Full text of Budget of the United States Government - Appendix : Fiscal Year 1998 : Department of Agriculture

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DEPARTMENT OF AGRICULTURE
OFFICE

OFFICE OF THE SECRETARY
Federal Funds
OF THE

SECRETARY

(INCLUDING TRANSFERS OF FUNDS)

OFFICE

For necessary expenses of the Office of the Secretary of Agriculture,
and not to exceed $75,000 for employment under 5 U.S.C. 3109,
ø$2,836,000¿ $2,872,000: Provided, That not to exceed $11,000 of
this amount, along with any unobligated balances of representation
funds in the Foreign Agricultural Service, shall be available for official reception and representation expenses, not otherwise provided
for, as determined by the Secretary: Provided, That none of the funds
appropriated or otherwise made available by this Act may be used
to pay the salaries and expenses of personnel of the Department
of Agriculture to carry out section 793(c)(1)(C) of Public Law 104–
127: Provided further, That none of the funds made available by
this Act may be used to enforce section 793(d) of Public Law 104–
127.
OFFICE

OF THE

ASSISTANT SECRETARY

FOR

ADMINISTRATION

For necessary salaries and expenses of the Office of the Assistant
Secretary for Administration to carry out the programs funded in
this Act, ø$613,000¿ $621,000.
OFFICE

OF THE

ASSISTANT SECRETARY
RELATIONS

FOR

For necessary salaries and expenses of the Office of the Assistant
Secretary for Congressional Relations to carry out the programs funded in this Act, including programs involving intergovernmental affairs
and liaison within the executive branch, ø$3,668,000¿ $3,714,000:
Provided, That no other funds appropriated to the Department in
this Act shall be available to the Department for support of activities
of congressional relations: Provided further, That not less than
ø$2,241,000¿ $2,268,000 shall be transferred to agencies funded in
this Act to maintain personnel at the agency level.
OF THE

UNDER SECRETARY FOR RESEARCH, EDUCATION
ECONOMICS

AND

For necessary salaries and expenses of the Office of the Under
Secretary for Research, Education and Economics to administer the
laws enacted by the Congress for the Economic Research Service,
the National Agricultural Statistics Service, the Agricultural Research Service, and the Cooperative State Research, Education, and
Extension Service, ø$540,000¿ $547,000.
OFFICE

OF THE

ASSISTANT SECRETARY FOR MARKETING
REGULATORY PROGRAMS

OF THE

UNDER SECRETARY

FOR

FOOD SAFETY

For necessary salaries and expenses of the Office of the Under
Secretary for Food Safety to administer the laws enacted by the
Congress for the Food Safety and Inspection Service, ø$446,000¿
$583,000.
OFFICE

OF THE

UNDER SECRETARY FOR FARM
AGRICULTURAL SERVICES

AND

OF THE

UNDER SECRETARY

FOR

RURAL DEVELOPMENT

OFFICE

OF THE

UNDER SECRETARY FOR FOOD, NUTRITION
CONSUMER SERVICES

AND

For necessary salaries and expenses of the Office of the Under
Secretary for Food, Nutrition and Consumer Services to administer
the laws enacted by the Congress for the Food and Consumer Service,
ø$454,000¿ $560,000. (7 U.S.C. 2201–2202; Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 12–0115–0–1–352

1996 actual

00.01
00.02
00.03

Obligations by program activity:
Office of the Secretary ...................................................
Under/Assistant Secretaries ...........................................
Service Center Implementation ......................................

3
5
3

10.00

Total obligations ........................................................

1997 est.

1998 est.

3
3
6
6
4 ...................
13

21.40

23.90
23.95
24.40

16
–11

4 ...................
9
9
13
–13

9
–9

4 ................... ...................

40.00
41.00

New budget authority (gross), detail:
Appropriation ..................................................................
Transferred to other accounts .......................................

18
–2

11
–2

43.00

Appropriation (total) ..................................................

70.00

Total new budget authority (gross) ..........................

4
13
–12

5
9
–11

8
4

8
3

AND

For necessary salaries and expenses of the Office of the Assistant
Secretary for Marketing and Regulatory Programs to administer programs under the laws enacted by the Congress for the Animal and
Plant Health Inspection Service, Agricultural Marketing Service, and
the Grain Inspection, Packers and Stockyards Administration,
ø$618,000¿ $625,000.
OFFICE

AND

For necessary salaries and expenses of the Office of the Under
Secretary for Rural Development to administer programs under the
laws enacted by the Congress for the Rural Housing Service, Rural
Business-Cooperative Service, and the Rural Utilities Service of the
Department of Agriculture, ø$588,000¿ $596,000.

CONGRESSIONAL

(INCLUDING TRANSFERS OF FUNDS)

OFFICE

UNDER SECRETARY FOR NATURAL RESOURCES
ENVIRONMENT

For necessary salaries and expenses of the Office of the Under
Secretary for Natural Resources and Environment to administer the
laws enacted by the Congress for the Forest Service and the Natural
Resources Conservation Service, ø$693,000¿ $702,000.

General and special funds:
OFFICE

OF THE

FOREIGN

For necessary salaries and expenses of the Office of the Under
Secretary for Farm and Foreign Agricultural Services to administer
the laws enacted by Congress for the Farm Service Agency, Foreign
Agricultural Service, the Office of Risk Management, and the Commodity Credit Corporation, ø$572,000¿ $580,000.

72.40

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
7
Outlays from current balances ...................................... ...................

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

16
7

9
12

9
11

The Office of the Secretary covers the overall planning,
coordination, and administration of the Department’s programs. This includes the Secretary, Deputy Secretary, Under
Secretaries, Assistant Secretaries, and their immediate staffs,
127

OFFICE OF THE SECRETARY—Continued
Federal Funds—Continued

128

THE BUDGET FOR FISCAL YEAR 1998
Outlays .................................................................................... ....................

General and special funds—Continued
OFFICE

UNDER SECRETARY FOR FOOD, NUTRITION
CONSUMER SERVICES—Continued

OF THE

AND

who provide top policy guidance for the Department; maintain
relationships with agricultural organizations and others in
the development of farm programs; and provide liaison with
the Executive Office of the President and Members of Congress on all matters pertaining to agricultural policy.

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 12–0012–0–1–999

1996 actual

1997 est.

1998 est.

1996 actual

11.1
12.1
25.2
99.5

Personnel compensation: Full-time permanent .............
Civilian personnel benefits ............................................
Other services ................................................................
Below reporting threshold ..............................................

99.9

Total obligations ........................................................

1997 est.

5
1
3
2

1998 est.

6
6
2
2
4 ...................
1
1
13

Personnel Summary

Direct loan levels supportable by subsidy budget authority:
1150 Section 502 housing loans ............................................
1150 Direct Farm Ownership Loans .......................................
1150 Direct water and waste disposal loans ........................
1150 Rural housing for domestic farm labor loans ..............

...................
...................
...................
...................

141
10
8
2

1159

Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Section 502 housing loans ............................................
1320 Direct Farm Ownership Loans .......................................
1320 Direct water and waste disposal loans ........................
1320 Rural housing for domestic farm labor loans ..............

...................

161 ...................

...................
...................
...................
...................

14.18
21.03
9.02
47.77

0.00
0.00
0.00
0.00

1329

Object Classification (in millions of dollars)
Identification code 12–0115–0–1–352

...................
...................
...................
...................

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

FUND

FOR

1997 est.

1998 est.

RURAL AMERICA

Program and Financing (in millions of dollars)
1996 actual

Identification code 12–0012–0–1–999

1997 est.

1998 est.

Obligations by program activity:
Rural development activities ......................................... ...................
Research, extension and education grants ................... ...................
Other .............................................................................. ...................

48 ...................
43 ...................
9 ...................

10.00

Total obligations ........................................................ ...................

100 ...................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ...................
New obligations ............................................................. ...................

100 ...................
–100 ...................

60.00

New budget authority (gross), detail:
Appropriation .................................................................. ...................

100 ...................

72.40

86.97
86.98

................... ...................
75
...................
100 ...................
...................
–25
–40
...................

Outlays (gross), detail:
Outlays from new permanent authority ......................... ...................
25 ...................
Outlays from permanent balances ................................ ................... ...................
40

87.00

Total outlays (gross) ................................................. ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ...................
Outlays ........................................................................... ...................

14.72

0.00

...................
...................
...................
...................

20
2
1
1

...................
...................
...................
...................

...................

24 ...................

Total subsidy budget authority .................................
Direct loan subsidy outlays:
1340 Section 502 housing loans ............................................
1340 Direct Farm Ownership Loans .......................................
1340 Direct water and waste disposal loans ........................
1340 Rural housing for domestic farm labor loans ..............
1349

00.01
00.02
00.03

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

...................

1339

1996 actual

Identification code 12–0115–0–1–352

Weighted average subsidy rate .................................
Direct loan subsidy budget authority:
1330 Section 502 housing loans ............................................
1330 Direct Farm Ownership Loans .......................................
1330 Direct water and waste disposal loans ........................
1330 Rural housing for domestic farm labor loans ..............

100 ...................
25
40

Summary of Budget Authority and Outlays

...................
16
4
...................
2 ...................
................... ................... ...................
................... ...................
1

Total subsidy outlays ................................................ ...................

The Federal Agriculture Improvement and Reform Act of
1996 (1996 Act) established the Fund for Rural America to
provide support to rural communities across the United
States. The 1996 Act provides that $100 million be made
available on January 1, 1997 for use by the Fund. The Secretary of Agriculture is authorized by the 1996 Act to allocate
the available funding between rural development and research activities. The Act specifies that at least one-third
of the funds be allocated to rural development activities and
one-third to research activities. No more than two-thirds of
the available funds may be made available for rural development activities.
In 1997, the Secretary plans to use $48 million of the available funding to support rural development activities including
Water 2000, Section 502 Single Family Housing Loans, the
Distance Learning/Medical Link programs and other rural development loans and grants. Another $43 million will be used
to provide research, extension, and education grants designed
to: 1) increase international competitiveness, profitability and
efficiency; 2) enhance the economic standing of rural communities; and 3) improve environmental stewardship. Finally,
$9 million will be used to fund a research project examining
the special telecommunications needs of rural America, and
to support additional grants for Outreach for Socially Disadvantaged Producers and additional direct ownership loans
for beginning farmers.

(in millions of dollars)

1996 actual

....................
....................

1997 est.

Identification code 12–0012–0–1–999

1996 actual

1997 est.

1998 est.

100

100
25

100

25.1
41.0

Advisory and assistance services .................................. ...................
Grants, subsidies, and contributions ............................ ...................

1 ...................
99 ...................

99.9

.................... ....................
.................... ....................

Total:
Budget Authority ..................................................................... ....................

Object Classification (in millions of dollars)

1998 est.

100 ....................
25
40

Total obligations ........................................................ ...................

100 ...................

EXECUTIVE OPERATIONS
Federal Funds

DEPARTMENT OF AGRICULTURE
FUND

FOR

73.20

Total outlays (gross) ......................................................

–1

86.97

Outlays (gross), detail:
Outlays from new permanent authority .........................

89.00
90.00

RURAL AMERICA

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

1
1

(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
1996 actual

Identification code 12–0012–4–1–999

129

1997 est.

1998 est.

Obligations by program activity:
00.01 Rural development activities ......................................... ................... ...................
00.02 Research, extension and education grants ................... ................... ...................
00.03 Undistributed ................................................................. ................... ...................

33
33
34

10.00

Total obligations (object class 41.0) ........................ ................... ...................

100

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................
New obligations ............................................................. ................... ...................

100
–100

60.00

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................

The Secretary is authorized to accept and administer gifts
and bequests of real and personal property to facilitate the
work of the Department. Property and the proceeds thereof
are used in accordance with the terms of the gift or bequest
(7 U.S.C. 2269).

100

Change in unpaid obligations:
73.10 New obligations ............................................................. ................... ...................
73.20 Total outlays (gross) ...................................................... ................... ...................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation ............................................................. ................... ...................

EXECUTIVE OPERATIONS
Federal Funds
General and special funds:
100
–25

EXECUTIVE OPERATIONS
CHIEF ECONOMIST

86.97

Outlays (gross), detail:
Outlays from new permanent authority ......................... ................... ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................
Outlays ........................................................................... ................... ...................

100
25

For necessary expenses of the Chief Economist, including economic
analysis, risk assessment, cost-benefit analysis, and the functions
of the World Agricultural Outlook Board, as authorized by the Agricultural Marketing Act of 1946 (7 U.S.C. 1622g), and including employment pursuant to the second sentence of section 706(a) of the
Organic Act of 1944 (7 U.S.C. 2225), of which not to exceed $5,000
is for employment under 5 U.S.C. 3109, ø$4,231,000¿ $5,308,000.
COMMISSION

21ST CENTURY PRODUCTION AGRICULTURE

The Federal Agriculture Improvement and Reform Act of
1996 (1996 Act) authorized funding for the Fund for Rural
America in 1997, 1999, and 2000. The Budget proposes to
shift the $100 million available in 2000 to 1998 in order
to facilitate more consistent and efficient program delivery.

For establishment of the Commission on 21st Century Production
Agriculture, as authorized by section 181 of the Federal Agriculture
Improvement and Reform Act, (7 U.S.C. 7311–7318), of which not
to exceed $55,000 is for employment under 5 U.S.C. 3109, $1,100,000.

Trust Funds

For necessary expenses of the National Appeals Division, including
employment pursuant to the second sentence of section 706(a) of
the Organic Act of 1944 (7 U.S.C. 2225), of which not to exceed
$25,000 is for employment under 5 U.S.C. 3109, ø$11,718,000¿
$13,359,000.

GIFTS

AND

BEQUESTS

Unavailable Collections (in millions of dollars)
Identification code 12–8203–0–7–352

1996 actual

OFFICE
1997 est.

1998 est.

Balance, start of year:
Balance, start of year .................................................... ................... ...................
Receipts:
02.01 Gifts and bequests ........................................................
1
2
01.99

Total: Balances and collections ....................................
1
Appropriation:
05.01 Gifts and bequests ........................................................
–1
07.99 Total balance, end of year ............................................ ...................

04.00

1
2

2
–1
1

3
–1
2

Program and Financing (in millions of dollars)
Identification code 12–8203–0–7–352

1996 actual

NATIONAL APPEALS DIVISION

1997 est.

1998 est.

1
1

OFFICE

1
1

2
–1

21.40

23.90
23.95
24.40

60.27

New budget authority (gross), detail:
Appropriation (trust fund, indefinite) ............................

73.10

Change in unpaid obligations:
New obligations .............................................................

BUDGET

AND

PROGRAM ANALYSIS

SMALL

AND

DISADVANTAGED BUSINESS UTILIZATION

For necessary expenses of the Office of Small and Disadvantaged
Business Utilization, including employment pursuant to the second
sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225),
of which not to exceed $5,000 is for employment under 5 U.S.C.
3109, $795,000. (7 U.S.C. 2201, 2202; 42 U.S.C. 2000d; Agriculture,
Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 1997.)
OFFICE

Obligations by program activity:
10.00 Total obligations (object class 32.0) ............................

For necessary expenses of the Office of Budget and Program Analysis, including employment pursuant to the second sentence of section
706(a) of the Organic Act of 1944 (7 U.S.C. 2225), of which not
to exceed $5,000 is for employment under 5 U.S.C. 3109, ø$5,986,000¿
$5,918,000.

OF THE

CHIEF INFORMATION OFFICER

For necessary expenses of the Office of the Chief Information Officer,
including employment pursuant to the second sentence of section
706(a) of the Organic Act of 1944 (7 U.S.C. 2225), of which not
to exceed $10,000 is for employment under 5 U.S.C. 3109, $275,000.
Program and Financing (in millions of dollars)
Identification code 12–0705–0–1–352

00.01
00.02
00.03
00.04
00.05
10.00

1996 actual

1997 est.

Obligations by program activity:
Chief Economist .............................................................
4
4
Commission on 21st Century Production Agriculture ................... ...................
National Appeals Divison ...............................................
12
12
Budget and Program Analysis .......................................
6
6
Small and Disadvantaged Business Utilization ............ ................... ...................
Total obligations ........................................................

1998 est.

5
1
13
6
1
27

130

EXECUTIVE OPERATIONS—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
OFFICE

OF THE

CHIEF INFORMATION OFFICER—Continued

Program and Financing (in millions of dollars)—Continued
1996 actual

Identification code 12–0705–0–1–352

1997 est.

1998 est.

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

23
–22

22
–22

27
–27

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

for programs and budget implications; and analysis of program issues and alternatives and preparation of summaries
of pertinent data to aid Departmental policy officials and
agency program managers in the decisionmaking process.
The Office of Small and Disadvantaged Business Utilization
oversees direction and implementation of Sections 8 and 15
of the Small Business Act and oversees procurement to assure
maximum participation of small and small disadvantaged
businesses.

WORKLOAD INDICATORS 1

Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1
22
–19

3
22
–22

3
27
–27

Outlays (gross), detail:
86.90 Outlays from new current authority ..............................
86.93 Outlays from current balances ......................................

18
1

19
3

24
3

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

22
19

22
22

27
27

Executive Operations provides support for USDA policy officials and selected Departmentwide services.
The Office of the Chief Economist advises the Secretary
of Agriculture on the economic implications of Department
policies and programs and proposed legislation. The Office
serves as the single focal point for the Nation’s economic
intelligence and analysis, risk assessment, and cost-benefit
analysis related to domestic and international food and agriculture, and is responsible for coordination and clearance review of all commodity and aggregate agricultural and foodrelated data used to develop outlook and situation material
within the Department.

1996 actual

Subcontracting plans reviewed ...................................................
Small Businesses counseled .......................................................
Small Business Procurement Conferences conducted or sponsored by USDA OSDBU ............................................................
Conferences participated in by OSDBU employees .....................
Procurement Assistance Reviews conducted ..............................
Training conferences conducted .................................................
1 1996

1996 actual

12
52
NA
40

1997 est.

12
52
35,000
40

12
52
50,000
40

PERFORMANCE INDICATORS
1996 actual

0
NA
1
5.76
76.84
1,880

1997 est.

3
4
0
6.15
75.0
1,800

45
6,200

—
—
—
—

2
15
4
2

and 1997 data are shown in the account ‘‘Departmental Administration.’’

Object Classification (in millions of dollars)
1996 actual

Identification code 12–0705–0–1–352

11.1
12.1
21.0
23.3
25.2
31.0
99.9

1997 est.

1998 est.

Personnel compensation: Full-time permanent .............
16
17
Civilian personnel benefits ............................................
3
3
Travel and transportation of persons ............................ ................... ...................
Communications, utilities, and miscellaneous charges
1
1
Other services ................................................................
1
1
Equipment ......................................................................
1 ...................
Total obligations ........................................................

17
3
1
1
2
2
27

Personnel Summary
Identification code 12–0705–0–1–352

1001

1996 actual

Total compensable workyears: Full-time equivalent
employment ...............................................................

241

1997 est.

1998 est.

257

277

1998 est.

The Federal Agriculture Improvement and Reform (FAIR)
Act of 1996 authorized the Commission on the 21st Century
Production Agriculture to (1) conduct comprehensive review
and assessment of the success of production flexibility contracts in supporting the viability of U.S. farming, and (2)
a review of the future of production agriculture and the appropriate role of the Federal government.
The National Appeals Division conducts administrative
hearings and reviews of adverse program decisions made by
the Farm Service Agency, the Natural Resources Conservation
Service, and the Rural Housing Service.

Regional Training Sessions .........................................................
Training Briefs Issued .................................................................
National Training Conferences Held ...........................................
Appeals assigned per hearing officer per month .......................
Average time to issue appeal determinations (days) ................
Travel dollars per hearing officer ...............................................

1998 est.

