TABLE 19-2.
RELATIONSHIP OF THE BUDGET TO THE FEDERAL SECTOR, NIPA
(In billions of dollars)
Actual
1984
RECEIPTS
Unified budget receipts........................
Government contributions for em
ployee retirement (grossing) ........
Other netting and grossing...............
Timing adjustments...........................
Geographic exclusions......................
Other ................................................
NIPA receipts.............................
EXPENDITURES
Unified budget outlays..........................
Government contributions for em
ployee 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......................
1985
1986
1987
1988
Estimate
1989
1990
1991
1992
1993
1994
1995
666.5
734.1
769.1
854.1
909.0
990.7
1,031.3
1,054.3
1,090.5
1,153.5
1,249.1
1,353.8
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
-0.2
41.2
15.1
4.2
-1.3
0.2
45.2
17.1
-1.8
-1.4
-0.1
49.5
21.7
-3.3
-2.0
101
50.7
24.1
1.9
-1.8
0.0
56.3
26.5
15.1
-1.8
-0.3
59.7
26.8
12.2
-1.9
-0.4
64.7
27.2
7.9
-2.0
-0.7
711.7
777.0
813.8
899.1
955.1
1,050.1
1,092.0
1,121.4
1,165.6
1,249.3
1,345.4
1,450.9
851.8
948.4
990.3
1,003.9
1,064.1
1,143.2
1,252.7
1,323.8
1,380.9
1,408.2
1,483.8
1,518.9
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
-5.2
49.5
21.7
-13.1
50.7
24.1
-19.4
56.3
26.5
-26.1
59.7
26.8
-29.0
64.7
27.2
-17.1
-3.6
0.3
-0.8
-5.0
-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
-61.8
4.9
4.2
-6.5
-67.4
5.6
0.3
-7.3
-1.2
3.5
0.2
-7.6
26.0
2.0
0.4
-7.5
0.4
1.1
0.3
-8.0
8.5
0.8
0.4
-8.2
3.4
-0.4
1.9
-3.0
2.1
1.8
1.6
-0.1
1.3
-1.0
0.9
-0.2
1.1
-1.7
1.3
-5.3
0.9
4.0
0.0
-1.3
0.0
-1.8
0.0
-1.9
875.3
952.9
1,017.6
1,051.0
1,098.5
1,164.5
1,250.0
1,309.2
1,436,0
1,484.5
1,533.3
1,597.1
260
ANALYTICAL PERSPECTIVES
large to overwhelm the grossing adjustments. These
are financial transactions and payments to U.S. terri
tories. Budget outlays were greater than NIPA expendi
tures in 1990 and 1991. With the enactment of credit
reform, effective in 1992, lending activity with the pub
lic 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
remain as budget outlays. However, this narrowing of
differences in lending activity was overwhelmed, in re
cent years, by large increases in other financial trans
actions, principally outlays for the resolution of failed
financial institutions.
Since 1968, the unified on-budget plus off-budget sur
plus or deficit has exceeded the Federal surplus or defi
TABLE 19-3.
cit as measured in the NIPAs in all but three years.
In 1992, the unified budget deficit was $290.4 billion,
while the NIPA deficit was $270.4 billion.
Table 19-1 displays Federal transactions using NIPA
concepts with actual data for the years 1984-1993 and
estimates for 1994 and 1995 consistent with the Admin
istration’s budget proposals. Table 19-2 displays the
reasons for differences between the data using budget
concepts and NIPA concepts. Table 19-3 displays quar
terly data using NIPA concepts beginning in October
1991. Annual NIPA data from 1947-1995 are published
in Section 14 of a separate budget volume, Historical
Tables, Budget of the U.S. Government, Fiscal Year
1995.
Additional details will be published in a forthcoming
issue of the Department of Commerce publication, Sur
vey of Current Business.
FEDERAL RECEIPTS AND EXPENDITURES IN THE NIPAs, QUARTERLY, 1993-1995
(In billions of dollars; seasonally adjusted at annual rates)
Actual
Estimate
Oct.-Dec.
Jan.-Mar.
Apr.-June
Juty-Sept.
Oct.-Dec.
Jan.-Mar.
Apr.-June
July-Sept.
Oct-Dec.
Jan.-Mar.
Apr.-June
July-Sept
1992
Description
1993
1993
1993
1993
1994
1994
1994
1994
1995
1995
1995
RECEIPTS
Personal tax and nontax receipts ......................
Corporate profits ta x ..........................................
Indirect business tax and nontax accruals........
Contributions for social......................................
511.8
127.1
83.5
498.7
502.1
132.4
81.5
502.3
520.7
142.4
86.2
518.7
527.1
139.3
86.7
522.8
535.0
143.9
95.2
527.6
554.4
146.6
93.0
546.6
568.1
150.9
93.0
550.6
573.2
154.2
93.1
555.4
584.7
155.3
114.2
561.3
597.4
155.5
111.0
571.8
630.7
155.5
111.3
579.6
616.7
156.7
111.6
588.7
Total receipts.......................................
1,221.1
1,218.4
1,268.0
1,275.9
1,301.7
1,340.6
1,362.6
1,375.9
1,415.5
1,435.7
1,477.1
1,473.7
452.4
315.7
136.7
641.7
617.1
24.6
176.7
181.3
442.7
304.8
137.9
642.0
628.9
13.1
176.1
178.3
447.6
307.6
140.0
645.6
632.7
12.9
182.8
182.5
443.6
301.9
141.7
652.8
639.1
13.7
188.6
182.2
439.7
300.0
139.7
659.7
642.5
17.2
195.8
179.3
444.8
294.0
150.8
680.0
663.2
16.8
199.2
182.0
445.1
291.9
153.2
684.4
667.2
17.2
207.2
186.0
442.5
286.9
155.6
690.4
673.6
16.8
213.6
186.0
446.3
286.7
159.6
703.6
686.4
17.2
214.0
190.6
449.3
288.5
160.8
713.6
699.2
14.4
214.2
192.4
451.9
288.7
163.2
717.6
703.6
14.0
215.2
194.8
451.5
286.3
165.2
725.6
710.8
14.8
217.4
195.4
33.2
0.0
42.9
0.0
32.3
0.0
21.4
0.0
38.0
0.0
29.6
0.0
20.4
0.0
12.4
0.0
24.0
0.0
30.8
0.0
23.2
0.0
15.2
0.0
Total expenditures..............................
1,485.3
1,481.9
1,490.6
1,488.6
1,512.5
1,535.6
1,543.1
1,544.9
1,578-5
1,600.3
1,602.7 1,6705.1
D e fic itH ...............................................
-264.2
-263.4
-222.6
-212.7
-210.8
-195.0
-180.5
-169.0
-163.0
-164.6
-125.6
EXPENDITURES
Purchases 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....................
ANOTE: 1. Because of the methods used to seasonally adjust NIPA data, the average of seasonally adjusted data for the 4 quarters of the fiscal year may not be equal to the unadjusted fiscal year total.
A2. NA: Not available until the GDP release on January 28, 1994.
-131.4
20. COMPARISON OF ACTUAL TO ESTIMATED TOTALS FOR 1993
The following three parts of this chapter compare
the actual total receipts, outlays, and the deficit for
1993 with the current services baseline estimates
shown in the 1993 Budget in February 1992. The fourth
part shows additional details for a comparison of man
datory and related programs, and the final part rec
onciles actual receipts, outlays, and the deficit totals
for 1993 previously published by the Department of
the Treasury with those in the budget.
Receipts
Receipts in 1993 were $1,153.5 billion, which is $15.5
billion less than the February 1992 baseline estimate
of $1,169.0 billion. As shown in Table 20-1, this de
crease was the net effect of legislative, administrative
and regulatory changes; economic conditions that dif
fered from what had been expected; and different collec
tion patterns and effective tax rates than had been
assumed.
Policy differences.—The Unemployment Compensa
tion Amendments of 1992, the Energy Policy Act of
1992 and the Omnibus Budget Reconciliation Act of
1993 were the only major laws enacted after February
1992 that affected 1993 receipts. Altogether, these three
laws increased 1993 receipts by a net $4.1 billion. New
IRS policies regarding applications for installment
agreements and extensions to file tax returns, adminis
trative actions that affected reserve requirements of the
Federal Reserve, and regulatory changes that affected
the timing of the payment of payroll taxes by small
businesses and the allocation of research and experi
mentation expenditures between domestic and foreign
operations, reduced 1993 receipts by $2.3 billion. On
net, legislative, administrative and regulatory changes
increased 1993 receipts by $1.8 billion.
Economic differences.—Differences between the
economic assumptions upon which the original receipts
estimates were made and actual economic performance
accounted for a net decrease in 1993 receipts of $24.4
billion. Reductions in wages and salaries relative to
what had been assumed in the 1993 budget were in
large part responsible for the shortfalls in individual
income taxes and social insurance taxes and contribu
tions of $13.5 billion and $9.8 billion, respectively. Mis
cellaneous receipts were lower than expected by $4.8
billion, in large part due to lower than anticipated in
terest rates, which reduced deposits of earnings by the
Federal Reserve. Increases in corporate profits relative
to the budget forecast increased corporation income
taxes by $1.9 billion and higher than expected imports
increased customs duties by $1.4 billion.
Technical reestimates.—Different collection pat
terns and effective tax rates than had been assumed
in February 1992 were primarily responsible for the
increases in individual and corporation income taxes
of $4.1 billion and $7.7 billion, respectively, and the
decrease in social insurance taxes and contributions of
$6.3 billion. Increased deposits of earnings by the Fed
eral Reserve, attributable to higher-than-expected asset
values on securities denominated in foreign currencies,
accounted for most of the $2.8 billion increase in mis
cellaneous receipts.
Outlays
Outlays for 1993 were $1,408.2 billion. This was
$115.6 billion lower than the initial current services
baseline estimate of $1,523.8 billion, which was in
cluded in the 1993 budget transmitted to the Congress
in February 1992.
Major causes of the change.—Table 20-2 distrib
utes the $115.6 billion net decrease in outlays among
TABLE 20-1. COMPARISON OF ACTUAL 1993 RECEIPTS WITH THE FEBRUARY 1992 BASELINE
ESTIMATES
(In billions of dollars)
February
1992
estimate
Legislative,
regulatory
and adminis
trative
changes
*
519.1
105.9
444.5
48.0
12.9
18.0
20.7
2.0
-0.1
*
*
-0.1
-0.1
1,169.0
Individual income taxes ...................................................
Corporation income taxes................................................
Social insurance taxes and contributions........................
Excise taxes....................................................................
Estate and gift taxes........................................................
Customs duties................................................................
Miscellaneous receipts.....................................................
1.8
Different
economic
conditions
Technical
factors
Net
change
Actual
1.4
-4.8
4.1
7.7
-6.3
-0.3
-0.3
-0.5
2.8
-9.4
11.6
-16.2
0.1
-0.3
0.8
-2.1
509.7
117.5
428.3
48.1
12.6
18.8
18.6
-24.4
7.1
-15.5
1,153.5
-13.5
1.9
-9.8
0.3
_ *
*$50 miion or less.
261
262
ANALYTICAL PERSPECTIVES
TABLE 20-2. COMPARISON OF ACTUAL 1993 OUTLAYS WITH THE FEBRUARY 1992 BASELINE
ESTIMATES
(Outlays in billions of dollars)
February
1992
estimate
Discretionary:
Defense..................................................................
Nondefense.............................................................
Changes
Policy
Cap
adjust
ments
Economic
Technical
Total
changes
Actual
296.8
245.9
-8.4
-0.4
2.0
5.4
2.0
-0.9
-4.4
4.1
292.4
250.0
Subtotal, discretionary .......................................
Mandatory:
Deposit insurance...................................................
Other programs......................................................
542.7
-8.8
7.4
1.1
-0.3
542.5
75.7
691.4
6.1
0.9
-103.7
-3.5
-103.7
3.5
-28.0
694.9
Subtotal, mandatory...........................................
767.1
6.1
0.9
-107.1
-100.2
666.9
Net interest .................................................................
213.9
-0.2
-12.7
-2.2
-15.1
198.8
Total outlays..................................................
1,523.8
-2.9
-11.8
-108.2
-115.6
1,408.2
discretionary and mandatory programs and net inter
est, and also according to four reasons for the changes:
(1) policy changes; (2) cap adjustments; (3) economic
conditions; and (4) technical estimating differences, a
residual.
Policy changes are the result of actions by the Con
gress or the Administration (other than cap adjust
ments) that change spending levels, primarily through
higher or lower appropriations or changes in authoriz
ing legislation. For 1993, policy changes decreased out
lays an estimated $2.9 billion relative to the initial
current services estimates. Outlays for discretionary
programs were $8.8 billion lower than estimated in the
initial baseline, largely due to lower defense appropria
tions. (Discretionary programs are those generally sub
ject to control by annual appropriations.)
Outlays for mandatory programs were $6.1 billion
higher than initially estimated due to changes in policy,
largely because of increases of $5.6 billion for unem
ployment compensation. (Mandatory programs are
mostly formula benefit or entitlement programs not nor
mally controlled by annual appropriations.) Policy
changes for net interest reflect debt service on policy
changes to outlays and receipts.
Cap adjustments increased outlays by $7.4 billion
above the initial baseline. For defense, the $2.0 billion
increase was for incremental costs associated with Op
eration Desert ShielcJ/Desert Storm. For nondefense, the
$5.4 billion increase was primarily for emergency ap
propriations. These were for hurricanes Andrew and
Iniki and typhoon Omar in 1992 and for flood damage
in the Midwest and other emergencies in 1993. (Discre
tionary caps were initially enacted in the Omnibus
Budget Reconciliation Act of 1990 and are discussed
in the chapter entitled “Budget Enforcement Act Pre
view Report.”)
Economic conditions that differed from those forecast
in February 1992 resulted in a net outlay decrease
of $11.8 billion. Outlays for mandatory programs in
creased an estimated $0.9 billion. Higher than forecast
unemployment rates increased outlays $1.7 billion. This
7.4
was partially offset by lower than expected inflation,
primarily in medical costs, which decreased outlays an
estimated $0.8 billion. Net interest outlays were $12.7
billion lower for economic reasons than initially pro
jected, largely due to interest rates that were lower
than initially projected.
Technical estimating differences and other changes
result from changes in such factors as the number of
beneficiaries, crop conditions, bank failures, or other
factors not associated with policy changes, cap adjust
ments, or economic conditions. Technical changes ac
counted for a net decrease of $108.2 billion. Most of
the change was for deposit insurance. Initially esti
mated outlays for deposit insurance were $75.7 billion.
Actual collections exceeded disbursements by $28.0 bil
lion, a decrease of $103.7 billion from the initial esti
mate. This decrease was primarily because favorable
economic conditions resulted in fewer bank and thrift
failures than originally assumed, and a delay in receiv
ing funding for thrift resolutions shifted some outlays
into 1994. Other major technical changes included in
creases for agricultural price support payments ($3.7
billion), largely because favorable crop conditions de
pressed prices and raised crop subsidy payments, unem
ployment compensation ($3.1 billion), and social secu
rity ($2.6 billion). Major decreases were for medicaid
($8.3 billion) and mortgage credit programs ($2.8 bil
lion).
D e fic it
The preceding two sections discussed the differences
between the baseline estimates in the February 1992
budget for 1993 and the actual amounts of Federal
Government receipts and outlays. This section combines
these effects in order to show the net impact of these
differences on the deficit.
As shown in Table 20-3, the current services deficit
for 1993 was initially estimated to be $354.8 billion.
The actual deficit was $254.7 billion, which was $100.1
billion less than the initial baseline estimate. Receipts
were $15.5 billion less than the initial estimate, and
263
20. COMPARISON OF ACTUAL TO ESTIMATED TOTALS FOR 1993
TABLE 20-3. COMPARISON OF ACTUAL 1993 DEFICIT WITH THE FEBRUARY 1992 BASELINE
ESTIMATES
(In billions of dollars)
February
1992
estimate
Receipts .....................................................................
Deficit............................................................
Changes
Policy
Cap
adjust
ments
Economic
Technical
Total
changes
Actual
1,169.0
1,623.8
1.8
-2.9
7.4
-24.4
-11.8
7.1
-108.2
-15.5
-115.6
1,153.5
1,408.2
-354.8
4.7
-7.4
-12.5
115.3
100.1
-254.7
NOTE: Deficit changes are receipts minus outlays. For these changes, a plus indicates a decrease in the deficit
outlays were $115.6 billion less. The table shows the
distribution of the changes according to the categories
in the preceding two sections.
Policy increases in receipts and decreases in outlays
combined to decrease the deficit $4.7 billion. Increases
in the discretionary caps, primarily changes for Oper
ation Desert Shield/Desert Storm and appropriations
for emergencies, increased the deficit by $7.4 billion.
Economic conditions that differed from what was ini
tially assumed in February 1992 accounted for an esti
mated $12.5 billion increase in the deficit. The loss
of $24.4 billion in receipts was partially offset by a
decrease of $11.8 billion in outlays. Technical estimat
ing and other differences decreased the deficit by an
estimated $115.3 billion. This was due to a combination
of decreases in outlays of $108.2 billion and increases
in receipts of $7.1 billion.
Comparison of the Actual and Estimated Out
lays for Mandatory and Related Programs for
1993
This section compares the original 1993 outlay esti
mates for mandatory and related programs under cur
rent law in the 1993 Budget (February 1992) with the
actual outlays. Mandatory and related programs are
programs with spending generally controlled by author
izing 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 pay
ments to farmers, or deposit insurance for banks and
thrift institutions. This category also includes net inter
est 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 con
ditions (such as inflation or interest rates) may differ
from what was assumed in making the original esti
mates.
Table 20-4 shows the differences between actual out
lays for these programs in 1993 and the amounts origi
nally estimated in the 1993 Budget, based on laws in
effect at that time. (The list of programs is similar
to the list in Table 15-3 in Chapter 15, “Review of
Direct Spending and Receipts,” in this volume. This
table provides the estimates through 1999.)
Actual outlays for mandatory and related programs
in 1993 were $865.8 billion, which was $115.3 billion
less than the initial estimate of $981.1 billion, based
on existing law in February 1992.
Outlays for mandatory programs were $704.3 billion
in 1993, $102.8 billion less than estimated in February
1992.
Actual outlays for mandatory human resources pro
grams were $718.7 billion, $2.7 billion more than origi
nally estimated. This increase was the net effect of
legislative action, differences between actual and as
sumed economic conditions, differences between the an
ticipated and actual number of beneficiaries, and other
technical differences. The largest increase was for un
employment compensation ($9.9 billion), due primarily
to legislation that extended unemployment benefits; the
largest decrease was for medicaid ($8.7 billion), due
primarily to technical reestimates.
Outlays for other mandatory programs were $105.5
billion less than originally estimated. The largest de
crease was for deposit insurance. The initial estimate
was $75.7 billion. Actual collections exceeded disburse
ments by $28.0 billion, a net decrease of $103.7 billion
from the initial estimate. Favorable economic conditions
resulted in fewer bank and thrift failures than origi
nally assumed, and a delay in receiving funding for
thrift resolutions shifted some outlays into 1994. The
increase in outlays for mandatory agricultural programs
($4.0 billion) resulted largely from volatility in farm
production and international affairs. The bumper 1992
crops depressed prices and raised crop subsidy pay
ments, while humanitarian aid to Russia and disaster
aid to farmers following the Midwest floods also in
creased outlays.
Outlays for net interest were $198.8 billion or $15.1
billion less than the original estimate. This decrease
was largely the effect of lower than expected interest
rates.
264
ANALYTICAL PERSPECTIVES
TABLE 20-4. COMPARISON OF ACTUAL AND ESTIMATED OUTLAYS FOR MANDATORY
AND RELATED PROGRAMS UNDER CURRENT LAW FOR 1993
(In billions of dollars)
February 1992
estimate
Mandatory programs:
Human resources programs:
Education, training, employment.................................................................
Health:
Medicaid...................................................................................................
Other........................................................................................................
Actual
Change
14.5
13.8
-0.6
84.5
4.8
75.8
4.0
-8.7
-0.8
Total health ..........................................................................................
Medicare.......................................................................................................
Income security:
Retirement and disability..........................................................................
Unemployment compensation..................................................................
Food and nutrition assistance..................................................................
Other........................................................................................................
89.3
127.9
79.8
127.8
-9.5
-0.1
65.1
25.6
30.8
44.1
63.9
35.5
31.7
44.9
-1.3
9.9
0.9
0.8
Total, income security..........................................................................
Social security...............................................................................................
Veterans benefits and services:
Income security for veterans ...................................................................
Other........................................................................................................
165.7
299.6
176.0
302.0
10.3
2.4
17.5
1.5
17.8
1.6
0.2
0.1
Total veterans benefits and services...................................................
19.0
19.3
0.3
Total mandatory human resources ......................................................
Other mandatory programs:
Agriculture.....................................................................................................
Deposit insurance.........................................................................................
Other functions..............................................................................................
716.0
718.7
2.7
12.2
75.7
3.3
16.2
-28.0
-2.5
4.0
-103.7
-5.8
Total other mandatory programs..........................................................
91.2
-14.3
-105.5
Total mandatory programs...................................................................
Undistributed offsetting receipts:
Employer share, employee retirement .............................................................
Rents and royalties on the outer c o ................................................................
807.2
704.3
-102.8
-37.2
-2.8
-34.6
-2.8
2.6
*
Total undistributed offsetting receipts ..................................................
-40.0
-37.4
2.6
Total, mandatory and undistributed offsetting receipts........................
Net interest:
Interest on the public debt................................................................................
Interest received by trust funds........................................................................
Other interest....................................................................................................
767.1
666.9
-100.2
314.7
-81.0
-19.8
292.5
-82.3
-11.4
-22.2
-1.3
8.4
Total net interest..................................................................................
213.9
198.8
-15.1
Total outlays for mandatory and related programs under current law .
981.1
865.8
-115.3
*$50 million or less.
Reconciliation of Differences with Amounts
Published by Treasury for 1993
Table 20-5 provides a reconciliation of the receipts,
outlays, and deficit totals published by the Department
of the Treasury in the U.S. Government Annual Report
(January 3, 1994) and those published in this budget.
The deficit total for 1993 in this budget is $14 million
lower than previously reported by the Department of
the Treasury. The differences are due to misclassifications and reporting errors by the agencies that were
not found in time to be included in the reports issued
previously by the Department of the Treasury.
265
20. COMPARISON OF ACTUAL TO ESTIMATED TOTALS FOR 1993
TABLE 20-5. RECONCILIATION OF FINAL AMOUNTS FOR 1993
(In millions of dollars)
Receipts
Totals published by Treasury in the U.S. Government Annual Re
port'i ...........................................................................................
Adjustments, net:
The Judiciary...............................................................................
Department of Defense—Civil ....................................................
Energy Department.....................................................................
Interior Department.....................................................................
Environmental Protection Agency................................................
Other independent agencies:
Christopher Columbus Fellowship Foundation .......................
James Madison Memorial Fellowship Trust Fund..................
Federal Retirement Thrift Investment Board ..........................
Postal Service.........................................................................
Railroad Retirement Board.....................................................
United Mine Workers of America............................................
Miscellaneous reporting differences ............................................
Outlays
Deficit
1,153,147
1,407,831
48
19
148
-9
4
48
19
148
-9
4
8
9
8
9
-2
575
-170
161
-416
2
-575
170
161
-254,684
416
Total, adjustments, net................................................................
388
374
14
Totals in the budget........................................................................
1,153,535
1,408,205
-254,670
1 Published on January 3, 1994.
21. RELATIONSHIP OF BUDGET AUTHORITY TO OUTLAYS
The Congress 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 per
manent appropriations under existing law. This consists
mainly of budget authority for trust funds, which for
most trust funds is automatically appropriated under
existing law; interest on the public debt, for which
budget authority is automatically provided under a per
manent appropriation enacted in 1847; and the author
ity to spend offsetting collections credited to appropria
tion or fund accounts. Budget authority for the medi
care, railroad retirement, and unemployment insurance
trust funds was changed by the Budget Enforcement
Act of 1990, so that it equals estimated obligations
of the funds rather than the funds’ receipts. Conforming
changes were made administratively in 1991 for most
other trust funds subject to obligation limits or benefit
formulas, including the military and civil service retire
ment trust funds.
The remaining new budget authority is made avail
able annually through the appropriations process.
Not all of the new budget authority for 1995 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
(limited, in some cases, by the estimated obliga
tions). Any balances remain available to these
trust funds indefinitely in order to finance benefits
and other purposes specified by law.
• Budget authority for most major construction and
procurement projects covers the entire cost esti
mated 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 requirement, notably
for water resource programs.
• Budget authority for large portions of the sub
sidized housing programs is equal to the Govern
ment’s estimated obligation to pay subsidies under
contracts, which may extend for periods of up to
40 years.
• Budget authority for most other long-term con
tracts also covers the estimated maximum obliga
tion of the Government.
• Budget authority for most education and job train
ing 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 au
thority by the Budget Enforcement Act, the unobligated
balances of certain 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 for
mula or limitation on obligations). The amounts pre
cluded from obligation remain available indefinitely for
the purposes of the funds. This change in budget treat
ment resulted in a $402 billion reduction in unspent
authority as of the end of 1992.
As shown in the following chart, $334.9 billion of
the outlays in 1995 (22 percent of the total) will be
made from budget authority enacted in previous years.
At the same time, $353.0 billion of the new budget
authority proposed for 1995 (23 percent of the total
amount proposed) will not lead to outlays until future
years. Thus, although outlays in 1995 are, coinciden
tally, very nearly equal to budget authority for that
year (98.8 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.
i 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,
267
268
ANALYTICAL PERSPECTIVES
Chart 21-1. RELATIONSHIP OF BUDGET AUTHORITY
TO OUTLAYS FOR FY 1995
( in billions of dollars )
New Authority
Recommended
for 1995
To be spent in 1995
1,184.0
1,518.9
1,537.0
Unspent Authority
Enacted in
| ^ . Prior Years
972.2
Outlays
in 1995
^
To be spent in
Future Years
621.4
Unspent Authority
for Outlays in
Future Years
974.5
01/ 24/94
22. 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 Budg
et 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 Federal entities
have been off-budget. 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 author
ity for the budget. The off-budget Federal entities con
duct programs of the same type as entities included
in the budget.
The off-budget Federal entities consist of the two
social security trust funds, old-age and survivors insur
ance and disability insurance, and the Postal Service
fund. Social security was removed from the budget in
1985 and the Postal Service fund in 1989. The Budget
Enforcement Act of 1990 excludes these entities from
the deficit targets and other enforcement calculations
except for the administrative expenses of social secu
rity. Other entities were off-budget in earlier years but
were moved onto the budget under subsequent law.
The following table compares the total Federal Gov
ernment 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 1995 the off-budget receipts are an estimated 26
percent of total receipts, and the off-budget outlays are
an estimated 19 percent of total outlays. The 1995 total
TABLE 22-1. COMPARISON OF TOTAL, ON-BUDGET, AND OFF-BUDGET TRANSACTIONS i
Receipts
Fiscal Year
Total
On-budget
.......................................
.......................................
.......................................
.......................................
.......................................
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
Outlays
Off-budget
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 .......................................
1994 estimate.........................
1,031.3
1,054.3
1,090.4
1,153.5
1,294.1
1995 estimate.........................
1996 estimate ........................
1997 estimate ........................
1998 estimate........................
1999 estimate........................
1,353.8
1,427.3
1,505.1
1,586.9
1,672.9
1970
1971
1972
1973
1974
Surplus or deficit (-)
Off-budget
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
-6.0
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
841.6
912.9
281.7
293.9
302.4
311.9
336.2
1,252.7
1,323.8
1,380.9
1,408.2
1,483.8
1,027.6
1,082.1
1,128.5
1,141.6
1,203.0
225.1
241.7
252.3
266.6
280.9
-221.4
-269.5
-290.4
-254.7
-234.8
-278.0
-321.8
-340.5
-300.0
-290.1
56.6
52.2
50.1
45.3
55.3
998.6
1,052.6
1,107.6
1,165.5
1,227.8
355.2
374.7
397.5
421.4
445.1
1,518.9
1,596.9
1,691.4
1,777.4
1,854.0
1,223.6
1,288.9
1,373.1
1,444.8
1,506.5
295.4
308.0
318.3
332.7
347.6
-165.1
-169.6
-186.4
-190.5
-181.1
-225.0
-236.3
-265.5
-279.2
-278.6
59.9
66.7
79.2
88.7
97.6
Off-budget
i0ff-budget transactions consist of the social security trust funds for all years and the Postal Service fund as of 1969.
269
270
deficit of $165.1 billion consists of an off-budget surplus
of $59.9 billion and an on-budget deficit of $225.0 bil
lion. The off-budget entities in total have had a growing
surplus since the middle 1980s, and the surplus is esti
mated to grow each year throughout the projection pe
riod.
The Federal Credit Reform Act of 1990 refined budget
concepts by distinguishing between the costs of credit
programs, which are budgetary in nature, and the other
transactions of the credit programs, which are not. For
1992 and subsequent years, the costs of direct loans
and loan guarantees are estimated as the present value
of expected cash outflows from the Government less
the present value of expected cash inflows to the Gov
ernment. These costs are equivalent to the outlays of
other Federal programs and are included in the budget
as outlays of credit program accounts when the Federal
Government makes a direct loan or guarantees a pri
vate loan. The cash transactions with the public—the
disbursement and repayment of loans, the payment of
default claims, the collection of interest and fees, and
so forth—are recorded in separate financing accounts.
The transactions of the financing accounts do not rep
resent costs to the Government above and beyond those
costs that are already included in the credit program
accounts. Therefore, they are non-budgetary in concept,
and the Act excludes them from the budget. Because
the financing accounts are non-budgetary in concept,
they are not classified as off-budget Federal entities.
The budget outlays of credit programs thus reflect
only the cost of Government decisions, and they reflect
this cost when the Federal credit assistance is provided.
This enables the budget to better fulfill its purpose
of being a financial plan for allocating resources among
alternative uses: comparing the cost of a program with
its benefits, comparing the cost of credit programs with
the cost of other spending programs, and comparing
the cost of one type of credit assistance with the cost
of another type. Since the financing accounts do affect
the Government's cash position, they are a means of
financing the deficit as explained in Chapter 13 of this
volume, “Federal Borrowing and Debt.” 1
i Credit reform is further explained in Chapter 10 and in Chapter VIII.A of the 1992
Budget, Part Two, pp. 223-26.
ANALYTICAL PERSPECTIVES
Insurance programs have economic effects and pose
a financial risk to the Government, but under present
budgetary accounting they do not result in budget out
lays unless the insured event occurs and the Govern
ment pays a claim. In this respect their budgetary
treatment is similar to the treatment of loan guaran
tees before the Credit Reform Act. As discussed in
Chapter 10, “Underwriting Federal Credit and Insur
ance,” credit reform principles could be applied to de
posit insurance, pension guarantees, and other insur
ance programs.
Other activities related to the Federal Government
are outside the scope of budget outlays because of their
inherent nature. The Government-sponsored enter
prises, which are mostly financial intermediaries, are
excluded from the budget on the grounds that they
are privately owned and controlled. However, because
of their close relationship to the Federal Government,
detailed estimates of their activities are reported in
a separate chapter of the Budget Appendix and an as
sessment of the risk they pose to the Government is
presented in Chapter 10.
Taxation provides the Government with income,
which is included in the budget as “receipts” and which
withdraws purchasing power from the private sector
in order to finance Government expenditure. In addition
to this primary effect, taxation has important effects
on the allocation of resources among private uses and
the distribution of income among individuals. These
effects are caused by the rates and other structural
characteristics of each tax. The effects of taxation on
resource allocation and income distribution are analo
gous to the effects of outlays. Some of these effects
have been defined as “tax expenditures” and are dis
cussed in Chapter 6, “Tax Expenditures.”
Some types of regulation have economic effects that
are similar to budget outlays by requiring the private
sector to make expenditures for specified purposes such
as safety and pollution control. Regulatory management
is discussed in a section of Chapter 4.C in the Budget.
23. CROSSCUTTING CATEGORIES
This chapter presents discretionary spending for cer
tain crosscutting categories. These categories are in
tended to show the impact of different agency programs
on broad areas of public interest. Although the table
included in this chapter presents discretionary spending
only, the crosscutting approach could also be used in
combination with mandatory spending and tax expendi
tures to provide a more complete measure of the impact
of government spending.
Agency programs can potentially apply to multiple
crosscutting categories. When analyzing category totals,
the amount of spending for these multiple purpose pro
grams can be taken into account. The table adjusts
for these amounts by removing multiple program-tocategory assignments between different categories
based on an assessment of the primary purpose of the
program.
TABLE 23-1. CROSSCUTTING CATEGORIES i
(Discretionary funding; in billions of dollars)
1993
1994
1995
1996
1997
1998
1999
BA
OL
BA
OL
158.0
148.2
-18.2
-16.5
160.2
158.0
-19.6
-18.4
167.1
159.2
-20.9
-19.6
169.5
166.7
-23.2
-21.6
169.7
169.6
-24.6
-23.6
171.0
171.1
-25.9
-25.2
173.2
173.0
-27.5
-26.6
BA
OL
139.8
131.6
140.6
139.6
146.2
139.6
146.4
145.1
145.1
146.0
145.1
145.9
145.8
146.4
BA
OL
Adjust for multiple purpose programs between categories............................. ... BA
OL
111.5
105.1
-37.1
-36.7
116.2
113.9
-38.9
-39.2
124.3
116.8
-41.8
-39.4
137.6
125.2
-43.1
-42.7
144.7
131.1
-44.3
-44.1
147.6
133.2
-44.7
-45.1
151.8
137.1
-45.3
-45.7
Promoting Individual Independence, n e t.............................................................
BA
OL
74.4
68.4
77.4
74.7
82.5
77.4
94.6
82.4
100.4
87.1
102.9
8 .1
8
106.5
91.4
Programs that assist the Environment and Natural Resources Management..... ...
BA
OL
BA
OL
31.4
28.7
-4.1
-3.2
33.6
31.4
-4.3
—
3.6
35.2
33.0
-4.5
-3.7
35.7
34.9
-4.4
-4.1
35.7
35.7
-4.5
-4.2
35.8
35.7
-4.5
-4.3
36.4
35.7
-4.5
-4.4
Environment and Natural Resources Management, n e t...................................... ...
BA
OL
27.3
25.6
29.3
27.8
30.7
29.3
31.3
30.9
31.3
31.4
31.4
31.4
31.9
31.3
National Defense programs.................................................................................
BA
OL
276.1
292.4
261.7
280.6
264.2
271.1
255.9
261.6
252.6
257.0
259.2
257.1
265.7
258.1
International Affairs programs..............................................................................
BA
OL
2 .2
1
2 .6
1
2 .8
0
2 .8
1
2 .8
0
20.9
2 .6
0
2 .2
1
2 .6
0
21.3
2 .6
0
2 .2
1
20.7
21.3
All Other Programs..............................................................................................
BA
OL
87.0
85.2
89.8
89.7
89.2
89.5
90.4
91.4
92.1
92.1
85.0
84.6
83.8
83.1
Adjust for multiple purpose programs not otherwise accounted fo r...............
BA
OL
-86.2
-62.3
-85.8
-84.0
-87.2
-85.2
-87.1
-86.5
—
85.9
-87.0
-83.1
-84.0
-83.1
-83.3
BA
OL
539.6
542.4
533.8
550.1
546.5
542.4
552.1
546.1
556.3
547.8
561.2
544.4
571.2
548.3
Programs that promote Economic Growth..........................................................
Adjust for multiple purpose programs between categories.............................
Economic Growth, n et..........................................................................................
Programs that promote Individual Independence ................................................ .
Adjust for multiple purpose programs between categories.............................
i Budget authority indudes obligation limitations that drive outlays.
271
HIGH RISK AREAS
24. PROGRESS REPORT: CORRECTING HIGH RISK AREAS
The High Risk Program focuses attention and re
sources on eliminating major risks confronting Federal
agencies and programs. High risk areas are those weak
nesses that warrant top-level attention at the agency
and by the Congress. OMB compiles the List and pub
lishes it in the President's Budget in order to assure
attention to these matters and to provide a tool for
public accountability.
In 1993, agencies generally continued to make good
progress in correcting high risk areas. OMB’s assess
ment of agency efforts appears in the last column of
Table 24-1 below. Of the 104 high risk areas included
on the List throughout 1993, OMB concluded that:
• Agencies have made sufficient progress to warrant
deletion of 25 areas from the List. These areas
are assessed with a “D”.
• In 22 areas, agencies have made significant
progress. This means that the agency has pro
duced a corrective action plan that, if imple
mented, will either eliminate the risk or reduce
the (risk to an acceptable level; and has imple
mented enough of the plan to have concrete, meas
urable accomplishments. These areas are assessed
with a "1”.
• In 47 areas, agencies have active efforts underway
to improve progress. This means that the agency
has undertaken a serious effort to eliminate the
risk or reduce the risk to an acceptable level. Im
plementation of the corrective action plan is on
the right track, but the plan may need additional
refinement; or, the agency has produced an accept
able corrective action plan, and is proceeding with
implementation, but has not gotten far enough
to prove that the risk has been reduced or the
problem solved. These areas are assessed with a
« 2 ”
• In eight areas, OMB has reservations about the
adequacy of agency progress anchor plans. This
means that the agency has not produced an ade
quate corrective action plan; or, has failed to make
reasonable progress towards implementing its
plans. These areas are assessed with a “3”.
• One area should be removed from the List because
unilateral action by the agency to correct the prob
lem is not feasible. The Administration will con
sider whether legislative changes (to the Single
Audit Act) are needed in 1994.
Seven areas are being added to the List this year,
and two areas are being merged. Thus at the beginning
of 1994, the High Risk List includes 84 areas. The
Administration remains committed to ensuring that
these issues receive priority attention as part of the
ongoing effort to improve management of Federal agen
cies and programs.
Table 24-1. PROGRESS REPORT: HIGH RISK AREAS BY AGENCY
DEPARTMENT OF AGRICULTURE
High Risk Area
Progress to Date and Next Steps
Assess
ment
Farmers Home Administration (FmHA) FmHA has made some improvements to credit management through (i) work-out of large loans in excess
of $1M; (ii) expanded use of contract appraisals; and (iii) standard lender agreements for farm and
and Rural Development Administration
housing programs. However, FmHA is no longer using the Strategic Business Plan completed in June
(RDA) Loan Programs: High total delin
quencies ($9B) and high delinquency
rates (17 percent) in 1993.
There are $53B in outstanding FmHA and
RDA loans. At risk: up to $12.8B identi
fied in allowance for doubtful accounts.
3
1992, which contained plans to improve credit management through a second level review of all loans,
separate underwriting units, and centralized servicing. FmHA is developing a new plan based on the
concept of “supervised credit.”
Next steps: OMB believes that FmHA must (i) determine a course of action to resolve internal control
problems and improve underwriting and servicing of farm and housing loans, including reviewing op
tions for centralized servicing of single family housing loans; (ii) review options for escrow accounting in
its single family housing program; and (iii) develop an Information Systems Plan to guide FmHA/RDA
automation efforts in light of the proposed USDA reorganization.
275
276
ANALYTICAL PERSPECTIVES
DEPARTMENT OF AGRICULTURE—Continued
High Risk Area
Progress to Date and Next Steps
Food and Nutrition Service (FNS): Food FNS has undertaken significant steps to address food stamp trafficking and fraudulent retailer activity,
Stamp illegal trafficking for cash, drugs,
and weapons; and fraudulent retailer ac
tivity.
1994 budget includes $25B for Food Stamp
Program. At risk: ability to detect both
food stamp trafficking by individuals and
fraudulent retailer activity, with an esti
mate of over $100M in benefits diverted
annually.
Assess
ment
1
including (i) procuring additional equipment to enhance trafficking investigations; (ii) establishing use
of the False Claims Act as a sanction tool for trafficking cases (resulting in settlements of $1.1M); and
(iii) updating requirements for processing investigative sanctions against authorized retailers. USDA’s
Inspector General, in conjunction with FNS staff, has undertaken an aggressive program to detect
fraudulent retailer activity, including: (i) analyzing sales and redemption data for irregularities; and (ii)
detecting ineligible use and illegal selling of food stamps. In 1993, the OIG conducted 783 food stamp
fraud investigations resulting in 750 convictions and $10M in fines and penalties. Additionally, during
1993, the implementation of electronic benefit transfer (EBT) to distribute food stamps was enhanced.
FNS now authorizes States to implement EBT systems and is developing standard EBT report formats
on retailers with suspicious food stamp activity.
Next steps: (i) Analyze and revise the computer generated violation prone profile of authorized retailers,
(ii) Increase the number and collections of False Claims Act civil prosecution settlements and judge
ments. (iii) Expand use of the field automation system by investigators from 33 percent to 40 percent.
(iv) Issue an evaluation report of EBT in Maryland which includes an analysis of EBT vulnerabilities
for trafficking.
Federal Crop Insurance Corporation FCIC has undertaken initiatives to strengthen management oversight, establishing field compliance of
(FCIC): Overpayment o f claims.
fices to increase monitoring of reinsured companies, and improving two data reporting systems. To en
FCIC has a $1B annual operating level. At
risk: $100M in losses paid to reinsurance
companies.
1
hance this effort, in 1993 FCIC (i) hired a reinsurance accounting specialist to establish standards for
conducting and implementing ongoing evaluations of reinsurance companies* annual financial state
ments; (ii) began redefining qualifications criteria for the standard reinsurance agreement; and (iii)
began using methodology (error rate measurement) to evaluate reinsurance company performance, be
ginning in crop year 1995.
Next steps: (i) Continue to implement financial evaluation standards and qualifications criteria, (ii) Use
error rate measurement to evaluate reinsurance company performance.
FmHA, Rural Rental Housing Program
(Multi-family loans and Rental Assist
ance): Multi-family housing (MFH) pro
gram lacks adequate oversight and inter
nal controls.
Outstanding MFH loans total $10.8B, with
$17M delinquent in 1993. 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, possible reorganization and centralization of the MFH program, amended regulations,
and new legislation. In 1993, FmHA (i) completed basic financial analysis training for its National Of
fice and field employees and trained 400 employees in advanced financial analysis; (ii) published regu
lations for improved underwriting; and (iii) proposed regulations to (a) require that project reserve ac
counts be deposited in supervised bank accounts, and (b) limit profit layering, subsidy layering and
other activities associated with Identities of Interest problems.
Next steps: In 1994, FmHA will (i) continue advanced training program; (ii) finalize the proposed rules;
(iii) propose legislation to permit tenant wage matching; (iv) review centralization of the MFH program
into the State offices as part of USDA reorganization; and (v) complete cost control pilot to test whether
public bids, as opposed to negotiated contracts, will result in lower construction costs.
Department-wide financial systems: Inad Long-term, pervasive problems in the operation of Department-wide and many bureau-specific financial
equate financial system controls, plan
ning and implementation, and inaccurate
financial reports.
USDA administers programs which had
authorized budget authority of $68. IB in
1993 and direct loan authority of $11B.
At risk: loss or misapplication of budget
resources due to unreliable management
information.
2
A
systems underlie inaccurate reporting and ineffective controls. The Secretary’s 1992 FMFIA Report
could not provide overall assurance that USDA complied with either internal control or financial sys
tem requirements. Furthermore, nine bureaus did not certify as to the accuracy of their 1992 financial
statements and another six bureaus provided conditional certifications. The Department recognizes that
new approaches are needed to design and implement modem integrated financial systems. A central
team of bureau-experienced specialists has produced a systems vision and strategy report. OMB has re
viewed this document and supports it, and will continue to review other key planning documents pro
vided by the team over the next 12 months. ADDED TO THE HIGH RISK LIST.
Next steps: During 1994, USDA plans to begin to procure and install a new general ledger, funds control
and cost accounting system. The core system is targeted to be implemented by 1996; most bureau-spe
cific systems would begin to be modernized and integrated with the new system during the two years
following core implementation.
DEPARTMENT OF COMMERCE
High Risk Area
DOC: Computer site security is weak.
1994 budget includes $621M for ADP. At
risk: assurance that this investment and
DOC data are protected from loss.
Progress to Date and Next Steps
ADP and other security for sensitive and classified systems will continue to have associated risks but the
methodology, plans, oversight and monitoring instituted by the Department in this area are now ade
quate. DELETED FROM THE HIGH RISK LIST.
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24. PROGRESS REPORT: CORRECTING HIGH RISK AREAS
DEPARTMENT OF COMMERCE—Continued
High Risk Area
Progress to Date and Next Steps
DOC: Financial systems are not in compli
In 1993, DOC (i) completed a technical feasibility analysis and in-depth functional evaluation of another
agency's financial system and decided to drop it from consideration; (ii) conducted market research on
off-the-shelf core financial systems and developed a source selection plan to evaluate bidders; (iii) estab
lished teams which have started working towards acquiring new procurement, property, and travel sys
tems; and (iv) identified a paperless personnel system (PERSACTION) at DOD which DOD has agreed
to modify for DOC and other USDA National Finance Center payroll system clients.
ance with govemmentwide standards
and are seriously outdated, fragmented,
inadequately controlled, and costly and
difficult to maintain.
DOC financial systems process $3.4B annu
ally. At risk: assurance that these funds
are being accounted for in an accurate
and timely fashion.
1994 budget provides $189.7M for procure
ment of NWS systems. At risk:
$50M-$60M in additional annual operat
ing expenses if systems do not perform
as specified.
2
Next steps: (i) Acquire a new Department-wide core financial system using off-the-shelf software during
1994. (ii) Conduct market research on procurement and property systems to be acquired in 1995. (iii)
Start a pilot test of the PERSACTION system at two or three locations in 1994. (iv) Acquire a travel
system in 1994 for pilot implementation in 1995. (v) Develop the Commerce Financial Reporting System
to implement the reporting requirements of the CFOs Act. (vi) Correct financial internal control and re
lated financial reporting problems.
National Weather Service (NWS), National Several major systems are involved in NWS’ modernization effort, making it a complex and costly under
Oceanic and Atmospheric Administration
taking. NWS has experienced contract cost overruns and missed deadlines, but NWS management has
(NOAA): Major systems acquisition prob
made improvements, including resolving major contract disputes. Existing systems and equipment are
lems delaying NWS modernization.
Assess
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2
outdated and in many instances are becoming saturated. The new systems being delivered are perform
ing well and are producing significantly improved weather forecasts and warnings. In some instances
though, technical problems have prevented NWS from meeting original commissioning schedules. An
essential issue is operations management and logistics. Actions to prevent overcharging for spare parts
and improved logistics planning are being pursued. One of the largest components of NWS' $4B mod
ernization program, the Next Generation Weather Radar (NEXRAD) program, continues to experience
some problems. Automated Surface Observation System (ASOS) is working well and is generally per
forming as intended.
Next steps: The first NWS NEXRAD system is scheduled to be commissioned by July 1994; complete de
ployment of NWS NEXRAD systems is planned for December 1996; complete confirmation of oper
ational capabilities at all planned weather forecast offices and river forecast centers is planned for
1999.
NOAA: Geostationary Operational Environ Launching the GOES satellite is essential because the current satellite’s useful life ends in 1995. The
mental Satellite (GOES) technical devel
opment problems.
1994 budget provides $123.7M for GOES.
At risk: the loss of weather estimating
capability.
1
GOES project had been hampered by cost overruns and schedule slippage but a considerable portion of
the necessary corrective actions have been implemented. A change in management has occurred; more
realistic schedules have been developed; operational requirements (meteorological requirements) have
been met; and GOES is within budget.
Next steps: Launch to occur by June 1994, and initial operational capability is projected for November
1994.
DEPARTMENT OF DEFENSE
High Risk Area
Progress to Date and Next Steps
DoD: Supply operations are inadequate due
DoD’s actions in 1993 to reduce its inventory levels included: (i) issuing revised policies to improve re
quirements determination, acquisition, and retention of materiel; (ii) consolidating inventory control op
erations; (iii) competing spare parts procurement; and (iv) improving the distribution of existing stock.
These actions have decreased materiel budgets and inventory levels. As a result, the ratio of active to
inactive stock increased from 2:1 in 1988 to nearly 4:1 in 1992, indicating a more efficient stock system.
Disposal of outdated or unneeded supplies has increased from $6.4B in 1988 to $20.3B in 1992.
to inventory growth and weak manage
ment of inventories.
DoD supply inventory almost $80B in 1993.
At risk: $100M.in potential loss or theft.
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2
Next steps: (i) Issue war reserve materiel policy, (ii) Develop revised supply operations performance meas
ures. (iii) Implement better and more standardized logistics information systems, (iv) Improve visibility
of existing assets to reduce unnecessary orders, (v) Expand use of accepted commercial practices. By
1997, DoD plans to reduce the inventory's value from $80B to $64B.
DoD: Information technology data stand The Department continues to take action to correct data standardization, telecommunications, and secu
ardization, telecommunications and secu
rity are deficient.
The $9.5B DoD Information Technology
budget for 1993 included $2.5B for devel
opment and modernization. At risk: use
of old and inefficient processes, and un
authorized access or misuse of sensitive
Defense data.
Next steps: In 1994, continue completion of short-term and long-term planned milestones. All elements of
the Defense Information Systems Network are to be completed and operational by 1997; all DoD sys
tems will utilize standard data elements by 1997.
DoD: Contract administration controls over DoD property in the possession of private contractors includes facilities, materiel, and special tooling and
DoD property in private contractor pos
session inadequate.
$83. IB in property and facilities in posses
sion of DoD contractors. At risk: $17M in
potential loss or theft.
2
rity deficiencies. For example, telecommunications deficiencies are being addressed through the devel
opment of a new Defense Information Systems Network. DoD has made good progress in correcting
identified deficiencies by: (i) developing standard security measures to precede any transmission of mes
sages; (ii) establishing a Center for Information Systems Security; (iii) performing a bottom-up informa
tion security policy review; and (iv) publishing procedures for standardizing data elements. [The scope
of this high risk area has been redefined; it was previously characterized as part of the Corporate Infor
mation Management initiative.]
equipment; this property is located at over 4,000 contractor sites. DoD has made significant progress in
strengthening control and accountability over its contractors. Corrective actions included increasing
control over contractor access to the DoD property management system, which resulted in better mon
itoring of contractor reutilization and disposal of property. In addition, the Department has imple
mented new regulations, guidance, and training programs to increase its administrative control over
contractor use of DoD property. DELETED FROM THE HIGH RISK LIST.
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278
ANALYTICAL PERSPECTIVES
DEPARTMENT OF DEFENSE—Continued
High Risk Area
Progress to Date and Next Steps
DoD: Management, reporting and budg In June 1993, DoD completed an OMB-requested review of service contracting and found no major prob
etary controls over contracted advisory
and assistance services (CAAS) need
strengthening.
CAAS contracts estimated at $1.5B annu
ally. At risk: $15M in potential fraud or
waste.
DoD: Financial accounting processes and
systems produce inaccurate and unreli
able information for managing the De
partment’s real and personal property,
inventories, and other activities. [This
high risk area has been expanded to en
compass all DoD financial accounting
processes and systems from that address
ing real and personal property only.]
DoD’s 1994 planned financial systems in
vestments and operations total over $1B.
At risk: ability to obtain accurate and
complete financial statements and other
managerial information for DoD; control
over resources lost or stolen.
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lems were solely related to CAAS. This review validated previous corrective actions, which included
new procedures that (i) 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) re
quire an annual assessment to the Under Secretary of Defense (Acquisitions) of component implementa
tion of CAAS policy and procedures. DOD had also distributed a “Guide to Contracted Advisory and As
sistance Services,” to help users of contractor support services better understand the procedures for ac
quiring and using CAAS. DOD funding for CAAS was reduced from $1.6B in 1989 to $1B in 1993. DE
LETED FROM THE HIGH RISK LIST.
GAO, military audit agencies, and DoD Inspector General audits continue to identify serious weaknesses
in DoD’s financial accounting systems and processes. Requirements of the Chief Financial Officers
(CFOs) Act have highlighted DoD's inability to produce auditable financial statements for the Army,
Air Force, and Defense Business Operations Fund (DBOF). Due to the severity and pervasiveness of
these Department-wide financial accounting problems, DoD must implement immediate corrective ac
tions and aggressively make long-term improvements.
2
The Department must develop integrated financial accounting procedures and systems to control, track,
and value DoD assets, including real and personal property and inventories, liabilities, and operating
activities for financial reporting purposes, and then reconcile accounting data with supporting logistics
and procurement systems.
DoD has planned numerous system and procedural changes to facilitate the preparation of financial state
ments required by the CFOs Act and better coordinate the accounting, procurement, and logistics func
tions. In 1992, DoD centralized finance and accounting functions in the Defense Finance and Account
ing Service (DFAS). However, the quality and accuracy of the accounting data provided to DFAS from
the various feeder systems and processes must be significantly improved. A system was selected from
existing property systems to be migrated for real and personal property, and testing will be conducted
in 1994. In 1993, DoD developed the DBOF Improvement Plan to identify the numerous steps required
to establish the financial accounting processes and systems needed to properly manage DoD inventory.
Next steps: (i) Complete testing and installation of migratory property system in DFAS and other DoD ac
tivities. (ii) Fully implement recommendations of the DBOF Improvement Plan, (iii) Develop minimal
functional and financial requirements for other accounting systems that can be selected and migrated
from existing systems to provide critical information, (iv) Validate accuracy of underlying accounting in
formation. (v) Continue to resolve material weaknesses relating to accounting policies and procedures,
internal controls, and financial management systems identified through financial statement audits, (vi)
Implement migratory accounting systems at DoD agencies and military installations.
DEPARTMENT OF EDUCATION
High Risk Area
ED student financial aid (SFA) program
management: Federal Family Education
Loan (FFEL), formerly the Guaranteed
Student Loan (GSL), and other SFA pro
gram abuses, fraud, and significant man
agement
weaknesses.
Department’s
“ gatekeeping” procedures for determining
which schools can participate in Federal
student aid programs have been weak,
leading to high default levels. Guaranty
agencies have little capital at risk, with
Federal guarantees now up to 98 per
cent.
1994 appropriations include $12B for stu
dent aid programs. At the end of 1993,
outstanding guaranteed student loans to
talled over $60B. At risk: new loan de
faults, which have reached some $2.5B
annually.
Progress to Date and Next Steps
In 1993, default costs dropped to $2.6B from $3.2B in 1991. In 1993, ED awarded the National Student
Loan Data System (NSLDS) contract to improve information on guaranteed student loans, and estab
lished conditional certification for schools to simplify process for removing poorly performing schools
from participation in program. Closure of 1,078 schools in the last three years is directly attributable to
the default reduction statutes, other compliance and oversight activities, and the institutions’ loss of ac
creditation or State licensure. Still, General Accounting Office and Office of Inspector General reports
continue to criticize aspects of the FFEL program structure and overall SFA management. While efforts
to improve management are being made, the complicated FFEL program structure and provisions, such
as the number of participants (schools, guaranty agencies, lenders, and secondary markets), continue to
present serious problems. In 1993, Congress enacted a Federal direct student loan program which will
phase down guaranteed loans in favor of Federal direct loans.
Next steps: (i) Continue intensive monitoring activities of guaranty agencies and lenders and manage
their orderly phase-out. (ii) Implement 1992 amendments for stricter accreditation, eligibility, and cer
tification controls over schools for all SFA programs, including Pell Grants, (iii) Continue to implement
Postsecondary Education Participant System to track institutional eligibility and monitoring activities,
(iv) Continue management improvements in guaranteed loan program as the law shifts departmental
focus to new direct loan program, (v) Publish regulations to implement the Amendments to Higher Edu
cation Act (HEA) of 1992. (vi) Implement legislation (Student Reform Act of 1993) to create direct loan
program, (vii) Continue to implement NSLDS system.
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24. PROGRESS REPORT: CORRECTING HIGH RISK AREAS
DEPARTMENT OF EDUCATION—Continued
High Risk Area
Progress to Date and Next Steps
ED financial management systems: Inabil
ED’s financial systems deficiencies are due to: (i) erroneous data in subsidiary mixed systems; and (ii) in
compatible data exchanges between subsidiary systems and technically obsolete primary accounting
system. In 1993, the Department continued reconciling data in the payment and the accounting sys
tems for all fund accounts. Within the systems redesign project: (i) a feasibility study was performed to
determine whether custom or existing software would best suit ED's needs; (ii) functional requirements
and data requirements were completed; and (iii) a detailed workplan for redesign steps was completed.
In addition, subsidiary summary data modules within two feeder systems—Federal Family Education
Loans and payroll/administrative payments—were implemented.
ity to provide accurate and useful data
for decision making and to produce reli
able Department-wide financial reports.
In 1994, $31B in loan subsidies, grants and
administrative costs is supported by
these systems. At risk: assurance that
reliable information for reporting and ef
fective management of these programs is
available, and that investments in new
systems will not be negated by poor data
integrity.
ED-wide audit follow-up: Audit follow-up
improvements needed.
ED receives audit reports with monetary
findings of $500M annually. The number
of audit reports ED receives is expected
to double in 1994 due to implementation
of the Higher Education Reauthorization
Act of 1992. At risk: collection of funds
owed to ED if audit follow-up is not time
ly or effective.
ED-wide program monitoring: Compliance
and performance monitoring inadequate.
Departmental 1994 budget is over $3 IB. At
risk: assurance that these funds are
being spent effectively.
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2
Next steps: In 1994 ED plans to (i) implement subsidiary summary data modules for the remaining feed
er systems; and (ii) award a contract to install, test and modify a new core financial system.
ED’s Deputy Secretary commissioned a senior-level committee to address longstanding audit follow-up
problems and prepare for anticipated increase in audit workload. The committee has developed a De
partment-wide post audit mission statement and strategic plan, including milestones. In addition, ED
increased the focus on priority audits by (i) streamlining the resolution of low dollar value audits; (ii)
publishing a validation strategy for follow-up on audits of ED management of programs; and (iii) mak
ing improvements to the automated Common Audit Resolution System (CARS). However, ED’s backlog
of audit reports unresolved for more than six months is growing (from 130 on March 31, 1993 to 182 on
September 30, 1993), and the Office of Inspector General has reported that ED's efforts to implement
significant audit recommendations in a timely manner need improvement.
2
Next steps: ED to develop and implement policies on (i) the best use of Single Audit Act audits; (ii) a riskbased approach to conducting and resolving Student Financial Aid and proprietary school audits; (iii)
receiving and resolving anticipated Lender audits; and (iv) improving the Department’s internal audit
resolution and corrective action completion performance.
The Department-wide Monitoring and Performance Measures Team (MPMT) was re-chartered to provide
advice on performance-based management to ED’s Reinvention Coordinating Council. The MPMT will
now focus on strategic planning, performance measurement, the development and use of performance
data for improved management and program performance, and monitoring procedures. The MPMT has
(i) developed monitoring standards; (ii) proposed substantially revising ED’s internal directive on dis
cretionary grants monitoring; (iii) held a two day strategic planning session; and (iv) supervised devel
opment of performance measures for five pilot programs.
2
Next steps: The Department’s proposal to develop a core set of performance measures was accepted as a
National Performance Review “reinvention laboratory.” ED will develop performance measures for all
appropriate programs and require its principal offices to submit annual monitoring plans. Many of the
corrective actions scheduled for 1993 have been delayed until 1994, including: (i) issuing a guidebook on
development and use of performance measures; (ii) developing a Department-wide directive on formula
grants monitoring; and (iii) improving Department-wide training and reporting requirements for mon
itoring.
ED-wide computer security: Security of Of the 27 major financial computer systems, 24 have now had security reviews. The remaining three re
computer
viewed.
systems
inadequately
re
D
views are nearing completion. An updated ADP Security Manual has been drafted and is now in clear
ance. ED will continue working to update the ADP Technical Controls Handbook detailing security pro
cedures for local and wide area networks. DELETED FROM THE HIGH RISK LIST.
DEPARTMENT OF ENERGY
High Risk Area
Progress to Date and Next Steps
Reconfiguration of DOE nuclear weapons Significant world events have resulted in major reductions to U.S. nuclear weapons stockpile require
ments and substantially impacted DOE’s strategy for reconfiguring its weapons complex. Since the De
complex: Weapons complex must be
reconfigured as policy decisions are made
on reducing the nuclear weapons arsenal.
1994 budget includes $4.7B for nuclear
weapons-related programs. At risk: nu
clear deterrence capabilities.
partment does not have a current requirement to produce nuclear weapons, it now has sufficient time
to reconfigure the complex to meet future national security requirements. DOE has taken steps to en
sure it can produce tritium if needed. A Capability Assurance Program was implemented to assure
DOE maintains the necessary research, development, testing and production technologies essential to
maintaining the current stockpile, providing safety and reliability to the stockpile, and designing and
producing new warheads should national security requirements so dictate. DELETED FROM THE
HIGH RISK LIST.
Next steps: Continue implementing Capability Assurance Program and consolidate most non-nuclear
manufacturing into one dedicated facility.
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ANALYTICAL PERSPECTIVES
DEPARTMENT OF ENERGY—Continued
High Risk Area
Progress to Date and Next Steps
Assess
ment
Environmental management: DOE faces
Significant environmental management problems exist at DOE facilities. DOE is working to meet the re
quirements of 74 enforceable compliance and cleanup agreements. In 1993, DOE completed cleanup of
206 contaminated areas; initiated a Benchmarking for Cost Improvement Study to identify cost savings
in cleanup activities; and introduced new initiatives to address the highest priority problem—tank
waste cleanup at the Hanford site.
2
large and complex environmental clean
up and waste management problems at
many of its facilities.
1994 budget! includes $6.2B for environ
mental restoration and waste manage
ment activities. At risk: potential long
term adverse impact to workers, the pub
lic or the environment; and failure to
comply with external environmental reg
ulations anchor agreements.
Next steps: (i) Strengthen integrated planning efforts to implement program objectives outlined in Envi
ronmental Restoration and Waste Management 5-Year Plan, (ii) Emphasize broader stakeholder in
volvement in setting program priorities, and continue to work with regulators to negotiate realistic
schedules that reflect risk-based priorities, (iii) Complete development of program performance meas
ures focusing on achieving outcomes, (iv) Increase Federal positions by 1200 to improve program execu
tion.
Nuclear safety: Safety deficiencies exist at DOE has undertaken several initiatives to improve safety. A Safety and Health 5-Year Plan, identifying
some DOE nuclear facilities.
1994 budget1 includes $1.8B to address
health and safety risks (both nuclear and
non-nuclear). At risk: protection of DOE
workers, the public and the environment.
2
resources and priorities for improvements, is being implemented. During 1993, (i) an Occupational Safe
ty and Health Worker Protection Pilot Program was established at four DOE sites; (ii) a Performance
Indicator and Trending Program to help assess and report progress in improving safety performance
was implemented; (iii) a comprehensive epidemiological database was established to better define the
magnitude of health and safely problems; (iv) a memorandum of understanding was developed with the
Occupational Safety and Health Administration (OSHA) and the Department of Health and Human
Services to provide for effective govemmentwide coordination in the area of safety and health and a
credible external analytical epidemiology research program; (v) upgraded nuclear safety requirements
were issued; and (vi) a Spent Fuel Working Group was established, which assessed 66 facilities storing
spent nuclear fuel and other nuclear materials to identify problems with unsafe storage conditions.
Next steps: (i) Implement nuclear safety standards upgrade project, (ii) Develop comprehensive Depart
mental safety and health policy, (iii) Implement OSHA regulations at all Departmental sites.
Nuclear waste storage and disposal: Nu DOE has experienced delays in implementing nuclear waste storage and disposal projects at the Waste
clear waste storage and disposal capabil
ity is inadequate.
1994 budget includes $581.4M for these
program areas. At risk: long-term stor
age and disposal of nuclear waste gen
erated by Federal and commercial facili
ties.
2
Isolation Pilot Project (WIPP) in New Mexico and Yucca Mountain, Nevada. DOE is pursuing a strategy
for WIPP, whereby DOE laboratories will conduct demonstration testing of both simulated and real
transuranic waste in preparation for meeting certification criteria under development by EPA. At Yucca
Mountain, DOE is conducting site characterization to determine suitability as a repository for spent
fuel and high-level waste. During 1993, DOE also: (i) completed the Exploratory Studies Facility site
preparation and 200 feet of tunneling at Yucca Mountain; (ii) proposed establishing a revolving fund to
provide higher and more predictable funding levels, along with financial management controls, to per
mit more rapid scientific investigation in order to minimize total project costs; and (iii) completed initial
design study of a multi-purpose canister concept for the storage, transport, and disposal of spent nu
clear fuel.
Next steps: Continue with (i) site characterization of Yucca Mountain; (ii) laboratory testing to determine
suitability of WIPP for disposal operations; (iii) negotiation efforts to identify a voluntary host site for a
Monitored Retrievable Storage facility; and (iv) evaluation of the multi-purpose canister concept to miti
gate utility storage problems.
Reimbursable work: DOE reimbursable
work controls need improvement.
1994 budget includes $1.6B in apportion
ment authority for this function (exclud
ing Naval Reactors, Cost of Work for
Others). At risk: inappropriate perform
ance of reimbursable work and cost re
covery.
Contract/project management: Weaknesses
exist in contract and project management
for contractor operated DOE facilities.
1994 budget includes $17B for DOE con
tracting. At risk: assurance that contract
funds are being spent efficiently and ef
fectively.
DOE has completed a Department-wide review of its reimbursable work program. This review has vali
dated that substantial progress has been made to improve the financial and administrative controls in
this area. Although some deficiencies still exist in the classified reimbursable work area, they are not
considered of such a magnitude to warrant characterization as a high risk area. DELETED FROM THE
HIGH RISK LIST. Department will track as a material weakness.
D
Next steps: DOE will implement an annual training program on classified reimbursable work agreements
and issue technical review performance guidance.
DOE needs to reform contract and project management practices to reduce costs and improve contractor
performance. During 1993, to control contract costs, DOE froze contractor salaries, established a 10 per
cent reduction target for support services contracts in 1994, improved acquisition regulations, and es
tablished accountability guidelines for contractor civil penalties and management of indirect costs. DOE
also verified contributions to contractor employee pension plans and improved policies to better manage
these assets. In May 1993, the Secretary initiated a Contract Reform Team to conduct a top-to-bottom
review of existing contracting practices and make recommendations to increase contractor accountabil
ity, stimulate competition, and simplify administration.
Next steps: During 1994, DOE will begin implementation of key initiatives resulting from the rec
ommendations of the Contract Reform Team. Additionally, DOE plans to (i) incorporate improved ac
countability requirements in contracts for the management of DOE plans and laboratories; (ii) develop
and implement improvements to the Department's project management policy; (iii) implement a formal
change control process for major construction projects and major systems acquisitions; and (iv) establish
a program to place Headquarters personnel on-site to conduct contractor purchasing systems reviews at
selected facilities.
2
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24. PROGRESS REPORT: CORRECTING HIGH RISK AREAS
DEPARTMENT OF HEALTH AND HUMAN SERVICES
High Risk Area
Progress to Date and Next Steps
Health Care Financing Administration HCFA has implemented three new automated data systems, increasing the information available when
(HCFA): Medicaid management systems
making Medicaid budget forecasts. The new systems are: (i) State Plan Data (spDATA), an on-line sys
inadequate to estimate Medicaid costs
accurately.
1994 projected Federal cost of Medicaid
program is $87.4B. At risk: ability to es
timate Medicaid costs accurately. Mises
timates have been as high as 10 percent
of outlays.
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tem that tracks changes to State Medicaid plans as they are received in HCFA regional offices; (ii)
Budget Pressures Reporting System (BPRS), which monitors issues affecting Medicaid budgets, such as
court cases and proposed State legislation; and (iii) Medicaid Budget Forecasting System (MBFS),
which provides State level Medicaid budget estimates for key States. Information from all three sys
tems were used in development o f the mid-session review projections for the 1994 Medicaid Budget. TTie
first annual editions of two reports drawn from the spDATA system—National Comparisons and Medic
aid State-by-State Profiles—have been published.
Medicaid budget forecasts are now closer to actual expenditures. This may be due to economic changes
and other Medicaid program changes as well as the better forecasting information now available. DE
LETED FROM THE HIGH RISK LIST.
HCFA: Medicare making payments that
should be made by other insurers.
1994 projected cost of Medicare program is
$163.9B. At risk: hundreds of millions of
dollars annually in payments by Medi
care that should have been paid 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 1987-1991 identified Medi
care beneficiaries with other insurance, HCFA has updated beneficiary files to prevent further inappro
priate payments; and sent mistaken payments reports to contractors instructing them to begin the re
covery process. HCFA now publishes quarterly data match reports on employers contacted, recoveries
identified, and resultant savings. HCFA also reduced the backlog in mistaken payments identified but
not recovered, and issued demand letters for recoveries within statutory time limits. HCFA has issued
a request for proposal for an initial enrollment questionnaire.
1
Next steps: HCFA plans to: (i) continue data match for succeeding tax years and related recovery and pre
vention activities; (ii) evaluate effectiveness of recovery procedures; and (iii) award contract for the ini
tial enrollment questionnaire.
Indian Health Service (IHS): Insufficient fi
nancial controls and inattention to man
agement led to weaknesses in IHS pro
gram. Issues previously unresolved in
cluded: IHS was not paying lowest pos
sible price for contract health services;
not all IHS health facilities had achieved
quality assurance through accreditation;
IHS needed to improve collections where
beneficiaries have other insurance; and,
IHS needed to develop action plans to
address material weaknesses identified
in 1992.
IHS has implemented significant management reforms, leading to important program improvements. In
1993, IHS completed corrective action on the last major area of concern: contract health services. Sev
enty-nine percent of high volume IHS providers now offer IHS services at discounted rates, up from 72
percent in 1992. The opportunity for further improvement may be limited, given that IHS must fre
quently deal with providers who are the only health care source in isolated communities. In addition,
all IHS hospitals and health centers are now accredited, and 1993 third party collections reached a
record of $159M, up from $66M in 1988.
D
IHS has developed corrective action plans for material weaknesses identified in 1992 (procurement,
alcoholisnV substance abuse program, and advance payment system). No new material weaknesses
were identified in 1993. DELETED FROM THE HIGH RISK LIST.
1994 cost of IHS programs is $1.9B. At
particular risk: S350M funding for con
tract health services.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
High Risk Area
Progress to Date and Next Steps
Departmental Financial Systems: HUD
In 1993 HUD organized a Systems Integration Steering Committee to oversee the budget, resources,
project plans, and progress for all HUD system integration initiatives, and empowered each HUD As
sistant Secretary to develop systems plans based on their strategic business plans. In December 1993,
HUD issued Department-wide standards for systems development projects. Major integration projects
currently underway include: (i) core accounting, for which HUD has selected an off-the-shelf software
package; (ii) Section 8 financial systems (see next high risk area); and (iii) a Federal Housing Adminis
tration (FHA) mortgage insurance system, for which FHA is currently developing a project plan.
lacks an integrated financial manage
ment system, and existing systems suffer
from inefficiencies, incompatibilities, and
internal control problems.
1994 budget includes $30M for implemen
tation of HUD’s Financial Systems Inte
gration Plan. At risk: assurance that fi
nancial systems will provide timely, ac
curate, and useful financial information
to manage $160B in HUD insurance,
guarantees, subsidies, loans, and grants.
Next steps: (i) Finalize the mortgage insurance system project plan, with schedules and milestones, and
submit to the Steering Committee for approval, (ii) Implement the administrative core accounting soft
ware package by October 1, 1994.
Assess
ment
2
282
ANALYTICAL PERSPECTIVES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT—Continued
High Risk Area
Progress to Date and Next Steps
Section 8 Financial Systems: HUD's exist-
Both FHA and Public and Indian Housing (PIH) used data from CFS, one of the two new Section 8 finan
cial systems, to prepare their 1995 budget estimates. PIH has standardized contracts for its certificates,
vouchers and moderate rehabilitation programs. FHA has developed and implemented tenant data col
lection software in all ten regions using TRACS, the other Section 8 system. HUD will be issuing a rule
requiring all owners/agents to submit tenant data electronically through TRACS.
ing systems are inadequate to verify ten
ant information in Section 8 subsidy pro
grams and to accurately forecast funding
needs for expired Section 8 contracts that
are renewed.
1994 budget outlays for Section 8 low in
come housing assistance estimated at
$14B. 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.
Approximately $3.8B in Single Family
notes in inventory at end of 1993; 1993
property disposition proceeds were $3B.
At risk: assurance that HUD does not
incur excessive property management
and preservation fees, or excessive losses
from note assignments.
$309B of insurance was in force at the end
of 1993. At risk: FHA’s ability to pay po
tential claims without seeking appropria
tions or higher fees.
2
tems support and controls over closing agents. However, improvements for weaknesses related to the
procurement and administration of contract services have not been fully implemented. In addition, the
Single Family portfolio of assigned notes has grown substantially, with 15,506 notes added in 1993; the
total existing inventory is 101,000 cases. FHA is unable to properly service these notes. A comprehen
sive Asset Management Strategy has been developed for both Single Family and the more troubled
Multifamily program to: (i) improve field operations and support; (ii) reduce field office workload to
focus on asset management; (iii) implement tools to prevent defaults and assure financially and phys
ically sound properties; and (iv) obtain enhanced tools through legislation.
Next steps: (i) Increase reliance on the private sector for review of proposed assignments, thereby freeing
HUD staff for prevention of new note assignments, (ii) Improve the quality and efficiency of servicing
by consolidation or restructuring of functions, (iii) Develop means to remove mortgages from the port
folio, including asset sales, (iv) Fulfill critical training needs.
FHA Fund Equity: Mutual Mortgage Insur The National Affordable Housing Act (NAHA) of 1990 set MMI capital fund ratio targets of 1.25 percent
ance (MMI) fund equity may not be suffi
cient to cover losses during periods of ad
verse economic conditions.
2
Next steps: PIH plans to: (i) re-examine business processes; (ii) utilize the new HUD administrative core
accounting system to improve operations; and (iii) enhance CFS to provide for contract generation by
the system by October 1994. FHA plans to: (i) collect and verify assisted project and subsidy contract
data by February 1994; (ii) re-engineer CFS-LAN based information to the HUD mainframe platform
by August 1994; (iii) complete the tenant certificatioiyVoucher processing software release by October
1994; and (iv) implement the full budget forecasting capability using tenant and contract data by July
1995.
FHA Single Family Housing Asset Manage FHA’s Single Family property disposition activity was previously identified as a high risk area as a result
ment: Management controls for Single
of five material weaknesses. Significant improvements have been made in weaknesses related to sys
Family properties and notes do not pro
tect the financial interests and resources
of the government.
Assess
ment
2
for 1992, and 2 percent in the year 2000. FHA failed to meet the goal in 1992. A 1993 independent ac
tuarial analysis showed only a 0.43 percent capital ratio in 1992, but projected improvement to 0.72
percent by the end of 1993. While the Housing and Community Development Act of 1992 repealed some
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 structure and the financing
limit of 97.75 percent of value. The actuarial study reported that if these reforms remain in place, the
Fund can meet the statutory 2 percent capital ratio target for the year 2000. (A capital ratio of 2.44
percent in 2000 was projected by the study.)
Next steps: In 1993, HUD initiated a study to project the 1994 capital ratio and review options to ensure
actuarial soundness. The study, which is to be completed in June 1994, will also carefully analyze the
potential increased risk to the Fund as a result of the significant refinancing activity in 1992 and 1993.
GNMA Title I Claims: Manufactured hous
Implementation of stringent Title I underwriting procedures by the Department have reduced losses.
Losses for 1993 were $46.5M, significantly below anticipated losses of $50M to $100M. During 1993,
GNMA adopted a portfolio management strategy for the $700M in defaulted manufacturing housing
loans. GNMA continues to maintain a moratorium on the approval of new issues for manufactured
housing. At present, the remaining principal balance for the Title I portfolio in mortgage-backed securi
ties is $2.9B. This represents less than 1 percent of the $416B in securities that are guaranteed by
GNMA. DELETED FROM THE HIGH RISK LIST.
D
FHA Multifamily Housing Loan Servicing Provisions of the 1986 tax act reducing benefits of ownership, overbuilding, cyclical downturns in the in
dustry, and the failure of the coinsurance program have contributed to the increase in assigned prop
and Property Disposition: The Depart
3
ing 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
percent) FHA indemnification.
$3B in manufactured housing loans out
standing in GNMA portfolio at end of
1993. At risk: approximately $100M in
additional defaults had been anticipated.
ment has an excessive growth in ac
quired and assigned multifamily prop
erties and notes, due in large part to in
adequate servicing of the insured port
folio.
erties and notes, as has inadequate multifamily loan servicing. The number of multifamily properties
and notes in inventory has grown from 160,000 in 1987 to 370,000 in 1993. FHA has developed a Multi
family Asset Management Strategy both to reduce the HUD-held portfolio and to minimize the number
of new notes/properties added to the FHA portfolio. However, implementation of the Multifamily Asset
Management Strategy is just underway, and will require 36 months for completion.
$44B of insurance in force. At risk: $5.6B
was added in 1992 for claim loss reserve,
for a total reserve of $12B.
Next steps: Although proposed legislative changes to overcome the 1987 legislative restrictions on the
sales of MF properties were not enacted during the last congressional session, the Department is pursu
ing sales within existing statutory authority. For 1994, the Department’s goal is to sell and close 102 of
the 182 properties owned, a substantial increase from the current year’s performance. This action will
accomplish a net reduction in the HUD-owned inventory, reducing holding costs for the Department.
During 1994, the Department plans also to strengthen its ability to reduce losses and lower risks by: (i)
continuing education and training programs for field and Headquarters personnel to provide consistent
direction for loan servicing activities; (ii) providing more efficient use of existing tools to improve claims
processing; and (iii) encouraging proactive servicing for default prevention and loss mitigation, such as
refinancing loans with high interest rates to current market rates.
283
24. PROGRESS REPORT: CORRECTING HIGH RISK AREAS
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT—Continued
'High Risk Area
Progress to Date and Next Steps
Assess
ment
Public Housing Authority (PHA) Manage
ment: PHAs are mismanaged; 43 PHAs,
Many PHAs are not effectively managed, resulting in: (i) vacant units while waiting lists for low-income
housing grow; (ii) units that do not pass inspection guidelines for safety and sanitation, and (iii) uncol
lected rents. HUD has implemented the Public Housing Management Assessment Program (PHMAP) to
measure the management performance of each PHA and determine the need for HUD intervention. In
1994, part of a $3.2B modernization budget was provided to troubled PHAs to contract for technical as
sistance in correcting identified deficiencies.
2
which contain 20 percent of all public
housing units, have been identified as
“troubled.”
PHAs administer 70-80 percent of the
HUD budget. At risk: assurance that
$18. IB in annual appropriations are
used for intended purposes.
Next steps: HUD plans to: (i) continue to identify troubled PHAs and institute corrective actions to reduce
the number of troubled PHAs; (ii) institute additional program reforms in public housing, including the
demolitioiVdisposition of the worst public housing units and devolving more responsibility to local gov
ernments; (iii) pursue an aggressive policy towards placing poorly managed PHAs in receivership and
replacing ineffective management; and (iv) review its management policies to focus more on troubled
public housing authorities and less on routine matters.
GNMA: Oversight of major contract oper GNMA relies heavily on contractors to carry out asset management and program responsibilities associ
ations is inadequate.
$422B Mortgage-Backed Securities Pro
gram. At risk: limited assurance that
contract services are properly performed
or that claims for services are reasonable
or valid.
A
ated with its Mortgage-Backed Securities Program. GNMA hired an audit contractor to monitor the
contract compliance of its master subservicers and two other contractors. A substantial number of re
views were completed in 1993. IG confirmed that these reviews have improved GNMA’s oversight of its
contract services. In 1993 GNMA also established a monitoring plan to ensure identified deficiencies
are corrected. GNMA has taken steps to ensure that its subservicers reconcile escrow accounts for prin
cipal and interest and for tax and insurance. However, some subservicers do not yet fully comply with
monthly financial reporting requirements. ADDED TO THE HIGH RISK LIST.
Next steps: In 1994 GNMA plans to complete a review of its contract agent for issuer monitoring and
analysis. In addition, GNMA plans to hire a contract specialist to coordinate all activities related to
contracts with outside parties. The contract specialist will be responsible for providing independent ad
vice on ways to improve GNMA contract management activities.
Resource Management: HUD methods of As part of the Secretary’s "Reinventing HUD” initiative, the Department has undertaken a number of ini
formulating resource needs and utilizing
available resources are inadequate.
At risk: HUD’s ability to ensure efficient
and effective use of resources for achiev
ing program results, while minimizing
program risk and susceptibility to fraud,
waste, and abuse.
A
tiatives to address resource management and staffing issues. An overall approach for meeting Adminis
tration FTE targets by 1999 has been developed, although it will require revision if “buyout” legislation
does not pass. The Department completed a review to streamline Headquarters operations in December
1993. A streamlining and consolidation of field offices to better utilize staff and improve program deliv
ery was announced December 2, 1993; this change had been recommended by the National Performance
Review. A strategy, workplan, and schedule for implementation of field reorganization is scheduled to
be developed by September 30, 1994. ADDED TO THE HIGH RISK LIST.
Next steps: By September 30, 1994, HUD plans to develop and implement a results-oriented annual plan
ning process linked to the budget process. A redesigned resource management process is to be available
for the formulation of the 1996 budget.
DEPARTMENT OF THE INTERIOR
High Risk Area
Progress to Date and Next Steps
Bureau of Land Management (BLM): Inad During 1993, BLM significantly improved production verification efforts through redesigning and imple
equate oil and gas inspection strategy to
verify on-shore production and usage.
$500M in revenues are received annually.
At risk: less than $1M due to improper
production verification (down from
$50M-$70M in 1992).
Assess
ment
1
menting its Inspection and Enforcement (I&E) strategy, with a focus on production accountability and
environmental protection. BLM (i) issued its annual I&E strategy; (ii) increased number of inspectors
from 104 in 1990 to 145 in 1993; (iii) held I&E training courses for managers; (iv) trained 106 inspec
tors; (v) held a nationwide I&E workshop; (vi) conducted a management control review on I&E federal
lands; and (vii) began use of an I&E matrix for planning, reporting and evaluating nationwide inspec
tions involving production, drilling, plugging, workover, and environmental impact. Inspections have in
creased 6.2 percent, from 48,969 in 1990 to 52,063 in 1993.
Next steps: Continue refining I&E strategy; hire and train 10 additional inspectors; and fully implement
I&E matrix including use of performance measures to evaluate effectiveness of new I&E strategy.
Office of Territorial and International Af OTIA has begun implementing a management control program to improve financial management systems
fairs (OTIA): Lack of adequate financial
and controls and grant administration in the insular governments. The program entails evaluating the
management in the insular governments.
OTIA 1994 budget is $81.9M. At risk:
$30M due to improper use of grant
funds.
insular areas’ grant and financial management capabilities, providing basic financial management and
management control training to Territorial personnel, enhancing grant and financial oversight activi
ties by OTIA staff and initiating new technical assistance approaches and projects. While OTIA has
thus far fulfilled its milestones, the existing legislative mandate prevents the Department from direct
ing and ensuring compliance with financial management improvement initiatives in the Territories.
Moreover, the likelihood that expanded authority of this type will be forthcoming in the future is ex
tremely remote. DELETED FROM THE HIGH RISK LIST. Department will track as a material weak
ness.
Next steps: Continue implementing management control program.
D
284
ANALYTICAL PERSPECTIVES
DEPARTMENT OF THE INTERIOR—Continued
High Risk Area
Progress to Date and Next Steps
Bureau of Indian Affairs (BIA): Seriously
During 1993, BIA identified invalid debts totalling $5.9M and removed them from the billing and ac
counting system. BIA also reconciled remaining pre-1990 cash differences with Treasury for all ac
counts except those shared with the Office of Trust Funds Management. Although system support re
sponsibilities were nominally transferred to the BIA' s Division of Accounting Management, serious
delays in recruiting well-qualified staff have caused planned improvements to slip, raising doubts about
BIA’s ability to handle systems support. While invoice backlogs have been reduced, cash reconciliation
differences with Treasury for post-1990 transactions are growing, and projects to install central collec
tion processes for loans and accounting control over irrigation and power billings are lagging. OMB has
serious reservations about the progress of this project as well as the adequacy of oversight by the Divi
sion of Accounting Management.
deficient financial systems.
The program level in BIA is over $2B an
nually in budget authority. At risk: ac
counts receivable of $20M; delinquent
loans of $18M; $25.5M in accounting er
rors in irrigation and power accounts.
Assess
ment
3
Next steps: OMB, Departmental management and BIA need to develop a new improvement plan to sta
bilize the monthly cash reconciliation process, create an effective central loan collection unit, and design
an effective recruitment program.
BIA: Inability to account for and reconcile
Indian Trust funds.
There are $2B in tribal and individual In
dian Trust funds. At risk: $6.3M in po
tential losses due to mismanagement.
During 1993, with oversight and assistance from OMB and DOI’s CFO office, BIA revised and imple
mented a contract to reconcile $1.5B in tribal trust funds for the period 1972-1992. Specifically, BIA: (i)
executed an extensive financial and source documents search; (ii) launched full-scale reconciliation on
approximately 641,000 transactions worth over $103B; (iii) began special procedures reviews for five
tribes; (iv) initiated "fill the gap” work expanding reconciliation procedures to include data on receipt of
income from originating source documents; (v) completed the investment to finance systems reconcili
ation; (vi) contracted with a CPA firm to certify reconciliation work; and (vii) started preparing option
papers addressing problems in land records management, fractionated heirship, and reconciling individ
ual Indian monies.
2
Next steps: Reconciliation and certification work will continue into 1995. During 1994, BIA plans to com
plete work on (i) reconciliation of all transactions for the period 1972-1992; (ii) special procedures re
views for five tribes; (iii) “fill the gap” reconciliation; (iv) reconciliation of the finance system to the U.S.
Treasury; and (v) publication of option papers in the areas of land records management, fractionated
heirship, and reconciling individual Indian monies. Additionally, work will continue on (i) additional
reconciliation procedures as required; (ii) developing draft of agreed upon procedures special purpose re
ports; and (iii) certifying the reconciliation work.
BIA: Longstanding deficiencies in the man BIA has implemented sound strategies for addressing problems in both BIA school facilities and dam
agement of BIA school facilities and BIA
dam safety.
1994 budget includes $82M for these pro
grams. At risk: health and safety of the
affected Indian communities.
D
safety. For school facilities, BIA has implemented all actions detailed in its facilities remedial action
plan; established a “hot line” to report safety violations; and received additional funding for major
building repairs. For dam safety, BIA determined and established the responsibility for dam safety op
eration and maintenance and continued with corrective action work on BIA dams. DELETED FROM
THE HIGH RISK LIST. Department will track as a material weakness.
Next steps: (i) For school facilities, continue monitoring implementation of facilities remedial action plan,
(ii) For dam safety, establish a cycle operation and maintenance budget item in 1995 and continue mon
itoring of corrective action work on BIA dams.
DEPARTMENT OF JUSTICE
High Risk Area
Progress to Date and Next Steps
Departmental: Debt collection information
In 1993, future funding issues were resolved by passage of law allowing Justice to retain up to 3 percent
of amounts collected pursuant to civil debt collection litigation activities to be used to pay the costs of
processing and tracking such litigation. In November 1993, Justice awarded a contract for development
and implementation of Departmental financial litigation and collection management information sys
tem.
systems are inadequate to support man
agement of litigation and collection activ
ity on an estimated $12.3B inventory.
There are more than S12.3B (1992 esti
mate) in pending civil claims receivables
in Justice’s inventory, including approxi
mately $11.4B in receivables outstanding
that were referred to Justice by other
agencies for litigation anchor collection
action. At risk: non-collection of up to 5
percent o f total (representing potential
additional collections from improved
management information).
Seized Asset Forfeiture inventory valued at
$1.9B at end of 1993. At risk:
$25M-$30M annually in increased reve
nue and cost savings.
2
Next steps: (i) Begin nationwide implementation of the system; implement in 7 of 94 U.S. Attorneys’ Of
fices in 1994. (ii) Establish multi-agency advisory group to advise Justice on the reporting needs of cli
ent agencies and central management agencies (OMB and Treasury) in early 1994.
Departmental: Asset forfeiture information The Asset Seizure and Forfeiture program continues to be a successful govemmentwide enforcement tool
systems are inadequate to ensure pro
gram integrity or achieve full revenuegenerating potential of the Asset Forfeit
ure program.
Assess
ment
in combating crime. The Executive Office for Asset Forfeiture (EOAF) has lead responsibility for the de
velopment and implementation of a centralized Consolidated Asset Tracking System (CATS) that will
integrate asset seizure and forfeiture information of all Federal agencies participating in the Justice
Asset Forfeiture program. An implementation plan for CATS was completed March 1993; full systems
implementation is anticipated in September 1994. Full activation of CATS is essential. Also, quality as
surance plans and improved work statements for contract support were developed; uniform asset for
feiture policies and procedures between Justice and Treasury were established.
Next steps: Implementation of CATS by September 1994 and evaluation of CATS by December 1994; de
velopment of a module in CATS for Asset Forfeiture Case Tracking to run in the U.S. Attorneys’ offices.