—
—

The Office of the Chief Information Officer (OCIO) was
established pursuant to the Information Technology Management Reform Act of 1996 to provide policy guidance, leadership, coordination and direction to USDA’s information management and information technology investment activities in
support of program delivery.

WORKLOAD INDICATORS
World Agricultural Supply and Demand Estimates Reports issued ........................................................................................
Weekly Weather and Crop Bulletin issued ..................................
OCE Home Page Electronic Hits ..................................................
Significant and economically significant regulations reviewed

1997 est.

—
—

1998 est.

0
6
1
6.60
75.0
1,700

The Office of Budget and Program Analysis provides overall
direction and administration of the Department’s budgetary
functions including: development, presentation, and execution
of the budget; review of program and legislative proposals

CHIEF FINANCIAL OFFICER
For necessary expenses of the Office of the Chief Financial Officer,
including employment pursuant to the second sentence of section
706(a) of the Organic Act of 1944 (7 U.S.C. 2225), of which not
to exceed $10,000 is for employment under 5 U.S.C. 3109,
ø$4,283,000¿ $4,718,000: Provided, That the Chief Financial Officer
shall actively market cross-servicing activities of the National Finance
Center. (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 12–0014–0–1–352

1996 actual

1997 est.

1998 est.

00.01
01.01

Obligations by program activity:
Direct program: Chief financial officer .........................
Reimbursable program ..................................................

4
1

5
1

10.00

Total obligations ........................................................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

5
–5

6
–6

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
Permanent:
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

EXECUTIVE OPERATIONS—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
70.00

Total new budget authority (gross) ..........................

73.10
73.20

Change in unpaid obligations:
New obligations .............................................................
Total outlays (gross) ......................................................

5
–5

6
–6

86.90
86.97

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from new permanent authority .........................

4
1

5
1

87.00

Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–1

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

4
4

5
5

89.00
90.00

The Office of the Chief Financial Officer (OCFO) supports
the Chief Financial Officer in carrying out the dual roles
of chief financial management policy officer and chief financial
management advisor to the Secretary and mission area heads.
OCFO provides leadership for all financial management, accounting, travel, Federal assistance, and performance measurement activities within the Department. It is responsible
for the management and operation of the National Finance
Center and the Departmental Working Capital Fund, and
provides budget, accounting, and fiscal services to the Office
of the Secretary, Departmental Staff Offices, Office of Communications, Office of the Chief Information Officer and Executive Operations.

10.00

Total obligations ........................................................

215

228

25
197

12
228

21.90

23.90
23.95
24.90

1996 actual

1997 est.

New budget authority (gross), detail:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.10
Change in orders on hand from Federal sources
68.90

11.1
12.1

Direct obligations:
Personnel compensation: Full-time permanent ........
Civilian personnel benefits .......................................

3
1

4
1

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

4
1

5
1

99.9

Total obligations ........................................................

240
–228

163
228
228
34 ................... ...................
197

228

Total new budget authority (gross) ..........................

197

228

Change in unpaid obligations:
Unpaid obligations, start of year:
72.90
Obligated balance: Fund balance .............................
72.95
Orders on hand from Federal sources ......................

25
23

–8
57

70.00

74.90
74.95

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Adjustments in unexpired accounts ..............................
Unpaid obligations, end of year:
Obligated balance: Fund balance .............................
Orders on hand from Federal sources ......................

74.99

Total unpaid obligations, end of year ..................

86.97
86.98

1998 est.

5 ................... ...................
227
–215

Spending authority from offsetting collections
(total) ................................................................

72.99
73.10
73.20
73.45

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

87.00

Total outlays (gross) .................................................

Object Classification (in millions of dollars)
Identification code 12–0014–0–1–352

131

48
49
49
215
228
228
–211
–228
–228
–5 ................... ...................
–8
57

–8
57

163
228
228
48 ................... ...................

6
89.00
90.00

Personnel Summary
Identification code 12–0014–0–1–352

1996 actual

Direct:
Total compensable workyears: Full-time equivalent
employment ...............................................................
Reimbursable:
2001 Total compensable workyears: Full-time equivalent
employment ...............................................................

1997 est.

Intragovernmental funds:
WORKING CAPITAL FUND
Program and Financing (in millions of dollars)
1996 actual

1997 est.

228

–163
–228
–228
–34 ................... ...................

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
47 ................... ...................

This fund finances by advances or reimbursements certain
central services in the Department of Agriculture, including
duplicating and other visual information services, art and
graphics, video services, supply, centralized accounting systems, centralized automated data processing systems for payroll, personnel, and related services, voucher payments services, and ADP systems. The capital consists of $400 thousand
appropriated (7 U.S.C. 2235), and subsequent appropriations
of $31,838 thousand as of September 30, 1996. Earnings are
kept at a low level through adjustments in rates charged
for services to maintain as nearly as possible the nonprofit
nature of the fund.
Balance Sheet (in millions of dollars)

1998 est.

Identification code 12–4609–0–4–352

Obligations by program activity:
Operating expenses:
00.01
Supply and other central services ............................
00.02
Video and other visual information services ............
00.03
National Finance Center ............................................
00.04
ADP systems ..............................................................

19
5
133
40

21
5
139
46

21
5
140
44

00.91

197

211

210

01.01
01.03
01.04

Total operating expenses ......................................
Purchase of equipment:
Supply and other central services ............................
National Finance Center ............................................
ADP systems ..............................................................

1 ...................
14
10
4
7

1
9
8

01.91

Total purchase of equipment ...............................

228

1998 est.

1001

Identification code 12–4609–0–4–352

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources
88.95 Change in orders on hand from Federal sources .........

211

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
1803 Other Federal assets: Property, plant
and equipment, net ............................
1999

Total assets ........................................
LIABILITIES:
2101 Federal liabilities: Accounts payable ......
Non-Federal liabilities:
2201
Accounts payable ................................

1995 actual

1996 actual

1997 est.

1998 est.

116

109

132

EXECUTIVE OPERATIONS—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

Intragovernmental funds—Continued
22.00
23.95

WORKING CAPITAL FUND—Continued
Balance Sheet (in millions of dollars)—Continued
1995 actual

1996 actual

Other ...................................................

Total liabilities ....................................
NET POSITION:
3300 Cumulative results of operations ............

3999

Total net position ................................

4999

Total liabilities and net position ............

116

109

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
Permanent:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) ................................
68.10
Change in orders on hand from Federal sources
68.15
Adjustment to orders on hand from Federal
sources .............................................................

109

2207
2999

1998 est.

41
–41

45
–45

43
–43

Identification code 12–4609–0–4–352

1997 est.

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

68.90
70.00

Object Classification (in millions of dollars)
1996 actual

Identification code 12–4609–0–4–352

1997 est.

1998 est.

11.1
11.3
11.5

Personnel compensation:
Full-time permanent ..................................................
Other than full-time permanent ...............................
Other personnel compensation ..................................

77
3
1

74
2
2

77
2
2

11.9
12.1
21.0
22.0
23.1
23.2
23.3
24.0
25.2
26.0
31.0
99.0

Total personnel compensation ..............................
Civilian personnel benefits ............................................
Travel and transportation of persons ............................
Transportation of things ................................................
Rental payments to GSA ................................................
Rental payments to others ............................................
Communications, utilities, and miscellaneous charges
Printing and reproduction ..............................................
Other services ................................................................
Supplies and materials .................................................
Equipment ......................................................................
Subtotal, reimbursable obligations ...............................

81
14
2
1
3
2
19
1
63
7
22
215

78
15
2
1
4
2
29
1
68
7
21
228

81
15
2
1
4
2
29
1
64
7
22
228

99.9

Total obligations ........................................................

215

228

Personnel Summary
1996 actual

Identification code 12–4609–0–4–352

2001
2005

Total compensable workyears:
Full-time equivalent employment ..................................
Full-time equivalent of overtime and holiday hours

2,008
68

1997 est.

2,013
60

1998 est.

1,998
60

74.40
74.95

Federal Funds
General and special funds:
DEPARTMENTAL ADMINISTRATION
(INCLUDING TRANSFERS OF FUNDS)

For Departmental Administration, ø$30,529,000¿ $29,811,000, to
provide for necessary expenses for management support services to
offices of the Department and for general administration and disaster
management of the Department, repairs and alterations, and other
miscellaneous supplies and expenses not otherwise provided for and
necessary for the practical and efficient work of the Department,
including employment pursuant to the second sentence of section
706(a) of the Organic Act of 1944 (7 U.S.C. 2225), of which not
to exceed $10,000 is for employment under 5 U.S.C. 3109: Provided,
That this appropriation shall be reimbursed from applicable appropriations in this Act for travel expenses incident to the holding of
hearings as required by 5 U.S.C. 551–558. (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 12–0120–0–1–352

1996 actual

1997 est.

12 ...................

Total new budget authority (gross) ..........................

8 ...................
1
14
12 ...................

Total unpaid obligations, start of year ................
22
12
1
New obligations .............................................................
41
45
43
Total outlays (gross) ......................................................
–44
–44
–44
Adjustments in expired accounts ..................................
–7
–12 ...................
Unpaid obligations, end of year:
Obligated balance: Appropriation ............................. ...................
1 ...................
Orders on hand from Federal sources ......................
12 ................... ...................

74.99

Total unpaid obligations, end of year ..................

86.90
86.93
86.97
86.98

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

87.00

Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources
88.95 Change in orders on hand from Federal sources .........
88.96 Adjustment to orders on hand from Federal sources

–9
2
–6

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

28
35

89.00
90.00

DEPARTMENTAL ADMINISTRATION

14
13
–12 ...................

Spending authority from offsetting collections
(total) ...........................................................

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Obligated balance: Appropriation .............................
72.95
Orders on hand from Federal sources ......................
72.99
73.10
73.20
73.40

9
–2

1 ...................

28
30
30
7 ...................
1
5
14
13
4 ................... ...................
44

–14
–13
12 ...................
–12 ...................

31
30

30
30

Departmental Administration is comprised of activities that
provide staff support to top policy officials and overall direction and coordination of the Department. These activities include Department-wide programs for human resource management, management improvement, occupational safety and
health management, real and personal property management,
procurement, contracting, motor vehicle and aircraft management, supply management, ADP and telecommunications
management, civil rights and equal opportunity, emergency
preparedness, and the regulatory hearing and administrative
proceedings conducted by the Administrative Law Judges, Judicial Officer, and Board of Contract Appeals.
Departmental Administration is also responsible for representing USDA in the development of government-wide policies and initiatives; analyzing the impact of government-wide
trends and developing appropriate USDA principles, policies,
and standards. In addition, Departmental Administration engages in strategic planning and evaluating programs to ensure USDA-wide compliance with applicable laws, rules, and
regulations pertaining to administrative matters for the Secretary and general officers of the Department.

1998 est.

OFFICE

00.08
01.01

Obligations by program activity:
Direct program: Departmental Administration ..............
Reimbursable program ..................................................

28
13

31
14

30
13

10.00

Total obligations ........................................................

SMALL

AND DISADVANTAGED BUSINESS
WORKLOAD INDICATORS 1

1996 actual

Subcontracting plans reviewed ...................................................
Small businesses counseled .......................................................

40
6,100

UTILIZATION
1997 est.

1998 est.

40 ....................
6,200 ....................

DEPARTMENTAL ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
Small business procurement conferences conducted or sponsored by USDA/OSDBU ............................................................
Conferences participated in by OSDBU employees .....................
Procurement assistance reviews conducted ...............................
Training conferences conducted .................................................
1 Consistent

74.40
2
15
4
3

2
15
4
3

....................
....................
....................
....................

with the Administration’s budget request, 1998 data is shown in the account ‘‘Executive Operations’’.

Object Classification (in millions of dollars)
1996 actual

Identification code 12–0120–0–1–352

Outlays (gross), detail:
Outlays from new current authority ..............................
15
Outlays from current balances ...................................... ...................

11
5

17
5

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

16
15

16
16

25
22

1998 est.

26.0
31.0
99.0
99.0
99.5

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................
Below reporting threshold ..............................................

27
12
2

29
12
4

28
12
3

99.9

Total obligations ........................................................

25.3

87.00
1997 est.

Direct obligations:
Personnel compensation: Full-time permanent ........
Civilian personnel benefits .......................................
Communications, utilities, and miscellaneous
charges .................................................................
Purchases of goods and services from Government
accounts ................................................................
Supplies and materials .............................................
Equipment .................................................................

11.1
12.1
23.3

86.90
86.93

Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

19
4

23
4

22
4

1
1
1
1 ................... ...................
1 ................... ...................

Under the Comprehensive Environmental Response, Compensation, and Liability Act, the Resource Conservation and
Recovery Act and the Pollution Prevention Act of 1990, the
Department has the responsibility to meet the same standards for storage and disposition of hazardous wastes as private businesses. Since the Department has substantial commitments under these Acts, a central fund has been established so that resources may be allocated to the Department’s
agencies. Allocations are made according to objective criteria.

Personnel Summary
Identification code 12–0120–0–1–352

133

PERFORMANCE INDICATORS
1996 actual

1997 est.

1998 est.

1001

365

362

345

HAZARDOUS WASTE MANAGEMENT

1996 actual

OGC’S number of new and pending cases reviewed/total number of new and pending projects (number) ...........................
Potential responsible parties settled ..........................................
New sites identified for investigation (number) .........................
Investigations completed ............................................................
Number of Underground Storage Tanks (USTs) planned for removal vs. number of USTs removed ......................................
Leaking Underground Storage Tanks (USTs) ongoing cleanups
vs. number of leaking USTs completed .................................
HWM cleanup projects planned vs. number of projects completed ......................................................................................
Natural Resource Damages (NRD) assessments initiated vs.
number of assessments completed ........................................

1997 est.

1998 est.

175
4
198
90

275
10
150
170

310
10
204
77

31/46

30/30

10/10

39/14

21/21

9/9

51/62

90/90

80/72

2/1

3/2

4/2

(INCLUDING TRANSFERS OF FUNDS)

For necessary expenses of the Department of Agriculture, to comply
with the requirement of section 107(g) of the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, 42
U.S.C. 9607(g), and section 6001 of the Resource Conservation and
Recovery Act, as amended, 42 U.S.C. 6961, ø$15,700,000¿
$25,000,000, to remain available until expended: Provided, That appropriations and funds available herein to the Department for Hazardous Waste Management may be transferred to any agency of the
Department for its use in meeting all requirements pursuant to the
above Acts on Federal and non-Federal lands. (42 U.S.C. 6961, et
seq., 42 U.S.C. 9601, et seq.; Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies Appropriations Act,
1997.)

1996 actual

1997 est.

1998 est.

00.01

Obligations by program activity:
Direct program ...............................................................

10.00

Total obligations ........................................................

1
16

2 ...................
16
25

21.40

23.90
23.95
24.40

17
–15

18
–18

25
–25

2 ................... ...................

New budget authority (gross), detail:
Appropriation ..................................................................

15
15
–15

15
18
–16

16
25
–22

40.00

Object Classification (in millions of dollars)

72.40

1996 actual

Identification code 12–0500–0–1–304

1997 est.

1998 est.

25.2
99.5

Direct obligations: Other services .................................
Below reporting threshold ..............................................

14
1

15
3

24
1

99.9

Total obligations ........................................................

AGRICULTURE BUILDINGS

Program and Financing (in millions of dollars)
Identification code 12–0500–0–1–304

The performance indicators in the 1998 request reflect more
complex and work intensive projects.

AND

FACILITIES

AND

RENTAL PAYMENTS

(INCLUDING TRANSFERS OF FUNDS)

For payment of space rental and related costs pursuant to Public
Law 92–313, including authorities pursuant to the 1984 delegation
of authority from the Administrator of General Services to the Department of Agriculture under 40 U.S.C. 486, for programs and activities of the Department which are included in this Act, and for the
operation, maintenance, and repair of Agriculture buildings,
ø$120,548,000¿ $123,385,000: Provided, That in the event an agency
within the Department should require modification of space needs,
the Secretary of Agriculture may transfer a share of that agency’s
appropriation made available by this Act to this appropriation, or
may transfer a share of this appropriation to that agency’s appropriation, but such transfers shall not exceed 5 percent of the funds made
available for space rental and related costs to or from this account.
In addition, for construction, repair, improvement, extension, alteration, and purchase of fixed equipment or facilities as necessary to
carry out the programs of the Department, where not otherwise provided, ø$23,505,000¿ $5,000,000, to remain available until expended;
and in addition, for necessary relocation expenses of the Department’s
agencies, $2,700,000, to remain available until expended; making a
total appropriation of ø$144,053,000¿ $131,085,000. (7 U.S.C. 2201,
2202, 2208; Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)

134

DEPARTMENTAL ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
AGRICULTURE BUILDINGS

FACILITIES
Continued

AND

WORKLOAD INDICATORS
AND

RENTAL PAYMENTS—

(INCLUDING TRANSFERS OF FUNDS)—Continued

Program and Financing (in millions of dollars)
Identification code 12–0117–0–1–352

1996 actual

1997 est.

Total direct program .............................................
Reimbursable program ..................................................

155
4

163
5

131
5

10.00

Total obligations ........................................................

159

168

136

23.90
23.95
24.40

177
–159

19 ...................
149
136
168
–168

25.4

Direct obligations:
Personnel compensation: Full-time permanent ........
Civilian personnel benefits .......................................
Rental payments to GSA ...........................................
Communications, utilities, and miscellaneous
charges .................................................................
Other services ............................................................
Purchases of goods and services from Government
accounts ................................................................
Operation and maintenance of facilities ..................

99.9

11.1
12.1
23.1
23.3
25.2
25.3

70.00

Total new budget authority (gross) ..........................

1998 est.

300
19.0
11.5

19 ................... ...................

136

144

4
1
100

4
1
101

2
7

6
2

1
49

2
48

2
15

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

155
4

163
5

131
5

Total obligations ........................................................

159

168

136

Personnel Summary
Identification code 12–0117–0–1–352

140

149

1998 est.

136

Total compensable workyears: Full-time equivalent
employment ...............................................................

1996 actual

1997 est.

1998 est.

131

1997 est.

4
1
91

136
–136
1001

1996 actual

Identification code 12–0117–0–1–352

99.0
99.0

00.91
01.01

38
140

361
21.9
10.3

1997 est.

Object Classification (in millions of dollars)

1998 est.

Obligations by program activity:
Direct program:
00.01
Rental payments to GSA: Non-recurring repairs ......
91
101
98
00.02
Building operations and maintenance ......................
18
25
25
00.03
Beltsville renovation and repair ................................
6
3 ...................
00.04
Strategic space plan .................................................
40
34
5
00.05
Relocation expenses .................................................. ................... ...................
3

1996 actual

Indicators: ...........................................................................
Maintenance and Repairs:
Minor Repairs (number) .....................................................
Maintenance (hours) ..........................................................
Service Calls (number) .......................................................

ADVISORY COMMITTEES (USDA)
Program and Financing (in millions of dollars)
Identification code 12–0118–0–1–352

1996 actual

1997 est.

1998 est.

72.40

9
159
–120

47
168
–144

71
136
–155

114
25
5

107
43
5

87.00

144

155

120

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–4

–5

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

136
116

144
139

131
150

89.00
90.00

Obligations by program activity:
USDA advisory committees ............................................

1 ................... ...................

10.00

Total obligations (object class 99.5) ........................

1 ................... ...................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

1 ................... ...................
–1 ................... ...................

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

1 ................... ...................

1 ................... ...................
1 ................... ...................
–1 ................... ...................

86.90

Outlays (gross), detail:
Outlays from new current authority ..............................

1 ................... ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

1 ................... ...................
1 ................... ...................