2
285
24. PROGRESS REPORT: CORRECTING HIGH RISK AREAS
DEPARTMENT OF JUSTICE—Continued
High Risk Area
Progress to Date and Next Steps
Executive Office of U.S. Trustees (EOUST): Progress was made in 1993 to rid the court docket of backlogged bankruptcy cases and to uncover wrong
Need to increase oversight to prevent
fraud, misappropriation, and breach of fi
duciary standards by private trustees.
Estimated amounts in bankruptcy accounts
is $29B. No risk to Federal funds but pri
vate funds are subject to potential loss or
fraud.
1994 budget provides $2.2B for BoP. At
risk: the safety and security of prison
staff, inmates and surrounding commu
nities.
2
doing by private trustees, their employees, and debtors. A record number of criminal referrals was
achieved in 1993. Enforcement priorities were established. Attention was given to reorganizing case
loads, particularly those in which there was little creditor activity, and reallocation of positions to of
fices with highest caseloads is planned. Detailed analyses of field operations were conducted. Resources
are being targeted to areas requiring attention, e.g., audit and audit resolution, closure of old cases,
criminal enforcement and greater oversight of private trustees.
Next steps: (i) Review alternatives and improve allocation of Trustee positions on caseload priority basis
by March 1994. (ii) Complete security risk analysis to support systems replacement by June 1994 and
redesign case management systems by September 1995. (iii) Increase the returns to unsecured creditors
and debtors by reducing professional fees and Trustee administrative expenses.
Bureau of Prisons (BoP): Overcrowding af Prison overcrowding must be reduced to ensure safe and secure conditions for community, staff and in
fects safety and security.
Assess
ment
1
mates. Considerable progress has been made in this area. Inmate population in the Federal prison sys
tem is 39 percent over rated capacity as of September 30, 1993, a reduction from 69 percent reported in
1990. BoP plans to add 35,000 beds in the next four years; the 1995 BoP capacity plan projects a de
crease in the overcrowding rate to 32 percent by the end of that year. Resolution of this high risk area
is predicated on availability and use of resources provided in previous budgets. These funds are com
mitted for construction projects but are not technically “obligated” until procurement award is effected.
At times, procurement awards are delayed by community opposition and for environmental impact
studies.
Next steps: Complete planned construction and monitor the plan closely because inmate population may
increase faster than capacity due to increased level of criminal litigation in judicial system.
BoP: Not all prisons comply with fire anc^ BoP has completed life safety surveys at all 68 active facilities. Remedial projects for the final 20 facilities
or hazardous waste disposal codes.
1994 budget provides $1.5M for corrective
actions. At risk: possible environmental
damage, personal injury, fines, and court
action if compliance is not achieved.
Next steps: BoP and the Department will closely monitor to ensure that all remedial actions are taken.
BoP: Inadequate staff to operate and man BoP’s efforts to recruit, develop and retain sufficient staff have been successful. The ratio of BoP staff to
age prisons.
1994 budget provides $1.9B in total operat
ing expenses for BoP. At risk: the safety
and security of prison staff, inmates and
surrounding communities.
Accounting system processes $1.5B annu
ally. At risk: assurance that funds are
accounted for in an accurate and timely
fashion.
D
inmates has been reduced from 1:3.9 in 1990 to 1:3.2 in 1993. BoP is addressing the recruitment and
retention of medical staff which continues to present some difficulty. 1995-97 forecasts indicate that
there are sufficient numbers of qualified candidates for most of BoP’s present and future needs. DE
LETED FROM THE HIGH RISK LIST. Department will track as an "area of significant concern.”
Next steps: This area is integrally connected to the prison overcrowding issue and changes in level of in
mates impact on this area. Therefore, BoP and the Department will continue to identify this area as
one needing follow-up.
Immigration and, Naturalization Service INS has completed an initial restructuring of its field, regional and headquarters activities including reor
ganizing the Office of Finance. A further organizational review has been conducted by the new Commis
(INS): Poor management controls and in
adequate financial system.
D
surveyed are now being reviewed. BoP has completed 4,860 (78 percent) of the initial 6,254 remedial
projects identified by the surveys. All immediate life and health safety risks due to hazardous waste in
Federal prison facilities have been corrected. DELETED FROM THE HIGH RISK LIST. Department
will track as an “ area of significant concern.”
2
sioner to further streamline staff and functions and to improve management controls. INS established a
Management Control Council. Progress was also made in the financial management area. INS has
taken steps to correct weaknesses in its fee account which generated a disclaimer of opinion in an audit
of 1992 financial statements. INS started migration to the Department's Financial Management Infor
mation System (FMIS). An FMIS distributed budget module has been implemented, and other modules
are in process.
Next steps: (i) Complete INS restructuring initiated by the new Commissioner, (ii) Extend the INS man
agement controls program into all field locations, (iii) Fully implement FMIS at INS. (iv) Implement a
debt collection system for headquarters and within regions, (v) Implement a bonds management sys
tem.
U.S. Marshals Service (USMS): Inadequate
financial management system; non-con
formance in fund control and asset value
reporting.
Accounting system processes SIB annually.
At risk: assurance that funds are ac
counted for in an accurate and timely
fashion.
150-003 0 -9
http://fraser.stlouisfed.org/4 -1 0 (QL 3)
Federal Reserve Bank of St. Louis
USMS is migrating to the Department’s Financial Management Information System (FMIS). In 1993,
USMS completed system changes to implement FMIS’ distributed budget module at Headquarters. De
velopment of modifications to the FMIS general ledger module and several other modules to meet spe
cific USMS requirements continue. Once USMS has fully implemented FMIS, the USMS accounting
system should be able to provide reasonable assurance that its funds are accounted for in a timely and
accurate fashion, including asset value reporting, and that USMS employs sound business practices.
Next steps: (i) Complete validation of systems requirements by February 1994. (ii) Complete systems
modification by May 1994. (iii) Complete documentation and training by August 1994. (iv) Complete im
plementation of the planned FMIS modules by the end of 1994.
2
286
ANALYTICAL PERSPECTIVES
DEPARTMENT OF JUSTICE—Continued
High Risk Area
Progress to Date and Next Steps
USMS, INS and BoP: Shortage of deten The facilities available to house prisoners in custody by the U.S. Marshals and INS are overcrowded or
tion facilities.
1994 budget provides $87M for detention
facilities. At risk: ability to meet de
mands of increasing prisoner population.
Assess
ment
2
unavailable. At the end of September 1993, the USMS daily detention population approached 20,000
and the number of jail days needed to house this population had grown by 6 percent over the previous
year. The resolution of the problem is being addressed through a multi-year Federal detention strategy
involving USMS, INS and BoP in 280 Federal court cities throughout the country. As of September
1993, 6,953 detention spaces had been acquired at 117 Federal court cities through the Cooperative
Agreement Program (CAP) with the States and local governments. Several additional initiatives, in
cluding joint construction and modernization projects between BoP and INS, individual INS construc
tion projects, and the use of private sector detention facilities, will help to reduce detention shortage to
more manageable levels. Construction funded by BoP through 1993 would provide USMS with 9,062 de
tention spaces (including 304 for INS) in 17 court cities.
Next steps: (i) Complete planned construction and renovations, (ii) Complete INS plans to expand by 375
spaces the capacity of INS’ detention centers in 1994. (iii) Continue CAP agreements in 1994. (iv) Mon
itor situation closely because detention population may increase faster than capacity due to increased
level of criminal investigation and prosecution.
Department: Inadequate security over de The Department has (i) completed a review of all of the components sensitive system security plans; (ii)
partmental ADP sites and systems.
At risk: effectiveness of litigation action
and law enforcement programs as a re
sult of loss or unauthorized access to sen
sitive information, as well as control of
financial assets.
2
established technical workgroups to evaluate various security technologies and developed recommenda
tions on their use; and (iii) established a DOJ-wide task force of computer security officers, which is
used to communicate and distribute information on ADP security problems and solutions. DOJ issued
guidance to components on handling and prevention of computer viruses, risk analysis, passwords, user
identification encryptions, contingency planning, certification, and system security awareness training.
Department staff assisted the Drug Enforcement Agency (DEA) in establishing a computer security pro
gram, including a review of DEA’s risk analysis methodology. USMS initiated risk analyses of two
major systems, and the U.S. Attorneys' offices are being equipped with secure communications systems.
Assistance to INS’ ADP security planning process has been made a priority by the Department. The se
curity over departmental ADP sites and systems continues to be a priority. A system for providing dis
aster recovery for the Department’s mission-critical information is being developed. DOJ is sequentially
certifying the sufficiency of each component’s disaster recovery program. DEA has developed its plan for
disaster recovery, and certification is planned for September 1994.
Next steps: In 1994, (i) DOJ plans to conduct 30 computer security reviews; (ii) DOJ plans to offer tech
nical courses in PC security, telecommunications security, ADP risk analysis, and network security; (iii)
USMS is to complete a risk analysis on the prisoner tracking system and the USMS telecommuni
cations network; (iv) DEA plans to implement its agency-wide computer security program; (v) U.S.
Trustees to complete security risk analysis by June 1994; and (vi) INS plans to complete risk analysis
and contingency plans of its major systems by December 1994. A Department-wide disaster recovery
program is to be implemented by September 1996.
INS and U.S. Customs Service: The dual
management structure providing land
border inspections and clearance is inad
equate.
$150M to $180M spent annually by INS
and Customs on land border inspection.
At risk: impact on U.S. economic and so
cial welfare resulting from illegal entry
of people, drugs and other contraband.
INS and Customs are the principal Federal agencies controlling the entry of people and goods through the
U.S. land borders. Their current operational relationship hampers management of land border inspec
tions. The dual management structure weakens accountability and makes effective coordination of land
border control and facilitation of legal entry difficult. The current border inspection management work
ing relationships need modification to address expected customs and immigration service demands con
fronting the Federal government in the next 10 to 20 years. INS’ and Customs’ activities must be con
ducted more effectively and efficiently to carry out their land border inspection mission. ADDED TO
THE HIGH RISK LIST.
Next steps: A Justice, Treasury and OMB task group is reviewing options for improving cooperation and
management of U.S. land border inspection activities. Recommendations from this task group are ex
pected in February 1994.
INS and Justice components: Asylum sys The Department and INS are developing proposals to improve the asylum process. INS cannot adjudicate
tem is unable to process asylum claims
in a timely manner.
1994 budget provides $43.6M for Justice
asylum processing. At risk: increasing
vulnerability of asylum system to abuse
by ineligible asylum applicants.
A
its growing number of incoming asylum cases in a timely manner, and as a result, has a backlog of
300,000 cases. Asylum applicants with unadjudicated cases receive work authorization cards from INS.
Some may abuse this process and file false claims in order to receive work documents, knowing that
INS lacks tiie ability to adjudicate its large caseload. ADDED TO THE HIGH RISK LIST.
Next steps: (i) Propose regulatory changes to streamline the adjudication process for both INS and the
Executive Office of Immigration Review, (ii) Improve the system for identifying asylum applicants, (iii)
Improve work authorization card issuance process, (iv) Develop procedures to detain and deport expedi
tiously those whose asylum claims have been finally denied, (v) Increase personnel to adjudicate cases.
A
287
24. PROGRESS REPORT: CORRECTING HIGH RISK AREAS
DEPARTMENT OF LABOR
High Risk Area
Progress to Date and Next Steps
Employment and Training Administration In December 1993, DOL published a General Administrative Letter (GAL) outlining real property require
ments. The GAL emphasizes the withdrawal of delegations of prior approval authority, and establishes
(ETA): Federal equity in real property
held by State Employment Security
Agencies (SESAs) at risk due to inad
equate Federal oversight and guidance
on acquisition, use, and disposition of
real property.
Fair market value (FMV) is $1B. At risk:
up to 10 percent of FMV.
DOL systems processed over $1.5B in ad
ministrative costs and $7.7B in grant ex
penses during 1993. At risk: accurate
and timely accounting, resource control
and cash management of these funds.
D
accounting standards for rent vs. depreciation vs. acquisition costs. (Implementation began when the
draft GAL was issued in 1992.) In 1993, DOL regional offices expanded monitoring in line with DOL di
rective on system responsibilities and tracking requirements. DOL asked States to formally certify
DOL’s equity in real property. DOL has also begun reconciling its initial property inventory with each
State’s SESA records. This process may be lengthy, and a few discrepancies may require formal resolu
tion. DELETED FROM THE HIGH RISK LIST. Department will track action on reconciliation as a ma
terial weakness.
Departmental: Financial systems and oper DOL implemented a new core accounting system in 1990. Since then, many improvements have been
ations inadequate.
Assess
ment
D
made in the software and underlying control processes. The Office of Inspector General (OIG) has par
ticipated heavily in designing and commenting on report preparation processes, as well as providing an
nual detailed critiques of new operating procedures. During 1992-93 the new grants management sys
tem was implemented in all ETA regional offices, and a subsystem to record property purchases was
implemented. Property information based on physical inventories was recorded in the subsystem in
1993.
While the OIG reports that some control, reporting and operating improvements are needed in these ad
ministrative and grant systems, OMB believes the level of risk has been substantially reduced. DE
LETED FROM THE HIGH RISK LIST. Department is reporting specific problems as material weak
nesses or non-conformances, as appropriate.
ETA: Single Audit Act (SAA) not effective A 1991 DOL OIG report found weaknesses in SAA coverage of JTPA funds. These weaknesses are not
in safeguarding Job Training Partner
ship Act (JTPA) Federal funds.
At risk: assurance that $3.8B in JTPA
grants is effectively audited.
ETA: Inconsistent monitoring and imple
mentation of JTPA grantee systems and
financial controls.
1994 budget includes $3.8B in JTPA grant
ee operations. At risk: assurance that
these funds are being spent appro
priately.
unique to JTPA, but are common to Federal grant programs where funds are passed through grant re
cipients to sub-recipients. Unilateral action by DOL to address this problem is not feasible; it is a gov
emmentwide issue and can only be dealt with as such. In addition, two govemmentwide studies on the
SAA had been anticipated. The first of those studies was released in 1993; however, it did not address
SAA coverage of sub-recipients in grant programs. A second study, to be released by the General Ac
counting Office in 1994, will cover these issues. In 1994, the Administration will consider proposing
changes to the SAA. DELETED FROM THE HIGH RISK LIST.
In July 1993, DOL published draft implementing regulations for the Job Training Reform Act of 1992.
These amendments to the JTPA address cost classification, procurement policy, and on-the-job-training
processes. They significantly strengthen JTPA monitoring requirements and program accountability. In
1993, DOL published technical assistance guides for regional staff on procurement and on-the-job train
ing. DOL also completed training for all States on the JTPA amendments and implementing regula
tions.
Next steps: (i) Issue final implementing regulations in early 1994. (ii) Develop technical assistance guides
and training for regional staff on grantee oversight, financial management, and State level monitoring
during 1994.
Pension and Welfare Benefits Administra PWBA continues to make significant progress enforcing current statutory provisions regarding pension
plan audits and improving the quality of these audits. During 1993, PWBA (i) issued 528 letters reject
tion (PWBA): Oversight of pension plans
inadequate due to weaknesses in pension
plan audits.
PWBA oversees private pension plans with
assets of $2 trillion. At risk: pensions
guaranteed by the Federal Government
valued in billions of dollars.
1
ing inadequate annual plan reports (Form 5500); (ii) assessed $36.6M in fines for submission of inad
equate audit reports; (iii) conducted 70 on-site reviews of accountant’s reports and the records of inde
pendent public accountants (IPAs) performing plan audits; and (iv) made 40 referrals to the American
Institute for Certified Public Accountants (AICPA) or State boards of accountancy. PWBA also devel
oped a sampling plan and methodology to examine the quality of employee benefit plan audits and the
effect o f the AICPA’s 1991 revised audit guide and training program on plan audits.
Next steps: (i) DOL plans to submit a legislative proposal to (a) repeal the limited scope exemption for
certain pension plan audits; (b) establish triennial peer reviews of IPAs performing plan audits; and (c)
require direct reporting by IPAs to the Secretary of Labor of certain irregularities that may be discov
ered in the course of the plan audit, including any indications of illegal acts. This legislative proposal
will differ from earlier versions in being self-implementing—PWBA will not need to develop implement
ing regulations, (ii) PWBA will complete its study on the impact of the revised AICPA audit guide by
October 1994, and may recommend further changes to the audit guide, (iii) PWBA will offer training on
plan audit issues at the fourth DOL-AICPA conference for employee benefit professionals in May 1994.
1
288
ANALYTICAL PERSPECTIVES
DEPARTMENT OF STATE
High Risk Area
Progress to Date and Next Steps
Foreign Buildings Office: Rehabilitation The Department has significantly improved overseas reed property rehabilitation and maintenance pro
and maintenance of real property over
seas is inadequate.
1994 budget for FBO is $410M. At risk: the
health, safety, and security of employees
at overseas posts due to building deterio
ration.
Assess
ment
D
grams by implementing a three-pronged strategy: (i) identifying the requirements of overseas facilities
and monitoring maintenance needs; (ii) improving maintenance staffing; and (iii) increasing assistance
provided by FBO to posts. Specifically, the Department has: conducted all 179 scheduled maintenance
surveys; hired 66 specialists; and established two maintenance centers that completed 160 post visits in
1993. In addition, FBO now evaluates or installs maintenance programs at posts; and ensures that new
facilities are well-maintained. DELETED FROM THE HIGH RISK LIST. Department will track as a
material weakness.
Next steps: In 1994, FBO will (i) hire specialists to fill remaining 46 positions; and (ii) complete develop
ment of an automated system to accurately estimate and track ongoing maintenance requirements.
Consular Affairs: Inadequate controls over The Department continues to implement a sound strategy to (i) prevent visas from being issued to people
visa processing increase vulnerability to
illegal immigration and diminish the in
tegrity of the U.S. visa.
1994 budget for visa processing is $152M.
At risk: potential for visa fraud.
1
known to be undesirable (automated name check systems) and (ii) improve integrity of the document it
self so it cannot be forged or altered (machine-readable visa). MRV is currently installed in 52 posts,
which represents more than 50 percent of nonimmigrant visas issued. Recent audit by Office of Inspec
tor General endorsed MRV concept, but made recommendations to address security and internal control
shortcomings.
Next steps: Funding is critical to installing technologies worldwide. If State receives legislative authority
to keep proceeds from visa application processing fee, which is under consideration by the Congress, the
name check system could be installed worldwide by end of 1995 (two posts per week); MRV by 1996-97.
Departmental: Management of the overseas
security program is inadequate.
1994 budget for the overseas security pro
gram is $214M. At risk: assurance that
this investment is adequately protecting
U.S. personnel, information and property
abroad.
While global changes continue to affect the Department's approach to security issues, State has made sig
nificant progress in accomplishing two critical objectives: assessing threats to overseas posts from ter
rorism, counterintelligence, technical intelligence and crime; and minimizing those threats through im
plementation of security standards. Threat levels at all posts are reassessed semiannually, so imple
menting the appropriate security standards will be a continuous process. OMB expects that State will
continue to review its vulnerabilities in the security area so that specific problems are quickly identified
and corrected. DELETED FROM THE HIGH RISK LIST.
D
Mainframe security remains a problem, however, and is included in redefined high risk area, “ Informa
tion Management” .
Next steps: (i) Complete review of previously published technical security standards and publish revised
standards as appropriate, (ii) Ensure that all security standards are implemented on a timely basis, (iii)
Refine compliance database so that corrective actions and resources needed to address post deficiencies
can be efficiently tracked.
Departmental: ADP operational deficiencies MERGED INTO REDEFINED HIGH RISK AREA, “ INFORMATION MANAGEMENT*.
—
are not being systematically addressed.
Departmental: Accounting and financial
systems have many weaknesses and do
not meet standard requirements. A sub
stantial amount of information essential
to financial statement production is un
recorded, and a number of subsidiary ac
counting systems are not interfaced with
the core system.
Total 1994 appropriations for the Depart
ment are $4.9B. At risk: assurance that
these funds (and funds of other agencies
serviced overseas) are being accounted
for in an accurate, timely, and useful
fashion.
During 1993, State (i) completed an Information Strategy Plan (ISP) for integration and standardization
of financial systems; (ii) reduced the number of accounting and disbursing systems from six to three
and the number of payroll systems from three to two; (iii) made operational improvements in disburs
ing; and (iv) implemented additional edits and controls to improve data quality. However, at this point,
State has not finalized requirements to support its business strategy for financial systems. Although
the overall business strategy has been thought out, the technical strategy for implementation of a new
worldwide financial system has not been finalized. Upon completion of the business requirements, State
must finalize an approach for systems acquisition and development which follows government policy in
OMB Circulars A-130 and A-127. State must provide budgetary resources, develop a new technical in
frastructure, and establish Department-wide standards, which are critical factors for successful imple
mentation of new financial systems. Failure to deliver Department-wide solutions in these areas will
jeopardize the success of State’s efforts.
Next steps: (i) Complete the business area analysis of core financial system functions, (ii) Develop an im
plementation approach consistent with government financial systems policy, (iii) Negotiate a workable
technical environment that will meet the needs of financial management, consular affairs, and other
bureaus and can be supported by the Department.
3
289
24. PROGRESS REPORT: CORRECTING HIGH RISK AREAS
DEPARTMENT OF STATE—Continued
High Risk Area
Progress to Date and Next Steps
Departmental: Controls over worldwide dis State is centralizing the disbursing function from overseas posts to the three Regional Administrative
bursing and cashiering are inadequate.
Over $5B disbursed annually by Depart
ment disbursing officers (DOs) world
wide. At risk: $6.7M, representing funds
unreconciled with Treasury.
Assess
ment
1
Management Centers (RAMCs) to bring all DO functions under the direct oversight and supervision of
the Chief Financial Officer. Fourteen of 22 DOs have been centralized; remainder on track for February
1994. This process will enable State to cut 18 U.S. and 50 foreign service national positions, with a sav
ings of $2M. Unreconciled funds brought down from approximately $50M to $6.7M. Department has im
proved oversight of cash management, but cashier accountability issues still need to be resolved.
Next steps: (i) Continue to monitor DO accountability, (ii) Ensure that new financial system includes
modules on disbursing, cashiering, banking, and all foreign currency purchasing.
Departmental: State's operations are ham
pered by information management defi
ciencies. [This area formerly focused on
open systems migration.]
Total 1994 appropriations for the Depart
ment are $4.9B. At risk: assurance that
an adequate information technology in
frastructure exists to support the Depart
ment's mission-critical operations and to
assure the Isecurity of sensitive informa
tion.
Weaknesses in information management (obsolete technology, insufficient contingency plans, and inad
equate mainframe security controls) affect the Department’s ability to manage and safeguard informa
tion supporting U.S. foreign policy. The Office of Information Management (A/IM) must ensure that
State’s requirements are appropriately defined, and use an integrated, collective approach to resolve
these serious problems. A/IM must continue to improve its coordination with other bureaus and to fol
low through on the development of a justifiable, workable modernization plan within the timeframe it
has committed to in order to meet State’s information management needs.
3
Next steps: (i) Draft and issue the modernization plan as scheduled within the second quarter of 1994, in
corporating modernization of mission-critical communications, financial, logistical, and consular sys
tems. (ii) Utilize existing Departmental or other agency procurement vehicles to upgrad^replace much
of State's worldwide inventory of information management equipment, and develop an appropriate per
sonnel training program that meets the requirements of the modernization plan, (iii) Obtain essential
backup computer capacity, incorporating it into a contingency plan providing backup and recovery capa
bilities for domestic and overseas mainframe processing centers, (iv) Publish and implement computer
security policy/standards consistent with Diplomatic Security policy.
DEPARTMENT OF TRANSPORTATION
High Risk Area
Progress to Date and Next Steps
Department: Financial systems are numer DOT is pursuing a three-phased approach to address this risk: (i) correcting immediate problems in ac
ous, fragmented and non-standard.
DOT financial systems process over $39B
in outlays annually. At risk: assurance
that funds are accounted for in an accu
rate, timely, and useful manner.
Assess
ment
2
counting, personnel, payroll and procurement systems; (ii) establishing standards and developing a
strategic systems plan for future modernization; and (iii) implementing an integrated systems environ
ment. In 1993, DOT (i) completed implementation of a core accounting system (DAFIS) at all planned
sites, thereby eliminating 27 coiVsubsidiary financial systems and consolidating 21 accounting oper
ations; (ii) completed initial but essential steps for integrating its personnel and payroll systems (IPPS);
(iii) implemented a standard module for producing financial statements; and (iv) improved data integ
rity by establishing financial standards. The Department estimates savings or costs avoided of $104M
due to these corrective actions. Due to resource constraints, efforts to develop the long-range, Depart
ment-wide strategic plan for modernization have not been undertaken, but DOT is pursuing short-term
strategies for system improvements. DOT expects by the end of 1996 to establish data standards and
data administration functions for the Department.
Next steps: (i) Move to Phase II of DAFIS to implement enhancements that had been delayed until instal
lation at all sites was completed, and broaden the scope of the system functions, (ii) Implement IPPS
integrated database (personneVpayroll reporting) by July 1994, with complete IPPS implementation by
September 1996.
Federal Transit Administration (FTA): In FTA has made significant progress toward correcting this area. In 1993, FTA made structural and func
adequate grants management oversight.
$35B in active grants. At risk: $300M to
$500M.
1
tional changes to strengthen its oversight activities. FTA established a separate program oversight
function at its regional offices and assigned 40 FTE to this function; increased its use of qualified con
tractors to perform oversight reviews; and implemented a grantee risk assessment program that en
ables FTA to focus its oversight resources on grantees identified as a potentially high risk. The in
creased focus on oversight has resulted in the early and timely identification and correction of defi
ciencies at grantees assessed to pose a high potential risk.
Next steps: (i) Forward revised single audit compliance requirements to OMB by April 1994 for issuance
by July 1994. (ii) Complete organization-wide structural and procedural changes to improve grants
management oversight, and validate that oversight mechanisms accomplish what was intended by De
cember 1994.
Federal Aviation Administration (FAA): FAA has developed an internal management control plan to better identify and focus on correcting major
Major systems acquisition procedures are
inadequate.
FAA procurement plans are estimated at
$15B over next 15 years. At risk: in
creased cost because of poor contract ad
ministration.
acquisition weaknesses. In March 1993, an improved acquisition policy was formulated. Mission needs
statements were concluded in November 1993 and are being scrutinized to ensure that sufficient quan
titative and qualitative analysis and benchmarking is included. The mission analysis process has been
tied to the budget with particular attention to acquisition costs.
Next steps: (i) Implementation of a disciplined mission analysis process is planned for completion by early
1994. (ii) OMB believes that clearly defined requirements to assure improved management in functional
areas of requirements determination, acquisition planning, specification development, pre-production
testing, contract award, contract administration and contract modification should be expedited and
completed earlier than the projected December 1995 completion date.
2
290
ANALYTICAL PERSPECTIVES
DEPARTMENT OF TRANSPORTATION—Continued
High Risk Area
Progress to Date and Next Steps
U.S. Coast Guard: Major systems acquisi In 1993, the Coast Guard (i) made organizational changes appointing civilians with acquisition manage
tion procedures are inadequate.
USCG procurement plans are estimated at
$1.5B over next 5 years. At risk: in
creased costs because of poor contract ad
ministration.
Assess
ment
2
ment experience as deputy program managers to strengthen oversight; (ii) revised contracting and pro
curement policies; (iii) sent all project managers to a 20-week course at the Defense Systems Manage
ment College; (iv) assigned warrant officers at field units to provide closer oversight of procurement ac
tivities; (v) implemented a Capital Improvement Plan to provide better long-range acquisition planning;
and (vi) developed improved mission needs statements and justifications. Implementation of a complete
mission needs analysis process was delayed and needs to be expedited.
Next steps: Implement by October 1994 a complete mission needs analysis process that will provide suffi
cient quantitative and qualitative analysis and benchmarking to better support acquisition activities
and link the process to the budget.
FAA: Inadequate management of spare
parts at field activities.
$131M in spare parts at Held locations. At
risk: excessive inventory holding costs
and adequate inventory control.
FAA implemented a supply site management process designed to (i) improve management of spare parts
in field activities; (ii) reduce inventory holding costs; and (iii) dispose of inactive and excess materials in
a timely manner. A review of the management and controls of the National Air Space (NAS) spare
parts activities was completed, and a permanent, on-line inventory control system was recommended
and is being developed. An interim PC-based inventory control system is operational until the auto
mated system is implemented.
2
Next steps: Implement by September 1994 the best practices recommendations from the NAS review.
U.S. Coast Guard: Inadequate logistical
support for spare parts at field activities.
$347M inventory on hand. At risk: excess
inventory holding costs and adequate in
ventory control.
Coast Guard has implemented improved internal controls, especially to minimize inventory costs of spare
parts for aircraft, and is ensuring that Economic Order Quantity (EOQ) procurement principles are fol
lowed. An EOQ management model is being developed, and work continues on implementation of the
new Aeronautical Maintenance Management Information System (AMMIS) which is designed to im
prove USCG planning, tracking and inventory accountability. The implementation of AMMIS for inven
tory control has experienced delays due to extensive modifications in developing the program. Non-rotational managers of the inventory programs were upgraded to improve staff experience.
2
Next steps: (i) Implementation of AMMIS for inventory control is projected by July 1994. (ii) Pull
database use for inventory control as well as an EOQ management model will be available by Septem
ber 1995.
Department: Inadequate Department Infor In March 1993, DOT issued revised policy statements to better safeguard information systems in grants
mation System Security (ISS).
Annual investment of nearly $3B for infor
mation technology. At risk: technological
and managerial safeguards to adequately
protect information systems.
2
management, funds control, and the management and safety of the Department operational systems.
Next steps: (i) A comprehensive Information Systems Security Plan is to be completed by June 1994. (ii)
DOT plans to complete security oversight reviews of four major Department components to validate
compliance with revised policy by December 1994. (iii) DOT to issue final procedural guidance which
supports the ISS Plan and policies by September 1995. The Plan and procedural guidance should be put
in place as expeditiously as possible and the results validated.
DEPARTMENT OF TREASURY
High Risk Area
Progress to Date and Next Steps
Internal Revenue Service (IRS): Strategy
IRS collection of receivables has not kept pace with the growth in unpaid tax debt, and significant tax
revenues may be lost. During 1993, IRS made progress in accounting for AR by: (i) reducing its esti
mate of collectible accounts in response to a General Accounting Office financial statement audit; (ii) re
moving uncollectible RTC assessments from AR; and (iii) convening a study group to examine redefin
ing AR. IRS continued to revamp the collection process by testing making phone calls earlier to delin
quent taxpayers, instead of waiting for taxpayer responses to several mailed notices and subsequent
calls. Easing procedures for installment agreements and offers-in-compromise in 1992 increased the im
portance of these collections tools during 1993. However, during 1993, delinquent accounts increased
from $62.5B to $63.2B, and collections fell from $24.2B to $22.8B, primarily because of a 14 percent
drop in collections from mailed notices.
for collecting and resolving delinquent
Accounts Receivable (AR) is inadequate.
IRS Accounts Receivable $74B. At risk: at
least $22B in collectible receivables.
Next steps: OMB believes that IRS should undertake a private collection agency pilot to enhance collec
tions and should explore funding options for continued use of private collection agencies. In 1994, IRS
will (i) develop a debt collection performance agreement with Treasury and OMB that includes goals for
collections and delinquent receivables; and (ii) incorporate GAO methodology for determining the Allow
ance for Doubtful Accounts into quarterly receivables reporting to Treasury. OMB and Treasury sup
port a provision in pending legislation to authorize payment of taxes by credit card.
Assess
ment
2
291
24. PROGRESS REPORT: CORRECTING HIGH RISK AREAS
DEPARTMENT OF TREASURY—Continued
High Risk Area
Progress to Date and Next Steps
Customs Service: Inadequate accounting Customs is continuing to improve financial accountability for receivables through the Customs Automated
systems cause problems in accounting for
revenue on imports, data integrity, and
cost accounting.
$20B collected annually. At risk: control of
revenues, including tracking of posted re
ceivables of $883M as of September
1993.
Assess
ment
2
Revenue Accounting Project (CARA). CARA will provide additional revenue accounting capabilities for
the Asset Information Management System (AIMS), Customs' core accounting system. In 1993, a proto
type cost model, user fee pricing model, and a project cost accounting system were implemented in
AIMS to improve cost accounting. A new module of the Automated Commercial System (ACS), Protest
and Fines, Penalties, and Forfeitures (FP&F), is near completion which will improve overall data accu
racy. Other efforts to improve financial data include AIMS enhancements, the ACS financial core
project, and the long-term redesign of ACS through the Future Automated Commercial Environment
Team (FACET) project. These enhancements will enable the systems to provide the quality and level of
data necessary for preparing acceptable financial statements. This endeavor is being coordinated with
the Department's Financial Management System Advisory Committee.
Next steps: In 1994, Customs plans to (i) implement the FP&F module; (ii) begin the redesign of ACS
through FACET; and (iii) perform requirements analysis for CARA. Systems work is expected to con
tinue into 1998.
Departmental: Financial management sys Departmental financial system planning and control has been improved by establishing an office for fi
tem coordination needs improvement.
Treasury is investing $111M in financial
systems development in 1994. At risk:
systems development by bureaus may
not support Departmental financial man
agement initiatives and system integra
tion goals.
Customs: Operations
and Maintenance
(O&M) Account, Air and Marine Interdic
tion Programs lack adequate internal
controls.
Interdiction Operations and Maintenance
Accounts in 1993 total $138M. At risk:
$68M in unobligated balances.
1
nancial systems oversight, and requiring review and approval of bureau systems by the Department.
Department-wide system strategies continue to be developed through the Financial Management Sys
tems Advisory Committee (FMSAC), with bureau participation, to standardize non-core systems. Treas
ury also has been reducing the number and variety of financial systems through the use of off-the-shelf
packages and cross-servicing. By the end of 1993, 90 percent of Treasury's total budget authority was
processed using one of two departmental standard off-the-shelf core financial systems.
Next steps: In 1994, (i) continue to define departmental system strategies through the FMSAC teams; (ii)
establish a departmental data base for summary level financial information; (iii) begin implementation
of the Department-wide travel system at four bureaus with complete implementation at two bureaus;
(iv) establish a departmental strategy for a procurement system; and (v) implement the steps to convert
the Bureau of Public Debt to the new core financial system. OMB believes that an independent review
is necessary to ensure that the Department has adequately resolved this issue.
Customs identified problems in determining the correct amounts of 1992 obligated and unobligated bal
ances in the O&M account. An accounting firm reviewed account balances of the Air/Marine program
for Customs and made recommendations for corrective action, including improved tracking of obliga
tions and expenditures associated with interagency agreements and related contracts. These rec
ommendations, as well as others from a joint Department/Customs task force for improving accounting
policies and procedures, were incorporated into a Customs corrective action plan and implemented. The
Treasury Office of Inspector General (OIG) is reviewing to verify Customs' implementation.
1
Next steps: OIG will complete the review in early 1994.
Customs and DCKTs Immigration and Nat SEE NEW AREA UNDER ‘DEPARTMENT OF JUSTICE” .
uralization Service: The dual manage
_
ment structure providing land border in
spections and clearance is inadequate.
DEPARTMENT OF VETERANS AFFAIRS
High Risk Area
Progress to Date and Next Steps
Veterans Benefits Administration (VBA): The integrity of claimants’ income reporting for compensation and pension benefit entitlement purposes
Compensation and pension benefit over
payments.
1994 budget includes $16.8B for compensa
tion and pension benefits. At risk: ap
proximately $60M in potential overpay
ments to beneficiaries annually.
Drugs and medical supply inventories in
VA hospitals replenished at rate of
$450M a year. At risk: $30M in potential
loss of drugs in inventory due to waste,
theft or loss.
D
requires validation of claimants' income reports. Sampling by the Office of Inspector General (OIG) in
June 1989 of wage matches and audits had disclosed over $53M in overpayments and over 6,000 cases
referred for further investigation. VA has since implemented a system to perform income verification
matches with IRS and SSA. Of 47,800 cases reviewed in 1992, 12,994 (9 percent) resulted in termi
nation or reduction of benefits. In addition, overpayments of $61.1M were identified for collection, and
costs estimated at $27.5M were not incurred. Efforts in 1993 are producing even better results: cases
reviewed through July 1993 have yielded terminations or reductions in 9,800 cases; overpayments of
$61.8M; and cost avoidances of $28.6M. Post-implementation evaluation by the OIG validated corrective
actions. DELETED FROM THE HIGH RISK LIST.
Veterans Health Administration (VHA): VA decision to convert to a unit dose (rather than ward stock system) is now the standard for pharma
Medical supply inventory controls inad
equate. Medical centers and nursing
homes dispense large quantities of drugs.
Scattered local systems provide poor con
trols.
Assess
ment
ceutical technology being implemented in all segments of hospital and pharmacy practices in the VA
system. 16,300 of planned 20,800 bed conversions completed by 1993. In 1994 an additional 135 FTE
will be allocated to complete remaining 4,500 bed conversions to the unit dose system and implementa
tion of automated technologies to dispense drugs.
Next steps: (i) Complete remaining conversions from ward stock system, (ii) Procure and install bar code
readers at all facilities to implement a perpetual medical supply inventory system, (iii) Conduct postimplementation evaluation of new unit dose distribution system's effectiveness in 1995.
1
292
ANALYTICAL PERSPECTIVES
DEPARTMENT OF VETERANS AFFAIRS—Continued
High Risk Area
Progress to Date and Next Steps
Assess
ment
VHA: Health care facilities construction
Facilities Program developed an overall systemic approach to construction planning to improve efficiency
and effectiveness, based on facility planning standards. Construction planning models were developed
and tested, and are now in use in all field facilities. Evaluation by VA’s Strategic Planning and Policy
Office (with OIG concurrence) validated the overall viability of the model; further refinement of the
model with additional demographic data would not be cost effective in light of the potential impact of
future health care reform proposals on VA facilities. DELETED FROM THE HIGH RISK LIST.
D
Departmental: Internal management con VA’s Chief Financial Officer has implemented an effective program to identify and correct management
D
planning process lacks design and per
formance standards.
1994 budget provides $476M for facility
construction. At risk: $50M in additional
unnecessary costs, cost overruns, or fa
cilities exceeding actual needs.
trols program weak.
VA budget exceeds $35.9B. At risk: assur
ance that funds and operations are ade
quately protected against fraud, waste
and abuse.
control weaknesses. A Senior Management Review Council has been established; an awareness training
package has been prepared for managers and liaisons; and the management control, budget and strate
gic planning processes have been integrated. In 1993, a Management Control Tracking System was de
veloped to monitor corrective actions. DELETED FROM THE HIGH RISK LIST. Department will re
tain this as a material weakness.
VBA: Financial information for credit pro VA has not effectively integrated VBA and departmental systems and procedures to support credit reform
grams is inadequate.
VA direct and guaranteed loan programs
total approximately $43B in 1994. At
risk: the integrity of VA’s financial
databases, which are used in making
budget and policy decisions in credit pro
grams.
A
initiatives affecting loan programs. Many operations still rely on labor-intensive, unintegrated modules,
which forces reliance on manual accumulation of data to prepare major financial reports. This may re
sult in untimely submissions to Treasury and OMB. Systems support and resource assignments for
credit reform have been a low priority at VA, negatively impacting the Department’s ability to meet all
accounting and reporting requirements, e.g., accounting by cohort year as required by law. The poten
tial for inaccurate data being reported to OMB and Treasury increases each year. ADDED TO THE
HIGH RISK LIST.
Next steps: VA needs to establish an action plan to improve the reliability and accuracy of credit reform
accounting data and develop cohort year data for estimating subsidies. This plan must integrate VBA
systems and departmental core accounting systems as necessary to achieve satisfactory data integrity.
ENVIRONMENTAL PROTECTION AGENCY
High Risk Area
Progress to Date and Next Steps
Agency: Financial system does not provide
EPA has defined its future course for integrating its core financial accounting system with its other finan
cial systems in its Integrated Financial Management System (IFMS) Strategic Master Plan. A new re
lease of the IFMS software is scheduled for implementation in Spring 1994 which will eliminate prob
lems with system documentation and usability of the system. Information access from IFMS has been
improved with implementation of a report generation system, but easy access to timely and useable fi
nancial information to produce internal and external reports, including financial statements, remains a
problem. Data inaccuracies resulting from data conversion during the 1989 IFMS implementation are
reported as corrected subject to verification. Improvements in debt servicing have been made in the ac
counts receivable module. However, enhancements are still needed to fully automate installment pay
ments and the compounding of interest for Superfund receivables.
timely data or support accounting for re
ceivables.
Accounts receivable, as of June 1993, were
$355M. At risk: assurance that these
funds are accounted for in an accurate
and timely fashion.
Next steps: (i) Implement the new version of IFMS software in 1994. (ii) Continue to improve integration
of IFMS with other financial systems in 1994. (iii) Eliminate redundant legacy systems in 1994-95. (iv)
Improve automated accounting for receivables in 1995.
Assess
ment
2
293
24. PROGRESS REPORT: CORRECTING HIGH RISK AREAS
ENVIRONMENTAL PROTECTION AGENCY—Continued
High Risk Area
Progress to Date and Next Steps
Superfund: Program lacks adequate con EPA reports significant improvement in accelerating cleanup of Superfund NPL sites— cleanups have in
trols to ensure timely cleanup of Na
tional Priorities List (NFL) sites and con
sistent management of the Alternative
Remedial Contracting Strategy (ARCS)
contracts.
1994 budget includes $1.5B for Superfund.
At risk: environmental safety at NFL
sites, and assurance that contract funds
are being managed efficiently and effec
tively.
Agency contract management: Persistent,
widespread problems in contract man
agement.
1994 budget includes $1.5B for contracting.
At risk: environmental safety, and assur
ance that contract funds are being man
aged efficiently and effectively.
Assess
ment
1
creased from 63 in 1991 to over 200 by September 1993. EPA has standardized the remedy selection
process with (i) the use of presumptive remedial guidance, and (ii) the implementation of the Superfund
Accelerated Cleanup Model (SACM). EPA also reports progress in ARCS contract management, with
Regional Management Teams overseeing implementation of the Administrator’s Task Force Report rec
ommendations. Actions to date include: (i) program improvements resulting in an 18 percent reduction
of ARCS program management costs, while total contract utilization increased by 88 percent (from
$75M to $141M); (ii) reassessment of contract capacity; and (iii) for contractor performance evaluations,
(a) using program management costs, (b) limiting length and scope of self-evaluations, and (c) establish
ing a threshold number of hours for evaluation of work assignments.
Next steps: For accelerating cleanups, EPA will conduct self-evaluations of corrective actions. For ARCS
contract management, EPA will (i) conduct reviews to assess each Region’s contract management prac
tices and implementation status; and (ii) begin replacing ARCS contracts with Response Action Con
tracts containing better management controls.
EPA is implementing a comprehensive plan to address agency-wide contract management problems. In
1993, the Agency (i) reorganized and elevated its contract management functions; (ii) established a pilot
project to test use of quality contracting teams to plan, implement, and evaluate individual contracts;
(iii) established senior procurement officials in 10 regions; (iv) initiated a comprehensive, agency-wide
procurement training program; (v) issued a condensed index of all agency procurement documents; (vi)
revised human resource policies to emphasize acquisition management responsibilities in job announce
ments and performance agreements; and (vii) established requirements for contract officers to use inde
pendent government cost estimates to analyze contract costs above $25,000 before contractors begin
work.
2
Next steps: During 1994, EPA will (i) initiate acquisition management workforce planning; (ii) establish
mandatory procurement training for all project officers, managers and senior officials; (iii) prepare final
cost estimate guide and develop corresponding databases to assist with development of valid independ
ent government costs estimates; (iv) issue a requirement that all major contracts have contract manage
ment plans; (v) issue uniform contract management guidance; (vi) train contract personnel on use of
procurement sanctions including suspension and debarment; and (vii) develop policy on allowable and
unallowable indirect costs. In order to decrease EPA’s reliance on contractors, the 1995 budget includes
900 additional FTE to undertake activities previously performed by contractors.
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
High Risk Area
Progress to Date and Next Steps
NASA: Financial accounting systems are NASA is implementing a standard, integrated system that will strengthen financial accounting over con
outdated, labor intensive and not inte
grated agency-wide as required by OMB
Circular A-127. Funds control over con
tractors is weak.
NASA systems process $15B annually. At
risk: assurance that these funds are
being properly accounted for in an accu
rate and timely fashion.
NASA: Contract and subcontract adminis
tration and oversight inadequate.
NASA obligates 89 percent of its annual
budget ($13.5B in 1993) through the pro
curement process. At risk: $200M $500M, representing potential overpay
ments to contractors through erroneous
or fraudulent billings.
Assess
ment
2
tractor funds. System design work for the NASA Accounting and Financial Information System
(NAFIS) and companion Agency-Wide Reporting System was completed in July 1993.
Next steps: Coding and testing are scheduled to be completed by October 1994. In 1995, complete Alpha
and Beta site tests. Implementation at the NASA Centers will begin at Marshall Space Flight Center in
December 1995 and will conclude with Stennis Space Center in July 1997.
Inadequate oversight over prime contractors has created vulnerability to mission failure and financial
losses. Aggressive corrective action plan developed following 1991 OME^NASA review team report.
NASA has: (i) established a Headquarters focus for post-award contract management oversight and pol
icy; (ii) created a new contract management division to monitor corrective actions; (iii) established a
Program Management Council (PMC) to oversee major programs; (iv) implemented a new billing sys
tem to strengthen controls and validate DOD billings for contract management services; (v) intensified
contract management training; and (vi) increased procurement staffing. Authorized ceilings for NASA
procurement offices have been increased by 83 FTE to date. Space station program realignment will re
turn additional staff to general contract management work in support of this effort.
1
Next steps: (i) Continue expansion of contract management training program, (ii) Use PMC to provide rig
orous oversight of major programs, (iii) Add contract management as a mandatory performance element
for all program and contract managers, (iv) Establish mandatory training requirements for contract of
ficer technical representatives, (v) Complete staffing augmentation.
NASA: Environmental restoration, compli Absence of a cohesive agency-wide strategy and plan prior to 1994 resulted in non-uniform programs at
ance, and pollution prevention need pri
ority attention.
Since 1988, over $136M has been obligated
for environmental compliance. At risk:
health and safety of NASA employees
and the public.
NASA Centers which had, in many cases, not fully addressed all components of the environmental pro
gram. NASA has: (i) developed an environmental remediation program; (ii) identified potential hazard
ous waste sites; (iii) established an Environmental Management Council; (iv) developed an Environ
mental Strategic Plan; and (v) established an Operational Environment Team, which provides a central
technology resource to program managers who must comply with environmental requirements.
Next steps: Complete environmental self-assessments at major facilities by early 1994; validate effective
ness of corrective actions.
2
294
ANALYTICAL PERSPECTIVES
AGENCY FOR INTERNATIONAL DEVELOPMENT
High Risk Area
Progress to Date and Next Steps
AID: Financial management systems and
Correction of this high risk area consists of two parts: improvements in payment operations, and imple
mentation of a new financial management system called AWACS. AID has complied with all rec
ommendations resulting from an audit of payment operations and is reducing the material weakness on
payment operations to the status of "significant concern.” Final correction of the payment operations
weaknesses is tied to implementation of AWACS. AID has completed a Financial Management Strate
gic Information Systems Plan (FMSISP) and decided on a technical environment in which to operate.
AID has also started development of AWACS using software obtained from another agency, which re
quires a waiver from mandatory use of the GSA schedule for federal financial management system soft
ware. However, AID has not yet responded officially to the conditions required for a waiver. To date,
AID has completed development of the AWACS General Ledger module and begun work on the Ac
counts Receivabl^Loan Servicing module. AWACS is scheduled for full implementation at AID Head
quarters by mid-1995 and at the missions approximately six months later. However, the effects on the
AWACS project resulting from changes in AID senior management, the AWACS project manager, and
lead technical staff are uncertain.
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, time
ly, and useful fashion.
Assess
ment
3
Next steps: (i) Provide an official response to the waiver conditions, (ii) Implement the AWACS General
Ledger module for 1994 transactions, (iii) Develop and implement other AWACS modules.
AID: Audit coverage of contractors and AID is implementing an Audit Management and Resolution Program (AMRP) to ensure appropriate audit
grantees is inadequate.
AID has not obtained adequate audit cov
erage of overseas projects amounting to
hundreds o f millions o f dollars. At risk:
potential misuse of funds by contractors
and grantees.
1
coverage of recipients of AID funds. AID had previously assigned specific responsibilities to missions,
the Office of Procurement, and the Office of Inspector General (OIG), and finalized guidance on imple
menting AMRP. Missions are now developing audit inventories of all non-U.S. recipients, and the re
sulting number of audits appears to have increased in 1993. The Office of Procurement has been au
thorized to hire additional staff to handle pre-award audits for U.S. recipients, but has had difficulty
filling these positions.
Next steps: (i) H ie OIG will complete an review of AMRP by mid-1994. (ii) OMB believes that the Agency
should validate that audit coverage has adequately increased as the result of AMRP.
AID: Automated systems which contain AID has significantly improved protection over its ADP systems. A disaster recovery service for main
sensitive information are not adequately
protected against disasters.
1994 budget for information resources
management is approximately $13M. At
risk: assurance that this investment and
AID data are adequately protected from
loss due to disasters.
Next steps: Publish comprehensive security policies in AID Handbook.
AID: Agency cannot provide assurance that The Agency is reforming its organization and programs to improve management and accountability of for
its programs are being properly mon
itored, and that it is meeting appropriate
standards for accountability.
Total 1994 AID budget is approximately
$7B. At risk: assurance that these funds
are being spent efficiently and effec
tively.
D
frame functions has been tested regularly since February 1991. Comprehensive computer security poli
cies have been developed for classified and unclassified processing in Washington and overseas (final
issuance has been held up because publication of entire AID Handbook is delayed). Staffing for ADP se
curity has been increased. DELETED FROM THE HIGH RISK LIST.
2
eign assistance resources. AID has (i) initiated a reorganization to streamline offices and reduce man
agement positions; (ii) developed strategy statements for Agency's main objectives (health and popu
lation, democracy* economic growth, environment, and humanitarian assistance); and (iii) identified 21
country programs to be closed by 1996. AID is reviewing the proper roles to be played by contractors,
foreign national employees, and U.S. direct-hire staff.
Next steps: (i) Complete agency reorganizatioiVrightsizing in early 1994. (ii) Issue implementing guide
lines for strategy statements in early 1994. (iii) Introduce streamlined systems and procedures by Sep
tember 1994. (iv) Implement performance measurement system in 1995.
FARM CREDIT ADMINISTRATION
High Risk Area
Progress to Date and Next Steps
Inadequate financial systems, management
information planning, operational sup
port and property controls.
An OMB and Treasury team performed an on-site review in April 1993. The team found that: (i) FCA’s
current financial system is inadequate and cannot be efficiently salvaged; (ii) FCA had selected an ap
propriate replacement system from GSA’s off-the-shelf software schedule; (iii) the planning function
over the management information system is weak; (iv) previous system designs did not adequately con
sider user needs; and (v) internal staff expertise supporting financial systems needs to be strengthened.
FCA processed over $146M in collections
for itself and the Farm Credit System In
surance Corporation during 1993. At
risk: although the system has some func
tioning controls, (for example, over dis
bursement), it lacks other controls which
would detect improper expenditures.
The team made specific recommendations which are being implemented by FCA. For example, the agency
has made significant progress toward installing a new financial system although some technical dif
ficulties, with regard to the IRM platform and network server, were experienced during the installation
and testing phase of the project. OMB has been assured that these problems will be solved in the im
mediate term. FCA has also appointed a new information manager whose explicit objective is to estab
lish the infrastructure needed to correct planning problems and support user needs. Also, an additional
systems accountant position was established in response to the team’s recommendations.
Next steps: The definition of this high risk area has been expanded due to the intricate relationship be
tween information planning and successful financial systems. FCA plans to complete basic financial
systems installation and core requirements conformance during 1994. OMB expects that basic work to
improve the information planning process will be expanded, institutionalized and integrated with finan
cial systems planning during the 1994-95 timeframe.
Assess
ment
2
295
24. PROGRESS REPORT: CORRECTING HIGH RISK AREAS
FEDERAL EMERGENCY MANAGEMENT AGENCY
High Risk Area
Progress to Date and Next Steps
Assess
ment
Internal control program is not fully devel
oped and implemented.
In the past, FEMA was criticized for not implementing an agency-wide management control program.
That deficiency has now been addressed through the strengthened commitment of senior Agency man
agement, the issuance of revised policy and procedures, training, and performance of management con
trol reviews by Headquarters and regional staffs. In 1993, FEMA (i) issued an agency-wide policy defin
ing the responsibilities of the Office of Financial Management, program offices, staff offices, and re
gional offices for management control; (ii) reassigned the audit followup function to the Chief Financial
Officer for linkage with the management control program and eventual joint tracking; (iii) prepared a
"how-to” handbook on management controls; (iv) trained 140 managers and senior staff; and (v) con
ducted financial compliance reviews in the regions and at Headquarters. The importance of manage
ment controls was also recognized beyond the boundaries of the formal management control program in
policies and procedures issued for the Disaster Assistance Program .
D
1994 new budget authority for FEMA is
$788M. At risk: assurance that these
funds are adequately protected against
fraud, waste and abuse.
Deleting this high risk area is not commensurate with declaring that there are no management control
weaknesses in FEMA. OMB believes that FEMA now has a program in place to adequately identify and
subsequently correct weaknesses. DELETED FROM THE HIGH RISK LIST.
Next steps: FEMA’s CFO has provided assurances that the management control program will continue to
receive a high level of support following the reorganization announced in the fall of 1993. As a pilot
agency in the reinventing government experiment, FEMA has committed to reengineering its manage
ment processes and program delivery systems to include appropriate controls.
Financial systems are not integrated. They
are a collection of independently de
signed systems held together through a
series of manual and automated inter
faces.
FEMA continues to use short-term financial system fixes to correct its non-conformance with Federal core
financial system requirements (e.g. implementation of the Department of Education general ledger
package). However, existing systems, including the general ledger package being implemented, continue
to operate on an obsolete hardware platform. FEMA needs to adopt a longer-term perspective for over
coming financial system deficiencies.
At risk: assurance that FEMA’s investment
in financial systems results in an inte
grated system that meets all core re
quirements, and provides accurate and
useful financial information.
Next steps: FEMA has created a team of six technical staff to provide a detailed plan by early 1994 with
implementation dates for the following actions: (i) procure new equipment and migrate financial sys
tems to the new equipment while terminating the Wang operations; (ii) implement new financial sys
tems in the 1994-97 time frame by acquiring commercially available software; and (iii) develop an
agency financial system users group to provide a forum to gather information needs and desires from
various offices within FEMA. These actions are intended to contribute to an integrated system that will
effectively support the agency’s mission.
3
GENERAL SERVICES ADMINISTRATION
High Risk Area
Progress to Date and Next Steps
Information Resources Management Service GSA has revamped its oversight process for developing major information systems. It now incorporates
the corrective actions planned for improving life cycle management of major systems development
(IRMS): Oversight of GSA major infor
mation systems. This encompasses poli
cies and processes established by GSA’s
IRM oversight organization to enforce
good systems life cycle management
practices.
GSA budget for major systems develop
ment efforts is approximately $99M. At
risk: substantial investments in systems
which may not perform as intended.
Federal Supply Service (FSS) and IRMS:
Multiple Award Schedule (MAS) suscep
tible to unnecessarily high prices, failure
of customer agencies to comply with pre
scribed ordering practices, and inad
equate central management by GSA.
MAS program valued at $5B annually. At
risk: MAS prices higher than those com
mercially available and higher govern
ment costs.
Assess
ment
1
projects: top management involvement, experienced project managers, modularly designed and imple
mented systems, use of common information standards, and common-use technology for GSA organiza
tions. In 1993, GSA continued to validate this new oversight process on the Public Buildings Servic^lnformation Systems and FTS 2000 projects.
Next steps: By April 1994, GSA will review results of a detailed study being conducted by management
and the OIG to ensure that all corrective actions have been effectively implemented.
Under the MAS program, GSA provides Federal agencies with a simplified process for obtaining equip
ment, supplies and services at prices associated with volume buying. Ambiguities in the original con
tracting policy resulted in the failure of offerors to accurately disclose pricing information and the nego
tiation of unnecessarily high prices. In 1993 GSA proposed changes to MAS policy and is now consider
ing industry comments, as well as recommendations of the National Performance Review to pilot test a
fully electronic marketplace. GSA is also testing MAS contracting procedures which eliminate signifi
cant vendor data collection requirements and encourage competition among schedule vendors through
use of an electronic bulletin board. GSA is revising MAS ordering procedures to eliminate the manda
tory nature of FSS MAS contracts, provide more competition among schedule vendors, and reduce ad
ministrative costs of the ordering agencies.
Next steps: (i) Conduct additional tests of revised MAS contracting procedures, (ii) Revise MAS pricing
policy and consider a restructuring of the program based on test results, (iii) Publish proposed ordering
procedures in the Federal Register. Because of the ongoing pilot test the MAS corrective action plan will
likely be revised in the summer of 1994.
2
296
ANALYTICAL PERSPECTIVES
NATIONAL LABOR RELATIONS BOARD
High Risk Area
Poor accounting system.
Accounting system processes $170M annu
ally. At risk: assurance that funds are
being accounted for in an accurate and
timely fashion.
Progress to Date and Next Steps
Assess
ment
OMB and the Office of Inspector General performed a joint review of the new accounting system in 1992,
determining that the software installation was successful, but additional work on data, procedures, and
documentation was needed. In 1993, NLRB completed actions on all recommendations made. DE
LETED FROM THE HIGH RISK LIST.
D
OFFICE OF PERSONNEL MANAGEMENT
High Risk Area
Progress to Date and Next Steps
Federal Employees Health Benefits Pro FEHBP management control standards and oversight of insurance carriers' performance require strength
gram (FEHBP): Inadequate internal con
ening. Six key problem areas identified. Progress evident in each area: (i) insurance contract adminis
tration: the Federal Acquisition Regulation concerning proper maintenance of FEHBP contract files was
trol standards and oversight of insurance
carrier operations.
FEHBP totalled $14.5B in 1993. At risk:
higher premium costs to employees and
agencies as a result of excessive pay
ments to carriers and providers; poten
tial fraud in claims submitted.
Assess
ment
1
implemented, and minimum carrier performance standards for FEHBP contractors were developed; (ii)
enrollment and premium reconciliation: pilot project underway using five agencies and five FEHB car
riers to ensure reconcilable enrollee and premium data; (iii) administrative sanctions: program estab
lished and partially operational within Office of Inspector General; (iv) audit resolution: all initial prob
lems addressed, no unresolved findings over six months old, and actual recoveries of disallowed costs
balance reduced from $15M to $2M; (v) defective pricing of community rated plans: revised regulations
implemented to eliminate this problem area; (vi) insurance audit cycles: added as a new problem area
in 1993 and plan developed, but awaits staffing changes to be effective.
Next steps: (i) Complete phase-in of quality assurance standards and implement cost accounting stand
ards. (ii) Ensure that premiums accurately reflect enrollment levels, (iii) Create and publish regulations
to process cases originating from OPM casework (as opposed to the Common Rule cases), (iv) Continue
effective action to recover disallowed costs, (v) OIG will reallocate existing resources to reduce audit
cycle to between three and six years.
OPM Revolving Fund (RF): Financial via
bility of the revolving fund has been
weakened due to the rapidly increasing
deficit in the Investigations Program por
tion of the revolving fund.
RF obligations totalled $247M in 1993.
Fund’s position changed from a $3.3M
surplus in 1991 to a $10M deficit in
1992, and is projected to be much higher
in 1993. At risk: fiscal stability of fund
and threat to continued use by OPM.
The OPM Revolving Fund (RF) is used to finance reimbursable services to other Federal agencies, pri
marily for training and pre-employment and updated background investigations of Federal employees.
By law, the RF must maintain a break-even balance over a reasonable period of years. Recent cutbacks
govemmentwide in hiring new staff and reinvestigating current staff have dramatically reduced the In
vestigations Program’s workload. The reduction in demand for investigative services has not been
matched by a corresponding reduction of investigative costs. As a result, the Investigations Program’s
expenses exceeded revenue by S9.8M in 1992. OPM needs to take aggressive action to control costs and
ensure solvency of the fund over the long run. ADDED TO THE HIGH RISK LIST.
A
Next steps: (i) Develop a plan, including a staffing reassessment, to address the rising deficit, (ii) Bring
the RF into balance by 1995. (iii) Prepare a long range plan to determine how the RF will be used to fi
nance OPM*s reimbursable services, particularly in light of recommendations by the National Perform
ance Review for reinventing OPM.
PEACE CORPS
High Kisk Area
Progress to Date and Next Steps
PC: Agency lacks an effective internal con
PC had previously (i) implemented a program to review internal controls at overseas posts and ensure
that problems are corrected, and (ii) improved management of overseas imprest funds. However, correc
tive action has slipped considerably on the last item included in this high risk area—selecting and im
plementing a new automated personal property management system. PC decided which system to im
plement in late 1993, and is now developing the appropriate software.
trols program at overseas posts, specifi
cally for property management.
1994 budget for overseas operations is
$147M. At risk: assurance that these ex
penditures and government property are
adequately protected against fraud,
waste, and abuse.
Accounting system expected to process
$234M in 1994. At risk: assurance that
funds are being accounted for in an accu
rate and timely fashion.
2
Next steps: (i) Develop inventory database by March 1994. (ii) Issue draft policies and procedures manual
for personal property by September 1994. (iii) Train users on new system by December 1994. (iv) Imple
ment new property management system and complete world-wide inventory in early 1995. PC hopes to
accelerate completion of these milestones.
Headquarters: Financial management sys PC completed its first year of operations with a new headquarters financial management system
tem is antiquated.
Assess
ment
(PCFMS). Implementation of interfaces and system modifications is continuing. PC is reviewing its
plans for converting historical data to determine the most cost-effective method and is continuing to
analyze how to improve the collection of overseas data. The Office of Inspector General (OIG) is con
ducting an audit of the PCFMS implementation and operations, expected to be completed in February
1994.
Next steps: Implement recommendations resulting from the OIG audit of the system and determine
whether or not PCFMS internal controls are adequate to resolve financial management weaknesses.
2
297
24. PROGRESS REPORT: CORRECTING HIGH RISK AREAS
PENSION BENEFIT GUARANTY CORPORATION
High Risk Area
Progress to Date and Next Steps
PBGC: Serious weaknesses exist in all
Serious weaknesses include: (i) a premium subsystem which has been unable to issue automated bills
since 1988; (ii) an inaccurate reporting of the actuarial liability included in financial reports (due to in
adequate supporting data systems and reporting procedures); and (iii) an antiquated core accounting
system which cannot produce basic financial reports. During 1992-93 PBGC collected over $50M in
past due premiums, penalties and interest, as a result of a new manual billing process. Improvements
to the actuarial database continue and reporting procedures have been improved. In September 1993, a
contract was awarded to design and implement a new automated and integrated premium billing and
collection system by late 1994. The project includes cleanup of the database which is critical to accurate
billing of premiums. Project leaders with strong credentials have been charged with oversight of pre
mium system design and implementation. Appropriate levels of staff resources have been assigned to
the premium system project.
major financial systems and subsystems.
Poor controls and systems design under
lie data quality problems in the primary
accounting system, poor functionality in
the premium accounting system, and in
accurate actuarial data in the financial
database.
At risk: full collection of insurance pre
miums due to inadequate records of
amounts due; underdisclosure of a siz
able actuarial liability in the financial
statements.
Assess
ment
2
Next steps: (i) Implement the new premium system design in 1994, define and install any additional re
quirements discovered during the initial implementation, and turn the bulk of premium billing and col
lection activities over to commercial contractor, (ii) Complete requirements analysis to help decide
whether to acquire accounting services through cross-servicing or by procuring an off-the-shelf primary
system.
RAILROAD RETIREMENT BOARD
High Risk Area
Progress to Date and Next Steps
Inadequate management controls and in
ability to certify the adequacy of controls
for the Board’s biggest benefit program.
In 1990 OMB led a management review of RRB resulting in 42 findings and 104 recommendations. RRB
and OMB negotiated a $13.9M 5-year “contract” (1992-1996) to correct past problems. The plan linked
specific reductions in backlogs and other problems with specific resource commitments. Through Sep
tember 1993, RRB was ahead of schedule for reducing backlogs in all eight identified claims processing
categories, and completely eliminated backlogs in three categories. Record correction and tax statement
backlog reduced from 53,456 to 11,355 cases. Wage match agreements now in place for 49 states, D.C.
and Puerto Rico, covering 99 percent of rail employees. Matches resulted in referral of 674 potential
fraud cases to Office of Inspector General in 1993. RRB is also four months ahead of schedule in com
pleting RREyiRS reconciliations.
$8B in benefits, 878,000 beneficiaries in
1994. At risk: 33,706 backlogged claims
cases, down from 79,066 in 1991; 11,355
tax record corrections, down from 53,456;
unrecovered debt owed RRB.
Assess
ment
1
Next steps: Continue OMB and RRB implementation of the 5-year contract and funding commitments in
1995.
SECURITIES AND EXCHANGE COMMISSION
High Risk Area
Progress to Date and Next Steps
Assess
ment
SEC: Management of ADP systems devel
SEC is taking steps to strengthen the management of systems development projects. Following organiza
tional changes and appointment of a new Chief Information Officer in 1992, SEC drafted an integrated
5-year IRM plan in May 1993. However, after review by senior SEC management, further changes were
needed in the plan. The revised plan is scheduled to be resubmitted to SEC senior management in the
immediate term.
2
opment projects needs improvement.
1994 budget includes $17.3M for SEC com
puter systems development projects. At
risk: assurance that this expenditure re
sults in systems that produce accurate,
timely, and useful information.
Next steps: Implementation of the 5-year IRM plan will begin in 1994.
SEC: Commission lacks a long term disas SEC is in the final stages of implementing a comprehensive computer disaster recovery plan. An addi
ter recovery plan for computer oper
ations.
At risk: assurance that SEC data are ade
quately protected, and agency can per
form its mission in the event of a disas
ter.
tional backup computer was installed in the SEC headquarters building in November 1993. Hardware
tests were conducted, and systems tests designed to ensure that critical systems can be run on the new
computer configuration were successfully performed under the IG’s observation in January 1994. The
headquarters building computer will be used as the agency’s backup system and will handle non-critical
daily distributive processing for the agency. DELETED FROM THE HIGH RISK LIST.
Next steps: Use backup computer as appropriate. SEC will continue contingency planning for the EDGAR
system as manual processes are phased out in favor of automated processing.
D
298
ANALYTICAL PERSPECTIVES
SMALL BUSINESS ADMINISTRATION
Progress to Date and Next Steps
High Risk Area
Small Business Investment Company A number o f measures had been completed over the past few years to correct weaknesses in management
and liquidation activities. However, new legislation, changes in SBA management, and budget and
(SBIC): Management/liquidation activi
ties inadequately supervised.
1994 appropriation supports nearly $326M
in SBIC guarantees; outstanding pre
ferred stock and guaranteed debentures
total $1.4B. At risk: $525.5M, rep resent
ing the size of the current liquidation
portfolio.
Assess
ment
2
staffing constraints have overtaken planned corrective actions. SBA is committed to improving the pro
gram and minimizing inherent risks. New procedures to implement the Equity Enhancement Act of
1992, which will have a significant impact on nearly every aspect of the program, will be in place by
July 1994. Capital requirements for licensing will be more restrictive. SBA will assess management ca
pabilities and qualifications of SBIC participants. Since the transfer of the examination function from
the Office of Inspector General to the program, 30 percent more program participants have been exam
ined. Major changes have been instituted to enable SBA to begin the liquidation and recovery processes
sooner, and thereby minimize loss.
Next steps: A new SBIC program manager, who began in January 1994, should bring much needed mana
gerial expertise and leadership in venture capital and equity financing. Implementing procedures are to
be finalized by July 1994. Staffing issues still need to be resolved.
Small Business Development Centers Due to restrictive language in its Congressional appropriations (1988-1992), SBA had been prohibited
from publishing regulations and operating procedures with respect to SBDCs, and accordingly pre
(SBDCs): Lack control over program in
come.
1994 appropriation is $71M for SBDCs. At
risk: assurance that appropriated monies
are protected from fraud, waste and mis
use by grantees.
1
cluded from conducting adequate program oversight. The Small Business Credit and Business Oppor
tunity Enhancement Act of 1992 required SBA to submit proposed regulations for the SBDC program to
congressional committees by March 3, 1993. These proposed regulations, which defined program income
and set internal control and accounting guidelines, were submitted in November 1992. The Small Busi
ness Guaranteed Credit Enhancement Act of 1993, signed on August 17, 1993, lifted the prohibition
against regulation publication. The regulations are currently in SBA’s internal clearance process.
Next steps: SBA projects that regulations will be published in the Federal Register by March 30, 1994 and
issued in final form by June 30, 1994. Validation is planned for 1995 to see if the published regulations
corrected the material weakness.
Surety Bond Guaranty Program (SBGP): Significant progress has been made to strengthen management controls, although some actions have been
Has weaknesses in its system of manage
ment control.
1994 level is $1.75B for SBGP; outstanding
share of bonds issued totals $800M. At
risk: $18M in potential claims.
1
slowed due to resource limitations. On-site reviews of participating sureties are behind schedule but
being performed; Standard Operating Procedure (SOP) revision is targeted for publication by the third
quarter 1994; Supervisory SBG Specialists have been assigned to all Regional Offices; and ongoing na
tionwide training is improving efficiency and effectiveness. A new claims tracking (internal control) sys
tem has been designed and is operational, reducing the average claim reimbursement time from over 90
days to 30 days. A new mainframe computer system is being designed and will be used as a prototype
for the agency. The new system will incorporate the existing claims and recovery tracking systems and
is scheduled to be implemented by October 1994.
Next steps: SBA to (i) complete redesign and implementation of mainframe by October 1994; (ii) continue
on-site reviews; and (iii) complete revision and publication of remaining SOPs by June 1994.
U.S. INFORMATION AGENCY
High Risk Area
Progress to Date and Next Steps
Financial management systems and oper
ations are inadequate.
In 1993, USIA (i) implemented systems to account for procurements in the Office of Contracts; (ii) par
tially integrated accounts payable and fully integrated accounts receivable systems with the core ac
counting system; (iii) implemented an automated personnel-payroll interface for permanent changes in
personnel data, thus eliminating manual rekeying; and (iv) completed an Information Strategy Plan for
administrative systems, and a Functional Area Analysis of the core accounting system, which will be
used as input to the benefit/cost analysis scheduled for completion in 1994.
The USIA domestic core accounting system
processes approximately $900M of the
$1.2B appropriations; the rest is proc
essed through the Department of State’s
overseas accounting system. At risk: as
surance that funds are being accounted
for in an accurate and timely fashion.
Assess
ment
2
Next steps: (i) Complete installation of software needed to integrate the travel advance system and the
accruals portion of the accounts payable system with the core accounting system, (ii) Implement an offthe-shelf PC-based property management system, (iii) Begin implementation of the new procurement
system in small purchasing satellite offices, (iv) Determine whether to replace or upgrade the existing
accounting system, and identify future funding requirements.
UNITED STATES SOLDIERS’ AND AIRMENS’ HOME
High Risk Area
Progress to Date and Next Steps
Financial management controls are weak
and financial management data are poor.
USSAH has made significant progress in improving its financial management controls and data. USSAH
implemented the standard general ledger, and receives general ledger and trust fund accounting service
through a cross-servicing agreement with Treasury. The Naval Audit Service reported in September
1993 that weaknesses remain in accounts receivable, inventory and fixed asset management. In the
short term, however, these issues are being addressed with manual controls and reconciliations. DE
LETED FROM THE HIGH RISK LIST. Remaining areas of weakness will continue to be monitored
closely and reported as material non-conformances.
USSAH manages nearly $150M in funds,
some of which are the small personal ac
counts of resident veterans. USSAH
needs an accurate and timely financial
management system to properly account
for those funds.
Next steps: To resolve the remaining areas of weakness, USSAH will implement: (i) the Trust Fund Ac
counts Receivable System; (ii) a member billing interface with banks; (iii) an inventory interface with
Treasury; and (iv) a procurement interface with Treasury. A follow-up audit will be completed in May
1994 to ensure that appropriate actions have been taken.
Assess
ment
D
FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
EXPLANATORY NOTE
This section includes a detailed tabulation containing information on budget authority (BA),
outlays (O), and subfunctional code number(s) for each appropriation and fund account. Budget
authority amounts reflect transfers of budget authority between appropriations. All budget author
ity items are definite appropriations except where otherwise indicated.
Congressional action on appropriations occasionally results in the establishment of a limitation
on the use of a trust fund or other fund, or an appropriation to liquidate contract authority.
Amounts for these and other such items, which do not affect budget authority, are included
here in parentheses and identified in the stub column, but are not included in the totals.
NOTE, Amounts shown in the detailed tabulation are in millions of dollars. Amounts of
$500 thousand or less are identified by an asterisk.
299
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Legislative Branch
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
estimate
Payments to widows and heirs of deceased members
of Congress:
Outlays............................................. 801 0
Office of the Legislative Counsel of the Senate:
Appropriation, current ...................... 801 BA
Outlays .............................................
0
Expense allowances of the Secretary of the Senate,
Sergeant at Arms, and Doorkeeper of the Senate
and secretaries for the majority:
Appropriation, current ...................... 801 BA
Outlays.............................................
0
Office of Senate Legal Counsel:
Appropriation, current ...................... 801 BA
Outlays.............................................
O
Senate policy committees:
Appropriation, current ...................... 801 BA
Outlays ............................................
O
Inquiries and investigations:
Appropriation, current ...................... 801 BA
Outlays.............................................
O
Expenses of United States Senate Caucus on Inter
national Narcotics Control:
Appropriation, current ...................... 801 BA
Outlays.............................................
O
Miscellaneous items:
Appropriation, current ...................... 801 BA
Outlays.............................................
O
Senators' official personnel and office expense ac
count:
Appropriation, current ...................... 801 BA
Outlays .............................................
O
Office of Senate fair employment practices:
Appropriation, current ...................... 801 BA
Outlays .............................................
O
Secretary of the Senate:
Appropriation, current ...................... 801 BA
Outlays.............................................
O
Appropriation, current ......................
BA
300
*
•
*
*
*
*
*
*
*
64
63
70
70
70
70
Sergeant at Arms and Doorkeeper of the Senate:
Appropriation, current...................... 801 BA
Outlays..................................................... O
Official mail costs:
Appropriation, current...................... 801 BA
Outlays.....................................................O
Settlement and awards reserve, senate:
Appropriation, current...................... 801 BA
Outlays.....................................................O
Stationery (revolving fund):
Appropriation, current...................... 801 BA
Spending authority from offsetting
collections...........................................BA
Outlays.....................................................O
Stationery (revolving fund) (gross) ...
A*
A*
64
63
3
3
70
70
3
3
70
70
3
3
1
1
1
1
1
1
2
2
2
2
3
3
75
70
77
77
•
*
7
7
7
7
7
7
194
195
186
186
214
214
1
1
1
1
1
1
1
1
1
1
2
79
79
75
75
73
73
19
20
20
36
36
11
•
*
—___
•
3
3
3
3
3
3
3
3
3
3
3
3
fl*
•3
BA
O
Congressional use of foreign currency, Senate:
Appropriation, permanent ................ 801 BA
Outlays.............................................
O
Public Enterprise Funds:
Senate recording studio revolving fund:
Outlays............................................. 801 O
Senate photographic studio revolving fund:
Outlays............................................. 801 O
Senate barber and beauty shops (revolving fund):
Outlays ............................................. 801 O
Senate health promotion revolving fund:
Outlays............................................. 801 O
Senate office of public records revolving fund:
Outlays............................................. 801 O
Senate gift shop revolving fund:
Appropriation, current...................... 801 BA
Outlays.............................................
O
___ __
•
•3
fl*
#*
•
*
2
1
•3
•
*
1
1
1
1
*
.................. .................
*
..................
• * ......
78
78
*
1
1
BA
O
Total, offsetting collections..............
Total Stationery (revolving fund)
(net)..............................................
>1
C C
M M
BA
O
18
18
estim
ate
C C
M M
Total Salaries, officers and employ
ees ..............................................
18
18
1995
estim
ate
O
Total Secretary of the Senate......... ....... BA
O
18
16
1994
actual
Outlays.............................................
Senate
Federal funds
General and Special Funds:
Compensation of members, Senate:
Appropriation, permanent ................ 801 BA
Outlays.............................................
0
Mileage of the Vice President and Senators:
Appropriation, current ...................... 801 BA
Outlays.............................................
0
Expense allowances of the Vice President, President
Pro Tempore, Majority and Minority Leaders and
Majority and Minority Whips:
Appropriation, current ...................... 801 BA
Outlays .............................................
0
Representation allowances for the Majority and Minor
ity Leaders:
Appropriation, current ...................... 801 BA
Outlays .............................................
0
Salaries, officers and employees:
Appropriation, current ...................... 801 BA
O
Outlays .............................................
Appropriation, current ......................
BA
Outlays.............................................
O
1993
Account
Total Federal funds Senate.............
BA
O
•
•
..................
465
452
464
464
508
508
72
72
75
75
78
78
671
678
685
777
777
House of Representatives
A<
\
2
Federal funds
General and Special Funds:
Compensation of Members and related administrative
expenses:
Appropriation, permanent ................ 801 BA
Outlays.............................................
O
Payments to widows and heirs of deceased members
of Congress:
Outlays............................... ............. 801 O
Mileage of Members:
Outlays............................... ............. 801 O
Salaries and expenses:
Appropriation, current ...................... 801 BA
Outlays............................................
O
Stationery (revolving fund):
Spending authority from offsetting
collections.................................... 801 BA
301
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Legislative Branch—Continued
(In millions of dollars)
1993
actual
1994
estimate
1995
estimate
__ _
Outlays.............................................
Outlays............................................
Stationery (revolving fund) (gross) ...
BA
Page residence hall and meal plan
(gross)..........................................
0
Total, offsetting collections..............
Total Stationery (revolving fund)
(net).............................................
Total Federal funds House of Rep
resentatives ..................................
BA
0
Beauty shop (revolving fund):
Spending authority from offsetting
collections.................................... 801 BA
0
Outlays.............................................
Total Beauty shop (revolving fund)
(net).............................................
~
BA
House barber shops (revolving fund):
Spending authority from offsetting
collections.................................... 801 BA
Outlays............................................
O
House barber shops (revolving fund)
(gross).........................................
BA
O
Total House barber shops (revolving
fund) (net)...................................
BA
0
Total, offsetting collections..............
BA
0
Page residence hall and meal plan:
Spending authority from offsetting
collections.................................... 801 BA
763
763
858
6
6
6
6
6
6
2
2
1
2
2
2
2
2
2
*
*
*
*
*
*
-*
*
*
63
62
62
62
69
69
2
2
2
2
2
2
Total Federal funds Joint Items
BA
*
*
*
80
78
*
*
87
79
78
86
21
22
22
22
22
23
23
BA
House of Representatives restaurant fund (revolving
fund):
Spending authority from offsetting
collections.................................... 801 BA
Outlays.............................................
0
Total House of Representatives res
taurant fund (revolving fund) (net)
*
Federal funds
General and Special Funds:
Joint Economic Committee:
Appropriation, current...................... 801 BA
Outlays..................................................... 0
Joint Committee on Printing:
Appropriation, current...................... 801 BA
Outlays..................................................... 0
Joint Committee on Inaugural Ceremonies of 1993:
Appropriation, current...................... 801 BA
Outlays..................................................... O
Special services office:
Appropriation, current...................... 801 BA
Outlays..................................................... O
Joint Committee on Taxation:
Appropriation, current................... 801 BA
Outlays..........................................
O
Office of the Attending Physician:
Appropriation, current................... 801 BA
Outlays..........................................
O
General expenses, Capitol police:
Appropriation, current................... 801 BA
Outlays..........................................
O
Salaries, Capitol Police:
Appropriation, current................... 801 BA
Outlays..........................................
O
Capitol Guide Service:
Appropriation, current................... 801 BA
Outlays..........................................
O
Statements of appropriations:
Appropriation, current................... 801 BA
Outlays..........................................
O
0
0
House of Representatives restaurant
fund (revolving fund) (gross).......
*
*
~
_*
Total, offsetting collections..............
*
*
*
*
BA
O
0
BA
Joint Item
s
BA
Total, offsetting collections..............
748
751
BA
0
Total, offsetting collections..............
Beauty shop (revolving fund) (gross)
-1
0
0
Total Recording studio (revolving
fund) (net)....................................
BA
-1
Total Page residence hall and meal
plan (net) .....................................
0
1995
estimate
0
Total, offsetting collections..........
BA
1994
estimate
0
-5
Congressional use of foreign currency, House of Rep
resentatives:
Appropriation, permanent................ 801 BA
0
Outlays............................................
Public Enterprise Funds:
Recording studio (revolving fund):
Spending authority from offsetting
collections.................................... 801 BA
Outlays............................................
Recording studio (revolving fund)
(gross) ..........................................
1993
actual
Office of Technology Assessment
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 801 BA
Outlays.............................................
O
Trust funds
Contributions and donations:
Appropriation, permanent................ 801 BA
Outlays.............................................
O
21
21
*
Congressional Budget Office
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 801 BA
Outlays.............................................
O
23
22
22
302
THE BUDGET FOR FISCAL YEAR 1995
Legislative Branch—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
estimate
1993
actual
Account
Architect of the Capitol
Total, offsetting collections..............
Federal funds
Total Judiciary office building devel
opment and operations fund (net)
General and Special Funds:
Office of the Architect of the Capitol: Salaries:
Appropriation, current...................... 801
Outlays.............................................
Contingent expenses:
Appropriation, current...................... 801
Outlays............................................
Capitol buildings:
Appropriation, current...................... 801
Outlays............................................
Capitol grounds:
Appropriation, current...................... 801
Outlays............................................
West central front of the Capitol:
Outlays............................................ 801
Senate office buildings:
Appropriation, current...................... 801
Outlays.............................................
House office buildings:
Appropriation, current...................... 801
Outlays............................................
Capitol power plant:
Appropriation, current...................... 801
Spending authority from offsetting
collections....................................
Outlays.............................................
Capitol power plant (gross) .
BA
0
8
8
8
8
10
BA
0
*
*
*
*
*
*
BA
0
24
25
24
34
24
30
BA
O
6
5
6
5
6
5
O
6
1
BA
O
53
49
47
58
49
53
BA
O
32
34
32
38
BA
32
33
37
BA
O
3
34
3
36
3
38
BA
35
34
36
36
41
38
-3
BA
O
Alterations and improvements, buildings and grounds,
to provide facilities for the physically handicapped:
Outlays............................................. 801 O
Structural and mechanical care, Library buildings and
grounds:
Appropriation, current...................... 801 BA
Outlays.............................................
O
32
31
-3
33
33
-3
37
35
10
26
10
25
11
10
16
29
16
16
BA
O
179
212
177
233
193
197
Federal funds
Total, offsetting collections............
BA
Copyright Office: Salaries and expenses:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
BA
BA
Congressional Research Service: Salaries and ex
penses:
Appropriation, current...................... 801 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Congressional
Research
BA
O
Total, offsetting collections..............
14
16
16
1
4
33
4
29
15
29
20
33
20
20
20
205
70
262
68
267
76
285
266
262
263
267
281
285
-6 8
-7 6
196
191
195
199
205
209
10
9
11
16
27
17
26
17
28
26
27
26
26
28
28
-1 7
-1 7
10
11
9
9
11
10
57
57
60
2
2
61
59
*
60
59
61
58
59
61
60
Service
(gross)....................................
Intragovemmental Funds:
195
-7 0
BA
O
196
-1 6
Salaries and expenses (gross).....
O
O
BA
O
Salaries and expenses:
Appropriation, current...................... 503 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Total Copyright Office (net).
BA
Judiciary office building development and operations
fund:
801 BA
Spending authority from offsetting
BA
collections....................................
O
Outlays.............................................
Federal funds
Total, offsetting collections ..
Total, offsetting collections..............
8
General and Special Funds:
O
BA
10
Library of Congress
Copyright Office (gross) .....
O
14
28
O
Senate restaurant fund:
Outlays............................................. 801 O
House of Representatives gymnasium:
Spending authority from offsetting
collections.................................... 801 BA
Outlays.............................................
O
Judiciary office building development
and operations fund (gross)........
-4
BA
O
Botanic Garden: Salaries and expenses:
Appropriation, current...................... 801 BA
Outlays.............................................
O
Trust funds
Botanic Garden: Gifts and donations:
Appropriation, permanent................ 801 BA
Outlays.............................................
O
Total Salaries and expenses (net) .
Public Enterprise Funds:
Total House of Representatives
gymnasium (net)..........................
-4
-1
Botanic Garden
40
39
Total, offsetting collections......
House of Representatives gym
nasium (gross).............................
Total Federal funds Architect of the
Capitol..........................................
1995
estimate
General and Special Funds:
O
Total Capitol power plant (net)
9
1994
estimate
Total Congressional Research Serv
ice (net) .......................................
-2
-2
BA
O
Books for the blind and physically handicapped: Sala
ries and expenses:
Appropriation, current...................... 503 BA
Outlays.............................................
O
Collection and distribution of library materials (special
foreign currency program):
Outlays............................................. 503 O
_*
57
59
57
57
60
60
43
45
43
49
50
51
•
303
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Legislative Branch—Continued
(In millions of dollars)
1993
actual
Account
Furniture and furnishings:
Appropriation, current...................... 503 BA
Outlays............................................ ........0
Payments to copyright owners:
Appropriation, permanent................ 376 BA
Outlays............................................ ........ 0
Oliver Wendell Holmes devise fund:
Appropriation, permanent................ 503 BA
Outlays............................................ ........ 0
Trust funds
Gift and trust fund accounts:
Appropriation, permanent................ 503 BA
Outlays............................................ ........ 0
Foreign service national separation liability trust fund:
Appropriation, permanent................ 602 BA
Outlays............................................ ........ O
Total Federal funds Library of Con
gress ............................................
1995
estimate
1993
actual
Account
1994
estimate
1995
estimate
Trust funds
4
5
7
250
250
250
250
*
*
17
16
19
16
*
*
*
*
*
*
523
328
558
570
583
588
16
16
O
6
16
16
BA
6
*
BA
4
213
16
O
Total Trust funds Library of Con
gress ............................................
1994
estimate
17
16
19
17
Contributions:
Outlays ..
.. 801 O
U
nited States Tax Court
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 752 BA
Outlays.............................................
O
Tax courts independent counsel, U.S. Tax Court:
Appropriation, permanent................ 752 BA
Outlays.............................................
O
Trust funds
Tax Court judges survivors annuity fund:
Appropriation, permanent................ 602 BA
Outlays.............................................
O
Total Federal funds United States
Tax Court.....................................
BA
32
32
34
33
36
35
*
*
*
*
*
*
1
1
1
*
*
*
O
Total Trust funds United States Tax
Court...........................................
32
32
34
33
36
35
BA
1
1
1
1
1
1
1
O
Governm P
ent rinting Office
*
Federal funds
General and Special Funds:
Congressional printing and binding:
Appropriation, current...................... 801 BA
O
Outlays............................................
Office of Superintendent of Documents: Salaries and
O Legislative Branch Agencies
ther
89
Appropriation, current...................... 808 BA
Outlays............................................
O
Intragovemmental Funds:
Government Printing Office revolving fund:
Spending authority from offsetting
collections.................................... 808 BA
Outlays............................................
O
Government Printing Office revolving
fund (gross) .................................
95
94
29
29
34
32
90
29
26
906
913
831
794
BA
831
794
881
898
906
913
-831
-881
-9 0 6
0
-3 7
17
7
BA
119
69
117
134
129
132
O
Total, offsetting collections..............
Total Government Printing Office re
volving fund (net) ........................
Total Federal funds Government
Printing Office..............................
BA
O
G
eneral Accounting Office
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 801 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Salaries and expenses (gross) .......
BA
O
Total, offsetting collections..............
Total Salaries and expenses (net) ...
O
Federal funds
General and Special Funds:
National Commission on Acquired Immune Deficiency
Syndrome:
Appropriation, current...................... 801 BA
Outlays............................................
O
Commission on Security and Cooperation in Europe:
Salaries and expenses:
Appropriation, current...................... 801 BA
Outlays.............................................
O
Competitiveness Policy Council:
Appropriation, current...................... 376 BA
Outlays.............................................
O
National Commission on Children:
Outlays............................................ 801 O
International Conferences and Contingencies: House
and Senate expenses:
Appropriation, permanent................ 801 BA
Outlays............................................
O
Copyright Royalty Tribunal: Salaries and expenses:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Copyright Royalty Tribunal (gross)
BA
O
435
431
4
444
2
1
433
457
439
444
432
433
460
457
459
-4
BA
Legislative Branch Boards and Commissions
-2
-1
435
440
431
431
459
456
Total, offsetting collections............
Total Copyright Royalty Tribunal
(net)..............................................
1..................
1..................
1..................
1..................
- 1 ......................
BA
O
Prospective Payment Assessment Commission:
Spending authority from offsetting
collections.................................... 551 BA
Outlays............................................
O
Prospective Payment Assessment
Commission (gross)
2 .........
1
BA
0
304
THE BUDGET FOR FISCAL YEAR 1995
Legislative Branch—Continued
(In millions of dollars)
1993
actual
Account
1994
1995
BA
0
Total Federal funds Legislative
Branch Boards and Commissions
Physician Payment Review Commission:
Spending authority from offsetting
collections.................................... 801 BA
Outlays.............................................
0
Physician Payment Review Commis
sion (gross)..................................
1994
1995
John C. Stennis Center for Public Service Develop
ment trust fund:
Appropriation, permanent................ 801 BA
Outlays.............................................
0
Total, offsetting collections..............
Total Prospective Payment Assess
ment Commission (net)...............
1993
actual
Account
BA
0
Total Trust funds Legislative Branch
Boards and Commissions...........
BA
0
BA
0
Total, offsetting collections..............
Total Physician Payment Review
Commission (net) ........................
-4
Sum ary
m
-4
Federal funds:
(As shown in detail above) ,
BA
0
BA
O
2,637
2,414
2,672
2,761
2,912
2,920
J-7
j-11
j -4
J — 13
j -4
J — 13
BA
O
2,618
2,395
2,656
2,745
2,896
2,903
BA
O
19
19
31
24
25
J-8
j -S
j —*
J-9
j-2
j - *
17
14
10
10
Deductions for offsetting receipts:
National Commission on Manufactured Housing:
Appropriation, current...................... 376 BA
Outlays.............................................
0
Commission on Railroad Retirement Reform:
Outlays............................................. 801 0
Commission on Immigration Reform:
Appropriation, current...................... 801 BA
Outlays.............................................
0
National Commission to Prevent Infant Mortality:
Appropriation, current...................... 808 BA
Outlays.............................................
0
Trust funds
Gifts and donations, National Commission on Children:
Appropriation, permanent................ 801 BA
Outlays............................................
0
United States Commission on Improving the Effective
ness of the United Nations:
Appropriation, permanent................ 153 BA
Outlays.............................................
0
Capitol Preservation Commission trust fund:
Appropriation, permanent................ 801 BA
Outlays.............................................
0
BA/O
BA/O
Total Federal funds ....
Trust funds:
(As shown in detail above) .
21
Deductions for offsetting receipts:
BA/O
BA/O
BA/O
Total Trust funds ....
j-7
j
BA
O
Interfund transactions ................................... 602 BA/O
Total Legislative Branch.................
BA
O
- *
11
11
—*
j —*
j —*
2,630
2,406
2,673
2,755
2,910
2,912
j
The Jutficiary
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
estimate
General and Special Funds:
General and Special Funds:
Total Federal funds Supreme Court
of the United States....................
BA
O
22
20
23
22
24
24
BA
O
3
4
3
4
3
3
Salaries and expenses:
Appropriation, current...................... 752 BA
Outlays.............................................
0
10
9
11
12
12
12
Courts of Appeals, D
istrict Courts, and other Judicial Services
Federal funds
General and Special Funds:
BA
O
26
24
26
26
27
27
U
nited States Court of Appeals for the Federal C
ircuit
Federal funds
Salaries and expenses:
Appropriation, current...................... 752 BA
Outlays.............................................
0
Salaries and expenses:
Appropriation, current...................... 752 BA
Appropriation, permanent................
BA
Spending authority from offsetting
collections....................................
BA
O
Salaries and expenses (gross) .......
General and Special Funds:
1995
estimate
Federal funds
Federal funds
Outlays.............................................
1994
estimate
U
nited States Court of International Trade
Suprem Court of the U
e
nited States
Salaries and expenses:
Appropriation, current......................
Outlays............................................
Care of the buildings and grounds:
1993
actual
Account
12
12
13
12
15
14
Total, offsetting collections..............
Total Salaries and expenses (net) ...
BA
O
2,156
2,477
8
6
6
44
119
2,296
87
2,490
2,111
2,282
2,296
2,570
2,490
-4 4
BA
O
1,979
-1 1 9
-8 7
1,987
2,066
2,162
2,177
2,483
2,403
2,111
2,032
305
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
The Judiciary—Continued
(In millions of dollars)
1993
actual
Account
Defender services:
Appropriation, current......................
Outlays............................................
Fees of jurors and commissioners:
Appropriation, current......................
Outlays............................................
Furniture and furnishings:
Outlays............................................
Court security:
Appropriation, current ......................
Outlays............................................
Judiciary filiing fees:
Appropriation, permanent ................
Outlays............................................
Registry administration:
Appropriation, permanent ................
Outlays............................................
Judiciary automation fund:
Appropriation, permanent................
Outlays............................................
1994
estimate
1995
estimate
1993
actual
Account
752 BA
0
270
249
280
285
290
290
752 BA
0
74
68
77
77
74
78
1995
estimate
Bicentennial Expenses, The Judiciary
Federal funds
General and Special Funds:
Bicentennial activities:
Outlays............................................. 808 O
752 0
752 BA
0
1994
estimate
t Funds
Federal funds
81
82
85
95
55
93
58
58
General and Special Funds:
Payment to judicial trust funds:
Appropriation, current ...................... 752 BA
Outlays..................................................... O
Trust funds
Judicial officers’ retirement fund:
Appropriation, permanent ................ 602 BA
Outlays..................................................... O
Judicial survivors’ annuities fund:
Appropriation, permanent................ 602 BA
Outlays..................................................... O
Claims court judges retirement fund:
Appropriation, permanent ................ 602 BA
Outlays..................................................... O
752 BA
0
BA
0
67
82
2,529
2,570
69
83
2,733
2,803
93
92
3,100
3,021
Adm
inistrative Office of the U
nited States Courts
Total Trust funds Judiciary Retire
ment Funds .................................
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 752 BA
Spending authority from offsetting
BA
collections....................................
Outlays............................................
O
Salaries and expenses (gross) ......
Total, offsetting collections..............
Total Salaries and expenses (net) ...
BA
O
45
45
49
26
70
34
78
34
83
71
70
79
78
83
83
-2 6
BA
O
-3 4
45
44
49
48
BA
O
Total, offsetting collections..............
Total Salaries and expenses (net) ...
Trust funds
Gifts and donations, Federal Judicial Center Founda
tion:
Appropriation, permanent................ 752 BA
Outlays............................................
O
18
18
20
1
*
*
17
18
19
19
17
19
18
20
19
21
8
10
22
6
20
8
36
9
1
1
1
9
9
21
21
35
35
BA
31
10
42
16
60
19
BA
Federal funds
General and Special Funds:
National commission on judicial discipline and removal:
Appropriation, current...................... 752 BA
Outlays.............................................
O
23
18
16
18
18
20
19
Federal funds
*
1
1
*
*
752 BA
O
9
9
9
9
9
2,657
2,692
2,875
2,945
3,267
3,186
J -6 6
J -6 9
J -9 3
8
Sum ary
m
Federal funds:
(As shown in detail above) .................
BA
O
Deductions for offsetting receipts:
Intrafund transactions........................... 752 BA/O
Proprietary receipts from the public .... 752 BA/O
Trust funds:
(As shown in detail above)..................
Interfund transactions...............................
“ *
* .........................
1
U
nited States Sentencing Commission
Total Federal funds .....................
-*
-1
BA
O
9
4
N
ational Commission on Judicial Discipline and Rem
oval
General and Special Funds:
Salaries and expenses:
Appropriation, current.................
Outlays........................................
Federal funds
Salaries and expenses (gross) .......
35
35
-3 4
45
43
Federal Judicial Center
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 752 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Total Federal funds Judiciary Retire
ment Funds .................................
21
21
O
752 BA
0
9
9
O
Total Federal funds Courts of Ap
peals, District Courts, and other
Judicial Services..........................
752 BA
0
Total The Judiciary......................
j
- 1
BA
O
2,590
2,626
2,807
2,876
3,174
3,093
BA
O
32
43
16
20
602 BA/O
752 BA/O
BA
O
10
60
j -14
J-9
2,613
2,628
J -21
2,829
2,872
J - 2 2
3,199
3,078
306
THE BUDGET FOR FISCAL YEAR 1995
Executive Office of the President
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
J iT -L
estimate
1993
actual
Account
1994
estimate
1995
estimate
Compensation of the President
Outlays.............................................
0
3
3
3
Federal funds
Salaries and expenses (gross) .....
BA
O
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
*
3
3
3
3
3
3
3
3
3
3
3
3
3
General and Special Funds:
Compensation of the President:
Appropriation, current...................... 802 BA
0
Outlays............................................
_*
Total, offsetting collections............
Total Salaries and expenses (net) .
BA
O
The W House Office
hite
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 802 BA
Spending authority from offsetting
collections....................................
BA
O
Outlays............................................
Salaries and expenses (gross) .......
BA
O
Total, offsetting collections..............
Total Salaries and expenses (net) ...
Council of Economic Advisers
43
39
42
*
40
*
39
41
43
40
39
39
42
41
-*
BA
O
Salaries and expenses (gross) .....
-*
-*
43
40
*
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current.................... 802 BA
Spending authority from offsetting
collections..................................
BA
Outlays...........................................
O
39
39
42
40
BA
O
_*
Total, offsetting collections............
Total Salaries and expenses (net) .
BA
O
3
3
Executive Residence at the W House
hite
Federal funds
General and Special Funds:
Operating expenses:
Appropriation, current...................... 802 BA
Spending authority from offsetting
BA
collections....................................
O
Outlays.............................................
Operating expenses (gross)............
BA
O
Total, offsetting collections..............
Total Operating expenses (net) ......
Council on Environm
ental Q
uality and Office of Environm
ental Q
uality
8
8
8
1
10
2
10
2
10
9
10
-1
BA
O
10
10
-2
8
9
10
10
-2
8
8
8
8
Total Council on Environmental
Quality and Office of Environ
mental Quality .............................
Federal funds
General and Special Funds:
Operating expenses:
Appropriation, current...................... 802 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Management fund, Office of Envi
ronmental Quality (gross)............
BA
Total Management fund, Office of
Environmental Quality (net)
BA
Total Federal funds Council on En
vironmental Quality and Office of
Environmental Quality.................
Total, offsetting collections..............
0
Trust funds
Donations for the Official Residence of the Vice Presi
dent
Appropriation, permanent................ 802 BA
Outlays.............................................
0
1
1
A*
A*
2
1
1
1
1
2
1
2 ........
2
1
2 ........
3
BA
O
BA
O
- 2 ........
BA
O
.................
BA
O
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 802 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
O
Federal funds
*
1
A*
-2
2 ........
3
1
1
3
1
1
4
5
5
Office of Policy Developm
ent
Special Assistance to the President
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 802 BA
Spending authority from offsetting
collections....................................
BA
2
Total, offsetting collections..............
0
Total Operating expenses (net) ......
3
Intragovemmental Funds:
Management fund, Office of Environmental Quality:
Spending authority from offsetting
collections.................................... 802 BA
Outlays.............................................
O
Official Residence of the Vice President
Operating expenses (gross)............
Federal funds
General and Special Funds:
Council on Environmental Quality and Office of Envi
ronmental Quality:
Appropriation, current...................... 802 BA
Outlays.............................................
O
Appropriation, current......................
BA
Outlays.............................................
O
3
3
3
* ...........................................
Salaries and expenses (gross) .......
BA
O
1
2
4
7
5
4
4
7
7
5
5
307
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Executive Office of the President—Continued
(In millions of dollars)
1993
actual
Account
* ____ 1993
Account
1995
actimota
estimate
1994
1995
actual
estimate
estimate
Outlays.............................................
-1
BA
0
0
55
56
57
Salaries and expenses (gross) .......
Total, offsetting collections..............
Total Salaries and expenses (net) ...
1994
estimate
BA
56
55
57
56
56
57
56
55
57
56
56
57
0
Total, offsetting collections..............
N
ational Security Council
Total Salaries and expenses (net) ...
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 802 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Salaries and expenses (gross) .......
Office of N
ational D Control Policy
rug
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 802 BA
Outlays.............................................
0
Trust funds
Gifts and donations:
Outlays............................................. 802 O
BA
0
___________
Total, offsetting collections..............
Total Salaries and expenses (net) ...
BA
0
BA
0
N
ational Space Council
10
10
6
4
5
*
4
*
4
*
5
4
4
5
5
Office of Science and Technology Policy
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 802 BA
Outlays............................................
O
12
18
52
20
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 802 BA
Spending authority from offsetting
collections.................................
BA
Outlays.........................................
O
1
1
N
ational C
ritical M
aterials Council
Salaries and expenses (gross) ....
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 802 BA
Outlays............................................
O
BA
O
Total, offsetting collections...........
*
Total Salaries and expenses (net)
6
4
-*
BA
O
6
4
-*
-*
4
4
5
5
21
21
Office of Adm
inistration
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 802 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Salaries and expenses (gross) .......
BA
O
Total, offsetting collections..............
Total Salaries and expenses (net) ...
Office of the U
nited States Trade Representative
25
25
28
8
31
4
28
4
31
33
31
29
28
32
31
-8
BA
O
25
23
BA
O
-4
25
23
25
23
28
27
*
*
:e of national service:
Appropriation, current...................... 802 BA
Outlays............................................
0
Total Federal funds Office of Admin
istration ........................................
-4
*
25
24
28
27
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current................... 802 BA
Spending authority from offsetting
collections.................................
BA
Outlays..........................................
O
Appropriation, current...................
BA
Outlays..........................................
O
Salaries and expenses (gross) ,
BA
O
Total, offsetting collections...........
Total Salaries and expenses (net)
20
1
21
22
21
-1
BA
O
20
20
The Points of Light Foundation
Federal funds
Office of M
anagem and Budget
ent
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 802 BA
Spending authority from offsetting
collections....................................
BA
56
General and Special Funds:
Salaries and expenses:
Appropriation, current...................
Outlays..........................................
57
506 BA
O
56
* ...........................................
Sum ary
m
5 ...............
5 ...............
*
*
22
A1
*1
21
22
23
A*
21
21
-*
21
22
21
21
308
THE BUDGET FOR FISCAL YEAR 1995
Executive Office of the President—Continued
(In millions of dollars)
1993
actual
Account
Federal funds:
(As shown in detail above) ,
1994
estimate
236
194
BA
0
1995
estimate
186
193
Account
190
Trust funds:
(As shown in detail above)
1994
estimate
actual
1995
estimate
BA
0
Total Executive Office of the Presi
dent ..............................................
236
194
BA
0
190
188
186
193
Funds Appropriated to the President
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
estimate
Federal funds
General and Special Funds:
........
Total Contribution to the Inter
national Development Association
investm in M
ent
anagem Im
ent provem
ent
BA
O
1,024
774
Contribution to the International Finance Corporation
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
(Outlays)...........................................
O
(International cooperation):
(Appropriation, current).................... 156 BA
(Outlays)..........................................
O
Federal funds
36
19
General and Special Funds:
Investment in management improvement:
Outlays............................................. 802 O
.....................
Federal D Control Program
rug
s
Federal funds
General and Special Funds:
High intensity drug trafficking areas program:
Appropriation, current...................... 802
Outlays............................................
Special forfeiture fund:
Appropriation, current...................... 802
Outlays.............................................
98
52
49
BA
O
BA
O
14
1
68
12
8
8
10
Sum ary
m
Federal funds:
(As shown in detail above)
BA
14
O
1
64
56
j —*
Total Federal Drug Control Pro
grams ...........................................
106
79
j —*
Deductions for offsetting receipts:
intrafund transactions........................... 908 BA/O
BA
O
14
*
64
56
106
79
Multilateral Assistance
Federal funds
General and Special Funds:
Contribution to the InternationaT Bank for Reconstruc
tion and Development
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
92
56..............
56
(Outlays)...........................................
O
87
66
(International cooperation):
(Appropriation, current).................... 156 BA
...........................................
(Outlays)...........................................
O
........................................... ...............
BA
O
92
87
56
66
Total Contribution to the Inter
national Finance Corporation......
Contribution to the Inter-American Development
(International development and human
itarian assistance):
(Appropriation, current).................... 151
(Outlays)...........................................
(International cooperation):
(Appropriation, current).................... 156
(Outlays)...........................................
Total Contribution to the Inter-American Development Bank..............
International Sustainable Developm and H anitarian Program
ent
um
s
Total Contribution to the Inter
national Bank for Reconstruction
and Development ........................
1995
Contribution to the International Development Associa
tion
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
1,024
1,024...
(Outlays)...........................................
O
774
925
(International cooperation):
............................................
(Appropriation, current).................... 156 BA
U
nanticipated Needs
Unanticipated needs:
Appropriation, current...................... 802 BA
Outlays.............................................
0
1994
estimate
1993
actual
Account
Contribution to the Asian Development Bank
(International development and human
itarian assistance):
(Appropriation, current).................... 151
(Outlays)...........................................
(International cooperation):
(Appropriation, current).................... 156
(Outlays)..........................................
Total Contribution to the Asian De
velopment Bank...........................
BA
O
36...
38
............................................
............................................
36
36
19_________ 38_
1,250
1,250
1,128
30
89
13
44
Bank
BA
O
77
45
76...
103
BA
O
BA
O
77
_________ 45
BA
O
101
67
110
............................................
............................................
76
103
76...
82
4
111
116
BA
O
............................................
............................................
170
3
BA
O
101
76
_________ 67_________82_
170
120
Contribution to the African Development Fund
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
(Outlays)..........................................
O
(International cooperation):
(Appropriation, current).................... 156 BA
Total Contribution to the African De
velopment Fund...........................
1,024
925
1,128
BA
O
104
110
135...
110
............................................
120
21
104
135
21
110
110
120
309
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Funds Appropriated to the President—Continued
(In millions of dollars)
1993
actual
Account
1994
1995
estimate
Contribution to the African Development Bank
(International cooperation):
(Appropriation, current).................... 156 BA
(Outlays)..........................................
0
Total Contribution to the African De
velopment Bank...........................
1993
actual
Account
(Spending authority from offsetting
collections)...................................
(Outlays)...........................................
Operating expenses of the Agency
for International Development
(gross)..........................................
BA
0
Contribution to the European Bank for Reconstruction
and Development
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
(Outlays)..........................................
0
(International cooperation):
(Appropriation, current).................... 156 BA
(Outlays)..........................................
0
Total Contribution to the European
Bank for Reconstruction and De
velopment ....................................
Contributions to enterprise for the Americas investment
fund
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
(Outlays)..........................................
0
(International cooperation):
(Appropriation, current).................... 156 BA
(Outlays)..........................................
0
BA
70
47
70
57
63
75..
8
90
75
100
8
56
54
BA
56
54
•'275
/13
BA
275
13
0
BA
0
320
382
1,903
1,547
361..
370
527
501
526
547
131
-9
- 6 ..
518
492
520
541
BA
O
Operating expenses of the Agency
for International Development
(gross) ..........................................
BA
Federal funds
General and Special Funds:
Sustainable development assistance:
Appropriation, current...................... 156 BA
.........................
Outlays............................................
O
.........................
Operating expenses of the Agency for International
Development
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
518
Total (International
(net).....................
1,838
1,724
107
2,058
1,833
BA
O
Total Operating expenses of the
Agency for International Develop
ment ............................................
BA
O
Payment to the Foreign Service retirement and disabil
ity fund:
Appropriation, current...................... 153 BA
Outlays............................................
O
Operating expenses of the Agency for International
Development, Office of Inspector General
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
(Outlays)..........................................
O
(International cooperation):
(Appropriation, current).................... 156 BA
(Outlays)..........................................
O
Total Operating expenses of the
Agency for International Develop
ment, Office of Inspector General
7
402
518
492
520
541
534
534
-7
...........................................
...........................................
527
395
518
492
520
541
527
527
43
43
44
44
45
45
37
39..
36
40
28
BA
International disaster assistance
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
(Spending authority from offsetting
Drt
(Outlays)..........................................
0
BA
O
Total, offsetting collections..............
Total (International development and
humanitarian assistance) (net)
520..
527
cooperation)
International disaster assistance
(gross)..........................................
2,409
406
131
...........................................
O
Agency for International Development
BA
O
6
(International cooperation):
(Appropriation, current).................... 156 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)..........................................
O
22
Multilateral development bank, Other
(International cooperation):
(Appropriation, current).................... 156 BA
(Outlays)..........................................
0
Total Federal funds Multilateral As
sistance .......................................
16
100
5
0
International organizations and programs:
Appropriation, current...................... 151 BA
Outlays............................................
0
131
Total, offsetting collections..............
90
North American development bank
(International cooperation):
(Appropriation, permanent).............. 156 BA
(Outlays)..........................................
0
Total Multilateral development bank,
Other...........................................
547
O
0
Total North American development
bank............................................
9
501
10
BA
0
Total Contributions to enterprise for
the Americas investment fund....
Total (International development and
humanitarian assistance) (net)....
1995
estimate
BA
O
Total, offsetting collections..............
60..
63
1994
estimate
37
36
40
37
146..
96
81
66
52
96
146
81
66
146
81
66
- 3 .......
BA
O
(International cooperation):
(Appropriation, current).................... 156 BA
49
93
170
310
THE BUDGET FOR FISCAL YEAR 1995
Funds Appropriated to the President—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
estimate
(Outlays)..........................................
Total International disaster assist
ance .............................................
42
0
Functional development assistance program:
Appropriation, current...................... 151
Reappropriation................................
Spending authority from offsetting
collections....................................
Outlays.............................................
Appropriation, current......................
Outlays.............................................
Functional development assistance
program (gross)...........................
170
109
BA
1,379
1,463
1,269
*-1 6 0
"-1 3
1,086....
1,256
1,198
h
- 88
1,110
- 3 ...........................................
BA
BA
O
0
BA
O
BA
O
1,377
1,460
1,086.
1,256
1,110
785
741
784
651
666
8
7
5
30
25
29
100
44
BA
35
15
50
76
BA
O
98
67
77
77
76
76
-4 9
-5 0
-5 0
49
18
27
27
26
26
BA
O
0
2
(25)
(26)
1..
BA
O
Total Private sector revolving fund
liquidating account (net)..............
BA
BA
O
-1 .
- 3 ________ - 2
-3
Economic assistance loans — liquidating account
Spending authority from offsetting
collections.................................... 151 BA
Outlays.............................................
O
BA
Total, offsetting collections.............. 151
-5 ..
BA
0
Total Economic assistance loans —
liquidating account (net)............
-4 2 2 ...........................................
BA
0
(2,000)
(2,000)
(2,000)
24..
BA
(150)
11
(110)
36
(82)
9
20
6
BA
0
BA
25
11
Housing and other credit guaranty programs liquidating
account
Appropriation, permanent................ 151 BA
(76)
(1)
Total, offsetting collections..............
BA
0
5
1..
(5).....................
O
0
50
77
Private sector revolving fund liquidating account:
Spending authorily from offsetting
collections.................................... 151 BA
Outlays.............................................
O
Private sector revolving fund liq
uidating account (gross)..............
5
0
Total Housing guarantee program
account........................................
Total Micro and small enterprise de
velopment program account.......
1995
estimate
49
67
Micro and small enterprise development program ac
count
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
(Limitation on direct loan activity) ....
(Limitation on guarantee commit
ments) ..........................................
(Outlays)...........................................
O
(International cooperation):
(Appropriation, current).................... 156 BA
(Outlays)..........................................
O
BA
Total, offsetting collections..............
Intragovemmental Funds:
Advance acquisition of property—revolving fund:
Appropriation, current...................... 151
Outlays.............................................
Credit Accounts:
Loan guarantees to Israel program account:
Limitation on loan guarantee
committments............................... 151
Housing guarantee program account
(International development and human
itarian assistance):
(Appropriation, current).................... 151
(Limitation on loan guarantee com
mitments) .....................................
(Outlays)...........................................
(International cooperation):
(Appropriation, current).................... 156
(Outlays)...........................................
Total Housing and other credit guar
anty programs liquidating account
(net)..............................................
15
0
Total Property management fund
(net)..............................................
Housing and other credit guaranty
programs liquidating account
(gross)..........................................
1994
estimate
BA
O
Total, offsetting collections..............
0
Property management fund (gross) .
1,246
3
1,463
Total, offsetting collections..............
Sub-Saharan Africa development assistance:
Appropriation, current...................... 151
Outlays............................................
Sahel development program:
Outlays............................................ 151
American schools and hospitals abroad:
Appropriation, current...................... 151
Outlays.............................................
Sub-Saharan Africa disaster assistance:
Appropriation, current...................... 151
Outlays.............................................
Public Enterprise Funds:
Property management fund:
Appropriation, current....................... 151
Spending authority from offsetting
collections....................................
Outlays.............................................
146
81
Spending authority from offsetting
collections....................................
Outlays.............................................
22
0
Total Functional development assist
ance program (n et).....................
49
93
1,355
BA
1993
actual
Account
24
36
20
27
26
Trust funds
Foreign sendee national separation liability trust fund:
Appropriation, permanent................ 602 BA
Outlays.............................................
0
Miscellaneous trust funds, AID
(International development and human
itarian assistance):
(Appropriation, permanent).............. 151 BA
(Outlays)..........................................
O
(International cooperation):
(Appropriation, permanent).............. 156 BA
(Outlays)...........................................
O
Total Miscellaneous trust funds, AID
BA
0
14
-4 2 2 ...........................................
-4 2 2 ...........................................
58
58
58
58
Sum ary
m
Federal funds:
(As shown in detail above)
BA
O
2,597
2,548
2,672
2,743
3,239
2,974
311
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Funds Appropriated to the President—Continued
(In millions of dollars)
1995
estimate
1994
estimate
1993
actual
Account
1993
actual
Account
(Outlays)..........................................
Deductions for offsetting receipts:
BA/O
BA/O
BA/O
BA
O
Total Federal funds.............
Trust funds:
(As shown in detail above)..........
BA
O
Deductions for offsetting receipts:
Proprietary receipts from the pul
BA/O
BA
O
Total Trust funds .................
BA/O
Total Agency for International Devel
opment .........................................
-866
J -6 8 9
J -3 7 0
J-352
J —597
j —*
J-300
1,361
1,312
1,631
1,702
2,342
2,077
j
60
58
7
5
7
5
J-58
J-5
J-5
2
2
j -2
J-2
—
*
*
*
BA
1,361
1,310
1,631
1,700
2
1
1
2
1
1
Sum ary
m
Federal funds:
(As shown in detail above)......................
Trust funds:
(As shown in detail above)......................
BA
218
0
220
211
225
226
226
2
1
1
2
1
1
j —*
j —*
j —*
220
212
220
227
226
31
31
BA
0
Interfund transactions ................................... 602 BA/O
Total Peace Corps...........................
BA
0
BA
O
1995
estimate
0
0
2
J-2
Total Peace Corps miscellaneous
trust fund .....................................
1994
estimate
226
2,342
2,075
Inter-American Foundation
Federal funds
General and Special Funds:
Inter-American Foundation
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)..........................................
O
Peace Corps
Federal funds
General and Special Funds:
Peace Corps
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)..........................................
O
Peace Corps (gross) .......................
220
3
214
8
232
214
227
232
-3
BA
O
Total, offsetting collections..............
Total (International development and
humanitarian assistance) (net)....
218
- 8 ........
221
40
BA
O
218
Total (International development and
humanitarian assistance) (net)....
220
211
225
40
226
193
BA
218
220
0
211
225
234
233
Inter-American Foundation (gross)...
BA
BA
0
31
30
- 6 ........
31
25
BA
218
211
220
225
6
23
31
30
31
25
BA
Total Inter-American Foundation.....
226
226
Total Federal funds Inter-American
Foundation...................................
BA
0
BA
0
Trust funds
Foreign service national separation liability trust fund:
Appropriation, permanent................ 602 BA
Outlays............................................
0
Peace Corps miscellaneous trust fund
(International development and human
itarian assistance):
(Appropriation, permanent).............. 151 BA
(Outlays)..........................................
0
(International cooperation):
(Appropriation, permanent).............. 156 BA
12
37
36
Total, offsetting collections..............
226
185
BA
0
12
-8
31
17
0
0
Total Peace Corps .
12
37
31
(International cooperation):
(Appropriation, current).................... 156 BA
(Spending authority from offsetting
collections)...................................
BA
0
(Outlays)..........................................
Total (International cooperation)
(net).............................................
Total, offsetting collections..............
Total (International cooperation)
(net).............................................
0
Total, offsetting collections............
6
31
39
37
BA
0
(International cooperation):
(Appropriation, current).................... 156 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)..........................................
0
Peace Corps (gross)
40
Inter-American Foundation (gross).
8
37
31
30
31
25
31
29
31
30
31
25
31
29
17..
14
8
African Development Foundation
Federal funds
General and Special Funds:
African Development Foundation
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
17
(Outlays)..........................................
O
14
(International cooperation):
(Appropriation, current).................... 156 BA
.......................
17
312
THE BUDGET FOR FISCAL YEAR 1995
Funds Appropriated to the President—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
(Outlays)...........................................
BA
17
14
17
16
General and Special Funds:
Trade and Development Agency
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)..........................................
O
Trade and Development Agency
(gross)..........................................
BA
O
Total, offsetting collections..............
Total (International development and
humanitarian assistance) (net)
BA
0
BA
17
14
0
Total Trust funds African Develop
ment Foundation .........................
1995
estimate
Federal funds
17
14
Trust funds
Gifts and donations, African Development Foundation
(International development and human
itarian assistance):
(Appropriation, permanent).............. 151 BA
(Outlays)...........................................
0
(International cooperation):
(Appropriation, permanent).............. 156 BA
(Outlays)..........................................
0
Total Federal funds African Devel
opment Foundation .....................
1994
estimate
Trade and Developm Agency
ent
0
Total Gifts and donations, African
Development Foundation............
1993
actual
Account
0
Total African Development Founda
tion ...............................................
1995
17
14
17
16
0
Total Federal funds Trade and De
velopment Agency.......................
International Debt Reduction
40.
11
45
18
60
29
51
45
58
60
29
-11
BA
O
40
34
- 1 8 ........
40
42
(International cooperation):
(Appropriation, current).................... 156 BA
(Outlays)..........................................
0
Total Trade and Development Agen
cy .................................................
BA
40
BA
0
BA
0
Federal funds
29
45
12
40
34
40
42
45
40
40
34
40
42
45
40
22
9
Credit Accounts:
Debt reduction, program account
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
(Appropriation, permanent)..............
(Outlays)..........................................
O
Total (International development and
humanitarian assistance) ............
(International cooperation):
(Appropriation, current)....................
(Outlays)...........................................
Total Debt reduction, program ac
count ............................................
Total Federal funds International
Debt Reduction............................
Total Federal funds International
Sustainable Development and
Humanitarian Programs ..............
Total Trust funds International Sus
tainable Development and Hu
manitarian Programs...................
BA
O
Federal funds
50
Public Enterprise Funds:
46
50
46
Overseas Private Investment Corporation noncredit ac
count
(international development and human
itarian assistance):
(Spending authority from offsetting
collections)................................... 151 BA
(Outlays)..........................................
0
38.....
35
38.....
7
7
BA
0
BA
O
50
46
35
38
7
7
BA
O
50
46
35
38
7
7
BA
O
3,581
3,160
3,772
3,729
4,681
4,188
BA
O
4
3
3
1
2
1
BA/O
Total International Sustainable De
velopment and Humanitarian Pro
grams ...........................................
Overseas Private Investm Corporation
ent
BA
O
J-2
3,583
3,158
J -2
3,772
3,729
J -2
4,682
4,187
Overseas Private Investment Cor
poration
noncredit
account
(gross).........................................
BA
0
Total, offsetting collections..............
71
22
16.
71
22
BA
-1 6 8
-12 0
-1 3 3
-1 2 7
(International cooperation):
(Appropriation, current).................... 156 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)..........................................
0
Overseas Private Investment Cor
poration
noncredit
account
(gross)..........................................
16
16
BA
-1 6 8
-12 0
BA
0
-1 3 3
-1 2 7
-4
26
...........................................
Total, offsetting collections..............
Total Overseas Private Investment
Corporation noncredit account....
9
-2 0
0
Total (International cooperation)
(net).............................................
9
-1 4 9 .........
0
Total (International development and
humanitarian assistance) (net)....
-1 9 0
-1 3 1
............................................
............................................
-1 3 5
-1 1 5
BA
-1 6 8
0
-12 0
-1 3 3
-1 2 7
-1 3 5
-1 0 6
313
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Funds Appropriated to the President—Continued
(In millions of dollars)
1993
actual
Account
Credit Accounts:
Overseas Private Investment Corporation program ac
count
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
(Limitation on direct loan activity) ....
(Limitation on loan guarantee com
mitments) .....................................
(Outlays)..........................................
0
(International cooperation):
(Appropriation, current).................... 156 BA
(Outlays)..........................................
0
Total Overseas Private Investment
Corporation program account .....
BA
Overseas Private Investment Corporation liquidating
account:
Spending authority from offsetting
collections.................................... 151 BA
Outlays............................................
O
BA
O
Total, offsetting collections..............
Total Overseas Private Investment
Corporation liquidating account
(net)..............................................
Total Federal funds Overseas Pri
vate Investment Corporation
18
(30)
(620)
14
1995
estimate
17..
(16)
(375)
10
(20)
(482)
13
20
9
18
14
34
13
34
13
-3 4
17
1
0
26
15
26
15
-2 6
20
21
24
15
24
15
-2 4
BA
O
-2 0
-11
-9
BA
O
-1 5 0
-1 2 6
-1 1 6
-1 2 8
-1 1 5
-9 3
International Peacekeeping, Regional Security and Democracy Program
s
Federal funds
General and Special Funds:
Countries in transition:
Appropriation, current...................... 156 BA
Outlays............................................
O
Assistance for the new independent States of the
Former Soviet Union
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
(Outlays)..........................................
O
(International cooperation):
(Appropriation, current).................... 156 BA
(Outlays)..........................................
0
Total Assistance for the new inde
pendent States of the Former So
viet Union....................................
BA
O
Assistance to central and eastern europe and other
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
(Outlays)..........................................
O
(International cooperation):
(Appropriation, current).................... 156 BA
(Outlays)..........................................
O
Total Assistance to central and
eastern europe and other...........
1993
actual
Account
Peacekeeping operations
(International security assistance):
(Appropriation, current).................... 152 BA
(Outlays)..........................................
0
(International cooperation):
(Appropriation, current).................... 156 BA
(Outlays)...........................................
O
Total Peacekeeping operations.......
BA
O
Total Federal funds International
Peacekeeping, Regional Security
and Democracy Programs ..........
BA
O
O
Overseas Private Investment Cor
poration
liquidating account
(gross).........................................
1994
estimate
BA
O
...........................................
...........................................
1,018
48
143
39
1,510.....................
635
694
1994
estimate
76..
74
28
900
194
1,018
_________ 48
900
887
438
319
1,510
635
390.....................
422.....................
...........................................
...........................................
438
319
390
422
380
448
380
448
23
75
52
39
28
76
74
75
75
1,495
395
1,976
1,131
1,498
1,450
International Narcotics, Trafficking, Terrorism and C e Prevention
rim
Federal funds
General and Special Funds:
International narcotics trafficking, terrorism, an 1 crime
prevention:
Appropriation, current ...................... 156 BA
Outlays.............................................
O
International narcotics control:
Appropriation, current...................... 151 BA
Outlays.............................................
O
Anti-terrorism assistance:
Appropriation, current...................... 151 BA
Outlays.............................................
O
Total Federal funds International
Narcotics, Trafficking, Terrorism
and Crime Prevention.................
BA
O
252
88
148
133
100
16
15
8
20
5
163
141
115
183
252
172
163
78
Regional Peace, Security and Defense Cooperation
Federal funds
General and Special Funds:
Regional peace and security:
Appropriation, current...................... 156 BA
Outlays.............................................
O
Non-Proliferation and Disarmament Fund
(International security assistance):
(Appropriation, current).................... 152 BA
(Outlays)...........................................
O
(International cooperation):
(Appropriation, current).................... 156 BA
(Outlays)...........................................
O
Total Non-Proliferation and Disar
mament Fund..............................
.......................................
........................................
.......................................
.......................................
Foreign military financing grants
(gross)..........................................
BA
O
Total, offsetting collections..............
Total Foreign military financing
grants (net)..................................
50
32
10
2
BA
Foreign military financing grants:
Appropriation, current...................... 152 BA
Reappropriation.......................................... BA
Spending authority from offsetting
collections..............................................BA
Outlays....................................................... O
Appropriation, current...................... .......... BA
Outlays....................................................... O
5,400
3,645
.....................
.....................
O
...........................................
...........................................
1995
estimate
3,245
3,149..
4,582
4,112
h
-
1,133
66
*-6 1
3,247
4,582
50
35
3,084
4,052
H -
4
1,129
- 2 ...........................................
BA
O
Economic support fund:
Appropriation, current...................... 152 BA
Reappropriation................................
BA
3,245
4,580
3,084
4,052
2,653
23..
2,162..
1,129
314
THE BUDGET FOR FISCAL YEAR 1995
Funds Appropriated to the President—Continued
(In millions of dollars)
1993
actual
Account
Spending authority from offsetting
collections....................................
Outlays.............................................
Appropriation, current......................
Outlays.............................................
Economic support fund (gross).......
BA
O
2,676
3,231
_*
2,072.
2,846
2,676
3,231
2,072
2,846
BA
O
BA
O
International military education and training:
Appropriation, current...................... 152 BA
O
Outlays.............................................
Assistance for relocation of facilities in Israel:
Outlays............................................. 152 O
Assistance for relocation of facilities
in Israel (gross)...........................
O
-2 2
1,229
*-2 5
1,203
1,203
-2 0
42
36
26
21
*
*
18
1 ..
1 ..
-1
-1
47
(770)
79
BA
Federal funds
General and Special Funds:
United States quota, International Monetaiy Fund:
Appropriation, current...................... 155 BA
Outlays.............................................
0
Maintenance of value adjustments, International Mone
tary Fund:
Appropriation, permanent................ 155 BA
Loans to International Monetary Fund:
Appropriation, permanent................ 155 BA
Contribution to enhanced structural adjustments facility
of the International Monetary Fund:
Outlays............................................. 155 0
Appropriation, current......................
BA
2
31
1.,
29..
19
12,063,
325
754
1,836
BA
O
0
Deductions for offsetting receipts:
Proprietary receipts from the public.... 152 BA/O
908 BAA)
BA
O
13
14,653
336
13
100
19
(160)..
257
188
136
Special defense acquisition fund
(gross) ..........................................
257
188
136
-1 9 3
-2 6 6
-2 8 2
-1 9 3
64
-2 6 6
-7 8
-2 8 2
-1 4 6
13,326
13,162
14,650
13,440
14,480
13,850
(770)
25
137
*
47
79
60
25
63
50
3
24
497
27
497
57
525
87
497
77
497
60
525
-3 1 2
-3 4 6
-2 0 4
206
-2 3 5
186
-2 8 6
179
5,876
8,053
4,997
7,215
5,224
6,234
i -4 6 9
i-291
J-574
J-311
1 -6 2 8
i-297
5,116
7,294
4,112
6,330
4,300
5,310
BA
0
19
-MOO
M
ilitary Sales Program
s
60
Sum ary
m
BA
11
Total Federal funds International
Monetary Programs.....................
-291
BA
O
Total, offsetting collections..............
O
Promotion of security and stability in Central America:
Outlays............................................. 153 0
29
17
Total, offsetting collections..............
BA
O
Foreign military loan liquidating account:
Appropriation, permanent................ 152 BA
Spending authority from offsetting
collections....................................
BA
O
Outlays.............................................
Total Regional Peace, Security and
Defense Cooperation ..................
BA
O
International M
onetary Program
s
24..
137
(855)
*
Federal funds:
(As shown in detail above)......................
Outlays.............................................
Central American reconciliation assistance:
0
_*
*
Credit Accounts:
Regional peace and security program account
(International security assistance):
(Appropriation, current).................... 152 BA
(Limitation on direct loan activity) ....
O
(Outlays)..........................................
(International cooperation):
(Appropriation, current).................... 156 BA
Total Foreign military loan liquidat
ing account (net) .........................
Federal funds
24
*
Foreign military loan liquidating ac
count (gross) ...............................
1995
estimate
H — *
BA
O
Total Regional peace and security
program account .........................
1994
estimate
General and Special Funds:
Demobilization and transition fund:
Total Federal funds Special Assist
ance for Central America............
-2 0
Total, offsetting collections..............
Total Assistance for relocation of fa
cilities in Israel (net)....................
2,869
H —90
h
*
1993
actual
Account
Special Assistance for C
entral Am
erica
*
3,231
Military assistance:
Appropriation, current...................... 152 BA
O
Outlays............................................
BA
Appropriation, current......................
Total Military assistance..................
1995
estimate
BA
O
BA
O
Total, offsetting collections..............
Total Economic support fund (net) ..
1994
estimate
Federal funds
Public Enterprise Funds:
Special defense acquisition fund:
Limitation on program level (obliga
tions) ............................................ 155
Outlays............................................
0
Total Special defense acquisition
fund (net).....................................
BA
0
Trust funds
Foreign military sales trust fund:
Contract authority, permanent......... 155 BA
Outlays............................................ ........ 0
Kuwait civil reconstruction trust fund:
Appropriation, permanent................ 155 BA
.......................................... 0
_ *
7
3 .....
Sum ary
m
Federal funds:
(As shown in detail above) .
BA
0
Trust funds:
(As shown in detail above) .
BA
0
-1 9 3
64
-2 6 6
-7 8
-2 8 2
-1 4 6
13,326
13,169
14,650
13,443
14,480
13,850
315
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Funds Appropriated to the President—Continued
(In millions of dollars)
1994
estimate
1995
estimate
J -13,239
J -13,370
J -13,740
87
-7 0
1,280
73
740
-1 0 6
1,014
-5
458
-3 6
1993
actual
Account
Deductions for offsetting receipts:
Proprietary receipts from the public .... 155 BAJO
BA
Total Trust funds ........................
0
Total Military Sales Programs....
BA
0
-6
110
Sum ary
m
Federal funds:
(As shown in detail above).................
26,745
13,313
BA
q
11,623
13,236
1993
actual
Account
12,407
12,861
Trust funds:
(As shown in detail above)......................
Deductions for offsetting receipts:
Proprietary receipts from the public
Total Trust funds .............................
Deductions for offsetting receipts:
Intrafund transactions......................
j —*
908 BA/O
j
-
*
j
-866
J -4 6 9
J -6 8 9
J -5 7 4
J -5 9 7
J -6 2 8
J —661
J -6 6 2
J -5 9 6
24,749
11,317
9,698
11,310
10,585
11,040
BA
O
13,389
13,228
14,658
13,450
14,488
13,856
J-58
J - 13,239
J -5
J -13,370
J -5
J -13,740
91
-7 0
1,283
75
743
J -2
j-2
J -2
24,838
11,245
10,978
11,383
11,326
11,149
BA/O
BA/O
BA/O
BA/O
151 BA/O
155 BAA)
BA
O
Interfund transactions................................... 602 BA/O
Total Funds Appropriated to the
President......................................
1995
estimate
BA
O
Proprietary receipts from the public.... 151
152
156
908
Total Federal funds.........................
1994
estimate
BA
O
J — *
111
Department of Agriculture
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
Office of the Secretary
Outlays.............................................
Federal funds
Total Federal funds Office of the
Secretary......................................
General and Special Funds:
Office of the Secretary:
Appropriation, current...................... 352 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Office of the Secretary (gross)........
9
BA
O
1
11
11
11
12
11
10
9
-1
BA
O
-1
9
8
-1
10
10
10
10
7
9
9
*
*
3
5
BA
O
7
3
.......
BA
O
9
5
-*
9
8
-*
7
3
9
4
9
8
Gifts and bequests:
Appropriation, permanent................ 352 BA
1
3
2
1995
estimate
O
1
3
2
BA
O
16
10
19
14
19
18
BA
O
1
1
3
3
2
2
26
26
118
8
32
37
63
9
118
34
32
63
63
127
118
D
epartm
ental Adm
inistration
Federal funds
General and Special Funds:
Departmental administration:
Appropriation, current...................... 352 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Departmental administration (gross)
BA
O
8
Trust funds
Total Trust funds Office of the Sec
retary ............................................
Total, offsetting collections..............
Total Departmental administration
(net)..............................................
Total, offsetting collections..............
Total Alternative agricultural re
search and commercialization re
volving fund (net) ........................
1
11
9
Public Enterprise Funds:
Alternative agricultural research and commercialization
revolving fund:
Appropriation, current...................... 352 BA
Spending authority from offsetting
collections....................................
BA
.......
Outlays............................................
O
Alternative agricultural research and
commercialization revolving fund
(gross).........................................
10
1
Total, offsetting collections..............
Total Office of the Secretary (net) ...
10
1994
estimate
1993
actual
Account
-8
BA
O
Hazardous waste management:
Appropriation, current...................... 304 BA
Outlays.............................................
O
Office of budget and program analysis:
Appropriation, current...................... 352 BA
Outlays.............................................
O
Agriculture buildings and facilities:
Appropriation, current...................... 352 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Agriculture buildings and facilities
(gross) ..........................................
BA
O
-3 7
-9
26
24
26
26
118
109
16
20
16
24
26
23
6
6
6
6
6
6
76
135
139
2
76
3
119
4
146
78
76
138
119
142
146
316
THE BUDGET FOR FISCAL YEAR 1995
Department of Agriculture—Continued
(In millions of dollars)
1993
actual
Account
Total, offsetting collections..............
Total Agriculture buildings and facili
ties (net) ......................................
1994
estimate
135
115
139
142
1
1
1
1
1
1
178
165
208
208
BA
0
178
165
208
208
210
210
Total, offsetting collections..............
-2 0 8
-2 1 0
0
Total Federal funds Departmental
Administration..............................
-1 3 ..
Total Office of the General Counsel
(net)..............................................
124
0
112
184
172
9
8
1
1
10
10
BA
9
1
0
Total Office of public affairs (net) ....
9
9
9
9
-1
-1
9
BA
0
-1
9
9
10
8
8
Office of the inspector G
eneral
Federal funds
General and Special Funds:
Office of the Inspector General:
Appropriation, current...................... 352 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Office of the Inspector General
(gross)..........................................
Total Office of the Inspector General
(net)..............................................
28
28
28
28
63
BA
O
BA
O
BA
O
1
1
66
1
64
Total National agricultural statistics
service (net).................................
BA
O
Total, offsetting collections..............
64
64
64
BA
O
-3
Federal funds
General and Special Funds:
National agricultural statistics sen/ice:
Appropriation, current...................... 352 BA
Spending authority from offsetting
collections..........................
BA
O
Outlays...................................
66
67
66
-1
-1
63
62
64
64
66
65
63
63
Office of the General Counsel
27
27
25
26
26
3
2
2
-2
-2
25
24
26
26
26
26
59
55
54
10
6
72
61
7
60
69
72
61
61
61
60
_7
-6
59
61
55
55
54
53
*
*
*
81
82
90
12
94
9
90
9
97
93
94
91
90
98
97
N
ational A
gricultural Statistics Service
National agricultural statistics serv
ice (gross)....................................
-1
Federal funds
General and Special Funds:
Office of the General Counsel:
Appropriation, current...................... 352 BA
Spending authority from offsetting
collections....................................
BA
BA
O
Trust funds
Miscellaneous contributed funds:
Appropriation, permanent................ 352 BA
O
Outlays............................................
63
BA
O
Total, offsetting collections..............
28
-1 0
Total Economic research service
(net)..............................................
General and Special Funds:
Office of public affairs:
Appropriation, current...................... 352 BA
Spending authority from offsetting
BA
collections....................................
Total, offsetting collections..............
28
Tn to l AffefiftiM
Federal funds
Office of public affairs (gross).........
27
Federal funds
General and Special Funds:
Economic research sen/ice:
Appropriation, current...................... 352 BA
Spending authority from offsetting
collections ...................................
BA
Outlays.............................................
O
290
281
Office of Public Affairs
1995
estimate
Economic Research Service
Economic research sen/ice (gross)..
BA
1994
estimate
O
Total, offsetting collections..............
BA
Total Working capital fund (net).
Office of the General Counsel
(gross)..........................................
210
210
-1 7 8
Advisory committees:
Appropriation, current...................... 352 BA
0
Outlays............................................
Intragovernmental Funds:
Working capital fund:
Spending authority from offsetting
collections................................... 352 BA
0
Outlays............................................
Working capital fund (gross)...........
Outlays.............................................
76
74
0
1993
actual
Account
-4
-3
-2
BA
1995
estimate
-9
-1 2
BA
O
Trust funds
Miscellaneous contributed funds:
Appropriation, permanent................ 352 BA
Outlays...................................
O
81
82
82
81
90
*
*
*
*
*
*
W Agricultural Outlook Board
orld
Federal funds
General and Special Funds:
World agricultural outlook board:
Appropriation, current...................... 352 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
World agricultural outlook board
BA
0
-9
3
*
3
88
317
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Agriculture—Continued
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
Total, offsetting collections..............
Total World agricultural outlook
board (net)...................................
1993
actual
Account
Buildings and facilities:
Appropriation, current...................... 352 BA
Outlays.............................................
0
Appropriation, current......................
BA
Outlays.............................................
0
BA
0
Total Buildings and facilities............
Federal funds
General and Special Funds:
Agricultural Research Service:
Appropriation, current...................... 352 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
BA
Appropriation, current......................
Outlays.............................................
0
Agricultural
Research
Service
(gross) ..........................................
BA
Total, offsetting collections..............
BA
0
Buildings and facilities:
Appropriation, current...................... 352 BA
Outlays .
0
Appropriation, current............
BA
Outlays...................................
0
Total Buildings and facilities ...
BA
0
Trust funds
Miscellaneous contributed funds:
Appropriation, permanent................ 352 BA
Outlays .
Total Federal funds Agricultural Re
search Service.............................
BA
0
Total Trust funds Agricultural Re
search Service.............................
BA
0
661
684
27
690
* —16
ff-1 3
27
717
h
- 3
685
702
695
677
728
713
-2 7
-2 7
661
677
668
701
650
686
49
26
54
35
h
- 8
h
- 1
h
BA
Total Cooperative state research
service (net).................................
150-003
http://fraser.stlouisfed.org/0-94-11 (QL 3)
Federal Reserve Bank of St. Louis
BA
0
485
445
449
501
421
477
428
435
432
14
418
18
444
18
451
(404)
(426)
(433)
*1
*1
*1
A( 1 )
A(1 )
442
418
454
445
450
452
-1 4
-1 8
-1 8
428
404
436
427
432
434
18
*
18
*
20
BA
Federal funds
General and Special Funds:
Extension service:
Appropriation, current...................... 352 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Outlays for grants to State and local
governments................................
0
Appropriation, current......................
BA
Outlays.............................................
0
Outlays for grants to State and local
governments................................
0
Extension seivice (gross)................
BA
0
Total, offsetting collections..............
Total Extension service (net)..........
35
46
24
48
26
49
11
12
12
9
9
9
3
695
723
692
698
727
736
11
12
12
9
9
9
BA
0
N
ational A
gricultural Library
Federal funds
General and Special Funds:
National Agricultural Ubraiy:
Appropriation, current...................... 352 BA
Appropriation, permanent................
BA
Spending authority from offsetting
BA
Outlays.............................................
0
National Agricultural Lforary (gross).
BA
Total, offsetting collections..............
Total National Agricultural Library
(net)..............................................
430
3
454
3
15
415
16
469
16
451
(213)
(245)
H —30
(229)
3
H - 9
h
-
448
415
443
466
437
442
-1 6
-1 6
433
400
427
450
421
426
BA
t
4
4
22
22
4
23
21
22
22
22
23
23
-4
18
19
-4
-4
18
18
20
443
452
436
26
503
36
467
38
471
469
503
488
467
474
471
-2 6
0
419
3
-1 5
Total, offsetting collections..............
51
H -
Extension Service
- 4
Federal funds
0
23
52
54
701
25
702
Cooperative State Research Service
Cooperative state research service
(gross)..........................................
52
45
BA
0
General and Special Funds:
Cooperative state research service:
Appropriation, current...................... 352 BA
Appropriation, permanent................
BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Outlays for grants to State and local
governments................................
0
Appropriation, current......................
BA
Outlays.............................................
0
57
54
*-3 4
H -2
0
-2 5
0
Total Agricultural Research Service
(net)..............................................
Total Federal funds Cooperative
State Research Service..............
1995
estimate
52
45
0
A
gricultural Research Service
1994
estimate
-3 6
-3 8
443
477
452
431
436
433
10
10
7
19
Anim and Plant H
al
ealth Inspection Service
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 352 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Salaries and expenses (gross)
BA
0
Total, offsetting collections..............
Total Salaries and expenses (net)...
BA
0
Buildings and facilities:
Appropriation, current...................... 352 BA
318
THE BUDGET FOR FISCAL YEAR 1995
Department of Agriculture—Continued
(In millions of dollars)
1993
actual
Account
Outlays............................................
1995
estimate
1994
estimate
10
0
Trust funds
Total, offsetting collections..............
Total Inspection and weighing serv
ices (net)......................................
Miscellaneous trust funds:
Appropriation, permanent................ 352 BA
Outlays............................................
0
Total Federal funds Animal and
Plant Health Inspection Service ...
BA
0
Total Trust funds Animal and Plant
Health Inspection Service...........
454
482
462
441
443
442
Food Safety and Inspection Service
Federal funds
Salaries and expenses (gross).......
BA
494
517
Total, offsetting collections..............
534
67
562
69
602
(36)
(40)
(41)
J -1 0 3
Marketing services (gross) ..............
'103
BA
0
Trust funds
Expenses and refunds, inspection and grading of farm
products:
Appropriation, permanent................ 352 BA
0
Outlays............................................
603
602
Total Marketing services (net).........
-6 9
Payments to States and possessions:
Appropriation, current...................... 352
Outlays.............................................
Outlays for grants to State and local
governments................................
Perishable Agricultural Commodities Act fund:
Appropriation, permanent................ 352
Outlays.............................................
Funds for strengthening markets, income, and
(section 32):
Appropriation, permanent................ 605
Spending authority from offsetting
collections....................................
Outlays.............................................
Outlays for grants to State and local
governments................................
557
570
584
562
-6 7
494
506
2
2
517
495
2
2
431
430
2
2
Federal G Inspection Service
rain
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 352 BA
Outlays .
0
Appropriation, current......................
BA
Spending authority from offsetting
collections....................................
BA
14
BA
11
Salaries and expenses (gross) .......
0
11
12
10
'5
14
12
10
11
14
Public Enterprise Funds:
Inspection and weighing services:
Spending authority from offsetting
collections.................................... 352 BA
Outlays.............................................
0
11
11
J- 5
BA
0
Inspection and weighing services
(gross)..........................................
11
11
7 -5
Total, offsetting collections..............
Total Salaries and expenses (net) ...
BA
0
1995
estimate
-4 3
- 43
BA
O
- 2 ..
BA
O
11
12
12
10
6
6
56
57
59
56
(52)
61
(56)
105
62
(57)
Total, offsetting collections..............
7 -1 0 3
Total Salaries and expenses (net) ...
-3 4
Federal funds
General and Special Funds:
Marketing services:
Appropriation, current...................... 352 BA
Spending authority from offsetting
collections....................................
BA
Limitation on administrative level
Outlays.............................................
O
Appropriation, current......................
BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
64
570
-6 4
0
Total Federal funds Federal Grain
inspection Service.......................
1994
estimate
Agricultural M
arketing Service
BA
0
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 554 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Outlays for grants to State and local
governments................................
0
Appropriation, current......................
BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
1993
actual
Account
12
10
6
6
34
32
43
43
43
43
34
32
43
43
43
43
Funds for strengthening markets, in
come, and supply (section 32)
(gross) ..........................................
BA
O
76
119
105
121
120
-5 6
-61
-6 2
7 -6
BA
O
56
63
57
44
52
52
BA
O
1
1
1
1
1
1
O
(1 )
(1 )
(D
7
8
8
8
8
8
BA
627
523
427
BA
O
1
1
1
526
480
417
O
(400)
(400)
(400)
BA
O
628
526
524
480
428
417
-1
-1
-1
627
525
523
479
427
416
103
108
101
101
101
101
37
37
39
39
42
42
37
37
39
39
42
42
BA
O
supply
BA
O
Trust funds
Miscellaneous trust funds:
Appropriation, permanent................ 352 BA
Outlays.............................................
O
Milk market orders assessment fund:
Spending authority from offsetting
collections.................................... 351 BA
O
Outlays.............................................
Milk market orders assessment fund
(gross)..........................................
120
/ —6
112
120
Total, offsetting collections..............
Total Funds for strengthening mar
kets, income, and supply (section
32) (net).......................................
120
BA
O
319
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Agriculture—Continued
(In millions of dollars)
1993
actual
Account
Total, offsetting collections..............
Total Milk market orders assess
ment fund (net)............................
-3 7
BA
0
Total Trust funds Agricultural Mar
keting Service.............................
1995
estimate
-3 9
- 42
BA
0
Total Salaries and expenses (net) ...
692
597
590
532
488
477
103
108
101
101
101
101
Packers and Stockyards Adm
inistration
Packers and Stockyards Administra
tion (gross) .................................
12
13
12
12
'9
j*
BA
12
0
13
12
12
12
12
J- 9
Total, offsetting collections..............
Total Packers and Stockyards Ad
ministration (net)..........................
12
12
7- 8
BA
12
0
13
12
12
4
4
Federal crop insurance corporation
fund (gross) .................................
Salaries and expenses (gross)
'1,014
'379
'1,352
BA
1,394
1,352
0
Total, offsetting collections..............
Total Salaries and expenses (net) ...
' - 379
BA
1,014
973
0
Conservation reserve program:
Appropriation, current ...................... 302 BA
Outlays............................................
0
Salaries and expenses:
Appropriation, current ...................... 351 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Appropriation, current......................
BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Appropriation, current......................
BA
Outlays............................................
0
Salaries and expenses (gross) .....
BA
0
1,547
1,690
1,743
1,819
1,752
1,808
725
731
795
86
71
814
87
878
' -7 9 5
BA
O
BA
O
BA
O
Commodity credit corporation fund:
Appropriation, permanent................ 351 BA
Authority to borrow, permanent
BA
Spending authority from offsetting
collections....................................
BA
Limitation on administrative ex
penses .........................................
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Authority to borrow, permanent
BA
Outlays.............................................
O
Commodity credit corporation fund
(gross)..........................................
801
'- 8 7
'- 8 7 8
w-12
H 12
811
801
790
801...
BA
O
Credit Accounts:
Commodity credit corporation loans program account:
Appropriation, current...................... 351 BA
Appropriation, permanent................
BA
Spending authority from offsetting
collections....................................
BA
Outlays ............................................
O
Commodity credit corporation loans
program account (gross).............
-8 7
'8 7
725
715
719
730..
310
316
290
313
310
316
290
313..
286
236
219
562
707
595
1,321
624
1,180
*648
286
291
y -2 8 6
' -291
*-3 3
*135
848
707
831
1,321
1,458
1,315
-5 9 5
-624
*33
286
145
236
726
867
724
191
13,180
179
10,872
198
8,827
10,737
9,624
11,913
(5)
25,793
(5)..
20,973
20,552
BA
O
(281)
(235)
(156)
*-9 7 4
*-5 0 0
24,109
25,793
20,676
20,973
19,964
20,052
-10,737
BA
O
Total, offsetting collections..............
Total Commodity credit corporation
fund (net) .....................................
-7 1
1995
estimate
-5 6 2
Total, offsetting collections..............
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current ...................... 351 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
BA
O
Public Enterprise Funds:
Federal crop insurance corporation fund:
Appropriation, current...................... 351 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Appropriation, current......................
BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Total Federal crop insurance cor
poration fund (net).......................
FarmService Agency
-8 6
Dairy indemnity program:
Appropriation, current...................... 351 BA
Outlays.............................................
O
Administrative and operating expenses:
Appropriation, current...................... 351 BA
Outlays............................................
O
Appropriation, current......................
BA
Outlays............................................
O
Total Administrative and operating
expenses ......................................
Federal funds
General and Special Funds:
Packers and Stockyards Administration:
Appropriation, current ...................... 352 BA
Outlays............................................
0
Appropriation, current ......................
BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Total, offsetting collections..............
1 .....
1994
estimate
1993
actual
Account
BA
0
Total Federal funds Agricultural Mar
keting Service..............................
1994
estimate
-9,624
-11,913
13,371
15,055
11,052
11,349
8,051
8,139
3
752
3
400
3
394
538
3
372
400
755
538
407
372
398
400
320
THE BUDGET FOR FISCAL YEAR 1995
Department of Agriculture—Continued
(In millions of dollars)
1993
actual
Account
Commodity credit corporation guaranteed loans liq
uidating account:
Appropriation, permanent................ 351 BA
Spending authority from offsetting
BA
collections....................................
Outlays............................................
0
BA
Total, offsetting collections..............
Total Agricultural credit insurance
program account .........................
BA
BA
BA
0
BA
BA
0
Agricultural resource conservation demonstration guar
anteed loan program account:
Appropriation, current ...................... 351 BA
BA
Appropriation, permanent ................
Limitation on loan guarantee com
mitments ......................................
Outlays.............................................
0
Outlays for grants to State and local
0
governments................................
166
124
746
756
162
562
166
124
-162
-166
Conservation operations:
Appropriation, current...................... 302 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Appropriation, current ......................
BA
Outlays.............................................
O
Appropriation, current......................
BA
Outlays.............................................
O
Conservation operations (gross)
BA
O
1995
estimate
444
453
400
42
434
19
(1,190)
475
17
(1 ,010)
(2,229)
398
(2,608)
490
//-5
" ( 31)
h -5
(2,879)
419
452
398
487
485
422
419
1,845
*
1,695
795
422
(937)
BA
r basin surveys and investigations:
Appropriation, current...................... 301 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
River basin suiveys and investiga
tions (gross) .................................
15
1,985
1,526
904
1,861
1,985
1,695
1,526
795
904
1,645
-7 0
55
50
- 118
-6 2 3
-514
4
3
(7)
9
(6)
4
(6)
3
(9)
(4)
Watershed planning (gross) ............
BA
BA
0
5
9
4
4
3
3
17,826
19,373
14,983
16,077
11,884
11,909
640
61
641
55
630
36
664
'27
7 26
" -1 2
Watershed and flood prevention operations:
Appropriation, current ...................... 301
Spending authority from offsetting
collections....................................
Outlays.............................................
Outlays for grants to State and local
governments................................
Appropriation, current ......................
Outlays............................................
Watershed and flood prevention op
erations (gross) ...........................
Total Watershed and flood preven
tion operations (net)....................
« -1
h -11
638
641
634
619
702
689
-5 5
- 36
577
580
579
565
666
13
13
11
BA
O
654
1
1
15
14
1
12
14
15
14
14
12
12
-1
-1
13
14
13
13
11
11
10
11
7
*
*
•
10
11
8
BA
O
10
10
11
11
8
8
-•
_*
BA
O
10
10
11
11
8
BA
279
267
25
BA
O
18
254
311
105
O
BA
O
(128)
(194)
*340
*115
(74)
* 226
BA
O
296
254
617
426
25
330
Total, offsetting collections..............
Total Watershed planning (net).......
(3)
2
591
-1
ershed planning:
Appropriation, current ...................... 301 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
O
-1,418
4
BA
O
Total, offsetting collections..............
Total River basin surveys and inves
tigations (net)...............................
577
-61
Total, offsetting collections..............
Total, offsetting collections.............
0
162
562
- 1,931
BA
Total, offsetting collections..............
Total Federal funds Farm Service
Agency.........................................
303
756
0
0
Total Agricultural resource conserva
tion demonstration guaranteed
loan program account .................
444
BA
Agricultural credit insurance fund liquidating account:
Appropriation, permanent................ 351 BA
Authority to borrow, permanent
BA
Spending authority from offsetting
BA
collections....................................
0
Outlays............................................
Total Agricultural credit insurance
fund liquidating account (net)
1994
estimate
General and Special Funds:
0
0
Agricultural credit insurance fund liq
uidating account (gross)..............
398
400
Total Conservation operations (net).
0
Agricultural credit insurance program account:
Appropriation, current ...................... 351
Appropriation, permanent................
Limitation on direct loan activity ..
Limitation on guarantee commit
ments ..........................................
Outlays............................................
Appropriation, current ......................
Limitation on direct loan activity
Outlays............................................
403
369
1993
s^tua!
N
atural Resources Conservation Service
-3 0 3
0
Total Commodity credit corporation
guaranteed loans liquidating ac
count (net) ...................................
- 3
755
538
.
Account
nu.uum
Federal funds
BA
0
Commodity credit corporation guar
anteed loans liquidating account
(gross) .........................................
1995
estimate
.....................
Total, offsetting collections..............
Total Commodity credit corporation
loans program account (net).......
1994
estimate
-1 8
BA
0
Resource conservation and development:
Appropriation, current...................... 302 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
7
10
- 1 0 .......
279
236
607
416
25
330
33
33
26
1
36
1
*
33
28
321
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Agriculture—Continued
(In millions of dollars)
1993
actual
Account
Outlays for grants to State and local
governments................................
Resource conservation and develop
ment (gross) ................................
0
BA
Total, offsetting collections..............
BA
0
BA
0
Total Emergency conservation pro
gram .............................................
Total Federal funds Natural Re
sources Conservation Service
1994
estimate
1995
estimate
R U
ural tilities Service
(6)
Federal funds
34
33
27
28
_*
-1
Salaries and expenses:
Spending authority from offsetting
collections.................................... 452 BA
Outlays.....................................
...................................................
0
33
32
26
28
25
26
11
*
23
*
*
26
21
25
23
26
26
11
21
25
23
-*
26
26
11
21
BA
O
194
182
195
216
BA
12
Total, offsetting collections............
Total Salaries and expenses (net) .
-56
BA
0
Salaries and expenses:
Appropriation, current...................... 271 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Salaries and expenses (gross) .....
BA
BA
O
19
8
12
14
8
12
BA
O
14
16
14
15
8
12
38
37
39
38
BA
O
BA
O
BA
O
BA
O
164
10
8
67
17
241
79
64
27
68
3
24
A 25
A 12
64
27
25
81
3
35
1
2
1
*
1
1
1
*
*
*
*
*
BA
O
*
*
*
1
1
1
BA
O
1,240
1,158
1,590
1,421
1,114
1,366
Total Salaries and expenses (net) .
'- 3 8
' - 33
38
37
39
38
-39
38
'3 8
1
Salaries and expenses:
Appropriation, current...................... 452 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
6
24
10
1
BA
0
29
24
Total, offsetting collections..............
10
1
Total Salaries and expenses (net) ...
6
*
BA
0
Salaries and expenses (gross)
38
39
-3 8
0
7
13
13
14
56
49
100
BA
O
'56
'49
0
Total, offsetting collections............
Rural clean water program:
Outlays............................................ 304 O
Trust funds
Miscellaneous contributed funds
(Water resources):
(Appropriation, permanent) .............. 301 BA
(Outlays)..........................................
O
(Conservation and land management):
(Appropriation, permanent).............. 302 BA
(Outlays)..........................................
O
Total Miscellaneous contributed
funds............................................
33
35
-*
Total, offsetting collections..............
Agricultural conservation program:
Appropriation, current...................... 302
Outlays............................................
Forestry incentives program:
Appropriation, current ...................... 302
Outlays............................................
Water bank program:
Appropriation, current ...................... 302
Outlays.............................................
Colorado river basin salinity control program:
Appropriation, current...................... 304
Outlays............................................
Wetlands reserve program:
Appropriation, current ...................... 302
Outlays............................................
Emergency conservation program:
Appropriation, current ...................... 453
Outlays............................................
Appropriation, current ......................
Outlays............................................
(7)
Salaries and expenses (gross)
BA
0
Total Great plains conservation pro
gram (net)....................................
33
36
-1
Great plains conservation program:
Appropriation, current...................... 302 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Great plains conservation program
(gross) ..........................................
(8)
1993
actual
Account
General and Special Funds:
0
Total Resource conservation and
development (net) .......................
1995
estimate
1994
estimate
-1
24...........................................
BA
0
Distance learning and medical link programs:
Appropriation, current ...................... 452 BA
Outlays.............................................
0
Outlays for grants to State and local
governments ................................
0
Solid waste management grants:
Appropriation, current ...................... 304 BA
Outlays.............................................
0
Outlays for grants to State and local
governments................................
0
Emergency community water assistance grants:
Appropriation, current ...................... 451 BA
Outlays............................................
0
Outlays for grants to State and local
governments................................
0
Rural water and waste disposal grants:
Appropriation, current ...................... 452 BA
Outlays.............................................
0
Outlays for grants to State and local
0
governments ................................
Credit Accounts:
Rural utilities sen/ice program account:
Appropriation, current ...................... 452 BA
Limitation on direct loan activity.....
Outlays............................................
0
Outlays for grants to State and local
governments ...............................
0
Rural electrification and telephone loans program ac
count:
Appropriation, current ...................... 271 BA
Appropriation, permanent ................
BA
5
*
10
1
5
10
5
18
6
(18)
(6)
3
3
3
3
3
3
(3)
(3)
(3)
30
7
10
11
18
(7)
(1 1 )
(18)
425
240
500
325
525
383
(200)
(270)
(318)
'154
'(977)
'2 2
'(19)
226
23
115
9
49
13
322
THE BUDGET FOR FISCAL TEAR 1995
Department of Agriculture—Continued
(In millions of dollars)
1993
actual
Account
Limitation on direct loan activity......
Outlays.............................................
Appropriation, current......................
Limitation on direct loan activity......
Outlays.............................................
0
Total Rural electrification and tele
phone loans program account....
BA
1994
estimate
0
BA
0
Rural electrification and telephone revolving fund liq
uidating account
Appropriation, permanent................ 271 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Rural electrification and telephone
revolving fund liquidating account
(gross)..........................................
Total, offsetting collections..............
BA
0
Rural telephone bank program account:
Appropriation, current...................... 452 BA
Appropriation, permanent................
BA
Limitation on direct loan activity......
Outlays.............................................
0
Total Rural telephone bank program
account........................................
BA
0
Rural telephone bank liquidating account:
Appropriation, permanent................ 452 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Rural telephone bank liquidating ac
count (gross) ...............................
0
BA
0
Rural development insurance fund program account:
Appropriation, current..................
452 BA
Appropriation, permanent................
BA
Limitation on direct loan activity......
Limitation on guarantee commit
ments ...........................................
Outlays.............................................
0
Outlays for grants to State and local
governments................................
0
Appropriation, current......................
BA
Limitation on direct loan activity......
Limitation on guarantee commit
ments ...........................................
Outlays.............................................
0
Outlays for grants to State and local
governments................................
0
Total Rural development insurance
fund program account.................
BA
0
Rural development insurance fund liquidating account:
Appropriation, permanent................ 452 BA
H - 1
249
118
112
157
(1,979)
129
Spending authority from offsetting
collections....................................
Outlays.............................................
Rural development insurance fund
liquidating account (gross)..........
*-3
62
127
247
4,574
3,165
2,677
3,366
2,158
2,662
4,821
3,165
2,677
3,366
2,158
2,662
-3,940
-3,113
247
-1,409
9
•
(175)
9
9
9
—1,263
-5 7 4
12
1.
(200)
11
-9 5 5
-451
9
(175)
10
13
9
11
10
24
230
322
102
254
322
102
151
95
130
-2 1 1
-2 0 1
24
92
-110
-1 0 6
-7 1
151
-6 0
95
130
208
3
(950)
202
2
237
(1,059)
(1,277)
(285)
95
(515)
136
(1,191)
169
(85)
(12 1 )
(151)
J —237
/ ( - 1,277)
■'(-1,191)
J -8 0
'( - 7 1 )
95
204
136
90
500
415
169
211
Total Federal funds Rural Utilities
Seivice.........................................
1994
estimate
511
1995
BA
O
1,022
573
956
567
763
BA
O
1,011
1,022
988
956
737
763
-511
-5 7 3
-5 6 7
BA
O
500
510
415
383
169
196
BA
O
1,708
-3 3 3
-1 0 6
418
-1 3 4
332
Total, offsetting collections..............
Total Rural development insurance
fund liquidating account (net) .....
-2 3 0
BA
Total, offsetting collections..............
Total Rural telephone bank liquidat
ing account (net) .........................
(1,864)
158
ff-12
» ( —130)
1993
actual
Account
-4,574
BA
0
Total Rural electrification and tele
phone revolving fund liquidating
account (net) ...............................
(2,077)
118
1995
JEEL
estimate
R H
ural ousing and Com unity Developm Service
m
ent
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 452 BA
Spending authority from offsetting
collections....................................
BA
O
Salaries and expenses (gross) .......
■M2
'419
'458
BA
O
461
458
Total, offsetting collections..............
Total Salaries and expenses (net) ...
' -4 1 9
BA
O
Salaries and expenses:
Appropriation, current...................... 452 BA
Spending authority from offsetting
BA
collections....................................
O
Outlays.............................................
BA
Appropriation, current......................
Spending authority from offsetting
BA
collections....................................
O
Outlays............................................
Appropriation, current......................
BA
Outlays............................................
O
Salaries and expenses (gross) .......
Rental assistance grants:
Appropriation, current...................... 604
Outlays.............................................
State mediation grants:
Appropriation, current...................... 351
Outlays.............................................
Outlays for grants to State and local
governments................................
Outreach for socially disadvantaged farmers:
Appropriation, current...................... 351
Outlays.............................................
Outlays for grants to State and local
governments................................
Rural community fire protection grants:
Appropriation, current...................... 452
Outlays.............................................
Outlays for grants to State and local
governments................................
Rural housing voucher program:
Appropriation, current...................... 604
Outlays.............................................
9
36
51
657
650
695
734
666
725
J —51
' —666
' -7 1 3
H -
12
H - 1
H -1 1
ccc
O vv
650
719
723
-6 4 2
-6 9 5
BA
O
24
8
24
28
12
BA
O
404
346
447
404
523
447
BA
O
3
3
2
2
O
(3)
(2)
(2)
3
3
5
5
BA
O
Total, offsetting collections..............
Total Salaries and expenses (net) ...
42
39
BA
0
O
12
-6 6 6
'666
3
(3)
(5)
BA
O
4
3
4
3
5
4
O
(3)
(3)
(4)
BA
O
5
25
3
25
7
323
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Agriculture—Continued
(In millions of dollars)
1993
actual
Account
Very low income housing repair grants:
Appropriation, current...................... 604
Outlays............................................
Rural housing for domestic farm labor:
Appropriation, current...................... 604
Outlays............................................
Outlays for grants to State and local
governments................................
Mutual and self-help housing:
Appropriation, current...................... 604
Outlays............................................
Supervisory and technical assistance grants:
Appropriation, current...................... 604
Outlays............................................
Outlays for grants to State and local
governments................................
Compensation for construction defects:
Appropriation, current...................... 371
Outlays.............................................
Rural housing preservation grants:
Appropriation, current...................... 604
Outlays............................................
Outlays for grants to State and local
governments................................
Public Enterprise Funds:
Rural communication ilevelopment fund:
Appropriation, permanent................ 452
Spending authority from offsetting
collections....................................
Outlays............................................
Rural communication development
fund (gross).................................
1993
actual
Account
1994
estimate
Total, offsetting collections..............
28
13
25
33
25
25
BA
0
44
19
11
43
11
8
(19)
(43)
(8)
13
13
13
11
11
11
2
2
2
2
5
(1 )
(2)
*
*
*
*
0
BA
0
BA
0
Total Rural housing insurance fund
program account (net).................
BA
O
BA
0
BA
0
*
*
BA
O
23
23
21
21
23
23
O
(7
)
(7
)
(8)
BA
3
2
-3
—
*
3
3
-2
3
3
Total Self-help housing land devel
opment fund liquidating account
(net)..............................................
1,102
746
873
433
2,502
2,983
2,849
3,456
1,269
3,344
53
3,123
3,281
3,456
3,771
3,344
3,036
3,123
-2,914
-2,744
23
198
857
430
292
379
*
*
(1 )
*
0
2,592
2,088
1,773
1,877
0
_
*
1,154
*
*
*
O
- 1 .....
Total, offsetting collections..............
BA
O
BA
O
BA
O
Self help housing program account:
Appropriation, current...................... 371 BA
Limitation on direct loan activity ...
Outlays.............................................
O
Self-help housing land development fund liquidating
account
Outlays............................................. 371 O
Self-help housing land development
fund liquidating account (gross)...
BA
O
BA
O
Total Rural housing insurance fund
liquidating account (net)..............
1,081
921
-3,259
Rural housing insurance fund liquidating account:
Appropriation, permanent................ 371 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Rural housing insurance fund liq
uidating account (gross)..............
1995
estimate
-13
Total, offsetting collections..............
0
Credit Accounts:
Rural housing and community development sen/ice
program account:
Appropriation, current...................... 452 BA
Limitation on direct loan activity......
Limitation on guarantee commit
ments ...........................................
Outlays.............................................
0
Outlays for grants to State and local
governments................................
O
Rural telecommunication partnership loan program account:
Appropriation, current...................... 452 BA
Limitation on direct loan activity......
Outlavs............................................
0
Rural housing insurance fund program account:
Appropriation, current...................... 371 BA
Appropriation, permanent................
BA
Spending authority from offsetting
collections....................................
BA
Limitation on direct loan activity......
Limitation on guarantee commit
ments ...........................................
Outlays.............................................
O
Appropriation, current......................
BA
Outlays............................................
O
Rural housing insurance fund pro
gram account (gross)..................
1995
estimate
BA
0
Total, offsetting collections..............
Total Rural communication develop
ment fund (net)............................
1994
estimate
BA
-1
BA
1,647
1,547
-1
1
1
1
1
Total Federal funds Rural Housing
and Community Development
Service.........................................
0
R Business and Cooperative Developm Service
ural
ent
'5 7
'(300)
'(75)
'3 2
'(28)
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 452 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Salaries and expenses (gross)
2
79
1,115
55
(2,103)
(2,558)
(580)
921
(750)
1,106
*-1 6
*-4
(1,300)
895
1,154
759
1,102
886
1,081
921
746
13
(2,248)
*-9
27
27
Total, offsetting collections..............
Total Salaries and expenses (net) ...
1,002
'27
BA
O
2
(15)
'9
'1 8
'- 1 8
BA
O
Rural development grants:
Appropriation, current...................... 452 BA
Outlays..................................................... O
Outlays for grants to State and local
governments........................................O
Rural technology and cooperative development grants:
Appropriation, current...................... 452 BA
Outlays..................................................... O
Outlays for grants to State and local
governments........................................ O
Local technical assistance and planning grants:
Appropriation, current...................... 452 BA
Outlays..................................................... O
Outlays for grants to State and local
governments........................................ O
21
42
17
22
50
33
(12 )
(16)
(23)
5
o
5
0
324
THE BUDGET FOR FISCAL YEAR 1995
Department of Agriculture—Continued
(In millions of dollars)
1993
actual
Account
1995
estimate
1994
Outlays for grants to State and local
governments................................
Agricultural cooperative service:
Appropriation, current...................... 352 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Agricultural cooperative service
(gross)..........................................
Rural development loan fund (gross)
Total Rural development loan fund
(net)..............................................
Total, offsetting collections..............
Economic development grants:
Spending authority from offsetting
collections.................................... 452 BA
Outlays.............................................
0
Outlays for grants to State and local
governments................................
0
30
15
-15
■.........
1
BA
1
1
0
Total, offsetting collections..............
-1
BA
0
Credit Accounts:
Rural business and cooperative development service
program account
Appropriation, current...................... 452 BA
Limitation on guarantee commit
ments ...........................................
Outlays.............................................
0
Alcohol fuels credit guarantee program account:
Appropriation, current...................... 452 BA
Limitation on guarantee commit
ments ...........................................
Outlays.............................................
0
Rural development loan program account
Appropriation, current...................... 452 BA
Appropriation, permanent................
BA
Limitation on direct loan activity......
Outlays.............................................
0
Total Rural development loan pro
gram account...............................
BA
0
Rural development loan fund:
Spending authority from offsetting
collections.................................... 452 BA
Outlays.............................................
0
( - ’)
13
1995
estimate
(1 )
*
13
(D
*
6
-3
BA
O
-3
-3
-3
-3
9
-3
3
3
*
3
3
(12 )
(13)
3
(13)
3
10
2
Total REA — Economic develop
ment loans program account......
Total Federal funds Rural Business
and Cooperative Development
Service.........................................
BA
O
3
2
3
3
3
3
BA
O
55
39
104
42
161
117
110
118
122
27
139
65
183
53
175
137
139
183
183
175
175
-2 7
-6 5
-5 3
110
112
118
118
122
International A
gricultural Trade Service
Rural economic development grants:
Spending authority from offsetting
collections................................... 271 BA
Outlays.............................................
0
Total Rural economic development
grants (net)..................................
10
1994
estimate
-10
BA
0
Rural economic development grants
(gross)..........................................
10
20
-30
Total, offsetting collections..............
(10)
30
15
BA
10
20
(-1 5 )
0
Total Economic development grants
(net)..............................................
BA
O
REA — Economic development loans program ac
count
Appropriation, current...................... 452 BA
BA
Appropriation, permanent................
Limitation on direct loan activity......
O
Outlays.............................................
BA
0
Economic development grants
(gross)..........................................
O
Total, offsetting collections..............
BA
0
Total Agricultural cooperative serv
ice (net) .......................................
1993
actual
Account
2 ....
2 ....
-2
*
Foreign agricultural service and gen
eral sales manager (gross).........
-1
-2
Federal funds
General and Special Funds:
Foreign agricultural service and general sales man
ager
Appropriation, current...................... 352 BA
Spending authority from offsetting
BA
collections....................................
O
Outlays............................................
-1
-1
BA
O
Total, offsetting collections..............
Total Foreign agricultural service
and general sales manager (net)
BA
0
'2 6
'(1,116)
'2 6
Office of international cooperation
and development (gross)............
9
(30)
Office of international cooperation and development
Appropriation, current...................... 352 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
2
4
Total, offsetting collections..............
Total Office of international coopera
tion and development (net).........
19
*
(34)
5
57
*
67
(100)
15
(125)
29
19
5
58
15
67
29
*
*
13
BA
O
(19)...
13
44..
36..
-3 7 ..
BA
O
Scientific activities overseas (foreign currency pro
gram):
Spending authority from offsetting
collections.................................... 352 BA
Outlays............................................
O
Scientific activities overseas (foreign
currency program) (gross) ..........
37..
36..
BA
O
7..
-1 ..
123
325
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Agriculture—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
estimate
Total, offsetting collections..............
Total Scientific activities overseas
(foreign currency program) (net)..
P.L 480 Grants-Titles I:
(International development and human
itarian assistance):
(Appropriation, current)....................
(Outlays)..........................................
(Appropriation, current)....................
(Outlays)..........................................
Total (International development and
humanitarian assistance) ............
Total, offsetting collections .
BA
O
BA
O
BA
O
BA
O
*
1,189
1,122
1,189
1,122
1
1,148
1,282
*-5 0
* -1 6
1,098
1,266
(International cooperation):
(Appropriation, current).................... 156 BA
(Outlays)..........................................
0
1
.
514
BA
1,189
1,122
1,098
1,266
Total Federal funds International Ag
ricultural Trade Sen/ice...............
484
Total Trust funds International Agri
cultural Trade Service.................
P.L 480 program account
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
(Appropriation, permanent)..............
BA
(Limitation on direct loan activity) ....
(Outlays)..........................................
O
(Appropriation, current)....................
BA
(Outlays)..........................................
O
Total (International development and
humanitarian assistance) ............
BA
0
345
(510)
323
345
323
349
14
(450)
438
H —35
h - 20
328..
418
(International cooperation):
(Appropriation, current).................... 156 BA
(Outlays)..........................................
0
Total P.L 480 program account ,
BA
0
Debt reduction — program account
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
(00568227909151-07 LIMITATION)
(Outlays)..........................................
O
Total Debt reduction — program ac
count ............................................
BA
O
Expenses, Public Law 480, foreign
assistance programs, Agriculture
liquidating account (gross)..........
-5 3 6
-5 3 6
3
3
4
4
4
4
BA
O
1,050
963
945
1,581
832
929
BA
O
3
3
4
4
4
4
104
108
107
1
1
1
109
108
107
104
109
109
108
108
107
-1
-1
-1
104
108
108
107
107
106
27,064
27,046
27,688
1
22
23,577
25,548
25,203
(1,586)
(1,539)
(1,620)
27,064
23,577
27,047
25,548
27,709
25,203
Federal funds
* -1 3
BA
O
Total, offsetting collections..............
Total Food program administration
(net)..............................................
BA
O
136
278
295
Food stamp program:
Appropriation, current...................... 605 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
BA
O
Total, offsetting collections.........
40..
Total Food stamp program (net) .
(68)..
40..
37..
378..
378..
12 ..
-1
BA
O
37..
O
Expenses, Public Law 480, foreign assistance pro
grams, Agriculture liquidating account:
Outlays............................................ 151 O
-5 9 9
-5 9 9
General and Special Funds:
Food stamp program (gross).....
P.L 480 Title I Food for Progress Credits, program ac
count
(International development and human
itarian assistance):
(Outlays).......................................... 151 O
Total P.L 480 Title I Food for
Progress Credits, program ac
count ...........................................
328
418
-6 4 1
-6 2 9
BA
O
Food and Consumer Service
Food program administration (gross)
(340)
149
278
160
345
323
-536
Food program administration:
Appropriation, current...................... 605 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Credit Accounts:
Nutrition assistance for Puerto Rico:
Appropriation, current...................... 605 BA
Outlays.............................................
O
Outlays for grants to State and local
O
governments................................
Special milk program:
Appropriation, current...................... 605 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
State child nutrition programs:
Appropriation, current...................... 605 BA
Appropriation, permanent................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Total State child nutrition programs .
BA
O
O
12 ..
1995
estimate
-599
Trust funds
Miscellaneous contributed funds:
Appropriation, permanent................ 352 BA
Outlays.............................................
O
* -3 0
967
1,046
1994
estimate
-641
Total Expenses, Public Law 480,
foreign assistance programs, Ag
riculture liquidating account (net).
967
562
0
Total P.L 480 Grants — Titles I
1993
actual
Account
Special supplemental food program for women, infants,
and children (WIC):
Appropriation, current...................... 605 BA
Outlays.............................................
O
-2 2
27,064
23,577
27,046
25,547
27,688
25,182
1,040
1,025
1,079
1,078
1,143
1,141
(1,025)
(1,078)
(1,141)
15
16
20
21
20
18
(15)
(21 )
(20)
2,536
4,290
6,597
2,727
4,770
7,237
2,239
5,213
7,687
(6,574)
(7,207)
(7,640)
6,827
6,597
7,497
7,237
7,451
7,687
2,860
2,846
3,210
3,222
3,564
3,538
326
THE BUDGET FOR FISCAL YEAR 1995
Department of Agriculture—Continued
(In millions of dollars)
. imt
Account
1993
actual
Outlays for grants to State and local
governments................................
O
Commodities supplemental food program:
Appropriation, current...................... 605 BA
O
Outlays............................................
Outlays for grants to State and local
governments................................
O
BA
Appropriation, current......................
O
Outlays............................................
Outlays for grants to State and local
O
governments................................
Total Commodities supplemental
food program...............................
Food donations programs for selected groups:
Appropriation, current...................... 605
Outlays............................................
Outlays for grants to State and local
governments................................
Emergency food assistance program:
Appropriation, current...................... 351
Appropriation, permanent................
Outlays............................................
Outlays for grants to State and local
governments................................
Total Emergency food assistance
program........................................
1995
estimate
A„ niint
Account
1,538
1,512
-7 1
-7 1
-7 3
1,681
1,634
1,567
1,530
1,465
1,440
183
193
230
14
14
194
17
239
Total, offsetting collections..............
(95)
Total National forest system (net)....
(77)
(119)
* -1 2
12
H -
* ( - 12 )
« ( - 1)
257
248
259
255
230
257
O
(248)
(255)
(257)
BA
BA
O
165
120
40
O
(163)
(124)
(40)
Forest research:
Appropriation, current...................... 302 BA
Spending authority from offsetting
collections....................................
BA
O
Outlays for grants to State and local
governments................................
O
Forest research (gross)...................
Total Forest research (net).............
120
124
40
40
42
42
Total State and private forestry (net)
39,430
37,697
40,335
38,066
BA
O
9
11
18
1
11
1
12
*
16
9
12
12
18
16
11
-1
BA
O
9
10
-1
11
11
-*
18
16
Federal funds
General and Special Funds:
National forest system:
Appropriation, current...................... 302 BA
Reappropriation................................
BA
Appropriation, permanent................
BA
Spending authority from offsetting
collections....................................
BA
1,560
1,554
1,451
118...........................................
3
13
14
71
71
73
International forestry:
Appropriation, current......................
Outlays.............................................
Other appropriations:
Outlays.............................................
Range betterment fund:
Appropriation, current......................
Outlays.............................................
Land acquisition accounts
(Conservation and land management):
(Appropriation, current)....................
(Outlays)..........................................
(Recreational resources):
(Appropriation, current)....................
(Outlays)..........................................
0
201
247
239
-1 4
-1 7
183
187
193
179
230
177
168
118
7
174
6
172
7
109
222
(83)
(85)
183
174
174
172
124
109
-7
-6
-7
BA
O
177
167
168
165
118
103
375
380
529
17
416
18
398
18
528
392
416
398
398
547
528
-1 7
-1 8
-1 8
375
399
380
380
529
510
7
5
10
BA
O
Total, offsetting collections..............
Total Forest and rangeland protec
tion (net) ......................................