Outlays (gross), detail:
86.90 Outlays from new current authority ..............................
116
86.93 Outlays from current balances ...................................... ...................
86.97 Outlays from new permanent authority .........................
4
Total outlays (gross) .................................................

00.01

72.40

This account finances the General Services Administration’s
fees for rental of space and related services. The appropriation
covers all fees for all regular appropriated accounts within
the Department of Agriculture with the exception of the Forest Service. This account also finances the operation and
maintenance of four buildings in the Headquarters area.
Beginning in 1995, the account included funds for USDA’s
strategic space plan. Since then, funds have been made available for the construction and occupancy of an office facility
at the Beltsville Agricultural Research Center and the design
and initial implementation of a long-term program to renovate
and modernize the South Building. The 1998 request provides
additional funding for the South Building renovation and for
one-time expenses associated with the relocation of USDA
agencies.

The Federal Advisory Committee Act (Public Law 92–463)
was passed in 1972 to recognize a means by which committees
and similar groups provide expert advice to officers of the
Federal Government. This account provides for direction and
financial support of all authorized Department of Agriculture
advisory committee activities other than those included in
the Forest Service or financed by other than appropriated
funds.
Beginning in 1997, USDA agencies are financing the operation of advisory committees from their own appropriations
and funds.

OFFICE OF THE INSPECTOR GENERAL
Federal Funds

DEPARTMENT OF AGRICULTURE
Personnel Summary
1996 actual

Identification code 12–0118–0–1–352

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

1997 est.

1998 est.

15 ................... ...................

gram. The major objective is to provide a balanced and useful
information program that reports on USDA’s research, administrative action, and regulatory activities using all communications media in order to enable the general public and
the agricultural industry to have a better understanding of
agriculture’s services to farmers and to society.
WORKLOAD INDICATORS

OFFICE OF COMMUNICATIONS

1996 actual

Federal Funds
General and special funds:
OFFICE

COMMUNICATIONS

For necessary expenses to carry on services relating to the coordination of programs involving public affairs, for the dissemination of
agricultural information, and the coordination of information, work,
and programs authorized by Congress in the Department,
ø$8,138,000¿ $8,279,000, including employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C.
2225), of which not to exceed $10,000 shall be available for employment under 5 U.S.C. 3109, and not to exceed $2,000,000 may be
used for farmers’ bulletins. (Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies Appropriations Act,
1997.)

Obligations by program activity:
00.01 Direct program: Public affairs .......................................
01.01 Reimbursable program ..................................................

1996 actual

Media organizations receiving USDA Information .......................
Broadcasters served by USDA products ......................................
Tours conducted by USDA Visitors Center ..................................
Photographic images converted to CD .......................................
Monthly meetings with Public Affairs Directors to share information on communications management ..............................

1997 est.

1998 est.

2,000
4,994
2,100
6,500

2,110
5,004
2,200
2,500

2,020
5,014
2,300
2,500

Object Classification (in millions of dollars)
1996 actual

Identification code 12–0150–0–1–352

1997 est.

1998 est.

1997 est.

11.1
12.1
25.2

Direct obligations:
Personnel compensation: Full-time permanent ........
Civilian personnel benefits .......................................
Other services ............................................................

6
1
1

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

8
4

8
1

99.9

Program and Financing (in millions of dollars)
Identification code 12–0150–0–1–352

135

Total obligations ........................................................

1998 est.

Personnel Summary

8
4

8
1

10.00

Total obligations ........................................................

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

12
–12

9
–9

1001

9
–9

Total compensable workyears: Full-time equivalent
employment ...............................................................

1997 est.

1998 est.

22.00
23.95

1996 actual

Identification code 12–0150–0–1–352

OFFICE OF THE INSPECTOR GENERAL
Federal Funds

General and special funds:
8

3
1
1
–1 ................... ...................
2 ................... ...................

Spending authority from offsetting collections
(total) ...........................................................

70.00

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Orders on hand
from Federal sources .................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.95 Unpaid obligations, end of year: Orders on hand
from Federal sources .................................................

4
12
–13

3
9
–9

72.95

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

OF THE

INSPECTOR GENERAL

(INCLUDING TRANSFERS OF FUNDS)

68.90

86.90
86.93
86.97

OFFICE

7
8
8
2 ................... ...................
4
1
1
13

–3
–1
–1
1 ................... ...................
–2 ................... ...................

For necessary expenses of the Office of the Inspector General, including employment pursuant to the second sentence of section 706(a)
of the Organic Act of 1944 (7 U.S.C. 2225), and the Inspector General
Act of 1978, as amended, ø$63,028,000¿ $65,259,000, including such
sums as may be necessary for contracting and other arrangements
with public agencies and private persons pursuant to section 6(a)(9)
of the Inspector General Act of 1978, as amended, including a sum
not to exceed $50,000 for employment under 5 U.S.C. 3109; not to
exceed $2,500 for official representation activities; and including a
sum not to exceed ø$95,000¿ $125,000, for certain confidential operational expenses including the payment of informants, to be expended
under the direction of the Inspector General pursuant to Public Law
95–452 and section 1337 of Public Law 97–98: Provided, That funds
transferred to the Office of the Inspector General through forfeiture
proceedings or from the Department of Justice Assets Forfeiture Fund
or the Department of the Treasury Forfeiture Fund, as a participating
agency, as an equitable share from the forfeiture of property in investigations in which the Office of the Inspector General participates,
or through the granting of a Petition for Remission or Mitigation,
shall be deposited to the credit of this account for law enforcement
activities authorized under the Inspector General Act of 1978, as
amended, to remain available until expended. (7 U.S.C. 450b, 2201,
2202, 2220, 2270; Public Law 100–504; Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 12–0900–0–1–352

8
9

8
8

Public affairs.—This office provides general direction, leadership, and coordination of the Department’s information pro-

1996 actual

1997 est.

1998 est.

00.01
01.01

Obligations by program activity:
Direct program ...............................................................
Reimbursable program ..................................................

64
2

63
2

65
2

10.00

Total obligations ........................................................

136

OFFICE OF THE INSPECTOR GENERAL—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
99.9

General and special funds—Continued
OFFICE

OF THE

Total obligations ........................................................

Personnel Summary

Identification code 12–0900–0–1–352

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

1996 actual

66
–66

1996 actual

Identification code 12–0900–0–1–352

Program and Financing (in millions of dollars)—Continued

70.00

INSPECTOR GENERAL—Continued

(INCLUDING TRANSFERS OF FUNDS)—Continued

22.00
23.95

1997 est.

Total compensable workyears:
1001 Full-time equivalent employment ..................................
1005 Full-time equivalent of overtime and holiday hours

1998 est.

65
–65

754
30

1997 est.

1998 est.

754
30

762
30

67
–67

OFFICE OF THE GENERAL COUNSEL
64

Federal Funds

General and special funds:
2

OFFICE

Total new budget authority (gross) ..........................

6
66
–64

8
65
–65

8
67
–67

OF THE

GENERAL COUNSEL

For necessary expenses of the Office of the General Counsel,
ø$27,749,000¿ $29,449,000. (7 U.S.C. 2201; 2202, 2214a; Agriculture,
Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 1997.)

72.40

Program and Financing (in millions of dollars)
Identification code 12–2300–0–1–352

58
4
2

57
6
2

59
6
2

87.00

Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–2

Net budget authority and outlays:
89.00 Budget authority ............................................................
90.00 Outlays ...........................................................................

64
63

63
63

65
65

The Office keeps the Secretary and Congress informed
about fraud, other serious problems, mismanagement, and
deficiencies in Department programs and operations, recommends corrective action, and reports on the progress made
in correcting the problems. It reviews existing and proposed
legislation and regulations and makes recommendations to
the Secretary and Congress regarding the impact these laws
have on the Department’s programs and the prevention and
detection of fraud and mismanagement in such programs.
The Office provides policy direction and conducts, supervises,
and coordinates all audits and investigations. The office supervises and coordinates other activities in the Department
and between the Department and other Federal, State and
local government agencies whose purposes are to: (a) promote
economy and efficiency; (b) prevent and detect fraud and mismanagement; and (c) identify and prosecute people involved
in fraud or mismanagement.

Obligations by program activity:
Direct program ...............................................................
Reimbursable program ..................................................

28
2

29
1

10.00

Total obligations ........................................................

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

30
–30

Total new budget authority (gross) ..........................

1
30
–30

1
30
–29

27
27
1 ...................
2
2

27
1
1

70.00

72.40

86.90
86.93
86.97

87.00

Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–2

–1

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

28
27

29
28

Object Classification (in millions of dollars)

11.1
11.5

1996 actual

1997 est.

89.00
90.00

1998 est.

37
4

38
4

40
4

41
11
5

42
11
5

43
11
5

25.2

Total personnel compensation .........................
Civilian personnel benefits .......................................
Travel and transportation of persons .......................
Communications, utilities, and miscellaneous
charges .................................................................
Other services ............................................................

1
2

1
1

99.0
99.0
99.5

60
2
4

60
2
3

62
2
3

11.9
12.1
21.0
23.3

1998 est.

00.01
01.01

Direct obligations:
Personnel compensation:
Full-time permanent .............................................
Other personnel compensation .............................

1997 est.

22.00
23.95

86.90
86.93
86.97

Identification code 12–0900–0–1–352

1996 actual

The Office of the General Counsel of the Department of
Agriculture provides all legal advice, counsel, and services
to the Secretary and to all agencies, offices, and corporations
of the Department on all aspects of their operations. It represents the Department in administrative proceedings; nonlitigation debt collection proceedings; state water rights adjudications; proceedings before the Environmental Protection
Agency, Interstate Commerce Commission, Federal Maritime
Administration and International Trade Commission; and, in
conjunction with the Department of Justice, in judicial proceedings and litigation. All attorneys and related support per-

NATIONAL AGRICULTURAL STATISTICS SERVICE
Federal Funds

DEPARTMENT OF AGRICULTURE

Object Classification (in millions of dollars)
1996 actual

1997 est.

1998 est.

25.2
26.0
31.0

Direct obligations:
Personnel compensation: Full-time permanent ........
20
21
23
Civilian personnel benefits .......................................
4
4
4
Communications, utilities, and miscellaneous
charges .................................................................
1
1
1
Other services ............................................................
2
1
1
Supplies and materials ............................................. ...................
1 ...................
Equipment .................................................................
1 ................... ...................

99.0
99.0
99.5

28
2
1

28
29
2
1
1 ...................

99.9

Total obligations ........................................................

11.1
12.1
23.3

Personnel Summary
1996 actual

Identification code 12–2300–0–1–352

Direct:
1001 Total compensable workyears: Full-time equivalent
employment ...............................................................
Reimbursable:
2001 Total compensable workyears: Full-time equivalent
employment ...............................................................

335

1997 est.

1998 est.

340

86.90
86.93
86.97

44
6
7

46
7
4

47
7
4

87.00

sonnel of the Department are under the supervision of the
General Counsel.

Identification code 12–2300–0–1–352

Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–7

–4

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

53
50

53
53

54
54

89.00
90.00

The Economic Research Service provides economic and
other social science research and analysis for public and private decisions on agriculture, food, natural resources, and
rural America.
Miscellaneous funds received from States, local organizations, and others are available for support of economic research and analysis (7 U.S.C. 450b, 450h, 3318b).
The 1998 request includes funding for two studies: one for
the cost and benefits of resource-conserving production practices and one for GPRA measurement tools.

360

Object Classification (in millions of dollars)
18

11.1
11.3

Federal Funds

11.9
12.1
21.0
23.3

General and special funds:
ECONOMIC RESEARCH SERVICE
For necessary expenses of the Economic Research Service in conducting economic research and analysis, as authorized by the Agricultural Marketing Act of 1946 (7 U.S.C. 1621–1627) and other laws,
ø$53,109,000¿ $54,310,000: Provided, That this appropriation shall
be available for employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225). (7 U.S.C.
292, 411, 427, 1441a, 1704, 1761–68, 2201, 2202, 3103, 3291, 3311,
3504; 22 U.S.C. 3101; 42 U.S.C. 1891–93; 44 U.S.C. 3501–11; 50
U.S.C. 2061 et seq., 2251 et seq.; Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations
Act, 1997.)

Direct obligations:
Personnel compensation:
Full-time permanent .............................................
Other than full-time permanent ...........................

25.5
26.0
31.0

Total personnel compensation .........................
Civilian personnel benefits .......................................
Travel and transportation of persons .......................
Communications, utilities, and miscellaneous
charges .................................................................
Other services ............................................................
Purchases of goods and services from Government
accounts ................................................................
Research and development contracts .......................
Supplies and materials .............................................
Equipment .................................................................

99.0
99.0
99.5

99.9

Total obligations ........................................................

25.2
25.3

Program and Financing (in millions of dollars)
1996 actual

1996 actual

Identification code 12–1701–0–1–352

ECONOMIC RESEARCH SERVICE

Identification code 12–1701–0–1–352

137

1997 est.

1998 est.

30
1

31
1

32
1

31
6
1

32
6
1

33
6
1

1
1

6
4
1
1

52
53
54
7
4
4
1 ................... ...................
60

Personnel Summary
1997 est.

1998 est.
1996 actual

Identification code 12–1701–0–1–352

Obligations by program activity:
00.01 Direct program ...............................................................
01.01 Reimbursable program ..................................................

53
7

53
4

54
4

10.00

Total obligations ........................................................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

60
–60

57
–57

1997 est.

1998 est.

58
–58

Total new budget authority (gross) ..........................

552

NATIONAL AGRICULTURAL STATISTICS
SERVICE
53

Federal Funds

72.40

6
60
–57

9
57
–57

9
58
–58

General and special funds:
NATIONAL AGRICULTURAL STATISTICS SERVICE
For necessary expenses of the National Agricultural Statistics Service in conducting statistical reporting and service work, including
crop and livestock estimates, statistical coordination and improvements, marketing surveys, and the Census of Agriculture notwithstanding 13 U.S.C. 142(a–b), as authorized by the Agricultural Marketing Act of 1946 (7 U.S.C. 1621–1627) and other laws,
ø$100,221,000¿ $119,877,000, of which up to ø$17,500,000¿
$36,327,000 shall be available until expended for the Census of Agri-

138

NATIONAL AGRICULTURAL STATISTICS SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
NATIONAL AGRICULTURAL STATISTICS SERVICE—Continued
culture: Provided, That this appropriation shall be available for employment pursuant to the second sentence of section 706(a) of the
Organic Act of 1944 (7 U.S.C. 2225), and not to exceed $40,000
shall be available for employment under 5 U.S.C. 3109. (7 U.S.C.
411, 411a, 411b, 427, 471, 475, 476, 501, 951, 953, 955–57, 2201,
2202, 2248, 3103, 3311, 3504; 18 U.S.C. 1902, 1905, 2072; 42 U.S.C.
1891–93; 44 U.S.C. 3501–11; 50 U.S.C. 2061 et seq., 2251 et seq.;
Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 12–1801–0–1–352

1996 actual

Obligations by program activity:
Direct program:
00.01
Agricultural estimates ...............................................
77
00.02
Statistical research and service ...............................
4
00.03
Census of Agriculture ................................................ ...................
00.91
01.01
10.00

22.00
23.95

Total direct program .............................................
Reimbursable program ..................................................
Total obligations ........................................................
Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

Total new budget authority (gross) ..........................

Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

81
9
90

90
–90

1997 est.

1998 est.

79
4
18

80
4
36

100
10

ments with State agencies provide additional State and county data. The 1998 program includes an increase of $540,000
for the development of standardized performance measurement tools for GPRA and a decrease of $1 million for list
development and maintenance.
Statistical research and service.—This activity is designed
to improve agricultural estimating techniques by improving
sample survey designs and procedures and by testing new
forecasting and estimating techniques, such as the use of
satellite data.
Census of Agriculture.—In 1997, the Census of Agriculture,
formerly funded by the Department of Commerce, was funded
by the Department of Agriculture. Due to the cyclical nature
of the program, an increase of $18,827,000 is requested to
conduct the census in 1998.
Miscellaneous funds received from local organizations, commodity groups, and others are available for dissemination
of reports and for crop and livestock survey work under cooperative agreements (7 U.S.C. 450b, 450h, 3318b).

120
10

110

110
–110

Performance Measures and Indicators:
Performance Measures

1996 actual

Indicators
1997 est.

1998 est.

Percentage of agricultural cash receipts covered by NASS’s
current production statistics program ...................................
Percentage of reports issued that meet scheduled release date
Timeliness of report releases ......................................................

91.0
99.9
25.0 days

93.0
99.9
24.5 days

96.0
100.0
24.0 days

1997 est.

1998 est.

130

130
–130

Object Classification (in millions of dollars)
81

100

120

110

130

11
14
18
90
110
130
–87
–107
–128
1 ................... ...................
14

11.1
11.3
11.9
12.1
21.0
23.3
24.0
25.2
25.3

86.90
86.93
86.97

69
9
9

89
8
10

106
12
10

87.00

Total outlays (gross) .................................................

107

128

1996 actual

Identification code 12–1801–0–1–352

25.7
26.0
31.0

Direct obligations:
Personnel compensation:
Full-time permanent .............................................
Other than full-time permanent ...........................

40
1

44
1

48
5

Total personnel compensation .........................
41
Civilian personnel benefits .......................................
9
Travel and transportation of persons .......................
1
Communications, utilities, and miscellaneous
charges .................................................................
3
Printing and reproduction ......................................... ...................
Other services ............................................................
18
Purchases of goods and services from Government
accounts ................................................................
4
Operation and maintenance of equipment ...............
1
Supplies and materials .............................................
1
Equipment .................................................................
2

45
10
1

53
12
1

3
1
19

4
1
23

14
1
1
5

20
1
1
3

–7
–2

–8
–2

88.90

Total, offsetting collections (cash) ..................

–9

–10

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

81
78

100
97

120
118

80
8
3

100
9
2

119
8
3

99.9

99.0
99.0
99.5

Total obligations ........................................................

110

130

Personnel Summary

Agricultural estimates.—The Service provides the official
National and State estimates of acreage, yield, and production
of crops, stocks, and value of farm commodities, and numbers
of inventory values of livestock items. Data on approximately
120 crops and 45 livestock products are covered in nearly
400 reports issued each year. Detailed data are also collected
on agricultural chemical use, labor, and expenditures. Data
collected and published on prices paid and received by farmers are basic to computation of farm program payments.
The work under this activity is conducted through 45 State
offices serving the 50 States; most of these offices are operated as joint State and Federal services. Cooperative arrange-

1996 actual

Identification code 12–1801–0–1–352

Direct:
Total compensable workyears:
1001
Full-time equivalent employment ..............................
1005
Full-time equivalent of overtime and holiday hours
Reimbursable:
2001 Total compensable workyears: Full-time equivalent
employment ...............................................................

1997 est.

1998 est.