0
208
194
(85)
Forest and rangeland protection:
Appropriation, current...................... 302 BA
Spending authority from offsetting
collections....................................
BA
O
Outlays.............................................
Forest and rangeland protection
(gross)..........................................
0
196
BA
O
Total, offsetting collections..............
(42).......
38,468
34,700
BA
O
State and private forestry:
Appropriation, current...................... 302 BA
Spending authority from offsetting
collections....................................
BA
O
Outlays.............................................
Outlays for giants to State and local
governments................................
O
State and private forestry (gross) ....
201
-1 4
BA
O
Total, offsetting collections..............
40
*
163
*
124
165
163
BA
O
H -\
Forest Service
1,638
1,601
94
95
BA
O
Total, offsetting collections..............
Total Nutrition research and edu
cation service (net)......................
1,601_______1,512
1,752
1,705
104
119
N
utrition Research and Education Service
Nutrition research and education
sendee (gross).............................
1,705
BA
O
94
77
94
95
Federal funds
General and Special Funds:
Nutrition research and education service:
Appropriation, current...................... 352 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
O
1995
0
(3,534)
92
107
BA
O
1994
National forest system (gross) ........
(3,213)
94
77
BA
O
1993
actual
Outlays.............................................
(2,842)
BA
O
P.L 102-552 Temporary Assistance:
Appropriation, permanent................ 351 BA
O
Outlays............................................
Outlays for grants to State and local
governments................................
O
Total Federal funds Food and
Consumer Service.......................
1994
estimate
BA
O
302 BA
0
9
302 O
*
1
302 BA
O
5
5
5
5
5
5
302 BA
O
1
1
1
1
1
1
303 BA
O
62
86
64
64
65
65
BA
O
64
87
66
65
66
66
Operations and maintenance of quarters:
Appropriation, permanent................ 302 BA
Outlays.............................................
O
7
7
7
7
7
7
Total Land acquisition accounts......
327
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Agriculture—Continued
(In millions of dollars)
1993
actual
1995
estimate
302 BA
0
1995
estimate
1
*
Total Federal funds Forest Sen/ice .
302 BA
0
227
224
268
267
189
199
806 BA
0
305
309
285
285
279
279
(309)
(285)
(279)
0
BA
O
3,022
2,992
2,946
2,893
2,898
2,839
Total Trust funds Forest Service
BA
O
340
301
306
309
347
340
68,694
64,015
66,127
65,788
62,408
61,014
J- 6
J -779
J-24
J-1
J-7
J -718
J -26
j~1
Sum ary
m
Federal funds:
(As shown in detail above)................
Deductions for offsetting receipts:
Proprietary receipts from the public
302 BA
O
153
126
126
126
134
134
153
126
126
126
134
134
-1 5 3
-1 2 6
-1 3 4
O
Total, offsetting collections........
Total Working capital fund (net).
1994
estimate
Highway Construction: Mount St. Helens National
Monument:
Outlavs.......................................
401 0
302 0
BA
Working capital fund (gross).....
1993
actual
Account
BA
O
Trust funds:
(As shown in detail above)................
-27..
Trust funds
Reforestation trust fund:
Appropriation, permanent ................ 302 BA
O
Outlays............................................
Cooperative work trust fund:
Appropriation, permanent ................. 302 BA
Outlays............................................
O
Gifts, donations and bequests for forest and range
land research:
Appropriation, current...................... 302 BA
Outlays............................................
O
Total Federal funds...................
30
37
30
29
30
30
310
264
276
280
317
310
BA/O
BA/O
BA/O
BA/O
BA/O
BA/O
BA/O
*
*
j
-10
J-25.
j - 5
j - *
J-5
BA
O
67,976
63,297
65,318
64,979
61,657
60,262
BA
O
467
433
435
437
474
466
J -328
J - 117
J-319
J - 114
J - 126
BA
O
Interfund transactions ............................. ..... 452 BA/O
Total Department of Agriculture .
*
*
271
302
303
351
352
371
452
Deductions for offsetting receipts:
Proprietary receipts from the public , 302 BA/O
352 BA/O
Total Trust funds .......................
*
*
BA
O
I
o
>
3
Resource management, timber receipts:
Outlays............................................
Pacific yew sales, Forest Service:
Appropriation, permanent................
Outlays............................................
Forest service permanent appropriations:
Appropriation, permanent................
Outlays............................................
Forest Service permanent appropriations:
Appropriation, permanent................
Outlays............................................
Outlays for grants to State and local
governments................................
Intragovemmental Funds:
Working capital fund:
Spending authority from offsetting
collections....................................
Outlays............................................
1994
estimate
s,
I
C
O
o
Account
BA
O
31
-3
-9
-7
41
32
J -150
J-40
J -41
67,857
63,144
65,268
64,931
61,657
60,254
Department of Commerce
(In millions of dollars)
1993
Q/rf.mi
actual
Account
1994
animate
estimate
1995
ActimatA
estimate
.
Account
G
eneral Adm
inistration
Total, offsetting collections..............
Federal funds
Total Office of the inspector General
(net)..............................................
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Salaries and expenses (gross)
,
Total Salaries and expenses (net) ...
BA
O
Office of the Inspector General:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Office of the Inspector General
(gross).........................................
BA
O
33
33
37
43
81
46
81
48
85
76
81
79
81
85
85
-4 3
BA
O
Total, offsetting collections..............
1993
actual
-4 6
33
35
37
37
16
16
17
1
3
16
3
19
20
17
16
19
19
20
20
BA
O
BA
O
Total, offsetting collections..............
Total Workina caDital fund (nett......
-3
BA
O
Trust funds
Gifts and bequests:
Appropriation, permanent................ 376 BA
16
15
16
16
*
*
67
71
65
65
70
70
67
71
65
65
70
70
-6 7
Special foreign currency program:
Outlays............................................. 376 O
Intragovemmental Funds:
Working capital fund:
Spending authority from offsetting
collections.................................... 376 BA
Working capital fund (gross)...........
1995
estimate
-3
-1
-4 8
33
38
1994
estimate
-6 5
-7 0
..........................................................
4 .......
17
17
328
THE BUDGET FOR FISCAL YEAR 1995
Department of Commerce—Continued
(In millions of dollars)
1993
actual
Account
Outlays............................................
BA
0
Total Trust funds General Adminis
tration ...........................................
*
*
49
57
49
51
54
54
*
*
*
BA
*
0
1993
actual
Account
*
0
Total Federal funds General Admin
istration ........................................
1995
estimate
1994
estimate
Bureau of the Census
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
127
128
147
135
272
166
286
154
298
262
272
294
286
301
298
-1 3 5
-1 6 6
-1 5 4
BA
O
127
137
128
147
144
Periodic censuses and programs:
Appropriation, current...................... 376 BA
Outlays.............................................
O
170
209
110
156
159
147
297
346
238
276
306
291
47
45
54
3
49
3
53
55
50
49
49
53
56
55
Salaries and expenses (gross) .......
Economic Developm Adm
ent
inistration
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 452 BA
Spending authority from offsetting
collections....................................
BA
0
Outlays............................................
Salaries and expenses (gross) .......
BA
0
Total Salaries and expenses (net) ...
BA
0
Economic development assistance programs:
Appropriation, current...................... 452
Spending authority from offsetting
collections....................................
Outlays.............................................
Outlays for grants to State and local
governments................................
Total Salaries and expenses (net) ...
26
28
33
3
29
2
*
29
32
29
29
30
29
33
32
-3
Total, offsetting collections..............
BA
26
26
28
27
33
32
307
323
327
81
1
*
211
268
308
0
(130)
(267)
(308)
BA
388
0
Economic development assistance
programs (gross).........................
211
324
268
328
308
-8 1
-1
Total, offsetting collections..............
Total Economic development assist
ance programs (net)....................
BA
0
Credit Accounts:
Economic development guaranteed loans:
Appropriation, current...................... 452 BA
Limitation on loan guarantee
commmitments.............................
Outlays.............................................
0
Economic development revolving fund liquidating ac
count
Spending authority from offsetting
collections.................................... 452 BA
Outlays .
Economic development revolving
fund liquidating account (gross)...
Total Federal funds Economic De
velopment Administration ............
BA
O
323
267
Economic and Statistical Analysis
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Salaries and expenses (gross)
Total, offsetting collections..............
Total Salaries and expenses (net) ...
52
(269)
7
-3
BA
0
-*
327
308
BA
0
BA
O
-3
2
-2
47
46
45
50
54
53
47
46
45
50
56
53
Economics and statistics administration revolving fund:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Economics and statistics administra
tion revolving fund (gross) ..........
BA
0
Total, offsetting collections..............
Total Economics and statistics ad
ministration revolving fund (net) ..
BA
0
21
20
39
15
11
11
Total Federal funds Economic and
Statistical Analysis.......................
BA
0
Total, offsetting collections..............
Total Economic development revolv
ing fund liquidating account (net)
307
130
Total Federal funds Bureau of the
Census .........................................
120
-2
0
BA
BA
O
Total, offsetting collections..............
Federal funds
1995
1994
estimate
21
20
-2 1
39
15
11
11
-3 9
-1 5
Economic Developm Assistance
ent
Regional Development Program
BA
O
-1
-2 8
-4
BA
O
333
156
351
265
412
343
Federal funds
General and Special Funds:
Regional development programs:
Outlays............................................. 452 0
Trust funds
Regional development commissions:
Outlays............................................. 452 0
Outlays for grants to State and local
governments................................
0
(*)..
329
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Commerce—Continued
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
estimate
Prom
otion of Industry and Commerce
Spending authority from offsetting
collections....................................
Outlays.............................................
Outlays for grants to State and local
governments................................
International Trade Administration
Federal funds
General and Special Funds:
Operations and administration:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Appropriation, current......................
BA
Outlays............................................
0
Operations and administration
(gross) ..........................................
Salaries and expenses (gross) .......
214
249
27
250
32
240
32
280
n - 2
0
Total, offsetting collections..............
Total Salaries and expenses (net) ...
240
250
279
239
295
279
-3 2
-3 2
214
224
247
207
2
2
24
0
(3)
(2) .......
BA
21
20
19
18
24
22
-2
BA
0
Total Federal funds Promotion of In
dustry and Commerce.................
262
247
BA
0
Total Trust funds Promotion of In
dustry and Commerce.................
1995
estimate
18
Total, offsetting collections..............
H —*
1994
estimate
BA
0
0
262
-2 7
BA
1993
actual
Account
-2
2
22
-2
19
16
19
23
20
312
322
342
307
369
357
1,586
13
1,750
30
1,889
308
1,881
368
2,059
316
2,083
(48)
(50)
(50)
' -4 6
18
0
Total Operations and administration
(net).........................................
Foreign service national
Outlays................
BA
0
Trust funds
liability trust fund:
.......... 602 0
National Oceanic and Atmospheric Administration
Federal funds
General and Special Funds:
Export Administration
Federal funds
General and Special Funds:
Operations and administration:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Operations and
administration
(gross):........................................
BA
O
Total, offsetting collections..............
Total Operations and administration
(net).............................................
41
35
43
*
39
2
39
*
42
41
39
37
39
44
42
-•
-2
41
39
35
37
General and Special Funds:
Minority business development:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
BA
O
43
38
43
42
45
2
42
49
44
42
-2
38
43
42
41
46
49
-2
45
48
United States Travel and Tourism Administration
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 376 BA
Appropriation, permanent................
BA
Total, offsetting collections .
Total Operations, research, and facilities (net) ..................................
2
Total, offsetting collections..............
BA
O
0
BA
0
38
16
4
17
1..
8
'46
'20
H -6
3
H - 2
1,907
1,881
2,142
2,056
2,213
-3 0 8
BA
BA
O
Federal funds
Total Minority business development
(net).............................................
Operations, research, and facilities:
Appropriation, current...................... 306 BA
Appropriation, permanent ,
BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Outlays for grants to State and local
governments................................
0
Appropriation, current......................
BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Appropriation, current......................
BA
Outlays............................................
0
-3 6 8
-3 1 6
'- 4 6
1,599
1,573
1,773
1,852
1,740
91
44
110
h
-
Operations, research, and facilities
43
42
Minority Business Development Agency
Minority business development
(gross) .........................................
Science and Technology
18
Construction:
Appropriation, current...................... 306 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Appropriation, current......................
BA
Outlays.............................................
O
Total Construction............................
BA
O
Fleet modernization, shipbuilding and conversion:
Appropriation, current...................... 376 BA
Outlays............................................
O
GOES satellite contigency fund:
306 O
Aircraft procurement and:
Appropriation, current...................... 376 BA
Outlays............................................
O
Fisheries promotional fund:
Outlays............................................ 376 O
Promote and develop fishery products and research
pertaining to American fisheries:
Appropriation, current...................... 376 BA
Appropriation, permanent ................
BA
1,688
80
(12 )
2,101
36
83
(15)
(9)
H - 1
H - 2
91
44
106
80
36
81
28
77
18
23
27
h
21
- 4
14..
43..
6
-5 5
61
14
-55
62
-56
62
330
THE BUDGET FOR FISCAL YEAR 1995
Department of Commerce—Continued
(In millions of dollars)
1993
actual
Account
Outlays............................................
Outlays for grants to State and local
governments................................
Total Promote and develop fishery
products and research pertaining
to American fisheries..................
0
0
Coastal zone management fund
(gross) ..........................................
BA
O
(4
)
7
6
6
11
6
8
1
1
1
2
1
1
1
1
1
2
1
1
1
1
1
*
*
*
8
O
8
8
O
(4
)
(8)
(8)
BA
O
8
4
8
8
8
8
-1 1
BA
O
BA
-8
-4
-5
11
*
5
*
-11
BA
O
-8
*
-2 3
10
2
-2
-5
-2 3
-11
-10
-2
-2
Total Federal funds National Oce
anic and Atmospheric Administra
tion ...............................................
Total Trust funds National Oceanic
and Atmospheric Administration ..
14...
BA
11 ...
14...
1,718
1,649
1,992
1,821
1,918
1,871
BA
Federal funds
General and Special Funds:
Salaries and expenses:
DA
Appropriation, current......................
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
O
Salaries and expenses (gross) .......
46
25
OI
BA
O
416
586
572
626
486
453
504
586
572
626
-4 0 0
BA
O
400
453
-4 1 6
-5 7 2
87
53
170
54
5
6
11
1
4
1
8
9
5
4
6
8
88
,
Technology Administration
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections....................................
BA
O
Salaries and expenses (gross) .......
Total Salaries and expenses (net) ...
6...
'4 6
'2 5
Patent and Trademark Office
BA
O
-1
BA
O
-1
5
3
1
12
9
-1
6
7
11
8
National Technical Information Service
Federal funds
Public Enterprise Funds:
NTIS revolving fund:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
NTIS revolving fund (gross)............
0
BA
0
Total, offsetting collections..............
5...
8 ..
-2
-10
1...
5
Trust funds
Marine navigation trust fund:
Appropriation, current...................... 306 BA
0
Outlays............................................
Total Salaries and expenses (net)...
- 1 3 .......
(46)...
- 6 ..
-2
-1
BA
Total, offsetting collections..............
- 3 ....
-7
1995
estimate
1994
estimate
0
(8)
Credit Accounts:
Fishing vessel obligations guarantees program ac
count:
Appropriation, current...................... 376 BA
*
Limitations on guaranteed loan com
mitments ......................................
(47)
Outlays.............................................
0
Federal ship financing fund, fishing vessels liquidating
account:
Appropriation, permanent................ 376 BA
.....................
Spending authority from offsetting
collections....................................
BA
3
Outlays.............................................
0
3
(4
)
8
Total, offsetting collections..............
Federal ship financing fund, fishing
vessels
liquidating
account
(gross)..........................................
Total, offsetting collections..............
Total Federal ship financing fund,
fishing vessels liquidating account
(net)..............................................
(8)
0
Total Damage assessment and res
toration revolving fund (net)........
11
8
Damage assessment and restoration revolving fund:
Appropriation, permanent................ 304 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Damage assessment and restoration
revolving fund (gross) .................
(3
)
1993
actual
Account
(1 1 )
4
Total, offsetting collections..............
Total Coastal zone management
fund (net).....................................
6
1995
estimate
0
Fishing vessel and gear damage compensation fund:
Appropriation, current...................... 376 BA
O
Outlays............................................
Fishermen’s contingency fund:
Appropriation, current...................... 376 BA
O
Outlays............................................
Foreign fishing observer fund:
Appropriation, current...................... 376 BA
O
Outlays............................................
Public Enterprise Funds:
Coastal zone management fund:
Spending authority from offsetting
collections.................................... 306 BA
Outlays............................................
Outlays for grants to State and local
governments ................................
1994
estimate
BA
O
68
9
70
73
BA
O
47
9
68
68
73
-3 9
Total, offsetting collections..............
Total NTIS revolving fund (net).......
8..
-6 8
-7 0
8
- 3 0 .......
88
18
3
331
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Commerce—Continued
(In millions of dollars)
Account
1993
1994
actual
Trust funds
Information products and services:
Outlavs............................................ 376 0
Account
1995
estimate
estimate
Total, offsetting collections..............
Totai Salaries and expenses (net) ...
*
24
National Institute of Standards and Technology
Federal funds
General and Special Funds:
Scientific and technical research and services:
Appropriation, current...................... 376
Outlays............................................
industrial technology services:
Appropriation, current...................... 376
Outlays............................................
Outlays for grants to State and local
governments................................
Construction of research facilities:
Appropriation, current...................... 376
Outlays............................................
Intragovemmental Funds:
Working capital fund:
Appropriation, current...................... 376
Spending authority from offsetting
collections...................................
Outlays............................................
Working capital fund (gross)...........
BA
192
184
0
303
285
BA
86
231
127
517
51
0
0
(2)
(2)
102
BA
210
62
*
100
0
6
23
BA
1
4
BA
158
175
227
229
148
157
159
175
230
229
163
157
-1 5 8
-2 2 7
-1 4 8
1
4
17
2
15
9
0
BA
BA
0
BA
381
252
0
520
370
935
527
National Telecommunications and Information Administrate
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Salaries and expenses (gross) .......
Total Federal funds National Tele
communications and Information
Administration..............................
Total Federal funds Science and
Technology ..................................
Total Trust funds Science and Tech
nology ..........................................
9
32
28
25
BA
9
32
29
32
31
32
-9
-9
18
16
20
22
23
23
1
1
1
1
2
*
20
24
11
19
20
26
(12 )
(13)
(17)
26
100
1 ‘
18
0
(6)
BA
O
40
35
71
45
134
BA
O
2,237
1,963
2,677
2,413
3,017
2,531
BA
O
24
*
46
25
3,275
2,889
3,702
3,361
4,213
3,629
j —*
'-1 7
J-99
j •
j —•
J -17
J -1 0 9
j - *
j *
J — 17
J -1 2
j - *
BA
O
3,159
2,773
3,575
3,234
4,183
3,599
BA
O
#
25
•
*
46
26
BA
O
3,159
2,798
3,575
3,234
4,229
3,625
BA
O
Deductions for offsetting receipts:
Intrafund transactions........................... 908 BA/O
Proprietary receipts from the public
306 BA/O
376 BA/O
Offsetting governmental receipts......... 376 BA/O
22
9
25
0
20
1995
estimate
68
Sum ary
m
Federal funds:
(As shown in detail above)......................
Total Federal funds.........................
18
1994
estimate
-9
BA
O
Endowment for children’s educational television:
Appropriation, current...................... 503 BA
Outlays.............................................
O
Public broadcasting facilities, planning and construc
tion:
Appropriation, current...................... 503 BA
Outlays............................................
O
Outlays for grants to State and local
governments................................
O
Information infrastructure grants:
Appropriation, current...................... 503 BA
Outlays............................................
0
Outlays for grants to State and local
governments................................
O
15
Total, offsetting collections..............
Total Federal funds National insti
tute of Standards and Technology
223
234
0
0
Total Working capital fund (net)......
1993
actual
Trust funds:
(As shown in detail above)......................
Total Department of Commerce
Department of Defense—Military
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
estimate
M
ilitary Personnel
Total, offsetting collections..............
Federal funds
Total Military personnel, Army (net).
General and Special Funds:
Military personnel, Army:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Appropriation, current......................
BA
Outlays............................................
O
Military personnel, Army (gross) .....
1993
actual
Account
BA
O
22,985
21,296
20,601
166
23,098
250
21,816
*7
166
20,760
*6
A*
23,151
23,098
21,553
21,822
20,767
20,760
1995
estimate
-1 6 6
BA
O
Military personnel, Navy:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Appropriation, current......................
BA
Outlays............................................
O
Military personnel, Navy (gross)
1994
estimate
BA
O
-2 5 0
-1 6 6
22,985
22,933
21,303
21,572
20,601
20,594
19,351
18,331
17,581
352
19,736
337
18,571
*1 9
*1 9
284
17,857
19,703
19,736
18,687
18,589
17,865
17,857
*1
332
THE BUDGET FOR FISCAL YEAR 1995
Department of Defense—Military—Continued
(In millions of dollars)
1993
actual
Account
BA
0
Total, offsetting collections..............
Military personnel, Air Force:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Appropriation, current......................
BA
Outlays.............................................
0
BA
0
Total, offsetting collections..............
Total Military personnel, Air Force
(net)..............................................
-2 8 4
Total, offsetting collections..............
18,350
18,253
17,581
17,574
Total Reserve personnel, Marine
Corps (net) ..................................
5,939
5,772
5,779
26
5,947
27
5,687
17
5,778
5,966
5,947
5,799
5,687
5,795
5,778
-2 7
-1 7
5,920
5,772
5,660
5,779
5,761
18,222
15,928
17,219
1,130
19,387
2,164
18,262
665
17,788
a 18
*17
*1
19,352
19,387
18,111
18,279
17,884
17,789
-2,164
BA
0
Military personnel, Air Force (gross)
-3 3 7
19,351
19,384
-1,130
Military personnel, Marine Corps:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Total Military personnel, Marine
Corps (net) ..................................
BA
0
Reserve personnel, Army:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
18,222
18,258
2,187
6
2,212
BA
2,193
0
Resen/e personnel, Army (gross) ....
2,212
BA
0
Reserve personnel, Navy:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Reserve personnel, Navy (gross) ....
BA
0
BA
0
Reserve personnel, Marine Corps:
Appropriation, current...................... 051 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
O
Reserve personnel, Marine Corps
(gross)..........................................
2,149
17,219
17,123
2,175
8
2,152
8
2,166
2,157
2,152
2,182
2,166
2,187
2,206
2,149
2,145
2,175
2,158
1,657
1,556
1,392
1,637
9
1,538
Total Reserve personnel, Air Force
(net)..............................................
1,658
1,637
1,565
1,538
1,402
1,384
-9
-9
1,657
1,636
1,556
1,529
1,392
1,375
347
351
354
1
1
1
338
344
352
344
355
347
781
2
770
3
766
711
715
784
770
784
766
-2
-3
709
713
782
768
781
763
3,367
3,340
3,361
6
6
6
3,361
3,348
3,372
3,343
3,346
3,361
3,366
3,348
-6
-6
-6
3,367
3,337
3,340
3,355
3,361
3,343
1,210
1,223
1,233
4
1,183
7
1,248
1,231
1,213
1,183
1,231
1,248
1,241
1,231
-4
-7
-8
BA
O
1,210
1,180
1,223
1,241
1,233
1,223
BA
75,974
75,904
70,773
70,980
70,475
70,260
17,433
15,938
17,821
5,669
26,212
4,734
22,028
*420
*329
BA
BA
O
BA
O
Total, offsetting collections..............
0
8
Operation and M
aintenance
Federal funds
General and Special Funds:
Operation and maintenance, Army:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Appropriation, current......................
BA
Outlays.............................................
O
Operation and maintenance, Army
(gross)..........................................
347
348
338
782
3,343
BA
Total Operation and maintenance,
.....
......
Army (net)
4,713
22,000
*7 0
BA
O
23,102
26,212
21,092
22,357
22,534
22,070
-5,669
0
Total, offsetting collections..............
BA
O
354
347
2
BA
O
National Guard personnel, Air Force:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Total Federal funds Military Person
nel ................................................
351
343
715
Total, offsetting collections..............
Total National Guard personnel, Air
Force (net)...................................
-1
-2
0
National Guard personnel, Air Force
(gross)..........................................
-1
709
BA
O
National Guard personnel, Army:
Appropriation, current...................... 051 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
0
National Guard personnel, Army
(gross)..........................................
1995
estimate
347
338
BA
O
Total, offsetting collections..............
9
1,384
—*
Total, offsetting collections..............
Total Reserve personnel, Navy (net)
15,946
16,115
Reserve personnel, Air Force
(gross)..........................................
1994
estimate
-1
Reserve personnel, Air Force:
Appropriation, current...................... 051 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
O
Total National Guard personnel,
Army (net)....................................
-6
Total, offsetting collections..............
Total Reserve personnel, Army (net)
1993
actual
Account
-2 6
BA
0
Military personnel, Marine Corps
(gross)..........................................
1995
-3 5 2
Total, offsetting collections..............
Total Military personnel, Navy (net).
1994
-4,734
-4,713
17,433
20,543
16,358
17,623
17,821
17,357
333
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Defense—Military—Continued
(In millions of dollars)
Operation and maintenance, Navy
(Department of Defense-Military):
(Appropriation, current).................... 051 BA
(Spending authority from offsetting
collections)...................................
BA
0
(Outlays)..........................................
(Appropriation, current)....................
BA
(Outlays)..........................................
0
Operation and maintenance, Navy
(gross) ..........................................
0
BA
0
(General science and basic research):
(Outlays).......................................... 251
Total Operation and maintenance,
Navy.............................................
BA
O
BA
O
Operation and maintenance, Defense-wide
(Department of Defense-Military):
(Appropriation, current).................... 051 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)...........................................
O
(Appropriation, current)....................
BA
(Outlays)..........................................
O
3,713
23,239
24,879
27,746
23,822
24,445
24,940
23,252
-3,713
-3,713
20,900
23,767
20,109
20,732
21,227
19,539
*14
20,900
23,783
20,109
20,732
21,227
19,539
1,744
1,858
1,918
436
2,683
412
2,249
412
2,224
2,180
2,683
2,270
2,249
2,330
2,224
-4 1 2
Total Operation and maintenance,
Defense-wide...............................
Office of the Inspector General:
Appropriation, current...................... 051
Outlays.............................................
Operation and maintenance, Army Reserve:
Appropriation, current...................... 051
Spending authority from offsetting
collections....................................
Outlays.............................................
Operation and maintenance, Army
Reserve (gross)...........................
1,744
2,246
1,858
1,837
1,918
1,812
18,381
19,183
19,077
2,130
22,798
2,043
21,446
*560
a 441
2,179
20,199
20,511
22,798
21,786
21,887
21,256
20,287
-2,043
-2,179
18,381
19,743
19,844
19,077
18,108
Total Operation and maintenance,
Army Reserve (net).....................
Operation and maintenance, Navy
Reserve (gross)...........................
20,668
a 88
9,937
8,511
10,223
646
1,072
10,367
1,208
11,160
10,220
*22
BA
O
*16
a4
10,220
9,604
10,384
11,431
11,164
-1,072
-1,208
9,937
9,574
8,532
9,312
10,223
9,956
10,582
Total Operation and maintenance,
Navy Reserve (net).....................
9,938
9,575
8,532
9,312
10,223
9,956
BA
O
126
125
138
128
128
123
BA
1,036
1,075
1,254
BA
O
36
1,063
28
1,077
29
1,217
BA
O
1,072
1,063
1,103
1,077
1,283
1,217
-3 6
-2 8
-2 9
1,036
1,027
1,075
1,048
1,254
1,188
872
763
828
26
914
20
20
806
761
898
914
783
806
848
761
-2 6
-2 0
-2 0
872
887
763
785
828
741
80
83
81
2
86
2
2
85
74
85
85
83
74
BA
O
BA
O
BA
O
Operation and maintenance, Marine Coips Reserve:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Operation and maintenance, Marine
Corps Reserve (gross)................
BA
O
Total, offsetting collections..............
Total Operation and maintenance,
Marine Corps Reserve (net).......
1
1 ..
BA
O
Operation and maintenance, Navy Reserve:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
-4 1 2
-6 4 6
BA
O
Total, offsetting collections..............
Total (Department of Defense-Military) (net).....................................
3,713
24,356
a 105
*89
-2,130
BA
O
Total, offsetting collections..............
Operation and maintenance, Defense-wide (gross)............ ..........
3,979
27,746
Total, offsetting collections..............
BA
O
Operation and maintenance, Air Force:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Appropriation, current......................
BA
Outlays.............................................
O
Total Operation and maintenance,
Air Force (net).............................
21,227
-4 3 6
Total, offsetting collections..............
Operation and maintenance, Air
Force (gross)...............................
20,004
1995
estimate
1994
estimate
(Other advancement of commerce):
(Appropriation, current).................... 376 BA
(Outlays)..........................................
O
Total, offsetting collections..............
BA
Operation and maintenance, Marine Corps:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Total Operation and maintenance,
Marine Corps (net)......................
20,900
1993
actual
Account
16...........................................
0
Operation and maintenance, Marine
Corps (gross)...............................
1995
estimate
-3,979
BA
Total, offsetting collections..............
Total (Department of Defense-Military) (net).....................................
1994
estimate
1993
actual
Account
82
86
-2
BA
O
-2
-2
80
85
83
84
81
72
1,235
1,335
1,479
32
1,286
26
1,302
27
1,463
1,267
1,286
1,361
1,302
1,506
1,463
-3 2
-2 6
-2 7
BA
O
1,235
1,253
1,335
1,276
1,479
1,436
Operation and maintenance, Army National Guard
(Department of Defense-Military):
(Appropriation, current).................... 051 BA
(Spending authority from offsetting
collections)...................................
BA
2,300
2,230
2,447
72
55
70
Operation and maintenance, Air Force Reserve:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Operation and maintenance, Air
Force Reserve (gross) ................
BA
O
Total, offsetting collections..............
Total Operation and maintenance,
Air Force Reserve (net)..............
334
THE BUDGET FOR FISCAL YEAR 1995
Department of Defense—Military—Continued
(In millions of dollars)
1993
actual
Account
(Outlays)..........................................
Operation and maintenance, Army
National Guard (gross)................
0
BA
0
(Elementary, secondary, and vocational
education):
(Appropriation, current).................... 501 BA
(Outlays)..........................................
0
BA
Operation and maintenance, Air National Guard:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
BA
0
Total, offsetting collections..............
Total Operation and maintenance,
Air National Guard (net)..............
BA
0
National Board for the Promotion of Rifle Practice,
Army:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
National Board for the Promotion of
Rifle Practice, Army (gross)........
BA
0
Total, offsetting collections..............
Total National Board for the Pro
motion of Rifle Practice, Army
(net)..............................................
2,372
2,361
2,285
2,264
2,517
2,408
-5 5
-7 0
2,300
2,289
2,230
2,209
2,447
2,338
2,310
2,299
2,230
2,209
2,447
2,338
2,563
2,632
2,780
85
2,646
56
2,612
62
2,662
2,648
2,646
2,688
2,612
2,842
2,662
-5 6
-6 2
2,563
2,561
2,632
2,556
2,780
2,600
3
2
3
2
2
2
4
4
5
5
4
4
4
5
5
BA
O
World Cup USA 1994:
Appropriation, current...................... 051 BA
Reappropriation................................
BA
Outlays............................................
O
Total World Cup USA 1994 .
BA
O
Total World university games .
-2
-2
BA
O
Real property maintenance, Defense:
Appropriation, current...................... 051 BA
Outlays.............................................
O
Disaster relief:
Appropriation, current...................... 051 BA
Reappropriation................................
BA
Outlays.............................................
O
Total Disaster relief .
BA
O
Defense health program:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
O
Outlays.............................................
35..
35
21
70
21
1,021
15..
23
19
15..
23
19
BA
O
Environmental restoration, Defense:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
9,585
9,600
9,922
4,344
12,514
5,000
14,024
5,000
14,666
13,929
12,514
14,600
14,024
14,922
14,666
-4,344
BA
O
Total, offsetting collections..............
Total Defense health program (net).
1,749..
516
-5,000
-5,000
9,585
8,170
9,600
9,024
9,922
9,666
*
1,962
2,180
*
432
1,363
3
*
1,962
432
2,180
1,363
2 ......
Environmental restoration, Defense
BA
3
1
Claims, Defense:
Outlays............................................. 051 0
Court of Military Appeals, Defense:
Appropriation, current...................... 051 BA
Outlays.............................................
O
Drug interdiction and counter-drug activities, Defense:
Appropriation, current...................... 051 BA
Outlays.............................................
O
Goodwill games:
Outlays............................................. 051 O
Foreign currency fluctuations, Defense:
Appropriation, current...................... 051 BA
Reappropriation................................
BA
BA
Summer Olympics:
Appropriation, current...................... 051 BA
Reappropriation................................
BA
1995
estimate
Outlays..........................
Defense health program (gross) .....
-2
1994
estimate
World university games:
Appropriation, current...................... 051 BA
Reappropriation................................
BA
Outlays.............................................
O
10
10 ......
0
Total Foreign currency fluctuations,
Defense........................................
2,408
-8 5
0
Operation and maintenance, Air Na
tional Guard (gross)....................
2,264
-7 2
BA
Total, offsetting collections..............
Total Operation and maintenance,
Army National Guard ..................
2,361
1993
actual
Account
Total Summer Olympics .
0
Total (Department of Defense-Mil'itary) (net).....................................
1995
estimate
1994
estimate
2
2
BA
3
3
O
Total, offsetting collections..............
Total Environmental restoration, De
fense (net) ...................................
6
5
6
5
868
299
714
622
90.......................
452.......................
542.......................
2
2 ..
1..
- 2 ...........................................
*
BA
O
Humanitarian assistance:
Appropriation, current...................... 051 BA
Outlays....................................................... O
Defense reinvestment for economic growth:
Appropriation, current...................... 051 BA
Outlays....................................................... O
Former Soviet Union threat reduction account:
Appropriation, current...................... 051 BA
Outlays....................................................... O
Contributions for international peacekeeping and peace
enforcement activities fund:
Appropriation, current...................... 051 BA
Outlays.......................................................O
Payment to kaho’olawe:
Appropriation, current...................... 051 BA
Outlays.......................................................O
Defense cooperation:
Appropriation, permanent................ 051 BA
-2
1,962
432
2,180
1,363
94
108
110
110
72
98
462
235
172
37
400
82
400
189
300
228
60 ..
335
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Defense—Military—Continued
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
estimate
Advance appropriation............................... BA
Outlays............................................
Total Defense cooperation........................ BA
Procurement of weapons and
tracked combat vehicles, Army
(gross)..........................................
Restoration of the Rocky Mountain Arsenal:
Appropriation, permanent................ 051 BA
Outlays............................................ .......... 0
DOD 50th anniversary of World War II Commemora
tion:
Appropriation, permanent................ 051 BA
Outlays............................................ .......... 0
Disposal and lease of DOD real property:
Appropriation, current...................... 051 BA
Outlays............................................ .......... 0
Overseas military facility investment recovery:
Appropriation, current...................... 051 BA
Outlays............................................ ...........O
National Science Center, Army:
Appropriation, current...................... 051 BA
Outlays....................................................... O
Kaho’ Olawe Island Conveyance, Remediation, and
Environmental Restoration Fund:
Appropriation, current...................... 051 BA
Outlays............................................ ...........O
Total Federal funds Operation and
Maintenance.......................................... BA
O
24
9
Total Aircraft procurement, Army
(net)............................................. ...... BA
0
Missile procurement, Army:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections................................... ...... BA
Outlays............................................ ........O
Appropriation, current............................ BA
Outlays............................................ ........O
Missile procurement, Army (gross) ..
13
27
Total, offsetting collections..............
Total Missile procurement, Army
(net).............................................
1,008
-8 8
-8 6
-8 8
906
2,113
887
1,471
920
913
1,060
653
845
7
1,390
18
1,001
19
1,129
1,067
1,390
1,001
864
1,129
-7
-1 8
-1 9
1,060
1,383
653
983
1,110
3,059
2,884
2,690
170
4,084
303
3,055
206
3,015
BA
O
Total Procurement of ammunition,
Army (net)....................................
BA
89,172
94,121
87,972
88,695
92,884
87,953
Other procurement, Army:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections..............................................BA
Outlays.......................................................O
Appropriation, current................................BA
Outlays............................................ ..........O
Other procurement, Army (gross) ....
1,421
1,265
254
1,928
29
1,722
19
1,444
BA
O
1,001
Total, offsetting collections..............
Total Other procurement, Army (net)
BA
O
*20
*3
*6
1,675
1,928
1,314
1,725
1,060
1,450
-2 9
-1 9
1,421
1,675
1,285
1,696
1,042
1,431
1,001
1,094
594
Total, offsetting collections..............
100
Total Aircraft procurement, Navy
(net)..............................................
152
2,339
195
1,508
H —48
H _4
ff-1 5
1,153
2,339
1,241
1,504
693
1,119
-1 9 5
-1 0 0
1,134
Aircraft procurement, Navy:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections..............................................BA
Outlays....................................................... O
Appropriation, current................................BA
Outlays....................................................... O
Aircraft procurement, Navy (gross) ..
BA
1,001
2,187
1,046
1,309
594
1,020
906
887
920
68
86
88
A*
A*
A*
3,229
4,084
3,187
3,055
2,896
3,015
-3 0 3
-2 0 6
3,059
3,913
2,885
2,752
2,690
2,808
5,616
5,506
4,786
-4
7,242
7
6,257
* —52
7
5,601
H - 6
ff-1 6
Weapons procurement, Navy:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
BA
Total, offsetting collections..............
BA
O
Shipbuilding and conversion, Navy:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
5,612
7,242
5,461
6,251
4,793
5,585
-7
-7
5,616
7,246
5,454
6,244
4,786
5,578
3,556
2,811
2,400
105
4,847
111
4,366
75
3,444
3,661
4,847
2,922
4,366
2,475
3,444
-1 0 5
BA
O
Total Weapons procurement, Navy
(net)..............................................
845
4
O
Weapons procurement, Navy (gross)
671
-1 7 0
BA
O
1,042
O
Procurement of weapons and tracked combat vehicles,
Army:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
973
1,557
O
-1 5 2
BA
O
973
2,180
Total, offsetting collections..............
-2 5 4
Total, offsetting collections..............
BA
O
BA
Federal funds
BA
O
1,001
O
General and Special Funds:
Aircraft procurement, Army (gross)..
1,557
Procurement of ammunition, Army
Procurem
ent
Aircraft procurement, Army:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Appropriation, current......................
BA
Outlays............................................
O
2,180
Procurement of ammunition, Army:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
10
2
1995
estimate
O
Total, offsetting collections..............
Total Procurement of weapons and
tracked combat vehicles, Army
(net)..............................................
1994
estimate
1993
actual
Account
-11 1
-7 5
3,556
4,742
2,811
4,256
2,400
3,370
4,425
4,738
5,585
1,725
746
712
336
THE BUDGET FOR FISCAL YEAR 1995
Department of Defense—Military—Continued
(In millions of dollars)
1993
actual
Account
Outlays.............................................
Appropriation, current......................
Outlays.............................................
0
1994
estimate
11,860
BA
1995
estimate
9,767
*-5 0
9,006
Other procurement, Air Force:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Appropriation, current......................
BA
Outlays.............................................
O
H - 2
»_8
6,150
11,860
5,434
9,764
6,297
9,000
-1,725
-7 4 6
-7 1 2
0
4,425
10,136
4,688
9,018
5,585
8,288
BA
5,271
2,793
3,319
BA
31
6,431
32
5,029
32
4,216
5,302
6,431
2,825
5,029
3,352
4,216
-3 1
-3 2
-3 2
0
5,271
6,401
2,793
4,997
3,319
4,184
Procurement Defense-wide (gross).
0
9
Total Procurement, Defense-wide
(net)..............................................
0
Shipbuilding and conversion, Navy
BA
0
Total, offsetting collections..............
Total Shipbuilding and conversion,
Navy (net)....................................
Other procurement, Navy:
Appropriation, current......................
Spending authority from offsetting
collections....................................
Outlays.............................................
Other procurement, Navy (gross) ....
BA
0
BA
0
Total, offsetting collections..............
Total Other procurement Navy (net)
Coastal defense augmentation:
Outlays............................................
Procurement, Marine Corps:
Appropriation, current......................
Spending authority from offsetting
collections....................................
Outlays.............................................
Procurement, Marine Corps (gross).
BA
830
425
555
BA
8
9
693
0
1,466
9
826
BA
837
1,466
435
826
564
693
-8
-9
-9
Total, offsetting collections..............
Total Procurement, Marine Corps
(net)..............................................
BA
0
Aircraft procurement, Air Force:
Appropriation, current......................
Spending authority from offsetting
collections....................................
Outlays............................................
Appropriation, current......................
Outlays............................................
Aircraft procurement, Air Force
(gross) ..........................................
BA
10,013
BA
-4 6
11,393
0
BA
0
BA
Chemical agents and munitions de
struction, Army (gross)................
24
BA
O
h
-
-1 0 8
10,013
11,438
6,499
10,389
6,748
9,995
BA
4,230
3,854
-4 9
5,374
104
4,762
112
4,293
4,181
5,374
3,958
4,762
4,504
4,293
49
-1 0 4
-1 1 2
4,230
5,424
3,854
4,658
4,392
4,181
7,589
7,078
352
8,405
435
8,694
a 27
430
8,224
4
A*
7,913
8,405
8,051
8,699
7,508
8,230
-4 3 5
-4 3 0
7,560
8,053
7,616
8,264
7,078
7,800
1,983
1,804
1,745
117
1,850
138
2,086
78
2,019
2,100
1,850
1,942
2,086
1,823
2,019
-1 3 8
-7 8
1,983
1,733
1,804
1,947
1,745
1,941
1,339
1,662
1,164..
1,436
1,285
a
200
13
17
28
519
390
575
BA
O
*
1
1
351
561
521
519
351
391
561
576
521
-1
-1
519
351
390
560
575
521
44,454
60,814
43,274
55,138
4,392
BA
Total Chemical agents and muni
tions destruction, Army (net).......
7,560
_*
Total, offsetting collections..............
H - 4
-1 0 0
BA
0
BA
Total, offsetting collections..............
108
10,128
46
0
Total Weapons procurement, Air
Force (net)...................................
BA
O
National guard and reserve equipment
Appropriation, current...................... 051 BA
Outlays.............................................
O
Defense production act purchases:
Appropriation, current...................... 051 BA
Outlays.............................................
O
Chemical agents and munitions destruction, Army:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
100
10,492
* — 106
1995
estimate
-1 1 7
BA
O
Procurement, Defense-wide:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
6,748
1994
estimate
-3 5 2
BA
O
Total, offsetting collections..............
Total Other procurement Air Force
(net)..............................................
6,605
6,856
10,103
0
Weapons procurement, Air Force
(gross)..........................................
555
683
6,599
10,488
Total, offsetting collections..............
Weapons procurement, Air Force:
Appropriation, current......................
Spending authority from offsetting
collections....................................
Outlays............................................
425
817
9,967
11,393
0
Total Aircraft procurement, Air Force
(net)..............................................
830
1,458
Other procurement Air Force
(gross)..........................................
Total, offsetting collections..............
BA
0
1993
actual
Account
BA
0
BA
O
Procurement of aircraft and missiles, Navy:
Outlays............................................ 051 0
Total Federal funds Procurement ....
BA
O
_*
52,789
69,936
Research, Developm Test, and E
ent,
valuation
Federal funds
General and Special Funds:
Research, development, test, and evaluation, Army
(Department of Defense-Military):
(Appropriation, current).................... 051 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)..........................................
O
Research, development, test, and
evaluation, Army (gross).............
BA
O
5,847
5,421
5,260
1,478
7,697
1,333
6,664
1,265
6,450
7,325
7,697
6,754
6,664
6,525
6,450
337
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Defense—Military—Continued
(In millions of dollars)
1993
actual
Account
BA
0
(Health research and training):
(Appropriation, current).................... 552 BA
(Outlays)..........................................
0
Total Research, development, test,
and evaluation, Army..................
BA
O
Research, development, test, and evaluation, Air
Force:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Research, development, test, and
evaluation, Air Force (gross)
BA
O
Total, offsetting collections..............
Total Research, development, test,
and evaluation, Air Force (net)....
BA
O
210 ..
124
67
6,057
6,218
5,421
5,454
5,260
5,252
8,914
8,255
8,935
115
9,059
218
8,824
234
9,059
9,029
9,059
8,473
8,824
9,168
9,059
-2 1 8
-2 3 4
8,914
8,944
8,255
8,606
8,935
8,826
12,979
12,152
12,349
1,807
14,145
2,200
14,401
2,250
14,722
14,786
14,145
14,352
14,401
14,599
14,722
- 2,200
-2,250
12,979
12,338
12,152
12,349
12,472
-6
-6
BA
O
259
240
232
251
224
Operational test and evaluation, Defense:
Appropriation, current...................... 051 BA
Outlays.............................................
O
12
11
23
4
13
9
37,974
36,968
34,782
35,669
36,225
36,121
431
893
691
2,022
1,800
2,528
"-1 1 6
" -1 5
1,800
2,557
Total Developmental test and eval
uation, Defense (net) ..................
Total Federal funds Research, De
velopment, Test, and Evaluation .
BA
O
9,746
7
8,760
9,417
160
9,364
266
9,474
h - 50
" -2 4
296
9,654
" -1 9
9,913
9,364
8,976
9,451
9,713
9,634
-2 6 6
-2 9 6
9,753
9,204
8,710
9,184
9,417
9,338
259
232
251
4
244
6
6
226
230
BA
O
263
244
238
226
257
230
220
M
ilitary Construction
Federal funds
General and Special Funds:
Military construction, Army:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Appropriation, current......................
BA
Outlays.............................................
O
Military construction, Army (gross)...
BA
O
Total Military construction, Army
(net)..............................................
BA
O
Total, offsetting collections..............
BA
O
Military construction, Air Force:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Appropriation, current......................
BA
Outlays.............................................
O
Military construction, Air Force
(gross)..........................................
Total Military construction, Air Force
(net)..............................................
BA
O
2,577
2,512
2,491
2,514
-1,800
-1,800
431
802
777
712
691
714
376
559
320
235
321
1,039
321
899
1,120
880
1,039
642
899
-321
-321
376
885
559
718
320
578
718
991
357
901
*
921
" -8 5
" -7
*
842
1,120
612
718
901
h
- 23
907
913
358
819
-*
BA
O
Military construction, Defense-wide:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Military construction, Defense-wide
(gross) ..........................................
"-4 3
2,452
2,824
-2 3 5
BA
O
Military construction, Navy:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Total Military construction, Navy
(net)..............................................
2,824
- 2,022
Total, offsetting collections..............
12,201
1995
estimate
-4
-*
718
901
906
913
357
819
277
547
482
512
596
517
277
512
547
596
482
517
Total, offsetting collections..............
BA
O
Developmental test and evaluation, Defense:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Developmental test and evaluation,
Defense (gross)...........................
5,260
5,185
-1 6 0
Total, offsetting collections..............
Total Research, development, test,
and evaluation, Defense-wide
(net)..............................................
5,421
5,331
Total, offsetting collections..............
Military construction, Navy (gross) ...
BA
O
Research, development, test, and evaluation, Defensewide:
Appropriation, current...................... 051 BA
Reappropriation...............................
BA
Spending authority from offsetting
collections....................................
BA
Outlays..........-..................................
0
Appropriation, current......................
BA
Outlays............................................
O
Research, development, test, and
evaluation, Defense-wide (gross)
5,847
6,218
-1,807
BA
O
Total, offsetting collections..............
Total Research, development, test,
and evaluation, Navy (net)..........
-1,265
-1 1 5
BA
O
Research, development, test, and evaluation, Navy:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
O
Outlays............................................
Research, development, test, and
evaluation, Navy (gross).............
-1,333
1994
estimate
1993
actual
Account
-1,478
Total, offsetting collections..............
Total (Department of Defense-Military) (net).....................................
1995
estimate
1994
estimate
BA
O
_*
338
THE BUDGET FOR FISCAL YEAR 1995
Department of Defense—Military—Continued
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
estimate
1993
actual
Account
Outlays.............................................
Total Military construction, Defensewide (net).....................................
BA
O
North Atlantic Treaty Organization infrastructure:
Appropriation, current...................... 051 BA
Spending authority from offsetting
BA
collections....................................
O
Outlays............................................
North Atlantic Treaty Organization
infrastructure (gross) ...................
BA
O
BA
O
BA
O
Military construction, Air National Guard:
Appropriation, current...................... 051 BA
O
Outlays.............................................
Appropriation, current......................
BA
O
Outlays.............................................
Total Military construction, Air Na
tional Guard.................................
BA
O
Military construction, Army Reserve:
Appropriation, current...................... 051 BA
O
Outlays.............................................
BA
Appropriation, current......................
0
Outlays.............................................
Total Military construction, Army Re
sen/e ............................................
BA
O
Military construction, Naval Reserve:
Appropriation, current...................... 051 BA
O
Outlays.............................................
BA
Appropriation, current......................
O
Outlays.............................................
Total Military construction, Naval
Reserve........................................
BA
O
Military construction, Air Force Reserve:
Appropriation, current...................... 051 BA
O
Outlays.............................................
BA
Appropriation, current......................
O
Outlays.............................................
Total Military construction, Air Force
Reserve........................................
BA
O
Base realignment and closure account:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
482
517
60
140
BA
1995
estimate
840
1,391
1,832
2,076
840
2,748
1,391
2,984
1,832
-4 2
-6 5
-1 7 5
2,034
798
2,683
1,326
2,809
1,657
219
0
Total, offsetting collections..............
30
359
205
10
190
90
359
140
205
229
190
-1 0
Total Base realignment and closure
account (net) ...............................
BA
0
Foreign currency fluctuations, construction:
Reappropriation................................ 051 BA
Total Federal funds Military Con
struction .......................................
50...........................................
BA
4,554
4,831
0
Military construction, Army National Guard:
Appropriation, current...................... 051 BA
O
Outlays............................................
Outlays for grants to State and local
governments................................
O
Appropriation, current......................
BA
O
Outlays............................................
Total Military construction, Army Na
tional Guard.................................
547
596
-3 0 ....
Total, offsetting collections..............
Total North Atlantic Treaty Organi
zation infrastructure (net)............
277
512
0
Base realignment and closure ac
count (gross) ...............................
1994
60
329
140
205
303
258
10
253
5,049
4,997
1,524
1,298
1,274
15
1,369
18
1,291
18
1,285
1,539
1,369
1,316
1,291
1,292
1,285
219
180
215
224
5,963
5,143
g*
(53)
(75)....
H —252
H - 6
h
74
-
215
224
51
253
10
179
306
239
247
268
*-1 0 5
H - 1
123
254
Federal funds
General and Special Funds:
Family housing, Army:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Family housing, Army (gross).....
BA
0
Total, offsetting collections..........
h
57
-
306
239
142
267
123
198
42
71
102
80
H —20
8
110
1
H - 11
42
71
82
79
8
99
15
42
25
46
2
31
H - 4
H —*
H -
*
15
42
21
46
2
31
30
29
74
28
* —19
28
28
Total Family housing, Army (net).
-1 5
Family housing, Navy and Marine Coips:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Family housing, Navy and Marine
Corps (gross)...............................
BA
0
Total, offsetting collections..............
Total Family housing, Navy and Ma
rine Corps (net) ...........................
BA
0
Family housing, Air Force:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Family housing, Air Force (gross)....
BA
0
Total, offsetting collections..............
Total Family housing, Air Force
(net)..............................................
30
29
56
28
28
26
2,034
2,683
65
175
Family housing, Defense-wide:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
1,274
1,267
1,044
1,102
1,083
15
895
15
965
18
1,117
1,059
895
1,117
965
1,101
1,117
-1 5
-1 8
1,044
880
1,102
950
1,083
1,099
1,212
923
1,054
11
975
11
1,150
11
1,047
1,223
975
934
1,150
1,066
1,047
-1 1
-1 1
1,212
964
923
1,138
1,054
1,036
28
26
29
1
26
1
28
1
29
29
26
27
28
30
29
2,809
42
BA
0
H - 2
-1 8
1,298
1,273
-1 1
0
-1 8
1,524
1,354
-1 5
BA
Family
housing,
Defense-wide
BA
O
339
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Defense—Military—Continued
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
estimate
14
222
252
BA
O
73
14
222
222
252
252
-7 3
-2 2 2
-2 5 2
2,464
1,541
609
455
524
763
910
735
1,095
2,919
524
2,304
910
1,344
1,095
-4 5 5
-7 6 3
-7 3 5
2,464
69
1,541
147
609
360
-4,078
1,196
1,169
58,681
6,317
53,821
57,765
56,095
61,110
57,538
60,920
53,821
58,961
61,110
57,264
57,538
-58,681
-57,765
-56,095
BA
O
2,239
-4,860
1,196
3,345
1,169
1,443
Navy management fund:
Spending authority from offsetting
collections.................................... 051 BA
Outlays.............................................
O
599
626
631
631
678
678
599
626
631
631
678
678
-5 9 9
-631
-6 7 8
938
938
1,088
1,088
Outlays............................................
Total Family housing, Defense-wide
(net).............................................
Pentagon reservation maintenance
revolving fund (gross) .................
BA
28
26
26
28
29
28
Total, offsetting collections..............
Public Enterprise Funds:
Homeowners assistance fund, Defense:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Homeowners assistance fund, De
fense (gross) ...............................
0
Total, offsetting collections..............
Total Homeowners assistance fund,
Defense (net)...............................
BA
0
Total Federal funds Family Housing
Total Pentagon reservation mainte
nance revolving fund (net)..........
BA
0
133
151
-1 3 3
28
59
34
129
91
183
161
59
186
129
-4 2
183
-2 8
BA
-3 4
-9 1
133
31
151
95
-1 3 3
92
Total, offsetting collections..............
3,307
3,521
Total National defense sealift fund
(net)..............................................
3,941
3,255
3,501
3,484
Federal funds
General and Special Funds:
Special foreign currency program:
Outlays............................................ 051 0
National defense sealift fund:
Appropriation, current...................... 051 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
O
National defense sealift fund (gross)
4..
Defense business operations fund
(gross)..........................................
Revolving and M
anagem Funds
ent
Federal funds
National defense stockpile trans
action fund (gross)......................
0
Total, offsetting collections..............
Total National defense stockpile
transaction fund (net)..................
William Langer jewel bearing plant revolving fund:
Spending authority from offsetting
collections.................................... 051 BA
Outlays............................................
0
BA
0
-5 0 0
-1 5 0
314
196
508
8
199
49
114
196
8
6
49
49
-5 0 8
-2 0 0
-1 1 8
-5 0 0
-5 0 0
-1 5 0
-1 5 0
4
5
6
6
6
6
4
5
6
6
6
6
-6
-6
BA
0
1 ...........................................
Intragovemmental Funds:
Pentagon reservation maintenance revolving fund:
Spending authority from offsetting
collections.................................... 051 BA
Total Defense business operations
fund (net).....................................
-1 9 9
-4
Total, offsetting collections..............
Total William Langer jewel bearing
plant revolving fund (net)............
BA
O
BA
O
Navy management fund (gross)......
BA
O
Total, offsetting collections..............
BA
0
William Langer jewel bearing plant
revolving fund (gross) .................
-2 0 0
-3 1 4
BA
BA
O
Total, offsetting collections..............
Public Enterprise Funds:
National defense stockpile transaction fund:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
BA
O
Defense business operations fund:
Appropriation, current...................... 051 BA
Spending authority from offsetting
collections....................................
BA
Contract authority, permanent.........
BA
Outlays.............................................
O
Special Foreign Currency Program
Total Navy management fund (net) .
222
252
BA
O
Army conventional ammunition working capital fund:
Spending authority from offsetting
collections.................................... 051 BA
Outlays.............................................
O
Army conventional ammunition
working capital fund (gross)........
BA
O
Total, offsetting collections..............
Total Army conventional ammunition
working capital fund (net) ...........
Total Federal funds Revolving and
Management Funds....................
-5 9 ..
27..
1,320
1,514
1,320
1,514
1,088
1,088
-1,320
BA
O
Emergency response fund:
Outlays..................................
73
1995
estimate
O
Total, offsetting collections..............
0
1994
estimate
1993
actual
Account
195..
051 O
BA
O
4,503
-4,745
2,237
2,992
1,628
1,653
340
THE BUDGET FOR FISCAL YEAR 1995
Department of Defense—Military—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
estimate
1993
actual
Account
Allowances
Total, offsetting collections..............
Federal funds
Total Department of the Air Force
trust revolving funds (net)...........
General and Special Funds:
General transfer authority outlay allowance:
Outlays............................................. 051 0
350
205
Trust Funds
Trust funds
Voluntary separation incentive fund:
Appropriation, permanent................ 051 BA
Outlays.............................................
0
Department of the Army trust funds:
Appropriation, permanent................ 051 BA
Outlays.............................................
0
Department of the Navy trust funds:
Appropriation, permanent................ 051 BA
Outlays.............................................
O
Department of the Air Force general gift fund:
Appropriation, permanent................ 051 BA
Outlays.............................................
O
National security education trust fund:
Appropriation, current...................... 051 BA
Outlays.............................................
O
National science center gift fund:
Appropriation, permanent................ 051 BA
Outlays.............................................
O
Foreign national employees separation pay:
Appropriation, permanent................ 051 BA
Outlays.............................................
O
Department of the Navy trust revolving funds:
Spending authority from offsetting
collections.................................... 051 BA
Outlays.............................................
O
Department of the Navy trust revolv
ing funds (gross).........................
227
46
23
24
26
26
26
26
1
2
*
*
*
•
10
8
10
9
14
15
*
*
BA
O
*
*
Total Surcharge collections, sales of
commissary stores, defense (net)
Total Trust funds Trust Funds........
1995
estimate
-6
-6
3
5
5
310
300
298
72
379
289
55
383
310
300
370
379
344
383
-3 1 0
-2 9 8
-2 8 9
BA
O
-1 0
72
80
55
94
BA
O
351
156
259
332
232
368
BA
O
268,906
280,274
249,682
268,127
252,843
259,848
BA/O
BA/O
BA/O
BA/O
j-1 3
J -7 1 0
J -6 3
j
- 60
j —*
-3 0 3
J -2
j - *
J -8 1 5
j -2
BA
Q
268,120
279,487
248,817
267,262
252,026
259,031
BA
u
351
156
259
332
232
368
J - 1,069
J -110
j
267,402
278,574
248,966
267,484
252,153
259,295
BA
O
Total, offsetting collections..............
Sum ary
m
Federal funds:
(As shown in detail above)......................
90
83
85
78
80
69
20
20
26
25
26
26
Deductions for offsetting receipts:
Intrafund transactions........................... 051
908
Proprietary receipts from the public
051
Offsetting governmental receipts......... 051
20
20
26
25
26
26
Total Federal funds.........................
-2 0
-2 6
-2 6
BA
O
Trust funds:
(As shown in detail above)......................
BA
w
*
interfund transactions................................... 051 BA/O
Department of the Air Force trust revolving funds:
Spending authority from offsetting
collections.................................... 051 BA
Outlays.............................................
O
Department of the Air Force trust
revolving funds (gross)................
56
160
-2 2
Surcharge collections, sales of commissary stores, de
fense:
Spending authority from offsetting
collections.................................... 051 BA
Contract authority, oermanent.........
BA
Outlays.............................................
O
Surcharge collections, sales of com
missary stores, defense (gross) ..
Total, offsetting collections..............
Total Department of the Navy trust
revolving funds (net) ...................
65
133
1994
estimate
22
25
6
11
22
25
BA
O
6
11
6
11
Total Department of Defense—Mili
tary ...............................................
j
-1 0 4
6
11
BA
O
Department of Defense—Civil
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
estimate
Cem
eterial Expenses, Arm
y
Federal funds
General and Special Funds:
Salaries and expenses:
ADDrooriation. current...................... 705 BA
Outlays.............................................
O
13
10
13
13
12
12
Spending authority from offsetting
collections....................................
Outlays.............................................
Appropriation, current......................
Outlays.............................................
General investigations (gross).........
Corps of Engineers— ivil
C
Total General investigations (net) ....
General and Special Funds:
General investigations:
Appropriation, current...................... 301 BA
172
208
148
1995
estimate
BA
O
BA
O
2
170
2
222
H —25
ff-1 5
BA
O
173
170
184
207
-2
-2
-2
BA
O
172
168
183
205
148
162
Total, offsetting collections..............
Federal funds
1994
estimate
1993
actual
Account
2
174
*-1 0
150
164
341
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Defense—Civil—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
Construction, general:
Appropriation, current...................... 301 BA
Spending authority from offsetting
collections.............................................. BA
Outlays............................................ ...........0
Appropriation, current................................ BA
Outlays............................................ ...........0
1,270
309
1,308
1995
1,279
885
318
1,691
* -9 7
h - 54
1,578
1,308
1,500
1,638
1,139
1,273
Total, offsetting collections.........
-3 0 9
-3 1 8
-2 5 4
Total Construction, general (net)
1,270
999
1,182
1,320
885
1,019
Spending authority from offsetting
collections....................................
Outlays.............................................
BA
0
BA
0
Operation and maintenance, general
(Water resources):
(Appropriation, current).................... 301 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)..........................................
0
1,135
1,171
1,113
477
1,540
529
1,847
491
1,615
1,612
1,540
1,700
1,847
1,604
1,615
-4 7 7
-5 2 9
-491
1,135
1,062
1,171
1,318
1,113
1,124
Operation and maintenance, general
BA
0
Total, offsetting collections....
Total (Water resources) (net).
BA
0
(Recreational resources):
(Appropriation, current).................... 303 BA
(Outlays)..........................................
0
Total Operation and maintenance,
general.........................................
BA
0
Regulatory program:
Appropriation, current...................... 301 BA
Outlays............................................
0
Flood control and coastal emergencies:
Appropriation, current...................... 301 BA
BA
Appropriation, permanent................
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Appropriation, current......................
BA
Outlays.............................................
O
Flood control and coastal emer
gencies (gross)............................
18
18
37
37
1,151
1,078
1,189
1,336
1,150
1,161
86
88
92
93
BA
O
130
20
15
60
122
20
12
175
160
*70
*35
94
*35
252
175
170
195
27
130
-2 0
-1 2
150
175
15
118
149
148
156
144
152
155
BA
149
144
148
152
156
155
O
BA
O
Flood control, Mississippi River and tributaries:
Appropriation, current...................... 301 BA
BA
352
325
349
389
321
328
_*
-1
351
324
349
388
320
327
5
7
5
7
7
6
5
5
5
5
(6)
(5)
(5)
10
12
12
10
12
12
2,643
2,657
2,567
2,567
2,590
2,590
2,643
2,657
2,567
2,567
2,590
2,590
-2,567
-2,590
Total, offsetting collections..............
Total Flood control, Mississippi
River and tributaries (net)...........
BA
O
Permanent appropriations
(Water resources):
(Appropriation, permanent).............. 301 BA
O
(Outlays)..........................................
(General purpose fiscal assistance):
(Appropriation, permanent).............. 806 BA
(Outlays)..........................................
O
(Outlays for grants to State and
O
local governments)......................
Total Permanent appropriations .
6
5
BA
O
Intragovemmental Funds:
Revolving fund:
Spending authority from offsetting
collections.................................... 301 BA
Outlays............................................
O
Revolving fund (gross) .................
BA
O
Total, offsetting collections...........
Total Revolving fund (net)............
BA
Trust funds
Inland waterways trust fund:
Appropriation, current...................
Outlays..........................................
Rivers and harbors contributed funds:
Appropriation, permanent.............
Outlays..........................................
Harbor maintenance trust fund:
Appropriation, current...................
Outlays.........................................
Coastal wetlands restoration trust fund:
Appropriation, permanent.............
Outlays..........................................
Oil spill research:
Appropriation, current................... ..
Outlays..........................................
301 BA
O
88
122
75
128
74
81
301 BA
O
156
134
206
206
224
224
301 BA
O
446
446
500
500
462
462
301 BA
O
33
7
35
36
35
35
*
*
1
1
301 BA
O
Sum ary
m
Total, offsetting collections....
Total General expenses (net)
328
O
109
O
General expenses (gross).....
1
389
BA
O
130
53
General expenses:
Appropriation, current...................... 301 BA
Spending authority from offsetting
BA
collections .
*
325
-1
Flood control, Mississippi River and
tributaries (gross) ........................
1
O
110
-12 2
BA
O
Total, offsetting collections..............
Total Rood control and coastal
emergencies (net) .......................
16
16
1995
estimate
-2,643
* -4 4
Construction, general (gross)......
254
1,316
1994
estimate
1993
actual
Account
1993
actual
Account
Federal funds:
(As shown in detail above)....................
BA
O
148
152
156
155
Total Federal funds.......................
351
349
320
Trust funds:
(As shown in detail above)....................
1995
estimate
3,318
2,882
3,305
3,679
2,796
3,063
J -5
J -20
j -5
J -3 8
j -11
J -3 9
BA
O
3,293
2,856
3,262
3,636
2,746
3,013
BA
O
724
663
863
870
796
803
Deductions for offsetting receipts:
Proprietary receipts from the public ...... 301 BA/O
303 BA/O
149
144
1994
estimate
342
THE BUDGET FOR FISCAL YEAR 1995
Department of Defense—Civil—Continued
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
estimate
1993
actual
Account
Deductions for offsetting receipts:
Outlays............................................
^2
cvi
i
s
BA/O
J -2 3 4
Total Trust funds
BA
O
559
498
647
655
562
569
Total Corps of Engineers—Civil.
BA
O
3,852
3,354
3,909
4,291
3,308
3,582
J -1 6 5
Federal funds
General and Special Funds:
Payment to military retirement fund:
Appropriation, permanent................ 054 BA
Outlays.............................................
0
Retired pay, Defense:
Outlays............................................ 602 0
Trust funds
Military retirement fund:
Appropriation, permanent................ 602 BA
Outlays .
12.273
12.273
25,823
25,708
11.908
11.908
26.513
26.513
12.564
12.564
27.195
27.195
Sum ary
m
1993
actual
Account
Federal funds:
(As shown in detail above)...... ...............
Trust funds:
(As shown in detail above)...... ...............
11.908
11.908
25,823
25,708
BA
O
26.513
26.513
27.195
27.195
f - 12,273 J - 11,908 J -12,564
BA
O
25,823
25,708
26.513
26.513
27.195
27.195
Education benefits fund:
Appropriation, permanent ................ 702 BA
O
Outlays............................. ...............
182
182
195
195
192
192
Sum ary
m
_•
-*
43
43
44
44
6
3
5
5
2
4
BA
O
11
10
11
11
11
11
BA
O
*
1
*
1
*
*
BA
4
5
5
5
5
5
BA
4
5
5
5
5
5
BA
O
mainte
-4
-5
-5
BA
Account
BA
O
Interfund transactions................... ............... 702 BA/O
BA
O
Sum ary
m
1993
actual
Account
Trust funds:
(As shown in detail above)......................
BA
O
Total Armed Forces Retirement
Home ...........................................
59
57
J-9
BA
O
1995
estimate
1995
estimate
59
58
58
59
j -10
J -1 0
50
49
48
49
51
49
182
182
195
195
192
192
j-3 8
J -8 1
115
115
34
34
- 2 ........................
J -1 5 8
145
145
Federal funds
General and Special Funds:
Forest products program:
Appropriation, permanent................ 302 BA
Wildlife conservation:
Appropriation, permanent................ 303 BA
Arm Services Retirem H e
ed
ent om
Federal funds:
(As shown in detail above)..........
Armed Forces Retirement Home
2
2
2
3
3
3
Sum ary
m
1993
actual
Account
Trusi funds
Soliders’ and airmen’s home, operation and mainte
nance:
Appropriation, current...................... 705 BA
Spending authority from offsetting
collections....................................
BA
1994
estimate
Forest and W
ildlife Conservation, M
ilitary Reservations
1994
estimate
1993
actual
44
44
42
42
Deductions for offsetting receipts:
Proprietary receipts from the public.... 705 BA/O
Trust funds
Total Education Benefits „...............
BA
Soliders’ and airmen’s home, capital outlays:
Appropriation, current...................... 705
Outlays.............................................
United States Naval home — Operation and
nance:
Appropriation, current...................... 705
Outlays.............................................
United States Naval home — Capital program:
Appropriation, current...................... 705
Outlays............................................
Soldiers’ and airmen’s home revolving fund:
Spending authority from offsetting
collections.................................... 705
Outlays.............................................
Total Soldiers’ and airmen’s home
revolving fund (net).....................
43
43
O
Education Benefits
Trust funds:
(As shown in detail above)...... ...............
Total Soliders’ and airmen’s home,
operation and maintenance (net).
O
12.564
12.564
44
-*
Total, offsetting collections..............
Soldiers’ and airmen’s home revolv
ing fund (gross)...........................
1995
estimate
43
42
43
BA
O
Total, offsetting collections..............
12.273
12.273
BA
O
Interfund transactions ................... ............... 054 BA/O
Total Military Retirement .................
1994
estimate
1995
estimate
43
Soliders’ and airmen’s home, oper
ation and maintenance (gross) ....
O
M
ilitary Retirem
ent
1994
estimate
BA
O
1995
estimate
estimate
1
2
2
3
3
3
J2
J -2
J -2
J —3
Deductions for offsetting receipts:
302 BA/O
303 BA/O
42
*
43
44
Total Forest and Wildlife Conserva
tion, Military Reservations...........
BA
O
............................................................................
1
*
-*
343
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Defense—Civil—Continued
(In millions of dollars)
Account
1994
estimate
actual
1995
estimate
Sum ary
m
Federal funds:
(As shown in detail above)....................
15,605
15,167
15,228
15,603
15,375
15,642
-5
J2
J -2 2
'- 5
J -4 0
J-4 2
BA
O
15,579
15,141
15,183
15,557
15,322
15,589
BA
O
26,788
26,610
27,630
27,637
Trust funds:
(As shown in detail above)....................
1994
estimate
J -1 6 5
1995
estimate
' -215
J -2 3 4
28,240
26,246
301 BA/O
302 BA/O
303 BA/O
Total Federal funds.......................
Deductions for offsetting receipts:
Proprietary receipts from the public.... 301 BA/O
705 BA/O
J -1 1
BA
0
Deductions for offsetting receipts:
Proprietary receipts from the public ...
1993
actual
Account
j
Total Trust funds .............................
BA
O
Interfund transactions................................... 054 BA/O
702 BA/O
Total Department of Defense—Civil
BA
O
J - 9
j
26,614
26,437
' -1 2 ,273
j
-3 8
29,883
29,266
-1 0
j
27,405
27,411
' -
1 1 ,9 0$
j- 8 1
30,599
30,960
-1 0
27,996
28,004
' -
12,564
' -1 5 8
30,596
30,872
Department of Education
(In millions of dollars)
1993
actual
Account
1995
estimate
1994
estimate
Office of Elem
entary and Secondary Education
Federal funds
General and Special Funds:
Education Reform:
Appropriation, current...................... 501 BA
Outlays .
Outlays for grants to State and local
0
governments................................
BA
Appropriation, current......................
0
Outlays............................................
Outlays for grants to State and local
governments................................
Total Education Reform...................
.....................
155.....
19
(17)
104
(94)
7900
7108
'(104)
0
19
6,709
212
6,924
BA
0
Total, offsetting collections..............
36...........................................
6,651
6,900
6,019
(6,582)
(6,877)
(5,996)
'7,568
'908
'(907)
6,745
6,651
6,924
6,900
7,579
6,927
- 3 6 .....
1995
estimate
O
2,017
1,645
1,263
O
BA
O
(1,903)
(1,522)
(1,157)
'1,681
'202
O
'(183)
BA
O
1,531
2,017
1,377
1,645
1,719
1,464
BA
O
1,531
2,017
1,377
1,645
1,719
1,464
15
18
8
(15)
(18)
(8)
81
100
84
82
71
(91)
(72)
81
100
84
82
Total, offsetting collections .
Total School improvement programs
(net).............................................
Chicago litigation settlement
Outlays............................................. 501 O
Outlays for grants to State and local
governments................................
O
Indian education:
Appropriation, current...................... 501 BA
Outlays............................................
O
Outlays for grants to State and local
governments................................
O
Appropriation, current......................
BA
Outlays............................................
O
Outlays for grants to State and local
governments................................
O
Total Indian education.....................
BA
0
Impact aid:
Appropriation, current...................... 501 BA
Appropriation, permanent ,
BA
Outlays............................................
0
Outlays for grants to State and local
governments................................
0
Appropriation, current......................
BA
Outlays............................................
0
Outlays for grants to State and local
governments................................
BA
0
School improvement programs:
Appropriation, current...................... 501 BA
Spending authority from offsetting
collections....................................
BA
School improvement programs
(gross) ..........................................
10
Education for the disadvantaged
Total Impact a id ...............................
Outlays.............................................
Outlays for grants to State and local
governments................................
Appropriation, current......................
Outlays............................................
Outlays for grants to State and local
governments................................
1994
estimate
BA
Education for the disadvantaged:
Appropriation, current...................... 501 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Outlays for grants to State and local
governments................................
0
BA
Appropriation, current......................
Outlays............................................
0
Outlays for grants to State and local
governments................................
0
Total Education for the disadvan
taged (net)...................................
1993
actual
Account
6,709
6,615
6,924
6,900
7,579
6,927
820
20
432
798
983
249
(468)
(979)
(245)
'750
'614
'(613)
840
432
798
983
750
863
1,531
1,377
38
*
BA
O
Educational excellence:
Appropriation, current...................... 501 BA
Trust funds
National education commission on time and learning
-g ift
ADDroDriation. Dermanent ................ 503 BA
Outlays.............................................
0
Total Federal funds Office of Ele
mentary and Secondary Edu
cation ...........................................
Total Trust funds Office of Elemen
tary and Secondary Education ....
(65)
'8 6
'1 3
'(10)
86
84
-9 0
*
*
BA
O
9,071
9,180
BA
O
*
9,338
9,647
*
11,034
9,559
344
THE BUDGET FOR FISCAL YEAR 1995
Department of Education—Continued
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
estimate
1993
actual
Account
Office of Bilingual Education and M
inority Languages Affairs
1994
estimate
1995
estimate
Office of Vocational and Adult Education
Federal funds
Federal funds
General and Special Funds:
General and Special Funds:
Bilingual and immigrant education:
Appropriation, current...................... 501 BA
0
Outlays.............................................
Outlays for grants to State and local
governments................................
0
Appropriation, current......................
BA
Outlays.............................................
0
Outlays for grants to State and local
governments................................
0
Total Bilingual and immigrant edu
cation ...........................................
BA
0
226
125
(101)
240.....
257
(209)
218
(180)
'254
'3 0
Vocational and adult education:
Appropriation, current...................... 501 BA
Appropriation, permanent................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Total Vocational and adult education
'(26)
226
125
240
257
254
249
BA
O
1,474
7
1,190
1,481
7
1,317
1,447
7
1,373
(1,133)
(1,251)
(1,303)
1,481
1,190
1,488
1,317
1,455
1,373
8,020
3
7,421
7,864
3
7,439
Office of Postsecondary Education
Federal funds
General and Special Funds:
Office of Special Education and R
ehabilitative Services
Federal funds
General and Special Funds:
Special education:
Appropriation, current...................... 501 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Special education (gross)................
BA
O
2,966
3,109
3,295
*
Total Student financial assistance ...
2,564
3,604
3,274
(2,356)
(3,344)
(3,021)
2,966
2,564
3,109
3,604
3,295
3,274
Total, offsetting collections..............
Total Special education (net)..........
Rehabilitation services and disability research:
Appropriation, current...................... 506
Spending authority from offsetting
collections....................................
Outlays.............................................
Outlays for grants to State and local
governments................................
Rehabilitation services and disability
research (gross) ..........................
BA
O
2,966
2,564
3,109
3,604
3,295
3,274
BA
2,183
2,297
2,362
BA
O
2
1,986
2 ....
2,399
2,476
O
(1,804)
(2,169)
BA
O
2,185
1,986
2,299
2,399
2,362
2,476
Higher education facilities loans
(gross) ..........................................
BA
O
-2
Total Higher education facilities
loans (net) ...................................
- 2 ....
7,917
3
7,678
(89)
(79)
(58)
7,920
7,678
8,023
7,421
7,867
7,439
838
1,042
894
881
890
852
(30)
(26)
(33)
194
264
193
208
193
196
9
6
8
2
7
3
9
6
8
2
7
3
-9
Total, offsetting collections..............
BA
O
-8
-7
-3
-6
-5
ublic Enterprise Funds:
BA
O
American printing house for the blind:
Appropriation, current...................... 501 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
National technical institute for the deaf:
Appropriation, current...................... 502 BA
O
Outlays.............................................
Gallaudet University:
Appropriation, current...................... 502 BA
O
Outlays.............................................
Total Federal funds Office of Spe
cial Education and Rehabilitative
Services.......................................
BA
O
Higher education:
Appropriation, current...................... 502 BA
O
Outlays for grants to State and local
O
governments................................
Howard University:
Appropriation, current...................... 502 BA
Outlays.............................................
O
Higher education facilities loans:
Spending authority from offsetting
collections.................................... 502 BA
Outlays.............................................
O
(2,246)
Total, offsetting collections..............
Total Rehabilitation services and
disability research (net)...............
Student financial assistance:
Appropriation, current...................... 502 BA
Appropriation, permanent................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
BA
O
College housing loans:
Spending authority from offsetting
collections.................................... 502 BA
Outlays............................................
O
2,183
1,984
2,297
2,397
2,362
2,476
6
8
6
6
7
7
College housing loans (gross) ........
(8)
(6)
(7)
Total, offsetting collections..............
41
54
42
42
43
43
Total College housing loans (net)....
78
89
5,273
4,699
78
78
5,532
6,128
80
80
5,787
5,880
BA
O
49
24
49
17
59
18
49
24
49
17
-5 9
BA
O
59
18
-4 9
-4 9
-4 2
-2 6
-3 2
10
298
694
(10)
10
(260)
154
(345)
474
2,770
2,534
65
1,844
redlt Accounts:
Federal direct loan demonstration program, program
account
Appropriation, permanent................ 502 BA
Limitation on mandatory administra
tive expenses ..............................
O
Federal family education loan program account:
Appropriation, current...................... 502 BA
Appropriation, permanent................
BA
345
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Education—Continued
(In millions of dollars)
Federal family education loan liquidating account:
Appropriation, permanent . .............. 502 BA
Spending authority from offsetting
collections.................... ...............
BA
Outlays............................................
O
BA
0
Total, offsetting collections..............
Total Federal family education loan
liquidating account (net)..............
College housing and academic facilities program ac
count:
Appropriation, current...................... 502 BA
Limitations on direct loan activity....
Outlays............................................
0
College housing and academic facilities loans liquidat
ing account:
Appropriation, permanent................ 502 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
BA
O
1,906
2,770
2,352
2,534
2,464
1,909
1,906
3,085
1,587
786
1,099
4,332
1,624
3,102
1,586
2,498
4,184
4,332
3,211
3,102
2,372
2,498
-3,654
-1,616
3,055
3,203
-4 4 3
-5 5 2
756
882
6
5
9
42
7
20
16
28
15
42
7
20
-9
22
28
-1 6
BA
6
34
13
5
12
BA
O
Total Ubraries (net).........................
(357)..
14,791
14,518
11,506
10,578
12,315
11,728
Federal funds
General and Special Funds:
Education research, statistics, and improvement:
Appropriation, current...................... 503 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Appropriation, current......................
BA
Outlays............................................
O
Outlays for grants to State and local
O
governments................................
BA
O
1995
estimate
280
232
293
316
320
308
146
146
103
*
181
166
143
(159)
(147)
(132)
146
181
146
166
103
143
_*
BA
O
146
181
146
166
103
143
BA
O
426
413
439
483
423
451
305
352
368
90
361
63
428
131
501
395
361
415
428
498
501
-9 0
-6 3
-131
305
271
352
365
368
371
56
57
62
D
epartm
ental M
anagem
ent
Federal funds
General and Special Funds:
Program administration:
Appropriation, current...................... 503 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Program administration (gross).......
BA
O
Total Program administration (net) ..
BA
O
Office for Civil Rights:
Appropriation, current...................... 751 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Office for Civil Rights (gross)..........
*
52
74
59
BA
O
56
52
57
74
62
59
BA
O
56
52
57
74
62
59
29
29
32
*
30
*
30
31
29
30
29
30
32
31
29
30
32
31
Total, offsetting collections..............
Total Office for Civil Rights (net) ....
Office of Educational Research and Im
provem
ent
Libraries (gross)...............................
Total, offsetting collections..............
BA
O
0
Education research, statistics, and
improvement (gross) ...................
BA
O
Libraries:
Appropriation, current...................... 503 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Outlays for grants to State and local
O
governments................................
1
Historically Black College and University Capital Fi
nancing — program account
Appropriation, current...................... 502 BA
Limitation of guaranteed loan com
mitment ........................................
Outlays............................................
0
Total Federal funds Office of Postsecondaiy Education...................
Total Education research, statistics,
and improvement (net)................
1994
estimate
-3 ..
Total, offsetting collections..............
Total Federal funds Office of Edu
cational Research and Improve
ment .............................................
4
(29)..
-7
Total, offsetting collections..............
Total College housing and academic
facilities loans liquidating account
(net).............................................
2,464
Total, offsetting collections..............
BA
0
College housing and academic fa
cilities loans liquidating account
(gross).........................................
1993
actual
Account
-1,129
BA
0
Federal family education loan liq
uidating account (gross)..............
1995
estimate
2,352
Outlays............................................
Total Federal family education loan
program account .........................
1994
estimate
1993
actual
Account
Office of the Inspector General:
Appropriation, current...................... 751 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
280
293
3
235
316
210
(29)
(32)
(28)
7 320
'9 8
'0
283
235
293
316
320
308
Office of the Inspector General
(gross)..........................................
BA
O
Total, offsetting collections..............
Total Office of the Inspector General
(net)..............................................
-*
BA
O
Trust funds
Contributions:
Appropriation, permanent................ 503 BA
29
30
346
THE BUDGET FOR FISCAL YEAR 1995
Department of Education—Continued
(In millions of dollars)
Account
1994
estimate
actual
Outlays............................................
0
Total Federal funds Departmental
Management................................
BA
1995
estimate
Deductions for offsetting receipts:
Proprietary receipts from the public ..... 502 BA/O
391
353
0
Total Trust funds Departmental
Management................................
BA
437
469
461
461
BA
0
BA
O
BA
0
31,659
30,478
28,981
28,880
1995
estimate
-IB B
7 -1 4 2
J — 44
31,471
30,290
28,839
28,738
31,684
29,657
*
t
j
BA
O
Total Department of Education .
Sum ary
m
Federal funds:
(As shown in detail above)......................
Total Federal funds.......................
Trust funds:
(As shown in detail above)....................
*
0
1994
estimate
1993
actual
Account
*
*
28,839
28,738
31,684
29,657
-*
31,471
30,290
31,728
29,701
Department of Energy
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
estimate
Federal funds
Federal funds
Weapons activities (gross)
O
Total, offsetting collections..............
Total (Atomic energy defense activi
ties) (net) .....................................
BA
O
(General science and basic research):
(Appropriation, current).................... 251 BA
(Outlays)..........................................
O
Total Weapons activities
BA
O
Defense environmental restoration and waste manage
ment:
Appropriation, current...................... 053 BA
Outlays.............................................
O
Materials support and other Defense programs:
Appropriation, current...................... 053 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Materials support and other Defense
programs (gross).........................
Total, offsetting collections..............
BA
O
Defense nuclear waste disposal:
Appropriation, current...................... 053 BA
Outlays.............................................
O
Total Federal funds Atomic Energy
Defense Activities........................
4,496
3,595
3,272
1,538
5,832
1,800
5,805
1,800
5,169
6,034
5,832
5,395
5,805
5,072
5,169
-1,800
-1,800
4,496
4,294
3,595
4,005
3,272
3,369
BA
O
251 BA
O
Energy supply, R&D activities:
Appropriation, current......
271 BA
Spending authority from offsetting
collections....................
BA
Outlays.............................
O
BA
Appropriation, current......
O
Energy supply, R&D activities
(gross)..........................
BA
O
4,561
4,339
Total Energy supply, R&D activities
(net)..............................................
19.....
3,595
4,025
3,272
3,369
4,828
4,235
5,182
4,833
5,235
5,035
2,621
1,964
1,944
400
2,779
100
2,370
40
1,990
3,021
2,779
2,064
2,370
1,984
1,990
-1 0 0
-4 0
2,621
2,379
1,964
2,270
1,944
1,950
100
96
120
60
129
125
12,110
11,049
10,861
11,187
10,580
10,479
Uranium supply and enrichment activities:
Appropriation, current...................... 271 BA
Spending authority from offsetting
collections..............................................BA
Outlays............................................ ..........O
Appropriation, current................................BA
Outlays.......................................................O
BA
O
Total, offsetting collections..............
Total Uranium supply and enrich
ment activities (net).....................
1,615
1,633
1,113
1,067
3,041
3,224
3,330
358
3,207
1,500
4,603
" — 107
1,500
4,742
h
-48
" -4 3
BA
O
Fossil energy research and development:
Appropriation, current...................... 271 BA
Outlays............................................
O
Naval petroleum and oil shale reserves:
Appropriation, current...................... 271 BA
Outlays............................................
O
Energy conservation:
Appropriation, current...................... 272 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
3,399
3,207
4,617
4,555
4,830
4,699
-1,500
-1,500
3,041
2,850
3,117
3,055
3,330
3,199
437
177
63
849
1,053
70
357
"-4 2
" -4 2
10
122
1,285
1,053
205
315
73
122
-8 4 9
BA
O
Uranium supply and enrichment ac
tivities (gross) ..............................
1,406
1,436
-3 5 8
Total, offsetting collections
64
45
-4 0 0
BA
O
Total Materials support and other
Defense programs (net)..............
General and Special Funds:
General science and research activities:
Appropriation, current......
-1,538
BA
1995
Energy Program
s
Atom Energy Defense Activities
ic
General and Special Funds:
Weapons activities
(Atomic energy defense activities):
(Appropriation, current).................... 053 BA
(Spending authority from offsetting
collections)...................................
BA
O
(Outlays)..........................................
1994
estimate
1993
actual
Account
-7 0
-1 0
437
204
135
245
63
112
414
411
431
426
469
443
236
201
215
227
199
213
561
673
961
16
536
18
604
17
760
347
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Energy—Continued
(In millions of dollars)
1993
actual
Account
Outlays for grants to State and local
governments................................
1994
estimate
1995
estimate
0
(223)
(221)
(255)
BA
0
576
536
690
604
978
760
-1 6
-1 8
-1 7
BA
0
561
521
673
586
961
743
Strategic petroleum reserve
(Emergency energy preparedness):
(Appropriation, current).................... 274 BA
0
(Outlays)..........................................
177
192
207
194
244
224
177
192
207
194
244
224
126
115
10
-1 2 6
137
76
-1 0 8
9
Energy conservation (gross) ...........
Total, offsetting collections..............
Total Energy conservation (net)......
Total Strategic petroleum reserve ....
BA
0
SPR petroleum account
(Defense-related activities):
(Appropriation, current).................... 054 BA
(Outlays)..........................................
0
(Emergency energy preparedness):
(Appropriation, current).................... 274 BA
(Outlays)..........................................
0
Total SPR petroleum account.........
Energy information administration:
Appropriation, current......................
Outlays............................................
Emergency preparedness:
Appropriation, current......................
Outlays.............................................
Economic regulation:
Appropriation, current......................
Outlays............................................
Federal Energy Regulatoiy Commission:
Appropriation, current......................
Outlays............................................
Geothermal resources development fund:
Appropriation, current......................
Spending authority from offsetting
collections...................................
Outlays............................................
Geothermal resources development
fund (gross).................................
BA
0
-1
252
85
-1 0 8
9
276 BA
0
82
79
87
84
85
85
274 BA
0
9
8
9
9
8
8
276 BA
0
14
13
13
13
12
13
276 BA
0
159
142
165
164
167
167
271 BA
-4
2
(2)
(2)
(2)
275
262
260
268
255
257
*148
b 74
275
262
260
268
403
331
286
177
301
275
13
18
12
16
12
19
18
18
16
16
19
19
-1 2
-1 2
5
5
4
4
7
7
24
46
14
14
12
12
6,811
6,690
7,434
7,490
7,292
7,181
24
46
14
14
12
12
4
4
6
*
4
1
4
1
6
4
4
5
4
7
6
Public Enterprise Funds:
Isotope production and distribution program fund:
Appropriation, current...................... 271 BA
Authority to borrow, current.
BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Isotope production and distribution
program fund (gross) ..................
BA
0
Total, offsetting collections..............
Total Isotope production and dis
tribution program fund (net)........
BA
0
Trust funds
Advances for cooperative work:
Appropriation, permanent................ 271 BA
Outlays .
Total Federal funds Energy Pro
grams ...........................................
BA
0
BA
Federal funds
General and Special Funds:
Operation and maintenance, Alaska Power Administra
tion:
Appropriation, current...................... 271 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
BA
-4 ..
-5 2 5
525
118
-1 7 5
400
320
-3 3 8
375
288
118
225
320
37
288
BA
Operation and maintenance, Alaska
Power Administration (gross)......