955
1

1,032
1

1,202
1

AGRICULTURAL RESEARCH SERVICE
Federal Funds
General and special funds:
AGRICULTURAL RESEARCH SERVICE
(INCLUDING TRANSFERS OF FUNDS)

For necessary expenses to enable the Agricultural Research Service
to perform agricultural research and demonstration relating to production, utilization, marketing, and distribution (not otherwise pro-

AGRICULTURAL RESEARCH SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
vided for); home economics or nutrition and consumer use including
the acquisition, preservation, and dissemination of agricultural information; and for acquisition of lands by donation, exchange, or purchase at a nominal cost not to exceed $100, ø$716,826,000¿
$726,797,000: Provided, That appropriations hereunder shall be available for temporary employment pursuant to the second sentence of
section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not
to exceed $115,000 shall be available for employment under 5 U.S.C.
3109: Provided further, That appropriations hereunder shall be available for the operation and maintenance of aircraft and the purchase
of not to exceed one for replacement only: Provided further, That
appropriations hereunder shall be available pursuant to 7 U.S.C.
2250 for the construction, alteration, and repair of buildings and
improvements, but unless otherwise provided the cost of constructing
any one building shall not exceed $250,000, except for headhouses
or greenhouses which shall each be limited to $1,000,000, and except
for ten buildings to be constructed or improved at a cost not to
exceed $500,000 each, and the cost of altering any one building during the fiscal year shall not exceed 10 percent of the current replacement value of the building or $250,000, whichever is greater: Provided further, That the limitations on alterations contained in this
Act shall not apply to modernization or replacement of existing facilities at Beltsville, Maryland: Provided further, That the foregoing limitations shall not apply to replacement of buildings needed to carry
out the Act of April 24, 1948 (21 U.S.C. 113a): Provided further,
That funds may be received from any State, other political subdivision, organization, or individual for the purpose of establishing or
operating any research facility or research project of the Agricultural
Research Service, as authorized by lawø: Provided further,That all
rights and title of the United States in the property known as the
National Agricultural Water Quality Laboratory of the United States
Department of Agriculture, consisting of approximately 9.161 acres
in the city of Durant, Oklahoma, including facilities and fixed equipment, shall be conveyed to Southeastern Oklahoma State University¿.
None of the funds in the foregoing paragraph shall be available
to carry out research related to the production, processing or marketing of tobacco or tobacco products. (7 U.S.C. 328, 427, 427i, 1281
note, 1621, 2201, 2204, 2225, 2250, 3101 note; 10 U.S.C. 2306; 16
U.S.C. 590(a)–590(b), 590(k); 18 U.S.C. 1114; 19 U.S.C. 1306(a),
1306(c); 20 U.S.C. 191–194; 21 U.S.C. 113a, 114c, 114e–131; 42 U.S.C.
1476(e), 1483; Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 12–1400–0–1–352

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Direct program:
00.01
Research on soil and water conservation ................
00.02
Research on plant science ........................................
00.03
Research on animal science .....................................
00.04
Research on commodity conversion and delivery
00.05
Human nutrition research .........................................
00.06
Integration of agricultural systems ..........................
00.07
Repair and maintenance of facilities .......................
00.08
Contingencies ............................................................
00.11
Agricultural Information and Library Science ...........

87
234
113
140
60
33
18
1
20

85
243
115
143
64
30
18
1
18

82
246
116
141
75
29
18
1
19

00.91
01.01

Total direct program .............................................
Reimbursable program ..................................................

706
37

717
42

727
42

10.00

Total obligations ........................................................

743

759

769

22.00
22.30

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Unobligated balance expiring ........................................

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

747
759
769
–4 ................... ...................
743
–743

759
–759

769
–769

710

717

727

70.00

Total new budget authority (gross) ..........................

747

759

769

72.40

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................

184

192

194

73.10
73.20
73.40
74.40

New obligations .............................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts ..................................
Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

139

743
759
769
–739
–757
–766
4 ................... ...................
192

194

197

86.90
86.93
86.97

558
144
37

574
141
42

582
142
42

87.00

Total outlays (gross) .................................................

739

757

766

–31
–6

–36
–6

88.90

Total, offsetting collections (cash) ..................

–37

–42

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

710
702

717
715

727
724

The Agricultural Research Service conducts research to provide the means for a safer, more economical supply of agricultural products for the Nation and to provide producers with
technologies to competitively supply these products. Technology needs of regulatory, technical assistance and education
agencies of USDA and other Federal agencies are supported
through ARS research. The Service uses coordinated, interdisciplinary approaches to perform basic and applied research
on soil and water conservation, plant and animal sciences,
commodity conversion and delivery, human nutrition, and integrated agricultural systems. In 1998, the Service proposes
increased emphases for critical research needs in agriculture,
such as: food safety, integrated pest management and biocontrol of pests, human nutrition, genetic resources, emerging
diseases and exotic pests, grazinglands, and restoration of
the South Florida Everglades ecosystem. The Service expects
to submit 70 new patent applications, participate in 75 new
Cooperative
Research
and
Development
Agreements
(CRADAs), license 25 new products, and develop 70 new plant
varieties to release to industry for further development and
marketing in 1998.
Research on soil and water conservation.—Research is conducted to improve soil and water management, irrigation,
and conservation practices; to protect natural resources from
harmful effects of soil, air, and water pollutants and to minimize certain agricultural pollution problems; and to determine
the relation of soil types and water to plant, animal, and
human nutrition.
Research on plant science.—Research is conducted to increase plant productivity by improving plant varieties, developing new crop resources, and improving crop production
practices, including methods to control plant diseases, nematodes, insects, and weeds.
Research on animal science.—Research is conducted to increase livestock productivity (including poultry) through improved breeding, feeding, and management practices, and to
develop methods for controlling diseases, parasites, and insect
pests affecting these animals.
Research on commodity conversion and delivery.—Research
is conducted to develop new and improved foods, feeds, products, and processes for agricultural commodities and to improve the processing, transportation, storage, wholesaling,
and retailing of products. Research is also conducted on
means to ensure the safety of food and feed supplies, control
insect pests of man and his belongings, and reduce the hazards to human life resulting from pesticide residues and other
causes.
Human nutrition research.—Research is conducted on subjects such as human nutritional requirements and the com-

140

AGRICULTURAL RESEARCH SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
2001

AGRICULTURAL RESEARCH SERVICE—Continued

Reimbursable:
Total compensable workyears: Full-time equivalent
employment ...............................................................

(INCLUDING TRANSFERS OF FUNDS)—Continued

position and nutritive value of foods, to promote optimum
human health through improved nutrition.
Integration of agricultural systems.—Research is conducted
to develop integrated systems for efficiently producing, processing, and marketing agricultural products, and to develop
alternative agricultural systems that are less dependent upon
nonrenewable resources and that are productive, efficient, and
sustainable in the long term.
Agricultural information and library services.—The National Agricultural Library provides a variety of information
products and services through: (1) the administration of a
unique collection of books, journals, and other information
materials about food and agriculture to ensure accessibility
to their contents; (2) the development and maintenance of
cooperative efforts in the library and related information
areas, with other Federal agencies and with educational institutions in each State; and (3) an active program of information dissemination.
Repair and maintenance of facilities.—Funds are used to
restore, upgrade, and maintain Federal facilities to meet
OSHA and EPA requirements, provide suitable workspace for
in-house research programs, and to retrofit existing structures
for better energy utilization.
Contingencies.—Funds available to meet urgent needs that
develop unexpectedly during the year when such needs cannot
be met by redirection of resources from other projects.
Reimbursements.—Agricultural Research Service performs
program research activities and services for other USDA, Federal, and non-Federal agencies. These activities and services
are paid for on a reimbursable basis.
Object Classification (in millions of dollars)
1996 actual

Identification code 12–1400–0–1–352

1997 est.

1998 est.

BUILDINGS

AND

FACILITIES

For acquisition of land, construction, repair, improvement, extension, alteration, and purchase of fixed equipment or facilities as necessary to carry out the agricultural research programs of the Department of Agriculture, where not otherwise provided, ø$69,100,000¿
$59,300,000, to remain available until expended (7 U.S.C. 2209b):
Provided, That funds may be received from any State, other political
subdivision, organization, or individual for the purpose of establishing
any research facility of the Agricultural Research Service, as authorized by law. (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 12–1401–0–1–352

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Total obligations ............................................................

74
30

79
69

105
59

104
–25

148
–43

164
–47

105

118

28
25
–25

28
43
–52

19
47
–53

10.00

21.40

23.90
23.95
24.40

40.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................
New budget authority (gross), detail:
Appropriation ..................................................................

11.9
12.1
21.0
22.0
23.3

296
22
9

312
23
8

315
23
8

327
71
13
1

343
79
13
2

346
84
13
2

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

2
23

10
42

9
44

87.00

11.1
11.3
11.5

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

30
25

69
52

59
53

29
1
1
7

29
1
1
12

30
1
1
9

25.4
25.5
25.7
25.8
26.0
31.0
32.0
41.0

Total personnel compensation .........................
Civilian personnel benefits .......................................
Travel and transportation of persons .......................
Transportation of things ...........................................
Communications, utilities, and miscellaneous
charges .................................................................
Printing and reproduction .........................................
Advisory and assistance services .............................
Other services ............................................................
Purchases of goods and services from Government
accounts ................................................................
Operation and maintenance of facilities ..................
Research and development contracts .......................
Operation and maintenance of equipment ...............
Subsistence and support of persons ........................
Supplies and materials .............................................
Equipment .................................................................
Land and structures ..................................................
Grants, subsidies, and contributions ........................

3
21
112
9
1
56
37
3
14

3
19
101
9
1
52
35
3
14

3
18
107
9
1
53
35
3
12

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

706
37

717
42

727
42

This account provides funds for acquisition of land, construction, repair, improvement, extension, alterations, and
purchases of fixed equipment or facilities of or used by the
Agricultural Research Service. The 1998 request provides for
the continuing modernization and renovation efforts at the
Beltsville Agricultural Research Center, Beltsville, MD; Regional Utilization Centers at Peoria, IL; Philadelphia, PA;
New Orleans, LA; and Plum Island Animal Disease Center,
Greenport, NY; National Agricultural Library; and construction of new replacement laboratories at Parlier, CA; and
Montpellier, France. The request also provides for construction of a new facility in Ft. Lauderdale, FL as part of the
Administration’s Everglades initiatives.

99.9

Total obligations ........................................................

743

759

769

Object Classification (in millions of dollars)

24.0
25.1
25.2
25.3

Identification code 12–1401–0–1–352

Personnel Summary
Identification code 12–1400–0–1–352

Direct:
Total compensable workyears:
1001
Full-time equivalent employment ..............................
1005
Full-time equivalent of overtime and holiday hours

1996 actual

7,471
45

1997 est.

7,644
45

1998 est.

7,458
45

25.2
32.0
41.0
99.5

Other services ................................................................
Land and structures ......................................................
Grants, subsidies, and contributions ............................
Below reporting threshold ..............................................

99.9

Total obligations ........................................................

1996 actual

1997 est.

1998 est.

21
30
33
2
11
12
1
2
2
1 ................... ...................
25

COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION SERVICE
Federal Funds

DEPARTMENT OF AGRICULTURE
Trust Funds

COOPERATIVE STATE RESEARCH,
EDUCATION, AND EXTENSION SERVICE

MISCELLANEOUS CONTRIBUTED FUNDS

Federal Funds

Unavailable Collections (in millions of dollars)
1996 actual

Identification code 12–8214–0–7–352

General and special funds:
1997 est.

1998 est.

RESEARCH

Balance, start of year:
01.99 Balance, start of year .................................................... ................... ................... ...................
Receipts:
02.01 Science and Education Administration contributed
funds .........................................................................
11
15
15
Appropriation:
05.01 Miscellaneous contributed funds ...................................
–11
–15
–15
07.99 Total balance, end of year ............................................ ................... ................... ...................

Program and Financing (in millions of dollars)
1996 actual

Identification code 12–8214–0–7–352

1997 est.

1998 est.

Obligations by program activity:
Total obligations ............................................................

9
11

8
15

20
–12

23
–15

4
12
–12

3
15
–13

4
15
–14

10.00

21.40

23.90
23.95
24.40

60.27

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................
New budget authority (gross), detail:
Appropriation (trust fund, indefinite) ............................

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

9
3

10
3

10
4

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

11
12

15
13

AND

EDUCATION ACTIVITIES

For payments to agricultural experiment stations, for cooperative
forestry and other research, for facilities, and for other expenses,
including $168,734,000 to carry into effect the provisions of the Hatch
Act (7 U.S.C. 361a–361i); $20,497,000 for grants for cooperative forestry research (16 U.S.C. 582a–582a7); $27,735,000 for payments to
the 1890 land-grant colleges, including Tuskegee University (7 U.S.C.
3222); ø$49,767,000¿ $10,051,000 for special grants for agricultural
research (7 U.S.C. 450i(c)); ø$11,769,000¿ $24,738,000 for special
grants for agricultural research on improved pest control (7 U.S.C.
450i(c)); ø$94,203,000¿ $130,000,000 for competitive research grants
(7 U.S.C. 450i(b)), to remain available until expended; $4,775,000
for the support of animal health and disease programs (7 U.S.C.
3195); $650,000 for supplemental and alternative crops and products
(7 U.S.C. 3319d); ø$500,000 for grants for research pursuant to the
Critical Agricultural Materials Act of 1984 (7 U.S.C. 178) and section
1472 of the Food and Agriculture Act of 1977, as amended (7 U.S.C.
3318), to remain available until expended; $475,000 for rangeland
research grants (7 U.S.C. 3331–3336);¿ $3,000,000 for higher education graduate fellowships grants (7 U.S.C. 3152(b)(6)), to remain
available until expended (7 U.S.C. 2209b); ø$4,000,000¿ $4,350,000
for higher education challenge grants (7 U.S.C. 3152(b)(1)); $1,000,000
for a higher education minority scholars program (7 U.S.C.
3152(b)(5)), to remain available until expended (7 U.S.C. 2209b);
$1,500,000 for an education grants program for Hispanic-serving Institutions (7 U.S.C. 3241); $4,000,000 for aquaculture grants (7 U.S.C.
3322); $8,000,000 for sustainable agriculture research and education
(7 U.S.C. 5811); $9,200,000 for a program of capacity building grants
(7 U.S.C. 3152(b)(4)) to colleges eligible to receive funds under the
Act of August 30, 1890 (7 U.S.C. 321–326 and 328), including
Tuskegee University, to remain available until expended (7 U.S.C.
2209b); $1,450,000 for payments to the 1994 Institutions pursuant
to section 534(a)(1) of Public Law 103–382; and ø$10,249,000¿
$2,662,000 for necessary expenses of Research and Education Activities, of which not to exceed $100,000 shall be for employment under
5 U.S.C. 3109; in all, ø$421,504,000¿ $422,342,000.
None of the funds in the foregoing paragraph shall be available
to carry out research related to the production, processing or marketing of tobacco or tobacco products.

15
14

NATIVE AMERICAN INSTITUTIONS ENDOWMENT FUND
For establishment of a Native American institutions endowment
fund, as authorized by Public Law ø130¿ 103–382 (7 U.S.C. 301
note), $4,600,000. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 1997.)
Unavailable Collections (in millions of dollars)
Identification code 12–1500–0–1–352

Miscellaneous contributed funds received from States, local
organizations, individuals, and others are available for work
under cooperative agreements on research activities.
Object Classification (in millions of dollars)
1996 actual

Identification code 12–8214–0–7–352

1997 est.

Personnel compensation: Full-time permanent .............
Civilian personnel benefits ............................................
Other services ................................................................
Supplies and materials .................................................
Equipment ......................................................................

3
1
5
2
1

3
1
8
2
1

99.9

Total obligations ........................................................

Personnel Summary

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

1996 actual

1997 est.

1996 actual

1997 est.

1998 est.

Balance, start of year:
01.99 Balance, start of year .................................................... ................... ................... ...................
Receipts:
02.01 Federal payment, Native American Institutions Endowment Fund .................................................................
5
5
5
02.02 Earnings on investments ............................................... ................... ...................
1
02.99

1998 est.

11.1
12.1
25.2
26.0
31.0

Identification code 12–8214–0–7–352

141

1998 est.

Total receipts .............................................................
5
5
Appropriation:
05.01 Cooperative state research activities ............................
–5
–5
07.99 Total balance, end of year ............................................ ................... ...................

6
–5
1

Program and Financing (in millions of dollars)
Identification code 12–1500–0–1–352

Obligations by program activity:
Direct program:
00.01
Payments under the Hatch Act .................................
00.02
Cooperative forestry research ....................................
00.03
Payments to 1890 colleges and Tuskegee University
00.04
Special research grants ............................................
00.05
National research initiative competitive grants .......
00.06
Animal health and disease research ........................

1996 actual

169
20
28
73
52
5

1997 est.

169
20
28
75
139
5

1998 est.

169
20
28
47
130
5

142

COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
NATIVE AMERICAN INSTITUTIONS ENDOWMENT FUND—Continued
Program and Financing (in millions of dollars)—Continued
Identification code 12–1500–0–1–352

1996 actual

1997 est.

1998 est.

00.07
00.08
00.09

Federal administration ..............................................
Higher education .......................................................
Native American Institutions Endowment Fund ........

20
9
5

10
21
5

3
20
5

00.91
01.01

Total direct program .............................................
Reimbursable program ..................................................

381
11

472
16

427
16

10.00

Total obligations ........................................................

392

488

443

23.90
23.95
24.40

438
–392

46 ...................
443
443
489
–488

443
–443

46 ................... ...................

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
40.25
Appropriation (special fund, indefinite) ....................

422
5

43.00

Appropriation (total) .............................................
Permanent:
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

427

Total new budget authority (gross) ..........................

438

443

68.00
70.00

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

402
322
366
392
488
443
–428
–444
–440
–44 ................... ...................
322

366

369

86.90
86.93
86.97

209
208
11

217
211
16

217
207
16

87.00

Total outlays (gross) .................................................

428

444

440

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–11

–16

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

427
417

427
428

427
424

89.00
90.00

Cooperative State Research, Education, and Extension Service participates in a nationwide system of agricultural research and education program planning and coordination between State institutions and the U.S. Department of Agriculture. It assists in maintaining cooperation among the State
institutions, and between the State institutions and their Federal research partners. The Agency administers grants and
payments to State institutions to supplement State and local
funding for agricultural research and higher education.
Payments under the Hatch Act.—Funds under the Hatch
Act are allocated on a formula basis to agricultural experiment stations of the land-grant colleges in the 50 States,
the District of Columbia, Puerto Rico, Guam, the Virgin Islands, American Samoa, Micronesia, and Northern Mariana
Islands.
Cooperative forestry research.—These funds are allocated by
formula to land-grant colleges or agricultural experiment stations in the 50 States, Puerto Rico, Guam, the Virgin Islands,
and other State-supported colleges and universities having

a forestry school and offering graduate training in forestry
sciences.
Payments to 1890 colleges and Tuskegee University.—Funds
allocated on a formula basis support agricultural research
and broaden the curricula at the seventeen 1890 land-grant
colleges, including Tuskegee University.
Special research grants.—This program addresses research
areas of national interest. Increased funding is proposed for
grant programs in integrated pest management/biological control and pesticide clearance. Funding is also proposed for pest
management alternatives, pesticide impact assessment and
sustainable agriculture. Advances in these areas will provide
producers with safe, alternative pest control methods resulting in more farmers increasing the number of acres on which
Integrated Pest Management (IPM) methods are used. The
program goal is the implementation of IPM methods on 75
percent of crop acreage by the year 2000, with an outcome
of creating an agricultural system that is highly competitive
in the global economy. Funding proposed for pesticide clearance and minor use animal drugs will address the growing
need for registration of safe pesticides and drugs for minor
crops and animals and lead to reduced levels of chemical
and drug residues in food products by half. In 1998, the
Agency expects to complete 300 conventional pesticide registration tolerance packages and 30 biopesticide registration
packages. A grant program for global change is proposed for
research at universities as part of a coordinated Federal initiative. Funding is also proposed for water quality, the National Biological Impact Assessment Program, rural development centers, aquaculture centers, and supplemental and alternative crops.
National research initiative competitive grants.—Funding is
being proposed for the National Initiative for Research on
Agriculture, Food, and the Environment (NRI). Research scientists throughout the U.S. scientific community compete for
funding under this program. The performance goal has been
to attract the widest possible involvement of U.S. scientists
in agricultural research to increase the knowledge base related to U.S. agriculture, food, and the environment and maintain world leadership in agricultural science and engineering.
NRI funding has resulted in increased participation by universities which are not traditionally considered agricultural
schools and of highly skilled researchers in projects addressing agricultural issues. The outcomes include the efficient
communication of research results to scientific, engineering,
and community user groups. These grants support research
in plants and animals; natural resources and the environment; nutrition, food safety, and health; markets, trade, and
rural development; and processing for adding value or developing new products. This initiative includes funding for a
plant genome mapping program for which the Agricultural
Research Service serves as the lead agency. Global change
research being carried out through the NRI is part of a government-wide program. In 1998, the requested increase will
be targeted to expand research to help reduce the incidence
of food borne illness caused by microbiological pathogens ($4
million), improve environmental quality ($10 million), and to
increase research on the genetic enhancement of plants ($22
million).
Animal health and disease research.—Funds, distributed by
formula, support livestock and poultry disease research in
sixty-seven colleges of veterinary medicine and in eligible agricultural experiment stations.
Federal administration.—A coordinating and review staff
assists in maintaining cooperation within and among the
States, and between the States and their Federal research
partners. This staff also administers research and education
grants and payments to States. Federal administration is
funded from a combination of program set-asides from for-

COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE

mula and grant programs and from direct appropriation for
administration.
Higher education.—Funding is proposed for graduate fellowships grants, competitive challenge grants, Hispanic serving
institutions education grants program, a multicultural scholars program and a Native American institutions program.
Proposed funding for these higher education programs would
support approximately 94 grants. These programs will enable
universities to broaden their curricula; increase faculty development; student research projects; and the number of new
scholars recruited in the food and agricultural sciences. In
addition, an increased number of graduate students, including
minority graduate students, will be enrolled in the agricultural sciences. Funding is also proposed for a capacity building program at the 1890 institutions as part of a USDA
initiative to strengthen these institutions through a broadening of curricula, increased faculty development and student
research projects. Proposed funding would support approximately 49 teaching and research grants.
Reimbursable program.—Funds support basic and applied
agriculture research and activities performed for other USDA,
Federal, and non-Federal agencies.
Native American Institutions Endowment Fund.—This program provides for an endowment for the 1994 land-grant institutions (29 Tribally controlled colleges) to strengthen the
infrastructure of these institutions and develop Indian expertise for the food and agricultural sciences and businesses and
their own communities. At the termination of each fiscal year,
the Secretary shall withdraw the income from the endowment
fund for the fiscal year, and after making adjustments for
the cost of administering the fund, distribute the adjusted
income on a formula basis to the 1994 land-grant institutions.
Object Classification (in millions of dollars)
1996 actual

Identification code 12–1500–0–1–352

1997 est.