0
Payments to States under Federal Power Act
Appropriation, permanent................ 806 BA
-*
Total, offsetting collections..............
Total Operation and maintenance,
Alaska Power Administration (net)
BA
0
0
BA
BA
0
271 0
Total, offsetting collections..............
2
Power M
arketing Adm
inistration
0
Total Alternative fuels production
(net).............................................
2
Uranium enrichment decontamination and decommis
sioning fund:
Appropriation, current...................... 271 BA
Outlays.............................................
0
-4 ..
BA
Clean coai technology:
Appropriation, current...................... 271 BA
Advance appropriation .
BA
Outlays................................
0
Alternative fuels production (gross)
1995
estimate
1994
estimate
-1 3
BA
O
0
0
Alternative fuels production:
Outlays..................................
Total Nuclear waste disposal fund ...
Total Trust funds Energy Programs .
Total, offsetting collections..............
Total Clean coal technology .
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Nuclear waste disposal fund:
Appropriation, current...................... 271 BA
Outlays.............................................
O
BA
Appropriation, current......................
Outlays.............................................
O
*
*
BA
0
0
Total Geothermal resources devel
opment fund (net)........................
1993
actual
Account
-7
-7
-5
-5
-4
-4
Operation and maintenance, Southeastern Power Ad
ministration:
Appropriation, current...................... 271 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
-1
-1
4
3
4
4
6
6
32
30
22
9
32
9
39
9
32
42
32
39
39
32
32
Operation and maintenance, South
eastern Power Administration
BA
0
348
THE BUDGET FOR FISCAL YEAR 1995
Department of Energy—Continued
(In millions of dollars)
1993
actual
Account
Total, offsetting collections..............
Total Operation and maintenance,
Southeastern Power Administra
tion (net) ......................................
-9
BA
0
Operation and maintenance, Southwestern Power Ad
ministration:
Appropriation, current...................... 271 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Operation and maintenance, South
western Power Administration
(gross)..........................................
BA
0
BA
0
BA
0
BA
0
BA
0
22
34
21
3
33
6
35
4
30
24
33
22
30
39
35
Colorado river basins power market
ing fund, Western Area Power
Administration (gross) .................
Total Colorado river basins power
marketing fund, Western Area
Power Administration (net)..........
-6
-4
34
29
BA
0
21
26
333
285
274
69
490
131
442
139
419
402
490
416
442
413
419
-131
-1 3 9
333
420
285
312
7
7.
*
586
397
456
2,491
3,379
3,056
3,485
3,086
3,517
O
78
126
127
BA
O
94
78
136
126
137
127
-9 4
-1 3 6
-1 3 7
BA
O
-1 6
-1 0
-1 0
BA
O
737
1,109
402
446
479
455
81
234
238
377
466
167
421
161
403
457
466
401
421
399
403
-3 7 7
-1 6 7
-161
81
89
234
254
238
241
30
31
30
30
26
28
111
121
265
285
264
269
19,769
18,968
18,962
19,408
18,616
18,385
J -1 3 0
j -2 8 8
J -1 ,6 2 0
J -2 0 8
J -3 3 0
J - 2,005
Federal funds
General and Special Funds:
Departmental administration:
Appropriation, current...................... 276 BA
Spending authority from offsetting
coOections....................................
BA
Outlays.............................................
O
Departmental administration (gross)
BA
O
Total, offsetting collections..............
BA
O
Office of the Inspector General:
Appropriation, current...................... 276 BA
Outlays...........................................
O
Special foreign currency program:
Outlays............................................. 271 O
BA
O
Sum ary
m
Federal funds:
(As shown in detail above)......................
3,453
3,485
3,542
3,517
-3,403
-3,387
340
641
50
82
155
130
Deductions for offsetting receipts:
Intrafund transactions........................... 271
908
Proprietary receipts from the public.... 271
276
Offsetting governmental receipts......... 276
Total Federal funds.........................
Trust funds:
(As shown in detail above)......................
BA
O
BA/O
BA/O
BA/O
BA/O
BA/O
J -1 6 5
J -1 6 7
17,721
16,919
16,760
17,206
15,907
15,676
BA
O
24
46
14
14
12
12
-1 4
J -1 2
16,760
17,206
15,907
15,676
Deductions for offsetting receipts:
Proprietary receipts from the public.... 271 BA/O
BA
O
Total Department of Energy............
137
j-2 9 6
J -1,593
J-1
J -1 5 9
BA
O
Total Trust funds.............................
136
1995
estimate
D
epartm
ental Adm
inistration
274
280
3,078
3,379
94
1994
estimate
25
30
-2,738
Colorado river basins power marketing fund, Western
Area Power Administration:
Spending authority from offsetting
collections.................................... 271 BA
Outlays.............................................
Total Federal funds Departmental
Administration..............................
Total, offsetting collections..............
Total Bonneville Power Administra
tion fund (net)..............................
22
23
-6 9
Emergency fund, Western Area Power Administration:
Appropriation, permanent................ 271 BA
Outlays.............................................
0
Public Enterprise Funds:
Bonneville Power Administration fund:
Authority to borrow, permanent....... 271 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Bonneville Power Administration
fund (gross) .................................
30
30
-9
Total Departmental administration
(net)..............................................
Total, offsetting collections..............
Total Construction, rehabilitation, op
eration and maintenance, West
ern Area Power Administration
(net)..............................................
-9
1993
actual
Account
Total, offsetting collections..............
-3
Construction, rehabilitation, operation and maintenance,
Western Area Power Administration:
Appropriation, current...................... 271 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Construction, rehabilitation, oper
ation and maintenance, Western
Area
Power
Administration
(gross)..........................................
32
23
1995
estimate
Total Federal funds Power Market
ing Administration........................
Total, offsetting collections..............
Total Operation and maintenance,
Southwestern Power Administra
tion (net)......................................
1994
estimate
BA
O
J -2 4
j
_*
22..
17,721
16,942
349
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Health and Human Services, except Social Security
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
1993
actual
Account
H
ealth Program
s
Total, offsetting collections..............
Public H
ealth Service
Total (Health research and training)
(net)..............................................
Food and Drug Administration
Total Health Resources and Serv
ices ...............................................
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 554 BA
Appropriation, permanent .
BA
Spending authority from offsetting
BA
collections....................................
Outlays............................................
0
BA
Appropriation, current......................
Outlays............................................
0
Salaries and expenses (gross).......
BA
782
*
870
*
645
*
39
773
68
970
352
1,040
A2
A2
Total, offsetting collections............
Total Salaries and expenses (net) .
BA
0
821
773
940
972
997
1,040
-3 9
0
-6 8
-3 5 2
782
734
873
904
645
688
Revolving fund for certification and other services:
Spending authority from offsetting
collections.................................... 554 BA
Outlays............................................
0
Revolving fund for certification and
other services (gross) .................
BA
0
Total, offsetting collections..............
Total Revolving fund for certification
and other services (net)..............
4
3
4
4
4
4
4
3
4
4
4
4
-4
-4
-4
BA
0
Total Federal funds Food and Drug
Administration..............................
BA
0
782
733
873
904
645
Health Resources and Sendees
(Health care seivices):
(Appropriation, current).................... 551 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)..........................................
0
(Outlays for grants to State and
local governments)......................
0
Health Resources and Sen/ices
(gross) .........................................
0
Total, offsetting collections..............
Total (Health care sen/ices) (net) ....
BA
0
(Health research and training):
(Appropriation, current).................... 552 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)..........................................
0
Health Resources and Services
(gross) .........................................
http://fraser.stlouisfed.org/ 0-94-12 (QL 3)
150-003
Federal Reserve Bank of St. Louis
BA
0
2,634
2,742
109
2,103
141
2,463
153
2,702
(1,438)
(1,580)
(1,646)
2,415
2,103
2,775
2,463
2,895
2,702
-1 0 9
BA
2,305
-141
-1 5 3
2,305
1,994
2,634
2,321
2,742
2,549
271
288
273
10
264
11
283
11
288
2,585
2,257
2,933
2,605
3,026
2,837
-11
-11
271
254
288
272
273
276
BA
0
2,576
2,248
2,921
2,593
3,014
2,825
1
5
6
110
123
110
105
110
105
11
9
9
7
1
15
10
15
11
18
1
24
10
24
11
BA
0
-7
-1 5
-1 5
Total (Health care services) (net) ....
BA
0
11
-6
9
-5
9
-4
Total Health loan funds...................
BA
0
11
-6
9
-5
9
-4
3
32
3
27
3
26
(340)
34
(375)
30
(375)
29
35
34
30
30
29
29
48
41
57
12
59
13
64
13
70
60
59
54
64
70
70
-1 2
-1 3
-1 3
48
46
41
51
57
57
22
77
63
Credit Accounts:
Health professions graduate student loan insurance
program account
Appropriation, current...................... 552 BA
Appropriation, permanent................
BA
Limitation on loan guarantee
committments...............................
Outlays.............................................
0
Federal funds
General and Special Funds:
1995
estimate
BA
0
Total, offsetting collections..............
Total Health professions graduate
student loan insurance program
account........................................
Health Resources and Services Administration
-1 0
Health centers malpractice claims:
Appropriation, current...................... 551 BA
Outlays.............................................
0
Vaccine injury compensation:
Appropriation, current...................... 551 BA
Outlays.............................................
0
Public Enterprise Funds:
Health loan funds
(Health care sen/ices):
(Appropriation, current).................... 551 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)...........................................
0
Health loan funds (gross)................
Public Enterprise Funds:
1994
estimate
BA
0
Health professions graduate student loan insurance
fund liquidating account:
Appropriation, permanent ................ 552 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Health professions graduate student
loan insurance fund liquidating
account (gross)............................
BA
0
Total, offsetting collections..............
Total Health professions graduate
student loan insurance fund liq
uidating account (net) .................
BA
0
Trust funds
Vaccine injury compensation program trust fund:
Appropriation, current...................... 551 BA
350
THE BUDGET FOR FISCAL YEAR 1995
Department of Health and Human Services, except Social Security—Continued
(In millions of dollars)
1993
actual
Account
Outlays............................................
Total Federal funds Health Re
sources and Services Administra
tion ..............................................
Total Trust funds Health Resources
and Services Administration .......
O
1994
estimate
1995
estimate
21
77
63
2,780
2,446
3,116
2,780
(Outlays)...........................................
3,219
3,012
Disease control, research, and train
ing (gross) ...................................
BA
O
77
77
22
21
63
63
Total (Health research and training)
(net)..............................................
Total Disease control, research, and
training.........................................
Indian Health Services
Federal funds
General and Special Funds:
Indian Health Services:
Appropriation, current...................... 551 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Indian Health Services (gross)........
BA
O
Indian health facilities:
Appropriation, current...................... 551 BA
Reappropriation...............................
BA
Appropriation, permanent................
BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Indian health facilities (gross) .........
BA
O
Total, offsetting collections..............
Total Indian health facilities (net)....
Total Federal funds Indian Health
Services.......................................
1,530
1,646
1,571
175
1,671
190
1,806
1,705
1,671
1,836
1,806
1,848
1,801
-1 9 0
-2 7 6
1,530
1,495
1,646
1,616
1,571
1,524
334
297
125
- * ...........................................
4
4
4
224
1,704
1,453
2,100
1,774
2,032
1,950
-4 0
-4 8
-4 8
BA
O
165
156
184
159
189
176
BA
O
1,664
1,413
2,052
1,725
1,984
1,901
BA
O
1,664
1,413
2,052
1,725
1,984
1,901
10,326
9
10,956
9
11,473
9
288
9,830
296
10,556
296
11,314
10,622
9,830
11,261
10,556
11,778
11,314
-2 8 8
-2 9 6
-2 9 6
10,335
9,543
10,965
10,261
11,482
11,018
BA
O
Federal funds
National Institutes of Health:
Appropriation, current...................... 552 BA
Appropriation, permanent................
BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
BA
O
Total, offsetting collections..............
338
247
Total National Institutes of Health
(net)..............................................
301
333
129
280
- * ...........................................
BA
O
338
246
301
333
129
280
BA
0
1,868
1,742
1,947
1,949
1,700
1,804
BA
O
Substance Abuse and Mental Health Services Administration
Federal funds
Federal funds
Disease control, research, and training
(Health care services):
(Appropriation, current).................... 551 BA
(Spending authority from offsetting
collections)...................................
BA
O
(Outlays)..........................................
(Outlays for grants to State and
local governments)......................
O
General and Special Funds:
Substance abuse and mental health services
(Health care services):
(Appropriation, current).................... 551
(Spending authority from offsetting
collections)...................................
(Outlays)..........................................
(Outlays for grants to State and
local governments) ......................
1,499
1,868
1,795
90
1,346
108
1,675
108
1,833
(355)
(591)
(608)
1,588
1,346
1,976
1,675
1,903
1,833
-9 0
-1 0 8
-1 0 8
1,499
1,257
1,868
1,566
1,795
1,725
Total Siibstance abuse and mental
health services ............................
164
183
188
2
1
1
Total Federal funds Substance
Abuse and Mental Health Serv
ices Administration......................
40
48
48
Substance abuse and mental health
services (gross)...........................
BA
O
Health research and training):
(Appropriation, current).................... 552 BA
(Appropriation, permanent)..............
BA
(Spending authority from offsetting
collections)...................................
BA
BA
2,039
2,150
2,434
BA
O
39
2,033
43
2,133
45
2,259
O
(1,994)
(2,089)
(2,214)
BA
O
2,078
2,033
2,194
2,133
2,479
2,259
-3 9
- 43
- 45
2,039
1,994
2,150
2,089
2,434
2,214
672
342
104
BA
O
2,039
2,667
2,150
2,432
2,434
2,318
BA
O
2,039
2,667
2,150
2,432
2,434
2,318
Total, offsetting collections..............
Total (Health care services) (net) ....
BA
O
Total, offsetting collections..............
207
General and Special Funds:
National Institutes of Health (gross)
General and Special Funds:
Total (Health care services) (net) ....
197
National Institutes of Health
* ...........................................
247
333
280
Centers for Disease Control and Prevention
Disease control, research, and train
ing (gross) ...................................
Total Federal funds Centers for Dis
ease Control and Prevention......
1995
estimate
276
1,801
-1 7 5
BA
O
Total, offsetting collections..............
Total Indian Health Services (net) ...
O
Total, offsetting collections..............
BA
O
1994
estimate
1993
actual
Account
BA
O
(Health research and training):
(Outlays)........................................... 552 O
351
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Health and Human Services, except Social Security—Continued
(In millions of dollars)
1993
actual
1994
estimate
1995
estimate
(Health research and training):
(Spending authority from offsetting
collections)................................... 552 BA
(Outlays)..........................................
O
Agency for Health Care Policy and Research
Federal funds
General and Special Funds:
Health care policy and research:
Appropriation, current...................... 552 BA
Spending authority from offsetting
collections....................................
BA
0
Outlays............................................
Health care policy and research
(gross).........................................
109
135
104
24
24
138
74
197
178
197
-7 4
111
Service, supply, and other funds
(gross)..........................................
133
111
159
138
-2 4
-2 4
Total, offsetting collections..............
BA
109
0
88
135
114
104
123
Total Seivice, supply, and other
funds ............................................
Federal funds
Total Federal funds Assistant Sec
retary for Health ..........................
56
70
70
53
53
107
54
117
88
123
107
124
117
-5 3
-5 3
-5 4
0
56
36
70
54
70
62
(Health research and training):
(Outlays).......................................... 552 0
15
1
*
56
50
70
55
70
62
141
132
153
146
159
153
Public health seivice management
(gross)..........................................
BA
0
Total, offsetting collections..............
Total (Health care services) (net) ....
Total Public health sen/ice manage
ment ............................................
BA
BA
0
Retirement pay and medical benefits for commissioned
officers:
Appropriation, current...................... 551 BA
Outlays.............................................
0
Health activities funds
(Health care services):
(Appropriation, current).................... 551 BA
(Outlays)..........................................
0
(Health research and training):
(Outlays).......................................... 552 0
Total Health activities funds............
BA
0
Intragovemmental Funds:
Service, supply, and other funds
(Health care services):
(Spending authority from offsetting
collections)................................... 551 BA
(Outlays)...........................................
0
Seivice, supply, and other funds
(gross) .........................................
Total, offsetting collections..............
109
6
3
-3
3 ...
1
1
6
*
4
1
142
156
143
143
186
186
142
156
143
143
186
186
-1 4 2
BA
0
Total (Health care services) (net) ....
88
-1 4 3
-1 8 6
BA
0
14
Total Trust funds Assistant Sec
retary for Health ..........................
Total Federal funds Public Health
Service.........................................
Total Trust funds Public Health
Seivice.........................................
1995
743
743
726
717
743
743
-6 6 4
BA
O
726
717
664
675
BA
O
-7 2 6
-7 4 3
-2
BA
O
- 8 ..
12
- 8 ...
46
27
46
33
46
38
BA
O
204
194
223
196
229
216
BA
O
46
27
46
33
46
38
BA
O
19,780
18,825
21,462
20,362
21,799
21,082
BA
O
68
123
109
48
111
100
65,496
17,100
75,774
64,477
24,600
87,156
62,638
26,600
96,388
(75,774)
(87,156)
(96,388)
'- 1 5
' —15
Trust funds
Miscellaneous trust funds:
Appropriation, permanent................ 551 BA
Outlays.............................................
O
Assistant Secretary for Health
General and Special Funds:
Public health service management
(Health care services):
(Appropriation, current).................... 551 BA
(Spending authority from offsetting
BA
collections)...................................
0
(Outlays)..........................................
Total (Health research and training)
(net)..............................................
1994
estimate
664
661
Total, offsetting collections..............
BA
0
Total Health care policy and re
search (net).................................
1993
actual
u
O H
ther ealth Program
s
Health Care Financing Administration
Federal funds
General and Special Funds:
Grants to States for Medicaid:
Appropriation, current...................... 551 BA
Advance appropriation.....................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Appropriation, current......................
BA
Outlays for grants to State and local
governments................................
Total Grants to States for Medicaid
O
BA
O
Payments to health care trust funds:
Appropriation, current...................... 571 BA
Appropriation, permanent................
BA
Outlays.............................................
O
Appropriation, current......................
BA
Outlays.............................................
O
Total Payments to health care trust
funds ............................................
BA
O
Program management
(Health care services):
(Spending authority from offsetting
collections)................................... 551 BA
(Outlays)..........................................
O
(Appropriation, current)....................
BA
'( - 1 5 )
82,596
75,774
89,077
87,156
89,223
96,373
45,963
44,721
45,731
1,646
40,388
37,547
4,197
41,744
o -2,056
° -2,056
45,973
44,721
47,377
40,388
39.688
39.688
2,066
2,169
2.149
2.149
a 15
2.174
2.174
11
352
THE BUDGET FOR FISCAL YEAR 1995
Department of Health and Human Services, except Social Security—Continued
(in millions of dollars)
1994
estimate
1993
actual
Account
(Outlays)..........................................
0
Program management (gross) ........
BA
0
1995
estimate
Outlays.............................................
*15
2,066
2,169
2,164
2,164
2,174
2,174
-2,066
Total, offsetting collections..............
-2,149
Total Federal funds Health Care Fi
nancing Administration................
103
15.
15..
(Health research and training):
(Spending authority from offsetting
collections)................................... 552 BA
(Outlays)..........................................
0
68
69
86
86
69
69
68
173
101
101
69
69
-6 8
-8 6
-6 9
Program management (gross) ........
BA
0
Total, offsetting collections..............
Total (Health research and training)
(net).............................................
Total Trust funds Health Care Fi
nancing Administration................
104
Health maintenance organization loan and ban guar
antee fund:
Appropriation, current...................... 551 BA
Spending authority from offsetting
collections....................................
BA
• Outlays.............................................
O
BA
O
BA
O
Trust funds
Federal hospital insurance trust fund:
Appropriation, permanent................ 571 BA
Administrative expenses: Program
management................................
Administrative expenses: Social Se
curity Administration ....................
Administrative expenses: Other......
Outlays.............................................
O
Appropriation, permanent................
BA
Outlays.............................................
O
BA
O
Federal supplementary medical insurance trust fund:
Appropriation, permanent................ 571 BA
Administrative expenses: Program
management................................
Administrative expenses: Social Se
curity Administration....................
Administrative expenses: Other......
Outlays.............................................
O
Appropriation, permanent................
BA
14
18
10
31
10
-1 8
Total, offsetting collections..............
Total Federal hospital insurance
trust fund .....................................
p
-1,920
Total Federal funds Health Pro
grams ...........................................
Total Trust funds Health Programs ..
BA
O
49,735
54,254
58,395
58,340
64,256
64,224
BA
O
128,583
120,592
136,470
127,555
128,926
136,060
BA
O
138,810
145,858
161,174
161,232
176,189
176,282
BA
O
148,363
139,417
157,931
147,917
150,724
157,142
BA
O
138,878
145,906
161,297
161,343
176,298
176,382
45
6,203
6,236
28
5,762
5,796
25
6,614
6,639
6,248
6,236
5,790
5,796
6,639
6,639
602
198
575
196
528
190
*
801
1
779
1
725
800
801
772
779
718
725
_*
-1
-1
800
801
771
778
718
724
17,328
5,240
20,184
7,150
21,105
6,770
3,298
3,545
3,215
(1,476)
25,941
(1,791)
30,251
(2,362)
31,670
B —18
* -1 8
25,866
25,941
30,879
30,251
31,072
31,652
-3,298
-3,545
-3,215
22,568
22,642
27,334
26,706
27,857
28,437
29,616
29,679
33,895
33,280
35,214
35,800
Federal funds
15..
15..
General and Special Funds:
Public Enterprise Funds:
Total Health maintenance organiza
tion loan and loan guarantee fund
(net)..............................................
^ -1 5 0
Social Security Adm
inistration
BA
0
Health maintenance organization
loan and loan guarantee fund
(gross)..........................................
O
1995
estimate
BA
0
Total Program management.
Total Federal supplementary medi
cal insurance trust fund ..............
1994
estimate
-2,174
BA
0
Total (Health care services) (net) ....
1993
actual
Account
14
-8
15
8
4
8
4
-8
6
6
21
6
-6
15
Payments to social security trust funds:
Appropriation, current...................... 651 BA
Appropriation, permanent................
BA
Outlays.............................................
0
Total Payments to social security
trust funds....................................
BA
0
Special benefits for disabled coal miners:
Appropriation, current...................... 601 BA
Advance appropriation .
BA
Spending authority from offsetting
collections....................................
BA
0
Outlays.............................................
Special benefits for disabled coal
miners (gross) .............................
BA
0
-4
Total, offsetting collections..............
89,076
102,779
112,133
(698)
(744)
(735)
(387)
(79)
91,604
(395)
(37)
102,892
(417)
(70)
112,258
p —200
p -2 0 0
89,076
91,604
102,779
102,892
111,933
112,058
49,735
58,545
66,176
(1,401)
(1,461)
(1,456)
(296)
(28)
54,254
(302)
(22)
58,490
^ —150
(318)
(22)
66,144
* -1,920
Total Special benefits for disabled
coal miners (net) .........................
BA
0
Supplemental security income program:
Appropriation, current...................... 609 BA
BA
Advance appropriation.....................
Spending authority from offsetting
collections....................................
BA
Administrative expenses: Social Se
curity Administration....................
Outlays.............................................
0
Appropriation, current......................
BA
Outlays.............................................
0
Supplemental security income pro
gram (gross)................................
BA
0
Total, offsetting collections..............
Total Supplemental security income
program (net)...............................
BA
0
Total Federal funds Social Security
Administration..............................
BA
0
353
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Health and Human Services, except Social Secunty—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
estimate
Outlays for grants to State and local
governments................................
Adm
inistration for C
hildren and Fam
ilies
Federal funds
General and Special Funds:
Family support payments to States:
Appropriation, current...................... 609 BA
BA
Advance appropriation.....................
O
Outlays.............................................
Outlays for grants to State and local
O
governments................................
Total Family support payments to
States..........................................
BA
O
Low income home energy assistance:
Appropriation, current...................... 609 BA
Advance appropriation.....................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Total Low income home energy as
sistance .......................................
BA
O
Refugee and entrant assistance:
Appropriation, current...................... 609 BA
Outlays............................................
O
Outlays for grants to State and local
O
governments................................
Community services block grant
Appropriation, current...................... 506 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Community services block grant
(gross)..........................................
BA
O
Social services block grant (gross)..
11,695
4,000
15,628
12,173
4,000
16,413
12,762
4,200
16,921
(15,628)
(16,413)
(16,921)
15,695
15,628
16,173
16,413
16,962
16,921
1,346
1,068
1,437
2,076
730
791
(1,067)
(2,075)
(791)
1,346
1,068
1,437
2,076
73d
791
381
360
400
378
414
399
(327)
(345)
(364)
441
464
435
423
475
465
(423)
(475)
(465)
441
423
464
475
435
465
*
Family preservation and support:
Appropriation, current...................... 506
Outlays.............................................
Outlays for grants to State and local
governments................................
Payments to States for AFDC work programs:
Appropriation, current...................... 504
Outlays............................................
Outlays for grants to State and local
governments................................
Interim assistance to States for legalization:
Advance appropriation..................... 506
Outlays.............................................
Outlays for grants to State and local
governments................................
Payments to States for child care assistance:
Appropriation, current...................... 609
Outlays............................................
Outlays for grants to State and local
governments................................
Social services block grant:
Appropriation, current...................... 506
Spending authority from offsetting
collections....................................
Outlays............................................
BA
O
464
475
435
465
BA
0
60
48
O
(47)
(126)
1,100
860
1,300
1,031
1,000
736
O
(736)
(860)
(1,031)
BA
O
326
318
812
699
243
244
O
(317)
(696)
893
411
893
980
1,091
1,037
O
(411)
(980)
2,800
3,800
5
2,790
2,877
3,240
BA
O
2,805
2,790
3,800
2,877
2,800
3,240
2,800
2,785
3,800
2,877
2,800
3,240
3,659
4,237
4,913
3
3,435
8
4,143
8
4,449
(3,191)
(3,856)
(4,149)
3,662
3,435
4,245
4,143
4,920
4,449
-3
-8
-8
3,659
3,432
4,237
4,135
4,913
4,441
2,924
2,636
2,993
3,000
3,441
3,362
(2,636)
(3,000)
(3,362)
*
*
-5 ..
BA
O
BA
O
BA
O
BA
O
0
n~
*
29,465
27,798
32,370
31,941
32,477
32,063
*
0
Adm
inistration on Aging
Federal funds
leneral and Special Funds:
Aging services programs:
Appropriation, current...................... 506 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
2,800
BA
O
Total Trust funds Administration for
Children and Families .................
(1,037)
BA
(3,240)
Payments to states for foster care and adoption assist*
ance:
Appropriation, current...................... 506 BA
O
Outlays.............................................
Outlays for grants to State and local
governments................................
O
Payments to States from receipts for child support:
Outlays............................................. 609 O
Outlays for grants to State and local
governments................................
O
Trust funds
Gifts and contributions:
Outlays............................................. 506 O
(243)
BA
O
(2,877)
Total, offsetting collections..............
Total Children and families services
programs (net).............................
150
131
BA
O
441
423
(2,785)
Children and families services programs:
Appropriation, current...................... 506 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Children and families services pro
grams (gross) ..............................
1995
estimate
O
Total, offsetting collections..............
Total Social services block grant
(net)..............................................
Total Federal funds Administration
for Children and Families............
Total, offsetting collections..............
Total Community services block
grant (net)....................................
1994
estimate
1993
actual
Account
Aging seivices programs (gross)
BA
O
871
876
*
567
817
876
(567)
(817)
(876)
839
567
871
817
876
876
839
567
871
817
876
876
155
94
93
_.
Total, offsetting collections..............
Total Aging services programs (net)
839
BA
O
Office of the Secretary
Federal funds
General and Special Funds:
General departmental management:
Appropriation, current...................... 609 BA
354
THE BUDGET FOR FISCAL YEAR 1995
Department of Health and Human Services, except Social Security—Continued
(In millions of dollars)
1993
actual
Account
Spending authority from offsetting
collections....................................
Outlays.............................................
1995
estimate
1994
estimate
1993
actual
Account
Total, offsetting collections..............
BA
48
193
54
250
55
146
BA
203
193
148
250
148
146
-4 8
-5 4
-5 5
155
145
94
196
93
91
62
64
65
0
-7
Total Policy research (net)..............
0
Total, offsetting collections..............
Total General departmental man
agement (net)..............................
BA
0
Office of the Inspector General:
Appropriation, current...................... 609 BA
Spending authority from offsetting
collections....................................
BA
0
Outlays.............................................
Office of the Inspector General
(gross)..........................................
40
101
40
102
40
104
102
101
103
102
104
104
-4 0
-4 0
62
61
64
62
65
64
18
18
19
4
22
4
22
13
9
Intragovemmental Funds:
Working capital fund:
Spending authority from offsetting
collections.................................... 506 BA
Outlays............................................
O
99
91
110
116
113
115
99
91
110
116
113
115
22
22
22
22
Office for CivM Rights:
Appropriation, current...................... 751 BA
Spending authority from offsetting
BA
collections....................................
0
Outlays.............................................
BA
0
Total, offsetting collections..............
Total Office for Civil Rights (net)....
-4
BA
-4
2
2
*
2
*
2
2
2
0
2
2
2
2
-*
Total, offsetting collections..............
BA
-*
-*
2
2
0
2
2
2
2
Policy research:
Appropriation, current...................... 609 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
8
12
Total, offsetting collections..............
-9 9
-1 1 0
-1 1 3
BA
O
-8
6
2
BA
O
Total Federal funds Office of the
Secretary......................................
246
223
190
292
192
187
Federal funds
General and Special Funds:
Salary and expense:
Appropriation, current...................... 551 BA
Outlays.............................................
0
7
13
7
14
7
16
BA
O
15
13
19
14
20
16
* —38
A -3 8
Sum ary
m
Federal funds:
(As shown in detail above)..........
BA
O
208,529
197,684
225,220
214,209
219,483
226,068
BA/O
BA/O
BA/O
BA/O
j-4
j -11
j - *
J -7 3 5
J -4
J -10
j - *
J - 922
J -4
J -1 0
j -*
J - 1,047
BA
O
207,778
196,933
224,283
213,273
218,421
225,006
BA
O
138,878
145,906
161,297
161,343
176,298
176,382
j -3 1
J -3 1
J - 15,306 J -17,581
j -2
J -3 1
J - 20,054
Deductions for offsetting receipts:
551
552
554
609
Total Federal funds.............
Trust funds:
(As shown in detail 'above)..........
Deductions for offsetting receipts:
. 551 BA/O
571 BA/O
908 BA/O
Total Trust funds
13
Policy research (gross)....................
BA
O
Total Working capital fund (net)
19
18
*
2
BA
18
18
2
Office of Consumer Affairs:
Appropriation, current...................... 506 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Total Office of Consumer Affairs
(net)..............................................
-4
18
18
0
Office of Consumer Affairs (gross) ..
Working capital fund (gross)...........
Allowances
BA
0
Office for Civil Rights (gross)..........
-7
12
7
4
22
22
22
Total, offsetting collections..............
-7
8
5
-4 0
BA
0
Total Office of the Inspector General
(net)..............................................
1995
estimate
BA
O
General departmental management
(gross)....................................
1994
estimate
BA
O
.. 571 BA/O
Total Department of Health and
Human Setvices, except Social
Security........................................
BA
0
123,540
130,567
143,685
143,731
156,213
156,297
J - 44,721
J - 40,388
J -39,688
286,597
282,779
327,580
316,615
334,946
341,615
Department of Health and Human Services, Social Security
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
Social Security A inistration
dm
Trust funds
Federal old-age and survivors insurance trust fund:
Appropriation, permanent................ 651 BA
271,282
283,845
296,715
1993
actual
Account
Spending authority from offsetting
collections....................................
Administrative expenses: Social Se
curity Administration....................
BA
estimate
1995
estimate
1,585
1,841
2,305
(1.733)
(1,758)
(1,661)
355
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Health and Human Services, Social Security—Continued
(In millions of dollars)
1993
actual
Account
Administrative expenses: Other......
Outlays............................................ .......... 0
Appropriation, permanent.......................... BA
Outlays....................................................... 0
Federal old-age and survivors insur
ance trust fund (gross)................
(298)
271,545
(128)
284,235
(255)
297,936
7 -1 7
/ —17
272,867
271,545
285,685
284,235
299,003
297,919
-1,841
283,845
282,394
296,698
295,614
35,060
38,135
42,003
(4,823)
(5,496)
(5,825)
(883)
(61)
34,641
(1,249)
(42)
38,075
(1,066)
(56)
41,595
J —25
Total Trust funds Social Security
Administration..............................
O
y -2 5
BA
O
35,060
34,641
38,135
38,075
41,978
41,570
BA
O
306,342
304,602
321,980
320,470
338,676
337,184
306,342
304,602
321,980
320,470
338,676
337,184
j -6
J — 16
j-1 6
306,336
304,595
J - 6,246
321,964
320,454
J - 5,790
338,660
337,168
J -6,639
300,090
298,349
316,174
314,663
332,021
330,529
-2,305
271,282
269,960
Outlays............................................
Total Federal disability insurance
trust fund .....................................
1995
estimate
1994
estimate
1993
actual
Account
-1,585
BA
O
Total, offsetting collections..............
Total Federal old-age and survivors
insurance trust fund (net)............
1995
estimate
1994
estimate
Sum ary
m
BA
O
Federal disability insurance trust fund:
Appropriation, permanent................ 651 BA
Limitation on administrative and
other expenses............................
Administrative expenses: Social Se
curity Administration....................
Administrative expenses: Other ......
O
Outlays............................................
BA
Appropriation, permanent................
Trust funds:
(As shown in detail above) ......................
BA
O
Deductions for offsetting receipts:
Proprietary receipts from the public.... 651 BNO
Total Trust funds .............................
BA
O
Interfund transactions ................................... 651 BA/O
Total Department of Health and
Human Sen/ices, Social Security
BA
O
Department of Housing and Urban Development
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
estimate
H
ousing Program
s
Outlays for grants to State and local
governments................................
Federal funds
General and Special Funds:
Housing programs annual contributions for assisted
housing:
Appropriation, current...................... 604 BA
Appropriation, permanent................
BA
O
Outlays............................................
Outlays for grants to State and local
governments................................
O
Appropriation, current......................
BA
O
Outlays............................................
Appropriation, current......................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments ..................................
Total Housing programs annual con
tributions for assisted housing....
Reformed multifamily property disposition:
Appropriation, permanent................
Outlays............................................
Assistance for the renewal of expiring Se
sidy contracts:
Appropriation, current......................
Advance appropriation.....................
Outlays............................................
9,313
9,469
14,484
13,975
13,995
(8,899)
(8,107)
A -4 6
(7,881)
100
a
-3
BA
O
BA
O
H -
5
s
h
-
30
" (-1 3 )
8,697
14,484
9,087
13,967
9,469
13,959
3
1
(1 )
796
3
797
1
(1 )...
-7 2
816
-7 2
817
-281
806
-281
806
*733
BA
O
8 subBA
BA
O
a
" —180
0
Other assisted housing programs
(Community development):
(Reappropriation) ............................. 451 BA
(Outlays)..........................................
O
(Outlays for grants to State and
local governments)......................
O
(Housing assistance):
BA
O
(Outlays)..........................................
Total Other assisted housing pro
grams ...........................................
8,597
Total Assistance for the renewal of
expiring Section 8 subsidy con
tracts ............................................
B6
6,076
850
2,532
4,558
720
4,111
4,292
800
5,007
0
BA
0
Homeownership and opportunity for people everywhere
grants (HOPE grants):
Appropriation, current...................... 604 BA
Outlays.............................................
0
Outlays for grants to State and local
governments................................
0
Appropriation, current......................
BA
Outlays............................................
0
Outlays for grants to State and local
governments................................
0
Total Homeownership and oppor
tunity for people eveiywhere
grants (HOPE grants) .................
1994
1993
actual
Account
BA
0
Congregate services:
Appropriation, current...................... 604 BA
Outlays.............................................
0
Outlays for grants to State and local
governments................................
0
Housing counseling assistance:
Appropriation, current...................... 506 BA
Outlays.............................................
0
Section 8 moderate rehabilitation, single room occu
pancy:
Appropriation, current...................... 604 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Manufactured home inspection and monitoring:
Appropriation, permanent................ 376 BA
Outlays............................................
O
Interstate land sales:
Appropriation, permanent................ 376 BA
1995
estimate
(3,615)
(4,451)
6,926
2,532
5,278
4,111
5,092
5,007
271
35
-141
100
68
99
(35)
(68)
" -6 6
(99)
(1,9!
h
- 13
" (-1 3 )
271
35
-2 0 7
21
25
6
5
11
16
(5)
(1 1 )
(16)
6
6
12
50
7
10
105
3
150
19
36
(3)
(19)
(36)
68
100
86
9
8
8
8
8
8
*
1
1
356
THE BUDGET FOR FISCAL YEAR 1995
Department of Housing and Urban Development—Continued
(In millions of dollars)
1993
actual
Account
Outlays.............................................
1994
estimate
1995
estimate
Spending authority from offsetting
collections....................................
0
Public Enterprise Funds:
Rental housing assistance fund:
Spending authority from offsetting
collections.................................... 604 BA
Outlays.............................................
0
Rental housing assistance fund
(gross)..........................................
68
65
69
BA
FHA mutual mortgage and coopera
tive housing insurance funds liq
uidating account (gross)..............
a
4,635
4,816
4,998
3,535
4,361
2,895
-4,635
BA
O
-4,664
> -3 3 4
a
181
-1,463
-1,466
311
10
340
349
0
-6 5
Total, offsetting collections..............
Total Rental housing assistance
fund (net).....................................
Total FHA mutual mortgage and co
operative housing insurance
funds liquidating account (net)....
-68
BA
0
Flexible Subsidy Fund:
Appropriation, current...................... 604 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Flexble Subsidy Fund (gross) ........
Total, offsetting collections..............
Total Flexble Subsidy Fund (net)....
Community disposal operations fund:
Spending authority from offsetting
collections....................................
Outlays.............................................
Community disposal operations fund
(gross) ..........................................
BA
O
36
50
76
85
77
126
78
69
10
85
113
126
128
89
-7 6
BA
O
-6 6
-7 7
-7 8
-6 6
9
36
50
50
10
BA
O
*
*
BA
O
*
*
*
—*
Total, offsetting collections..............
Total Community disposal oper
ations fund (net)..........................
BA
O
General and special risk program account
Appropriation, current...................... 371 BA
Appropriation, permanent................
BA
Limitation on direct loan activity......
Limitation on loan guarantee
commmitments.............................
Outlays.............................................
O
Limitation on loan guarantee
commmitments.............................
Total General and special risk pro
gram account......................................BA
O
......................................................... .......
-*
-•
FHA general and special risk insur
ance funds liquidating account
(gross)..........................................
Homeownership assistance fund:
0
Homeownership assistance fund
(gross)..........................................
O
1
- 2 .......
-3
-4
BA
O
-3
-5
-7
-6
-1 9 ..
3
-4
-4
37
17
263
(64,565)
263
(20,000)
309
(84,982)
309
Credit Accounts:
FHA mutual mortgage insurance program account:
Appropriation, current...................... 371 BA
Limitations on direct loan activity....
Outlays.............................................
0
Limitations on direct loan activity....
FHA mutual mortgage and cooperative housing insur
ance funds liquidating account:
Spending authority from offsetting
collections.................................... 371 BA
Outlays.............................................
0
256
(100,000)
256
a
4,635
4,816
4,664
3,535
Housing for the elderly or handicapped fund liquidating
account
Appropriation, permanent................ 371 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Housing for the elderly or handi
capped fund liquidating account
(gross)..........................................
BA
O
Total, offsetting collections..............
4,233
2,895
Total Housing for the elderly or
handicapped fund liquidating ac
count (net) ...................................
-4,233
-1 2 7
(220)
(11,792)
353
(13,436)
328
a
(19,685)
336
(2,000)
BA
O
Nonprofit sponsor assistance liquidating account:
Spending authority from offsetting
collections.................................... 604 BA
321
353
340
328
349
336
500
275
465
119
492
120
1,514
1,798
1,320
1,851
1,433
1,690
£520
*59
*53
2,290
1,798
2,424
1,851
2,104
1,744
-1,320
* -5 2 0
-1,433
* -5 9
775
284
584
11
612
252
137
37
772
889
763
902
767
791
909
889
800
902
767
791
-7 7 2
BA
0
Nehemiah housing opportunity fund:
Appropriation, current...................... 604 BA
Outlays.............................................
0
Total FHA general and special risk
insurance funds liquidating ac
count (net) ...................................
127
-1,514
BA
0
Total, offsetting collections..............
- 2 .......
-7
Total, offsetting collections..............
Total Homeownership assistance
fund (net).....................................
1
BA
O
FHA general and special risk insurance funds liquidat
ing account:
Appropriation, permanent............... 371 BA
Authority to borrow, permanent..............BA
Spending authority from offsetting
collections...........................................BA
Outlays.....................................................O
Spending authority from offsetting
collections...........................................BA
Outlays.....................................................O
t
_•
1995
^ 334
BA
Total, offsetting collections..............
68
1994
estimate
1993
actual
Account
-7 6 3
-7 6 7
137
117
37 .
139
24
357
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Housing and Urban Development—Continued
(In millions of dollars)
Outlays............................................
Nonprofit sponsor assistance liq
uidating account (gross)..............
1995
estimate
1994
estimate
1993
actual
Account
1993
actual
Account
0
BA
0
1995
estimate
1
2
3,765
2,996
3,314
3,057
4
-1
1
1
-*
4
-1
1
1
-*
Outlays.............................................
Total Federal funds Public and In
dian Housing Programs ..............
1994
estimate
BA
0
2,817
2,720
Total, offsetting collections..............
Total Nonprofit sponsor assistance
liquidating account (net)..............
Governm N
ent ational M
ortgage Association
BA
0
Total Federal funds Housing Pro
grams ..........................................
BA
0
17,434
19,066
15,538
18,369
16,495
19,412
Federal funds
Public Enterprise Funds:
Management and liquidating functions fund:
Spending authority from offsetting
BA
Outlays.............................................
O
Management and liquidating func
tions fund (gross)........................
Public and Indian H
ousing Program
s
Federal funds
General and Special Funds:
Payments for operation of low income housing
projects:
Appropriation, current...................... 604 BA
Outlays............................................
O
Outlays for grants to State and local
governments................................
O
Community Partnerships against crime:
Appropriation, current...................... 604 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Community Partnerships against
crime (gross) ...............................
BA
O
Total
Community Partnerships
against crime (net)......................
BA
O
BA
0
Credit Accounts:
Indian housing loan guarantee program account
Appropriation, current...................... 604 BA
Limitation on ban guarantee
commmitments.............................
2,621
2,533
2,496
2,563
(2,453)
(2,533)
(2,563)
175
265
265
116
268
239
(116)
(268)
(239)
175
116
265
268
265
239
*
175
116
300
265
268
265
239
778
30
500
146
(30)
(146)
60
100
50
63
213
54
219
58
166
(213)
(219)
(166)
123
213
154
219
108
166
-6 3
BA
O
Total, offsetting collections..............
Total Low-rent public housing—
loans and other expenses (net)...
2,282
2,453
Total Management and liquidating
functions fund (net).....................
-5 4
-5 8
60
151
100
165
50
108
1
3
(7)
(22)
-4
BA
O
Credit Accounts:
Guarantees of mortgage-backed securities loan guar
antee program account:
Appropriation, current...................... 371 BA
Limitations on loan guaranteed loan
commitments................................
Outlays.............................................
0
Guarantees of mortgage-backed securities liquidating
account
Spending authority from offsetting
collections.................................... 371 BA
Outlays .
Guarantees of mortgage-backed se
curities liquidating account (gross)
Revitalization of severely distressed public housing
projects:
Appropriation, current...................... 604 BA
Outlays............................................
0
Outlays for grants to State and local
governments................................
O
Public Enterprise Funds:
Low-rent public housing—loans and other expenses:
Authority to borrow, permanent....... 604 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Outlays for grants to State and local
governments................................
O
Low-rent public housing—loans and
other expenses (gross)...............
Total, offsetting collections .
_•
Total, offsetting collections..............
BA
O
Total Federal funds Government
National Mortgage Association ....
-1
..................................................................
-4
-2
-1
(107,700)
7
(130,000)
8
(130,000)
9
1,145
685
1,507
912
1,525
1,145
685
1,507
912
1,525
891
-1,145
-1,507
-1,525
BA
O
-4 6 0
-5 9 4
-6 3 4
BA
O
7
-4 5 8
8
-5 8 8
9
-6 2 6
4,243
3,198
4,400
3,746
4,400
4,136
(3,198)
(3,746)
(4,136)
BA
0
Total, offsetting collections..............
Total Guarantees of mortgagebacked securities liquidating ac
count (net)...................................
-1
Com unity Planning and Developm
m
ent
Federal funds
General and Special Funds:
Community development grants:
Appropriation, current...................... 451 BA
O
Outlays for grants to State and local
governments................................
O
Project-based community development grants:
Appropriation, current...................... 451 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Home investment partnerships program
(Housing assistance):
(Appropriation, current).................... 604 BA
(Appropriation, permanent)..............
BA
O
7 800
'26
'(26)
1,172
60
212
1,275
1,100
876
1,200
358
THE BUDGET FOR FISCAL YEAR 1995
Department of Housing and Urban Development—Continued
(In millions of dollars)
1993
actual
Account
(Outlays for grants to State and
local governments)......................
Total (Housing assistance)..............
Total Home investment partnerships
program........................................
1995
estimate
1993
actual
Account
O
(212)
(876)
(1,200)
Outlays for grants to State and local
governments................................
BA
O
1,232
212
1,275
876
1,100
1,200
Revolving fund (liquidating pro
grams) (gross).............................
BA
O
1,232
212
1,275
876
1,100
1,200
Total, offsetting collections..............
Colonias assistance program:
Appropriation, current...................... 451 BA
O
Outlays............................................
Outlays for grants to State and local
governments................................
O
Urban development action grants:
Appropriation, current...................... 451 BA
O
Outlays.............................................
Outlays for grants to State and local
governments................................
O
Capacity building for community development and af
fordable:
Appropriation, current...................... 451 BA
Outlays.............................................
0
Urban homesteading:
Outlays............................................. 451 0
Assistance for solar and conservation Improvements:
Outlays............................................. 272 0
Outlays for grants to State and local
governments................................
0
Emergency shelter grants program:
Appropriation, current...................... 604 BA
Outlays............................................
0
Outlays for grants to State and local
governments................................
0
Supportive housing program:
Appropriation, current...................... 604 BA
Outlays............................................
0
Outlays for grants to State and local
governments................................
0
Supplemental assistance for facilities to assist the
homeless:
Appropriation, current...................... 451 BA
Outlays.............................................
0
Outlays for grants to State and local
governments................................
0
Shelter plus care:
Appropriation, current...................... 604 BA
Outlays............................................
0
Outlays for grants to State and local
governments................................
0
Innovative homeless initiatives demonstration program:
Appropriation, current...................... 604 BA
Outlays.............................................
0
Outlays for grants to State and local
governments................................
0
Homeless assistance grants:
Appropriation, current...................... 604 BA
Outlays............................................
O
Outlays for grants to State and local
governments................................
O
Opportunities for youth: Youthbuild:
Appropriation, current...................... 604 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
National cities in schools community development pro
gram:
Appropriation, current...................... 451 BA
Outlays.............................................
O
Public Enterprise Funds:
Revolving fund (liquidating programs):
Spending authority from offsetting
collections.................................... 451 BA
Outlays.............................................
O
1994
estimate
'100
'4
'(4)
-3
51
45
-1 0 0
35
(51)
(45)
(35)
Total Revolving fund (liquidating
programs) (net)............................
1995
estimate
BA
O
BA
O
BA
O
(-8 6 )
(-7 7 )
(-7 4 )
86
94
77
72
74
67
-8 6
O
Credit Accounts:
Community development loan guarantee program ac
count
Limitations on guaranteed loan com
mitments ...................................... 451
Community development guaranteed loans liquidating
account:
Outlays............................................. 451 O
Total Federal funds Community
Planning and Development.........
20 ..
4
1994
estimate
-7 7
-7 4
6
-5
-7
(2,000)
(2,054)
(2,054)
-4 4
-2 5
-2 0
5,979
3,593
6,378
4,855
7,600
5,876
35
40
Policy Development and Research
o ......
50
71
115......
68
86
Federal funds
General and Special Funds:
Research and technology:
Appropriation, current...................... 451 BA
Spending authority from offsetting
collections.........................................
(71)
(68)
150
91
334
107
159
(91)
(107)
(159)
(86)
23
BA
V.
Outlays.............................................
O
28
25
36
Research and technology (gross) ....
BA
O
23
28
35
25
40
36
BA
23
26
35
25
40
36
15
9
25
12
33
22
(9)
(12)
(22)
240
250
248
152
410
154
392
172
420
392
410
404
392
420
420
-1 5 2
-154
-1 7 2
BA
O
240
258
250
237
248
248
(Housing assistance):
(Appropriation, current).................... 604 BA
165
166
181
Total, offsetting collections..............
Total Research and technology (net)
O
_ *
5
7
6
(5)
(7)
(6)
267
1
124
15
50
(1)
(15)
(50)
100
8
18
(8)
(18)
'1,250
'152
'0 5 2 )
40..
8
50
16
(8)
(16)
10 ..
1
F H
air ousing and E
qual Opportunity
Federal funds
General and Special Funds:
Fair housing activities:
Appropriation, current...................... 751 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
M
anagem and Adm
ent
inistration
Federal funds
General and Special Funds:
Salaries and expenses, Including transfer of funds
(Community development):
(Appropriation, current).................... 451 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)..........................................
O
Salaries and expenses, Including
transfer of funds (gross) .............
Total, offsetting collections..............
Total (Community development)
(net)..............................................
86
94
77
72
BA
O
74
67
359
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Housing and Urban Development—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
0
Salaries and expenses, Including
transfer of funds (gross) .............
BA
BA
299
458
332
510
715
761
758
-291
-299
-332
165
165
166
159
181
178
49
48
46
67
63
291
457
0
Total, offsetting collections..............
714
BA
0
Total Salaries and expenses, Includ
ing transfer of funds....................
453
464
497
36
36
37
11
45
10
45
47
45
46
45
48
48
-1 1
-1 0
-1 1
36
34
36
35
37
37
11
BA
0
Total, offsetting collections..............
Total Office of Inspector General
(net)..............................................
13
18
BA
0
3
*
11
13
18
18
Working capital fund:
Spending authority from offsetting
collections.................................... 451 BA
0
112
129
123
123
145
145
112
129
123
123
145
145
-1 1 2
-1 2 3
-1 4 5
492
522
511
490
551
543
26,768
25,480
26,259
26,159
28,042
28,319
J -2 9 6
j-3
J -6 1 3
J -11
7 -5 6 0
J -1 8
26,468
25,181
25,635
25,535
27,465
27,742
Total Office of federal housing enteiprise oversight.........................
Intragovemmental Funds:
BA
0
Office of federal housing enterprise oversight
Appropriation, current...................... 371 BA
Appropriation, permanent................
BA
0
Total, offsetting collections..............
Total Working capital fund (net).
BA
18
Office of inspector General:
Appropriation, current...................... 451 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Office of Inspector General (gross) .
*
11
48
BA
1995
estimate
0
Working capital fund (gross)...........
(Federal law enforcement activities):
(Appropriation, current).................... 751 BA
0
(Outlays)..........................................
1994
estimate
1993
actual
Account
Outlays.............................................
(Spending authority from offsetting
collections)...................................
(Outlays)..........................................
Total (Housing assistance) (net).....
1995
estimate
0
Total Federal funds Management
and Administration.......................
16..
BA
0
Sum ary
m
Federal funds:
(As shown in detail above)......................
BA
0
Deductions for offsetting receipts:
Proprietary receipts from the public.... 371 BAA)
Offsetting governmental receipts......... 371 BAA)
Total Department of Housing and
Urban Development ....................
BA
0
Department of the Interior
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
estimate
Federal funds
BA
O
Payments in lieu of taxes:
Appropriation, current...................... 806 BA
Outlays............................................
O
Outlays for grants to State and local
governments................................
O
Fire protection:
Appropriation, current...................... 302 BA
Spending authority from offsetting
collections....................................
BA
125
141
121
BA
O
124
125
122
141
120
121
-6
-5
-5
BA
O
118
120
117
136
115
116
113
75
117
112
121
139
Total Fire protection (net)................
638
697
717
39
672
30
690
30
742
677
672
728
690
747
742
-3 9
Total, offsetting collections..............
Total Management of public lands
and resources (net).....................
O
Total, offsetting collections..............
General and Special Funds:
BA
O
1995
estimate
Fire protection (gross).....................
Bureau of Land Management
Management of public lands and re
sources (gross) ............................
1994
estimate
Outlays.............................................
Land and M
inerals M
anagem
ent
Management of public lands and resources:
Appropriation, current...................... 302 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
1993
actual
Account
-3 0
-3 0
638
633
697
660
717
712
104
103
104
105
104
104
(103)
(105)
(104)
118
117
115
6
5
5
Emergency department of the interior firefighting fund:
Appropriation, current...................... 302 BA
Outlays.............................................
O
Central hazmat account:
Appropriation, current...................... 304 BA
Outlays.............................................
0
Land acquisition:
Appropriation, current...................... 302 BA
Outlays.............................................
O
Range improvements:
Appropriation, current...................... 302 BA
Outlays.............................................
O
Service charges, deposits, and forfeitures:
Appropriation, current...................... 302 BA
Outlays.............................................
O
Permanent operating funds:
Appropriation, permanent................ 302 BA
Outlays............................................
O
Miscellaneous permanent payment accounts
(General purpose fiscal assistance):
(Appropriation, permanent).............. 806 BA
(Outlays)..........................................
O
14
5
28
28
12
23
21
19
11
10
10
10
10
10
10
9
8
9
9
10
9
4
7
7
5
5
68
75
84
84
82
82
360
THE BUDGET FOR FISCAL YEAR 1995
Department of the Interior—Continued
(In millions of dollars)
1993
actual
ACCOUni
(Outlays for grants to State and
local governments)......................
Total Miscellaneous permanent pay
ment accounts.............................
1994
estimate
1995
estimate
1993
actual
(75)
BA
0
(84)
(82)
Spending authority from offsetting
collections....................................
Outlays.............................................
68
75
0
84
84
82
82
Oil spill research (gross).................
Intragovemmental Funds:
Working capital fund:
Spending authority from offsetting
collections.................................... 302 BA
0
Outlays............................................
18
15
17
17
18
18
BA
0
18
15
17
17
18
18
-1 8
-1 7
-1 8
Working capital fund (gross)...........
Total, offsetting collections..............
Total Working capital fund (net)......
BA
0
.....................
-3
Trust funds
Miscellaneous trust funds:
Appropriation, current...................... 302 BA
BA
Appropriation, permanent................
0
Outlays............................................
Total Miscellaneous trust funds ......
Total Federal funds Bureau of Land
Management................................
Total Trust funds Bureau of Land
Management................................
7
2
9
8
2
9
9
9
BA
0
8
2
9
9
9
9
9
BA
0
1,099
1,054
1,156
1,146
1,199
1,202
BA
0
9
9
9
9
9
9
Total Federal funds Minerals Man
agement Service .........................
Total Trust funds Minerals Manage
ment Service ...............................
1
5
2
6
2
7
BA
O
6
5
7
6
8
7
-1
General and Special Funds:
Royalty and Offshore minerals:
Appropriation, current...................... 302 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Royalty and Offshore minerals
(gross)..........................................
Total, offsetting collections..............
Total Royalty and Offshore minerals
(net)..............................................
BA
O
Mineral leasing and associated payments:
Appropriation, permanent.......... ..... 806 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
National forests fund, payment to states:
Appropriation, permanent................ 302 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Leases of lands acquired for flood control, navigation,
and allied puiposes:
Appropriation, permanent................ 302 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Trust funds
Oil spill research:
Appropriation, current...................... 302 BA
193
195
3
209
8
202
10
199
199
209
201
202
205
199
-3
BA
O
195
-8
-1 0
195
206
193
194
-2
5
4
5
4
6
6
BA
O
661
672
729
730
714
709
BA
O
5
4
5
4
6
6
112
112
112
*
*
*
111
108
112
(27)
(59)
(52)
112
111
112
108
112
112
-•
-*
112
111
112
108
112
112
188
190
167
1
193
154
197
d 43)
(129)
(163)
189
193
190
154
167
197
Office of Surface Mining Reclamation and Enforcement
Federal funds
General and Special Funds:
Regulation and technology:
Appropriation, current...................... 302 BA
Spending authority from offsetting
collections....................................
BA
O
Outlays.............................................
Outlays for grants to State and local
governments................................
O
Regulation and technology (gross) ..
Total Regulation and technology
(net)..............................................
Federal funds
-2
BA
O
BA
O
Total, offsetting collections..............
Minerals Management Service
1995
estimate
BA
O
Total, offsetting collections..............
Total Oil spill research (net)............
1994
estimate
BA
O
ndoned mine reclamation fund
Conservation and land management):
(Appropriation, current).................... 302 BA
(Spending authority from offsetting
collections)...................................
BA
O
(Outlays)...........................................
(Outlays for grants to State and
local governments)......................
O
Abandoned mine reclamation fund
(gross)..........................................
195
189
BA
O
Total, offsetting collections..............
463
463
531
531
515
515
Total (Conservation and land man
agement) (net).............................
(463)
(531)
(515)
2
2
2
2
2
2
Total Abandoned mine reclamation
fund..............................................
(2)
(2)
(2)
1
1
3
3
3
3
(1)
O)
(3)
5
5
6
Total Federal funds Office of Sur
face Mining Reclamation and En
forcement .....................................
Total Federal funds Land and Min
erals Management.......................
Total Trust funds Land and Minerals
Management................................
- 1 ......
BA
O
188
193
190
154
167
197
BA
O
188
193
190
154
167
197
BA
O
300
304
302
262
278
309
BA
O
2,060
2,030
2,187
2,137
2,192
2,220
BA
O
14
13
14
13
16
15
361
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of the Interior—Continued
(In millions of dollars)
1993
aMnal
actual
ACCOlint
1994
1995
Aotim
ota
estimate
actimota
estimate
W and Science
ater
Outlays............................................
Bureau of Reclamation
Lower Colorado River Basin devel
opment fund (gross)....................
Construction program (gross)..........
BA
O
BA
O
General investigations:
Appropriation, current...................... 301 BA
Outlays............................................
O
Emergency fund:
Appropriation, current...................... 301 BA
Outlays............................................
O
Operation and maintenance:
Appropriation, current...................... 301 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Operation and maintenance (gross)
BA
O
Total, offsetting collections..............
Total Operation and maintenance
(net).............................................
BA
O
260
293
BA
O
243
205
259
260
304
293
-1 1 5
-1 6 4
133
95
144
145
140
129
BA
O
ubllc Enterprise Funds:
Lower Colorado River Basin development fund:
Appropriation, current...................... 301 BA
Appropriation, permanent................
BA
Spending authority from offsetting
collections....................................
BA
47
270
H -
3
104
43
23
2
2
2
339
354
314
435
258
267
42
141
36
104
34
60
-6 3
-4 7
273
268
251
373
211
220
147
141
80
104
59
60
13
14
14
13
13
13
-4 2
-3 6
-3 4
BA
O
105
99
44
68
25
26
ntragovemmental Funds:
Working capital fund:
Spending authority from offsetting
collections.................................... 301 BA
Outlays............................................
O
279
286
327
309
326
326
279
286
327
309
326
326
-2 7 9
-3 2 7
-3 2 6
7
-1 7
*
O
4
(8)
4
14
(21 )
9
4
(11 )
7
O
(2 )
(7)
(6)
O
2
1 ......
0
2
1 ......
Total Lower Colorado River Basin
development fund (net)...............
-11 0
BA
O
Upper Colorado River Basin fund:
Appropriation, current...................... 301 BA
Appropriation, permanent................
BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Upper Colorado River Basin fund
(grass)..........................................
BA
O
Total, offsetting collections..............
1
1
3
1
1
1
275
283
284
11
295
39
307
42
326
285
295
322
307
326
326
-3 9
-4 2
275
284
283
267
284
283
54
54
54
55
54
54
45
36
45
45
-7
42
40
-7
45
29
-7
41
34
36
40
37
29
33
34
Total Upper Colorado River Basin
fund (net).....................................
Working capital fund (gross)...........
BA
O
Total, offsetting collections..............
Total Working capital fund (net)
Credit Accounts:
Bureau of reclamation loans program account
Appropriation, current...................... 301
Limitations on direct loan activity....
Outlays.............................................
Outlays for grants to State and local
governments................................
Loan program liquidating account:
Outlays............................................. 301
Loan program liquidating account
(gross)..........................................
BA
O
BA
Total, offsetting collections..............
BA
O
Miscellaneous permanent appropriations
(Other natural resources):
(Appropriation, permanent).............. 306 BA
(Outlays)..........................................
O
Total Miscellaneous permanent ap
propriations ..................................
63
449
" -1 6
h -1 3
-11
General administrative expenses:
Appropriation, current...................... 301 BA
Outlays............................................
O
Central Valley Project Restoration fund:
Appropriation, current...................... 301 BA
Outlavs ............................................
o
Colorado River dam fund, Boulder Canyon project:
Appropriation, current...................... 301 BA
Appropriation, permanent................
BA
Outlays............................................
O
Total Colorado River dam fund,
Boulder Canyon project ..............
66
354
211
-6 6
Total, offsetting collections..............
Total Construction program (net)....
267
*
*
*
*
*
*
*
*
Total Loan program liquidating ac
count (net) ...................................
-3
BA
O
Trust funds
Reclamation trust funds:
Appropriation, permanent................ 301 BA
Outlays.............................................
O
Total Federal funds Bureau of Rec
lamation .......................................
124
9
155
146
10
10
110
95
147
Total Trust funds Bureau of Rec
lamation .......................................
-3
-3
2
-3
-3
-2
18
25
43
47
29
32
BA
O
893
888
885
978
808
811
BA
O
18
25
43
47
29
32
*
*
1995
estimate
205
Total, offsetting collections..............
243
30
1994
estimate
0
Federal funds
General and Special Funds:
Construction program:
Appropriation, current...................... 301 BA
BA
Appropriation, permanent................
Spending authority from offsetting
BA
collections....................................
Outlays............................................
O
BA
Appropriation, current......................
Outlays............................................
O
1993
actual
ACCOUm
uu
362
THE BUDGET FOR FISCAL YEAR 1995
Department of the Interior—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
estimate
Central Utah Project
Federal funds
General and Special Funds:
Central Utah Project Completion Account
Appropriation, current...................... 301 BA
Outlays.............................................
0
Utah reclamation mitigation and conservation account:
Appropriation, current...................... 301 BA
BA
Appropriation, permanent ,
0
Outlays .
Total Utah reclamation mitigation
and conservation account...........
BA
0
Total Federal funds Central Utah
Project..........................................
BA
0
26
26
40
40
.....................
.....................
.....................
5
6
8
11
1
12
.....................
.....................
11
8
12
12
.....................
.....................
36
34
52
52
BA
O
5
187
6
171
13
172
Mines and minerals (gross).............
BA
O
180
187
175
171
163
172
-5
-6
-1 3
BA
O
174
182
169
165
149
159
Public Enterprise Funds:
Helium fund:
Spending authority from offsetting
collections.................................... 306 BA
Outlays.............................................
O
28
18
34
25
32
23
BA
O
28
18
34
25
32
23
-2 8
-3 4
-3 2
-1 0
-9
-9
Total, offsetting collections..............
Total Mines and minerals (net).......
Helium fund (gross).........................
Geological Survey
Total, offsetting collections..............
Federal funds
Total Helium fund (net)...................
585
584
279
903
301
856
304
862
903
885
856
888
888
-2 7 9
-301
-3 0 4
Total Trust funds Bureau of Mines ..
583
623
585
555
584
584
Total Federal funds Water and
Science........................................
581
2..
Surveys, investigations and research
BA
0
Total, offsetting collections..............
Total Surveys, investigations and re
search (net) .................................
BA
0
Operation and maintenance of quarters:
Appropriation, permanent................ 306 BA
Outlays.............................................
O
Intragovemmental Funds:
Working capital fund:
Spending authority from offsetting
collections.................................... 306 BA
Outlays.............................................
O
Working capital fund (gross)...........
Total, offsetting collections..............
Total Working capital fund (net)
BA
O
Total Trust funds Geological Suivey
Trust funds
Contributed funds:
Appropriation, permanent................ 306 BA
Outlays.............................................
O
Total Federal funds Bureau of
Mines..........................................
Total Trust funds Water and
Science........................................
1
1
BA
O
174
172
169
157
149
150
BA
O
2
1
1
1
1
1
BA
O
1,650
1,680
1,675
1,728
1,593
1,598
BA
O
20
26
44
48
30
33
531
26
483
541
79
623
72
569
74
603
(20)
(5)
A2
A2
A*
635
623
557
571
615
603
-7 9
-7 2
-7 4
557
545
485
499
541
530
110
74
35
1
74
2
115
-4
1
75
14
15
Fish and W
ildlife and Parks
15
12
14
17
14
15
United States Fish and Wildlife Service
-1 4
-1 4
-3
4
1
BA
O
583
620
585
559
BA
O
*
584
585
Federal funds
General and Special Funds:
Resource management:
Appropriation, current...................... 303 BA
Appropriation, permanent ...
BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Appropriation, current......................
BA
Outlays.............................................
O
*
Resource management (gross).......
*
Total, offsetting collections..............
BA
O
Federal funds
.......... 306 BA
BA
O
Bureau of Mines
1
1
14
17
15
Total Resource management (net) ..
General and Special Funds:
Mines and minerals:
Appropriation, current .
2
1
12
Trust funds
Contributed funds:
Appropriation, permanent................ 306 BA
Outlays .
Total Federal funds Geological Sur
vey ..............................................
BA
O
-1 5
BA
O
1995
estimate
collections....................................
.....................
.....................
General and Special Funds:
Surveys, investigations and research:
Appropriation, current...................... 306 BA
Appropriation, permanent .
BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
1994
estimate
1993
actual
Account
174
169
149
Construction:
Appropriation, current...................... 303 BA
Spending authority from offsetting
collections.......................................... BA
Outlays.....................................................O
Appropriation, current............................ BA
a
n
363
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of the Interior—Continued
(In millions of dollars)
1993
actual
Account
Outlays............................................
BA
0
Total Construction (net)...................
BA
0
Natural resource damage assessment and restoration
fund:
Appropriation, current...................... 303 BA
Appropriation, permanent................
BA
Spending authority from offsetting
collections....................................
BA
0
Outlays............................................
Natural resource damage assess
ment and restoration fund (gross)
BA
0
111
74
71
112
-1
Total, offsetting collections..............
1993
actual
Account
0
Construction (gross) ........................
1995
estimate
1994
estimate
37
74
-2
110
73
70
110
35
73
5
7
8
20
-1
Outlays for grants to State and local
governments................................
Total Cooperative endangered spe
cies conservation fund................
15
4
6
21
20
4
7
6
28
21
O
(4)
(7)
(8)
BA
O
86
84
29
27
31
28
12
6
18
12
6
18
14
6
20
(18)
(18)
(20)
18
18
18
18
20
20
2
1
2
2
2
2
172
157
198
178
180
180
(157)
(178)
(160)
225
231
208
216
226
220
(231)
(216)
(220)
2
1
2
2
2
2
1
1
1
1
1
1
BA
O
1,079
1,005
951
979
981
997
BA
O
229
233
211
219
229
223
National wildlife refuge fund:
Appropriation, current...................... 806 BA
Appropriation, permanent................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Total National wildlife refuge fund ...
BA
O
Operation and maintenance of quarters:
Appropriation, permanent................ 303 BA
Outlays............................................
O
Miscellaneous permanent appropriations:
Appropriation, permanent................ 303 BA
Outlays............................................
O
Outlays for grants to State and local
governments................................
O
Tri/sf funds
Sport fish restoration:
Appropriation, permanent................ 303 BA
Outlays............................................
O
Outlays for grants to State and local
governments................................
O
Contributed funds:
Appropriation, permanent................ 303 BA
Outlays............................................
O
African elephant conservation fund:
Appropriation, permanent................ 303 BA
Outlays.............................................
O
Total, offsetting collections..............
- 1 5 ...........................................
Total Natural resource damage as
sessment and restoration fund
(net)............................................. .......BA
0
5
-1 1
7
6
28
21
1
1
1
1
1
1
77
96
83
81
*4
86
84
A2
A2
87
83
86
85
1
1
1
1
1
2
(1)
(2)
2
1
2
2
42
36
41
41
41
41
9
1
12
*
14
*
Spending authority from offsetting
collections....................................
Outlays.............................................
7
11
7
19
8
21
Research, Inventories, and Surveys
(gross)..........................................
17
11
19
19
22
21
Total, offsetting collections..............
Rewards and operations:
Appropriation, current...................... 303 BA
Outlays............................................ ........ 0
Land acquisition:
Appropriation, current...................... 303 BA
Outlays.....................................................0
Appropriation, current.............................BA
Outlays............................................ ........0
Total Land acquisition ...............................BA
0
77
96
Wildlife conservation and appreciation fund:
Appropriation, current...................... 303 BA
Appropriation, permanent..........................BA
Outlays............................................ ..........0
Outlays for grants to State and local
governments..........................................0
Total Wildlife conservation and ap
preciation fund.......................................BA
0
Migratory bird conservation account
Appropriation, permanent................ 303 BA
Outlays............................................ ..........O
North American wetlands conservation fund:
Appropriation, current...................... 303 BA
Appropriation, permanent..........................BA
Spending authority from offsetting
collections..............................................BA
Outlays............................................ ..........O
North American wetlands conserva
tion fund (gross)..........................
BA
O
Total, offsetting collections..............
Total North American wetlands con
servation fund (net).....................
Total Trust funds United States Fish
and Wildlife Service ....................
National Biological Survey
Federal funds
-7
-7
-8
BA
O
10
4
12
11
14
13
Cooperative endangered species conservation fund:
Appropriation, current...................... 303 BA
Appropriation, permanent................
BA
Outlays............................................
O
7
80
84
9
20
27
11
20
28
Totai Federal funds United States
Fish and Wildlife Service............
1995
estimate
1994
estimate
General and Special Funds:
Research, inventories, and Surveys:
BA
Total Research, inventories, and
Surveys (net)...............................
Operation and maintenance of quarters:
Appropriation, permanent...............
Outlays............................................
Total Federal funds National Biologi
cal Survey....................................
..............
167
177
BA
O
..............
..............
32
97
32
185
BA
O
..............
..............
199
97
209
185
-3 2
-3 2
BA
O
..............
..............
167
65
177
152
BA
O
..............
..............
*
*
*
BA
O
..............
..............
167
65
177
152
364
THE BUDGET FOR FISCAL YEAR 1995
Department of the Interior—Continued
(In millions of dollars)
1993
actual
Account
1994
1995
estimate
Federal funds
General and Special Funds:
Operation of the national park sys
tem (gross)..................................
BA
Total Operation of the national park
system (net).................................
BA
National recreation and preservation:
Appropriation, current...................... 303 BA
Outlays.................................................... 0
Construction:
Appropriation, current...................... 303 BA
Spending authority from offsetting
collections.......................................... BA
Outlays.................................................... 0
Appropriation, current............................ BA
BA
0
Total, offsetting collections .
Total Construction (net).....
BA
0
John F. Kennedy Center for the Performing Arts:
Appropriation, current...................... 303 BA
Outlays .
.........
0
..........
BA
Appropriation, current
Outlays......................
........
0
Total John F. Kennedy Center for
the Performing Arts.....................
BA
0
Urban park and recreation fund:
Appropriation, current...................... 303 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Illinois and Michigan canal national heritage-corridor
Commission:
Appropriation, current...................... 303 BA
Outlays.............................................
O
National park system visitor facilities fund:
Outlays............................................. 303 O
Land acquisition and state assistance:
Appropriation, current...................... 303 BA
Contract authority, current.
BA
Contract authority, permanent.........
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
BA
Appropriation, current......................
Total Land acquisition and state as
sistance ........................................
BA
O
Historic preservation fund:
Appropriation, current...................... 303 BA
1,087
1,127
4
1,022
4
1,016
4
1,121
J2
J2
988
1,022
1,091
1,016
1,133
1,123
-4
-4
' -2
37
40
41
(37)
(40)
(41)
Total Historic preservation fund...... ..........BA
O
42
37
40
40
42
41
10
10
11
11
11
11
14
11
16
16
b5
*4
14
11
21
19
1
1
1
1
Operation and maintenance of quarters:
Appropriation, permanent................ 303 BA
Outlays....................................................... O
Fee collection support, national park system:
Appropriation, permanent................ 303 BA
Outlays....................................................... O
Appropriation, permanent.......................... BA
Outlays....................................................... O
Total Fee collection support, na
tional park system.......................
984
1,018
1,087
1,012
1,127
1,117
24
22
43
40
40
41
225
202
149
66
324
66
338
a 13
66
301
291
324
281
338
215
301
-6 6
0
Construction (gross)
984
-4
0
Total, offsetting collections .
1995
estimate
Appropriation, permanent.......................... BA
Outlays....................................................... O
Outlays for grants to State and local
governments.......................................... O
National Park Service
Operation of the national park system:
Appropriation, current...................... 303 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
1994
estimate
1993
actual
Account
-6 6
-6 6
225
257
215
272
149
235
Total Trust funds National Park
Sendee.........................................
21
12
21
21
19
22
'- 1 9
'- 2 2
Total Federal funds Fish and Wild
life and Parks..............................
21
12
Miscellaneous permanent appropriations:
Appropriation, permanent................ 303 BA
Outlays.............................................
O
Outlays for grants to State and local
O
governments................................
Trust funds
Construction (trust fund):
Outlays............................................. 401 O
Miscellaneous trust funds:
Appropriation, permanent................ 303 BA
Outlays.............................................
O
Total Federal funds National Park
Sendee.........................................
Total Trust funds Fish and Wildlife
and Parks....................................
21
21.....
7
5
10
(10)
(6)
*
*
*
*
118
95
1
1
0
0
0
25
24
18
10
9
10
10
9
9
BA
O
1,425
1,488
1,533
1,535
1,480
1,578
BA
O
10
34
10
35
9
27
2,651
2,579
2,638
2,728
BA
O
2,504.
2,493
BA
O
238
267
221
254
238
250
138
150
150
t
138
t
146
*
150
138
138
150
146
150
150
-*
_*
138
138
150
146
150
150
771
846
838
2
859
2
787
2
837
Indian Affairs
5
6
(7)
BA
O
Bureau of Indian Affairs
Federal funds
General and Special Funds:
Operation of Indian programs
(Conservation and land management):
(Appropriation, current).................... 302 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)...........................................
O
83
-3 0
30
106
Operation of Indian programs
(gross)..........................................
Total, offsetting collections..............
123
118
(24)
(48)
*1
(36)
118
123
97
118
83
106
42
40
42
BA
O
Total (Conservation and land man
agement) (net).............................
BA
O
(Area and regional development):
(Appropriation, current).................... 452 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)...........................................
O
365
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of the Interior—Continued
(In millions of dollars)
1993
1994
actual
(Outlays for grants to State and
local governments)......................
Operation of Indian programs
(gross)..........................................
(Outlays)...........................................
(81)
(91)
BA
0
911
998
998
933
990
987
-2
-2
-2
771
858
846
785
838
835
BA
0
Total, offsetting collections..............
Total (Elementaiy, secondary, and
vocational education) (net)..........
Total Operation of Indian programs .
85
490
92
512
93
550
(43)
(52)
(60)
1,449
1,486
1,584
1,443
1,594
1,535
-9 2
-9 3
Revolving fund for loans liquidating
account (gross)............................
BA
O
1,364
1,401
1,492
1,351
1,501
1,442
150
167
83
10
124
10
94
a 12
5
115
159
124
189
94
88
115
-1 0
-1 0
-5
Indian loan guaranty and insurance
fund liquidating account (gross)...
150
114
179
84
83
110
7
7
8
8
8
8
Total Indian loan guaranty and in
surance fund liquidating account
(net)..............................................
39
36
103
97
174
136
4
4
2
2
77
77
85
85
26
26
2
1
2
2
2
2
Total Miscellaneous trust funds
6
6
6
6
6
6
Total Federal funds Bureau of In
dian Affairs ..................................
74
75
68
97
69
66
Total Trust funds Bureau of Indian
Affairs...........................................
*
*
*
BA
O
estimate
BA
O
74
75
BA
O
2
(11)
3
2
(11).....
3
O
(2)
(2).....
BA
O
-4
*
10
*
9
*
BA
O
-4
*
10
*
9
*
-1 8
-1 0
-9
-2 2
-1 8
-1 0
-9
10
10
10
(69)
4
(69)
10
(47)
10
(4)
(10)
(10)
11
11
11
1
6
1
8
1
8
12
6
12
8
12
8
BA
O
Total, offsetting collections..............
BA
O
1995
estimate
0
Indian guaranteed loan program account
Appropriation, current...................... 452 BA
Limitation on loan guarantee com
mitments ......................................
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Indian loan guaranty and insurance fund liquidating ac
count
Appropriation, permanent................ 452 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
513
457
1994
actual
Total, offsetting collections..............
Total Revolving fund for loans liq
uidating account (net) .................
496
420
White Earth settlement fund:
Appropriation, permanent................ 452 BA
Outlays.............................................
O
Indian land and water claim settlements and mis
cellaneous payments to Indians:
Appropriation, current...................... 452 BA
Outlays............................................
O
Payment to the Navajo Rehabilitation Trust Fund:
Appropriation, current...................... 452 BA
Outlays............................................
O
Payment to Tribal Economic Recovery Funds:
Appropriation, permanent................ 452 BA
Outlays............................................
O
Technical assistance of Indian enterprises:
Appropriation, current...................... 452 BA
Outlays.............................................
O
Operation and maintenance of quarters:
Appropriation, permanent................ 452 BA
Outlays............................................
O
Miscellaneous permanent appropriations
(Area and regional development):
(Appropriation, permanent).............. 452 BA
(Outlays)..........................................
O
(Other general government):
(Appropriation, permanent).............. 808 BA
513
Credit Accounts:
Indian direct loan program account:
Appropriation, current...................... 452
Limitations on direct loan activity ,,.
Outlays.............................................
Outlays for grants to State and local
governments................................
Revolving fund for loans liquidating account:
Spending authority from offsetting
collections.................................... 452
Outlays.............................................
455
405
Total, offsetting collections..............
Total Construction (net)...................
496
Total Miscellaneous permanent ap
propriations ..................................
BA
O
struction:
Appropriation, current...................... 452 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Appropriation, current......................
BA
Construction (gross) ........................
455
-8 5
BA
O
1993
Accoum
(66)
Elementary, secondary, and vocational
education):
(Appropriation, current).................... 501 BA
(Spending authority from offsetting
BA
collections)...................................
0
(Outlays)..........................................
(Outlays for grants to State and
local governments)......................
0
Operation of Indian programs
(gross)..........................................
A/wM.nt
estimate
0
Total, offsetting collections..............
Total (Area and regional develop
ment) (net)...................................
1995
estimate
BA
O
-1
BA
O
68
97
-1
69
68
-1
11
5
11
7
11
7
2
*
1
13
1
6
324
287
311
311
355
351
BA
O
324
287
311
311
355
351
BA
O
1,722
1,714
1,969
1,742
1,889
1,805
BA
O
325
287
312
325
355
356
Trust funds
Cooperative fund (papago):
Appropriation, permanent................ 452 BA
Outlays.............................................
O
Miscellaneous trust funds
(Area and regional development):
(Appropriation, permanent).............. 452 BA
(Outlays)...........................................
O
366
THE BUDGET FOR FISCAL YEAR 1995
Department of the Interior—Continued
(in millions of dollars)
1994
1993
actual
Account
1995
Total Salaries and expenses (net) ...
Territorial and International Affairs
Administration of territories (gross) ..
BA
0
Total Administration of territories
(net)..............................................
BA
0
Trust Territory of the Pacific Islands:
Appropriation, current...................... 808 BA
Outlays.........................................
0
Outlays for grants to State and local
governments................................
0
Compact of free association:
Appropriation, current...................... 808 BA
Appropriation, permanent................
BA
Outlays.............................................
0
Appropriation, current......................
BA
Outlays.............................................
0
Total Compact of free association ...
BA
0
Micronesian claims fund, Trust Territory of the Pacific
Islands:
Outlays............................................. 808 0
Payments to the United States territories, fiscal assist
ance:
Appropriation, permanent................ 806 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Guam Power Liquidating Account
Appropriation, permanent................ 808 BA
Outlays.............................................
O
Total Federal funds Territorial and
International Affairs .....................
82
79
1
27
2
63
2
74
(26)
(61)
(72)
/-1 0
'- 1 0
BA
O
63
65
Construction management (gross) ...
84
63
-2
81
26
Total Construction management
(net)..............................................
-2
82
61
69
63
23
26
24
24
1
3
(26)
(24)
(3)
20
141
160
22
302
324
A -2
A -2
28
145
174
161
160
322
322
174
174
*
*
*
97
97
83
83
85
85
(97)
(83)
Oil spill emergency fund:
Spending authority from offsetting
collections....................................
Outlays.............................................
Appropriation, current......................
Outlays.............................................
(85)
Oil spill emergency fund (gross).....
Intragovemmental Funds:
Working capital fund:
Spending authority from offsetting
collections....................................
Outlays.............................................
Working capital fund (gross)...........
371
317
512
490
328
324
Total Federal funds Office of the
Secretary......................................
Total Trust funds Office of the Sec
retary ............................................
D
epartm
ental Offices
2
1
3
1
3
2
3
BA
O
3
3
3
3
-*
-1
BA
O
2
2
; BA
O
BA
O
7
1
BA
O
7
1
-1
2
2
2
2
*
*
A — *
A —*
_*
*
-*
- 7 ...........................................
_ *
*
-6
-*
BA
O
; BA
O
84
82
95
95
133
133
BA
O
84
82
95
95
133
133
-8 4
-9 5
-1 3 3
BA
O
.............................................................
- 2 .....
funds
Take pride in America, gifts and bequests:
Appropriation, permanent................
Outlays.............................................
8
8 .....
2
3
Total, offsetting collections..............
Total Working capital fund (net)......
63
63
*
Total, offsetting collections..............
Total Oil spill emergency fund (net)
64
57
*
Total, offsetting collections..............
71
65
1995
estimate
2
Office of the Secretary (special foreign currency pro
gram):
Outlays.............................................
0
Construction management:
BA
Appropriation, current......................
Spending authority from offsetting
BA
collections....................................
O
Outlays.............................................
'( - 1 0 )
82
27
-t
Total, offsetting collections..............
BA
O
81
1994
-8 4
Total, offsetting collections..............
Territorial and International Affairs
Federal funds
General and Special Funds:
Administration of territories:
Appropriation, current...................... 808 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Outlays for grants to State and local
governments................................
0
Appropriation, current......................
BA
Outlays.............................................
0
Outlays for grants to State and local
governments................................
0
1993
actual
Account
; BA
0
*
*
*
♦
*
BA
O
65
60
66
59
65
65
*
*
*
*
*
31
33
35
*
32
*
32
1
36
32
32
34
32
36
36
BA
O
Office of the Secretary
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 306 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Salaries and expenses (gross)
BA
O
Office of the Solicitor
63
64
63
84
148
98
155
98
161
147
148
162
155
161
161
Federal funds
General and Special Funds:
Office of the Solicitor:
Appropriation, current...................... 306 BA
Spending authority from offsetting
BA
collections....................................
O
Outlays.............................................
Office of the Solicitor (gross)..........
BA
O
367
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of the Interior—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
estimate
Total, offsetting collections.........
31
32
0
33
32
35
Federal funds
General and Special Funds:
Office of Inspector General:
Appropriation, current...................... 306 BA
Spending authority from offsetting
BA
collections....................................
0
Outlays............................................
24
24
24
*
25
1
24
*
24
BA
0
24
25
25
24
24
24
Office of Inspector General (gross) .
-*
Total, offsetting collections..............
Total Office of Inspector General
(net)..............................................
Federal funds:
(As shown in detail above)..................
BA
0
-1
24
25
24
24
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 806 BA
Spending authority from offsetting
BA
collections....................................
0
Outlays.............................................
2
Total Trust funds .........................
BA
Salaries and expenses (gross) .....
4
2
0
Total, offsetting collections............
BA
BA
2
3
125
117
J -8 0
j*
J -3 8
J -2 7 6
J -1 ,2 2 8
J —88
j —*
j-7 1
J -21
j - *
J -1 5
J -2 0
J -9 1
J -5 0
J -1 9 3
J - 1,263
J -1 3 5
j - *
J -5 3
j -17
j - *
7 -1 6
J -2 0
J -2 6
J -6 3
J -1 9 9
J -1,315
J - 202
7- *
J -5 3
J - 16
j —•
6,627
6,549
7,280
6,955
6,856
6,891
598
592
592
640
639
655
301
302
303
306
452
908
-18
J-9
j -2
J-2
J -2 2 4
J — 79
/-43
J-9
J-2
j -1
J -219
J -47
J -29
J-9
J-2
J-1
J-243
J -47
264
258
270
319
307
323
J-1
j ~ *
j -10
J-1
j-4
J -3 0
J-1
J -23
J -30
6,880
6,796
7,515
7,240
7,109
7,161
BA/O
BA/O
BA/O
BA/O
BA/O
BA/O
BA/O
BA/O
BA/O
BA/O
BA/O
BA/O
BA/O
BA/O
BA/O
BA/O
BA/O
j
BA
O
303 BA/O
452 BA/O
808 BA/O
126
127
*
Total Trust funds Departmental Of-
1
2
122
116
BA
0
Interfund transactions ...............................
-3
2
*
0
Total Federal funds Departmental
Offices..........................................
4
6
-3
-2
Total Salaries and expenses (net).
4
5
8,766
8,802
BA
O
Trust funds:
(As shown in detail above)..................
Deductions for offsetting receipts:
Proprietary receipts from the public .
National Indian Gaming Commission
9,118
8,794
BA
O
301
303
452
908
Proprietary receipts from the public ,.... 301
302
303
306
452
908
Offsetting governmental receipts......... 302
Total Federal funds.....................
24
24
1995
estimate
8,429
8,351
BA
0
Deductions for offsetting receipts:
Intrafund transactions.......................
Office of Inspector General
1994
estimate
Sum ary
m
-1
BA
Total Office of the Solicitor (net)
1993
actual
Account
*
*
0
Total Department of the Interior...
BA
O
*
Department of Justice
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
G
eneral Adm
inistration
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 751 BA
Reappropnation................................
BA
BA
Advance appropriation.....................
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Salaries and expenses (gross) .......
Total, offsetting collections..............
Total Salaries and expenses (net) ...
BA
O
112
3
119
31
136
30
158
30
154
146
136
149
158
152
154
-3 1
BA
O
1993
actual
Account
-3 0
-3 0
115
105
119
128
122
124
122
*
Office of the Inspector General:
Appropriation, current ...................... 751 BA
Reappropriation................................
BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Office of the Inspector General
(gross)..........................................
BA
O
Total, offsetting collections..............
Total Office of the Inspector General
(net)..............................................
1994
estimate
1995
estimate
30
1
30
31
8
39
9
38
9
39
39
39
39
38
39
39
-8
-9
-9
BA
O
31
30
30
29
31
31
Weed and seed program fund:
Appropriation, current...................... 751 BA
13
13
13
368
THE BUDGET FOR FISCAL YEAR 1995
Department of Justice—Continued
(In millions of dollars)
1993
actual
Account
0
Outlays............................................
Outlays for grants to State and local
governments................................
0
Quantico training center
Appropriation, current...................... 751 BA
Outlays............................................
0
Emergency drug funding:
Outlays............................................. 751 0
1994
estimate
12
(12)
1995
estimate
10
(9)
13
(13)
Working capital fund (gross)...........
BA
0
Total Working capital fund (net)......
BA
0
Total Federal funds General Admin
istration ........................................
395
407
443
540
468
468
Salaries and expenses, United
States Attorneys (gross).............
491
407
443
540
468
468
BA
0
-4 6 8
-4 4 3
96...........................................
97......
12
262
160
162
265
166
171
U
nited States Parole Commission
Federal funds
Total Salaries and expenses...........
BA
0
9
1..
9
10
9
9
10
Total Salaries and expenses, For
eign Claims Settlement Commis
sion (net) .....................................
General and Special Funds:
394
2
407
433
82
482
80
477
80
507
478
482
487
477
513
507
-8 2
BA
O
Salaries and expenses, Antitrust Division:
Appropriation, current...................... 752 BA
BA
Reappropriation................................
Spending authority from offsetting
BA
collections....................................
O
Outlays.............................................
Salaries and expenses, Antitrust Di
vision (gross)...............................
759
15
22
818
830
82
810
82
905
80
895
879
810
901
905
910
895
-8 2
-8 2
-8 0
797
728
818
823
830
815
1
1
1
*
1
1
1
BA
O
1
1
1
1
1
1
BA
1
1
1
1
1
1
333
4
1,
341
366
20
334
20
388
29
400
358
334
361
388
395
400
-2 0
-2 0
-2 9
338
314
341
368
366
370
241
28.......