1998 est.

143

Program and Financing (in millions of dollars)
1996 actual

Identification code 12–1501–0–1–352

1997 est.

1998 est.

Obligations by program activity:
Total obligations ............................................................

69 ...................

10
58

7 ...................
62 ...................

68
–60

69 ...................
–69 ...................

10.00

21.40

23.90
23.95
24.40

40.00

7 ................... ...................

New budget authority (gross), detail:
Appropriation ..................................................................

156
60
–31

185
194
69 ...................
–60
–61

185

62 ...................

194

72.40

133

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

2
29

3 ...................
57
61

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

58
31

62 ...................
60
61

Funds provide grants to States and other eligible recipients
for the acquisition of land, construction, repair, improvement,
extension, alteration and purchase of fixed equipment or facilities to carry out agricultural research, extension, and
teaching programs. No funding is proposed in 1998.

11
2
1

12
2
1

26.0
41.0

2
1
364

2
1
454

2
1
409

11.1
25.2
41.0

Personnel compensation: Full-time permanent .............
Other services ................................................................
Grants, subsidies, and contributions ............................

1
2
57

1 ...................
1 ...................
67 ...................

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

381
11

472
16

427
16

99.9

Total obligations ........................................................

69 ...................

99.9

Total obligations ........................................................

392

488

443

11.1
12.1
21.0
25.3

Object Classification (in millions of dollars)
1996 actual

Identification code 12–1501–0–1–352

øBUILDINGS

1001
1996 actual

Identification code 12–1500–0–1–352

1997 est.

1998 est.

Personnel Summary
1996 actual

Identification code 12–1501–0–1–352

Personnel Summary

1997 est.

Total compensable workyears: Full-time equivalent
employment ...............................................................

1997 est.

1998 est.

10 ...................

1998 est.

184
2

194
2

195
2

AND FACILITIES¿

øFor acquisition of land, construction, repair, improvement, extension, alteration, and purchase of fixed equipment or facilities and
for grants to States and other eligible recipients for such purposes,
as necessary to carry out the agricultural research, extension, and
teaching programs of the Department of Agriculture, where not otherwise provided, $61,591,000, to remain available until expended (7
U.S.C. 2209b).¿ (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)

EXTENSION ACTIVITIES
Payments to States, the District of Columbia, Puerto Rico, Guam,
the Virgin Islands, Micronesia, Northern Marianas, and American
Samoa: For payments for cooperative extension work under the
Smith-Lever Act, as amended, to be distributed under sections 3(b)
and 3(c) of said Act, and under section 208(c) of Public Law 93–
471, for retirement and employees’ compensation costs for extension
agents and for costs of penalty mail for cooperative extension agents
and State extension directors, $268,493,000; $2,000,000 for extension
work at the 1994 Institutions under the Smith-Lever Act (7 U.S.C.
343(b)(3)); payments for the nutrition and family education program
for low-income areas under section 3(d) of the Act, $58,695,000; payments for the pest management program under section 3(d) of the
Act, ø$10,783,000; payments for the farm safety program under section 3(d) of the Act, $2,855,000¿ $15,000,000; payments for the pesticide impact assessment program under section 3(d) of the Act,
ø$3,214,000¿ $3,313,000; payments to upgrade 1890 land-grant college research, extension, and teaching facilities as authorized by sec-

144

COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
23.95
24.40

General and special funds—Continued
EXTENSION ACTIVITIES—Continued
tion 1447 of Public Law 95–113, as amended (7 U.S.C. 3222b),
$7,549,000, to remain available until expended; payments for the
rural development centers under section 3(d) of the Act, $908,000;
payments for a groundwater quality program under section 3(d) of
the Act, ø$10,733,000; payments for the agricultural telecommunications program, as authorized by Public Law 101–624 (7 U.S.C.
5926), $1,167,000;¿ $9,061,000; payments for a pesticide applicator
training program under section 3(d) of the Act, $1,500,000; payments
for youth-at-risk programs under section 3(d) of the Act, ø$9,554,000¿
$11,700,000, of which $1,700,000 is for 1890 land-grant colleges and
Tuskegee University, as authorized by section 883 of Public Law 104–
127; payments for a food safety program under section 3(d) of the
Act, ø$2,365,000¿ $4,365,000; øpayments for carrying out the provisions of the Renewable Resources Extension Act of 1978, $3,192,000;¿
payments for Indian reservation agents under section 3(d) of the
Act, $1,672,000; payments for sustainable agriculture programs under
section 3(d) of the Act, $3,309,000; øpayments for rural health and
safety education as authorized by section 2390 of Public Law 101–
624 (7 U.S.C. 2661 note, 2662), $2,628,000;¿ payments for cooperative
extension work by the colleges receiving the benefits of the second
Morrill Act (7 U.S.C. 321–326, 328) and Tuskegee University,
ø$24,337,000¿ $25,090,000; and for Federal administration and coordination including administration of the Smith-Lever Act, as
amended, and the Act of September 29, 1977 (7 U.S.C. 341–349),
as amended, and section 1361(c) of the Act of October 3, 1980 (7
U.S.C. 301 note), and to coordinate and provide program leadership
for the extension work of the Department and the several States
and insular possessions, ø$12,066,000¿ $5,156,000; in all,
ø$425,520,000¿ $417,811,000: Provided, That funds hereby appropriated pursuant to section 3(c) of the Act of June 26, 1953, and
section 506 of the Act of June 23, 1972, as amended, shall not be
paid to any State, the District of Columbia, Puerto Rico, Guam,
or the Virgin Islands, Micronesia, Northern Marianas, and American
Samoa prior to availability of an equal sum from non-Federal sources
for expenditure during the current fiscal year. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 1997.)
øFor an additional amount for payments for cooperative extension
work by the colleges receiving the benefits of the second Morrill
Act (7 U.S.C. 321–326, 328) and Tuskegee University, $753,000.¿
(Omnibus Consolidated Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 12–0502–0–1–352

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Direct program:
00.01
Smith-Lever Act, 3(b) and 3(c) .................................
268
268
268
00.02
Youth at Risk ............................................................
10
10
12
00.03
Water quality .............................................................
11
11
9
00.04
EFNEP ........................................................................
61
59
59
00.05
Pest management .....................................................
11
11
15
00.06
Farm Safety ...............................................................
3
3 ...................
00.07
Pesticide impact assessment ...................................
3
3
3
00.08
Pesticide Applicator Training .................................... ................... ...................
2
00.09
Indian reservation extension agents .........................
2
2
2
00.10
Ag. Telecommunications ............................................
1
1 ...................
00.11
Food safety ................................................................
3
2
4
00.12
Rural Development ....................................................
1
1
1
00.13
Payments to 1890 colleges and Tuskegee University
25
25
25
00.15
Renewable resources extension act ..........................
3
3 ...................
00.16
Federal Administration ..............................................
12
12
5
00.18
Rural health and safety education ...........................
3
3 ...................
00.19
1890 facilities (section 1447) ..................................
6
13
8
00.21
Sustainable Agriculture .............................................
3
3
3
00.22
1994 Institutions Activities ....................................... ...................
2
2
00.91
01.01

Total direct program .............................................
Reimbursable program ..................................................

426
10

432
25

418
25

10.00

Total obligations ........................................................

436

457

443

4
438

6 ...................
451
443

23.90

442

457

21.40

Total budgetary resources available for obligation

443

New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

–436

–457

–443

6 ................... ...................

428

426

418

Total new budget authority (gross) ..........................

438

451

443

189
436
–413

212
457
–444

225
443
–445

212

225

223

70.00

72.40

86.90
86.93
86.97

277
126
10

293
126
25

287
133
25

87.00

Total outlays (gross) .................................................

413

444

445

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–10

–25

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

428
403

426
419

418
420

89.00
90.00

The Cooperative Extension System, a national educational
network, is a dynamic organization pledged to meeting the
country’s needs for research-based educational programs that
will enable people to make practical decisions to improve their
lives. To accomplish its mission, the Cooperative Extension
System adjusts programs to meet the shifting needs and priorities of the people it serves.
The nonformal educational network combines the expertise
and resources of federal, state, and local partners. The partners in this unique System are: (a) The Cooperative State
Research, Education, and Extension Service at the U.S. Department of Agriculture; (b) Extension professionals at landgrant universities throughout the United States and its territories; and (c) Extension professionals in nearly all of the
Nation’s 3,150 counties. Thousands of paraprofessionals and
nearly 3 million volunteers support this partnership and magnify its impact. Strong linkages with both public and private
external groups are also crucial to the Cooperative Extension
System’s strength and vitality.
Base programs, funded by the Smith-Lever 3(b) and (c)
legislated formula funds, are the major educational efforts
central to the mission of the System and common to most
Extension units. They are the ongoing priority efforts of the
System, involving many discipline-based and multi-disciplinary programs. The System’s base programs are the foundation of the Extension organization and partnership that are
intended to increase the number of community-based projects,
families, and individuals reached to disseminate research
findings as widely and quickly as possible. The use of electronic mail, satellite transmission of courses, and computerassisted instruction are encouraged to communicate ideas.
Extension resources are provided to the States by these
formula funds and competitively-awarded programs such as
sustainable agriculture. Smith-Lever 3(b) and (c) funds and
payments to the 1890 colleges and Tuskegee University provide funds to support the Extension infrastructure.
Funds for designated programs, funded by Smith-Lever 3(d)
legislated formula funds, such as youth at risk, expanded
food and nutrition education program (EFNEP), and food safe-

ANIMAL AND PLANT HEALTH INSPECTION SERVICE
Federal Funds

DEPARTMENT OF AGRICULTURE

ty, provide support for the Cooperative Extension System to
address identified priority issues.
National initiatives funded by legislative formulas, administratively determined distribution, Congressional and Executive intent, and competitively-awarded projects, are the System’s commitment to respond to important problems of broad
national concern with additional resources and significantly
increased effort to achieve a major impact on national priorities. They are the most current significant and complex issues on which the Extension System has the potential to
make a difference—usually in cooperation with other agencies, groups, and units of government. The goal is to inform
and educate these extension agriculture professionals and volunteers who, in turn, educate the professional farmers and
end-users regarding these critical initiatives and concerns.
Initiatives proposed in 1998 include funding for: sustainable
agriculture education programs; increased efforts on pest
management; pesticide applicator training; and support to the
1890 Institutions and Tuskegee University.
Object Classification (in millions of dollars)
1996 actual

Identification code 12–0502–0–1–352

1997 est.

1998 est.

31.0
41.0

Direct obligations:
Personnel compensation: Full-time permanent ........
Civilian personnel benefits .......................................
Travel and transportation of persons .......................
Communications, utilities, and miscellaneous
charges .................................................................
Printing and reproduction .........................................
Other services ............................................................
Purchases of goods and services from Government
accounts ................................................................
Equipment .................................................................
Grants, subsidies, and contributions ........................

2
2
2
1 ................... ...................
409
416
402

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

426
10

432
25

418
25

99.9

Total obligations ........................................................

436

457

chase of not to exceed four, of which two shall be for replacement
only: Provided further, That, in addition, in emergencies which threaten any segment of the agricultural production industry of this country, the Secretary may transfer from other appropriations or funds
available to the agencies or corporations of the Department such
sums as he may deem necessary, to be available only in such emergencies for the arrest and eradication of contagious or infectious
disease or pests of animals, poultry, or plants, and for expenses
in accordance with the Act of February 28, 1947, as amended, and
section 102 of the Act of September 21, 1944, as amended, and any
unexpended balances of funds transferred for such emergency purposes in the next preceding fiscal year shall be merged with such
transferred amounts: Provided further, That appropriations hereunder shall be available pursuant to law (7 U.S.C. 2250) for the
repair and alteration of leased buildings and improvements, but unless otherwise provided the cost of altering any one building during
the fiscal year shall not exceed 10 percent of the current replacement
value of the building.
In fiscal year ø1997¿ 1998 the agency is authorized to collect fees
to cover the total costs of providing technical assistance, goods, or
services requested by States, other political subdivisions, domestic
and international organizations, foreign governments, or individuals,
provided that such fees are structured such that any entity’s liability
for such fees is reasonably based on the technical assistance, goods,
or services provided to the entity by the agency, and such fees shall
be credited to this account, to remain available until expended, without further appropriation, for providing such assistance, goods, or
services.
Of the total amount available under this heading in fiscal year
ø1997, $98,000,000¿ 1998, $100,000,000 shall be derived from user
fees deposited in the Agricultural Quarantine Inspection User Fee
Account. (10 U.S.C. 2306; 15 U.S.C. 69e, 1821–31; 16 U.S.C. 1531–
43; 18 U.S.C. 1114; 19 U.S.C. 1306, 21 U.S.C. 101–105, 111–114,
114a–114c; 114d–1, 114e–131, 134–135b, 151–158; 26 U.S.C. 4491–
94; 45 U.S.C. 71–74; 46 U.S.C. 466a–466(b); 49 U.S.C. 1471(a)–
1509(d), 1741; 46 Stat. 67; 78 Stat. 939–940; 99 Stat. 1645–1650,
1654–1656, 1658–1659; Agriculture, Rural Development, Food and
Drug Administration, and Related Agencies Appropriations Act, 1997.)

443

11.1
12.1
21.0
23.3
24.0
25.2
25.3

6
2
1

7
2
1

1
1
3

1
1
2

Unavailable Collections (in millions of dollars)
Identification code 12–1600–0–1–352

Personnel Summary
1996 actual

Identification code 12–0502–0–1–352

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

177

1997 est.

186

1998 est.

176

ANIMAL AND PLANT HEALTH INSPECTION
SERVICE

145

Balance, start of year:
01.99 Balance, start of year ....................................................
Receipts:
02.01 Agricultural quarantine inspection fees ........................
04.00

1996 actual

1997 est.

1998 est.

171

135

141

Total: Balances and collections ....................................
Appropriation:
05.01 Salaries and expenses ...................................................

207

224

232

–118

–133

–141

05.99
07.99

–118
89

–133
91

–141
91

Federal Funds

Subtotal appropriation ...................................................
Total balance, end of year ............................................

Program and Financing (in millions of dollars)

General and special funds:
SALARIES

AND

EXPENSES

(INCLUDING TRANSFERS OF FUNDS)

For expenses, not otherwise provided for, including those pursuant
to the Act of February 28, 1947, as amended (21 U.S.C. 114b–c),
necessary to prevent, control, and eradicate pests and plant and animal diseases; to carry out inspection, quarantine, and regulatory activities; to discharge the authorities of the Secretary of Agriculture
under the Act of March 2, 1931 (46 Stat. 1468; 7 U.S.C. 426–426b);
and to protect the environment, as authorized by law, ø$434,909,000¿
$424,491,000, of which ø$4,500,000¿ $4,443,000 shall be available
for the control of outbreaks of insects, plant diseases, animal diseases
and for control of pest animals and birds to the extent necessary
to meet emergency conditions: Provided, That no funds shall be used
to formulate or administer a brucellosis eradication program for the
current fiscal year that does not require minimum matching by the
States of at least 40 percent: Provided further, That this appropriation shall be available for field employment pursuant to the second
sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225),
and not to exceed $40,000 shall be available for employment under
5 U.S.C. 3109: Provided further, That this appropriation shall be
available for the operation and maintenance of aircraft and the pur-

Identification code 12–1600–0–1–352

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Direct program:
00.01
Pest and disease exclusion .......................................
00.02
Plant and animal health monitoring ........................
00.03
Pest and disease management programs ................
00.04
Animal care ...............................................................
00.05
Scientific and technical services ..............................
00.06
Contingencies ............................................................
00.07
Emergency program funding .....................................

213
68
98
10
49
5
34

234
241
71
75
96
80
10
10
54
53
4
4
43 ...................

00.91
01.01

Total direct program .............................................
Reimbursable program ..................................................

477
39

512
42

463
43

10.00

Total obligations ........................................................

516

554

506

–21
489
33

–15
–16
512
508
42 ...................

21.40

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

501
–516

539
–554

492
–506

146

ANIMAL AND PLANT HEALTH INSPECTION SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
SALARIES

AND

EXPENSES—Continued

(INCLUDING TRANSFERS OF FUNDS)—Continued

Program and Financing (in millions of dollars)—Continued
1996 actual

Identification code 12–1600–0–1–352

24.40

Unobligated balance available, end of year:
Uninvested balance ...................................................

–15

1997 est.

–16

1998 est.

–14

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
332
337
324
40.20
Appropriation (special fund, definite) ....................... ...................
98
100
40.25
Appropriation (special fund, indefinite) ....................
118 ................... ...................
43.00
60.25
68.00

Appropriation (total) .............................................
450
Permanent:
Appropriation (special fund, indefinite) .................... ...................
Spending authority from offsetting collections: Offsetting collections (cash) .....................................
39

435

424

Total new budget authority (gross) ..........................

489

512

508

61
516
–508

69
554
–485

138
506
–509

138

135

Outlays (gross), detail:
Outlays from new current authority ..............................
433
366
Outlays from current balances ......................................
40
47
Outlays from new permanent authority .........................
35
72
Outlays from permanent balances ................................ ................... ...................

357
69
78
5

70.00

72.40

86.90
86.93
86.97
86.98
87.00

Total outlays (gross) .................................................

508

485

509

–5
–34

–5
–37

–5
–38

88.90

Total, offsetting collections (cash) ..................

–39

–42

–43

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

450
467

470
443

465
466

also certifies plants and plant products for export and regulates imports and exports of designated endangered plant species. User fees have been implemented to recover the cost
of certain agricultural quarantine inspection services.
Plant and animal health monitoring.—The Agency conducts
programs to assess animal and plant health and to detect
endemic and exotic diseases and pests. The plant and animal
health monitoring programs are primarily cooperative efforts
of the Federal and State governments, and industry. The
Agency also carries out surveys in cooperation with the States
to detect harmful plant and animal pests and diseases and
to determine if there is a need for pest eradication programs.
Pest and disease management programs.—The Agency carries out programs to control and eradicate infestations and
animal diseases that threaten the United States; to reduce
agricultural losses caused by predatory animals, birds, and
rodents; to provide technical assistance to States, counties,
farmer or rancher groups, and foundations; and to ensure
compliance with interstate movement and disease control regulations. Interstate shipments of plants, livestock, and related
materials are monitored and regulated to prevent the spread
of disease. APHIS protects agriculture from detrimental animal predators through identification, demonstration, and application of the most appropriate methods of control.
Animal care.—The Agency conducts regulatory activities
which ensure the humane care and handling of animals used
in research, exhibition, or the wholesale pet trade. The Agency is also responsible for administering the Horse Protection
Act, which prohibits the showing, selling, or exhibition of
sore horses.
Scientific and technical services.—APHIS develops methods
to control animals and pests that are detrimental to agriculture, other wildlife, and public safety. The agency regulates
genetic research to guard against the release of potentially
harmful organisms into the environment. APHIS also conducts veterinary diagnostic laboratory activities and biologic
regulatory enforcement to ensure that the products developed
for combatting disease are potent, safe, and pure. It also
provides and directs technology development in coordination
with other groups in APHIS and Plant Protection and Quarantine (PPQ) officials to support PPQ programs of the Agency
and its cooperators at the State, national, and international
levels.
Object Classification (in millions of dollars)
Identification code 12–1600–0–1–352

Summary of Budget Authority and Outlays
(in millions of dollars)

Enacted/requested:
1996 actual
1997 est.
Budget Authority .....................................................................
450
470
Outlays ....................................................................................
467
443
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

450
467

470
443

1998 est.

465
466

11.1
11.3
11.5

–10
–10

11.9
12.1
13.0
21.0
22.0
23.2
23.3

455
456

The major objectives of the Animal and Plant Health Inspection Service (APHIS) are to protect the animal and plant
resources of the Nation from destructive pests and diseases.
This mission is carried out under the five major areas of
activity, as follows:
Pest and disease exclusion.—The agency conducts inspection
and quarantine activities at U.S. ports-of-entry to prevent
the introduction of exotic animal and plant diseases and
pests. APHIS develops and conducts preclearance programs
to ensure that agricultural products destined for U.S. portsof-entry do not present a risk to U.S. agriculture. APHIS
engages in cooperative programs in foreign countries to control pests of imminent concern to the United States. APHIS

1996 actual

1997 est.

1998 est.

220
20
12

249
16
12

238
16
11

252
55
1
17
6
4

277
57
1
13
5
4

265
52
1
11
4
3

16
1
46
28
21

18
1
59
26
24

16
1
50
18
18

2
17
3
3

1
17
2
2

1
15
2
2

42.0
42.0
42.0

Total personnel compensation .........................
Civilian personnel benefits .......................................
Benefits for former personnel ...................................
Travel and transportation of persons .......................
Transportation of things ...........................................
Rental payments to others ........................................
Communications, utilities, and miscellaneous
charges .................................................................
Printing and reproduction .........................................
Other services ............................................................
Supplies and materials .............................................
Equipment .................................................................
Grants, subsidies, and contributions:
Mexican-United States Commission for the prevention of foot-and-mouth disease .................
Joint Screwworm eradication programs ................
Joint Commission on the Mediterranean fruit fly
Grants, subsidies, and contributions-Other .........
Insurance claims and indemnities:
Brucellosis .............................................................
Scrapie of sheep ...................................................
Tuberculosis ..........................................................

3
1
1

2
1
1

99.0

Subtotal, direct obligations ..................................

477

512

463

24.0
25.2
26.0
31.0
41.0
41.0
41.0
41.0

ANIMAL AND PLANT HEALTH INSPECTION SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
99.0

Reimbursable obligations ..............................................

99.9

Total obligations ........................................................

516

554

506

Personnel Summary
1996 actual

Identification code 12–1600–0–1–352

Direct:
Total compensable workyears:
1001
Full-time equivalent employment ..............................
1005
Full-time equivalent of overtime and holiday hours
1011
Exempt Full-time equivalent employment .................
Reimbursable:
Total compensable workyears:
2001
Full-time equivalent employment ..............................
2005
Full-time equivalent of overtime and holiday hours

SALARIES

AND

1997 est.

3,823
156
1,970

3,906
156
2,140

341
260

345
260

1998 est.

3,604
156
2,098

340
260

(Legislative proposal, not subject to PAYGO)

1996 actual

1997 est.

...................
...................
...................
...................
...................

–1
–1
–3
–1
–4

Total direct program ............................................. ................... ...................
Reimbursable program .................................................. ................... ...................

–10
10

Obligations by program activity:
Direct program:
00.01
Swine health protection ............................................
00.02
Pink bollworm ............................................................
00.03
Animal welfare ..........................................................
00.04
Biotechnology .............................................................
00.05
Veterinary biologics ...................................................
00.91
01.01

Object Classification (in millions of dollars)

1998 est.

1996 actual

Identification code 12–1600–2–1–352

11.1
11.3

99.0
99.0

Program and Financing (in millions of dollars)
Identification code 12–1600–2–1–352

et amendment to the current appropriations language will
be proposed to make the fees available for expenditure. Because the current requirements of the Budget Enforcement
Act of 1990 make it difficult to fund discretionary programs
with receipts that are not authorized in appropriations acts,
the Administration is proposing a change in the requirements
to facilitate the enactment of proposals such as this one.

11.9
12.1
21.0
25.2
26.0

EXPENSES

147

99.9

1997 est.

1998 est.

Direct obligations:
Personnel compensation:
Full-time permanent ............................................. ................... ...................
Other than full-time permanent ........................... ................... ...................
Total personnel compensation .........................
Civilian personnel benefits .......................................
Travel and transportation of persons .......................
Other services ............................................................
Supplies and materials .............................................

...................
...................
...................
...................
...................

–5
–1

...................
...................
...................
...................
...................

–6
–1
–1
–1
–1

–10
10

Total obligations ........................................................ ................... ................... ...................

Personnel Summary

10.00

1997 est.

1998 est.

Direct:
1001 Total compensable workyears: Full-time equivalent
employment ............................................................... ................... ...................
Reimbursable:
2001 Total compensable workyears: Full-time equivalent
employment ............................................................... ................... ...................

Budgetary resources available for obligation:
New obligations ............................................................. ................... ................... ...................

–167

167

Total obligations ........................................................ ................... ................... ...................

23.95

1996 actual

Identification code 12–1600–2–1–352

New budget authority (gross), detail:
Current:
40.00
Appropriation ............................................................. ................... ...................
Permanent:
68.00
Spending authority from offsetting collections: Offsetting collections (cash) ..................................... ................... ...................

73.10

Change in unpaid obligations:
New obligations ............................................................. ................... ................... ...................

Outlays (gross), detail:
86.90 Outlays from new current authority .............................. ................... ...................
86.97 Outlays from new permanent authority ......................... ................... ...................
87.00

–10

BUILDINGS

FACILITIES

Program and Financing (in millions of dollars)
Identification code 12–1601–0–1–352

–10
10

Total outlays (gross) ................................................. ................... ................... ...................

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Total obligations ............................................................

31
9

27
3

3
7

40
–13

30
–27

10
–8

12
13
–12

14
27
–16

25
8
–18

10.00

21.40

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources .................................................................. ................... ...................

–10

–10
–10

89.00
90.00

AND

For plans, construction, repair, preventive maintenance, environmental support, improvement, extension, alteration, and purchase of
fixed equipment or facilities, as authorized by 7 U.S.C. 2250, and
acquisition of land as authorized by 7 U.S.C. 428a, ø$3,200,000¿
$7,200,000, to remain available until expended. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 1997.)

Legislation will be proposed to establish user fees for
APHIS’ costs for animal welfare inspections, such as for animal research centers, humane societies, and kennels; for the
issuance of biotechnology certificates; for veterinary biologics
licensing, inspections, and testing activities; for activities associated with the control and or eradication of pink bollworm;
and inspections of facilities to comply with the garbage cooking requirements of the Swine Health Protection Act.
This is one of several proposals in the budget to charge
fees to users directly availing themselves of, or subject to,
a government service, program, or activity, in order to cover
the government’s costs. Legislation will be proposed to authorize the fees and, upon enactment of the authorization, a budg-

23.90
23.95
24.40

40.00

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

4
8

1
15

2
16

87.00

Total outlays (gross) .................................................

148

ANIMAL AND PLANT HEALTH INSPECTION SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
73.20

AND

–7

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

6
1

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

7
8

7
7

Distribution of budget authority by account:
Expenses, feed, and attendants for animals in quarantine
Miscellaneous contributed funds ............................................

1
6

Distribution of outlays by account:
Expenses, feed, and attendants for animals in quarantine
Miscellaneous contributed funds ............................................

1
7

FACILITIES—Continued

Program and Financing (in millions of dollars)—Continued
1996 actual

Identification code 12–1601–0–1–352

89.00
90.00

–7

87.00

BUILDINGS

Total outlays (gross) ......................................................

86.97
86.98

General and special funds—Continued

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

9
12

1997 est.

1998 est.

3
16

7
18

The buildings and facilities fund provides for construction,
repairs, preventive maintenance, and alterations, as needed,
for APHIS operated facilities, which include animal quarantine stations, border inspection stations, sterile insect
rearing facilities, and laboratories.
The 1998 budget proposes $7.2 million for this program,
which consists of $4.0 million for repairs, alterations, preventive maintenance, and renovations for currently owned APHIS
facilities, and $3.2 million for the modernization of the Plum
Island, New York, Animal Disease Center.
Object Classification (in millions of dollars)
1996 actual

Identification code 12–1601–0–1–352

1997 est.

1998 est.

25.2
32.0

Other services ................................................................
Land and structures ......................................................

8
5

8
19

4
4

99.9

Total obligations ........................................................

Trust Funds
MISCELLANEOUS TRUST FUNDS

The following services are financed by fees and miscellaneous contributions advanced by importers, manufacturers,
States, organizations, individuals, and others:
Expenses, feed, and attendants for animals in quarantine.—
All costs associated with the quarantine of animals are paid
from fees advanced by importers (21 U.S.C. 102).
Miscellaneous contributed funds.—Funds are received from
States, local organizations, individuals, and others and are
available for plant and animal quarantine inspection and cooperative plant and animal disease and pest control activities
(7 U.S.C. 450b, 2220). Commencing in 1979, fees were collected for the importation of commercial birds.
Balance Sheet (in millions of dollars)

Unavailable Collections (in millions of dollars)
1996 actual

Balance, start of year:
Balance, start of year .................................................... ...................
Receipts:
02.02 Miscellaneous contributed funds ...................................
8
02.03 Fees for feed and attendants for animals in quarantine ........................................................................ ...................
01.99

02.99

1995 actual

1996 actual

1999

1997 est.

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................
Total assets ........................................
LIABILITIES:
2101 Federal liabilities: Accounts payable ......

2999

Identification code 12–9971–0–7–352

1998 est.

1997 est.

Total receipts .............................................................

Total: Balances and collections ....................................
Appropriation:
05.01 Miscellaneous trust funds .............................................
07.99 Total balance, end of year ............................................

–7
1

04.00

Identification code 12–9971–0–7–352

1996 actual

1997 est.

1
6

10.00

23.90
23.95
24.40

New budget authority (gross), detail:
60.27 Appropriation (trust fund, indefinite) ............................
Change in unpaid obligations:
73.10 New obligations .............................................................

3999

Total net position ................................

Total liabilities and net position ............

Object Classification (in millions of dollars)

1
6

1998 est.

Obligations by program activity:
00.02 Expenses, feed, and attendants for animals in quarantine ........................................................................
00.03 Miscellaneous contributed funds ...................................
Total obligations ........................................................

4999

Program and Financing (in millions of dollars)

Total liabilities ....................................
NET POSITION:
3600 Other ........................................................

1996 actual

Identification code 12–9971–0–7–352

4
7

11
–7

1
2

11.9
12.1
21.0
25.2

3
1
1
2

99.9

Total obligations ........................................................

Personnel Summary
Identification code 12–9971–0–7–352

1998 est.

11.1
11.5

1997 est.

Personnel compensation:
Full-time permanent ..................................................
Other personnel compensation ..................................

1001
1005

Total compensable workyears:
Full-time equivalent employment ..................................
Full-time equivalent of overtime and holiday hours

1996 actual

53
6

1997 est.

53
6

1998 est.

53
6

FOOD SAFETY AND INSPECTION SERVICE
Federal Funds

DEPARTMENT OF AGRICULTURE
90.00

FOOD SAFETY AND INSPECTION SERVICE
Federal Funds
EXPENSES

Program and Financing (in millions of dollars)
Identification code 12–3700–0–1–554

1996 actual

1997 est.

1998 est.

00.01
01.01

Obligations by program activity:
Direct program ...............................................................
Reimbursable program ..................................................

544
81

575
84

591
90

10.00

Total obligations ........................................................

625

659

681

572

591

(in millions of dollars)

AND

For necessary expenses to carry on services authorized by the Federal Meat Inspection Act, as amended, the Poultry Products Inspection Act, as amended, and the Egg Products Inspection Act, as
amended, ø$574,000,000¿ $591,209,000, and in addition, $1,000,000
may be credited to this account from fees collected for the cost of
laboratory accreditation as authorized by section 1017 of Public Law
102–237: Provided, That this appropriation shall not be available
for shell egg surveillance under section 5(d) of the Egg Products
Inspection Act (21 U.S.C. 1034(d)): Provided further, That this appropriation shall be available for field employment pursuant to section
706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed
$75,000 shall be available for employment under 5 U.S.C. 3109: Provided further, That this appropriation shall be available pursuant
to law (7 U.S.C. 2250) for the alteration and repair of buildings
and improvements, but the cost of altering any one building during
the fiscal year shall not exceed 10 percent of the current replacement
value of the building. (7 U.S.C. 450, 1901–06; 10 U.S.C. 2306; 18
U.S.C. 1114; 21 U.S.C. 451–470, 601–624, 641–645, 661, 671–680,
691–692; 694–695; Public Law 99–641; Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)

23.90
23.95
24.40

533

Summary of Budget Authority and Outlays

General and special funds:
SALARIES

Outlays ...........................................................................

149

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

626
–625

1 ...................
658
681
659
–659

681
–681

1 ................... ...................

545

574

591

626

658

681

72.40

25
36
39
625
659
681
–614
–656
–681
–1 ................... ...................
36

86.90
86.93
86.97

513
20
81

537
35
84

559
32
90

87.00

Total outlays (gross) .................................................

614

656

681

–1
–83

–1
–89

88.90

Total, offsetting collections (cash) ..................

–81

–84

–90

89.00

Net budget authority and outlays:
Budget authority ............................................................

545

574

591

Enacted/requested:
1996 actual
1997 est.
Budget Authority .....................................................................
545
574
Outlays ....................................................................................
533
572
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

545
533

574
572

1998 est.

591
591
–390
–390
201
201

The primary objectives of the Food Safety and Inspection
Service are to ensure that meat, poultry, and egg products
are wholesome, unadulterated, and properly labeled and
packaged, as required by the Federal Meat Inspection Act,
the Poultry Products Inspection Act, and the Egg Products
Inspection Act.
The meat, poultry, and egg products inspection program
of the Food Safety and Inspection Service provides in-plant
inspection of all domestic plants preparing meat, poultry, or
egg products for sale or distribution; reviews foreign inspection systems and establishments that prepare meat, poultry,
or egg products for export to the United States; and provides
technical and financial assistance to States which maintain
meat and poultry inspection programs.
In 1998, the Administration is proposing a new user fee
to offset the cost of Federal meat, poultry, and egg inspection.
The proposal would require industry to reimburse the government for the salaries, benefits and related costs associated
with in-plant inspection. This proposal would ensure that sufficient resources are available to provide the level of in-plant
inspection necessary to meet the demands of the industry.
The Federal government would continue to fund critical food
safety activities, such as microbiological testing, technology
development, and an emergency response function.
FEDERALLY FUNDED INSPECTION ACTIVITIES
Federally inspected establishments:
1996 actual
Slaughter plants .....................................................................
297
Processing plants ...................................................................
4,402
Combination slaughter and processing plants ......................
996
Talmadge-Aiken plants ...........................................................
245
Import establishments ............................................................
162
Egg plants ..............................................................................
78
Federally inspected and passed production (millions of
pounds):
Meat slaughter ........................................................................
44,689
Poultry slaughter .....................................................................
43,572
Egg products ...........................................................................
2,980
N/A
Product inspected and passed under HACCP system: a ........
Import/export activity (millions of pounds):
Meat and poultry imported .....................................................
2,361
Meat and poultry exported ......................................................
7,500
States and territories with cooperative programs: b
Intrastate inspection ...............................................................
26
Talmadge-Aiken inspection .....................................................
9
Number of slaughter and/or processing plants (excludes
exempt plants) ...................................................................
2,868
Pounds inspected slaughter (millions) ...................................
1,150
Compliance activities:
Marketplace reviews ............................................................... ....................
Corrective action reviews ........................................................
31,099
Corrective actions completed .................................................
472
Product Testing (samples analyzed):
Food chemistry ........................................................................
22,862
Food microbiology ...................................................................
26,538
Chemical residues ..................................................................
69,103
Antibiotic residues ..................................................................
173,592
Pathology samples ..................................................................
6,467
Serology samples ....................................................................
3,981
Egg Products:
Food chemistry ........................................................................ ....................
Food microbiology ...................................................................
2,009
Chemical residues ..................................................................
140
Consumer Education and public outreach:
Meat and Poultry Hotline Calls received ................................
110,000

1997 est.

1998 est.

279
4,364
981
231
150
81

262
4,327
966
215
150
82

45,011
44,262
3,140
N/A

45,461
45,147
3,300
66,525

2,400
8,200

2,600
10,000

26
9

2,852
1,210

2,844
1,330

20,000
50,0000
500

c 101,000

23,000
177,000
60,000
174,000
6,500
3,500

23,000
252,000
60,000
174,000
6,500
3,500

200
3,000
350

300
6,000
300

110,000

50,000
600

FOOD SAFETY AND INSPECTION SERVICE—Continued
Federal Funds—Continued

150

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
SALARIES

AND

EXPENSES—Continued

FEDERALLY FUNDED INSPECTION ACTIVITIES—Continued
Epidemiological Investigations:
Cooperative efforts with State and public health offices
Illnesses reported and treated d .............................................
Field Automation and Information Management Project (cumulative):
Number of computers provided to field inspection staff

1996 actual

1997 est.

50
N/A

1,103

60
N/A

1,917

1998 est.

60
N/A

2,708

data will be based on meat and poultry slaughter operations and reflect output of large establishments
required to produce under HACCP systems within 18 months of the July 25, 1996 publication of the HACCP
final rule.
b States with cooperative agreements which are operating programs.
c Includes retail inspection audits and State assist activities—1,000; and marketplace sampling, testing, reviewing
and evaluation—100,000.
d By the end of 1997, the sentinel site survey will have the baseline data necessary to estimate the incidence
of foodborne illness and treatment.