313
370
2
270
230
337
271
270
313
230
370
337
BA
O
BA
O
-8 0
-8 0
397
401
407
397
433
427
44
1
46
42
18
62
25
72
33
74
64
62
71
72
75
74
Salaries and expenses, United States Marshals Serv
ice:
Appropriation, current...................... 752 BA
Reappropriation .
BA
Appropriation, permanent................
BA
Spending authority from offsetting
BA
collections....................................
O
Outlays.............................................
Salaries and expenses, United
States Marshals Service (gross)..
BA
O
Total, offsetting collections..............
BA
O
Total, offsetting collections..............
Total Salaries and expenses, Gen
eral Legal Activities (net)............
42
40
O
Federal funds
Salaries and expenses, General
Legal Activities (gross)................
50
51
Total, offsetting collections..............
Legal Activities
Salaries and expenses, General Legal Activities:
Appropriation, current...................... 752 BA
BA
Reappropriation................................
Spending authority from offsetting
collections....................................
BA
O
Outlays.............................................
42
40
BA
O
Salaries and expenses, Foreign Claims Settlement
Commission:
Appropriation, current...................... 153 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Salaries and expenses, Foreign
Claims Settlement Commission
(gross)..........................................
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 751 BA
Reappropriation................................
BA
Outlays.............................................
0
-3 3
Total, offsetting collections..............
Total Salaries and expenses, United
States Attorneys (net) .................
BA
O
1995
estimate
-21
Salaries and expenses, United States Attorneys:
Appropriation, current...................... 752 BA
Reappropriation................................
BA
BA
Appropriation, permanent................
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
96..
-3 9 5
Total, offsetting collections..............
Total Salaries and expenses, Anti
trust Division (net).......................
1994
-2 2
Total, offsetting collections .
8..
Intragovemmental Funds:
Working capital fund:
Appropriation, current...................... 751 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
1993
actual
Account
Total Salaries and expenses, United
States Marshals Service (net)....
BA
O
Support of United States prisoners:
Appropriation, current...................... 752 BA
Appropriation, permanent .
BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
, ,,
Support of United States prisoners
BA
O
Total, offsetting collections..............
Total Support of United States pris
oners (net)...................................
- 2 ............................................
BA
O
Fees and expenses of witnesses:
Appropriation, current...................... 752 BA
268
267
313
230
370
337
77
98
78
369
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Justice—Continued
(In millions of dollars)
1993
'tuo,
actual
Account
Outlays............................................
0
Salaries and expenses, Community Relations Service:
Appropriation, current...................... 752 BA
Reappropriation................................
BA
Spending authority from offsetting
BA
collections....................................
Outlays............................................
O
Salaries and expenses, Community
Relations Service (gross)............
BA
O
BA
O
BA
O
United States trustee system fund:
Appropriation, current...................... 752 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
United States trustee system fund
(gross) ..........................................
BA
O
Assets forfeiture fund:
Appropriation, current...................... 752 BA
Appropriation, permanent................
BA
Outlays............................................
O
Outlays for grants to State and local
governments................................
O
Outlays.............................................
27
26
20
* ...........................................
Total Federal funds Radiation Expo
sure Compensation .....................
120
4
23
3
32
3
24
31
23
29
32
-3
-3
27
19
26
29
20
21
*
*
1995
estimate
O
59
43
30
BA
O
173
172
3
3
3
3
BA
O
171
59
43
30
382
376
370
403
12
12
5
5
3
3
500
500
100
100
5
130
98
80
80
80
83
500
500
100
100
5
5
1,876
12
2
1,962
2,058
57
62
66
36
98
37
99
41
104
364
2,241
288
2,201
252
2,166
93
98
99
99
107
104
2,383
2,338
2,330
2,280
2,391
2,249
-3 7
-4 1
-3 6 4
-2 8 8
-2 5 2
57
62
62
61
66
63
BA
O
1,889
1,877
1,962
1,913
2,058
1,914
BA
O
2,019
1,975
2,042
1,993
2,139
1,997
53
432
371
55
521
771
55
432
516
BA
O
2,019
1,975
2,042
1,993
2,139
1,997
(193)
(225)
730
7
5
737
724
190
972
187
808
187
852
932
972
924
808
911
852
-1 9 0
-1 8 7
-1 8 7
BA
O
742
783
737
621
724
665
Diversion control fee account:
Appropriation, permanent................ 751 BA
12
57
58
Total Trust funds Radiation Expo
sure Compensation.....................
interagency Law Enforcem
ent
Federal funds
General and Special Funds:
Organized crime drug enforcement:
Appropriation, current...................... 751 BA
Outlays.............................................
O
*
(220)
5
BA
O
486
371
576
771
487
516
Total Federal funds Legal Activities .
BA
O
3,002
2,786
2,796
2,957
2,701
2,688
R
adiation Exposure Compensation
Federal funds
General and Special Funds:
Administrative expenses:
Appropriation, current...................... 054 BA
Outlays............................................
0
Payment to radiation exposure compensation trust
fund:
Appropriation, current...................... 054 BA
Outlays............................................
O
Trust funds
Radiation exposure compensation trust fund:
Appropriation, permanent................ 054 BA
1994
estimate
23
24
Total Assets forfeiture fund.............
1993
actual
3
1
3
3
3
3
171...........................................
171...........................................
171...........................................
385
463
Federal Bureau of Investigation
Federal funds
General and Special Funds:
Salaries and expenses
(Defense-related activities):
(Appropriation, current).................... 054 BA
(Outlays)...........................................
O
(Federal law enforcement activities):
(Appropriation, current).................... 751 BA
(Reappropriation) .............................
BA
(Appropriation, permanent)..............
BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)...........................................
O
Salaries and expenses (gross) .......
BA
O
Total, offsetting collections..............
Total United States trustee system
fund (net).....................................
_____ _
Account
-3 6
Payment of Vietnam and U.S.S. Pueblo prisoner of
war claims:
Outlays............................................. 153 O
Independent counsel:
Appropriation, permanent................ 752 BA
Outlays............................................
O
Civil liberties public education fund:
Appropriation, current...................... 808 BA
Advance appropriation.....................
BA
Outlays............................................
O
Total Civil liberties public education
fund.............................................
1995
estimate
90
71
-4
Total, offsetting collections..............
Total Salaries and expenses, Com
munity Relations Seivice (net)....
1994
JSZL
estimate
BA
O
Total, offsetting collections..............
Total (Federal law enforcement ac
tivities) (net).................................
Total Salaries and expenses...........
Total Federal funds Federal Bureau
of Investigation ............................
D Enforcem Adm
rug
ent
inistration
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 751 BA
Reappropriation................................
BA
Appropriation, permanent................
BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Salaries and expenses (gross)
BA
O
Total, offsetting collections..............
Total Salaries and expenses (net) ...
370
THE BUDGET FOR FISCAL YEAR 1995
Department of Justice—Continued
(In millions of dollars)
1993
actual
Account
BA
0
754
792
54
Outlays for grants to State and local
governments................................
794
670
782
720
National Institute of Corrections
(gross) ..........................................
Total National Institute of Correc
tions (net) ....................................
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 751 BA
Spending authority from offsetting
BA
collections....................................
O
Outlays.............................................
978
1,051
1,149
573
1,589
636
1,709
701
1,768
BA
O
1,551
1,589
1,688
1,709
1,851
1,768
-5 7 3
-6 3 6
-701
978
1,016
1,051
1,073
1,149
1,067
Total, offsetting collections..............
Total Salaries and expenses (net)...
Immigration emergency fund:
Appropriation, current......................
Immigration legalization:
Appropriation, permanent................
Outlays.............................................
Immigration user fee:
Appropriation, permanent................
Outlays.............................................
Land border inspection fee:
Appropriation, permanent................
Outlays.............................................
Breached Bond/Detention Fund:
Appropriation, permanent................
Outlays.............................................
Immigration examinations fee:
Appropriation, permanent................
Outlays.............................................
Total Federal funds Immigration and
Naturalization Service .................
BA
O
7
7
4
4
3
3
751 BA
0
224
224
296
296
325
325
751 BA
0
*
*
2
2
2
2
751 BA
0
10
10
6
6
6
6
751 BA
0
294
294
322
322
353
353
BA
0
1,514
1,551
1,687
1,703
1,839
1,756
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 753 BA
BA
Reappropriation .
Spending authority from offsetting
BA
collections....................................
0
Outlays.............................................
BA
O
11
12
11
7
11
9
-1
Total, offsetting collections..............
BA
0
National Institute of Corrections:
Appropriation, current...................... 754 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
15
1,718
15
194
449
270
604
191
589
443
497
522
(2)
422
(3)
(3)
497
522
443
422
497
497
522
522
-4 4 3
-4 9 7
-5 2 2
98
91
125
125
145
145
98
91
125
125
145
145
-9 8
-1 2 5
-1 4 5
2,230
2,488
2,608
2,864
817
680
365
25
675
28
874
25
605
(545)
(714)
(489)
842
675
707
874
390
605
-2 5
-2 8
-2 5
817
650
680
846
365
580
Intragovemmental Funds:
Federal Prison Industries, Incorporated:
Spending authority from offsetting
collections.................................... 753 BA
Limitation on administrative ex
penses .........................................
Outlays.............................................
O
Federal Prison Industries, Incor
porated (gross)............................
Total Federal Prison Industries, In
corporated (net)...........................
BA
O
1,965
1,893
2,423
2,283
-1 5
-1 6
1,743
1,702
1,950
1,878
2,407
2,267
BA
O
-2 1 ..
Trust funds
Commissary funds, Federal prisons (trust revolving
fund):
Spending authority from offsetting
collections.................................... 753 BA
Outlays.............................................
O
Commissary funds, Federal prisons
(trust revolving fund) (gross).......
BA
O
Total, offsetting collections..............
Total Commissary funds, Federal
prisons (trust revolving fund) (net)
16
2,283
1,759
1,718
-1
Buildings and facilities:
Appropriation, current...................... 753 BA
Outlays.............................................
O
2,407
1,691
52..
-1
10
9
Total Trust funds Federal Prison
System.........................................
1,950
-1 5
BA
0
(1)
10
6
Federal funds
Total Salaries and expenses (net)...
(1)
10
12
Total Federal funds Federal Prison
System.........................................
Federal Prison System
Salaries and expenses (gross) .......
(1)
Total, offsetting collections..............
751 BA
0
1995
estimate
BA
O
6 ................
751 BA
1994
estimate
O
Total, offsetting collections..............
Im igration and N
m
aturalization Service
Salaries and expenses (gross).......
1993
actual
Account
49
Outlays.............................................
Total Federal funds Drug Enforce
ment Administration.....................
1995
1994
BA
O
BA
O
-7 ..
1,948
2,143
BA
O
- 7 ..
Office of Justice Program
s
Federal funds
General and Special Funds:
Justice assistance:
Appropriation, current...................... 754 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
10
10
10
Justice assistance (gross)...............
1
12
1
7
1
9
Total, offsetting collections..............
Total Justice assistance (net) .........
BA
O
BA
O
371
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Justice—Continued
(In millions of dollars)
1993
actual
Account
Public safety officers’ benefits:
Appropriation, current...................... 754 BA
0
Outlays............................................
Crime victims fund:
Appropriation, permanent................ 754 BA
Outlays............................................
0
Outlays for grants to State and local
governments................................
0
Total Federal funds Office of Justice
Programs ....................................
1994
estimate
1995
estimate
29
24
31
32
30
30
150
136
139
118
160
151
(125)
(114)
(146)
996
810
849
996
555
760
BA
O
11,063
10,859
10,954
11,460
13,593
12,069
'- 3 0
J -5 4 2
j -18
J -6 5 3
'-1 9
J -7 2 2
BA
O
10,491
10,288
10,284
10,789
12,852
11,328
BA
O
171
53
43
30
J -15
J-15
10,269
10,817
12,837
11,343
Deductions for offsetting receipts:
Intrafund transactions.................... ..... 908 BA/O
Offsetting governmental receipts ......... 751 BA/O
Trust funds:
(As shown in detail above)...............
C eC
rim ontrol
Federal funds
Interfund transactions ............................ ...... 054 BA/O
751 BA/O
General and Special Funds:
Crime control fund:
Appropriation, current...................... 754 BA
Outlays............................................
0
Outlays for grants to State and local
governments................................
0
'2,423
'698
1995
estimate
Sum ary
m
Federal funds:
(As shown in detail above)...............
Total Federal funds..................
BA
0
1994
estimate
1993
actual
Account
Total Department of Justice
BA
O
' -171
10,491
10,170
'(402)
Department of Labor
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
estimate
Em
ploym and Training Adm
ent
inistration
Federal funds
General and Special Funds:
Program administration:
Appropriation, current...................... 504 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Program administration (gross).......
Total, offsetting collections..............
Total Program administration (net) ..
BA
O
Training and employment services:
Appropriation, current...................... 504 BA
Appropriation, permanent................
BA
Advance appropriation.....................
BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Outlays for grants to State and local
governments................................
O
Appropriation, current......................
BA
Outlays............................................
O
Outlays for grants to State and local
governments................................
O
Training and employment services
(gross) ..........................................
BA
O
92
94
57
133
48
128
48
137
133
133
140
128
142
137
-5 7
BA
O
76
-4 8
92
80
94
89
4,396
30
188
5,014
5,684
180
4,421
4
4,540
4
4,811
(3,245)
(3,467)
(3,709)
'150
'8
y(7)
5,018
4,540
5,838
4,818
-1 8 0
-4
-4
BA
O
4,614
4,241
5,014
4,536
5,834
4,814
Community service employment for older Americans:
Appropriation, current...................... 504 BA
Outlays............................................
O
Outlays for grants to State and local
governments................................
O
396
389
410
386
396
406
(84)
(85)
(89)
Total Training and employment
services (net)...............................
Federal unemployment benefits and
allowances (gross) ......................
BA
O
80
77
76
78
101
91
O
(77)
(78)
(91)
BA
131
114
173
BA
O
34
88
80
194
40
213
BA
O
245
165
270
272
314
304
-3 4
-8 0
-4 0
BA
O
131
54
114
114
173
173
BA
O
211
131
190
192
274
264
24
77
277
879
902
877
912
881
998
(23)
(34)
(117)
902
902
954
912
1,158
998
Total, offsetting collections..............
Total (Unemployment compensation)
(net)..............................................
4,794
4,421
Total, offsetting collections..............
1995
estimate
-4 8
76
76
Federal unemployment benefits and allowances
(Training and employment):
(Appropriation, current).................... 504
(Outlays)...........................................
(Outlays for grants to State and
local governments)......................
(Unemployment compensation):
(Appropriation, current).................... 603
(Spending authority from offsetting
collections)...................................
(Outlays)...........................................
1994
estimate
1993
actual
Account
Total Federal unemployment bene
fits and allowances......................
State unemployment insurance and employment serv
ice operations
(Training and employment):
(Appropriation, current).................... 504 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)...........................................
O
(Outlays for grants to State and
local governments) ......................
O
State unemployment insurance and
employment service operations
(gross)..........................................
BA
O
372
THE BUDGET FOR FISCAL YEAR 1995
Department of Labor—Continued
(In millions of dollars)
1993
actual
Account
Total, offsetting collections..............
Total (Training and employment)
(net)..............................................
1995
estimate
BA
O
-8 7 7
-881
24
23
77
34
277
117
(Outlays for grants to State and
local governments)......................
Total Unemployment trust fund.......
Total Federal funds Employment
and Training Administration........
2,531
2,531
2,514
2,514
DA
2,474
2,474
2,555
2,548
-2,514
Total Trust funds Employment and
Training Administration................
1 7M
2,591
-2,531
Total, offsetting collections..............
1993
actual
Account
-8 7 9
(Unemployment compensation):
(Spending authority from offsetting
collections)................................... 603 BA
(Outlays)..........................................
O
State unemployment insurance and
employment service operations
1994
estimate
-2,474
1994
estimate
1995
estimate
O
(2,536)
(2,469)
(2,396)
BA
O
39,792
39,782
31.013
31.013
27.210
27.210
BA
O
18,049
17,387
9,248
8,693
7,567
6,382
BA
O
39,792
39,782
31.014
31.014
27.210
27.210
27
27
34
40
27
33
BA
27
40_
27
27
34
33
BA
O
27
40
27
27
34
33
64
64
72
*
51
1
1
64
70
64
51
65
64
73
70
Office of the Am
erican W
orkplace
Federal funds
Total (Unemployment compensation)
(net)..............................................
General and Special Funds:
BA
0
Total State unemployment insurance
and employment service oper
ations ...........................................
BA
0
Payments to the unemployment trust fund:
Appropriation, permanent................ 603 BA
Outlays.............................................
0
Advances to the unemployment trust fund and other
funds
(General retirement and disability in
surance (excluding social se):
(Appropriation, current).................... 601 BA
(Outlays)...........................................
0
(Unemployment compensation):
(Appropriation, current).................... 603 BA
(Outlays).
0
(Appropriation, current)....................
BA
(Outlays)..........................................
0
Total (Unemployment compensation)
BA
0
Total Advances to the unemploy
ment trust fund and other funds ..
77
34
277
117
Salaries and expenses (gross).......
O
7,808
7,532
503
503
Total, offsetting collections..............
Total Salaries and expenses (net) ...
269
343
344
344
326
326
4.651
4.651
2.556
2.556
a 61
A 61
360
360
2,617
2,617
360
360
4,651
4,651
Pension and welfare benefit adm
inistration
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 601 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
O
Salaries and expenses (gross) .......
BA
O
BA
0
Trust funds
Gifts and bequests:
Appropriation, permanent................ 504 BA
Outlays.............................................
0
Unemployment trust fund
(Training and employment):
(Appropriation, permanent).............. 504 BA
(Veterans employment and training)
(Employment and Training Adminis
tration: Program administration)...
(Bureau of Labor Statistics: Salaries
and expenses).............................
(State unemployment insurance and
employment service operations) ..
(Outlays)...........................................
O
(Outlays for grants to State and
local governments)......................
O
(Unemployment compensation):
(Appropriation, permanent).............. 603 BA
(Office of the Inspector General)....
(State unemployment insurance and
employment service operations) ..
(Departmental Management Sala
ries and expenses)......................
(Outlays)...........................................
O
24
23
Salaries and expenses:
Appropriation, current...................... 505 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
4,920
4,994
2,961
2,961
686
686
_*
Total, offsetting collections..............
Total Salaries and expenses (net) ...
BA
O
*
•
64
51
-1
-1
64
63
72
69
1,708
(34)
799
1,907
(12 )
1,162
*
Pension Benefit G
uaranty Corporation
Federal funds
1,158
(182)
1,177
(187)
1,185
(190)
(55)
(47)
(48)
(49)
(52)
(56)
(871)
1,157
(891)
1,161
(891)
1,174
(1,077)
(1,090)
(1 ,102)
38,635
(4)
29,837
(4)
26,024
(4)
(2,380)
(2,485)
(2,460)
0
0
Public Enterprise Funds:
0
38,626
29,852
26,036
Pension benefit guaranty corporation fund:
Spending authority from offsetting
collections.................................... 601 BA
Limitation on administration.............
Outlays.............................................
O
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Pension benefit guaranty corporation
fund (gross).................................
BA
*78
*4
b
4
Total, offsetting collections..............
2,323
815
1,708
803
1,986
1,166
-2,323
O
Total Pension benefit guaranty cor
poration fund (net).......................
2,323
(33)
815
-1,708
-1,907
b _ 78
-1,508
-9 0 5
-8 1 9
BA
O
373
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Labor—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
Em
ploym Standards Adm
ent
inistration
Salaries and expenses (gross) ......
BA
O
Total, offsetting collections..............
Total Salaries and expenses (net) ...
Special benefits
(General retirement and disability in
surance (excluding social se):
(Appropriation, current).................... 601 BA
(Outlays)..........................................
0
(Federal employee retirement and dis
ability):
(Appropriation, current).................... 602 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)..........................................
O
(Appropriation, current)....................
BA
(Outlays)..........................................
O
Special benefits (gross)...................
BA
O
Total Special benefits......................
237
256
31
260
33
269
31
265
263
260
270
269
287
285
-3 3
237
$36
256
254
BA
O
286
275
254
1,612
1,824
1,720
1,940
1,816
2,034
b -2
B - 2
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 554 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Salaries and expenses (gross) .....
-1,720
-1,816
Total Salaries and expenses (net) .
BA
O
286
212
275
220
252
216
BA
O
290
216
279
224
256
220
15
16
6
15
7
944
1,003
996
6
O
(30)
(30)
O
2
282
3
299
2
320
(61)
(62)
(65)
291
282
300
299
323
320
-3
-2
288
280
297
296
321
318
191
195
203
*
188
*
195
*
203
O
(29)
(24)
0
978
n
1,006
138
133
(1)
131
(1)
127
537
451
531
467
528
480
1,059
1,092
1,141
1,137
1,129
1,128
Total Salaries and expenses (net) ...
BA
O
n
1,001
115
(6)
(6)
195
195
203
203
-*
191
188
195
195
203
202
275
282
311
57
342
66
344
a 10
*9
71
374
332
342
359
353
382
375
-6 6
-7 1
275
286
292
287
311
304
142
143
172
33
173
40
182
39
206
175
173
183
182
211
206
-3 3
BA
Total, offsetting collections..............
(24)
(6)
192
188 •
-5 7
BA
O
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 505 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Appropriation, current......................
BA
Outlays.............................................
O
-4 0
-3 9
142
140
143
142
172
167
A1
D
epartm
ental M
anagem
ent
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 505 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Salaries and expenses (gross)
BA
321
Bureau of Labor Statistics
Salaries and expenses (gross) .......
(1)
114
BA
297
-*
BA
O
Total, offsetting collections............
-1,612
Outlays.............................................
Total Salaries and expenses (net)...
288
M Safety and H
ine
ealth Adm
inistration
(26)
Total Trust funds Employment
Standards Administration............
Total, offsetting collections..............
2,072
2,036
Administrative limitation: Office of
the Inspector General .................
Outlays............................................
O
Special workers' compensation expenses:
Appropriation, permanent................ 601 BA
Limitation on administrative ex-
1995
estimate
-2
BA
O
1,999
1,944
Panama Canal Commission compensation fund:
Appropriation, permanent................ 602 BA
Outlays............................................
0
Trust funds
Black lung disability trust fund:
Appropriation, current...................... 601 BA
Administrative limitation: ESA, sala
ries and expenses.......................
Administrative limitation: Depart
mental Management, salaries and
Total Federal funds Employment
Standards Administration............
Salaries and expenses (gross) .......
-3 1
232
229
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 554 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
1,902
1,828
Total, offsetting collections..............
Total (Federal employee retirement
and disability) (net)......................
232
-3 1
BA
O
1994
Occupational Safety and H
ealth Adm
inistration
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 505 BA
Spending authority from offsetting
collections....................................
BA
O
Outlays............................................
1993
actual
Account
BA
O
Total, offsetting collections..............
Total Salaries and expenses (net)...
BA
O
374
THE BUDGET FOR FISCAL YEAR 1995
Department of Labor—Continued
(In millions of dollars)
1994
1993
actual
Account
Office of the Inspector General:
Appropriation, current...................... 505 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Office of the Inspector General
(gross)..........................................
BA
0
6
54
53
52
-6
47
45
-6
47
47
49
48
79
81
64
82
98
80
79
81
84
107
98
-8 0
-8 1
-8 2
BA
BA
0
189
184
BA
0
25
16
3
-1
190
191
246
231
1994
estimate
1995
estimate
Allowances
Federal funds
General and Special Funds:
Salaries and expense:
Appropriation, current...................... 505 BA
Outlays.............................................
O
55
54
25
Total, offsetting collections..............
Total Federal funds Departmental
Management................................
6
52
-7
0
Total Working capital fund (net)......
49
54
52
Intragovemmental Funds:
Working capital fund:
Appropriation, current...................... 505 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Working capital fund (gross)...........
47
7
52
BA
0
1993
actual
Account
47
Total, offsetting collections..............
Total Office of the Inspector General
(net)..............................................
1995
estimate
A —2
A - 2
A — *
10,843
9,312
9,282
7,200
Sum ary
m
Federal funds:
(As shown in detail above)......................
BA
O
Deductions for offsetting receipts:
Intrafund transactions........................... 602 BA/O
908 BA/O
Total Federal funds.........................
Trust funds:
(As shown in detail above)......................
-
13
j - 2
J -1 2
j
- 3
j -1 2
j - 4
19,607
17,344
10,828
9,297
9,266
7,184
BA
O
40,852
40,874
32,155
32,150
28,339
28,338
BA
O
Interfund transactions ................................... 601 BA/O
603 BA/O
Total Department of Labor..............
j
BA
O
Deductions for offsetting receipts:
Proprietary receipts from the public.... 908 BA/O
Total Trust funds .............................
19,622
17,358
BA
O
j
-7 6
40,776
40,798
J -3 0
J -2 4
32,125
32,121
28,316
28,314
J -3 4 3
J -3 4 4
J -3 2 6
J - 1 3, 1 4 8
J - 3,963
J -1 ,2 1 0
46,892
44,651
38,646
37,111
36,045
33,962
: of State
of dollars)
1993
actual
Account
1994
1995
estimate
Adm
inistration of Foreign Affairs
Federal funds
General and Special Funds:
Diplomatic and consular programs:
Appropriation, current...................... 153 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Appropriation, current......................
BA
Outlays.............................................
O
Diplomatic and consular programs
(gross) ..........................................
1,721
1,783
439
2,727
425
2,199
434
2,228
1
H —*
2,603
2,727
2,145
2,198
2,218
2,228
-4 2 5
-4 3 4
H -
2,164
2,287
BA
O
Total Office of the Inspector General
(net)..............................................
BA
O
..............
..............
1,721
1,774
1,783
1,794
394
16
390
410
390
Total Acquisition and maintenance
of buildings abroad (net).............
-1 6
390
332
394
374
1995
estimate
24
23
24
24
24
24
24
24
24
24
24
24
*
-*
BA
O
BA
O
Acquisition and maintenance of buildings abroad (spe
cial foreign currency program):
Outlays............................................. 153 0
24
24
23
24
24
24
560
400
422
93
577
53
544
53
550
654
577
453
544
475
550
-9 3
BA
O
Total, offsetting collections..............
406
347
Acquisition and maintenance of
buildings abroad (gross).............
1994
estimate
-*
Acquisition and maintenance of buildings abroad:
Appropriation, current...................... 153 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
15
347
..............
..............
BA
O
Total, offsetting collections..............
390
Total, offsetting collections..............
Total Salaries and expenses (net) ...
Office of the Inspector General
(gross)..........................................
-1 5
BA
O
Salaries and expenses:
Appropriation, current...................... 153 BA
Spending authority from offsetting
BA
collections....................................
0
Outlays
Salaries and expenses (gross) .......
Office of the Inspector General:
Appropriation, current...................... 153 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
H - 1
-4 3 9
BA
O
Total, offsetting collections..............
Total Diplomatic and consular pro
grams (net)..................................
2,164
1993
actual
Account
-5 3
-5 3
560
484
400
491
422
497
375
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of State—Continued
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
Representation allowances:
Appropriation, current...................... 153 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Representation allowances (gross) ..
1993
actual
Account
Outlays.............................................
5
*
Total Federal funds Administration
of Foreign Affairs.........................
5
5
c
0
BA
0
Total Trust funds Administration of
Foreign Affairs.............................
O
1994
estimate
1995
estimate
1
13
15
BA
O
3,077
3,101
2,846
2,947
2,947
3,016
BA
O
515
420
446
459
477
492
861
914
* ............
915
861
913
913
915
861
661
914
913
913
915
861
914
913
460
458
402..
403
A 670
a 670
460
458
1,072..
1,073
Total, offsetting collections..............
Total Representation allowances
(net).............................................
Protection of foreign missions and officials:
Appropriation, current...................... 153 BA
Outlays............................................
0
Emergencies in the diplomatic and consular service:
Appropriation, current...................... 153 BA
Outlays.............................................
0
Buying power maintenance:
Reappropriation............................... 153 BA
Appropriation, current......................
BA
Total Buying power maintenance....
BA
Payment to the American Institute in Taiwan:
Appropriation, current...................... 153 BA
Outlays............................................ .......... 0
Payment to the Foreign Service retirement and disabil
ity fund:
Appropriation, current...................... 153 BA
Appropriation, permanent.......................... BA
Outlays....................................................... 0
Total Payment to the Foreign Serv
ice retirement and disability fund .
International Organizations and Conferences
BA
0
Federal funds
General and Special Funds:
11
13
10
14
9
10
8
2
Contributions to international organi
zations (gross).............................
-9 ..
16
13
15
17
15
15
119
154
273
125
156
261
129
158
288
273
273
281
281
288
288
Total Contributions to international
organizations (net).......................
79
76
71
71
70
70
BA
0
79
76
71
71
70
70
Total, offsetting collections..............
Total Working capital fund (net)......
-79
BA
0
Credit Accounts:
Repatriation loans program account
Appropriation, current...................... 153 BA
Appropriation, permanent................
BA
Limitation on direct loan activity......
Outlays............................................
0
Total Repatriation loans program ac
count ............................................
BA
0
Trust funds
Foreign Service retirement and disability fund:
Appropriation, permanent................ 602 BA
Outlays............................................
0
Foreign sendee national separation liability trust fund:
Appropriation, permanent................ 602 BA
Outlays............................................
0
Miscellaneous trust funds:
Appropriation, permanent................ 153 BA
BA
Total, offsetting collections..............
14
-70
- 2 ..
BA
O
Contributions for international peacekeeping activities
(Conduct of foreign affairs):
(Appropriation, current).................... 153 BA
O
(Outlays).
(Appropriation, current)................
BA
(Outlays).......................................
O
Total (Conduct of foreign affairs) .
BA
0
913
O
14..
Intragovernmental Funds:
Working capital fund:
Spending authority from offsetting
collections.................................... 153 BA
0
Outlays............................................
Working capital fund (gross)...........
Contributions to international organizations:
Appropriation, current...................... 153 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
BA
O
(International cooperation):
(Appropriation, current).................... 156 BA
(Outlays)...........................................
O
Total Contributions for international
peacekeeping activities............
533
527
BA
460
458
1.072
1.073
533
538
6
4
O
6
9
6
6
International conferences and contingencies:
Appropriation, current...................... 153 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
International conferences and con
tingencies (gross)........................
BA
O
1
1
(1)
1
1
1
(1)
1
(1)
1
Total International conferences and
contingencies (net)......................
1
1
1
1
1
1
Total Federal funds International Or
ganizations and Conferences .....
412
412
438
438
468
466
77
6
6
8
7
9
26
2
2
_*
Total, offsetting collections..............
BA
6
4
6
9
6
6
1,379
1,376
1,938
1,943
1,453
1,457
O
BA
O
International Commissions
International Boundary and W Commission, U
ater
nited States and
M
exico:
Federal funds
General and Special Funds:
Salaries and expenses, IBWC:
Appropriation, current...................... 301 BA
12
11
15
376
THE BUDGET FOR FISCAL YEAR 1995
Department of State—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
Spending authority from offsetting
collections....................................
Outlays.............................................
Salaries and expenses, IBWC
(gross)..........................................
*
12
1
12
1
16
BA
0
13
12
12
12
16
16
-*
BA
0
-1
-1
12
12
11
11
15
15
Construction, IBWC:
Appropriation, current...................... 301 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
14
14
10
11
21
35
59
54
66
BA
0
25
21
50
59
64
66
-1 1
-3 5
-5 4
14
24
10
13
Construction, IBWC (gross).............
Total, offsetting collections..............
Total Construction, IBWC (net).......
Total Federal funds International
Boundary and Water Commis
sion, United States and Mexico:..
BA
0
BA
0
14
10
26
22
26
35
26
26
BA
0
4
14
14
16
16
15
15
45
39
46
55
48
49
O
ther
BA
O
49
44
50
62
4
5
4
4
1
10
9
9
2
17
17
16
15
16
16
*
*
*
1
2
1
2
1
2
2
2
BA
O
49
93
2
2
2
2
-1
-1
-1
*
1
*
*
702
704
741
715
721
5,202
5,221
5,571
5,660
5,148
5,242
- *
j —•
j —*
BA
O
5,202
5,220
5,571
5,659
5,148
5,242
BA
O
515
420
446
459
477
492
*
j —*
512
416
446
458
476
491
J -3 1 6
j-7 7
J -3 2 6
j -6
j —*
J -333
j-7
j - *
5,321
5,244
5,684
5,785
5,284
5,393
BA
O
BA
7
Sum ary
m
Federal funds:
(As shown in detail above).................
BA
O
Deductions for offsetting receipts:
Proprietary receipts from the public .... 153 BA/O
Trust funds:
(As shown in detail above).................
Federal funds
Total Migration and refugee assist
ance .............................................
BA
O
0
4
Total Federal funds....................
General and Special Funds:
Migration and refugee assistance
(International development and humanItalian assistance):
(Appropriation, current).................... 151 BA
O
(Outlays)...........................................
(International cooperation):
(Appropriation, current).................... 156 BA
O
(Outlays)...........................................
37
Fishermen’s protective fund:
Outlays............................................. 376 0
Fishermen’s guaranty fund:
Outlays..................................
376 0
Total Federal funds Other .
International fisheries commissions:
Appropriation, current...................... 302 BA
Outlays.............................................
0
49..
93
50
25
U.S. bilateral science and technology agreements:
Appropriation, current...................... 153 BA
O
Russian, Eurasian, and East European research and
training program:
Appropriation, current...................... 153 BA
Outlays.............................................
O
Payment to the Asia Foundation:
Appropriation, current...................... 154 BA
Outlays.............................................
O
International Center, Washington, D.C:
Appropriation, permanent................ 153 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
O
Total International Center, Washing
ton, D.C. (net) .............................
BA
0
BA
0
Total Federal funds International
Commissions...............................
Total United States emergency refu
gee and migration assistance
fund..............................................
1995
estimate
1994
estimate
49
44
Total, offsetting collections..............
Total, offsetting collections..............
Total American sections, inter
national commissions (net).........
United States emergency refugee and migration assist
ance fund
(International development and human
itarian assistance):
(Appropriation, current).................... 151 BA
(Outlays)...........................................
0
(International cooperation):
(Appropriation, current).................... 156 BA
(Outlays)...........................................
0
International Center, Washington,
D.C (gross)..................................
Federal funds
General and Special Funds:
American sections, international commissions:
Appropriation, current...................... 301 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
0
American sections, international
commissions (gross) ...................
1993
actual
Account
BA
0
Total, offsetting collections..............
Total Salaries and expenses, IBWC
(net)..............................................
1995
Deductions for offsetting receipts:
Intrafund transactions...................... .... 602 BA/O
621
628
671
593
Total Trust funds........................
165
633
475
621
628
671
593
633
640
BA
O
Interfund transactions .............................. .... 153 BA/O
602 BA/O
803 BA/O
Total Department of State..........
BA
O
j
j
-3
j ~
377
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Transportation
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
estimate
Federal H ay Adm
ighw
inistration
Federal funds
General and Special Funds:
Miscellaneous appropriations:
Appropriation, current...................... 401 BA
Outlays .
Outlays tor grants to State and local
governments................................
0
BA
Appropriation, current......................
Outlays............................................
0
Outlays for grants to State and local
governments................................
Total Miscellaneous appropriations ..
BA
0
17
233
146
232
(231)
(231)
* —344
h -3 2
ff-6 9
*(-3 2 )
*(-6 9 )
-1 9 8
201
168
17
233
237
(236)
Credit Accounts:
Orange County (CA) toll road demonstration project
program account:
Appropriation, current...................... 401 BA
Limitation on direct loan activity......
Trust funds
Federal-aid highways:
Appropriation, current...................... 401 BA
BA
Appropriation, permanent................
Spending authority from offsetting
BA
collections...................................
BA
Contract authority, permanent.........
Limitation on program level (obliga
tions) ...........................................
Outlays............................................
O
Outlays for grants to State and local
governments................................
O
Appropriation, current......................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Contract authority, permanent.........
BA
Outlays............................................
0
Outlays for grants to State and local
governments................................
O
Federal-aid highways (gross) .
Total, offsetting collections.........
Total Federal-aid highways (net)
BA
O
Highway-related safety grants:
Contract authority, permanent......... 401 BA
Limitation on program level (obliga
tions) ............................................
O
Outlays............................................
Outlays for grants to State and local
governments................................
O
Motor carrier safety grants:
Contract authority, permanent......... 401 BA
Limitation on program level (obliga
tions) ...........................................
Outlays............................................
O
Outlays for grants to State and local
governments................................
O
Miscellaneous trust funds
(International development and human
itarian assistance):
(Appropriation, permanent).............. 151 BA
(Outlays)..........................................
0
(International cooperation):
BA
(Outlays)...................
0
(Ground transportation):
BA
(Outlays)...................................
O
Total Miscellaneous trust funds
10 ..
(120)..
BA
O
Miscellaneous highway trust funds:
Appropriation, current...................... 401 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Appropriation, current......................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Total Miscellaneous highway trust
funds ............................................
41
20,874
41
20,776
(15,507)
16,276
(17,590)
17,852
(19,969)
18,814
(15,895)
(17,308)
*315
*34
(18,191)
*(37)
* -1 ,7 2 1
*-2 0
*(-2 0 )
* (-3 1 4 )
20,787
16,276
19,539
17,866
20,000
18,670
-4 1
-4 1
20,770
16,259
19,498
17,825
19,959
18,629
20
20
(10)
11
(10)
9
(9)
(9)
76
80
83
(65)
63
(65)
66
(83)
73
(62)
(65)
(72)
1
*
1
8
6
7
32
8
33
7
11
8
12
(102)
*-1 4 5
* -8
*-2 3
* (-8 )
*(-2 3 )
(117)
21
(39)
30
42
(42)
42
42
(42)
42
21
30
42
42
42
42
-4 2
-4 2
Total Right-of-way revolving fund
(trust revolving fund) (net) ..........
BA
O
-2 1
BA
0
Total Federal funds Federal High
way Administration ......................
BA
O
Total Trust funds Federal Highway
Administration..............................
BA
O
9 ......................
26
233
-1 9 8 .
201
21,199
16,423
19,468
18,031
20,049
18,821
N
ational H ay Traffic Safety Adm
ighw
inistration
Federal funds
General and Special Funds:
Operations and research:
Appropriation, current...................... 401 BA
Spending authority from offsetting
BA
Outlays.............................................
O
BA
O
Miscellaneous safety programs:
Outlays............................................. 401 O
Outlays for grants to State and local
governments................................
0
T
funds
Operations and research (trust fund share):
Appropriation, current...................... 401 BA
Outlays...........................................
O
Highway traffic safety grants:
Contract authority, permanent......... 401 BA
Limitation on program level (obliga
tions) ............................................
Outlays.............................................
O
82
76
78
59
117
54
142
54
137
141
117
130
142
132
137
-5 9
BA
O
Total, offsetting collections..............
Total Operations and research (net)
(11)
(74)
120
97
Operations and research (gross)
(10)
10
8
106
Right-of-way revolving fund (trust revolving fund):
Spending authority from offsetting
collections.................................... 401 BA
Limitation on direct loan obligations
Outlays.............................................
O
*(181)
*-8 1 7
* -3 1 4
*171
325
75
-1 3 7
98
Total, offsetting collections..............
17
20,670
1995
estimate
325
75
100
30
1994
estimate
BA
O
Right-of-way revolving fund (trust re
volving fund) (gross) ...................
-1 7
BA
O
1993
actual
Account
-5 4
-5 4
82
58
76
87
78
83
5
*
(5)
0 ......
46
42
48
55
48
56
171
196
196
(142)
137
(174)
140
(151)
150
378
THE BUDGET FOR FISCAL YEAR 1995
Department of Transportation—Continued
(In millions of dollars)
1993
actual
Account
Outlays for grants to State and local
governments................................
Total Federal funds National High
way Traffic Safety Administration
Total Trust funds National Highway
Traffic Safety Administration.......
1994
estimate
1995
estimate
(131)
(135)
(144)
BA
O
82
63
76
87
78
83
BA
O
217
179
244
196
244
206
O
Northeast corridor improvement program:
Appropriation, current...................... 401 BA
Outlays.............................................
0
Pennsylvania station redevelopment project:
Appropriation, current...................... 401 BA
Outlays.............................................
0
Appropriation, current......................
BA
Outlays.............................................
0
Total Pennsylvania station redevel
opment project.............................
Federal Railroad Adm
inistration
Federal funds
General and Special Funds:
Office of the Administrator:
Appropriation, current...................... 401 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Office of the Administrator (gross)...
BA
O
12
18
*
20
t
31
*
24
(5)
(5)
(3)
17
20
12
31
19
24
-*
17
20
12
31
18
24
29
7
17
35
17
(7)
(35)
(17)
41
44
39
*
41
48
BA
O
41
39
44
41
48
48
BA
O
41
39
44
41
48
48
25
38
21
*
23
2
45
* -1 7
*-1 0
2
26
H - 3
22
35
22
22
Railroad research and development
Appropriation, current...................... 401 BA
Spending authority from offsetting
BA
collections....................................
O
Outlays.............................................
BA
Appropriation, current......................
Outlays.............................................
O
Railroad research and development
(gross)..........................................
BA
O
-*
Total, offsetting collections..............
Total Railroad research and devel
opment (net)................................
BA
O
Conrail labor protection:
Outlays............................................. 603 0
Conrail commuter transition assistance:
Appropriation, current...................... 401 BA
Outlays.............................................
O
Outlays for grants to State and local
O
governments................................
26
23
25
23
-2
21
33
-2
21
21
_*
Total Railroad rehabilitation and im
provement liquidating account
(net)..............................................
2
(2)
(15)
225
334
200
286
90
13
a 10
a 10
10
10
146
146
137
137
541
465
547
448
90
13
788
738
28
6
(1)
*
*
_*
-6
-7
-9
-9
-6
-6
-7
-7
<51
*
1
(4)......
*
-1
105
105
(4)
1
50
-1
(5)
3
a (4)
A2
A2
BA
O
50
105
3
105
5
BA
O
1,002
618
1,006
1,067
1,184
1,159
BA
O
50
105
3
105
5
15
(7)
BA
O
Total, offsetting collections.............. 401
Trust funds
Trust fund share of next generation high speed rail
program:
Contract authority, permanent......... 401 BA
Limitation on program level (obliga
tions) ............................................
Outlays.............................................
O
Limitation on program level (obliga
tions) ............................................
Outlays.............................................
O
Total Federal funds Federal Rail
road Administration .....................
7
7
1995
estimate
-9
Credit Accounts:
Railroad rehabilitation and improvement program ac
count
Appropriation, current...................... 401 BA
Limitation on loan guarantee com
mitments ......................................
Outlays.............................................
O
Amtrak corridor improvement loans program account:
Appropriation, current...................... 401 BA
Limitation on direct loan activity......
Outlays.............................................
O
Amtrak corridor improvement loans liquidating account
Total Trust fund share of next gen
eration high speed rail program ..
204
121
O
Total, offsetting collections..............
Total, offsetting collections..............
Total Railroad safety (net)...............
Railroad rehabilitation and improve
ment liquidating account (gross)..
1994
estimate
BA
0
Mandatory passenger rail service payments:
Appropriation, current...................... 401 BA
Outlays.............................................
0
Grants to National Railroad Passenger Corporation:
Appropriation, current...................... 401 BA
Outlays.............................................
0
Next generation high speed rail program:
Appropriation, current...................... 401 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Public Enterprise Funds:
Railroad rehabilitation and improvement liquidating ac
count:
Outlays............................................. 401 O
48
BA
O
Local rail freight assistance:
Appropriation, current...................... 401 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Railroad safety:
Appropriation, current...................... 401 BA
Spending authority from offsetting
collections....................................
BA
O
Outlays............................................
Railroad safety (gross) ....................
17
-*
Total, offsetting collections..............
Total Office of the Administrator
(net)..............................................
1993
actual
Account
Total Trust funds Federal Railroad
Administration..............................
379
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Transportation—Continued
(In millions of dollars)
actual
estimate
1993
actual
Account
estimate
Federal Transit Adm
inistration
Total, offsetting collections..............
Federal funds
Total Transit planning and research
(net)..............................................
General and Special Funds:
Administrative expenses:
Appropriation, current...................... 401 BA
Spending authority from offsetting
collections....................................
BA
O
Outlays............................................
Administrative expenses (gross).....
BA
O
Research, training, and human resources:
Outlays.............................................
Outlays for grants to State and local
governments................................
Interstate transfer grants-transit:
Appropriation, current......................
Outlays............................................
Outlays for grants to State and local
governments................................
Washington metro:
Appropriation, current......................
Outlays............................................
Outlays for grants to State and local
governments................................
Formula grants:
Appropriation, current......................
Spending authority from offsetting
collections....................................
Outlays............................................
Outlays for grants to State and local
governments................................
Formula grants (gross)....................
BA
O
25
43
18
36
43
38
43
39
36
43
43
43
43
401 O
11
14
9
O
(11)
(14)
(9)
75
163
45
112
39
78
(163)
(112)
170
149
200
189
200
148
(149)
(189)
(148)
401 BA
651
1,285
1,715
BA
O
1,049
2,240
1,130
1,387
1,150
1,851
O
(2,240)
(1,387)
(1,851)
BA
O
1,700
2,240
2,415
1,387
-1,130
-1,150
651
1,191
1,285
257
1,715
701
2
3
6
7
4
5
O
401 BA
O
O
BA
O
BA
O
2
10
4
6
5
29
1
48
-5 4
92
74
8
29
21
(8)
(29)
(21)
1,725
1,785
1,725
(1,725)
1,298
(1,785)
1,451
(1,517)
1,613
(1,298)
(1,451)
H —51
H - 1
(1,613)
« (-1 )
" (-5 )
Total Discretionary grants (trust
fund)........................................X-
1,725
1,298
1,734
1,450
1,725
1,606
1,150
1,190
1,150
(1,134)
618
(1,195)
1,712
(1,150)
1,150
BA
O
940
1,541
1,603
562
2,095
1,079
BA
O
2,875
1,916
2,924
3,161
2,875
2,758
2,251
2,286
2,202
2,333
4,546
2,352
4,648
H —3
H - 2
2,439
4,640
u
4,584
4,546
4,636
4,645
4,640
4,640
-2,333
-2,352
-2,439
2,251
2,212
2,283
2,293
2,202
2,201
Trust fund share of expenses:
Contract authority, permanent
401 BA
Limitation on program level (obliga
tions) ............................................
Outlays.............................................
O
Total Federal funds Federal Transit
Administration..............................
Total Trust funds Federal Transit
Administration..............................
BA
O
2
3
-3
6
5
29
48
92
15
16
98
45
74
(16)
(45)
(74)
44
16
147
45
92
74
H -
5
Federal Aviation Adm
inistration
Federal funds
General and Special Funds:
Operations:
Appropriation, current...................... 402 BA
Spending authority from offsetting
collections....................................
BA
O
Appropriation, current......................
BA
O
Operations (gross)...........................
Total Operations (net) .....................
BA
O
BA
O
BA
O
Total, offsetting collections..............
- 7 .....
Transit planning and research:
Appropriation, current...................... 401 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Outlays for grants to State and local
governments................................
O
Transit planning and research
(gross) .........................................
BA
O
-9 8 ..
2,865
1,851
-1,049
-1 5
Miscellaneous expired accounts:
Outlays............................................. 401 O
Outlays for grants to State and local
governments................................
O
Trust funds
Discretionary grants (trust fund):
Contract authority, permanent
401 BA
Limitation on program level (obliga
tions) ............................................
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Contract authority, current...............
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
(78)
401 BA
O
Total, offsetting collections..............
Total University transportation cen
ters (net)......................................
- 1 8 ....
21
17
University transportation centers:
Appropriation, current...................... 401 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
University transportation centers
(gross) .........................................
43
13
18
Total, offsetting collections..............
Total Formula grants (net) ..............
21
-2 5
Total, offsetting collections..............
Total Administrative expenses (net).
13
1995
estimate
1994
estimate
BA
O
Miscellaneous expired accounts:
Outlays............................................. 402 0
Aircraft purchase loan guarantee program:
Authority to borrow, current............. 402 BA
O
Public Enterprise Funds:
Aviation insurance revolving fund:
Spending authority from offsetting
collections.................................... 402 BA
Outlays.............................................
O
Aviation insurance revolving fund
(gross)..........................................
BA
—*
2
*
t
*
*
*
*
2
*
4
*
4
*
2
4
4
380
THE BUDGET FOR FISCAL YEAR 1995
Department of Transportation—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
-4
Total, offsetting collections..............
Total Aviation insurance revolving
fund (net).....................................
BA
0
Trust funds
Grants-in-aid for airports (Airport and airway trust
fund):
Contract authority, permanent......... 402 BA
Limitation on program level (obliga
tions) ............................................
Outlays.............................................
0
Outlays for grants to State and local
governments................................
0
Contract authority, permanent.........
BA
Total Grants-in-aid for airports (Air
port and airway trust fund) .........
BA
0
1,690
1,690
(1,800)
1,931
(1,690)
1,850
(1,690)
1,710
(1,931)
(1,850)
*-4 8 8
(1,710)
2,050
1,931
1,202
1,850
1,690
1,710
2,302
2,120
2,269
29
2,195
118
2,141
* —40
121
2,224
H - 8
*-1 0
2,331
2,195
2,198
2,133
2,390
2,215
-1 1 8
-121
2,302
2,166
2,080
2,015
2,269
2,093
230
254
267
*
2
268
2
280
213
230
213
256
268
268
280
-2
230
212
254
267
267
278
Trust fund share of FAA operations:
Appropriation, current...................... 402 BA
Outlays.............................................
O
2,279
2,279
2,294
2,294
2,379
2,379
BA
O
2,251
2,211
2,283
2,291
2,202
2,198
BA
0
6,861
6,569
5,830
6,426
6,605
6,461
Total Trust funds Federal Aviation
Administration..............................
51
2,251
2,535
2,606
126
2,382
138
2,693
*-5
104
2,490
2,630
2,640
2,667
2,743
2,710
2,490
-1 2 6
-1 3 8
-1 0 4
2,251
2,255
2,530
2,555
2,606
2,385
2,504
2,514
2,530
2,606
2,606
2,385
O
2
1
*
BA
304
288
407
BA
O
BA
42
351
35
351
*-2
48
378
BA
347
353
320
352
454
378
-4 2
-3 5
-4 8
304
309
286
316
407
330
304
311
286
317
407
331
304 BA
O
22
20
23
19
25
21
403 BA
O
13
7
13
24
13
403 BA
O
520
505
549
502
563
558
Operating expenses (gross)............
BA
O
Total (Water transportation) (net).
BA
O
BA
Acquisition, construction, and improvements
(Defense-related activities):
(Outlays)........................................... 054
(Water transportation):
(Appropriation, current).................... 403
(Spending authority from offsetting
collections)...................................
(Outlays)...........................................
(Appropriation, current)....................
Acquisition, construction, and im
provements (gross) .....................
Total, offsetting collections..............
Total (Water transportation) (net)....
BA
O
BA
0
Total Federal funds Federal Aviation
Administration..............................
253
258
Total Operating expenses...........
Total, offsetting collections..............
Total Research, engineering and de
velopment (Airport and airway
trust fund) (net) ...........................
Federal funds
General and Special Funds:
Operating expenses
(Defense-related activities):
(Appropriation, current).................... 054 BA
O
(Outlays)...........................................
(Water transportation):
(Appropriation, current).................... 403 BA
(Spending authority from offsetting
BA
collections)...................................
O
(Outlays)...........................................
BA
(Appropriation, current)....................
O
2,050
-2
BA
0
1995
estimate
1994
estimate
Coast G
uard
O
Research, engineering and development(Airport and
airway trust fund):
Appropriation, current...................... 402 BA
Spending authority from offsetting
collections...........................................BA
Outlays.....................................................0
Research, engineering and develop
ment (Airport and aiiway trust
fund) (gross)................................
-4
-2 9
BA
0
Total, offsetting collections..............
Total Facilities and equipment (Air
port and airway trust fund) (net) .
-4
-2
1993
actual
Account
Total, offsetting collections..........
BA
0
Facilities and equipment (Airport and airway trust
fund):
Appropriation, current...................... 402 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
0
Appropriation, current......... ............
BA
Outlays.............................................
0
Facilities and equipment (Airport
and airway trust fund) (gross) ....
1995
estimate
Total Acquisition, construction, and
improvements..............................
BA
O
Environmental compliance and restoration:
Appropriation, current ......................
Outlays.............................................
Alteration of bridges:
Appropriation, current......................
Outlays.............................................
Retired pay:
Appropriation, current......................
Outlays.............................................
Reserve training
(Defense-related activities):
(Appropriation, current)....................
(Outlays)...........................................
(Water transportation):
(Appropriation, current)....................
(Spending authority from offsetting
collections)...................................
(Outlays)..........................................
Reserve training (gross)..............
054 BA
O
50....
45
403 BA
23
64
65
BA
O
*
21
*
58
*
65
BA
73
66
64
64
65
65
O
Total, offsetting collections..........
Total (Water transportation) (net).
-*
BA
O
Total Reserve training.................
BA
O
Research, development, test, and evaluation:
Appropriation, current ...................... 403 BA
5
-*
-•
23
21
64
58
65
65
73
66
64
64
65
65
22
18
17
381
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Transportation—Continued
(In millions of dollars)
Spending authority from offsetting
collections....................................
Outlays.............................................
Outlays for grants to State and local
governments................................
Research, development, test, and
evaluation (gross)........................
1995
estimate
1993
actual
Account
Total, offsetting collections..............
BA
0
7
33
5
34
4
25
0
n
(1)
(1)
BA
0
29
33
23
34
21
25
Total Miscellaneous trust revolving
funds (net)...................................
-6
-7
BA
0
-5
*
BA
0
3,458
3,424
3,481
3,557
3,682
3,399
Total Trust funds Coast Guard.......
BA
0
192
151
182
144
128
110
216
244
217
-4
22
27
18
26
*
*
17
21
M
aritim Adm
e
inistration
Federal funds
General and Special Funds:
Operating-differential subsidies:
Outlays............................................. 403 0
Maritime security program:
Appropriation, permanent................ 403 BA
Outlays.............................................
0
Ocean freight differential:
Authority to borrow, permanent....... 403 BA
Outlays.............................................
0
Operations and training:
Appropriation, current...................... 403 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
71
71
BA
0
67
62
69
69
71
71
-6 7
-6 9
-7 1
-5
*
*
73
53
50
47
41
46
73
53
50
47
41
46
-7 3
-5 0
-4 1
-2 0
-3
5
64
5
69
64
8
70
8
24
(37)
(40)
(24)
Vessel operations revolving fund
(gross)..........................................
BA
0
70
69
72
70
8
24
Total, offsetting collections..............
304 BA
0
66
66
49
49
61
61
304 BA
0
50
10
50
15
50
15
304 BA
0
6
6
10
10
10
10
403 BA
0
*
*
*
*
*
403 BA
0
6
7
7
7
7
7
BA
0
6
7
7
7
7
7
Total, offsetting collections..............
BA
0
Coast Guard yard fund:
Spending authority from offsetting
collections.................................... 403 BA
Outlays.............................................
0
BA
0
Total, offsetting collections..............
Total Coast Guard yard fund (net) ..
BA
0
Trust funds
Boat safety:
Appropriation, current...................... 403 BA
Appropriation, permanent................
BA
Outlays.............................................
0
Outlays for grants to State and local
0
governments................................
Total Boat safety .............................
Trust fund share of expenses:
Appropriation, current......................
Outlays............................................
Emergency fund:
Appropriation, permanent................
Outlays............................................
Payment of claims:
Appropriation, permanent................
Outlays.............................................
Coast Guard general gift fund:
Appropriation, permanent................
Outlays.............................................
Miscellaneous trust revolving funds:
Spending authority from offsetting
collections....................................
Outlays............................................
Miscellaneous trust revolving funds
(gross)..........................................
http://fraser.stlouisfed.org/ 0-94-13 (QL 3)
150-003
Federal Reserve Bank of St. Louis
-7
*
69
69
Coast Guard yard fund (gross).......
-7
*
67
62
Total Coast Guard supply fund (net)
1995
estimate
BA
0
Pollution fund:
Outlays............................................. 304 0
Intragovemmental Funds:
Coast Guard supply fund:
Spending authority from offsetting
collections.................................... 403 BA
Outlays.............................................
0
Coast Guard supply fund (gross)....
1994
estimate
Total Federal funds Coast Guard ....
Total, offsetting collections..............
Total Research, development, test,
and evaluation (net) ....................
1994
estimate
1993
actual
Account
Operations and training (gross) .....
Ready reserve force:
Appropriation, current...................... 054 BA
Outlays.............................................
0
Public Enterprise Funds:
Vessel operations revolving fund:
Spending authority from offsetting
collections.................................... 403 BA
Outlays.............................................
0
Total Vessel operations revolving
fund (net).....................................
BA
0
77
77
61
61
72
76
77
43
119
46
124
49
126
115
119
123
124
126
126
-4 6
-4 9
72
76
76
78
77
77
440
409
298
369
250
286
168
240
108
34
58
58
168
240
108
34
58
58
-1 6 8
BA
0
62
62
-4 3
BA
0
Total, offsetting collections..............
Total Operations and training (net)..
*1,000
*80
-1 0 8
-5 8
BA
0
71
-7 4 ...
War risk insurance revolving fund:
Spending authority from offsetting
collections.................................... 403 BA
Outlays.............................................
0
1
*
2
*
1
1
1
*
2
*
1
1
War risk insurance revolving fund
(gross)..........................................
BA
0
Total, offsetting collections..............
Total War risk insurance revolving
fund (net).....................................
-1
BA
0
-2
-1
-1
-1
-1
118
157
145
Credit Accounts:
Federal ship financing fund liquidating account:
Spending authority from offsetting
collections.................................... 403 BA
382
THE BUDGET FOR FISCAL YEAR 1995
Department of Transportation—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
Outlays.............................................
Federal ship financing fund liquidat
ing account (gross) .....................
23
127
123
BA
O
118
23
157
127
145
123
-1 1 8
-1 5 7
-1 4 5
BA
O
BA
-9 5
-3 0
52
-2 2
Salaries and expenses:
Appropriation, current...................... 407 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Salaries and expenses (gross) .......
101..
54
(500)
54
50
52
101
54
54
0
BA
0
626
738
501
764
1,442
752
Federal funds
15
12
12
12
12
13
12
12
-1 5
Total, offsetting collections..............
15
12
-1 2
-1 2
-3
*
*
BA
O
Trust funds
Operations and maintenance:
Appropriation, current...................... 403 BA
Outlays.............................................
O
11
13
11
11
10
10
38
40
39
39
38
38
BA
O
BA
O
24
27
17
42
29
49
37
59
40
42
53
49
64
59
-2 9
-3 7
24
26
24
20
27
22
15
17
19
*
14
3
18
3
20
(7)
(7)
(7)
15
14
19
18
21
20
-*
BA
O
Emergency preparedness grants:
Appropriation, current...................... 407 BA
Appropriation, permanent................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Total Emergency preparedness
grants...........................................
24
-1 7
BA
O
Pipeline safety:
Appropriation, current...................... 407 BA
Spending authority from offsetting
collections....................................
BA
O
Outlays.............................................
Outlays for grants to State and local
governments................................
O
Total Pipeline safety (net) ...............
Public Enterprise Funds:
BA
- *
Total, offsetting collections..............
Saint Lawrence Seaway Developm Corporation
ent
O
38
39
38
_________ £l_________ 39_________38
BA
O
Research and special programs:
Appropriation, current...................... 407 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
O
BA
0
38
Federal funds
Pipeline safely (gross).....................
Saint Lawrence Seaway Development Corporation:
Spending authority from offsetting
collections.................................... 403 BA
Outlays.............................................
BA
O
Total, offsetting collections..............
BA
Total Saint Lawrence Seaway De
velopment Coiporation (net).......
39
*
41
General and Special Funds:
Total Research and special pro
grams (net)..................................
Total, offsetting collections.....
Saint Lawrence Seaway Develop
ment Corporation (gross)............
38
Research and Special Program Adm
s
inistration
Research and special programs
(gross)..........................................
BA
Total Trust funds Maritime Adminis
tration ...........................................
39
General and Special Funds:
0
Total Federal funds Maritime Admin
istration ........................................
38
Office of the Inspector General
Total Salaries and expenses (net) ...
Trust funds
Special studies, services and projects:
Appropriation, permanent................ 403 BA
Outlays.............................................
0
Gifts and bequests:
Appropriation, permanent................ 403 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Total Gifts and bequests (net)
1995
Total, offsetting collections..............
50..
(953)..
0
Gifts and bequests (gross).....
1994
Federal funds
Maritime guaranteed loan:
(Defense-related activities):
(Appropriation, current).................... 054 BA
(Limitation on loan guarantee com
mitments) .....................................
(Outlays)...........................................
0
(Water transportation):
(Appropriation, current).................... 403 BA
(Limitation on loan guarantee com
mitments) .....................................
(Outlays)..........................................
0
Total Maritime guaranteed loan
1993
actual
Account
O
Total, offsetting collections..............
Total Federal ship financing fund liq
uidating account (net) .................
1995
estimate
BA
O
Intragovemmental Funds:
Working capital fund, Volpe National Transportation
Systems Center:
Spending authority from offsetting
collections.................................... 407 BA
Outlays.............................................
O
-3
-3
15
14
17
15
19
17
1
10
1
*
*
11
12
11
13
n
(9)
(10)
11
1
11
12
12
13
234
229
224
224
232
232
234
229
224
224
232
232
Working capital fund, Volpe National
Transportation Systems Center
BA
O
383
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Transportation—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
-2 3 4
Total, offsetting collections..............
Total Working capital fund, Volpe
National Transportation Systems
Center (net) .................................
1995
estimate
-2 2 4
-2 3 2
Trust funds
Alaska pipeline task force:
Appropriation, current...................... 407 BA
Outlays.............................................
0
Trust fund share of pipeline safety:
Appropriation, current...................... 407 BA
Outlays.............................................
0
2
2
3
3
0
Total Trust funds Research and
Special Programs Administration .
50
35
52
47
57
52
BA
1
*
2
3
3
3
BA
0
5
6
4
4
5
5
7
6
Total, offsetting collections..............
-*
Total Operations and research,
OCST (net) ..................................
1
4
BA
O
BA
- 5 ...........................................
BA
O
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 407 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Working capital fund (gross) ...........
BA
O
Salaries and expenses (gross) .......
BA
0
Rental payments:
Appropriation, current...................... 407 BA
Spending authority from offsetting
collections....................................
BA
O
Outlays.............................................
Appropriation, current......................
BA
O
Outlays............................................
Rental payments (gross) .................
BA
O
Total, offsetting collections..............
Total Rental payments (net)............
BA
O
Total, offsetting collections..............
Total Transportation, planning, re
search and development (net)....
19
84
19
88
12
73
81
84
77
88
73
73
-1 9
-1 2
62
65
58
69
62
61
81
109
110
53
136
63
168
66
176
h -2
H -2
133
136
170
167
176
176
-6 3
-6 6
81
83
107
104
110
110
3
9
7
Credit Accounts:
Minority business resource center program account:
Appropriation, current...................... 407 BA
Limitation on direct loan activity , ,,
Outlays.............................................
O
Trust funds
Trust fund share of rental payments:
Appropriation, current...................... 407 BA
Outlays.............................................
O
Payments to air carriers (trust fund):
Contract authority, permanent......... 402 BA
Limitation on program level (obliga
tions) ............................................
Outlays.............................................
O
Contract authority, permanent
BA
Total Payments to air carriers (trust
fund) .............................................
BA
O
Gifts and bequests:
Outlays............................................. 407 O
Total Federal funds Office of the
Secretary......................................
10
*
3
BA
O
9
3
3
_.
9
7
10
9
3
3
9
7
5
7
*
*
5
5
1
11
73
62
93
93
107
107
73
62
93
93
107
107
-9 3
-1 0 7
1
(8)
*
*
(8)
1
2
(15)
2
49
49
41
41
43
43
39
39
26
(39)
36
(33)
26
ff-1 0
(26)
29
39
36
29
26
26
29
7
6
-1 1 ..
*
150
146
180
196
190
188
BA
O
88
85
69
66
69
72
8,624
9,246
9,024
8,811
10,967
9,116
j -2
J -10
j -34
J - 77
J-IS
J -7
J -15
J-37
J -79
J -21
j -8
J -15
J-43
J - 191
J -22
8,487
9,110
8,864
8,652
10,687
8,836
Sum ary
m
Federal funds:
(As shown in detail above) ......................
10
9
4
4
4
BA
O
Total Trust funds Office of the Sec
retary ............................................
Deductions for offsetting receipts:
Proprietary receipts from the public
Offsetting governmental receipts
BA
O
Operations and research, OCST:
Appropriation, current..................... 407 BA
Spending authority from offsetting
collections....................................
BA
62
-5 3
BA
O
Transportation, planning, research and development:
Appropriation, current...................... 407 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Transportation, planning, research
and development (gross) ............
58
-1 9
BA
0
Total, offsetting collections..............
Total Salaries and expenses (net) ...
Total Working capital fund (net)
62
-•
-7 3
Payments to air carriers, DOT:
Outlays............................................. 402 0
Intragovemmental Funds:
Working capital fund:
Spending authority from offsetting
collections.................................... 407 BA
Outlays.............................................
O
Total, offsetting collections..............
Office of the Secretary
1995
estimate
1994
estimate
O
Outlays.............................................
Operations and research, OCST
(gross) ..........................................
0
Total Federal funds Research and
Special Programs Administration .
1993
actual
Account
Total Federal funds.........................
BA
O
403
407
401
403
407
BA/O
BA/O
BA/O
BA/O
BA/O
BA
O
384
THE BUDGET FOR FISCAL YEAR 1995
Department of Transportation—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
estimate
Interfund transactions ................................... 401 BA/O
Deductions for offsetting receipts:
Proprietary receipts from the public ...
j —*
j -1
151 BAA)
401 BA/O
403 BA/O
Total Trust funds ...........................
J-1
J-2
J-1
J-2
j -
31,491
25,354
BA
O
28,833
28,040
Total Department of Transportation .
*
1994
estimate
1993
actual
Account
BA
O
1995
estimate
j-S
J —5
J —5
39,971
34,457
37,693
36,687
40,768
37,274
30,086
28,443
Department of the Treasury
(In millions of dollars)
1993
actual
Account
1995
estimate
1994
estimate
D
epartm
ental Offices
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 803 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Salaries and expenses (gross).......
Total, offsetting collections..............
Total Salaries and expenses (net) ...
BA
0
Office of Inspector General:
Appropriation, current...................... 803 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
0
Office of Inspector General (gross) .
BA
0
BA
Financial crimes enforcement network:
Appropriation, current...................... 751 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
BA
0
55
160
57
166
147
165
160
160
165
166
-5 5
-5 7
Exchange stabilization fund (gross) .
105
123
105
105
108
109
29
29
31
1
28
2
28
2
32
30
28
31
28
33
32
-2
1,925
1,000
1,950
1,000
1,954
575
1,925
1,950
1,000
1,000
-1,925
-1,950
-1,379
-9 2 5
-9 5 0
123
142
129
129
148
148
123
142
129
129
148
148
-1 2 3
Total, offsetting collections..............
1,954
575
-1,954
BA
O
-1 2 9
-1 4 8
489
-475
471
-5 3 2
Total Exchange stabilization fund
O
Intragovemmental Funds:
Working capital fund:
Spending authority from offsetting
collections.................................... 803 BA
Outlays.............................................
O
Working capital fund (gross)...........
BA
O
Total, offsetting collections..............
Total Working capital fund (net)...
BA
O
-2
29
28
29
26
31
30
21
18
20
1
21
1
26
3
23
22
21
-1
Total, offsetting collections..............
Total Financial crimes enforcement
network (net) ...............................
42
165
Public Enterprise Funds:
Exchange stabilization fund:
Spending authority from offsetting
collections.................................... 155 BA
Outlays.............................................
............................
0
1995
estimate
20..
Trust funds
0
Financial crimes enforcement net
work (gross).................................
108
-1
Total, offsetting collections..............
Total Office of Inspector General
(net)..............................................
105
-4 2
BA
0
105
1994
estimate
1993
actual
Account
BA
0
Department of the Treasuiy forfeiture fund:
Appropriation, current...................... 751 BA
BA
Appropriation, permanent .
0
Outlays.............................................
Outlays for grants to State and local
governments................................
«
20
26
-1
Gifts and bequests:
Appropriation, permanent................ 803 BA
Outlays .
Total Federal funds Departmental
Offices..........................................
Total Trust funds Departmental Offices......................... ....................
22
23
-3
21
20
18
25
20
20
15
144
96
32
223
293
15
217
234
(51)
(133)
BA
O
343
-1,087
♦
BA
O
.*
*
47
47
47
17
57
20
22
69
Federal Law Enforcem Training Center
ent
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current .................... 751 BA
Spending authority from offsetting
collections....................................
BA
O
Outlays.............................................
BA
0
Presidential election campaign fund:
Appropriation, permanent................ 808 BA
Outlays.............................................
0
64
57
68
Total, offsetting collections..............
Total Department of the Treasury
forfeiture fund..............................
Salaries and expenses (gross) .......
-1 7
-20
-22
Total Salaries and expenses (net) ...
47
40
47
47
47
47
17
13
(102)
159
96
256
293
232
234
28
6
81
*
81
24
BA
O
BA
O
Acquisitions, construction, improvements, and related
expenses:
Appropriation, current...................... 751 BA
385
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of the Treasury—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
estimate
16
14
BA
O
64
57
60
58
54
61
Financial M
anagem Service
ent
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 803 BA
Spending authority from offsetting
collections....................................
BA
0
Outlays............................................
BA
0
Total, offsetting collections..............
Total Salaries and expenses (net) ...
BA
0
Payment to the Resolution Funding Corporation:
Appropriation, permanent..................908 BA
0
Outlays............................................
Interest on uninvested funds:
Appropriation, permanent..................908 BA
Outlays.............................................
0
Cash management improvement
Appropriation, permanent..................908 BA
Outlays.............................................
0
Claims, judgments, and relief acts:
Appropriation, permanent..................808 BA
Outlays.............................................
O
Net interest paid to loan guarantee financing accounts:
Appropriation, permanent..................908 BA
Outlays............................................
O
Appropriation, permanent................
BA
Outlays............................................
O
Total Net interest paid to loan guar
antee financing accounts............
BA
O
Energy security reserve:
Outlays....................................
271 O
Biomass energy development
Appropriation, current...................... 271 BA
Outlays.............................................
O
Appropriation, current......................
BA
Total Biomass energy development.
BA
O
Credit Accounts:
Payments to the farm credit system financial assist
ance corporation liquidating account:
Appropriation, current...................... 908 BA
Outlays.............................................
O
214
210
102
322
103
312
125
314
316
322
313
312
311
314
-1 0 3
-1 2 5
214
220
210
209
186
189
2,328
2,328
2,328
2,328
2,328
2,328
6
3
4
4
4
4
*
*
*
*
*
BA
O
3,616
3,720
3,732
3,842
4,071
4,114
BA
O
8
9
10
9
9
9
12,748
12,748
11,019
11,019
10,218
10,218
12,748
12,748
11,019
11,019
10,218
10,218
-12,748
-11,019
-10,218
Rebate of Saint Lawrence seaway tolls:
Appropriation, current...................... 808 BA
Outlays.............................................
O
Miscellaneous trust funds
(Other general government):
(Appropriation, permanent).............. 808 BA
Federal Financing Bank
Federal funds
Intragovemmental Funds:
Federal Financing Bank:
Authority to borrow, permanent....... 803 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Federal Financing Bank (gross)......
BA
O
Total, offsetting collections.............
Total Federal Financing Bank (net)
*
*
BA
O
87
87
518
519
591
591
611
611
514
514
555
555
A -2
A -2
781
781
*1 7
*1 7
514
514
553
553
798
798
76
94
40
1
" -1 6
1
-4 9
-1 8
-4 9
-1 8
-1 6
1
B
ureau of Alcohol, Tobacco and Firearm
s
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 751 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Salaries and expenses (gross) ......
BA
O
Total, offsetting collections..............
372
372
380
18
394
16
387
16
395
390
394
388
387
396
395
-1 8
-1 6
-1 6
BA
O
372
376
372
371
380
380
Internal revenue collections for Puerto Rico:
Appropriation, permanent................ 806 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
197
197
219
219
226
226
(197)
(219)
(226)
570
574
592
590
606
605
1,331
190
1,359
199
1,398
365
226
1,684
288
1,829
296
2,056
1,747
1,684
1,846
1,829
2,060
2,056
-2 2 6
-2 8 8
-2 9 6
1,521
1,458
1,558
1,541
1,763
1,760
Total Salaries and expenses (net) ...
Total Federal funds Bureau of Alco
hol, Tobacco and Firearms
BA
O
1
U
nited States Customs Service
85
77
63
63
57
57
8
9
10
9
9
9
Trust funds
_*
186
-1 0 2
Salaries and expenses (gross) .......
*
BA
O
Total Federal funds Financial Man
agement Service .........................
1995
estimate
*
O
Total Trust funds Financial Manage
ment Sen/ice ...............................
Federal funds
1994
estimate
*
(Outlays)...........................................
Total Miscellaneous trust funds ......
Outlays .
Total Federal funds Federal Law
Enforcement Training Center......
1993
actual
Account
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 751 BA
Appropriation, permanent................
BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Salaries and expenses (gross)
—
*
*
BA
O
Total, offsetting collections..............
Total Salaries and expenses (net) ...
BA
O
386
THE BUDGET FOR FISCAL YEAR 1995
Department of the Treasury—Continued
(In millions of dollars)
1993
actual
Account
Operation and maintenance, air interdiction program:
Appropriation, current...................... 751 BA
Spending authority from offsetting
collections....................................
BA
O
Outlays.............................................
Operation and maintenance, air
interdiction program (gross)........
BA
0
1994
Outlays.............................................
48
83
-1
123
3
56
16
94
80
123
51
56
-3
BA
0
Operations and maintenance, customs P-3 drug inter
diction program:
Appropriation, current...................... 751 BA
Outlays.............................................
0
Air and marine interdiction programs, procurement:
Appropriation, current...................... 751 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Air and marine interdiction pro
grams, procurement (gross)........
82
125
48
53
28
13
94
-16
78
BA
27
Total Bureau of Engraving and
Printing fund (net) .......................
21..
10
17
Customs facilities, construction, improvements and re
lated expenses:
Appropriation, current...................... 751 BA
Outlays.............................................
0
Customs forfeiture fund:
Appropriation, permanent................ 751 BA
O
Outlays.............................................
Outlays for grants to State and local
governments................................
0
Customs services at small airports:
Appropriation, current...................... 751 BA
Outlays.............................................
O
Miscellaneous permanent appropriations:
Appropriation, permanent................ 606 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
O
Outlays for grants to State and local
O
governments................................
BA
0
1,795
1,766
1,808
1,800
1,999
2,001
BA
O
7
8
8
8
9
9
411
382
444
454
479
463
411
362
444
454
479
463
-411
-4 4 4
-4 7 9
-2 9
10
-1 6
53
55
56
1
39
59
*
56
54
39
56
59
56
56
BA
O
BA
O
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 803 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Salaries and expenses (gross) .......
3
33
Total Salaries and expenses (net) ...
(14)
BA
Trust funds
Refunds, transfers and expenses, unclaimed, and
abandoned goods:
Appropriation, permanent................ 751 BA
BA
O
Total, offsetting collections..............
11
(5)......
-1
BA
0
1
1
1
1
129
147
151
*
126
147
151
(102)
(119)
(123)
Numismatic public enterprise fund
(gross)..........................................
130
126
147
147
151
151
147
147
151
151
Total Federal funds United States
M int..............................................
-1
-*
55
57
56
56
33
11
39
39
5
5
438
416
401
425
530
536
438
416
401
425
530
536
-4 5 5
-4 1 4
-5 6 4
BA
O
-1 7
-3 9
-1 3
11
-3 4
-2 8
BA
O
69
10
80
107
27
33
187
180
119
Total, offsetting collections..............
129
126
1
53
38
Coinage profit fund:
Appropriation, permanent................ 803 BA
Outlays.............................................
O
Public Enterprise Funds:
Numismatic public enterprise fund:
Spending authority from offsetting
collections.................................... 803 BA
Outlays.............................................
O
1
1
Total Numismatic public enterprise
fund (net).....................................
0
BA
O
U
nited States M t
in
Total, offsetting collections..............
Total Miscellaneous permanent ap
propriations (net).........................
9
Total, offsetting collections..............
-1 3 ..
0
8
Federal funds
Intragovemmental Funds:
Bureau of Engraving and Printing fund:
Spending authority from offsetting
collections.................................... 803 BA
Outlays.............................................
O
Bureau of Engraving and Printing
fund (gross).................................
13..
30
-8
8
Bureau of Engraving and Printing
27
8
18
O
1995
estimate
1994
estimate
34..
30
0
Miscellaneous permanent appropria
tions (gross).................................
Total Federal funds United States
Customs Service .........................
Total Trust funds United States
Customs Service .........................
28..
28
35
18
BA
Total, offsetting collections..............
Total Air and marine interdiction
programs, procurement (net) ......
1993
actual
Account
82
Total, offsetting collections..............
Total Operation and maintenance,
air interdiction program (net) ......
1995
BA
O
Bureau of the Pubiic Debt
Federal funds
General and Special Funds:
Administering the public debt:
Appropriation, current...................... 803 BA
Appropriation, permanent................
BA
189
10
2
10
2
387
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of the Treasury—Continued
(In millions of dollars)
1993
actual
Account
Spending authority from offsetting
collections....................................
Outlays.............................................
Administering the public debt (gross)
1994
estimate
1994
estimate
1995
estimate
BA
0
Outlays.............................................
0
1,266
1,489
1,701
305
*
307
3
304
Information systems (gross)............
BA
0
1,519
1,266
1,509
1,489
1,784
1,701
309
305
307
307
303
304
Total, offsetting collections..............
-4 0
-2 4
-2 4
-3
Total Information systems (net) ......
BA
0
1,479
1,226
1,485
1,465
1,760
1,677
307
307
300
301
8,781
8,781
10,036
10,036
15,797
15,797
*
*
*
1
*
*
650
650
373
373.
310
305
307
308
300
302
2,127
2,127
2,679
2,679
2,899
2,899
1
9
6
9
8
1
9
8
9
8
*
BA
0
309
305
Payment of Government losses in shipment
Appropriation, permanent................ 803 BA
Outlays.............................................
0
Total Federal funds Bureau of the
Public D ebt..................................
1993
actual
Account
-•
BA
0
Total, offsetting collections..............
Total Administering the public debt
(net)..............................................
1995
estimate
BA
0
Payment where earned income credit exceeds liability
for tax:
Appropriation, permanent................ 609 BA
Outlays.............................................
0
Health insurance supplement to earned income credit:
Appropriation, permanent................ 551 BA
Outlays.............................................
0
Refunding internal revenue collections, interest:
Appropriation, permanent................ 908 BA
Outlays.............................................
0
Public Enterprise Funds:
Federal tax lien revolving fund:
Spending authority from offsetting
collections.................................... 803 BA
Outlays.............................................
0
Internal Revenue Service
Federal funds
General and Special Funds:
Administration and management:
Appropriation, current...................... 803 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Administration and management
(gross)..........................................
BA
O
BA
O
Information systems:
Appropriation, current...................... 803 BA
Spending authority from offsetting
collections....................................
BA
2
232
159
152
173
173
236
232
-2
-2
157
150
171
170
BA
0
Total, offsetting collections..............
-9
Total Federal tax lien revolving fund
(net)..............................................
Total Federal funds Internal Reve
nue Service .................................
1,633
1,721
1,529
18
1,677
20
1,733
112
1,659
1,651
1,677
1,741
1,733
1,642
1,659
-2 0
BA
1,721
1,713
1,529
1,546
3,836
3,974
3,944
65
3,907
66
4,034
122
4,067
3,900
3,907
4,041
4,034
3,974
3,968
3,944
3,945
1,479
1,485
1,760
40
24
24
-*
18,663
18,437
20,440
20,404
26,162
26,094
481
462
472
3
476
5
463
5
475
483
476
467
463
477
475
-3
-1 2 2
3,836
3,843
-*
-5
-5
481
473
462
458
472
470
40
38
40
42
40
40
521
511
502
500
512
510
376
347
386
372
396
382
376
347
386
372
396
382
Service
4,066
4,067
-6 6
1
Federal funds
-1 1 2
1,633
1,659
-9
BA
0
233
230
-6 5
BA
O
Total, offsetting collections..............
Total Tax law enforcement (net)
2
173
Federal tax lien revolving fund
(gross)..........................................
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 751 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
0
Salaries and expenses (gross) .......
BA
0
Total, offsetting collections..............
BA
0
Tax law enforcement
Appropriation, current...................... 803 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Tax law enforcement (gross)..........
2
152
-1 8
BA
O
Total, offsetting collections..............
Total Processing tax returns and as
sistance (net)...............................
233
0
Processing tax returns and assistance:
Appropriation, current...................... 803 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Processing tax returns and assist
ance (gross) ................................
171
-2
BA
O
Total, offsetting collections..............
Total Administration and manage
ment (net)....................................
157
Total Salaries and expenses (net) ...
BA
0
Contribution for annuity benefits:
Appropriation, permanent................ 751 BA
Outlays.............................................
0
Total Federal funds United States
Secret Service.............................
BA
0
urrency
Trust funds
Assessment funds:
Spending authority from offsetting
collections.................................... 373 BA
Outlays.............................................
0
Assessment funds (gross) .
BA
0
388
THE BUDGET FOR FISCAL YEAR 1995
Department of the Treasury—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
-376
Total, offsetting collections.....
1995
-386
0
-29
-14
-14
Federal funds:
(As shown in detail above)..................
Deductions for offsetting receipts:
Intrafund transactions.......................
Office of Thrift Supervision
Federal funds
Public Enterprise Funds:
Office of Thrift Supervision:
Spending authority from offsetting
collections.................................... 373 BA
Outlays.............................................
0
Office of Thrift Supervision (gross) ..
180
190
170
175
188
200
180
190
170
175
-1 8 8
Total, offsetting collections..............
Total Office of Thrift Supervision
(net)..............................................
188
200
-1 8 0
-1 7 0
BA
O
11
10
5
Trust funds:
(As shown in detail above)..................
Interest on the Public D
ebt
Interfund transactions ...............................
Federal funds
General and Special Funds:
Interest on the public debt:
Appropriation, permanent................ 901 BA
Outlays.............................................
0
292,502
292,502
298.505
298.505
310.906
310.906
BA
O
803
808
809
908
BA/O
BA/O
BA/O
BA/O
1995
estimate
Total Department of the Treasury
318,452
316,778
326,516
325,658
345,108
344,083
J -7 5
J -7 7
J -8 5
J 79
J -1 3 ,5 2 4
j - *
j - *
j - *
j —*
J - 11,769
J -1 0 ,7 4 2
J -1 5
-1 0 0
J -1
J —84
J -8 1 8
J - 1 ,6 6 2
J -7 3 3 .
J - 15
J -1 0 2
J -1
J -9 3
J —691
J -1 ,9 4 0
J -7 5 4
J -1 5
J -1 0 4
J -1
J —61
J -7 0 0
J - 2,674
J - 1 ,0 2 5
BA
O
301,520
299,646
311,073
310,216
329,702
328,677
BA
O
15
-1 2
18
4
18
5
J -6 1 7
J - 412
J —622
J —329
j ~ *
J -6 4 6
J -3 3 7
j —*
300,506
298,804
310,139
309,266
328,737
327,698
Interfund transactions from off-budget
account^........................................... 651 BA/O
Proprietary receipts from the public . 151 BA/O
155 BA/O
751 BA/O
803 BA/O
809 BA/O
908 BA/O
Offsetting governmental receipts..... .... 751 BA/O
Total Federal funds.....................
BA
O
1994
estimate
Sum ary
m
BA
Total Assessment funds (net)
1993
actual
Account
601 BA/O
803 BAA)
809 BAA)
BA
O
j
*
j
Department of Veterans Affairs
(In millions of dollars)
1993
actual
Account
1994
1995
estimate
Federal funds
General and Special Funds:
Medical care (gross)........................
BA
O
Medical and prosthetic research:
Appropriation, current...................... 703 BA
Spending authority from offsetting
collections....................................
BA
O
Outlays.............................................
Medical and prosthetic research
(gross) ..........................................
BA
O
Total, offsetting collections..............
Total Medical and prosthetic re
search (n et).................................
15,622
16,122
72
14,368
75
15,384
79
16,120
(129)
(149)
(178)
BA
O
14,718
14,368
15,698
15,384
16,201
16,120
-7 5
-7 9
14,646
14,296
15,622
15,309
16,122
16,042
232
252
211
42
286
45
292
30
251
274
288
297
292
241
251
-4 2
Total, offsetting collections..............
Total Medical care (net) ..................
14,646
-7 2
BA
O
1994
estimate
1995
Medical administration and miscellaneous operating ex-
Veterans H
ealth Adm
inistration
Medical care:
Appropriation, current...................... 703 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
1993
actual
Account
-4 5
-3 0
232
246
252
247
211
221
703 BA
0
Outlays.............................................
Health professional scholarship program:
Appropriation, current...................... 703 BA
Outlays.............................................
O
it program:
703 BA
Medical care cost recovery fund:
Appropriation, permanent................ 703 BA
Outlays.............................................
O
69
61
68
69
69
69
10
10
10
10
10
10
96
99
104
103
12
7
6
6
12
7
6
6
5
96
69
Public Enterprise Funds:
Medical facilities revolving fund:
Spending authority from offsetting
collections.................................... 703 BA
Outlays.............................................
O
Medical facilities revolving fund
(gross) ..........................................
BA
O
Total, offsetting collections..............
Total Medical facilities revolving
fund (net).....................................
-1 2
BA
O
Canteen service revolving fund:
Spending authority from offsetting
collections.................................... 705 BA
O
Outlays.............................................
Canteen service revolving fund
(gross)..........................................
BA
O
-6
..................................................................
*
-4
207
210
242
239
254
249
207
210
242
239
254
249
389
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Veterans Affairs—Continued
(In millions of dollars)
1993
actual
Account
-207
Total, offsetting collections .
Total Canteen service revolving fund
(net)..............................................
1995
estimate
1994
estimate
-2 4 2
-2 5 4
BA
0
3
Special therapeutic and rehabilitation activities fund:
Spending authority from offsetting
collections.................................... 703 BA
Outlays.............................................
O
9
6
10
10
10
10
9
8
10
10
10
10
-1 0
-1 0
Special therapeutic and rehabilita
tion activities fund (gross)...........
BA
O
Total, offsetting collections..............
-9
Medical center research organizations:
Spending authority from offsetting
collections.................................... 703 BA
Outlays.............................................
O
Medical center research organiza
tions (gross).................................
Total, offsetting collections..............
Total Medical center research orga
nizations (net)..............................
26
26
27
27
25
25
26
26
27
27
-2 6
-2 7
Total Readjustment benefits (net) .
BA
O
Transitional housing loans, program account:
Appropriation, current...................... 705 BA
Limitation on direct loan activity......
Outlays.............................................
O
Total Federal funds Veterans Health
Administration..............................
Total Trust funds Veterans Health
Administration..............................
Reinstated entitlement program for
survivors under Public Law
97-377 (gross) ............................
29
28
-*
30
27
29
28
30
27
30
31
*
n
0
*
n
-
*
31
31
BA
O
15,058
14,705
16,049
15,725
16,517
16,440
BA
O
29
28
30
27
31
31
Total Compensation.........................
3,398
3,661
3,344
3,344
BA
0
99
99
108
109
111
111
BA
779
947
1,287
BA
0
BA
0
253
1,108
203
1,298
a 103
a 103
193
1,493
BA
0
1,032
1,108
1,253
1,401
1,480
1,493
-2 5 3
-2 0 3
-1 9 3
779
854
1,051
1,198
1,287
1,300
33
26
29
34
23
27
33
26
29
34
23
27
-3 3
-2 9
-2 3
23
15
25
2
24
2
19
2
27
25
24
18
19
27
27
13,429
13,384
13,316
14,335
a 698
a 695
14,173
14,169
a
3
'347
'346
BA
0
BA
0
Total, offsetting collections..............
Total Reinstated entitlement pro
gram for survivors under Public
Law 97-377 (net)........................
BA
0
Veterans job training:
Outlays............................................. 702 O
Veterans insurance and indemnities:
Appropriation, current...................... 701 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Veterans insurance and indemnities
(gross)..........................................
BA
O
Total, offsetting collections..............
Total Veterans insurance and in
demnities (net).............................
Veterans Benefits Adm
inistration
Federal funds
General and Special Funds:
Compensation:
Appropriation, current...................... 701 BA
Outlays.............................................
O
Appropriation, current......................
BA
Outlays.............................................
O
Appropriation, current......................
BA
Outlays.............................................
O
Appropriation, current......................
BA
Outlays.............................................
O
3,477
3,529
Reinstated entitlement program for survivors under
Public Law 97-377:
Spending authority from offsetting
collections.................................... 701 BA
Outlays.............................................
0
Trust funds
Total General post fund, national
homes..........................................
1
3,344
Total, offsetting collections...........