73.10
73.20

–390

390

Change in unpaid obligations:
New obligations ............................................................. ................... ................... ...................
Total outlays (gross) ...................................................... ................... ................... ...................

a Production

–390

–390
–390

Object Classification (in millions of dollars)
1996 actual

Identification code 12–3700–0–1–554

11.1
11.3
11.5
11.9
12.1
13.0
21.0
22.0
23.2
23.3

25.4
26.0
31.0
41.0
99.0
99.0
99.5

340
18
16

365
93
1
23
2
1

374
95
1
23
3
1

5
2
1
9

5
2
1
15

5
2
2
15

4
3
5
8
41

4
3
6
12
42

4
3
6
12
43

543
575
80
84
2 ...................

589
90
2

625

Total obligations ........................................................

331
18
16

350
90
1
21
2
1

99.9

1998 est.

321
15
14

Total personnel compensation .........................
Civilian personnel benefits .......................................
Benefits for former personnel ...................................
Travel and transportation of persons .......................
Transportation of things ...........................................
Rental payments to others ........................................
Communications, utilities, and miscellaneous
charges .................................................................
Printing and reproduction .........................................
Advisory and assistance services .............................
Other services ............................................................
Purchases of goods and services from Government
accounts ................................................................
Operation and maintenance of facilities ..................
Supplies and materials .............................................
Equipment .................................................................
Grants, subsidies, and contributions ........................

24.0
25.1
25.2
25.3

1997 est.

681

659

89.00
90.00

Legislation will be proposed to charge fees for the salaries,
benefits and related costs associated with in-plant inspection
of meat, poultry, and egg products at all establishments inspected by the Food Safety and Inspection Service (FSIS).
Currently, fees to reimburse the cost of overtime inspection
are required at some FSIS-inspected establishments, but not
at others. The Federal government would continue to fund
salaries, benefits and related costs associated with in-plant
emergency response function.
This is one of several proposals in the budget to charge
fees to users directly availing themselves of, or subject to,
a government service, program, or activity, in order to cover
the government’s costs. Legislation will be proposed to authorize the fees and, upon enactment of the authorization, a budget amendment to the current appropriations language will
be proposed to make the fees available for expenditure. Because the current requirements of the Budget Enforcement
Act of 1990 make it difficult to fund discretionary programs
with receipts that are not authorized in appropriations acts,
the Administration is proposing a change in the requirements
to facilitate the enactment of proposals such as this one.
Object Classification (in millions of dollars)

Personnel Summary
1996 actual

Identification code 12–3700–2–1–554
1996 actual

Identification code 12–3700–0–1–554

1997 est.

1998 est.

..............................
and holiday hours

9,470
129

9,623
129

9,607
129

..............................
and holiday hours

242
1,126

276
1,240

246
1,240

SALARIES

AND

EXPENSES

11.1
11.3
11.5

–277
–15
–14

11.9
12.1

Total personnel compensation ......................... ................... ...................
Civilian personnel benefits ....................................... ................... ...................

–306
–84

99.0
99.0

Direct:
Total compensable workyears:
1001
Full-time equivalent employment
1005
Full-time equivalent of overtime
Reimbursable:
Total compensable workyears:
2001
Full-time equivalent employment
2005
Full-time equivalent of overtime

–390
390

99.9

Total obligations ........................................................ ................... ................... ...................

(Legislative proposal, not subject to PAYGO)
Personnel Summary

Program and Financing (in millions of dollars)
Identification code 12–3700–2–1–554

00.01
01.01

1996 actual

1997 est.

Obligations by program activity:
Direct program ............................................................... ................... ...................
Reimbursable program .................................................. ................... ...................

1998 est.

–390
390

10.00

Total obligations ........................................................ ................... ................... ...................

23.95

Budgetary resources available for obligation:
New obligations ............................................................. ................... ................... ...................

Identification code 12–3700–2–1–554

1996 actual

1997 est.

1998 est.

.............................. ................... ...................
and holiday hours ................... ...................

–7,940
–128

.............................. ................... ...................
and holiday hours ................... ...................

7,940
128

GRAIN INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION
Federal Funds

DEPARTMENT OF AGRICULTURE
Trust Funds
EXPENSES

AND

REFUNDS, INSPECTION
PRODUCTS

AND

GRADING

GRAIN INSPECTION, PACKERS AND
STOCKYARDS ADMINISTRATION

FARM

Federal Funds
General and special funds:

Unavailable Collections (in millions of dollars)
1996 actual

Identification code 12–8137–0–7–352

1997 est.

SALARIES

1998 est.

Balance, start of year:
01.99 Balance, start of year .................................................... ................... ................... ...................
Receipts:
02.01 Fees for inspection and grading of farm products
4
5
5
Appropriation:
05.01 Expenses and refunds, inspection and grading of
farm products ............................................................
–4
–5
–5
07.99 Total balance, end of year ............................................ ................... ................... ...................

Program and Financing (in millions of dollars)
1996 actual

Identification code 12–8137–0–7–352

151

1997 est.

1998 est.

10.00

Obligations by program activity:
Total obligations ............................................................

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

4
–4

5
–5

60.27

New budget authority (gross), detail:
Appropriation (trust fund, indefinite) ............................

EXPENSES

For necessary expenses to carry out the provisions of the United
States Grain Standards Act, as amended, for the administration of
the Packers and Stockyards Act, for certifying procedures used to
protect purchasers of farm products, and the standardization activities related to grain under the Agricultural Marketing Act of 1946,
as amended, including field employment pursuant to section 706(a)
of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed $25,000
for employment under 5 U.S.C. 3109, ø$23,128,000¿ $25,722,000: Provided, That this appropriation shall be available pursuant to law
(7 U.S.C. 2250) for the alteration and repair of buildings and improvements, but the cost of altering any one building during the fiscal
year shall not exceed 10 percent of the current replacement value
of the building. (7 U.S.C. 71, 74–79, 84–87, 181–229, 1621–27; Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)

22.00
23.95

AND

Program and Financing (in millions of dollars)
1996 actual

Identification code 12–2400–0–1–352

1997 est.

1998 est.

4
–4

5
–5

86.97

Outlays (gross), detail:
Outlays from new permanent authority .........................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

4
4

5
5

Under authority of the Agricultural Marketing Act of 1946,
Federal meat and poultry inspection services are provided
upon request and for a fee in cases where inspection is not
mandated by statute. This service includes: certifying products for export beyond the requirements of export certificates;
inspecting certain animals and poultry intended for human
food where inspection is not required by statute, such as
buffalo, rabbit, and quail; and inspecting products intended
for animal consumption.

Obligations by program activity:
Standardization ..............................................................
Compliance ....................................................................
Methods Development ....................................................
Packers and Stockyard Program ....................................

4
4
3
12

4
4
3
15

10.00
Change in unpaid obligations:
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................

00.01
00.02
00.03
00.04

Total obligations ........................................................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

23
–23

26
–26

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

3
23
–22

4
23
–23

4
26
–26

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

20
2

20
3

23
3

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

23
22

23
23

26
26

Object Classification (in millions of dollars)
1996 actual

Identification code 12–8137–0–7–352

1997 est.

Summary of Budget Authority and Outlays

1998 est.

(in millions of dollars)

11.1
11.5

Personnel compensation:
Full-time permanent ..................................................
Other personnel compensation ..................................

2
1

11.9
12.1
99.5

Total personnel compensation ..............................
3
Civilian personnel benefits ............................................
1
Below reporting threshold .............................................. ...................

3
1
1

99.9

Total obligations ........................................................

Personnel Summary
Identification code 12–8137–0–7–352

1001
1005

Total compensable workyears:
Full-time equivalent employment ..................................
Full-time equivalent of overtime and holiday hours

1996 actual

46
17

1997 est.

52
17

1998 est.

47
17

Enacted/requested:
1996 actual
1997 est.
Budget Authority .....................................................................
23
23
Outlays ....................................................................................
22
23
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

23
22

23
23

1998 est.

26
26
–16
–16
10
10

The Grain Inspection, Packers and Stockyards Administration (GIPSA) establishes official United States standards for
grain, promotes the uniform application thereof by official
inspection personnel, provides for an official inspection system
for grain, and regulates the weighing and certification of the
weight of grain shipped in interstate or foreign commerce

152

GRAIN INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
SALARIES

AND

EXPENSES—Continued

as authorized by the U.S. Grain Standards Act (USGSA),
as amended, and the regulations thereof, and the Agricultural
Marketing Act of 1946 (AMA).
Standardization activities include establishing and updating
U.S. grain standards, research, and developing and improving
methods to ensure the accurate and uniform application of
the standards.
The compliance activities ensure the accurate and uniform
application of the USGSA and applicable provisions of the
AMA. The compliance program functions include: (1) evaluating alleged violations and initiating preliminary investigations; (2) initiating the implementation of corrective actions;
(3) conducting management and technical reviews; (4) administering the designations and delegations of State and private
agencies to perform official functions and monitoring the performance of the agencies; (5) identifying and, where appropriate, waiving and monitoring conflicts of interest; (6) licensing personnel of delegated States and designated agencies;
(7) registering persons/firms engaged in the business of buying grain for sale in foreign commerce, and in the business
of handling, weighing, or transporting of grain for sale in
foreign commerce; (8) responding to audits of Grain Inspection
programs; and (9) reviewing and, when appropriate, approving official agencies’ fee schedules.
The International Monitoring Staff briefs foreign buyers,
assesses foreign inspection and weighing techniques, and responds to foreign quality and quantity complaints.
An advisory committee consisting of members from the
grain industry exists to advise the Agency regarding efficient
and economical implementation of the USGSA.
The Grain Quality Improvement Act of 1986 was enacted
on November 10, 1986, to improve the quality of U.S. grain
by prohibiting the introduction and reintroduction of dockage
and foreign material to grain.
For 1998, authorizing legislation will be submitted to permit, subject to appropriations, the collection and use of fees
to cover the cost of standardization activities.
The goal of the Packers and Stockyards program is to ensure the integrity of the livestock, meat, and poultry markets
and the marketplace in order to protect producers against
unfair, deceptive, or discriminatory practices as well as those
that are predatory or monopolistic in nature. Consumers and
members of the livestock, poultry, and meat industries are
also protected against unfair business practices in the marketing of livestock, meat and poultry, and from restrictions on
competition which could unduly affect prices. The Agency also
carries out the Secretary’s responsibilities under Section 1324
of the Food Security Act of 1985 covering ‘‘central filing systems’’ established by States for pre-notification of security
interests against farm products.
Authorizing legislation will be submitted that would establish a license fee that, subject to appropriations, would allow
the collection and expenditure of funds for all costs associated
with administering the Packers and Stockyards Act. Authorizing legislation will also be submitted to establish a Dealers
Trust. This would require livestock inventories and accounts
receivable due from the sale of livestock to be held in trust
for unpaid cash sellers at a time of financial failure.
MAIN WORKLOAD FACTORS
1996 actual

U.S. standards in effect at end of year .....................................
Standards reviews in progress ...................................................
Standards reviews completed .....................................................
Inspection techniques developed ................................................
On-site investigations .................................................................
Designations renewed .................................................................
Registration certificates issued ..................................................
Investigations ..............................................................................

19
7
4
8
10
20
87
2,265

1997 est.

19
7
3
2
12
21
90
2,000

1998 est.

19
3
3
2
14
22
90
1,900

Market agencies/dealers registered ............................................
Stockyards posted .......................................................................
Slaughtering and processing packers subject to the Act (estimated) .....................................................................................
Distributors, brokers, and dealers subject to the Act (estimated) .....................................................................................
Poultry operations subject to the Act .........................................

6,988
1,348

6,950
1,325

6,900
1,300

6,000

6,500
224

6,500
225

6,400
225

Object Classification (in millions of dollars)
1996 actual

Identification code 12–2400–0–1–352

1997 est.

1998 est.

11.1
12.1
21.0
23.3
25.2
31.0

Personnel compensation: Full-time permanent .............
Civilian personnel benefits ............................................
Travel and transportation of persons ............................
Communications, utilities, and miscellaneous charges
Other services ................................................................
Equipment ......................................................................

14
3
1
1
3
1

15
3
2
1
4
1

99.9

Total obligations ........................................................

Personnel Summary
1996 actual

Identification code 12–2400–0–1–352

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

SALARIES

AND

1997 est.

318

351

1998 est.

374

EXPENSES

(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
Identification code 12–2400–2–1–352

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Direct program:
00.01
Standardization ......................................................... ................... ...................
00.04
Packers and Stockyards Program ............................. ................... ...................
00.05
Start Up Costs ........................................................... ................... ...................

–4
–15
3

00.91
01.01

Total direct program ............................................. ................... ...................
Reimbursable ................................................................. ................... ...................

–16
19

10.00

Total obligations ........................................................ ................... ...................

22.00
23.95

3
–3

–16

70.00

Total new budget authority (gross) .......................... ................... ...................

73.10
73.20

3
–3

86.90
86.93
86.97
86.98

87.00

...................
...................
...................
...................

...................
–16
................... ...................
...................
19
................... ...................

Total outlays (gross) ................................................. ................... ...................

–19

–16
–16

89.00
90.00

Legislation will be proposed to establish a fee for the standardization activities of the Grain Inspection, Packers and

GRAIN INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE

Stockyards Administration, a licensing fee to cover the costs
of administering meat packing and stockyard activities, and
a statutory dealers trust.
This is one of several proposals in the budget to charge
fees to users directly availing themselves of, or subject to,
a government service, program, or activity, in order to cover
the government’s costs. Legislation will be proposed to authorize the fees and, upon enactment of the authorization, a budget amendment to the current appropriations language will
be proposed to make the fees available for expenditure. Because the current requirements of the Budget Enforcement
Act of 1990 make it difficult to fund discretionary programs
with receipts that are not authorized in appropriations acts,
the Administration is proposing a change in the requirements
to facilitate the enactment of proposals such as this one.

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................
72.90

1996 actual

1997 est.

1998 est.

25.2

................... ...................
................... ...................

–1
–4

99.0
99.0

–16
19

99.9

Total obligations ........................................................ ................... ...................

11.1
12.1
21.0
23.3

................... ...................
................... ...................
................... ...................

–8
–2
–1

Personnel Summary
1996 actual

Identification code 12–2400–2–1–352

1997 est.

1998 est.

–275

275

2
43
–43

87.00

Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

–31

–43

31
43
43
4 ................... ...................

The Grain Inspection, Packers and Stockyards Administration (GIPSA) provides a uniform system for the inspection
and weighing of grain. Services provided under this system
are financed through a fee supported revolving fund. This
authority has been extended through September 2000.
Fee supported programs include direct services, supervision
activities and administrative functions. Direct services include
official grain inspection and weighing by GIPSA employees
at certain export ports as well as the inspection of U.S. grain
shipped through Canada. The Agency supervises the inspection and weighing activities performed by its own employees.
The agency also oversees the inspection and weighing of grain
performed by employees of 8 delegated States and 57 designated State and private agencies. The Agency provides an
appeal service of original grain inspections and a registration
system for grain exporting firms. Through support from the
Association of American Railroads and user fees, GIPSA conducts a railroad track scale testing program. In addition, the
agency provides grading services, on request, for rice and
grain related products under the authority of the Agricultural
Marketing Act of 1946 (AMA).

Public enterprise funds:
INSPECTION

2
43
–43

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

89.00
90.00

3
34
–35

86.97
86.98

Object Classification (in millions of dollars)
Identification code 12–2400–2–1–352

1996 actual
AND

WEIGHING SERVICES

LIMITATION ON INSPECTION AND WEIGHING SERVICE EXPENSES

Not to exceed ø$43,207,000¿ $43,092,000 (from fees collected) shall
be obligated during the current fiscal year for inspection and weighing services: Provided, That if grain export activities require additional supervision and oversight, or other uncontrollable factors occur,
this limitation may be exceeded by up to 10 percent with notification
to the Appropriations Committees. (7 U.S.C. 71, 74–79, 84–87, 1621–
27; Agriculture, Rural Development, Food and Drug Administration,
and Related Agencies Appropriations Act, 1997.)

Export grain inspected and/or weighed (million metric tons):
By Federal personnel ..............................................................
By delegated States ................................................................
Quantity of grain inspected (all official inspections) million
metric tons ..............................................................................
Number of inspections and reinspections:
By Federal personnel ..............................................................
By delegated state/official agency licenses ...........................
Number of appeals ......................................................................
Number of appeals carried to the Board of Appeals and Review .........................................................................................
Quantity of rice inspected (million metric tons) ........................
Quantity of rice exports (million metric tons) ............................

Program and Financing (in millions of dollars)
Identification code 12–4050–0–3–352

1996 actual

1997 est.

1998 est.

89.9
24.6

90.0
24.6

91.2
24.7

134.7

144.0

146.8

158,055
2,149,516
6,800

165,000
2,235,000
6,800

172,000
2,328,000
6,800

1,006
3.8
3.0

1,000
3.7
2.3

1,000
4.0
2.8

Statement of Operations (in millions of dollars)
1997 est.

1998 est.
Identification code 12–4050–0–3–352

Obligations by program activity:
10.00 Total obligations ............................................................

153

1995 actual

1996 actual

1997 est.

1998 est.

0101
0102

Revenue ...................................................
Expense ....................................................

34
–36

31
–34

43
–43

0109

Net income or loss (–) ............................

–2

–3

..................

1997 est.

1998 est.

21.90

23.90
23.95
24.90

68.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................
New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

6
31

3
43

37
–34

46
–43

Balance Sheet (in millions of dollars)
Identification code 12–4050–0–3–352

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....
1803 Other Federal assets: Property, plant
and equipment, net ............................

1995 actual

1996 actual

5
4

1
4

2
4

3
4

1101

1999

Total assets ........................................

154

GRAIN INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

Continued

penses: Provided, That if crop size is understated and/or other uncontrollable events occur, the agency may exceed this limitation by up
to 10 percent with notification to the Appropriations Committees.
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 1997.)

Balance Sheet (in millions of dollars)—Continued

Program and Financing (in millions of dollars)

Public enterprise funds—Continued
INSPECTION

AND

WEIGHING SERVICES—Continued

LIMITATION ON INSPECTION AND WEIGHING SERVICE EXPENSES—

Identification code 12–4050–0–3–352

1995 actual

1996 actual

1997 est.

1998 est.

LIABILITIES:
Non-Federal liabilities:
2201
Accounts payable ................................
2207
Other ...................................................

..................
3

1
2

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
3300 Cumulative results of operations ............

2
5

8
–5

2
2

2
3

3999

Total net position ................................

4999

Total liabilities and net position ............

Identification code 12–2500–0–1–352

1996 actual

1997 est.

1998 est.

1996 actual

Identification code 12–4050–0–3–352

1997 est.

11.9
12.1
21.0
23.1
23.3
25.2
26.0
99.0
99.5

Total personnel compensation ..............................
22
27
27
Civilian personnel benefits ............................................
4
5
5
Travel and transportation of persons ............................
1
1
1
Rental payments to GSA ................................................ ...................
1
1
Communications, utilities, and miscellaneous charges
1
1
1
Other services ................................................................
4
7
7
Supplies and materials .................................................
1
1
1
Subtotal, reimbursable obligations ...............................
33
43
43
Below reporting threshold ..............................................
1 ................... ...................

99.9

Total obligations ........................................................

22
1
4

Personnel Summary

00.91

01.01
01.02

Total direct program .............................................
Capital investment:
Reimbursable program ..............................................
Reimbursable program ..............................................

47
3

59
4

60
4

Total capital investment .......................................

Total obligations ........................................................

102

114

23.90
23.95
24.40

Total compensable workyears:
2001 Full-time equivalent employment ..................................
2005 Full-time equivalent of overtime and holiday hours

1997 est.

1998 est.

34
39
39
102
102
113
–1 ................... ...................
135
–96

141
–102

152
–114

Total new budget authority (gross) ..........................