25
25
1995
estimate
1
3,661
BA
Burial benefits and miscellaneous assistance:
Appropriation, current...................... 701
Outlays.............................................
Readjustment benefits:
Appropriation, current...................... 702
Spending authority from offsetting
collections....................................
Outlays.............................................
Appropriation, current......................
Outlays.............................................
-*
1994
estimate
1
3,529
0
Readjustment benefits (gross) .....
_*
BA
O
General post fund, national homes:
Appropriation, current...................... 705 BA
Appropriation, permanent................
BA
Outlays.............................................
O
BA
0
-6
-2 5
BA
O
Appropriation, permanent
Outlays............................
Total Pensions.................
-3
Total Special therapeutic and rehaO
1993
actual
Account
-7
-2
-2
-2
BA
O
23
22
15
17
25
25
Public Enterprise Funds:
Service-disabled veterans insurance fund:
Spending authority from offsetting
collections.................................... 701 BA
Outlays.............................................
O
47
42
37
48
45
48
47
42
37
48
45
48
-4 7
-3 7
-4 5
Service-disabled veterans insurance
fund (gross).................................
B*
B*
BA
O
Total, offsetting collections..............
BA
O
13,429
13,384
14,014
15,030
14,520
14,518
Total Service-disabled veterans in
surance fund (net).......................
Pensions:
Appropriation, current...................... 701 BA
3,476
3,398
3,343
Veterans reopened insurance fund:
Spending authority from offsetting
BA
O
701 BA
.......................................................
-5
11
78
77
2
74
390
THE BUDGET FOR FISCAL YEAR 1995
Department of Veterans Affairs—Continued
(In millions of dollars)
Outlays.............................................
Veterans reopened insurance fund
(gross)..........................................
O
BA
O
BA
O
Total, offsetting collections..............
Total Servicemen’s group life insur
ance fund (net)............................
71
BA
O
73
78
70
77
71
74
73
-7 7
-7 4
-8
-5
-1
395
443
440
545
453
496
395
443
440
545
453
496
-4 4 0
-4 5 3
48
105
42
Credit Accounts:
Guaranty and indemnity program account:
Appropriation, current...................... 704 BA
Outlays.....................................................0
Guaranty and indemnity fund liquidating account:
Appropriation, permanent................ 704 BA
Spending authority from offsetting
collections...........................................BA
Outlays.....................................................0
Guaranty and indemnity fund liq
uidating account (gross)..............
BA
O
Loan guaranty program account
Appropriation, current ...................... 704 BA
Outlays.....................................................0
Loan guaranty revolving fund liquidating account:
Spending authority from offsetting
collections.................................... 704 BA
Outlays.....................................................O
Loan guaranty revolving fund liq
uidating account (gross)..............
Direct loan program account:
Appropriation, current...................... 704
Limitation on direct loan activity......
Outlays.............................................
Direct loan revolving fund liquidating account:
Appropriation, permanent................ 704
Spending authority from offsetting
collections....................................
Outlays.............................................
Direct loan revolving fund liquidating
account (gross)............................
434
434
112..
247
296
374
256
297
360
399
296
374
256
297
-2 9 6
-2 5 6
112
152
78
42
207
207
96
96
78
78
Total, offsetting collections..............
Total Direct loan revolving fund liq
uidating account (net) .................
Education loan fund liquidating ac
count (gross) ...............................
BA
O
O
BA
O
Total National Service Life Insur
ance fund (net)............................
1,763
1,854
1,420
1,518
1,114
1,200
1,763
1,854
1,420
1,518
1,114
1,200
-1,420
-1,114
91
98
86
United States government life insur
ance fund (gross)........................
BA
0
Total, offsetting collections..............
1
3
1
(1)
3
1
-6
-8
-6
-5
5
(58)..
*
*
*
1
1
*
*
*
0
*
*
0
*
1
*
1
1
1
*
1
1
BA
O
United States government life insurance fund:
Appropriation, permanent................ 701 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
BA
O
-1
-1
-1
-1
-1
1
(2)
1
1
(2)
1
1
(2)
1
26
103
41
79
32
77
1,480
1,388
1,357
495
1,622
555
1,761
542
1,780
1,975
1,622
1,944
1,761
1,899
1,780
-5 5 5
-5 4 2
1,480
1,127
1,388
1,205
1,357
1,238
11
10
8
3
23
2
24
2
21
14
23
12
24
10
21
(1)
1
-7
-4 9 5
BA
O
Vocational rehabilitation loans program account
Appropriation, current...................... 702 BA
Limitation on direct loan activity......
0
Outlays.............................................
Trust funds
Post-Vietnam era veterans education account
Appropriation, permanent................ 702 BA
Outlays.............................................
O
National Service Life Insurance fund:
Appropriation, permanent................ 701 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
National Service Life Insurance fund
(gross)..........................................
1995
estimate
-1
Total, offsetting collections..............
(1 )
BA
BA
O
Total, offsetting collections..............
Total Education loan fund liquidating
account (net) ...............................
1994
estimate
-9
Native american veteran housing loan program ac
count
Appropriation, current...................... 704 BA
Limitation on direct loan activity......
Outlays.............................................
O
Education loan fund program account:
Appropriation, current...................... 702 BA
Limitation on direct loan activity......
O
Outlays.............................................
Education loan fund liquidating account:
Spending authority from offsetting
collections.................................... 702 BA
O
Outlays.............................................
-1,763
BA
O
Total, offsetting collections..............
Total Loan guaranty revolving fund
liquidating account (net)..............
522
522
-2 4 7
BA
O
Total, offsetting collections..............
Total Guaranty and indemnity fund
liquidating account (net)..............
902
902
1993
actual
Account
-3 9 5
Servicemen’s group life insurance fund:
Spending authority from offsetting
collections.................................... 701 BA
O
Outlays.............................................
Servicemen’s group life insurance
fund (gross).................................
70
1995
estimate
-7 8
BA
O
Total, offsetting collections..............
Total Veterans reopened insurance
fund (net).....................................
1994
estimate
1993
actual
Account
Total United States government life
insurance fund (net)....................
9
1
7
1
6
1
BA
O
9
1
7
1
6
1
-2
-2
BA
O
11
20
10
21
8
19
Veterans special life insurance fund:
Spending authority from offsetting
collections.................................... 701 BA
Outlays.............................................
O
241
185
246
208
250
213
241
185
246
208
250
213
BA
BA
O
-3
Veterans special life insurance fund
(gross)..........................................
BA
O
391
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Department of Veterans Affairs—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
-241
Total, offsetting collections..............
Total Veterans special life insurance
fund (net).....................................
1995
estimate
-2 4 6
-2 5 0
BA
O
-5 6
-3 9
-3 6
BA
O
19,036
19,261
19,209
20,922
19,800
19,982
BA
O
Total Federal funds Veterans Bene
fits Administration........................
1993
actual
Account
1,517
1,195
1,440
1,267
1,398
1,296
Federal funds
General and Special Funds:
General operating expenses:
Appropriation, current...................... 705 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Federal funds
General and Special Funds:
Construction, major projects:
Appropriation, current...................... 703 BA
Outlays.............................................
0
Construction, minor projects:
Appropriation, current...................... 703 BA
Outlays............................................
0
Grants tor construction of State extended care facili
ties:
Appropriation, current...................... 703 BA
Outlays............................................
0
Outlays for grants to State and local
governments................................
0
Grants for the construction of State veterans ceme
teries:
Appropriation, current...................... 705 BA
Outlays.............................................
0
Outlays for grants to State and local
governments................................
0
Grants to the Republic of the Philippines:
Appropriation, current...................... 703 BA
Outlays............................................
O
Public Enterprise Funds:
Parking garage revolving fund:
Appropriation, current...................... 703 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Parking garage revolving fund
(gross).........................................
BA
O
Total, offsetting collections..............
Pershing hall revolving fund (gross)
369
468
115
423
150
153
154
146
154
152
40
56
41
72
37
59
(56)
(72)
BA
O
7 05
Office of Inspector General:
Appropriation, current...................... 705 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
(59)
Office of Inspector General (gross) .
5
5
5
5
5
5
(5)
(5)
(5)
*
*
Total Office of Inspector General
(net)..............................................
*
*
1
1
1
2
8
3
5
4
8
5
5
3
12
-2
1
11
Total Federal funds Construction....
1
6
-3
1
1
BA
O
BA
O
571
314
641
217
1,066
238
1,046
1,029
1,046
1,044
1,066
1,085
1,046
-2 1 7
-2 3 8
812
829
827
849
847
808
31
31
33
*
31
1
32
1
33
31
31
32
32
33
33
-1
-1
31
30
31
31
33
33
71
71
73
*
67
*
71
73
71
67
71
71
73
73
*
-*
BA
O
71
66
71
71
73
72
Intragovemmental Funds:
Supply fund:
Spending authority from offsetting
collections.................................... 705 BA
Outlays.............................................
O
801
777
787
814
795
795
801
777
787
814
795
795
-801
-7 8 7
-7 9 5
Supply fund (gross) .........................
BA
O
Total, offsetting collections..............
Total Supply fund (net)....................
Total Trust funds Departmental Ad
ministration ...................................
622
218
1,046
-•
Total Federal funds Departmental
Administration..............................
BA
O
847
-*
Total National cemetery system
(net)..............................................
BA
O
Trust funds
National cemetary gift fund:
Appropriation, permanent................ 705 BA
Outlays.............................................
O
BA
O
BA
O
BA
O
Total, offsetting collections..............
1
12
National cemeteiy system (gross) ...
827
_*
National cemetery system:
Appropriation, current...................... 705 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Total, offsetting collections..............
Total Pershing hall revolving fund
(net).............................................
BA
O
Total, offsetting collections..............
-1
Total Parking garage revolving fund
(net).............................................
Pershing hall revolving fund:
Spending authority from offsetting
collections....................................
Outlays............................................
493
397
BA
O
812
-2 1 8
BA
O
Total, offsetting collections..............
Total General operating expenses
(net)..............................................
Construction
1995
estimate
D
epartm
ental Adm
inistration
General operating expenses (gross)
Total Trust funds Veterans Benefits
Administration..............................
1994
estimate
-2 4
28....
*
*
*
*
*
BA
O
914
901
929
978
952
913
BA
O
*
*
*
*
*
36,758
38,324
37,583
37,977
Sum ary
m
Federal funds:
(As shown in detail above)......................
BA
O
35,697
35,489
392
THE BUDGET FOR FISCAL YEAR 1995
Department of Veterans Affairs—Continued
(In millions of dollars)
Deductions for offsetting receipts:
Proprietary receipts from the public.... 702 BAA)
703 BA/O
704 BA/O
Total Federal funds.........................
Trust funds:
(As shown in detail above)......................
1994
estimate
1993
actual
Account
BA
O
BA
O
1995
estimate
' -2 3 4
' -1 7 8
J -5 0 6
J — 47
J -5 7 8
J -5 7 9
34,910
34,702
35,422
36,988
1,546
1,222
1,469
1,294
1993
actual
Account
-1 8 0
J -6 6 8
j
Deductions for offsetting receipts:
Proprietary receipts from the public.... 701 BAA)
702 BAA)
Total Trust funds
36,734
37,128
1,428
1,327
.............
BA
O
Interfund transactions ................................... 701 BA/O
702 BAA)
Total Department of Veterans Affairs
BA
O
1994
estimate
' —393
1995
estimate
J -1 6
J -3 1 7
J —3
J -3 0 4
J -1
1,137
814
1,149
974
1,123
1,022
J-2
J-2
J-2
J —26
J —41
J -3 2
36,019
35,487
36,528
37,919
37,823
38,115
Environmental Protection Agency
(In millions of dollars)
Federal funds
General and Special Funds:
Program and research operations:
Appropriation, current...................... 304 BA
Spending authority from offsetting
BA
collections....................................
O
Outlays.............................................
Program and research operations
(gross)..........................................
BA
O
Office of the Inspector General:
Appropriation, current...................... 304 BA
Spending authority from offsetting
BA
collections....................................
O
Outlays.............................................
Office of the Inspector General
(gross)..........................................
Research and development:
Appropriation, current...................... 304 BA
Spending authority from offsetting
BA
collections....................................
O
Outlays.............................................
Research and development (gross) .
BA
u
Total, offsetting collections..............
Total Research and development
(net)..............................................
BA
O
Abatement, control, and compliance:
304 BA
Appropriation current
Spending authority from offsetting
collections....................................
BA
Limitation on administrative and
other expenses............................
O
Outlays.............................................
Outlays for grants to State and local
governments................................
828
851
963
Abatement, control, and compliance
(gross)..........................................
9
884
25
886
25
984
836
884
876
886
988
984
-2 5
-2 5
828
875
851
861
963
959
26
28
29
16
38
17
44
16
45
43
38
45
44
45
45
-1 7
-1 6
26
22
28
27
29
29
323
339
364
14
308
30
368
30
385
337
308
369
368
394
385
-3 0
-3 0
323
293
339
338
364
355
Total Abatement, control, and com
pliance (net).................................
(475)
(485)
BA
O
1,361
1,280
1,413
1,404
1,588
1,493
-2 3
-6 0
-6 0
1,337
1,256
1,353
1,344
1,528
1,433
134
21
18
80
44
66
2,550
2,130
2,477
2,408
1,950
2,458
(2,109)
(2,378)
a -22
1,353
1,528
23
60
60
(274)
1,280
(283)
1,404
1,493
BA
O
BA
O
Total, offsetting collections..............
Total Revolving fund for certification
and other services (net)..............
1,337
BA
O
Payment to the hazardous substance superfund:
Appropriation, current...................... 304 BA
Outlays.............................................
O
Exxon Valdez Settlement fund:
Appropriation, permanent................ 304 BA
Public Enterprise Funds:
Revolving fund for certification and other services:
Spending authority from offsetting
collections.................................... 304 BA
O
Outlays.............................................
Revolving fund for certification and
other services (gross) .................
1995
estimate
(488)
Buildings and facilities:
Appropriation, current...................... 304 BA
O
Outlays.............................................
Water infrastructure financing:
Appropriation, current...................... 304 BA
O
Outlays.............................................
Outlays for grants to State and local
O
governments................................
O
Outlays.............................................
Outlays for grants to State and local
governments................................
O
Appropriation, current......................
BA
O
Outlays.............................................
Outlays for grants to State and local
governments................................
0
Total Water Infrastructure financing
1994
estimate
O
Total, offsetting collections..............
-1 4
BA
O
1993
actual
Account
-1 6
BA
O
Total, offsetting collections..............
Total Office of the Inspector General
(net)..............................................
1995
estimate
-9
BA
O
Total, offsetting collections..............
Total Program and research oper
ations (net) ..................................
1994
estimate
1993
actual
Account
*(-2 2 )
Reregistration and expedited processing revolving
fund:
Spending authority from offsetting
collections.................................... 304 BA
Outlays.............................................
O
a (-8 4 )
'700
714
'(14)
2,550
2,130
2,477
2,385
2,650
2,389
250
250
250
250
250
250
4
2
2
2
1
2
2
2
2
2
1
2
2
-2
BA
O
(2,419)
-8 4
a
-2
-2
_*
16
20
14
16
14
15
393
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Environmental Protection Agency—Continued
(In millions of dollars)
1993
actual
Account
Spending authority from offsetting
collections....................................
Outlays.............................................
Reregistration and expedited proc
essing revolving fund (gross)......
BA
0
16
20
-16
BA
0
19
19
-14
-5
4
2
6
11
-*
Limitation on administrative ex
penses .........................................
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Oil spill response:
Appropriation, current...................... 304 BA
Spending authority from offsetting
collections....................................
BA
Limitation on administrative and
other expenses............................
Outlays.............................................
O
Oil spill response (gross) ................
1994
estimate
31
(70).....
10
(8)
2
17
9
(17)
Total Oil spill response (net)...........
77
(59)
(66)
(69)
21
21
23
15
15
6
(8)
34
37
21
6
36
34
38
37
-1 5
BA
O
(7)
78
-1 5
BA
O
21
6
21
19
23
22
Miscellaneous contributed funds:
Appropriation, permanent................ 304 BA
Outlavs.............................................
0
*
*
*
*
*
5,484
4,867
5,315
5,314
5,828
5,491
J -9
J -11
J -3 8
BA
O
5,475
4,857
5,303
5,303
5,790
5,453
BA
O
1,694
1,504
1,594
1,711
1,600
1,685
J -1 8 2
J -2 2 5
J -2 2 5
1,512
1,323
1,369
1,486
1,375
1,460
J -2 5 0
J -2 5 0
J -2 5 0
6,737
5,930
6,423
6,539
6,915
6,663
(9)
Sum ary
m
Federal funds:
(As shown in detail above)......................
1,589
1,500
24
60
60
(260)
1,442
(280)
1,673
1,646
(187)
(212)
(148)
1,613
1,442
BA
0
1,497
1,557
1,673
1,560
1,646
-6 0
1,589
1,418
BA
0
-6 0
1,497
1,613
1,500
1,586
Leaking underground storage tank trust fund:
Appropriation, current...................... 304 BA
84
76
BA
O
Deductions for offsetting receipts:
Offsetting governmental receipts........ 304 BA/O
Total Federal funds.........................
-2 4
1995
estimate
(7)
80
Total, offsetting collections..............
Total, offsetting collections..............
Total
Hazardous
substance
superfund (net)............................
14
16
1993
actual
Account
bS
B4
Abatement, control, and compliance direct loan liq
uidating account:
Outlays............................................. 304 0
Credit Accounts:
Abatement, control, and compliance loan program ac
count:
Appropriation, current...................... 304 BA
Limitation on direct loan activity......
Outlays.............................................
0
Outlays for grants to State and local
governments................................
0
Trust funds
Hazardous substance superfund:
Appropriation, current...................... 304 BA
Spending authority from offsetting
collections....................................
BA
Limitation on administrative ex
penses .........................................
Outlays.............................................
0
Outlays for grants to State and local
governments................................
0
Hazardous substance superfund
(gross)..........................................
1995
estimate
BA
0
Total, offsetting collections..............
Total Reregistration and expedited
processing revolving fund (net) ...
1994
estimate
Trust funds:
(As shown in detail above)......................
Deductions for offsetting receipts:
Proprietary receipts from the public.... 304 BA/O
Total Trust funds .............................
BA
O
Interfund transactions ................................... 304 BA/O
Total Environmental Protection
Agency.........................................
77
BA
O
General Services Administration
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
estimate
Outlays.............................................
Federal funds
General and Special Funds:
1,479
172
...........
............
Total, offsetting collections..............
-*
Total Federal funds Real Property
Activities.......................................
Intragovemmental Funds:
Federal buildings fund:
Appropriation, current...................... 804 BA
Authority to borrow, permanent
BA
Spending authority from offsetting
collections....................................
BA
Limitation on program level (obliga
tions) ...........................................
Outlays............................................
O
Appropriation, current......................
BA
BA
0
324
328
288
53
4,637
5,643
5,052
(4,878)
5,454
(5,283)
6,342
" -1 2 8
(4,487)
5,666
1994
estimate
0
Federal buildings fund (gross)
R Property Activities
eal
Construction and acquistion:
Appropriation, current...................... 804 BA
Outlays.............................................
O
1993
actual
Account
Total Federal buildings fund (net)....
" -5 4
1995
estimate
" -3 4
5,289
5,454
5,857
6,289
5,052
5,631
-4,881
-5,458
-5,103
BA
O
408
573
398
830
-5 1
528
BA
O
408
573
398
830
1,428
700
394
THE BUDGET FOR FISCAL YEAR 1995
General Services Administration—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
estimate
Federal funds
General supply fund (gross)............
Total, offsetting collections..............
Total General supply fund (net)......
Total Federal funds Personal Prop
erty Activities ...............................
10
9
18
18
17
17
2,948
2,914
2.776
2.776
2.807
2.807
2,948
2,914
2,776
2,776
2,807
2,807
-2,948
BA
0
-2,776
-2,807
BA
0
- 3 4 ...........................................
BA
0
10
-2 4
18
18
17
17
Federal funds
General and Special Funds:
Operating expenses, general services administration:
Appropriation, current...................... 804 BA
Spending authority from offsetting
collections....................................
BA
O
Outlays.............................................
Operating expenses, general serv
ices administration (gross)..........
Total Operating expenses, general
services administration (net).......
Total, offsetting collections..............
Total Information technology fund
(net)..............................................
Total Office of Inspector General
(net)..............................................
1,178
1,193
1,146
1,205
1,341
1,348
1,178
1,193
1,146
1,205
1,341
1,348
-1,146
-1,341
15
58
7
BA
O
Federal Property Resources Activities
BA
O
7
2
*
1
Total Consumer information center
fund (net).....................................
2
1_
Total Federal funds Federal Prop
erty Resources Activities.............
BA
O
2
BA
O
2
9
136
134
53
195
53
188
53
186
203
195
189
188
187
186
-5 3
-5 3
150
142
136
135
134
134
35
35
33
*
*
*
33
35
33
35
33
35
35
33
33
-*
35
33
35
35
33
33
2
2
3
3
3
3
5
4
*
2
2
2
O
4
(6)
4
4
(6)
6
4
(6)
6
BA
O
6
4
6
6
6
6
BA
O
Total, offsetting collections..............
Total, offsetting collections..............
Total Disposal of surplus real and
related personal property (net) ....
Consumer information center fund
(gross)..........................................
150
-*
Allowances and office staff for former Presidents:
Appropriation, current...................... 802 BA
O
Outlays.............................................
Expenses, presidential transition:
Appropriation, current...................... 802 BA
Outlays.............................................
0
Public Enterprise Funds:
Consumer information center fund:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
Federal funds
General and Special Funds:
Real property relocation:
Outlays............................................. 804 O
Disposal of surplus real and related personal property:
Appropriation, permanent ................ 804 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Disposal of surplus real and related
personal property (gross)............
BA
O
Total, offsetting collections..............
-1,178
BA
O
BA
O
Office of Inspector General:
Appropriation, current...................... 804 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
O
Office of Inspector General (gross) .
Information technology fund (gross)
1995
estimate
-5 3
BA
O
Total, offsetting collections..............
inform
ation Resources M
anagem Service
ent
Federal funds
Intragovernmental Funds:
Information technology fund:
Spending authority from offsetting
collections.................................... 804 BA
Outlays .
1994
General Activities
Personal Property Activities
General and Special Funds:
Expenses of transportation audit contracts and contract
administration:
Appropriation, permanent................ 804 BA
Outlays.............................................
0
Intragovernmental Funds:
General supply fund:
Spending authority from offsetting
collections.................................... 804 BA
.................................
0
Outlays.............................................
1993
actual
Account
-4
-*
-4
-4
BA
O
2
*
2
2
2
2
Intragovernmental Funds:
Working capital fund:
Spending authority from offsetting
collections.................................... 804 BA
Outlays.............................................
O
181
162
194
194
196
196
BA
O
181
182
194
194
196
196
-181
-1 9 4
-1 9 6
Working capital fund (gross)...........
___
1
Total, offsetting collections..............
Total Working capital fund (net).
BA
O
395
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
General Services Administration—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
estimate
Deductions for offsetting receipts:
Proprietary receipts from the public .
Trust funds
Unconditional gifts of real, personal, or other property:
Outlays............................................. 804 0
Total Federal funds General Activi
ties ...............................................
Total Federal funds.........................
BA
0
Total Trust funds General Activities .
195
182
0
176
175
172
172
-*
Federal funds:
(As shown in detail above)......................
Trust funds:
(As shown in detail above)......................
Total General Services Administra
tion ...............................................
Sum ary
m
615
754
BA
0
595
1,091
1993
actual
Account
804 BA/O
1994
estimate
j -11
1995
estimate
-4 3
J -5 2
BA
O
604
743
552
1,048
1,567
852
0
_*
*
BA
O
604
743
552
1,048
j
1,567
852
1,619
904
National Aeronautics and Space Administration
(In millions of dollars)
1993
actual
Account
Federal funds
General and Special Funds:
Human space flight:
Appropriation, current...................... 252 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Human space flight (gross).............
BA
0
Total, offsetting collections..............
Total Human space flight (net) .......
BA
0
BA
0
Total, offsetting collections..............
Total (Space flight, research, and
supporting activities) (net)...........
BA
0
BA
0
Total Science, Aeronautics and
Technology..................................
1995
estimate
BA
BA
104
2,042
5,720
100
3,955
5,820
3,955
5,720
3,855
5,003
415
2,897
5,417
2,897
5,003
2,482
112
651
Total, offsetting collections .
Total (Space flight, research, and
supporting activities) (net)...........
-104
BA
2,291
1,939
O
(Air transportation):
(Appropriation, current)....
(Spending authority from
collections)...................
(Outlays)...........................
Mission support (gross) .
402 BA
372
BA
4
368
O
BA
2,667
2,306
O
Total, offsetting collections.....
Total (Air transportation) (net) .
BA
372
364
O
Total Mission support.............
BA
2,663
2,302
0
Research and development
(Space flight, research, and supporting
activities):
(Appropriation, current).................... 252 BA
(Spending authority from offsetting
collections)...................................
(Outlays)...........................................
O
(Appropriation, current)....................
BA
(Outlays)...........................................
O
-1 1 2
Total, offsetting collections..............
BA
0
539
Total (Space flight, research, and
supporting activities) (net)...........
BA
0
5,901
3,021
2,291
2,395
2,042
O
Research and development (gross) .
Mission support
(Space flight, research, and supporting
activities):
(Appropriation, current).................... 252 BA
Mission support (gross).....
1994
estimate
O
6,013
3,133
Total, offsetting collections..............
Total (Air transportation) (net).........
1993
actual
Account
(Spending authority from offsetting
collections)...................................
(Outlays)...........................................
-415
(Air transportation):
(Appropriation, current).................... 402 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)..........................................
0
Science, Aeronautics and Tech
nology (gross)..............................
1995
estimate
-1 0 0
Science, Aeronautics and Technology
(Space flight, research, and supporting
activities):
(Appropriation, current).................... 252 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)...........................................
0
Science, Aeronautics and Tech
nology (gross)..............................
1994
estimate
(Air transportation):
(Appropriation, current)....................
(Spending authority from offsetting
collections)...................................
(Outlays)...........................................
(Appropriation, current)....................
BA
O
6,208
6,700
6,502..
6,905
* -6 2
* -3 7
6,657
6,700
7,023
6,868
-4 4 9
6,208
6,251
6,440
6,285
BA
866
1,027
BA
O
BA
93
927
107
1,047
*-2 6
*-2 1
- 5 8 3 .....
BA
O
2,586
2,565
2,565
399
396
THE BUDGET FOR FISCAL YEAR 1995
National Aeronautics and Space Administration—Continued
(In millions of dollars)
1993
actual
Account
1994
Research and development (gross) .
BA
0
7,166
7,179
-9 3
Total, offsetting collections..............
Total (Air transportation) (net).........
BA
0
Space flight control, and data communications:
Appropriation, current...................... 252
Spending authority from offsetting
collections....................................
Outlays.............................................
Appropriation, current......................
Outlays.............................................
390
7,074
7,086
7,441
7,209
2,956
5,059
4,854
BA
0
BA
0
208
5,234
219
4,983
" -3 2
"-1 7
BA
0
-2 0 8
Total Construction of facilities.........
1,724
BA
Research and program management
(gross) ..........................................
BA
O
Total, offsetting collections..............
Total (Space flight, research, and
supporting activities) (net)...........
1,339
1,328
-1 9
BA
O
BA
O
5,059
5,025
4,822
4,747
Total (Air transportation) (net) ........
1,724
Total Research and program man
agement .......................................
462
306
1
493
462
493
- 1 .....
462
492
287
453
65
65
BA
O
289
454
-1
BA
O
1
457
" -1 8
" -3
212
85
" -7
"-1
" -9
391
391
65
65
205
84
50
BA
O
526
557
493
536
440
Federal funds:
(As shown in detail above)......................
Trust funds:
(As shown in detail above) ......................
315
332
3
315
4
332
*13
*1 2
*1
1,699
1,678
96
1,638
1,624
1,304
19
1,328
77
19
-3
-4 ..
BA
O
315
312
345
341
20
BA
O
1,635
1,622
1,696
1,675
96
15
15
15
15
16
16
*
*
1
1
1
2
1
1
*
31
1,322
BA
O
14,309
14,304
14,466
14,182
14,300
14,410
BA
0
2
1
1
2
1
1
j —*
j —*
Deductions for offsetting receipts:
Intrafund transactions........................... 503 BA/O
Total Trust funds .............................
1,320
77
-3 1 ..
Sum ary
m
53
BA
O
Research and program management
(Space flight, research, and supporting
activities):
(Appropriation, current).................... 252 BA
(Spending authority from offsetting
BA
collections)...................................
(Outlays)...........................................
O
1,382
1,365
1,350
1,334
Office of Inspector General:
Appropriation, current...................... 252 BA
Outlays.............................................
O
Trust funds
Endeavor teacher fellowship trust fund:
Appropriation, permanent................ 503 BA
Outlays.............................................
O
Science, space, and technology education trust fund:
Appropriation, permanent................ 503 BA
Outlays.............................................
0
Miscellaneous trust funds:
Appropriation, permanent................ 252 BA
H -4
400
*4
1,320
1,309
(Air transportation):
(Appropriation, current).................... 402 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)...........................................
O
(Appropriation, current)....................
BA
(Outlays)...........................................
O
Research and program management
(gross) ..........................................
1995
estimate
*47
*43
Total, offsetting collections..............
BA
O
1994
estimate
0
- 2 1 9 .....
(Air transportation):
(Appropriation, current).................... 402 BA
(Outlays)...........................................
O
(Appropriation, current)....................
BA
(Outlays)...........................................
O
Total (Air transportation)..................
" -1 1
5,040
4,966
Total, offsetting collections..............
Total (Space flight, research, and
supporting activities) (net)...........
1,735
5,267
5,234
Construction of facilities
(Space flight, research, and supporting
activities):
(Appropriation, current).................... 252 BA
(Spending authority from offsetting
BA
collections)...................................
(Outlays)...........................................
O
BA
(Appropriation, current)....................
(Outlays)...........................................
O
Construction of facilities (gross)......
2,956
- 1 0 7 .....
BA
Total, offsetting collections..............
Total Space flight, control, and data
communications (net)..................
7,548
7,316
1,001
924
0
Total Research and development ....
(Appropriation, current) .
(Outlays).......................
866
835
BA
1993
actual
Account
H - 16
(Outlays)...........................................
Space flight, control, and data com
munications (gross) .....................
1995
estimate
Total National Aeronautics and
Space Administration ..................
73
BA
O
2
1
1
2
1
1
BA
O
14,310
14,305
14,468
14,183
14,301
14,411
nel Management
of dollars)
1994
estimate
1993
actual
Account
1995
estimate
Spending authority from offsetting
collections....................................
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current ,
805 BA
118
119
113
1993
actual
Account
BA
1994
estimate
120
131
1995
estimate
133
397
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Office of Personnel Management—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
estimate
1993
actual
Account
Outlays............................................
0
249
236
242
Outlays.............................................
Salaries and expenses (gross) .......
BA
0
239
249
250
236
246
242
Employees health benefits fund
(gross) ..........................................
-1 2 0
-131
-1 3 3
118
128
119
105
113
109
4
4
1994
estimate
1995
estimate
O
14,508
15,359
16,759
BA
O
15,393
14,508
16,321
15,359
17,655
16,759
-15,393
-16,321
-17,655
-8 8 6
-9 6 2
-8 9 6
2,386
(1)
HI
\
1,299
2,477
(1)
H)
\
1,379
2,564
(1)
n)
\
1,447
4
Total, offsetting collections..............
Total Salaries and expenses (net) ...
BA
0
Office of Inspector General:
Appropriation, current ...................... 805 BA
Spending authority from offsetting
BA
collections....................................
0
Outlays............................................
6
10
7
12
6
10
BA
0
11
10
11
12
10
10
Office of Inspector General (gross) .
-6
Total, offsetting collections..............
Total Office of Inspector General
(net)..............................................
BA
0
Government payment for annuitants, employees health
benefits:
Appropriation, current...................... 551 BA
0
Outlays.............................................
Government payment for annuitants, employee life in
surance benefits:
Appropriation, current...................... 602 BA
Outlays.............................................
0
Payment to civil service retirement and disability fund:
Appropriation, current...................... 805 BA
Appropriation, permanent................
BA
Outlays............................................
0
Appropriation, current......................
BA
Outlays.............................................
0
Total Payment to civil service retire
ment and disability fund..............
BA
0
Intragovernmental Funds:
Revolving fund:
Spending authority from offsetting
collections.................................... 805 BA
Outlays.............................................
0
Revolving fund (gross) ....................
BA
0
Trust funds
Civil service retirement and disability fund:
Appropriation, permanent................ 602 BA
Salaries and expenses....................
Office of inspector general..............
Merit systems protection board.......
Outlays............................................
O
Employees health benefits fund:
Spending authority from offsetting
collections.................................... 551 BA
Salaries and expenses....................
Office of inspector general..............
4
6
-6
4
4
Total Employees health benefits
fund (net) .....................................
Employees life insurance fund:
Spending authority from offsetting
collections....................................
Salaries and expenses....................
Office of inspector general..............
Outlays.............................................
Spending authority from offsetting
collections....................................
Outlays.............................................
Employees life insurance fund
(gross)..........................................
BA
O
BA
O
4,149
3,765
3,805
3,880
4,211
4,413
7 —13
7 -4
BA
O
Total, offsetting collections..............
2,386
1,299
2,477
1,379
2,552
1,442
-2,386
BA
o
-2,477
-2,564
'1 3
-1,087
-1,098
-1,110
8
/*\)
(
8
8
/*\
()
6
8
\)
8
8
8
8
6
8
8
Total Employees life insurance fund
(net)..............................................
12
12
2
13
19
17
6,711
13,082
19,793
6,925
13,314
20,239
7,340
13,301
20,640
y -2 4 1
7 -2 4 1
19,793
19,793
20,239
20,239
20,400
20,400
O
Retired employees health benefits fund:
Spending authority from offsetting
collections.................................... 551 BA
Salaries and expenses....................
Outlays.............................................
O
Retired employees health benefits
fund (gross) .................................
BA
O
Total, offsetting collections..............
-8
-8
-8
-*
-•
-*
Total Retired employees health ben176
171
215
211
176
171
215
211
234
234
-2 1 5
BA
O
234
234
-1 7 6
BA
0
Total, offsetting collections..............
Total Revolving fund (net)...............
4
4
-7
Total, offsetting collections..............
-2 3 4
-5
Sum ary
m
Federal funds:
(As shown in detail above) ....... ..............
Trust funds:
(As shown in detail above) ..... ..............
- 4 ..
BA
O
24,078
23,697
24,169
24,238
24,746
24,943
BA
O
35,104
32,933
36,314
34,142
37,796
35,656
j -1
7- *
7- '
35,103
32,933
36,314
34,142
37,795
35,655
j-4 2
J -19,793
7 -4 0
' - 20,239
J -3 8
20,400
39,345
36,794
40,204
38,101
42,103
40,160
Deductions for offsetting receipts:
Intrafund transactions........................... 602 BA/O
35,104
(74)
(1)
(2)
34,906
36,314
(72)
(1)
(2)
36,202
37,796
(78)
(1)
(2)
37,662
15,393
(17)
(5)
16,321
(16)
(5)
17,655
(16)
(5)
Total Trust funds .............................
BA
O
Interfund transactions ................................... 602 BA/O
805 BA/O
Total Office of Personnel Manage
ment .............................................
BA
O
398
THE BUDGET FOR FISCAL YEAR 1995
Small Business Administration
(In millions of dollars)
1993
actual
Account
Total Surety bond guarantees re
volving fund (net) ........................
259
285
497
248
545
* —13
*-1 0
202
437
*-3
534
497
494
534
418
435
-2 4 8
-2 0 2
249
212
246
286
216
233
8
9
BA
0
8
8
8
8
13
7
5
12
21
22
38
19
39
25
21
29
36
24
39
453
391
209
BA
O
148
453
171
391
130
209
Disaster loan fund liquidating account:
Spending authority from offsetting
collections.................................... 453 BA
Outlays.............................................
O
503
116
454
79
379
60
503
116
454
79
379
60
-5 0 3
-4 5 4
-3 7 9
-3 8 6
-3 7 6
-3 1 9
2
20
2
10
2
5
25
20
2
10
2
5
-1 2
-2 2
7
16
5
20
506
429
308
418
446
432
229
3
3
BA
0
691
735
577
430
564
457
920
735
580
430
567
457
-691
-5 7 7
-5 6 4
BA
0
229
43
3
-1 4 7
3
-1 0 7
Disaster loan program account:
Appropriation, current...................... 453 BA
BA
Appropriation, permanent................
148
76
95
Total, offsetting collections..............
Total Disaster loan fund liquidating
account (net) ...............................
BA
O
Pollution control equipment fund liquidating account:
Appropriation, permanent................ 376 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Pollution control equipment fund liq
uidating account (gross)..............
Total Pollution control equipment
fund liquidating account (net) ,
23
BA
O
-2
BA
O
Business assistance trust fund
(gross)..........................................
-2
3
1
1
1
1
1
1
BA
O
8
1
1
Total, offsetting collections..............
Total Business assistance trust fund
(net)..............................................
-2
23
18
Trust funds
Business assistance trust fund:
Spending authority from offsetting
collections.................................... 376 BA
Outlays.............................................
O
130
BA
0
Total, offsetting collections..............
Total Business loan fund liquidating
account (net) ...............................
BA
O
-1 9
13
9
Disaster loan fund liquidating ac
count (gross) ...............................
Total, offsetting collections..............
BA
0
Credit Accounts:
Business loan program account
Appropriation, current...................... 376 BA
Outlays.............................................
0
Business loan fund liquidating account
Appropriation, permanent................ 376 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
0
Business loan fund liquidating ac
count (gross) ...............................
1995
estimate
O
216
-2 8 5
Total, offsetting collections..............
1994
estimate
Total Disaster loan program account
Office of Inspector General:
Appropriation, current...................... 376 BA
Outlays.............................................
0
Public Enterprise Funds:
Surety bond guarantees revolving fund:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Surety bond guarantees revolving
fund (gross).................................
1993
actual
Account
249
BA
0
Total, offsetting collections..............
Total Salaries and expenses (net) ...
1995
estimate
Outlays.............................................
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections........................................... BA
Outlays..................................................... 0
Appropriation, current............................. BA
Outlays..................................................... 0
Salaries and expenses (gross) .......
1994
estimate
1
1
1
1
-1
-1
BA
O
-1
742
604
809
478
742
604
809
478
*
Sum ary
m
Federal funds:
(As shown in detail above)......................
Trust funds:
(As shown in detail above)......................
Total Small Business Administration
BA
O
1,177
785
BA
O
*
BA
O
1,177
785
Other Independent Agencies
(In millions of dollars)
1993
Account
1994
estimate
1995
estimate
1993
actual
Account
Adm
inistrative Conference of the U
nited States
Outlays.....................................
Federal funds
Salaries and expenses (gross)
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 751 BA
Spending authority from offsetting
collections....................................
BA
BA
0
2
*
1994
estimate
1995
399
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Other Independent Agencies—Continued
(In millions of dollars)
1993
actual
Account
1994
Total, offsetting collections..............
Total Salaries and expenses (net) ...
1995
estimate
1993
actual
Account
1995
estimate
Total, offsetting collections..............
BA
Total Salaries and expenses (net) ...
0
BA
0
Trust funds
Gifts and bequests:
Appropriation, permanent................ 751 BA
Outlays.............................................
0
Trust funds
Donations:
Appropriation, permanent................ 303 BA
Outlays.............................................
0
Advisory Comm
ission on Conferences in Ocean Shipping
Federal funds
General and Special Funds:
Salaries and expenses:
Outlays............................................. 403 0
Advisory Commission on Intergovernm
ental Relations
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 808 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Am
erican B
attle M
onum
ents Commission
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 705 BA
BA
Appropriation, permanent................
Outlays............................................
O
Total Salaries and expenses...........
BA
O
Foreign currency fluctuations:
Appropriation, permanent................ 705 BA
19
20
20
19
20
20
20
_________ 19
20
20
20
20
20
20
20
20
190
249
187
*
145
* .....................
149
180
.......
- * .........
Trust funds
Contributions:
Appropriation, permanent................ 705 BA
Outlays.............................................
O
BA
Salaries and expenses (gross)
1994
estimate
4
2
0
Total, offsetting collections..............
Total Salaries and expenses (net) ...
- 1
Total Federal funds American Battle
Monuments Commission.............
BA
0
Total Trust funds American Battle
Monuments Commission.............
Trust funds
Contributions:
Appropriation, permanent................ 808 BA
0
Outlays............................................
BA
BA
0
Deductions for offsetting receipts:
Proprietary receipts from the public.... 808 BA/O
Total Trust funds
Appalachian regional development
programs (gross) .........................
BA
O
Total Advisoiy Commission on Inter
governmental Relations...............
Total Appalachian regional develop
ment programs (net) ...................
Advisory Council on H
istoric Preservation
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 303 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
4
2
BA
O
Total, offsetting collections..............
BA
O
Salaries and expenses (gross) .......
BA
O
Federal funds
General and Special Funds:
Appalachian regional development programs:
Appropriation, current...................... 452 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments ................................
O
0
Trust funds:
(As shown in detail above) ,
19
_________ 19
Appalachian Regional Commission
Sum ary
m
Federal funds:
(As shown in detail above)
BA
O
BA
O
(138)
(143)
(174)
190
145
249
149
187
180
- *
BA
O
Trust funds
Miscellaneous trust funds:
Appropriation, permanent................ 452 BA
Outlays.............................................
O
190
249
187
________ 145________ 149________ 180
5
5
5
5
5
5
BA
O
190
145
249
149
187
180
BA
O
5
5
5
5
5
5
3
1
3
3
3
Sum ary
m
Federal funds:
(As shown in detail above) ......................
Trust funds:
(As shown in detail above) ......................
400
THE BUDGET FOR FISCAL YEAR 1995
Other Independent Agencies—Continued
(In millions of dollars)
Account
1993
actual
Deductions for offsetting receipts:
Proprietary receipts from the public.... 452 BAA)
Total Trust funds .............................
Total Appalachian Regional Com
mission .........................................
1995
estimate
Account
j -2
2
3
2
3
2
3
j -2
J-2
J -2
190
145
249
149
187
180
BA
O
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 751 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
169
1995
182
198
2
2
4
4
3
3
*
3
*
3
3
3
3
BA
O
3
3
3
3
3
3
3
3
-•
BA
O
3
3
Arm C
s ontrol and Disarm ent Agency
am
Federal funds
General and Special Funds:
Arms control and disarmament activities:
Appropriation, current...................... 153 BA
Outlays.............................................
O
Chem Safety and H
ical
azard Investigation Board
Federal funds
General and Special Funds:
Chemical safety and hazard investigation board:
Appropriation, current...................... 304 BA
.....................
Outlays.............................................
0
.....................
Christopher Columbus Quincentennary Jubilee Commission
3
Total, offsetting collections..............
Total Salaries and expenses (net) ...
0
1994
estimate
j -2
Architectural and Transportation B
arriers Com
pliance Board
Salaries and expenses (gross) .......
1993
actual
Outlays.............................................
j -2
BA
O
Interfund transactions ................................... 452 BA/O
1994
estimate
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 376 BA
Outlays.............................................
0
Trust funds
Gifts and donations:
Appropriation, permanent................ 376 BA
Outlays.............................................
0
Christopher Columbus Fellowship Foundation
Trust funds
Christopher Columbus Fellowship Foundation:
Appropriation, permanent................ 502 BA
Outlays.............................................
0
8
*
*
1
Citizens’ Commission on Public Service and Compensation
46
50
54
54
61
59
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 805 BA
*
- * ....
B Goldwater Scholarship and Excellence in Education Foundation
arry
Trust funds
Barry Goldwater Scholarship and Excellence in Edu
cation Foundation:
Appropriation, permanent................ 502 BA
Outlays.............................................
O
Commission for the Preservation of America’s H
eritage Abroad
4
3
4
3
4
3
210
216
257
216
Board for International Broadcasting
Federal funds
General and Special Funds:
Grants and expenses:
Appropriation, current...................... 154 BA
Outlays.............................................
O
Israel relay station:
Appropriation, current...................... 154 BA
Outlays.............................................
O
Appropriation, current......................
BA
Outlays.............................................
O
Total Israel relay station..................
Total Federal funds Board for Inter
national Broadcasting..................
220
242
-1 8 0
4
BA
O
-1 8 0
4
BA
O
40
246
Commission of Fine Arts
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 451 BA
Outlays.............................................
O
National capital arts and cultural affairs:
Appropriation, current...................... 503 BA
Outlays.............................................
O
11
*-2
H- 2
-2
9 .......
208
225
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 153 BA
Outlays.............................................
O
Trust funds
Gifts and donations:
Appropriation, permanent................ 153 BA
Outlays.............................................
O
257
216
Total Federal funds Commission of
Fine A rts......................................
BA
O
1
1
1
1
7
7
8
8
8
8
8
8
C
entral Intelligence Agency
Federal funds
General and Special Funds:
Payment to the Central Intelligence Agency retirement
and disability fund:
Appropriation, current...................... 054 BA
Commission on Agricultural W
orkers
169
182
198
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 352 BA
Outlays.............................................
O
1...
1
7
7
401
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Other Independent Agencies—Continued
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
estimate
1993
actual
Account
Commission on C Rights
ivil
1994
estimate
1995
estimate
Com unity Investm Program
m
ent
Federal funds
Federal funds
General and Special Funds:
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 751 BA
Outlays.............................................
0
8
8
10
10
Community investment program:
Appropriation, current...................... 451 BA
Advance appropriation.....................
BA
Total Community investment pro
gram .............................................
Commission on N
ational and Com unity Service
m
BA
.....................
225..
225
-2 2 5 ..
-2 2 5 ..
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 808 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Outlays for grants to State and local
governments................................
Salaries and expenses (gross)
BA
O
Total, offsetting collections..............
Total Salaries and expenses (net) ...
Com unity M
m
anagem Staff
ent
Federal funds
78..
General and Special Funds:
Community management account:
Appropriation, current...................... 054 BA
Outlays.............................................
O
40..
(8)
136.....................
- 4 0 ...........................................
BA
O
151
87
93
94
48
42
40
1
43
1
45
1
42
49
43
43
45
41
42
(136).....................
118
51
78
14
78
11
136.....................
Comm
ission on the Bicentennial of the U Constitution
.S
Consum Product Safety Commission
er
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 554 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Salaries and expenses (gross) .......
Federal funds
General and Special Funds:
Salaries and expenses:
Outlays............................................ 808 O
BA
O
Total, offsetting collections..............
Total Salaries and expenses (net) ...
-1
BA
O
-1
48
42
-1
42
44
40
41
370
610
Com ittee for Purchase from People who are B or Severly Disabled
m
lind
Federal funds
Corporation for N
ational and Com unity Service
m
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 505 BA
Outlays............................................
O
Federal funds
2
2
2
2
2
2
Com odity Futures Trading Commission
m
Federal funds
General and Special Funds:
Commodity Futures Trading Commission:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Commodity Futures Trading Com
mission (gross) ............................
*
48
BA
O
47
48
52
*
*
47
51
48
47
_*
BA
O
-*
47
48
47
47
Com unity Developm Financial Institutions
m
ent
Federal funds
Credit Accounts:
Community development financial institutions fund pro
gram account:
Appropriation, current...................... 451 BA
Outlays............................................
O
47
National and community service programs, operating
Appropriation, current...................... 506 BA
Spending authority from offsetting
collections...........................................BA
Outlays
O
Outlays for grants to State and local
governments........................................O
98
375
(45)
(185)
National and community service pro
grams,
operating
expenses
(gross)..........................................
372
610
375
2..
BA
O
Total, offsetting collections..............
Total Commodity Futures Trading
Commission (net) ........................
47
General and Special Funds:
52
51
-*
52
51
Total, offsetting collections..............
Total National and community serv
ice programs, operating expenses
(net)..............................................
-
BA
2 ..
370
96
610
375
202
205
239
5
213
4
208
225
(43)
(43)
(46)
206
213
209
208
239
225
O
Domestic volunteer service programs, Operating exAppropriation, current...................... 506 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
Domestic volunteer service pro
grams,
Operating expenses
(gross)..........................................
BA
O
402
THE BUDGET FOR FISCAL YEAR 1995
Other Independent Agencies—Continued
(In millions of dollars)
1995
estimate
Total, offsetting collections..............
BA
0
202
208
Inspector general:
Appropriation, current...................... 506 BA
Outlays.............................................
0
Trust funds
Gifts and contributions:
Appropriation, permanent................ 506 BA
Outlays.............................................
0
205
204
239
225
BA
0
Trust funds:
(As shown in detail above)......................
BA
202
208
575
300
850
601
*
106
166
21
J -1 0 4
J -1 5 6
577
196
861
466
0
Interfund transactions ................................... 506 BA/O
Total Corporation for National and
Community Service.....................
BA
0
202
208
Federal payment for water and
sewer services (gross)................
275
275
293
293
(84)
(92)
(98)
Federal funds:
(As shown in detail above)......................
Total District of Columbia................
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 705 BA
Reappropriation................................
BA
Outlays.............................................
O
Total Federal funds Court of Veter
ans Appeals.................................
BA
O
10
.....
9
9
9
9
10
9
*
*
*
9
9
9
9
10
9
13
14
Federal funds
1
1
1
1
688
698
700
698
722
722
(698)
(698)
(722)
17
18
28
26
32
32
17
18
28
28
32
32
-1 7
-2 8
-3 2
700
698
722
722
J -2 2
j -2 2
528
539
678
676
700
700
222
230
246
*
218
*
229
*
244
(25)
(26)
(26)
BA
O
222
218
230
229
246
244
-*
-*
-*
BA
O
222
218
230
228
246
243
1
*
1
*
1
1
1
1
1
1
BA
O
BA
O
1..
*
BA
O
BA
O
17
15
18
18
688
699
E
qual Em
ploym Opportunity Commission
ent
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 751 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Salaries and expenses (gross) .......
Total Salaries and expenses (net) ...
D are River Basin Commission
elaw
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 301 BA
1
1
BA
O
Total, offsetting collections..............
Defense N
uclear Facilities Safety Board
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 053 BA
Outlays.............................................
O
*
*
Deductions for offsetting receipts:
Proprietary receipts from the public.... 806 BA/O
Federal funds
Practice registration fee:
Appropriation, permanent................ 705 BA
*
*
Sum ary
m
319
319
Court of Veterans Appeals
BA
O
*
*
Total, offsetting collections..............
Federal funds
Total Salaries and expenses...........
*
Federal funds
General and Special Funds:
Federal payment to the District of Columbia:
Appropriation, current...................... 806 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Federal payment for water and sewer services:
Spending authority from offsetting
collections.................................... 806 BA
Outlays.............................................
O
Total Federal payment for water and
sewer services (net)....................
Corporation for Public Broadcasting
General and Special Funds:
Public broadcasting fund:
Advance appropriation..................... 503 BA
O
Outlays.............................................
Outlays for grants to State and local
governments................................
O
*
Outlays.............................................
O
Contribution to Delaware River Basin Commission:
Appropriation, current...................... 301 BA
Outlays.............................................
O
Total Federal funds Delaware River
Basin Commission.......................
1995
estimate
D
istrict of Colum
bia
106
Sum ary
m
Federal funds:
(As shown in detail above)......................
1994
estimate
I
Total Domestic volunteer service
programs, Operating expenses
(net)..............................................
1993
actual
Account
i
1994
1993
actual
Account
Intragovernmental Funds:
EEOC Education, technical assistance and training re
volving fund:
Spending authority from offsetting
collections.................................... 751 BA
Outlays.............................................
O
EEOC Education, technical assist
ance and training revolving fund
(gross)..........................................
BA
O
403
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Other Independent Agencies—Continued
(In millions of dollars)
1993
actual
Account
1994
estimate
Total, offsetting collections..............
Total EEOC Education, technical as
sistance and training revolving
fund (net).....................................
Total Federal funds Equal Employ
ment Opportunity Commission....
1995
estimate
1993
actual
Account
1994
estimate
1995
estimate
F Credit System Assistance Board
arm
-1
Federal funds
Public Enterprise Funds:
BA
0
-*
BA
0
222
218
-•
230
228
246
243
Revolving fund for administrative expenses:
Spending authority from offsetting
collections.................................... 351 BA
Limitation on administrative ex.................................
Outlays.............................................
.................................
0
1 .....
(1) .....
1 .....
Revolving fund for administrative ex-
Export-lm B of the U
port ank
nited States
BA
0
Federal funds
Credit Accounts:
Total, offsetting collections .
Export Import Bank loans program account
Appropriation, current...................... 155 BA
Limitation on direct loan activity......
Limitation on loan guarantee com
mitments ......................................
Outlays.............................................
0
Export-lmport Bank of the United States liquidating ac
count:
Spending authority from offsetting
collections.................................... 155 BA
Outlays............................................
0
Export-lmport Bank of the United
States liquidating account (gross)
1,045
(1,873)
845
(2,070)
(13,315)
263
(14,782)
472
(15,565)
600
1,259
1,224
327
775
265
494
1,259
1,224
327
775
265
494
-1,453
-1,031
BA
0
-9 2 3
-9 5 8
-1,125
-6 7 7
-7 6 6
-5 3 7
BA
0
-1 2 0
-6 9 5
-8 0
-2 0 5
80
63
J -2 7
J -5 0
-1 7 2
-7 4 7
-1 0 7
-2 3 3
BA
Revolving fund for administrative expenses:
Spending authority from offsetting
collections.................................... 351 BA
Limitation on administrative ex
penses .........................................
Outlays.............................................
0
BA
Total, offsetting collections..............
BA
0
Trust funds
Financial assistance corporation trust fund:
Appropriation, permanent................ 351 BA
Outlays.............................................
0
41
42
(40)
38
(40)
41
(41)
42
37
38
41
41
42
42
-4 1
196
117
219
117
229
117
196
117
-2 2 9
-1 9 6
-1 0 2
-1 1 3
-7 9
-113
-7 9
J -5
J -5
127
-5
-5
25
-117
-84
108
115
127..
Sum ary
m
BA
Deductions for offsetting receipts:
Proprietary receipts from the public
-102
BA
0
37
229
117
BA
0
Trust funds:
(As shown in detail above) .
-3 7
0
Total, offsetting collections .
219
117
-2 1 9
Financial assistance corporation as
sistance fund, liquidating account
(gross)..........................................
0
Public Enterprise Funds:
Financial assistance corporation assistance fund, liq
uidating account:
Spending authority from offsetting
collections.................................... 351 BA
Outlays.............................................
0
Federal funds:
(As shown in detail above)
Federal funds
Total Revolving fund for administra
tive expenses (net)......................
Credit Accounts:
30
13
F Credit Adm
arm
inistration
Revolving fund for administrative ex
penses (gross) .............................
F C
arm redit System Financial Assistance Corporation
Total Financial assistance corpora
tion assistance fund, liquidating
account (net) ...............................
$
l
s
BA
0
Deductions for offsetting receipts:
Proprietary receipts from the public.... 155 BA/O
Total Export-lmport Bank of the
United States...............................
BA
0
0
Sum ary
m
Federal funds:
(As shown in detail above)......................
Total Revolving fund for administra
tive expenses (net)......................
Federal funds
-2,182
BA
0
Total, offsetting collections..............
Total Export-lmport Bank of the
United States liquidating account
(net)..............................................
803
(1,748)
127..
.. 351 BA/O
Total Trust funds ...........................
BA
O
Total Farm Credit System Financial
Assistance Corporation...............
-4 2
BA
0
F Credit System Insurance Corporation
arm
*
*
Federal funds
Public Enterprise Funds:
Farm credit system insurance fund:
Spending authority from offsetting
collections.................................... 351 BA
95
404
THE BUDGET FOR FISCAL YEAR 1995
Other Independent Agencies—Continued
(In millions of dollars)
1993
actual
Account
Outlays.............................................
Farm credit system insurance fund
(gross)..........................................
1995
estimate
3
2
2
BA
O
95
3
108
2
115
2
-9 5
-1 0 8
-9 3
-1 0 6
-1 1 3
100
72
FSUC resolution fund (gross).........
61
175
96
170
BA
168
170
100
114
72
74
140
133
100
114
72
74
-3 9
J —47
J -5 0 0
J -4 7
J - 4,300
-4 4 7
-4 3 3
—4,275
-4,273
Sum ary
m
BA
O
Deductions for offsetting receipts:
Proprietary receipts from the public.... 376 BA/O
Offsetting governmental receipts......... 959 BA/O
j
BA
O
101
94
Bank Insurance
O
17,270
7,436
11,719
4,886
12,127
6,550
17,270
7,436
11,719
4,886
12,127
6,550
-11,719
-12,127
-9,834
-6,833
-5,578
Federal funds
Savings association insurance fund
(gross)..........................................
BA
O
2,428
396
827
1,783
4,145
1,656
3,023
733
1,721
BA
O
4,211
4,145
2,051
3,023
1,560
1,721
-1,656
-7 3 3
BA
O
2,428
2,362
396
1,367
827
988
26
26
28
28
26
26
28
28
-26
-2 8
7
6
15
11
FDIC-Office of Inspector General
Federal funds
Intragovemmental Funds:
FDIC-Office of inspector general:
Spending authority from offsetting
collections.................................... 373 BA
Outlays.............................................
O
FDIC-Office of inspector general
(gross)..........................................
BA
O
Total, offsetting collections..............
23
23
23
_________ 23_
-2 3
BA
O
........................
...............
Federal funds
General and Special Funds:
Affordable Housing Program:
Appropriation, current...................... 604 BA
Outlays.............................................
O
Bank Enterprise Program:
Appropriation, current...................... 604 BA
Total Federal funds Affordable
Housing and Bank Enterprise
(FD IC )..........................................
Total Federal funds Federal Deposit
Insurance Corporation.................
Savings Association Insurance
Public Enterprise Funds:
Savings association insurance fund:
Spending authority from offsetting
collections.................................... 373 BA
Outlays.............................................
O
-1,119
Affordable Housing and Bank Enterprise (FDIC)
-17,270
Total, offsetting collections ....
Total FSUC resolution fund (net) ....
Total FDIC-Office of inspector gen
eral (net)......................................
Federal Deposit Insurance Corporation
BA
-1,065
-6 1
140
133
0
O
-1,153
-1,783
Total, offsetting collections..............
161
175
-1
Bank Insurance fund (gross) .
-1,101
-9 4 3
BA
O
Federal funds
Public Enterprise Funds:
FSUC resolution fund:
Appropriation, current...................... 373 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
O
141
133
Total, offsetting collections............
Federal funds
Public Enterprise Funds:
Bank insurance fund:
Spending authority from offsetting
collections.................................... 373 BA
.................................
O
Outlays..................................
Total Savings association insurance
_____
find (ndh _________
1
133
0
Total Federal Communications Com
mission .........................................
-9 9 4
140
BA
Federal funds:
(As shown in detail above)......................
1995
estimate
FSUC Resolution
BA
O
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Total Salaries and expenses (net).
Total, offsetting collections
1994
estimate
-1 1 5
Commission
Salaries and expenses (gross).....
1993
actual
Account
O
Total, offsetting collections..............
Total Farm credit system insurance
fund (net).....................................
1994
estimate
994
51
1,101
36
1,153
34
994
51
1,101
36
1,153
34
5
3
1 ....
BA
O
6
3
7
6
15
11
BA
O
2,434
-8,413
403
-6,525
842
-5,697
24
23
27
25
Federal Election Commission
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 808 BA
Outlays.............................................
O
21
20
405
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Other Independent Agencies—Continued
(In millions of dollars)
1994
estimate
1993
actual
Account
1995
estimate
1993
actual
Account
Federal Em
ergency M
anagem Agency
ent
Total, offsetting collections..............
Federal funds
Total (Disaster relief and insurance)
(net)..............................................
General and Special Funds:
Disaster relief:
453 BA
Outlays.............................................
0
Outlays for grants to State and local
governments................................
0
Salaries and expenses
(Defense-related activities):
(Appropriation, current).................... 054 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)..........................................
0
Salaries and expenses (gross) .......
BA
0
Total, offsetting collections..............
Total (Defense-related activities)
(net)..............................................
BA
0
BA
0
Total Salaries and expenses .
320
1,456
(1,821)
(1,619)
(1,165)
70
68
65
4
79
5
73
3
68
74
79
73
73
68
66
-5
-3
70
75
68
66
65
65
90
92
104
15
110
16
112
16
123
174
185
176
180
184
188
-1 5
-1 6
-1 6
BA
0
90
95
92
96
104
107
BA
0
159
170
160
164
168
172
199
154
140
Total, offsetting collections..............
Total (Disaster relief and insurance)
(net)..............................................
292
2,024
-4
(Disaster relief and insurance):
(Appropriation, current).................... 453 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)...........................................
0
Salaries and expenses (gross) .......
2,027
2,276
Total Emergency management plan
ning and assistance....................
Emergency management planning
and assistance (gross)................
BA
0
(Disaster relief and insurance):
(Appropriation, current).................... 453 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)...........................................
0
(Outlays for grants to State and
local governments)......................
0
Emergency management planning
and assis
30
211
27
180
BA
0
(99)
(100)
(97)
262
277
184
211
167
180
-6 2
BA
0
Total, offsetting collections..............
Total (Defense-related activities)
(net).............................................
62
277
-3 0
-2 7
199
215
154
182
140
152
54
59
National flood insurance fund
(gross)..........................................
54
110
54
122
(17)
(17)
(23)
298
313
267
291
274
274
BA
O
54
53
59
56
80
68
BA
O
253
268
213
238
220
220
4
4
4
5
4
4
129
129
130
130
(129)
(130)..
BA
O
BA
O
3
5
5
5
7
4
7
7
5
7
7
7
7
2
*
-5
2
2
-4
3
2
4
BA
O
BA
O
Trust funds
Bequests and gifts:
Appropriation, permanent................ 453 BA
Outlays.............................................
O
Gift and bequests, fire administration:
Outlays............................................. 451 O
763
1,238
787
691
837
824
763
1,238
790
891
837
824
-7 8 7
-8 3 7
475
4
104
-1 3
(259)
6
*
(25)
5
3
(25)
3
78
27
86
25
100
78
27
86
25
100
-7 8
BA
O
Total, offsetting collections..............
Total Disaster assistance direct loan
liquidating account (net)..............
2
-7 6 3
BA
O
Credit Accounts:
Disaster assistance direct loan program account:
Appropriation, current...................... 453 BA
Limitation on direct loan acitivity
Outlays.............................................
O
Disaster assistance direct loan liquidating account:
Spending authority from offsetting
collections.................................... 453 BA
Outlays.............................................
0
Disaster assistance direct loan liq
uidating account (gross)..............
2
-5
Total, offsetting collections..............
Total National flood insurance fund
(net)..............................................
80
4S
98
-5 4
National flood insurance fund:
453 BA
Authority to borrow, permanent
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
(stance
(Defense-related activities):
(Appropriation, current).................... 054 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)...........................................
0
(Outlays for grants to State and
local governments) ......................
0
-5 4
Total, offsetting collections..............
Total National insurance develop
ment fund (net)............................
1995
estimate
-4 5
Office of the Inspector General:
Appropriation, current...................... 453 BA
Outlays.............................................
O
Emergency food and shelter program:
Appropriation, current...................... 605 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Public Enterprise Funds:
National insurance development fund:
Authority to borrow, permanent
451 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
National insurance development
fund (gross).................................
1994
estimate
-2 7
-2 5
-7 8
58
75
*
*
*
*
*
*
*
406
THE BUDGET FOR FISCAL YEAR 1995
Other Independent Agencies—Continued
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
Sum ary
m
Federal funds:
(As shown in detail above)..................
BA
O
BA
O
Trust funds:
(As shown in detail above)......................
1995
estimate
Federal M
aritim Commission
e
2,575
3,252
2,575
3,252
806
2,731
718
1,921
j -10
Deductions for offsetting receipts:
Offsetting governmental receipts......... 453 BA10
Total Federal funds.....................
1994
estimate
1993
actual
Account
J -12
795
2,720
707
1,909
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...............
Appropriation, permanent.........
Authority to borrow, permanent.
Outlays......................................
403 BA
BA
BA
O
BA
19
18
19
18
BA
O
Total Salaries and expenses....
18
*
18
18
19
19
19
18
18
18
19
19
19
18
j —*
j - *
18
18
19
18
19
18
30
30
31
*
*
*
29
30
31
30
29
30
30
31
31
19
*
0
Total Federal Emergency Manage
ment Agency ...............................
um ary
m
BA
0
2,575
3,252
795
2,720
707
1,909
Federal funds:
(As shown in detail above)..........
BA
O
Deductions for offsetting receipts:
403 BA/O
Federal Financial Institutions E ination Council Appraisal
xam
Subcom ittee
m
Total Federal Maritime Commission
Federal funds
General and Special Funds:
Registry fees:
Spending authority from offsetting
collections.................................... 376 BA
Outlays.............................................
0
.....................
1
Federal M
ediation and Conciliation Service
3
2
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 505 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
BA
Registry fees (gross)
0
1
Total, offsetting collections .
BA
Total Registry fees (net)....
0
BA
O
-1
Salaries and expenses (gross).......
BA
O
Federal Housing Finance Board
Total Salaries and expenses (net) ...
_*
Total, offsetting collections..............
Federal funds
Public Enterprise Funds:
Federal housing finance board:
Spending authority from offsetting
collections.................................... 371 BA
Outlays.............................................
Federal housing finance board
(gross)..........................................
Total, offsetting collections..............
Total Federal housing finance board
(net)..............................................
O
1
16
16
16
16
15
16
16
16
16
16
-1 5
BA
0
-1 6
-1 6
2
*
-*
BA
0
Salaries and expenses (gross) .......
BA
O
BA
O
21
22
*
•
-*
30
30
31
31
Federal M Safety and H
ine
ealth Review Commission
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current ...................... 554 BA
Outlays.............................................
O
6
6
6
6
6
6
22
22
22
21
21
22
22
22
Federal funds
General and Special Funds:
Payment from the general fund:
Appropriation, permanent................ 602 BA
Outlays.............................................
O
Program expenses:
Appropriation, permanent................ 803 BA
Outlays ,
28
26
32
32
35
35
28
26
32
32
35
35
J —28
J —32
J —35
*
21
-*
Total, offsetting collections..............
Total Salaries and expenses (net) ...
22
30
29
Federal Retirem Thrift Investm Board
ent
ent
Federal Labor Relations Authority
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 805 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
BA
22
21
-*
21
22
-*
22
22
Sum ary
m
Federal funds:
(As shown in detail above) .
............
BA
O
Deductions for offsetting receipts:
Proprietary receipts from the public.... 803 BA/O
Total Federal Retirement Thrift In
vestment Board...........................
BA
O
*
- 2 ...........................................
407
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Other Independent Agencies—Continued
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
estimate
1993
actual
Account
Outlays .
Federal Trade Commission
1995
estimate
1994
estimate
43
42
45
44
45
44
7
48
8
53
9
54
51
48
53
53
53
54
Federal funds
Genera! and Special Funds:
Salaries and expenses:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Salaries and expenses (gross) .......
68
63
18
86
26
93
34
96
66
94
93
96
-22
-22
-34
Salaries and expenses (gross) .......
66
64
72
70
63
63
Total, offsetting collections..............
BA
0
Total, offsetting collections..............
Total Salaries and expenses (net) ...
Interstate Commerce Commission
70
BA
0
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current......................
BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Total Salaries and expenses (net) ...
Franklin Delano Roosevelt M orial Commission
em
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 806 BA
Outlays............................................
0
BA
O
-7
BA
O
Total Federal funds Interstate Com
merce Commission......................
-9
BA
O
45
45
44
45
O
Payments for directed rail service:
Limitation on program level (obliga
tions) ............................................ 401
1
-8
44
41
O
0
44
41
45
45
44
45
H S Trum Scholarship Foundation
arry
an
Tri/sf funds
Harry S Truman memorial scholarship trust fund:
Appropriation, permanent................ 502 BA
Outlays.............................................
0
Interstate Commission on the Potomac River Basin
9
3
Federal funds
General and Special Funds:
Contribution to Interstate Commission on the Potomac
River Basin:
Appropriation, current...................... 304 BA
Outlays.............................................
O
Institute of Am
erican Indian and Alaska N
ative C
ulture and Arts
Developm
ent
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 502 BA
Outlays............................................
O
*
Jam M
es adison M orial Fellowship Foundation
em
9
7
13
13
10
10
Trust funds
James Madison Memorial Fellowship Trust Fund:
Appropriation, permanent................ 502 BA
Outlays.............................................
O
11
1
Intelligence Com unity Staff
m
Federal funds
General and Special Funds:
Intelligence community staff:
Outlays.........................
054 O
Japan-U
nited States Friendship Commission
Trust funds
Japan-United States friendship trust fund:
Appropriation, current ...................... 154 BA
Appropriation, permanent................
BA
Outlays.............................................
O
10
Interagency Council on the Homeless
Federal funds
General and Special Funds:
Interagency Council on the Homeless:
Appropriation, current...................... 604 BA
Outlays............................................
O
Total Japan-United States friendship
trust fund .....................................
Federal funds
General and Special Funds:
Salaries and expenses:
Spending authority from offsetting
collections.................................... 452 BA
Outlays.............................................
....................
O
Federal funds
General and Special Funds:
Salaries and expenses:
Outlays............................................. 804 O
International Trade Commission
Salaries and expenses (gross) .......
BA
O
Federal funds
Total, offsetting collections..............
45
44
1
2
1
2
Joint Federal-State Commission on Policies and Program Affecting
s
Alaska N
atives
International C
ultural and Trade Center Commission
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 153 BA
BA
O
1....
1
1
*
2
45
Total Salaries and expenses (net) ...
BA
O
*
* ................
1
2
408
THE BUDGET FOR FISCAL YEAR 1995
Other Independent Agencies—Continued
(In millions of dollars)
Account
cou ‘
1993
actual
1994
estimate
Trust funds
Joint Federal-State Commission on Policies and Pro
grams Affecting Alaska Natives Trust Fund:
Appropriation, permanent................ 452 BA
Outlays.............................................
O
1995
estimate
Account
* ........
*
Federal funds
General and Special Funds:
National Advisory Council on the Pifclic Seivice:
Appropriation, current...................... 805 BA
Outlays.............................................
O
Trust funds
Gifts and Donations:
Appropriation, permanent................ 805 BA
Outlays.............................................
O
*
357
389
400
393
500
483
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 302 BA
Outlays.............................................
O
1
1
1
1
1
1
M
artin Luther K Jr. Federal H
ing,
oliday Commission
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 808 BA
Outlays.............................................
O
*
*
*
M Systems Protection Board
erit
BA
O
Total, offsetting collections..............
Total Safaries and expenses (net) ...
Federal funds
General and Special Funds:
Operating expenses:
Appropriation, current...................... 804 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
24
25
25
2
28
2
25
2
26
26
28
27
25
27
26
24
26
-2
-2
25
23
25
24
General and Special Funds:
Payment to the Morris K Udall scholarship and
exceliance in national environment:
Appropriation, current...................... 502 BA
...........................................
Outlays.............................................
0
...........................................
Total Morris K. Udall Scholarship
and Excellence in National Envi
ronmental Policy Foundation......
...........................................
...........................................
J-5
J -5
National archives trust fund (gross).
10
10
-5
-5
38
307
25
307
24
215
206
307
217
307
221
215
-3 8
-2 5
-2 4
168
270
192
282
197
190
*
*
1
*
1
*
13
12
14
14
15
15
13
12
14
14
15
15
-1 3
-1 4
-1 5
-1
-*
*
BA
O
168
270
192
282
197
190
BA
O
-
1
*
1
*
BA
O
BA
O
BA
O
10
10
J -1 0
- 5 .....................
- 5 .....................
BA
O
Sum ary
m
Federal funds:
(As shown in detail above) ......................
Trust funds:
(As shown in detail above)......................
*
*
Deductions for offsetting receipts:
Proprietary receipts from the public.... 908 BA/O
Total Trust funds .............................
BA
O
197
Trust funds
National archives gift fund:
Appropriation, permanent................ 804 BA
Outlays.............................................
O
National archives trust fund:
Spending authority from offsetting
collections.................................... 804 BA
Outlays.............................................
O
Total National archives trust fund
(net)..............................................
Sum ary
m
Interfund transactions ................................... 502 BA/O
192
Total, offsetting collections..............
Federal funds
BA
O
168
Total, offsetting collections..............
M
orris K U Scholarship and Excellence in N
. dall
ational E
nvironm
ental
Policy Foundation
Federal funds:
(As shown in detail above)......................
* ..............
N
ational Archives and Records Adm
inistration
Total Operating expenses (net) ......
-2
BA
O
1 ..............
1
N
ational Afro-Am
erican H
istory and Culture Commission
Operating expenses (gross)............
Salaries and expenses (gross) .......
1995
estimate
Federal funds
General and Special Funds:
National Center for the Study of Afro-American Histoiy
and Culture:
Outlays............................................. 503 O
M
arine M m Commission
am al
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 805 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
1994
estimate
N
ational Advisory Council on the Public Service
Legal Services Corporation
Federal funds
General and Special Funds:
Payment to the Legal Services Corporation:
Appropriation, current...................... 752 BA
Outlays.............................................
O
1993
actual
Total National Archives and Records
Administration..............................
-
j —*
j
— *
BA
O
*
-*
1
-*
*
*
BA
O
168
269
193
282
198
191
409
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Other Independent Agencies—Continued
(In millions of dollars)
a/*tnQ|
actual
ACCOUnt
Actimota
estimate
actimota
estimate
ACCOUnt
estimate
estimate
Trust funds
Contributions:
Outlays............................................. 503 0
N
ational C
apital Planning Commission
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 451 BA
Outlays.............................................
0
actual
Total Federal funds National Com
mission on Libraries and Informa
tion Science.................................
6
5
Total Trust funds National Commis
sion on Libraries and Information
Science........................................
N
ational Commission on Am
erican Indian, Alaska N
ative, and N
ative
H iian H
aw
ousing
BA
0
0
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 604 BA
Outlays............................................
0
N
ational Commission on M
igrant Education
* ......................................
Federal funds
General and Special Funds:
Salaries and expenses:
Outlays............................................. 501 O
1
N
ational Com ission on Cost of H
m
igher Education
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 502 BA
1.......................
Outlays............................................
0
.....................
1
N
ational Commission on Responsibilities for Financing Postsecondary
Education
Federal funds
General and Special Funds:
National Commission on Responsibilities for Financing
Postsecondaiy Education:
Appropriation, current...................... 502 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
N
ational Commission on Financial Institutions Reform Recovery, and
,
Enforcem
ent
Federal funds
General and Special Funds:
Salaries and expenses:
Outlays.......................
373 O
National Commission on Responsbilities for Financing Post
secondaiy Education (gross) ......
N
ational Commission on Independent H
igher Education
* .........................................
* .........................................
Total, offsetting collections..............
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 502 BA
Outlays.............................................
O
Total National Commission on Responsbilities for Financing Post
secondary Education (net)..........
1 ........................
.....................
1
Federal funds
Federal funds
Salaries and expenses (gross)
BA
O
Total, offsetting collections..............
Total Salaries and expenses (net) ...
White House conference on library and information
services:
Outlays............................................ 503 O
General and Special Funds:
Salaries and expenses:
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
- 1 .........
BA
O
BA
O
N
ational Commission on Severely Distressed Public Housing
N
ational Commission on Libraries and Inform
ation Science
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 503 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
BA
O
1
1
Appropriation, current...................... 604 BA
Outlays.............................................
O
* ............................
N
ational Council on D
isability
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 506 BA
Outlays............................................
O
Trust funds
Gifts and donations:
Appropriation, permanent................ 506 BA
Outlays.............................................
O
2
2
2
2
2
2
* ...........................................
N
ational Credit U
nion Adm
inistration
Federal funds
Public Enterprise Funds:
Operating fund:
Spending authority from offsetting
collections.................................... 373 BA
87
94
87
410
THE BUDGET FOR FISCAL YEAR 1995
Other Independent Agencies—Continued
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
estimate
1993
actual
Account
Outlays.............................................
0
82
94
101
BA
0
87
82
94
94
87
101
Total National endowment for the
arts (net)......................................
-8 7
-9 4
-8 7
-5
-*
15
521
154
510
205
559
189
521
154
510
205
559
189
-521
-5 1 0
-5 5 9
Total, offsetting collections..............
Total Operating fund (net)...............
BA
0
Credit union share insurance fund:
Spending authority from offsetting
collections.................................... 373 BA
Outlays.............................................
0
Credit union share insurance fund
(gross) ..........................................
BA
0
Total, offsetting collections..............
Total Credit union share insurance
fund (net).....................................
O
Central liquidity facility:
Spending authority from offsetting
collections....................................
Limitation on administrative ex
penses .........................................
Limitation on direct loan obligations
Outlays.............................................
Central liquidity facility (gross) ........
276
299
O
(1)
(600)
165
(1)
(600)
276
(1)
(600)
299
BA
O
165
165
276
276
299
299
-1 6 5
-2 7 6
-2 9 9
Total Federal funds National Credit
Union Administration...................
BA
0
1
1
2
2
2
2
1
1
2
2
2
2
-1
-2
BA
0
BA
0
Federal funds
General and Special Funds:
National endowment for the arts: Grants and adminis
tration:
Appropriation, current.......
503 BA
Spending authority from offsetting
collections....................
BA
O
Outlays.............................
Outlays for grants to State and local
governments................
O
_ *
174
173
170
173
170
172
★
1
Trust funds
Gifts and donations (arts):
Appropriation, permanent................ 503 BA
Outlays.............................................
O
.
N
ational Endowm for the H anities
ent
um
Federal funds
General and Special Funds:
National endowment for the humanities: Grants and
administration:
Appropriation, current...................... 503 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
National endowment for the human
ities (gross)..................................
Total, offsetting collections..............
Total National endowment for the
humanities (net)...........................
BA
O
177
177
2
170
1
192
1
181
179
170
179
192
179
181
-2
BA
0
177
-1
-1
177
168
177
190
177
180
*
*
*
29
20
29
35
29
28
(5)
(8)
(7)
Trust funds
Gifts and donations (humanities):
Appropriation, permanent................ 503 BA
Outlays.............................................
O
Institute of M
useumServices
-2
BA
O
Federal funds
General and Special Funds:
Institute of Museum Sen/ices: Grants and administra
tion:
Appropriation, current...................... 503 BA
Outlays for grants to State and local
governments................................
O
Trust funds
Gifts and donations:
Appropriation, permanent................ 503 BA
Outlays.............................................
O
*
-1
N
ational Labor Relations Board
-372
-305
-356
N
ational Endowm for the A
ent
rts
National endowment for the arts
(gross) ..........................
BA
O
_ *
BA
0
Total, offsetting collections..............
Total Community development credit
union revolving loan fund (net)....
-3 7 0
165
Community development credit union revolving loan
fund:
Spending authority from offsetting
collections.................................... 373 BA
Outlays.............................................
0
Community development credit
union revolving loan fund (gross)
-3 0 5
BA
Total, offsetting collections..............
Total Central liquidity facility (net)....
-3 6 7
1995
estimate
_ *
Total, offsetting collections..............
Operating fund (gross) ....................
1994
estimate
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 505 BA
Spending authority from offsetting
collections....................................
BA
Salaries and expenses (gross) .......
174
170
170
*
174
*
174
*
172
(43)
(43)
(43)
175
174
171
174
170
172
Total, offsetting collections..............
Total Salaries and expenses (net) ...
BA
O
N
ational M
ediation Board
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 505 BA
171
175
*
171
*
173
*
174
170
171
171
173
175
174
-*
BA
O
170
-*
-•
170
171
171
173
175
174
411
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Other Independent Agencies—Continued
(In millions of dollars)
1993
actual
Account
1995
estimate
1994
Outlays .
Trust funds
Donations:
Appropriation, permanent................ 251 BA
Outlays.............................................
O
N
ational Science Foundation
Federal funds
Total Federal funds National
Science Foundation.....................
General and Special Funds:
Research and related activities
(Defense-related activities):
(Spending authority from offsetting
collections)...................................
(Outlays)..........................................
Research and related activities
(gross)
054 BA
O
11
63
72
63
62
251 BA
(Outlays)..........................................
(General science and basic research):
2,027
2,158
BA
O
2,032
2,067
2,069
BA
100
2,181
2,043
2,221
2,139
2,349
2,131
BA
0
BA
0
2,027
1,932
2,158
2,067
2,286
2,069
2,081
1,943
50
18
2,221
2,139
55
97
88
* -1 0
*-3
BA
0
BA
0
Total, offsetting collections..............
H
2,734
2,442
3,018
2,814
3,200
2,858
BA
O
23
9
30
50
30
30
37
37
37
37
28
30
32
34
39
39
(1 1 )
(14)
(15)
535
543
541
7
490
12
12
541
* — 13
542
N
ational Transportation Safety Board
Federal funds
Salaries and expenses:
Appropriation, current...................... 407 BA
Outlays.............................................
O
36
37
Neighborhood Reinvestm Corporation
ent
Federal funds
General and Special Funds:
Payment to the Neighborhood Reinvestment Corpora
tion:
Appropriation, current...................... 451 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
- 4
50
100
55
84
70
7
111
118
131
1
11?
120
129
118
131
129
112
111
120
- 1 .......
National Science Foundation Headquarters Relocation:
Appropriation, current .......................251 BA
Outlays............................................
0
Office of the Inspector General:
Appropriation, current ........................251 BA
Outlays............................................
0
Education and human resources:
Appropriation, current.......................251 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Total Education and human re
sources (net) ...............................
BA
O
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 276 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
O
Appropriation, current......................
BA
Outlays.............................................
O
Salaries and expenses (gross) .......
118
109
120
131
129
5
5
5
5
4
4
4
4
4
4
488
570
586
A
372
453
497
492
372
570
453
535
483
530
520
541
526
Office of Inspector General:
Appropriation, current...................... 276 BA
Outlays.............................................
O
5
5
5
5
5
5
540
488
535
524
546
531
J -5 0 7
J -5 2 4
9
22
-7
Deductions for offsetting receipts:
Offsetting governmental receipts
BA
O
276 BA/O
Total Nuclear Regulatoiy Commis
sion ..............................................
BA
O
33
-1 9
N
uclear W Technical Review Board
aste
367
570
453
586
497
542
532
-12
554
539
-12
Sum ary
m
Federal funds:
(As shown in detail above) ......................
Federal funds
BA
0
- 3
BA
O
Total, offsetting collections..............
586
497
-4 ..
h
542
490
Total Salaries and expenses (net) ...
111
* -1 0
BA
O
C
\J
ir>
I
BA
0
Total, offsetting collections..............
Education and human resources
(gross) ..........................................
30
30
N
uclear Regulatory Commission
BA
Major research equipment:
Appropriation, current...................... 251 BA
Outlays............................................
0
Salaries and expenses:
Appropriation, current...................... 251 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
0
Total Salaries and expenses (net) ...
2,349
2,131
110
94
Salaries and expenses (gross)
30
50
- 100..
Academic research infrastructure:
Appropriation, current...................... 251 BA
Outlays.............................................
O
Appropriation, current......................
BA
Outlays.............................................
O
Total Academic research infrastruc
ture ...............................................
23
9
General and Special Funds:
Total, offsetting collections..............
Total Research and related activities
Total Trust funds National Science
Foundation...................................
1995
estimate
2,286
0
Total (General science and basic re
search) (net)................................
54
1994
estimate
1993
actual
Account
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 271 BA
Outlays.............................................
O
2
3
-1
7
412
THE BUDGET FOR FISCAL YEAR 1995
Other Independent Agencies—Continued
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
estimate
1993
actual
Account
Occupational Safety and H
ealth Review Commission
Total, offsetting collections..............
Federal funds
Total Panama Canal revolving fund
(net)..............................................
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 554 BA
Outlays.............................................
0
7
7
7
7
1994
estimate
1995
estimate
-5 4 3
BA
O
-5 5 2
-5 6 4
-2 3
1
-5
6
-7
3
3
3
3
3
3
5
77
5
176
4
208
6
7.
4
7
5
12
6
6
11
7
12
12
6
6
8
8
Pennsylvania Avenue Development Corporation
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 451 BA
Outlays.............................................
O
Public development:
Appropriation, current...................... 451 BA
Office of Government Ethics
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 805 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
0
Salaries and expenses (gross).......
10
Public Enterprise Funds:
Land acquisition and development fund:
Authority to borrow, current............. 451 BA
Spending authority from offsetting
BA
collections....................................
Outlays.............................................
O
BA
0
10
______________
Total, offsetting collections..............
Total Salaries and expenses (net)...
BA
0
Land acquisition and development
fund (gross).................................
10
Office of Navajo and H Indian Relocation
opi
Total, offsetting collections..............
Federal funds
Total Land acquisition and develop
ment fund (net)............................
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 808 BA
Outlays.............................................
O
25
33
27
31
29
28
Office of Special Counsel
Total Trust funds Pennsylvania Ave
nue Development Corporation....
Office of the N
uclear W Negotiator
aste
BA
O
.....................
2
543
519
BA
O
6
3
-6
7
7..
*
15
82
14
185
7
211
*
O
Federal funds
General and Special Funds:
Payment to the Postal Service fund:
Appropriation, current...................... 372 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Panam C
a anal Commission
Panama Canal revolving fund
(gross)..........................................
BA
O
-5
Postal Service-Payments to the Postal Service
Federal funds
Federal funds
Public Enterprise Funds:
Panama Canal revolving fund:
Authority to borrow, permanent....... 403 BA
..............
Spending authority from offsetting
collections....................................
BA
543
Limitation on administrative ex
penses .........................................
(49)
Limitation on program level (obliga
(530)
tions) ............................................
O
519
Outlays.............................................
-4
Trust funds
Gifts and donations:
Outlays............................................. 451 O
Total Federal funds Pennsylvania
Avenue Development Corporation
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 808 BA
Outlays.............................................
O
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 271 BA
Outlays.............................................
O
BA
O
122
91
92
29
151
91
92
151
151
91
91
92
92
Payment to the Postal Service fund
BA
O
1
6
Total, offsetting collections..............
552
564
Total Payment to the Postal Service
fund (net).....................................
(52)
(50)
(540).......
547
553
547
556
570
556
- 2 9 ............................................
BA
O
Payment to the Postal Service fund for nonfunded li
abilities:
Appropriation, current...................... 372 BA
Outlays.............................................
O
Total Federal funds Postal ServicePayments to the Postal Service ..
BA
O
122
122
91
91
92
92
39
39
39
39
38
38
161
161
130
130
130
130
413
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Other Independent Agencies—Continued
(In millions of dollars)
actual
estimate
1993
actual
Account
estimate
Postal Service
Postal Service fund (gross).............
0
Total, offsetting collections..............
Total Postal Service fund (net).......
BA
0
2,239
4,282
5,349
48,322
49,763
49,416
51,164
50,592
53,851
50,561
49,763
53,698
51,164
55,941
53,851
-48,322
BA
-49,416
-50,592
2,239
1,441
4,282
1,748
5,349
3,259
Trust funds:
(As shown in detail above)......................
BA
O
3,296
3,291
3.383
3.383
3.457
3.457
BA
O
10,762
10,848
11,230
11,092
11,466
11,375
- 3,616
J - 3,711
7,146
7,233
7,614
7,476
7,755
7,664
J - 5,913
7 -6,023
J - 6,250
4,529
4,612
4,973
4,836
4,962
4,871
34
33
32
33
Deductions for offsetting receipts:
Intrafund transactions........................... 601 BA/O
Intrafund transactions from off-budget
accounts........................................... 601 BA/O
Total Trust funds .............................
Total Railroad Retirement Board ....
Railroad Retirem Board
ent
Federal funds
Total Federal payments to the rail
road retirement accounts............
BA
0
Special management improvement fund:
Appropriation, current...................... 601 BA
Outlays.............................................
0
Regional rail transportation protective account:
Outlavs
294
289
277
277
261
261
*
2,998
2,998
*
3,102
3,102
*
3,194
3,194
2,998
2,998
3,102
3,102
3,194
3,194
4
4
Total Railroad unemployment insur
ance trust fund ............................
0
BA
0
Total, offsetting collections..............
Total Rail Industry Pension Fund
(net)..............................................
Federal funds
General and Special Funds:
Office of Inspector General:
Appropriation, current...................... 373 BA
Outlays.............................................
O
Public Enterprise Funds:
RTC revolving fund:
ADDroDriation. current ........................ 373 BA
Spending authority from offsetting
collections....................................
Outlays.............................................
17
73
(17)
86
(17)
87
(17)
90
87
86
87
87
90
90
2,884
2,923
2,957
4
(74)
4
(74)
4
(75)
(7)
2,810
(7)
2,923
(7)
2,957
2,887
2,810
2,927
2,923
2,960
2,957
-4
-4
2,884
2,807
2,923
2,920
2,957
2,953
96
99
96
96
92
92
7,695
7,857
8,124
7,990
8,327
8,239
Total RTC revolving fund (net)
Total Federal funds Resolution Trust
Corporation..................................
0
j
34
29
....................
18,315
BA
O
31,093
11,910
17,189
20,711
11,928
6,871
BA
O
31,093
11,910
35,504
20,711
11,928
6,871
-31,093
-17,189
-11,928
BA
O
-19,183
18,315
3,522
-5,057
BA
O
34
-19,153
18,349
3,555
32
-5,024
127
58
306
141
240
224
289
295
268
240
282
289
306
295
-141
-2 2 4
127
99
58
65
306
295
29
28
25
25
23
23
Securities and Exchange Com ission
m
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 376 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
O
Salaries and expenses (gross)
BA
O
Total, offsetting collections..............
Total Salaries and expenses (net) ...
BA
Supplemental Annuity Pension Fund:
Appropriation, permanent................ 601 BA
Outlays............................................
0
Railroad social security equivalent benefit account:
Appropriation, permanent................ 601 BA
Outlays............................................
0
http://fraser.stlouisfed.org/0-94-14 (QL 3)
150-003
Federal Reserve Bank of St. Louis
17
70
J - 3,435
BA
O
Total, offsetting collections..............
17
70
-1 8 0
Resolution Trust Corporation
RTC revolving fund (gross).............
-4
BA
Rail Industry Pension Fund:
Appropriation, permanent................ 601 BA
Spending authority from offsetting
collections....................................
BA
Limitation on administration.............
Limitation on the Office of Inspector
General.......................................
Outlays............................................
0
Rail Industry Pension Fund (gross) .
2
2
*
................ 603 0
Trusl funds
Railroad unemployment insurance trust fund:
Appropriation, current...................... 603 BA
Appropriation, permanent................
BA
Limitation on administrative ex
penses .........................................
Outlays............................................
0
3
3
j
BA
O
Interfund transactions ................................... 601 BA/O
General and Special Funds:
Federal windfall subsidy:
Appropriation, current...................... 601 BA
0
Outlays.............................................
Federal payments to the railroad retirement accounts:
Appropriation, current...................... 601 BA
Appropriation, permanent................
BA
Outlays............................................
0
1995
estimate
Sum ary
m
Federal funds:
(As shown in detail above)......................
Federal funds
Public Enterprise Funds:
Postal Service fund:
Authority to borrow, permanent....... 372 BA
Spending authority from offsetting
collections....................................
BA
0
Outlays.............................................
1994
estimate
BA
O
-*
Selective Service System
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 054 BA
Outlays.............................................
0
414
THE BUDGET FOR FISCAL YEAR 1995
Other Independent Agencies—Continued
(In millions of dollars)
1993
'Z Z i
actual
Account
1994
estimate
1995
estimate
.
Account
Outlays for grants to State and local
governments................................
Appropriation, current......................
Outlays.............................................
Sm
ithsonian Institution
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 503 BA
Spending authority from offsetting
collections....................................
BA
Outlays.............................................
0
Salaries and expenses (gross) .......
Total, offsetting collections..............
Total Salaries and expenses (net) ...
BA
0
Museum programs and related research (special for
eign currency program):
Outlays............................................. 503 O
Construction and improvements, National Zoological
Park:
Appropriation, current...................... 503 BA
Outlays.............................................
O
Repair and restoration of buildings:
Appropriation, current...................... 503 BA
Outlays.............................................
O
Construction:
Appropriation, current...................... 503 BA
Outlays.............................................
O
Operations and maintenance, JFK center for the per
forming arts:
Appropriation, current...................... 503 BA
Outlays.............................................
O
Construction, JFK center for the performing arts:
Appropriation, current...................... 503 BA
Outlays.............................................
O
Salaries and expenses, National Gallery of Art:
Appropriation, current...................... 503 BA
Outlays.............................................
O
Repair, restoration, and renovation of buildings:
Appropriation, current...................... 503 BA
Outlays.............................................
O
Salaries and expenses, Woodrow Wilson International
Center for Scholars:
Appropriation, current...................... 503 BA
Outlays.............................................
O
Trust funds
Canal Zone biological area fund:
Appropriation, permanent................ 503 BA
Outlays.............................................
O
296
302
319
*
297
*
308
t
326
296
297
302
308
319
326
_*
BA
0
-*
-*
296
297
302
308
319
326
1
1
5
5
24
16
25
27
17
10
10
12
50
24
'10
'1 0
'9
'1 5
51
50
52
52
3
4
6
6
Trust funds:
(As shown in detail above)......................
7
13
*
*
BA
0
1
1
1
1
5,673
6,309
5,519
5,954
(237)
(243)
(252)
9,087
7,164
6,870
6,309
6,510
5,954
-5,678
-5,536
-5,454
BA
O
3,409
1,486
1,334
773
1,056
500
(Area and regional development):
(Appropriation, current).................... 452 BA
(Spending authority from offsetting
collections)...................................
BA
(Outlays)...........................................
O
135
140
140
107
250
102
241
66
199
3,651
1,736
1,577
1,015
1,262
699
-1 0 7
-1 0 2
-6 6
BA
O
135
143
140
139
140
133
BA
O
3,544
1,629
1,475
912
1,196
633
BA
O
3,544
1,629
1,475
912
1,196
633
Total (Energy supply) (net) .............
*
BA
O
BA
O
Total, offsetting collections..............
403
403
487
476
Total (Area and regional develop
ment) (net)...................................
BA
O
*
*
*
*
*
*
Total Tennessee Valley Authority
fund..............................................
j —*
j —*
403
403
487
476
Total Federal funds Tennessee Val
ley Authority.................................
Thom Jefferson Com em
as
m oration Commission
Federal funds
14
13
14
15
1
13
1
1
5,819
7,164
Tennessee Valley Authority fund
(gross)..........................................
405
395
1
11
991
Tennessee Valley Authority fund
(gross)..........................................
10
9
•
*-3
1,197
State Justice Institute
14
13
(11)
3,267
405
395
General and Special Funds:
State Justice Institute: Salaries and expenses:
Appropriation, current...................... 752 BA
0utlaVS .............................................
0
BA
0
Federal funds
Public Enterprise Funds:
Tennessee Valley Authority fund
(Energy supply):
(Authority to borrow, permanent).... 271 BA
(Spending authority from offsetting
BA
collections)...................................
(Outlays)...........................................
O
(Outlays for grants to State and
local governments)......................
O
BA
O
BA
O
(13)
*-7
*-2
Total, offsetting collections..............
Interfund transactions ................................... 803 BA/O
Total Smithsonian Institution...........
(11)
Tennessee Valley Authority
4
4
6
6
Total Federal funds Susquehanna
River Basin Commission.............
54
54
4
3
1995
estimate
0
BA
0
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 301 BA
Outlays.............................................
0
Contribution to Susquehanna River Basin Commission:
Appropriation, current...................... 301 BA
Outlays.............................................
0
5
7
24
25
1994
estimate
Susquehanna River Basin Commission
1
8
4
Total State Justice Institute.............
Sum ary
m
Federal funds:
(As shown in detail above) ......................
1993
actual
..
J
&X
..
..
Am**
Fedeml ,unds
“ - X ^ r e n t ...................... 808 BA
JE tay s .............................................
0
415
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Other Independent Agencies—Continued
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
Spending authority from offsetting
collections....................................
Outlays.............................................
U
nited M W
ine orkers of Am
erica Benefit Funds
Trust funds
United mine workers of America combined benefit
fund:
Appropriation, permanent................ 551 BA
Outlays.............................................
0
United mine workers of America 1992 benefit plan:
Appropriation, permanent................ 551 BA
Outlays .
Total Trust funds United Mine Work
ers of America Benefit Funds.....
BA
0
155
155
232
232
229
229
6
6
7
7
7
7
161
161
239
239
236
236
)rporation Fund
Federal funds
Public Enterprise Funds:
United States Enrichment Coiporation Fund:
Spending authority from offsetting
collections.................................... 271
Outlays.............................................
Spending authority from offsetting
collections....................................
Outlays.............................................
United States Enrichment Corpora
tion Fund (gross).........................
BA
0
1,403
1,284
BA
0
BA
0
1,347
1,262
*106
*74
BA
0
713
159
1,403
1,284
1,453
1,336
-713
Total, offsetting collections..............
Total United States Enrichment Cor
poration Fund (net) .....................
713
159
-1,403
-1,347
-1 0 6
-5 5 4
-1 1 9
-1 1 7
U
nited States Holocaust M orial Council
em
Federal funds
General and Special Funds:
Holocaust Memorial Council:
Appropriation, current...................... 808 BA
O
Outlays............................................
1993
actual
Account
21
21
26
24
22
21
BA
O
31
243
20
20
257
252
BA
O
274
243
262
257
242
252
-3 1
-2 0
-2 0
BA
O
242
212
242
237
232
154 BA
O
30
28
35
32
45
40
154 BA
O
29
27
21
29
6
154 BA
O
26
25
26
26
24
25
154 BA
O
BA
O
9
7
Educational and cultural exchange
programs (gross).........................
Total, offsetting collections..............
Total Educational and cultural ex
change programs (net)................
National Endowment for Democracy:
Appropriation, current...........
Outlays..................................
Broadcasting to Cuba:
Appropriation, current...........
Outlays..................................
East West Center
Appropriation, current...........
Outlays..................................
North/South Center
Appropriation, current...........
,
Outlays..................................
Appropriation, current...........
Outlays.................................. ..........
1995
estimate
1994
estimate
Total North/South Center .
222
9
11
h - 9
H -4
5
n -S
BA
0
Russian far east technical assistance center:
Appropriation, current...................... 154
Outlays.............................................
Radio construction:
Appropriation, current...................... 154
Outlays.............................................
International broadcasting operations:
Appropriation, current...................... 154
Spending authority from offsetting
collections....................................
Outlays.............................................
International broadcasting operations
(gross)..........................................
BA
0
BA
0
104
83
75
94
92
BA
281
BA
0
237
BA
0
282
237
BA
0
281
236
1
Total, offsetting collections..............
U
nited States Inform
ation Agency
Federal funds
General and Special Funds:
Salaries and expenses:
Appropriation, current...................... 154 BA
Spending authority from offsetting
collections....................................
BA
Outlays............................................
O
Appropriation, current......................
BA
Outlays............................................
O
Salaries and expenses (gross)
BA
O
BA
O
Office of the Inspector General:
Appropriation, current...................... 154 BA
Outlays............................................
0
Salaries and expenses (special foreign currency pro
gram):
Outlays............................................ 154 0
Educational and cultural exchange programs:
Appropriation, current...................... 154 BA
16
716
730
497
19
750
17
551
H H -
3
3
H -
*
758
716
746
748
514
551
-1 6
Total, offsetting collections..............
Total Salaries and expenses (net) ...
743
Total International broadcasting op
erations (net) ...............................
-1 9
-1 7
743
700
727
729
497
534
Trust funds
Eisenhower exchange fellowship program trust fund:
Appropriation, current...................... 154 BA
Outlays.............................................
0
Eastern europe student exchange endowment fund:
Outlays............................................. 154 0
Israeli Arab scholarship program:
Appropriation, current...................... 154 BA
Outlays.............................................
0
Foreign service national separation liability trust fund:
Appropriation, permanent................ 602 BA
Outlays.............................................
0
Miscellaneous trust funds:
Appropriation, permanent................ 154 BA
Outlays .
Sum ary
m
Federal funds:
(As shown in detail above)
242
242
222
Trust funds:
(As shown in detail above)
BA
0
BA
0
1,130
1,160
1,173
1,168
416
THE BUDGET FOR FISCAL YEAR 1995
Other Independent Agencies—Continued
(In millions of dollars)
1993
actual
Account
1994
1995
estimate
Deductions for offsetting receipts:
Proprietary receipts from the public.... 154 BA/O
Total Trust funds .............................
Deductions for offsetting receipts:
Proprietary receipts from the public
BA
O
5
4
4
4
4
4
BA/O
j
-3
j-2
j-2
BA
O
Total United States Information
Agency .........................................
1993
actual
Account
1,190
1,088
1,132
1,162
1,175
1,171
155
376
403
803
806
Offsetting governmental receipts......... 276
453
959
11
10
11
11
12
11
W
ashington M
etropolitan Area Transit Authority
Federal funds
General and Special Funds:
Interest payments:
Appropriation, current...................... 401 BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
52
47
9
14
(53)
(47)
(14)
W Resources Council
ater
Federal funds
General and Special Funds:
Water resources planning:
Outlays.......................
J -5 0
J -4 7
J -2 8
J — 160
J -5 0 7
J -3 2
J -2 2
J -5 2 6
J -1 0
J - 500
J -3 5
J -2 2
J -5 2 4
J -1 2
J - 4,300
20,360
-13,114
32,854
11,776
12,295
96
10,992
11,167
11,634
11,407
11,928
11,691
J - 3,616
j —*
J -3 ,7 1 1
j - *
J -1 8 0
J - 3,435
j - *
J -2
j - *
J -5
J -2
j
—*
J -5
J -2
j
- *
BA
O
Interfund transactions ................................... 452
502
506
601
602
803
Total Other Independent Agencies
(on-budget) ..................................
301 0
7,374
7,549
8,011
7,784
8,210
7,972
BA/O
BA/O
BA/O
BA/O
BA/O
BA/O
J -2
J-5
J -2
J -5
J -1 0 4
J - 6,023
J -2
j —*
J -2
j-1 0
J -1 5 6
J - 6,250
j-2
j —*
21,811
-11,488
34,728
13,424
14,084
1,648
BA
O
2,239
1,441
4,282
1,748
5,349
3,259
BA
O
2,239
1,441
4,282
1,748
5,349
3,259
BA
O
24,050
-10,047
39,010
15,172
19,433
4,907
BA
O
J - 5,913
J -3
Off-Budget
Federal funds:
(As shown in detail above)......................
Sum ary
m
Total Other Independent Agencies
(off-budget) ..................................
On-Budget
Federal funds:
(As shown in detail above)
J -2 7
J -4 7
j ~ *
Deductions for offsetting receipts:
Intrafund transactions........................... 601 BA/O
Intrafund transactions from off-budget
accounts........................................... 601 BA/O
Proprietary receipts from the public.... 154 BA/O
351 BA/O
452 BA/O
808 BA/O
908 BA/O
Total Trust funds .............................
52
53
J -5 2
J -3 9
j —*
BA
O
Federal funds
General and Special Funds:
Operating expenses:
Appropriation, current...................... 153 BA
Outlays.............................................
0
1995
estimate
BA
O
Total Federal funds .........................
Trust funds:
(As shown in detail above) ......................
U
nited States Institute of Peace
BA/O
BA/O
BA/O
BA/O
BA/O
BA/O
BA/O
BA/O
1994
estimate
21,145
-12,328
BA
0
34,018
12,941
17,286
5,086
Total Other Independent Agencies ..
Allowances
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
H
ealth Security Act
Federal funds
General and Special Funds:
Access to health care fund
(Health care services):
(Appropriation, permanent).......................
(Outlays)...........................................
(Outlays for grants to State and
local governments)......................
(Health research and training):
(Appropriation, permanent).......................
(Outlays)...........................................
(Outlays for grants to State and
local governments)......................
Total Access to health care fund....
BA
0
P505
**185
0
^(185)
BA
0
P600
**219
0
BA
0
'(219)
.......
1,105
404
1993
actual
Account
1994
estimate
Academic health centers and graduate medical edu
cation:
Appropriation, permanent................
BA
Outlays.............................................
O
Outlays for grants to State and local
governments................................
O
Veterans health care investment fund:
Appropriation, current......................
BA
Outlays.............................................
0
Administrative/start-up costs:
Appropriation, current......................
BA
Outlays.............................................
O
Total Federal funds Health Security
A ct................................................
BA
O
1995
estimate
pm
P340
'(340)
'1,000
'1,000
'1,279
'1,279
.................... .......................
.................... .......................
4,134
3,023
417
25. FEDERAL PROGRAMS BY AGENCY AND ACCOUNT
Allowances—Continued
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
estimate
Contingencies for:
Relatively uncontrollable programs:
Appropriation, current......................
Outlays.............................................
Other requirements:
Appropriation, current......................
Outlays
Allowances for:
Federal funds
General and Special Funds:
Adjustment to continue certain accounts at enacted
levels:
Appropriation, current............................... BA
Outlays
0
Reinventing Federal procurement
Appropriation, current ............................... BA
Outlays............................................
0
Reducing Federal agency rents:
Appropriation, current............................... BA
0
Outlays............................................
Reforming system of payments for grant recipients ad*
ministrative costs:
Outlays..................................................... 0
1993
actual
Account
-2 3 6
-1 7 7
Total Federal funds Allowances for:
J —712
J -5 4 4
-2 0 7
-2 0 3
J
1994
estimate
1995
estimate
BA
0
0
0
BA
o
0
BA
0
-1,155
-1,074
o
Sum ary
m
Federal funds:
Total Allowances..............................
BA
O
2,979
1,949
-1 5 0
Totals
(In millions of dollars)
1993
actual
Account
1994
estimate
1995
estimate
Budget Totals
Federal funds:
(As shown in detail above) ......................
BA
0
Deductions for offsetting receipts:
(As shown in detail above):
Intrafund transactions...........................
BA/O
Interfund transactions from off-budget
accounts...........................................
BA/O
Proprietary receipts from the public....
BA/O
BA/O
Offsetting governmental receipts.........
(Undistributed by agency):
Interfund transactions:
Other interest ....................................... 908 BA/O
Rents and royalties on the Outer Con
tinental Shelf................................... 953 BA/O
Total deductions ..............................
BA/O
Federal fund totals...........................
BA
0
Trust funds:
(As shown in detail above)......................
Deductions for offsetting receipts:
(As shown in detail above):
Intrafund transactions...........................
Intrafund transactions from off-budget
accounts..........................................
Proprietary receipts from the public
(Undistributed by agency):
Off-budget under current law;
Employer share, employee retirement
(on-budget)....................................... 951
' -
14,077
j
BA/O
BA
0
Interfund transactions ( - ) :
Interest received by on-budget trust
funds ............................................... 902 BA/O
J - 11,633
J - 13,053
J -2 ,7 7 0
J - 13,559
J - 7 ,0 6 5
' -23,021
-99,401
J-
22,537
-84,905
J -22,252
-82,669
Total interfund transactions.............
BA/O
-177,958
-164,215
-162,112
Budget totalsA...............................
BA
O
1,204,431
1,141,618
1,219,782
1,202,953
1,238,035
1,223,582
BA
O
2,239
1,441
4,282
1,748
5,349
3,259
BA
O
306,342
304,602
321,980
320,470
338,676
337,184
-1 6
J - 16
Off-Budget Totals
Federal funds:
(As shown in detail above)......................
J -8 5 5
J - 2 ,7 0 8
J - 3,048
-3 0 ,8 5 0
-3 1 ,1 5 0
1,118,526
1,058,099
1,108,457
1,095,907
1,113,337
1,103,350
Trust funds:
(As shown in detail above)......................
-3 6 ,1 6 0
j
Total deductions ..............................
J - 12,620
J -2 ,7 8 5
BA/O
BA/O
1,149,497
1,139,510
—*
302,929
300,543
BA/O
BA/O
1,139,607
1,127,057
Employer share, employee retirement
(on-budget)....................................... 951 BA/O
Applied by agency above....................
BA/O
1995
estimate
j*
J - 11,847
J - 2,141
BA
0
Trust fund totals...............................
1,149,377
1,088,949
1994
estimate
1993
actual
Account
-1 8 4
J - 3,435
J - 30,281
J - 5,165
317,427
313,149
j-1
J - 3,616
J - 32,590
J - 5,680
332,190
327,723
J -1
J - 3,711
J - 35,427
Deductions for offsetting receipts:
(As shown in detail above):
Proprietary receipts from the public
BA/O
Total deductions ..............................
BA/O
Trust fund totals...............................
BA
0
Interfund transactions ( - ) :
Interest received by off-budget trust
funds ................................................ 903 BA/O
Employer share, employee retirement
(off-budget)....................................... 952 BA/O
Applied by agency above....................
BA/O
J-6
j
-6
-1 6
-1 6
321,964
320,454
338,660
337,168
29,073
J —31,669
' —6,416
-6,246
J —6,463
J —6,756
-5,790
-6,639
-39,449
-41,326
-45,064
306,336
304,595
J -26,788
J-
J - 6,241
Total interfund transactions.............
-4 1 ,8 8 7
275,540
271,262
286,810
282,343
BA
O
269,126
266,587
284,919
280,876
298,945
295,364
BA
O
1,473,557
1,408,205
1,504,701
1,483,829
1,536,981
1,518,945
-4 5 ,3 7 9
263,863
261,477
Off-Budget totalsA.........................
Federal Government totalsA........
-3 9 ,0 6 6
BA/O
J -55,537
J - 56,772
J -57,191
418
THE BUDGET FOR FISCAL YEAR 1995
Federal Government Totals
(In millions of dollars)
1995
1994
Outlays
BA
Federal funds:
Enacted, pending and initial requests:
Appropriations............................................................................ ..................
Proposed in this budget:
Supplemental proposal (^ ) .........................................................................
Rescission proposal ( H ) ............................................................... ..................
To be proposed separately:
Legislative Proposals:
Subject to PAYGO ( * ) ........................................................
Not subject to PAYGO (-J)...................................................
Health Security Act:
Not subject to PAYGO ( o ) ..................................................
Subject to PAYGO ( p ) ........................................................
Allowances.................................................................................
Not subject to PAYGO ( / ) ....................................................... ..................
Total Federal funds............................................................... ..................
BA
Outlays
3,207
-2,750
1,127,679
1,134,547
1,140,515
2,310
17
271
-8 1 4
-5 1 6
1,143,432
1,540
17,391
-301
2,841
-2,056
3,008
-6 9 4
-36,160
-668...........
-31,150
-31,150
-2,056
4,119
-7 1 2
-36,160
1,112,738
1,097,655
1,118,686
1,106,610
641,697
633,769
673,799
667,215
-8 1 7
173
-3 5 2
4
-8
Trust funds:
Enacted, pending and initial requests:
Appropriations............................................................................ ..................
Proposed in this budget:
Supplemental proposal (A ) ...................................................... ...................
Rescission proposal { » ) ............................................................... ...................
To be proposed separately:
Legislative Proposals:
Not subject to PAYGO (J) ...................................................
Health Security Act:
Subject to PAYGO ( p ) .................................. ..................... ..................
Not subject to PAYGO ( ' ) ....................................................... ...................
-1 5 0
-41,903
-1 5 0
-41,903
-2,120
-45,395
-2,120
-45,395
Total Trust funds.................................................................. ..................
597,504
591,715
625,470
619,511
Interfund transactions ( - ) ................................................... ..................
-205,541
-205,541
-207,176
-207,176
Federal Government totals................................................... ..................
1,504,701
1,483,829
1,536,981
1,518,945
* Supplemental proposal.
B Legislative proposal, subject to PAYGO.
# Rescission proposal.
J Legislative proposal, not subject to PAYGO.
° Health Security Act, not subject to PAYGO.
^ Health Security Act, subject to PAYGO.
315
-2,455
36...........
-3 6
BUDGET SYSTEM AND CONCEPTS
AND GLOSSAKY
419
26. BUDGET SYSTEM AND CONCEPTS AND GLOSSARY
The budget system of the United States Government
provides the means by which the Government decides
how much money to spend and what to spend it on,
and how to raise the money it has decided to spend.
Once these decisions are made, the budget system en
sures that they are carried out. The Government uses
the budget system to determine the allocation of re
sources among its major functions—such as ensuring
the national defense, promoting commerce, and provid
ing health care—as well as to determine the objectives
and scope of individual programs, projects, and activi
ties. While the focus of the budget system is on dollars,
other resources, such as federal employment, are con
trolled through the budget system, too. The decisions
made in the budget process affect the nation as a whole,
state and local governments, and individual Americans.
Many budget decisions have worldwide significance.
This chapter provides an overview of the budget sys
tem and explains some of the more important budget
concepts. A glossary of budget terms is provided at
the end of the chapter. Summary dollar amounts illus
trate major concepts. These figures and more detailed
amounts are discussed in more depth in other chapters
of the budget document.
The budget system is governed by various laws that
have been enacted to carry out requirements of the
Constitution. The principal laws pertaining to the budg
et system are referred to by title throughout the text,
and complete citations are given later in this chapter.
THE BUDGET PROCESS
The budget process has three main phases, each of
which is interrelated with the others:
(1) formulation of the President’s budget;
(2) congressional action on the budget; and
(3) budget execution.
Formulation of the President’s Budget
The Budget of the United States Government consists
of several volumes that set forth the President's finan
cial proposal with recommended priorities for the Fed
eral Government. The primary focus of the budget is
on the budget year—the next fiscal year for which Con
gress needs to make appropriations. However, the budg
et may propose changes to funding levels already pro
vided for the current year, and it covers the four years
following the budget year in order to reflect the effect
of budget decisions over the longer term. The budget
includes data on the most recently completed fiscal year
so that the budget estimates can be compared to actual
accounting data.
The process of formulating the budget begins not
later than the spring of each year, at least nine months
before the budget is transmitted and at least 18 months
before the fiscal year begins. (See the Budget Calendar
at the end of this section.) The President establishes
general budget and fiscal policy guidelines. Based on
these guidelines, the Office of Management and Budget
(OMB) works with the federal agencies to establish spe
cific policy directions and planning levels for the agen
cies, both for the budget year and for the following
four years, to guide the preparation of their budget
requests.
During the formulation of the budget, there is a con
tinual exchange of information, proposals, evaluations,
and policy decisions among the President, the Director
of OMB, other officials in the Executive Office of the
President, the Secretaries of the departments, and
other heads of Government agencies. Decisions concern
ing the upcoming budget are influenced by the results
of previously enacted budgets, including the one for
the fiscal year in progress, and reactions to the last
proposed budget, which is being considered by Con
gress. Decisions are influenced also by projections of
the economic outlook that are prepared jointly by the
Council of Economic Advisers, OMB, and the Treasury
Department.
In the fall, agencies submit budget requests to OMB,
where budget examiners and management analysts re
view them and identify for OMB officials issues that
need to be discussed with agencies. Many issues are
resolved between OMB and the agency. Others require
the involvement of the President and White House pol
icy officials. This decision-making process is usually
completed by late December. At that time, the final
stage of developing detailed budget data and the prepa
ration of the budget documents begins.
The decision-makers must consider the effects of eco
nomic and technical assumptions on the budget. Inter
est rates, the rate of inflation, employment levels, and
the size of the beneficiary populations are some of the
assumptions that must be made. Small changes in
these assumptions can affect budget estimates by bil
lions of dollars. Budget decisions must also take into
account any statutory limitations on spending and the
deficit (see Budget Enforcement below). Thus, the budg
et formulation process involves the simultaneous con
sideration of the resource needs of individual programs,
the allocation of resources among the functions of the
Government, the total outlays and receipts that are
421
422
ANALYTICAL PERSPECTIVES
appropriate in relation to current and prospective eco
nomic conditions, and statutory constraints.
In most years, the President transmits the budget
to Congress early in each calendar year, eight to nine
months before the beginning of the next fiscal year
on October first. The transmittal of the President's
budget to Congress is scheduled in law for the first
Monday in February. However, the budget has not al
ways been transmitted on the scheduled date for var
ious reasons. In some years, Congress has been late
in passing appropriations acts for the fiscal year prior
to the budget year, which delays preparation of the
budget. Also, this schedule does not require an outgoing
President to transmit a budget. In such a case, it is
not practical for an incoming President to complete a
budget within a few days of taking office on January
20th.1
Congressional A ction
Congress considers the President's budget proposals
and approves, modifies, or disapproves them. It can
change funding levels, eliminate programs, or add pro
grams not requested by the President. It can add or
eliminate taxes and other sources of receipts, or make
other changes that affect the amount of receipts col
lected.
Congressional review of the budget begins shortly
after the President transmits the budget to Congress.
Under the procedures established by the Congressional
Budget Act of 1974, Congress considers budget totals
before completing action on individual appropriations.
The Act requires each standing committee of Congress
to report on budget estimates to the House and Senate
Budget Committees within six weeks after the Presi
dent's budget is transmitted. The Budget Committees
then initiate the concurrent resolution on the budget.
The budget resolution sets targets for total receipts
and for budget authority and outlays, in total and by
functional category (see Functional C lassification
below). It allocates amounts of budget authority and
outlays within the functional category totals to the com
mittees that have jurisdiction over the programs in the
functions. The budget resolution is scheduled to be
adopted by the whole Congress by April 15 of each
year, but passage is often delayed. After passage of
the budget resolution, a point of order can be raised
to block consideration of bills that would cause a com
mittee's allocation to be exceeded. Like the President's
budget, the budget resolution is subject to spending
limitations imposed in law through 1998.
Budget resolutions are not laws and, therefore, do
not require the President's approval. However, Con
gress considers the Administration's views, because leg
islation developed to meet congressional budget targets
does require the President's approval. In some years,
the President and the joint leadership of Congress have
formally agreed on the framework of a deficit reduction
-iThe transmittal date was changed in 1990 from the first Monday after January 3rd.
Thus, President Clinton was the first President in modern times to face this problem.
The 1994 Budget was transmitted in early April 1993.
plan. These agreements were reflected in the budget
legislation passed for those years.
Congress does not enact a budget as such. It provides
spending authority for specified purposes in several ap
propriations acts each year (usually thirteen). In mak
ing appropriations, Congress does not vote on the level
of outlays (spending) directly, but rather on budget
authority, which is the authority to incur legally bind
ing obligations of the Government that will result in
immediate or future outlays. In a separate process,
prior to making appropriations, Congress usually enacts
legislation that authorizes an agency to carry out a
particular program and, in some cases, includes limits
on the amount that can be appropriated for the pro
gram. Some programs require annual authorizing legis
lation, some are authorized for a specified number of
years, and others are authorized indefinitely. Congress
may enact appropriations for a program even though
there is no specific authorization for it.
Appropriations bills are initiated in the House. The
Appropriations Committee in each body has jurisdiction
over annual appropriations. Those committees are di
vided into subcommittees that hold hearings and review
detailed budget justification materials prepared by the
agencies within the subcommittee's jurisdiction. After
a bill has been approved by the committee and by the
whole House, usually with amendments to the original
version, it is forwarded to the Senate, where a similar
review follows. In case of disagreement between the
two Houses of Congress, a conference committee (con
sisting of Members of both bodies) meets to resolve
the differences. The report of the conference committee
is returned to both Houses for approval. When the
measure is agreed to, first in the House and then in
the Senate, it is ready to be transmitted to the Presi
dent as an enrolled bill, for approval or veto.
If action on one or more appropriations bills is not
completed by the beginning of the fiscal year, Congress
enacts a joint continuing resolution to provide authority
for the affected agencies to continue financing oper
ations up to a specified date or until their regular ap
propriations are enacted. In some years, a portion or
all of the Government has been funded for the entire
year by a continuing resolution. Continuing resolutions
must be presented to the President for approval or veto.
Congress also provides spending authority in perma
nent laws; that is, laws that do not need to be reen
acted each year. In fact, while spending authority for
the majority of Federal programs is provided each year
in appropriations acts, most of the total spending au
thority available in a year is provided by permanent
laws. This is because the budget authority for interest
on the public debt ($293 billion in 1993) and a few
programs with large amounts of obligations each year,
such as social security ($306 billion in 1993), are funded
by permanent law. The outlays from permanent budget
authority, together with the outlays from obligations
incurred with budget authority provided in previous
years, account for the majority of the outlay total for
any year. Therefore, most outlays in a year are not
423
26. BUDGET SYSTEM AND CONCEPTS AND GLOSSARY
controlled through appropriations actions for that year.
The types of budget authority, their control by Con
gress, and the relation of outlays to budget authority
are discussed in more detail in later sections.
Almost all taxes and most other receipts result from
permanent laws. Tax bills are initiated in the House.
The House Ways and Means Committee and the Senate
Finance Committee review proposed tax measures.
In each of the last several years, Congress has en
acted an omnibus budget reconciliation act (OBRA),
which combines many amendments to permanent laws
in order to change outlays and receipts that are not
controlled by appropriations acts. For example, benefit
formulas or eligibility requirements for entitlement pro
grams may be modified, or Government agencies may
be authorized to charge fees to cover some of their
costs. These acts, together with appropriations acts for
the year, often implement agreements between the
President and the Congress. Such acts may provide
the means for enforcing these agreements, as described
below.
Budget Enforcement
The Balanced Budget and Emergency Deficit Control
Act of 1985 (commonly known as the Gramm-RudmanHollings Act) constrains legislation that would increase
spending or decrease receipts through 1998. It was ex
tended and amended extensively by the Budget En
forcement Act of 1990 and extended again by the Omni
bus Budget Reconciliation Act of 1993.
The Act divides spending into two types—discre
tionary spending and d irect spending (sometimes
called mandatory spending). Discretionary spending is
controlled through annual appropriations acts. Funding
for salaries and other operating expenses of Govern
ment agencies, for example, is usually discretionary be
cause it is usually provided by appropriations acts. Di
rect spending is controlled by permanent laws. Medi
care and medicaid payments, unemployment insurance
benefits, and farm price supports are examples of direct
spending, because payments for those purposes are au
thorized in permanent laws. The Act specifically defines
funding for the Food Stamp program as direct spending,
even though funding for the program is provided in
appropriations acts. The Act includes receipts under
the same rules that apply to direct spending, because
receipts are generally controlled by permanent laws.
The Act constrains discretionary spending differently
from direct spending and receipts. Discretionary spend
ing is constrained by dollar limits (“caps”) on budget
authority and outlays for each fiscal year through 1998.
The limits are adjusted when the budget is transmitted
each year for actual inflation rates and for certain other
reasons. The limits for this budget, adjusted to reflect
budget proposals, are shown in the following table:
DISCRETIONARY SPENDING LIMITS
(In billions of dollars)
1994
Budget au th ority...........
515
544
1995
525
548
1996
525
555
1997
534
554
1998
537
554
If the amount of budget authority provided in appro
priations acts for the year exceeds the limit on budget
authority, or the amount of outlays estimated to result
from this budget authority is estimated to exceed the
limit on outlays the Act specifies a procedure, called
sequestration, for reducing discretionary spending.
Under a sequester, spending for most discretionary pro
grams is reduced by a uniform percentage. Special rules
apply in reducing some programs, and some programs
are exempt from sequester by law. From adjournment
of a session of Congress (usually in the Fall of each
year) through the following June 30th, discretionary
sequesters take place whenever an appropriation bill
causes a limit to be breached. Because a sequester in
the last quarter of a fiscal year might be too disruptive,
the Act specifies that a sequester that otherwise would
be required then is to be accomplished by reducing
the limit for the next fiscal year. This ensures that
regular appropriations acts, which are normally enacted
before Congress adjourns in the fall, and any supple
mental appropriations enacted during the fiscal year
are covered.
Direct spending and receipts are constrained through
“pay-as-you -go” rules. Under these rules, the cumu
lative effects of legislation affecting direct spending or
receipts must not increase the deficit. Legislated in
creases in benefit payments, for example, have to be
offset by legislated reductions in other direct spending
or increases in receipts. Following the end of a session
of Congress, OMB estimates the net effect on the deficit
of laws enacted since the Act was passed that affect
direct spending and receipts. If there is an estimated
net increase in the deficit for the current fiscal year
and the budget year combined, the Act specifies seques
ter procedures for the uniform reduction of most non
exempt direct spending programs. Special rules apply
in reducing some non-exempt programs. Less than 3
percent of all direct spending is sequesterable; the rest
is exempt from sequester by law.
The Act provides that the estimates and calculations
that determine whether there is to be a sequester are
to be made by OMB and reported to the President
and Congress. The Congressional Budget Office (CBO)
is required to make the same estimates and calcula
tions, and the Director of OMB is required to explain
any differences between the OMB and CBO estimates.
The estimates and calculation by OMB are the basis
for sequester orders issued by the President. The Presi
dent’s orders may not change any of the particulars
of the OMB report. The General Accounting Office is
required to prepare compliance reports.
424
ANALYTICAL PERSPECTIVES
Budget E xecution
Govemment officials are generally required to spend
no more and no less than has been appropriated, and
they may use funds only for purposes specified in law.
Additionally, the funds available to most executive
branch agencies are subject to apportionm ent under
the Antideficiency Act. Under the Act, OMB usually
apportions by time periods (usually by quarter of the
fiscal year) and sometimes by activities. Agencies may
request that an account be reapportioned during the
year to accommodate changing circumstances. This system helps to ensure that funds are available to cover
operations for the entire year.
If changes in laws or other factors make it necessary,
Congress may enact supplem ental appropriations,
For example, a 1993 supplemental appropriation act
provided disaster assistance for the Midwest floods.
On the other hand, the Executive Branch may withhold amounts appropriated from obligation, under cer-
tain limited circumstances, in order to provide for contmgencies, to achieve savings made possible through
changes m requirements or ^eater efficiency of operatums,or as specifically provided in law. The Impoundmen^ Control Act of 1974 specifies the procedures that
must be followed if funds are withheld. D eferrals,
which are temporary withholdings, take effect immediately unless overturned by an act of Congress. In
1993, a total of $4.5 billion in deferrals were reported
to Congress and none were overturned. Rescissions,
which permanently cancel budget authority, do not take
effect unless Congress passes a law approving them,
If such a law is not passed within 45 days of continuous
session, the withheld funds must be made available
for spending. In total, Congress has approved less than
one-third of the amount of funds that Presidents have
proposed for rescission. In 1993, the President proposed
rescissions totalling $356 million, and Congress enacted
a total of $206 million.
Budget Calendar
The following timetable highlights the dates of significant budget events during the year.
Between the 1st Monday in
January and the 1st
Monday in February...... .. President transmits the budget, including a sequester preview report
Six weeks later................. .. Congressional committees report budget estimates to Budget Committees.
April 15 ............................ ..Action to be completed on congressional budget resolution.
May 15 ............................. ..House consideration of annual appropriations bills may begin.
June 15 ............................ ..Action to be completed on reconciliation.
June 30 ............................ ..Action on appropriations to be completed by House.
July 15 ............................. ..President transmits Mid-Session Review of the budget.
August 2 0 ............................OMB updates the sequester preview.
October 1 .............................Fiscal year begins.
15 days after the end of a
session of Congress........ ..OMB issues final sequester report, and the President issues a sequester order, if necessary.
COVERAGE OF THE BUDGET
Federal Governm ent and Budget Totals
The budget documents provide information on all
Federal agencies and programs. The total receipts and
outlays of the Federal Government are composed of
both on-budget receipts and outlays and off-budget re
ceipts and outlays. By law, the receipts and outlays
of social security (the Federal Old-Age and Survivors
Insurance and the Federal Disability Insurance trust
funds) and the Postal Service Fund are excluded from
the budget totals and from the calculation of the deficit
for Gramm-Rudman-Hollings Act purposes. The offbudget transactions are separately identified in the
budget. The on-budget and off-budget amounts are
added together to derive totals for the Federal Govern
ment.
TOTALS FOR THE BUDGET AND THE FEDERAL
GOVERNMENT
(In billions of dollars)
1993
actual
On-budget:
Budget authority .................. .............
.............
Receipts ................................ .............
1994
esti
mated
1995
esti
mated
1,204
1,142
842
1,220
1,203
913
1,238
1,224
999
Deficit................................ .............
Off-budget:
Budget authority .................. .............
.............
Receipts ................................ .............
-300
-290
-225
269
267
312
285
281
336
299
295
355
Surplus.............................. .............
Federal Government:
Budget authority .................. .............
.............
45
55
60
1,474
1,408
1,505
1,484
1,537
1,519
26. BUDGET SYSTEM AND CONCEPTS AND GLOSSARY
425
TOTALS FOR THE BUDGET AND THE FEDERAL
GOVERNMENT—Continued
• Activities and programs are normally classified ac
cording to their primary purpose (or function) re
gardless of which agencies conduct the activities.
Chapter 7, "Federal Spending by Function, Subfunc
tion, and Major Program” in this volume provides infor
mation on budget authority and outlays by function
and subfunction.
(In billions of dollars)
1993
actual
1994
esti
mated
1995
esti
mated
Receipts ............................ .....................
1,154
1,249
1,354
D eficit............................ .....................
-255
-235
-165
Neither the on-budget nor the off-budget totals in
clude transactions of Government-sponsored enter
prises, such as the Federal National Mortgage Associa
tion (Fannie Mae) and the Student Loan Marketing
Association (Sallie Mae). The enterprises were estab
lished by federal law for public policy purposes but
are privately owned and operated corporations. Because
of their close relationship to the Government, these
enterprises are discussed in several parts of the budget
and financial data are reported in the Appendix to the
Budget of the United States Government and some de
tailed tables.
A presentation for the Board of Governors of the Fed
eral Reserve System is included in the budget for infor
mation only. The amounts are not included in either
the on-budget or off-budget totals because of the inde
pendent status of the System.
Functional Classification
Agencies, Accounts, Programs, Projects, and
Activities
Various summary tables in this volume provide infor
mation on budget authority, outlays, and receipts
arrayed by Federal agency. Chapter 25, “Federal Pro
grams by Agency and Account,” in this volume consists
of a table that lists budget authority and outlays by
budget account within each agency and the totals for
each agency of budget authority, outlays, and receipts
that offset the agency spending totals. The Appendix
to the Budget of the United States Government provides
budgetary, financial, and descriptive information about
programs, projects, and activities by account within
each agency. That volume of the budget also presents
the most recently enacted appropriation language for
an account and any changes that are proposed to be
made for the budget year.
Types of Funds
Agency activities are financed through Federal funds
and trust funds.
The functional classification arrays budget authority,
Federal funds comprise several types of funds. The
outlays, and other budget data according to the major general fund, which is the greater part of the budget,
purpose served—such as agriculture, income security, is credited with receipts not earmarked by law for a
and national defense. There are nineteen major func specific purpose, such as almost all income tax receipts,
tions, most of which are divided into subfunctions. For and is also credited with the proceeds of general bor
example, the Agriculture function is divided into rowing. General fund appropriation accounts record
Farm Income Stabilization and Agricultural and general fund expenditures. General fund appropriations
Research Services. The functional classification is an are drawn from general fund receipts collectively and,
integral part of the congressional budget process, and therefore, are not specifically linked to receipt accounts.
the functional array meets the Congressional Budget Special funds consist of receipt accounts for Federal
Act requirement for a presentation in the budget by fund receipts that are earmarked by law for specific
purposes and associated appropriation accounts for the
national needs and agency missions and programs.
The following criteria are used in the establishment expenditure of the earmarked receipts. Public enterof functional categories and the assignment of activities prise (revolving) funds are used for programs author
ized by law to conduct a cycle of business-type oper
to them:
• A function comprises activities with similar pur ations, primarily with the public, in which outlays gen
poses addressing an important national need. The erate collections. The collections and the outlays of the
are
recorded
in
the
same
account.
emphasis is on what the Federal Government fund
Intragovemmental funds are revolving funds that
seeks to accomplish rather than the means of ac
complishment, the objects purchased, or the clien conduct business-type operations primarily within and
between Government agencies.
tele or geographic area served.
• A function must be of continuing national impor
Trust funds are established to account for the re
tance, and the amounts attributable to it must ceipt and expenditure of monies by the Government
be significant.
for carrying out specific purposes and programs in ac
• Each basic unit being classified (generally the ap cordance with the terms of a statute that designates
propriation or fund account) usually is classified the fund as a trust fund (such as the Highway Trust
according to its predominant purpose and assigned Fund) or for carrying out the stipulations of a trust
to only one subfunction. However, some large ac agreement (such as any of several trust funds for gifts
counts that serve more than one major purpose and donations for specific purposes). Trust revolving
are subdivided into two or more subfunctions.
funds are credited with collections earmarked by law
426
ANALYTICAL PERSPECTIVES
to carry out a cycle of business-type operations. There
is no substantive difference between a trust fund and
a special fund or between a trust revolving fund and
a public enterprise revolving fund.
Current Expenses and Capital Investment
The budget includes spending for all types of spend
ing, including both current operating expenses and cap
ital investment. Capital investment includes purchase
of land, structures, and equipment. It also includes sub
sidies for capital investment provided by direct loans
and loan guarantees; the purchase of other financial
assets; and the conduct of research, development, edu
cation, and training.
COLLECTIONS
In General
Money collected by the Government is classified into
two major categories:
• Governmental receipts, which are compared in
total to outlays (net of offsetting collections) in
calculating the surplus or deficit.
• Offsetting collections, which are deducted from
gross outlays to produce net outlay figures.
Offsetting Collections Credited to Expenditure
Accounts
For all revolving funds and many appropriation ac
counts, laws authorize collections to be credited directly
to expenditure accounts and, usually, to be spent for
the purpose of the account without further action by
Congress. For example, a permanent law authorizes the
Postal Service to use collections from the sale of stamps
to finance its operations without a requirement for an
Governmental Receipts
nual appropriations. The offsetting collections that are
These are collections from the public that result pri authorized to be spent are recorded as budget authority.
marily from the exercise of the Government’s sovereign Sometimes, however, appropriations acts contain limita
or governmental powers. Governmental receipts consist tions on the obligations that can be financed by such
mostly of individual and corporate income taxes and budget authority. In those cases, the recorded budget
social insurance taxes, but also include compulsory user authority is adjusted to reflect the amount available
charges, receipts from customs duties, court fines, cer to incur obligations. The budget authority and outlays
tain license fees, and deposits of earnings by the Fed of the appropriation or fund account are shown both
eral Reserve System. Gifts and donations are also gross (that is, before deducting offsetting collections)
counted as governmental receipts. Total receipts for the and net (that is, after deducting offsetting collections).
Federal Government include both on-budget and off- Totals for the agency, subfunction, and budget are net
budget receipts (see the table, "Totals for the Budget of offsetting collections.
and Federal Government,” which appears earlier in this
Offsetting Receipts
section.)
Offsetting collections that are not authorized to be
Offsetting Collections
credited to expenditure accounts are credited to general
These Eire amounts received from the public as a fund, special fund, or trust fund receipt accounts and
result of business-like or market-oriented activities (for are called offsetting receipts. Offsetting receipts are de
example, proceeds from the sale of postage stamps or ducted from budget authority and outlays in arriving
electricity, fees for admittance to recreation areas, or at total budget authority and outlays. In most cases,
the proceeds from the sale Government-owned land) such deductions are made at the subfunction and agen
and amounts collected from other Government accounts. cy levels. Unlike offsetting collections credited to ex
Offsetting collections from the public are deducted from penditure accounts, offsetting receipts do not offset
gross budget authority and outlays, rather than com budget authority and outlays at the account level. Off
bined with governmental receipts. The purpose of this setting receipts are subdivided into three categories,
treatment is to produce budget totals for receipts, budg as follows:
et authority, and outlays that represent governmental
• Proprietary receipts from the public.—These
rather than market activity. Intragovemmental offset
are collections from the public, deposited in receipt
accounts, that arise out of the business-type or
ting collections are deducted from gross budget author
ity and outlays in order to avoid the double counting
market-oriented activities of the Government.
that would occur if budget authority and outlays for
Most proprietary receipts are deducted from the
both the payment between Government accounts and
budget authority and outlay totals of the agency
that conducts the activity generating the receipt
the payment from a Government account to the public
and of the subfunction to which the activity is
were included in the totals.
assigned. For example, fees for using National
Offsetting collections are classified into two major
Parks are deducted from the totals for the Depart
categories: offsetting collections credited to appro
ment of Interior, which has responsibility for the
priation or fund accounts, and offsetting receipts
parks, and the Recreational Resources subfunc
(that is, offsetting collections deposited in receipt ac
tion. A limited number of proprietary receipts,
counts). The offset is applied differently for each type.
26. BUDGET SYSTEM AND CONCEPTS AND GLOSSARY
however, are not offset against any specific agency
or function and are classified as undistributed off
setting receipts. They are deducted from the Govemment-wide totals for budget authority and out
lays. For example, the collections of rent and roy
alties from Outer Continental Shelf lands are un
distributed because the amounts are large and for
the jnost part are not related to the spending of
the agency and subfunction that administers the
transactions.
Intragovernmental transactions.—These are
collections from appropriation or fund accounts
that are deposited into receipt accounts. Most intragovemmental transactions are deducted from
the budget authority and outlays of the agency
that conducts the activity generating the receipts
and of the subfunction to which the activity is
assigned. In two cases, however, intragovemmental transactions appear as special deductions
in computing total budget authority and outlays
for the Government rather than as offsets at the
agency level—agencies' payments as employers
into employee retirement trust funds and interest
received by trust funds. The special treatment for
427
these receipts is necessary because the amounts
are large and would distort the agency totals if
attributed to the agencies.
• Offsetting governmental receipts.—These are
collections that are governmental in nature but
are required by law to be treated as offsetting.
There are several categories of intragovernmental
transactions. Intrabudgetary transactions include all
payments from on-budget expenditure accounts to onbudget receipt accounts. These are subdivided into
three categories: (1) interfund transactions, where
the payment is from one fund group (either Federal
funds or trust funds) to a receipt account in the other
fund group; (2) Federal intrafund transactions,
where the payment and receipt both occur within the
Federal fund group; and (3) trust intrafund trans
actions, where the payment and receipt both occur
within the trust fund group. In addition, there are intragovemmental
transactions
that
are
not
intrabudgetary—payments from on-budget expenditure
accounts to off-budget receipt accounts, and from offbudget expenditure accounts to on-budget receipt ac
counts.
BUDGET AUTHORITY AND OTHER BUDGETARY RESOURCES, OBLIGATIONS, AND OUTLAYS
Budget Authority and Other Budgetary
Resources
Government agencies are permitted to enter into obli
gations requiring either immediate or future outlays
only when they have been granted authority to do so
by law. This authority is recorded as budget authority
in the year that it first becomes available. Unobligated
balances of budget authority may remain available from
previous years, but they are not recorded as budget
authority again in subsequent years. They do, however,
constitute a budgetary resource that is available for
obligation. The use of budgetary resources may be con
strained by the imposition of legally binding limitations
on obligations (for example, obligations for administra
tive expenses of benefit programs). Such limitations
substitute for budget authority, for some purposes, and
are treated as a budgetary resource.
In deciding the amount of budget authority to request
for a program, project, or activity, Government officials
estimate the total amount of obligations that will need
to be incurred to achieve desired goals and subtract
the amounts of unobligated balances available for these
purposes. The amount of budget authority requested
is influenced by the nature of the programs, projects,
or activities being financed. For current operating ex
penses, the amount requested usually is the amount
estimated to be needed for the year. For major procure
ment programs and construction projects, a full funding
policy generally applies. Under this policy, an amount
that is estimated to be adequate to complete the pro
curement or project must be requested to be appro
priated in the first year, even though it may be obli
gated over several years. This policy is intended to
avoid piecemeal funding of programs and projects that
cannot be used until they have been completed.
Budget authority takes several forms:
• appropriations, which permit obligations to be
incurred and payments to be made;
• borrowing authority, which permits obligations
to be incurred but requires that funds be bor
rowed, generally from the general fund of the
Treasury, to make payment; and
• contrcuct authority, which permits obligations in
advance of a separate appropriation of the cash
for payment or in anticipation of the collection
of receipts that can be used for payment.
The form of budget authority is usually determined
in the authorizing statute for a program. Most pro
grams are funded by appropriations. An appropriation
may make available funds from the general fund, spe
cial funds, trust funds, or a combination of those
sources. The authority to spend offsetting collections
credited to expenditure accounts is another form of ap
propriation. Borrowing authority is usually authorized
for business-like activities where the activity being fi
nanced is expected to produce income over time with
which to repay the borrowing with interest. Contract
authority is a traditional form of budget authority for
certain programs, particularly transportation programs.
Budget authority that is provided in an annual appro
priations act is available for obligation only during the
fiscal year to which the appropriations act applies, un
less the appropriation language providing the budget
authority specifies that it is to remain available for
a longer period. Typically, budget authority for current
operations is made available for obligation in only one
428
year. Some budget authority is made available for a
specified number of years. Other budget authority, in
cluding most provided for construction, some for re
search, and many appropriations of trust fund receipts,
is made available for obligation until the amount appro
priated has been expended or until the program objec
tives have been attained.
Congress usually makes budget authority available
on the first day of the fiscal year for which the appro
priations act is passed. Occasionally, the appropriations
language specifies a different timing. The language may
provide an advance appropriation—budget authority
that does not become available until one year or more
beyond the fiscal year for which the appropriations act
is passed. Forward funding refers to budget authority
that is made available for obligation beginning in the
last quarter of the fiscal year (beginning on July 1st)
for the financing of ongoing grant programs during the
next fiscal year. This kind of funding is used mostly
for education programs, so that obligations for grants
can be made prior to the beginning of the next school
year. For certain benefit programs funded by annual
appropriations, the appropriation provides for advance
funding—budget authority that is to be charged to
the appropriation in the succeeding year but which au
thorizes obligations to be incurred in the last quarter
of the fiscal year if necessary to meet benefit payments
in excess of the specific amount appropriated for the
year.
When budget authority is made available by law for
a specific period of time, any part that is not obligated
during that period expires and cannot be used later.
Provisions of law that extend the availability of unobli
gated amounts that have expired or would otherwise
expire are called reappropriations. Reappropriations
are counted as new budget authority in the fiscal year
in which the balances become newly available. For ex
ample, if a 1994 appropriations act extends the avail
ability of unobligated budget authority that otherwise
would expire at the end of 1993, new budget authority
would be recorded for 1994.
Budget authority is classified in the budget as cur
rent or permanent. Generally, budget authority is cur
rent if it is provided by annual appropriations acts and
permanent if it becomes available pursuant to standing
authorizing legislation. Advance appropriations of budg
et authority are classified as permanent, even though
they are provided in annual appropriations acts, be
cause they become available a year or more following
the year to which the act pertains. The authority to
spend offsetting collections credited to appropriation
and revolving fund accounts usually is provided by au
thorizing legislation and, therefore, is usually a form
of permanent budget authority.
Obligations and outlays resulting from permanent
budget authority, including the authority to spend off
setting collections credited to expenditure accounts, ac
count for more than half of the budget totals. Put an
other way, less than half of the obligations and outlays
in the budget result from annual appropriations acts.
ANALYTICAL PERSPECTIVES
Most permanent budget authority, other than the au
thority to spend offsetting collections, arises from the
authority to spend trust fund receipts and the authority
to pay interest on the public debt. Most authority to
spend offsetting collections applies to public enterprise
revolving funds.
Budget authority also is classified in the budget as
definite or indefinite. Budget authority is definite if
the legislation that provides it specifies a definite dollar
amount (including an amount not to be exceeded).
Budget authority is indefinite if, instead of specifying
an amount, the legislation providing it permits the
amount to be determined by subsequent circumstances.
For example, indefinite budget authority is provided
for interest on the public debt, payment of claims and
judgments awarded by the courts against the U.S., and
many entitlement programs. Many of the laws that au
thorize collections to be credited to revolving, special,
and trust funds make all of the collections available
for expenditure for the authorized purposes of the fund.
Such authority is considered to be indefinite budget
authority. In some such cases, only some of these
amounts are counted as budget authority, because they
are precluded from obligation in a fiscal year by a provi
sion of law, such as a limitation on obligations or a
benefit formula (for example, the formula for unemploy
ment insurance benefits).
O bligations Incurred
Following the enactment of budget authority and the
completion of required apportionment action, Govern
ment agencies incur obligations. Such obligations in
clude: the current liabilities for salaries, wages, and
interest; contracts for the purchase of supplies and
equipment, construction, and the acquisition of office
space, buildings, and land; and other arrangements re
quiring the payment of money. For Federal credit pro
grams, obligations are recorded in an amount equal
to the estimated subsidy cost of direct loans and loan
guarantees (see FEDERAL CREDIT below).
Outlays
Outlays are recorded when obligations are paid. The
amount of the outlay is the amount paid. Obligations
are usually paid in the form of cash (currency, checks,
or electronic fund transfers). However, obligations also
may be paid and outlays recorded even though no cash
is disbursed. For example, outlays are recorded for the
full amount of Federal employees’ salaries, even though
the cash disbursed to the employee is net of Federal
and state taxes, retirement contributions, life and
health insurance premiums, and other deductions. (Re
ceipts are also recorded for the deductions that rep
resent payments to the Government.) Outlays are re
corded when debt instruments (bonds, debentures,
notes, or monetary credits) are used to pay obligations.
(An increase in debt is also recorded when such instru
ments are used.) For example, the acquisition of phys
ical assets through certain types of lease-purchase ar
rangements is treated as though an outlay were made
429
26. BUDGET SYSTEM AND CONCEPTS AND GLOSSARY
for an outright purchase. Because no cash is paid at
that time to the nominal owner of the asset, a debt
is recorded. Lease payments in such cases are recorded
as repayments of principal and interest.
The treatment of interest varies. Outlays for the in
terest on the public issues of Treasury debt securities
are recorded as the interest accrues, not when the cash
is paid. Interest on special issues of the debt securities
held by trust funds and other Government accounts
is normally stated on a cash basis. When a Government
account invests in Federal debt securities, the purchase
price is usually close or identical to the par (face) value
of the security. The budget records the investment at
par value and adjusts the interest paid by Treasury
and collected by the account by the difference between
purchase price and par, if any. However, in the case
of two trust funds in the Department of Defense, the
Military Retirement Trust Fund and the Education
Benefits Trust Fund, the differences between purchase
price and par are routinely relatively large. For these
funds, the budget records the holdings of debt at par
but records the differences between purchase price and
par as adjustments to the assets of the funds that are
amortized over the life of the security. Interest is re
corded as the amortization occurs. The special issues
of zero-coupon bonds held by the Pension Benefit Guar
anty Corporation are recorded at market value and the
interest is accrued.
For Federal credit programs, outlays for the subsidy
cost of direct loans and loan guarantees are recorded
as the underlying loans are disbursed.
Refunds of receipts (such as income taxes in excess
of tax liabilities) are recorded as reductions of receipts,
rather than as outlays.
Outlays during a fiscal year may be for the payment
of obligations incurred in the same year or in prior
years. Obligations, in turn, may be incurred under
budget authority provided in the same or in prior years.
Outlays, therefore, flow in part from unexpended bal
ances of prior year budget authority and in part from
budget authority provided for the year in which the
money is spent. The ratio of the outlays resulting from
budget authority enacted in any year to the amount
of that budget authority is referred to as the spendout
rate for that year.
Outlays for an account are stated both gross and
net of offsetting collections, but function, agency, and
Government-wide outlay totals are only stated net.
Total outlays for the Federal Government include both
on-budget and off-budget outlays. (See the table, “Totals
for the Budget and Federal Government,” which ap
pears earlier in this section.)
Balances of Budget Authority
Not all budget authority enacted for a fiscal year
results in obligations and outlays in the same year.
In the case of budget authority that is available for
more than one year, the unobligated balance of budg
et authority that is still available at the end of a year
may be carried forward for obligation in the following
year. The obligated balance is that portion of the
budget authority that has been obligated but not yet
paid. For example, in the case of salaries and wages,
1 to 3 weeks elapse between the time of obligation
and the time of payment. In the case of major procure
ment and construction, payment may occur over several
years. Obligated balances of budget authority are car
ried forward until the obligations are paid.2
A change in the amount of obligations incurred from
one year to the next is not necessarily accompanied
by an equal change in either the budget authority or
the outlays of that same year. Conversely, a change
in budget authority in any one year may cause changes
in the level of obligations and outlays for several years.
FEDERAL CREDIT
Government programs may be carried out through
federally supported credit in the form of direct loans
or loan guarantees. A direct loan is a disbursement
of funds by the Government to a non-Federal borrower
under a contract that requires the repayment of such
funds with or without interest. A loan guarantee is
any guarantee, insurance, or other pledge with respect
to the payment of all or a part of the principal or
interest on any debt obligation of a non-Federal bor
rower to a non-Federal lender. The Federal Credit Re
form Act prescribes the budget treatment for Federal
credit programs. This treatment is designed to measure
the cost of subsidizing direct loans and guaranteed
loans in the budget, rather than the cash flows, so
they can be compared to each other and to other meth-
ods of delivering benefits, such as grants, on an equiva
lent basis.
Under credit reform, the estimated long-term cost to
the Government arising from the direct loans and loan
guarantees of a credit program must be estimated and
recorded in the budget in a credit program account.
The cost is calculated on the basis of the net present
value of estimated disbursements over^the term of the
loan less estimated collections.3 For most programs, di
rect loan obligations and loan guarantee commitments
cannot be made unless Congress has appropriated
funds for the costs in advance in annual appropriations
acts. In addition, the appropriation language for most
credit programs includes annual limitations on the
amount of obligations for direct loans and commitments
for loan guarantees.
zAdditional information is provided in a separate report, “Balances of Budget Authority,”
which is available from the National Technical Information Service, Department of Com
merce, shortly after the budget is transmitted.
3Present value is a standard financial concept that allows for the time value of money,
that is, for the fact that a given sum of money is worth more at present than in the
future because interest can be earned on it. The cost of direct loans and loan guarantees
is a net present value because collections are offset against disbursements.
430
ANALYTICAL PERSPECTIVES
When a direct or guaranteed loan is disbursed, the
program account makes a payment equal to the cost,
which is recorded as an outlay, to a non-budgetary
credit financing account For a few programs, the
computed cost is negative for a portion or all of the
direct loans and loan guarantees. In such cases, the
financing account makes a payment to a special fund
receipt account established for the program, where it
is recorded as an offsetting receipt.
The cost of the outstanding direct and guaranteed
loans is reestimated each year. If the cost is estimated
to have increased, an additional outlay is made from
the program account to the financing account, and, if
the cost is estimated to have decreased, a payment
is made from the financing account to the program’s
special fund receipt account, where it is recorded as
an offsetting receipt. A permanent appropriation is
available to pay the increased costs resulting from
reestimates.
If the terms of an outstanding direct loan or loan
guarantee are modified in a way that increases the
cost, an outlay in the amount of the increased cost
is made from the program account to the financing
account. The additional cost is recorded as an obligation
against the budget authority provided for the costs of
the program for that year. The requirement to record
the costs of modification applies to pre-credit reform,
as well as post-credit reform, direct loans and loan
guarantees.
Credit financing accounts record all cash flows to and
from the Government arising from direct loan obliga
tions and loan guarantee commitments. These cash
flows consist mainly of direct loan disbursements and
repayments and loan guarantee default payments. The
cash flows of direct loans and of loan guarantees are
recorded in separate financing accounts for programs
that do both. The transactions of the financing accounts
are displayed in the budget documents for information
and analytical purposes, together with the related pro
gram accounts, but are excluded from the budget totals
because they are not a cost to the Government. Financ
ing account transactions are a means of financing a
budget surplus or deficit (see Credit Financing Ac
counts below).
The transactions associated with direct loan obliga
tions and loan guarantee commitments made prior to
1992 continue to be accounted for on a cash flow basis
and are recorded in liquidating accounts. In most
cases, the liquidating account is the account that was
used for the program prior to the enactment of credit
reform in 1990.
BUDGET DEFICIT OR SURPLUS AND MEANS OF FINANCING
A budget deficit is the amount by which outlays ex
ceed receipts. Deficits are financed by borrowing and,
to a limited extent, the other items discussed under
this heading. The debt (debt held by the public) is the
cumulative amount of borrowing to finance deficits, less
repayments. When receipts exceed outlays, the dif
ference is a budget surplus. Surpluses are used to re
duce debt and, to a limited extent, may be absorbed
by the other items.
B orrow ing and Repaym ent
Exercise o f M onetary Pow er
Seigniorage is the profit from coining money. It is
the difference between the value of coins as money
and their cost of production. Seigniorage on coins arises
from the exercise of the Government's monetary powers
but differs from receipts coming from the public, since
there is no corresponding payment by another party.
Therefore, seigniorage is excluded from receipts and
treated as a means of financing the deficit other than
borrowing from the public. The increment (profit) re
sulting from the sale of gold as a monetary asset also
is treated as a means of financing, since the value
of gold is determined by its value as a monetary asset
rather than as a commodity.
Borrowing is not defined as receipts, and debt repay
ment is not defined as outlays. If they were, the budget
would virtually be balanced by definition. This rule ap
plies both to borrowing in the form of Treasury securi
Credit Financing Accounts
ties and to specialized borrowing in the form of agency
securities (including the issuance of debt securities to
The net cash flows of credit programs are recorded
liquidate an obligation and the sale of certificates rep in credit financing accounts, which are excluded from
resenting participation in a pool of loans). In addition the budget totals and are called net financing dis
to issuing debt to the public, the Government issues bursements. (See FEDERAL CREDIT above.) Net fi
debt to Government accounts, primarily trust funds nancing disbursements are defined in the same way
that are required by law to invest in Treasury securi as the outlays of a budgetary account and may be either
ties. This debt is not a means of financing deficits, positive or negative. If positive, they must be paid in
because it does not raise any additional cash. In 1993, cash and increase the requirement for Treasury borrow
the Government borrowed $247 billion from the public ing in the same way as an increase in budget outlays
to finance the deficit in that year. At the end of 1993, and the budget deficit; if negative, they provide cash
the debt held by the public was $3,247 billion. (See to the Treasury that can be used to finance the pay
Chapter 13, "Federal Borrowing and Debt,” in this vol ment of the Government's obligations. The net financing
disbursements are therefore a means of financing the
ume for a fuller discussion of this topic.)
deficit other than borrowing from the public.
431
26. BUDGET SYSTEM AND CONCEPTS AND GLOSSARY
invested in Federal debt, changes in the balances are
Deposit Fund Account Balances
reflected as borrowing from the public or as a means
Certain accounts outside the budget, known as de
of financing the deficit other than borrowing from the
posit funds, are established to record amounts held public, depending on whether the deposit funds are
temporarily until ownership is determined (for example, classified as part of the public or the Government.
earnest money paid by bidders for mineral leases) or
Exchange of Cash
held by the Government as agent for others (for exam
ple, State and local income taxes withheld from Federal
The Government’s deposits with the International
employees’ salaries and payroll deductions for the pur Monetary Fund (IMF) are considered to be monetary
chase of savings bonds by employees of the Govern assets. Therefore, the movement of money between the
ment). Deposit fund balances may be held in the form IMF and the Treasury is not considered in itself a
of either invested or uninvested balances. Changes in receipt or an outlay, borrowing, or lending. However,
deposit fund balances, if they are not invested in Fed interest paid by the IMF on U.S. deposits is an offset
eral securities, affect Treasury’s cash balances, even ting collection. In a similar manner, the holdings of
though the transactions are not a part of the budget. foreign currency by the Exchange Stabilization Fund
To the extent that deposit fund balances are not in are considered to be cash assets. Changes in these hold
vested, changes in the balances are reflected as a ings are outlays only to the extent there is a realized
means of financing the deficit other than borrowing loss of dollars on the exchange and are offsetting collec
from the public. To the extent that the balances are tions only to the extent there is a realized dollar profit.
BASIS FOR BUDGET FIGURES
Data for the Past Year
The past year column (1993) generally presents the
actual transactions and balances as recorded in agency
accounts and as summarized in the central financial
reports prepared by the Treasury Department for the
most recently completed fiscal year. Occasionally the
budget reports corrections to data reported erroneously
to Treasury but not discovered in time to be reflected
in Treasury’s published data. The budget usually notes
the sources of such differences.
Data for the Current Year
The current year column (1994) includes estimates
of transactions and balances based on the amounts of
budgetary resources that were available when the budg
et was transmitted, including amounts appropriated for
the year. This column also reflects any supplemental
appropriations or rescissions that are proposed in the
budget.
Data for the Budget Year
The budget year column (1995) includes estimates
of transactions and balances based on the amounts of
budgetary resources that are estimated to be available,
including amounts proposed to be appropriated. The
budget generally includes the appropriations language
for the amounts proposed to be appropriated. Where
the estimates represent amounts that will be requested
under proposed legislation, the appropriation language
usually is not included; it is transmitted later, usually
after the legislation is enacted. In a few cases, proposed
language for appropriations to be requested under exist
ing legislation is transmitted later because the exact
requirements are not known when the budget is trans
mitted. In certain tables of the budget, the items for
later transmittal and the related outlays are identified
separately. Estimates of the total requirements for the
budget year include both the amounts requested with
the transmittal of the budget and the amounts planned
for later transmittal.
Data for the Outyears
The budget presents estimates for each of the four
years beyond the budget year (1996 through 1999) in
order to reflect the effect of budget decisions on longer
term objectives and plans.
Allowances
Lump-sum allowances are included in the budget to
cover certain forms of budgetary transactions that are
expected to increase or decrease budget authority or
outlays but are not reflected in the program details.
Budget authority and outlays included in the allowance
section are never appropriated as allowances, but rath
er indicate the estimated budget authority and outlays
that may be requested for specific programs.
PRINCIPAL BUDGET LAWS
The following are the basic laws pertaining to the
Federal budget process:
• Article 1, section 9, clause 7 of the Constitu
tion, which requires appropriations in law before
money may be spent from the Treasury.
•
Chapter 11 of Title 31, United States Code,
which prescribes procedures for submission of the
President’s budget and information to be con
tained in it.
432
•
•
ANALYTICAL PERSPECTIVES
Congressional Budget and Impoundment Con
trol Act of 1974 (Public Law 93-344), as amend
ed. This Act comprises the:
—Congressional Budget Act of 1974, as amended,
which prescribes the congressional budget proc
ess; and
—Impoundment Control Act of 1974, which con
trols certain aspects of budget execution.
Balanced Budget and Emergency Deficit Con
trol Act of 1985 (Public Law 99-177), as amend
ed, which prescribes rules and procedures (includ
ing “sequestration”) designed to eliminate excess
deficits. This Act is commonly known as the
Gramm-Rudman-Hollings Act.
•
•
•
Budget Enforcement Act of 1990 (Title XIII,
Public Law 101-508), which significantly amended
the laws pertaining to the budget process, includ
ing the Congressional Budget Act and the Bal
anced Budget and Emergency Deficit Control Act.
Federal Credit Reform Act of 1990, a part of
the Budget Enforcement Act of 1990, which
amended the Congressional Budget Act to pre
scribe the budget treatment for Federal credit pro
grams.
Antideficiency Act (codified in Chapters 13 and
15 of Title 31, United States Code), which pre
scribes rules and procedures for budget execution.
433
26. BUDGET SYSTEM AND CONCEPTS AND GLOSSARY
GLOSSARY OF BUDGET TERMS
Balances o f budget authority—These are amounts
of budget authority provided in previous years that
have not been outlayed. Obligated balances are
amounts that have been obligated but not yet outlayed.
Unobligated balances are amounts that have not been
obligated and that remain available for obligation under
law.
tions categories. A sequester is required if an appropria
tion for a category causes a breach in the cap.
Breach—A breach is the amount by which new budg
et authority or outlays within a category of discre
tionary appropriations for a fiscal year is above the
cap on new budget authority or outlays for that cat
egory for that year.
D eficit—A deficit is the amount by which outlays
exceed Governmental receipts.
Budget—The Budget of the United States Govern
ment sets forth the President’s comprehensive financial
plan for allocating resources and indicates the Presi
dent’s priorities for the Federal Government.
Budget authority (BA)—Budget authority is the
authority provided by Federal law to incur financial
obligations that will result in outlays. Specific forms
of budget authority include:
• provisions of law that make funds available for
obligation and expenditure (other than borrowing
authority), including the authority to obligate and
expend offsetting receipts and collections;
• borrowing authority, which is authority granted
to a Federal entity to borrow (e.g., through the
issuance of promissory notes or monetary credits)
and to obligate and expend the borrowed funds;
• contract authority, which is the making of funds
available for obligation but not for expenditure;
and
• offsetting receipts and collections as negative
budget authority.
Budgetary resources—Budgetary resources com
prise new budget authority, unobligated balances of
budget authority, direct spending authority, and obliga
tion limitations.
Budget totals—The budget includes totals for budg
et authority, outlays, and receipts. Some presentations
in the budget distinguish on-budget totals from offbudget totals. On-budget totals reflect the transactions
of all Federal Government entities except those ex
cluded from the budget totals by law. Off-budget totals
reflect the transactions of Government entities that are
excluded from the on-budget totals by law. Currently
excluded are the social security trust funds (Federal
Old-Age and Survivors Insurance and Federal Disabil
ity Insurance Trust Funds) and the Postal Service
Fund. The on- and off-budget totals are combined to
derive a total for Federal activity.
Cap—This is the term commonly used to refer to
legal limits on the budget authority and outlays for
each fiscal year for each of the discretionary appropria
Credit program account—A credit program ac
count receives an appropriation for the cost of a direct
loan or loan guarantee program, from which such cost
is disbursed to a financing account for the program.
D irect loan—A direct loan is a disbursement of
funds by the Government to a non-Federal borrower
under a contract that requires the repayment of such
funds with or without interest. The term includes the
purchase of, or participation in, a loan made by another
lender. The term does not include the acquisition of
a federally guaranteed loan in satisfaction of default
claims or the price support loans of the Commodity
Credit Corporation. (Cf. loan guarantee.)
D irect spending—Direct spending, which sometimes
is called mandatory spending, is a category of outlays
from budget authority provided in law other than ap
propriations acts, entitlement authority, and the budget
authority for the food stamp program. (Cf. discretionary
appropriations.)
D iscretionary appropriations—Discretionary ap
propriations is a category of budget authority that com
prises budgetary resources (except those provided to
fund direct-spending programs) provided in appropria
tions acts. (Cf. direct spending.)
Em ergency spending—Emergency spending is
spending that the President and the Congress have des
ignated as an emergency requirement. Such spending
is not subject to the limits on discretionary spending,
if it is discretionary spending, or the pay-as-you-go
rules, if it is direct spending.
Federal funds—Federal funds are the moneys col
lected and spent by the Government other than those
designated as trust funds. Federal funds include gen
eral, special, public enterprise, and intragovernmental
funds. (Cf. trust funds.)
Financing account—A financing account receives
the cost payments from a credit program account and
includes other cash flows to and from the Government
resulting from direct loan obligations or loan guarantee
commitments made on or after October 1, 1991. At
least one financing account is associated with each cred
it program account. For programs with direct and guar
anteed loans, there are separate financing accounts for
direct loans and guaranteed loans. The transactions of
the financing accounts are not included in the budget
totals. (Cf. liquidating account.)
434
ANALYTICAL PERSPECTIVES
Fiscal year—The fiscal year is the Government’s ac
counting period. It begins on October 1st and ends on
September 30th, and is designated by the calendar year
in which it ends. Before 1976, the fiscal year began
on July 1 and ended on June 30.
to spend offsetting collections is a form of budget au
thority. (Cf. governmental receipts.)
G eneral fund—The general fund consists of ac
counts for receipts not earmarked by law for a specific
purpose, the proceeds of general borrowing, and the
expenditure of these moneys.
Outlays—Outlays are the measure of Government
spending. They are payments to liquidate obligations
(other than the repayment of debt), net of refunds and
offsetting collections. Outlays generally are recorded on
a cash basis, but also include many cash-equivalent
transactions, the subsidy cost of direct loans and loan
guarantees, and interest accrued on public issues of
the public debt.
Governm ental receipts—These are collections that
result primarily from the Government’s exercise of its
sovereign power to tax or otherwise compel payment.
They are compared to outlays in calculating a surplus
or deficit. (Cf. offsetting collections.)
Liquidating account—A liquidating account in
cludes all cash flows to and from the Government re
sulting from direct loan obligations and loan guarantee
commitments prior to October 1, 1991. (Cf. financing
account. ) !
Loan guarantee—A loan guarantee is any guaran
tee, insurance, or other pledge with respect to the pay
ment of all or a part of the principal or interest on
any debt obligation of a non-Federal borrower to a nonFederal lender. The term does not include the insurance
of deposits, shares, or other withdrawable accounts in
financial institutions. (Cf. direct loan.)
M andatory spending—See direct spending
Maximum d eficit am ounts—These are amounts
specified in and subject to certain adjustments under
law. If the deficit for the year in question is estimated
to exceed the adjusted maximum deficit amount for
that year by more than a specified margin, a sequester
of the excess deficit is required.
Intragovem m ental
funds—Intragovemmental
funds are accounts for business-type or market-oriented
activities conducted primarily within and between Gov
ernment agencies and financed by offsetting collections
that are credited directly to the fund.
O bligations—Obligations are binding agreements
that will result in outlays, immediately or in the future.
Budgetary resources must be available before obliga
tions can be incurred legally.
O ff-budget—See budget totals.
O ffsetting collection s—Offsetting collections are
collections from the public that result from businesstype or market-oriented activities and collections from
other Government accounts. These collections are de
ducted from gross disbursements in calculating outlays,
rather than counted in Governmental receipt totals.
Some offsetting collections are credited directly to ap
propriation or fund accounts; others, called offsetting
receipts, are credited to receipt accounts. The authority
O ffsetting receipts—See offsetting collections.
On-budget—See budget totals.
Pay-as-you-go (PAYGO)—This term refers to re
quirements in law that result in a sequester if the
estimated combined result of legislation affecting direct
spending or receipts is an increase in the deficit for
a fiscal year.
Public enterprise funds—Public enterprise funds
are accounts for business or market-oriented activities
conducted primarily with the public and financed by
offsetting collections that are credited directly to the
fund.
R eceipts—See governmental receipts and offsetting
collections.
Sequester—A sequester is the cancellation of budg
etary resources provided by discretionary appropria
tions or direct spending legislation, following various
procedures prescribed in law. A sequester may occur
in response to a discretionary appropriation that causes
a breach, in response to increases in the deficit result
ing from the combined result of legislation affecting
direct spending or receipts (referred to as a “pay-asyou-go” sequester), or in response to a deficit estimated
to be in excess of the maximum deficit amounts.
Special funds—Special funds are Federal fund ac
counts for receipts earmarked for specific purposes and
the associated expenditure of those receipts. (Cf. trust
funds.)
Subsidy—This term means the same as cost when
it is used in connection with Federal credit programs.
Surplus—A surplus is the amount by which receipts
exceed outlays.
Supplem ental appropriation—A supplemental ap
propriation is one enacted subsequent to a regular an
nual appropriations act when the need for funds is
too urgent to be postponed until the next regular an
nual appropriations act.
Trust fluids—Trust funds are accounts, designated
by law as trust funds, for receipts earmarked for spe
cific purposes and the associated expenditure of those
receipts. (Cf. special funds.)
List of Charts and Tables
435
LIST OF CHARTS AND TABLES
LIST OF CHARTS
Page
2-1.
2-2.
2-3.
21-1.
A Balance Sheet Presentation for the Federal Government.....................................................................
Federal Budget Deficit ................................................................................................................................
National W ealth..........................................................................................................................................
Relationship of Budget Authority to Outlays for FY 1995 ........................................................................
10
14
17
268
LIST OF TABLES
Page
Economic and Accounting Analyses
Economic Assumptions:
1-1. Economic Assumptions....................................................................................................................
1-2. Comparison of Economic Assumptions in the 1994 and 1995 Budgets ........................................
1-3. Effects on the Budget of Change in Economic Assumptions Since Last Year .............................
1-4. Saving, Investment, and Trade Balance........................................................................................
1-5. Adjusted Structural D eficit.............................................................................................................
1-6. Sensitivity of the Budget to Economic Assumptions .....................................................................
4
5
6
6
6
8
Stewardship: Toward a Federal Balance Sheet:
2-1. Government Assets and Liabilities ................................................................................................
2-2. Change in 75-Year Actuarial Balance for OASDI and HI Trust Funds .......................................
2-3. National W ealth...............................................................................................................................
12
14
15
Generational Accounting:
3-1. Lifetime Net Tax Rates Before OBRA93 .......................................................................................
3-2. Percentage Difference in Lifetime Net Tax Rates of Future Generations and the 1992 Genera
tion for Alternative Assumptions................................................................................................
3-3. Lifetime Net Tax Rates Under Alternative Policies ......................................................................
3-4. Generational Accounts for Males: Present Value of Taxes and Transfers, With OBRA93 ..........
3-5. Generational Accounts for Females: Present Value of Taxes and Transfers, With OBRA93 ......
3-6. Generational Accounts Under Different Polices ............................................................................
3-7. U.S. and Norwegian Generational Accounts ..................................................................................
24
25
26
26
28
28
Federal Receipts and Collections
Federal Receipts:
4-1. Receipts by Source—Summary.......................................................................................................
4-2. Changes in Receipts ........................................................................................................................
4-3. Effect of Major Legislation Enacted in 1993 on Receipts..............................................................
4-4. Effect of Proposals on Receipts.......................................................................................................
4-5. Receipts by Source...........................................................................................................................
35
35
40
44
45
User Fees
5-1.
5-2.
5-3.
and Other Collections:
Offsetting Collections From the Public..........................................................................................
Proposed User Fees and Other Collections ....................................................................................
Offsetting Receipts by Type ............................................................................................................
437
23
47
48
51
438
THE BUDGET FOR FISCAL YEAR 1995
LIST OF TABLES—Continued
Page
Tax Expenditures:
6-1. Total Revenue Loss Estimates for Tax Expenditures in the Income T a x.....................................
6-2. Corporate and Individual Income Tax Revenue Loss Estimates for Tax Expenditures...............
6-3. Present Value of Selected Tax Expenditures for Activity in Calendar Year 1994 ........................
6-4. Outlay Equivalent Estimates for Tax Expenditures in the Income Tax ......................................
6-5. Revenue Loss Estimates for Tax Expenditures in the Federal Unified Transfer Tax .................
6-6. Major Tax Expenditures in the Income Tax, Ranked by Total 1995 Revenue Loss .....................
54
57
61
62
76
77
Federal Spending
Federal Spending by Function, Subfunction, and Major Program:
7-1. Budget Authority by Function and Program..................................................................................
7-2. Outlays by Function and Program..................................................................................................
81
94
Federal Investment Outlays and Capital Budgeting:
8-1. Composition of Federal Investment Outlays ..................................................................................
8-2. Major Federal Investment Outlays in Constant Prices..................................................................
8-3. Federal Investment Outlays: Defense and Nondefense Programs ................................................
8— Federal Investment Outlays: Grant and Direct Federal Programs ..............................................
4.
8-5. Alternative Definitions of Investment Outlays, 1995 ....................................................................
8-6. Capital, Operating, and Unified (Cash) Budgets: NPR Definition of Capital, 1995 .....................
8-7. Unified (Cash) Budget With National Investment Component.....................................................
8-8. Capital, Operating, and Unified (Cash) Budgets: National Capital, 1995 ...................................
8-9. Net Stock of Federally Financed Physical Capital ........................................................................
8 -l0 . Composition of Gross and Net Federal and Federally Financed Non-Defense Public Physical
Investment....................................................................................................................................
8-11. Net Stock of Federally Financed Research and Development .......................................................
8-12. Net Stock of Federally Financed Education Capital .....................................................................
8-13. Baseline Outlay Projections for Federal Physical Capital Spending ............................................
8-14. Baseline Outlay Projections for Federal Physical Capital Spending in Constant Prices .............
8-15. Projections of Federal Outlays for Physical Capital: Current Services and Presidential Policy ..
109
110
I ll
112
114
115
118
118
120
121
122
123
125
126
126
Research and Development Expenditures:
9-1. Funding for Research and Development ........................................................................................
131
Underwriting Federal Credit and Insurance:
10-1. Face Value and Estimated Cost of Federal Credit and Insurance Programs ..............................
10-2. Reestimates of Credit Subsidies on Loans Disbursed in 1992 and 1993 ......................................
10-3. Estimated 1995 Subsidy Rates, Budget Authority, and Loan Levels for Direct Loans................
10— Estimated 1995 Subsidy Rates, Budget Authority, and Loan Levels for Loan Guarantees ........
4.
10-5. Summary of Federal Direct Loans and Loan Guarantees .............................................................
10-6. Subsidy Budget Authority for Direct Loans and Guaranteed Loans by Function........................
10-7. New Direct Loan Obligations and Guaranteed Loan Commitments by Function ........................
10-8. Direct Loan Write-Offs and Guaranteed Loan Terminations for Defaults...................................
10-9. Appropriations Acts Limitations on Credit Loan Levels................................................................
10-10. Direct Loan Transactions of the Federal Government..................................................................
10-11. Guaranteed Loan Transactions of the Federal Government .........................................................
10-12. Lending and Borrowing by Government-Sponsored Enterprises (GSEs) .....................................
134
145
148
149
149
150
150
151
152
154
161
165
Aid to State and Local Governments:
11-1. Federal Grant Outlays by Agency...................................................................................................
11-2. Trends in Federal Grants to State and Local Governments..........................................................
11-3. Federal Grants to State and Local Governments—Budget Authority and Outlays .....................
167
169
171
439
LIST OF CHARTS AND TABLES
LIST OF TABLES—Continued
Page
Federal Employment:
12-1. Federal Employment in the Executive Branch ..............................................................................
12-2. Total Federal Employment (Positions) ..........................................................................................
12-3. Total Federal Employment (FTEs) ................................................................................................
12-4. Personnel Compensation and Benefits ..........................................................................................
12-5. Government Employment and Population, 1962-1995 .................................................................
178
179
180
181
182
Federal Borrowing and Debt
Federal Borrowing and Debt:
13-1. Trends in Federal Debt Held by the Public ...................................................................................
13-2. Federal Government Financing and Debt ......................................................................................
13-3. Agency Debt ....................................................................................................................................
13-4. Debt Held by Government Accounts ..............................................................................................
13-5. Federal Funds Financing and Change in Debt Subject to Statutory Limit .................................
13-6. Foreign Holdings of Federal Debt ..................................................................................................
13-7. Federal Participation in the Credit Market ...................................................................................
185
187
189
190
192
193
194
Budget Enforcement Act Preview Report
Preview Report:
14-1. Summary of Changes to Discretionary Spending Limits, 1991-1995 ...........................................
14-2. Discretionary Spending Limits, 1994-1998 ....................................................................................
14-3. Budget Proposals ............................................................................................................................
14-4. Comparison of OMB and CBO Discretionary Spending Lim its....................................................
14-5. Pay-As-You-Go Legislation Enacted as of December 31, 1993 .....................................................
14-6. Maximum Deficit Amount ..............................................................................................................
14-7. Differences Between OMB and CBO Maximum Deficit Amounts.................................................
197
199
199
200
200
201
202
Review of Direct Spending and Receipts:
15-1. Summary of Changes to Mandatory Targets and Current Law Outlays......................................
15-2. Beneficiaries Estimates for Major Benefit Payment Programs .....................................................
15-3. Outlays for Mandatory and Related Programs Under Current Law ............................................
15-4. Comparison of Mid-Session to 1995 Budget Baseline Receipts ....................................................
15-5. Mandatory Targets Assuming Enactment of Presidential Proposals............................................
203
204
205
207
208
Deficit Reduction Fund:
16-1. Revenue Increases and Spending Reductions Credited to the Deficit Reduction Fund ...............
16-2. Status of the Deficit Reduction Fund ............................................................................................
209
209
Current Services Estimates
Current Services Estimates:
17-1. Current Services Estimates, 1993-1999 ........................................................................................
17-2. Summary of Economic Assumptions ..............................................................................................
17-3. Outlay Impact of Regulations, Expiring Authorizations and Other Assumptions in the Base
line ................................................................................................................................................
17— Baseline Receipts by Source ...........................................................................................................
4.
17-5. Change in Baseline Outlays Estimates by Category.....................................................................
17-6. Current Services Outlays by Function ..........................................................................................
17-7. Current Services Outlays by Agency .............................................................................................
17-8. Current Services Budget Authority by Function ...........................................................................
17-9. Current Services Budget Authority by Agency ..............................................................................
17-10. Current Services Budget Authority by Function and Program .....................................................
17-11. Current Services Outlays by Function and Program ....................................................................
213
214
215
218
219
220
221
222
223
224
233
440
THE BUDGET FOR FISCAL YEAR 1995
LIST OF TABLES—Continued
Page
Other Technical Presentations
Trust Funds and Federal Funds:
18-1. Receipts, Outlays, and Surplus or Deficit by Fund Group.............................................................
18-2. Surplus or Deficit by Fund Group...................................................................................................
18-3. Income, Outgo, and Balances of Trust Funds Group .....................................................................
18-4. Income, Outgo, and Balances of Major Trust Funds ......................................................................
246
247
248
249
National Income and Product Accounts:
19-1. Federal Transactions in the National Income and Product Accounts, 1984-1995 .......................
19-2. Relationship of the Budget to the Federal Sector, NIPA ...............................................................
19-3. Federal Receipts and Expenditures in the NIPAs, Quarterly, 1993-1995 ...................................
258
259
260
Comparison of Actual to Estimated Totals for 1993:
20-1. Comparison of Actual 1993 Receipts with the February 1992 Baseline Estimates ......................
20-2. Comparison of Actual 1993 Outlays with the February 1992 Baseline Estimates.......................
20-3. Comparison of Actual 1993 Deficit with the February 1992 Baseline Estimates.........................
20— Comparison of Actual and Estimated Outlays for Mandatory and Related Programs Under
4.
Current Law for 1993 ..................................................................................................................
20-5. Reconciliation of Final Amounts for 1993 ......................................................................................
261
262
263
264
265
Off-Budget Federal Entities:
22-1. Comparison of Total, On-Budget, and Off-Budget Transactions ...................................................
269
Crosscutting Categories:
23-1. Crosscutting Categories ..................................................................................................................
271
High Risk Areas
Progress Report: Correcting High Risk Areas:
24-1. Progress Report: Correcting High Risk Areas................................................................................
275
Federal Programs by Agency and Account
Federal Programs by Agency and Account:
25-1. Federal Programs by Agency and Account.....................................................................................
301
Budget System and Concepts and Glossary
Budget System and Concepts and Glossary:
Discretionary Spending Lim its........................................................................................................
Totals for the Budget and the Federal Government .....................................................................
423
424
@FedFRASER