102

114

22
96
–96

22
102
–102

22
114
–108

1996 actual

Identification code 12–4050–0–3–352

23
6
16
2
3

1998 est.

11.1
11.3
11.5

17
1
4

22
7
5
2
3

01.91

Object Classification (in millions of dollars)

20
6
15
2
3

10.00

2999

Obligations by program activity:
Direct program:
00.01
Market news service ..................................................
00.02
Inspection and standardization ................................
00.03
Market protection and promotion ..............................
00.04
Wholesale market development .................................
00.05
Transportation services .............................................

72.40

490
99

522
125

480
125

AGRICULTURAL MARKETING SERVICE
Federal Funds
General and special funds:
MARKETING SERVICES
For necessary expenses to carry on services related to consumer
protection, agricultural marketing and distribution, transportation,
and regulatory programs, as authorized by law, and for administration and coordination of payments to States; including field employment pursuant to section 706(a) of the Organic Act of 1944 (7 U.S.C.
2225), and not to exceed $90,000 for employment under 5 U.S.C.
3109, ø$38,507,000¿ $49,786,000, including funds for the wholesale
market development program for the design and development of
wholesale and farmer market facilities for the major metropolitan
areas of the country: Provided, That this appropriation shall be available pursuant to law (7 U.S.C. 2250) for the alteration and repair
of buildings and improvements, but the cost of altering any one
building during the fiscal year shall not exceed 10 percent of the
current replacement value of the building.
Fees may be collected for the cost of standardization activities,
as established by regulation pursuant to law (31 U.S.C. 9701). (7
U.S.C. 1291, 1621–27: 15 U.S.C. 714–714p: 21 U.S.C. 1031–56: 26
U.S.C. 6804, 7233, 7263, 7492–93, 7701; 49 U.S.C. 1653.)
LIMITATION ON ADMINISTRATIVE EXPENSES

Not to exceed ø$59,012,000¿ $59,521,000 (from fees collected) shall
be obligated during the current fiscal year for administrative ex-

86.90
86.93
86.97

87.00

Total outlays (gross) .................................................

102

108

–1
–54

–2
–61

–2
–62

88.90

Total, offsetting collections (cash) ..................

–55

–63

–64

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

47
41

39
39

50
43

37
39
44
10 ................... ...................
49
63
64

Agricultural Marketing Service activities assist producers
and handlers of agricultural commodities by providing a variety of marketing services. These services continue to become
more complex as the volume of agricultural commodities increases, as a greater number of new processed commodities
are developed, and as the agricultural market structure undergoes extensive changes. Marketing changes include increased concentration in food retailing, direct buying, decentralization of processing, growth of interregional competition,

AGRICULTURAL MARKETING SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE

vertical integration, and contract farming. The individual activities include:
Market news service.—The market news program provides
the agricultural community with information pertaining to
the movement of agricultural products. This nationwide service provides daily reports on the supply, demand, and price
of nearly 700 commodities throughout the country.
Inspection, grading and standardization.—Nationally uniform standards of quality for agricultural products are established and applied to specific lots of products to: promote
confidence between buyers and sellers; reduce hazards in marketing due to misunderstandings and disputes arising from
the use of nonstandard descriptions; and encourage better
preparation of uniform quality products for market. Grading
services are provided for cotton and domestic and imported
tobacco.
Quarterly inspection of egg handlers and hatcheries is conducted to ensure the proper disposition of shell eggs unfit
for human consumption.
MARKET NEWS PROGRAM
1996 actual

Percentage of reports released on time .....................................

1997 est.

1998 est.

COTTON AND TOBACCO USER FEE PROGRAM
1996 actual

Cotton classed (samples in millions) .........................................
Tobacco auction markets (million pounds) ................................
Imported tobacco inspected at markets and ports of entry
(million pounds) ......................................................................

1997 est.

1998 est.

17.2
1,342

17.4
1,593

309

310

FEDERALLY FUNDED INSPECTION AND PROCUREMENT ACTIVITIES
1996 actual

States and Commonwealths with cooperative agreements ........
Percentage of inspection visits performed on time ...................

50
99.7

1997 est.

49
99.7

1998 est.

49
99.7

STANDARDIZATION ACTIVITIES
1996 actual

International and U.S. standards in effect, end of fiscal year
Number of commodities covered .................................................
Standards revised .......................................................................

423
234
21

1997 est.

426
234
21

MARKET PROTECTION AND PROMOTION ACTIVITIES
Pesticide Data Program:
Average number of samples tested per commodity ..............
Percentage of goal ..................................................................
Pesticide Recordkeeping:
Number of State/Federal Inspections .....................................
Percentage of sampling goal attained ...................................
Seed Act:
Interstate investigations:
Completed ...........................................................................
Pending ...............................................................................
Seed samples tested ..............................................................
Percentage of cases submitted that are completed ..............
Plant Variety Protection Act:
Number of applications received ............................................
Certificates of protection issued ............................................
Research and promotion collections (dollars in millions):
Beef .........................................................................................
Cotton ......................................................................................
Dairy—National ......................................................................
Honey .......................................................................................
Pork .........................................................................................
Egg ..........................................................................................
Potato ......................................................................................
Watermelon .............................................................................
Mushroom ................................................................................
Kiwifruit ...................................................................................
Popcorn ...................................................................................
Soybean ...................................................................................
Fresh cut flowers and greens .................................................
Fluid Milk ................................................................................
Percentage of board budgets and marketing plans approved within time frame goal ..........................................

Market protection and promotion.—This program consists
of: (1) the research and promotion programs which are designed to improve the competitive position and expand markets for cotton, eggs and egg products, honey, pork, beef,
dairy products, potatoes, watermelons, mushrooms, soybeans,
fluid milk and fresh cut flowers and greens; (2) the Federal
Seed Act; and (3) the administration of the Capper-Volstead
Act and the Agricultural Fair Practices Act.
Continuation of the fluid milk program was approved in
referendum in February and March, 1996.
The pesticide recordkeeping program monitors compliance
of private certified applicators with Federal regulations requiring them to keep records of restricted pesticides used
in agricultural production.
The pesticide data program develops comprehensive, statistically defensible information on pesticide residues in food
to improve government dietary risk procedures. In 1997, funding was transfered to the Enviromental Protection Agency.
The 1998 budget proposes funding this program through the
Department of Agriculture.
Federal seed inspectors conduct tests on seed samples to
help ensure truthful labeling of agricultural and vegetable
seeds sold in interstate commerce.
The Capper-Volstead Act and the Agricultural Fair Practices Act protect producers against discriminatory practices
by handlers, permit producers to engage in cooperative efforts,
and ensure that such cooperatives do not engage in practices
that monopolize or restrain trade.

1996 actual

1997 est.

1998 est.

600
100

0
0

600
100

3,349
110

4,665
98

5,276
98

650
550
2,950
100

650
550
2,850
92

650
550
3,000
92

408
228

350
350

43.0
67.9
76.5
3.2
56.6
14.0
8.4
1.4
2.2
0.0
0.0
38.8
10.0
25.0

45.0
62.7
77.3
3.4
58.4
14.0
7.8
1.4
2.3
1.0
0.3
38.0
10.0
100.0

46.0
58.2
78.0
3.4
56.7
14.0
8.1
1.4
2.3
2.0
0.5
36.0
10.0
100.0

Wholesale market development.—This program is designed
to enhance the marketing of agricultural commodities in the
United States by conducting research into more efficient marketing methods for agricultural commodities and by providing
technical assistance to urban areas interested in improving
their food distribution facilities.
Transportation Services.—The activities are designed to ensure that the Nation’s transportation systems will adequately
serve the needs of agriculture and rural areas of the United
States.

1998 est.

426
234
17

155

WHOLESALE MARKET DEVELOPMENT ACTIVITIES
1996 actual

Market studies initiated ..............................................................
Studies and projects completed .................................................

10
7

1997 est.

1998 est.

12
9

12
12

TRANSPORTATION SERVICES ACTIVITIES
1996 actual

Number of reports produced .......................................................
Number of workshops sponsored ................................................

1997 est.

8
2

1998 est.

6
4

8
2

Object Classification (in millions of dollars)
Identification code 12–2500–0–1–352

11.1
11.3
11.5

1996 actual

1997 est.

1998 est.

18
1
1

20
1
1

21
1
1

20
4
1
1

22
4
1
1

23
5
1
1

2
14

2
5

2
14

26.0
31.0

2
1
1

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

46
50

39
63

50
64

99.9

Total obligations ........................................................

102

114

11.9
12.1
21.0
23.2
23.3
25.2
25.3

156

AGRICULTURAL MARKETING SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued

Program and Financing (in millions of dollars)

MARKETING SERVICES—Continued

Identification code 12–5070–0–2–352

LIMITATION ON ADMINISTRATIVE EXPENSES—Continued

1996 actual

1997 est.

1998 est.

2
10

5
9

7
9

12
–7

14
–7

16
–7

21.40

..............................
and holiday hours

474
2

478
2

503
2

..............................
and holiday hours

762
41

835
70

767
70

STATES

AND

23.90
23.95
24.40

1997 est.

3 ................... ...................
7
7
7
–10
–7
–7

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

9
7
7
1 ................... ...................

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

10
10

9
7

1998 est.

Obligations by program activity:
10.00 Total obligations (object class 41.0) ............................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

1
–1

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

1
1
–1

New budget authority (gross), detail:
Appropriation (special fund, indefinite) ........................

72.90

Program and Financing (in millions of dollars)
1996 actual

87.00

POSSESSIONS

For payments to departments of agriculture, bureaus and departments of markets, and similar agencies for marketing activities under
section 204(b) of the Agricultural Marketing Act of 1946 (7 U.S.C.
1623(b)), $1,200,000. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 1997.)

Identification code 12–2501–0–1–352

1998 est.

60.25

PAYMENTS

1997 est.

Obligations by program activity:
Total obligations ............................................................

10.00

Personnel Summary
Identification code 12–2500–0–1–352

1996 actual

72.40

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

1
1

Grants are made on a matching fund basis to State departments of agriculture to carry out specifically approved programs designed to enhance marketing efficiency. Under this
activity, specialists work with farmers, marketing firms, and
other agencies in solving marketing problems and in using
research results.

License fees are deposited in this special fund and are
used to meet the costs of administering the Perishable Agricultural Commodities and the Produce Agency Acts (7 U.S.C.
491–497, 499a–499s).
The Acts are intended to ensure equitable treatment to
farmers and others in the marketing of fresh and frozen fruits
and vegetables. Commission merchants, dealers, and brokers
handling these products in interstate and foreign commerce
are licensed. Complaints of violations are investigated and
violations dealt with by (a) informal agreements between the
two parties, (b) formal decisions involving payment of reparation awards, and/or (c) suspension or revocation of license
and/or publication of the facts. Beginning October 1, 1994,
an additional fee was instituted for the filing of formal and
informal complaints of violations of the Act. The November
1995 amendments to the Perishable Agricultural Commodities
Act: (1) increase the license fee and phase out fees for wholesale grocers and retailers by 1999; (2) provide permanent
authority to the Secretary of Agriculture to set license and
reparation complaint filing fees; and repeal the 25 percent
maximum funding reserve cap.
A 1984 amendment to the Perishable Agricultural Commodities Act requires traders to have trust assets on hand to
meet their obligations to fruit and vegetable suppliers. To
preserve their trust and establish their rights ahead of other
creditors, unpaid suppliers file notice with both the Department and their debtors that payment is due.
PERISHABLE AGRICULTURAL COMMODITIES ACT ACTIVITIES

PERISHABLE AGRICULTURAL COMMODITIES ACT FUND

1996 actual

Percentage of informal reparation complaints completed within time frame goal .................................................................

Unavailable Collections (in millions of dollars)
Identification code 12–5070–0–2–352

1996 actual

1997 est.

1998 est.

Balance, start of year:
01.99 Balance, start of year .................................................... ................... ................... ...................
Receipts:
02.01 Deposits of Perishable Agricultural Commodities Act
fees ............................................................................
10
9
9
Appropriation:
05.01 Perishable Agricultural Commodities Act fund .............
–10
–9
–9
07.99 Total balance, end of year ............................................ ................... ................... ...................

1997 est.

1998 est.

Object Classification (in millions of dollars)
Identification code 12–5070–0–2–352

11.1
12.1
25.3
99.9

1996 actual

1997 est.

1998 est.

Personnel compensation: Full-time permanent .............
Civilian personnel benefits ............................................
Purchases of goods and services from Government
accounts ....................................................................

5
1

Total obligations ........................................................

AGRICULTURAL MARKETING SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
Personnel Summary

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

157

72.40

Identification code 12–5070–0–2–352

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

FUNDS

FOR

1996 actual

1997 est.

STRENGTHENING MARKETS, INCOME,
(SECTION 32)

1998 est.

AND

SUPPLY

Funds available under section 32 of the Act of August 24, 1935
(7 U.S.C. 612c) shall be used only for commodity program expenses
as authorized therein, and other related operating expenses, except
for: (1) transfers to the Department of Commerce as authorized by
the Fish and Wildlife Act of August 8, 1956; (2) transfers otherwise
provided in this Act; and (3) not more than ø$10,576,000¿
$10,690,000 for formulation and administration of marketing agreements and orders pursuant to the Agricultural Marketing Agreement
Act of 1937, as amended, and the Agricultural Act of 1961. (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)

04.00

Total: Balances and collections ....................................
Appropriation:
05.01 Funds for strengthening markets, income, and supply
(section 32) ...............................................................
06.20 Reduction pursuant to Public Law 104–134 ................
07.99 Total balance, end of year ............................................

1996 actual

1997 est.

198
253

205
263

98
319

87.00

Total outlays (gross) .................................................

451

468

417

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

–1

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

588
450

423
467

461
416

89.00
90.00

1998 est.

(in millions of dollars)

1,075

576

559

5,732

5,906

5,687

6,807

6,482

Enacted/requested:
1996 actual
1997 est.
1998 est.
Budget Authority .....................................................................
588
423
461
Outlays ....................................................................................
450
467
416
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... .................... ....................
Outlays .................................................................................... .................... ....................
–10

6,246

–6,264
–5,923
–5,678
5 ................... ...................
576
559
568

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Direct program:
Commodity program payments:
00.01
Child nutrition program purchases ......................
00.02
Emergency surplus removal ..................................
00.03
Disaster Relief ......................................................
00.04
Sunflower and cottonseed oil subsidies ...............

399
400
400
56
50 ...................
1 ................... ...................
24 ................... ...................

00.91
01.01

Subtotal, Commodity program payments .............
Administrative expenses ................................................

480
16

450
17

400
17

01.92
02.01

Total direct program .................................................
Reimbursable program ..................................................

496
1

467
1

Total:
Budget Authority .....................................................................
Outlays ....................................................................................

Total obligations ........................................................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................
22.10 Resources available from recoveries of prior year obligations .......................................................................
22.30 Unobligated balance expiring ........................................

497

468

418

235
589

300
424

256
462

60.25
60.75
61.00
63.00
68.00
70.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................
New budget authority (gross), detail:
Appropriation (special fund, indefinite) ........................
Procurement reduction pursuant to P.L. 104–134 ........
Transferred to other accounts .......................................

423
467

461
406

WORKLOAD INDICATORS
1996 actual

Administrative costs in constant dollars as a percentage of
commodity purchases .............................................................

1.3

1997 est.

1998 est.

1.3

1.2

Object Classification (in millions of dollars)

21.40

23.90
23.95
24.40

588
450

Under section 32 of the act of August 24, 1935, as amended
(7 U.S.C. 612c), an amount equal to 30 percent of customs
receipts collected during each calendar year is automatically
appropriated for expanding outlets for nonbasic commodities.
An amount equal to 30 percent of receipts collected on fishery
products is transferred to the Department of Commerce. Most
of the funds are transferred to the Food and Consumer Service and are used to purchase commodities under section 6
of the National School Lunch Act and other authorities specified in the child nutrition appropriation. If unforeseen commodity surpluses should develop, unobligated reserve balances
are available for surplus removal.

417
1

10.00

Summary of Budget Authority and Outlays

Program and Financing (in millions of dollars)
Identification code 12–5209–0–2–605

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

Unavailable Collections (in millions of dollars)

Balance, start of year:
01.99 Balance, start of year ....................................................
Receipts:
02.01 30% of customs duties, funds for strengthening markets, income and supply (section 32) ......................

86.97
86.98

(INCLUDING TRANSFERS OF FUNDS)

Identification code 12–5209–0–2–605

18
63
63
497
468
418
–451
–468
–417
–1 ................... ...................

1 ................... ...................
–28 ................... ...................
797
–497

724
–468

718
–418

300

256

300

6,264
5,923
5,678
–5 ................... ...................
–5,671
–5,500
–5,217

Identification code 12–5209–0–2–605

11.1
12.1
22.0
23.3

25.2
25.2
25.3
26.0

Appropriation (total) ..................................................
Spending authority from offsetting collections: Offsetting collections (cash) ..............................................

588

423

461

99.0
99.0
99.5

Total new budget authority (gross) ..........................

589

424

462

99.9

Direct obligations:
Personnel compensation: Full-time permanent ........
Civilian personnel benefits .......................................
Transportation of things: Commodities ....................
Communications, utilities, and miscellaneous
charges .................................................................
Other services:
Administration .......................................................
Storage of commodities ........................................
Purchases of goods and services from Government
accounts ................................................................
Supplies and materials: Grants of commodities to
States ....................................................................

1996 actual

1997 est.

1998 est.

8
2
10

8
2
9

9
2
8

2
3

467

438

389

495
1
1

465
1
2

416
1
1

Total obligations ........................................................

497

468

418

AGRICULTURAL MARKETING SERVICE—Continued
Federal Funds—Continued

158

THE BUDGET FOR FISCAL YEAR 1998
99.0
99.0
99.5

General and special funds—Continued
FUNDS

FOR

STRENGTHENING MARKETS, INCOME,
(SECTION 32)—Continued

SUPPLY

AND

99.9

(INCLUDING TRANSFERS OF FUNDS)—Continued

Subtotal, direct obligations .................................. ................... ...................
Reimbursable obligations .............................................. ................... ...................
Below reporting threshold .............................................. ................... ...................

Total obligations ........................................................ ................... ................... ...................

Personnel Summary
Identification code 12–5209–0–2–605

FUNDS

FOR

Personnel Summary
1996 actual

1997 est.

1998 est.

165

173

STRENGTHENING MARKETS, INCOME
(SECTION 32)

AND

1997 est.

Direct:
Total compensable workyears: Full-time equivalent
employment ............................................................... ................... ...................
Reimbursable:
2001 Total compensable workyears: Full-time equivalent
employment ............................................................... ................... ...................

1998 est.

1001

SUPPLY

–126

126

Trust Funds
MISCELLANEOUS TRUST FUNDS
Unavailable Collections (in millions of dollars)

Program and Financing (in millions of dollars)
1996 actual

1996 actual

Identification code 12–5209–4–2–605

(Legislative proposal, subject to PAYGO)

Identification code 12–5209–4–2–605

–9
10
–1

1997 est.

1998 est.

Identification code 12–9972–0–7–352

1996 actual

1997 est.

1998 est.

10.00

Obligations by program activity:
Administrative expenses ................................................ ................... ...................
Unobligated balance, start of year ............................... ................... ...................

–10
10

105

04.00

01.01
02.01

Balance, start of year:
01.99 Balance, start of year .................................................... ................... ...................
Receipts:
02.01 Deposits of fees from inspection and grading of farm
products .....................................................................
102
105
105

107

–103
2

–103
4

Total obligations ........................................................ ................... ................... ...................

Budgetary resources available for obligation:
22.00 New budget authority (gross) ........................................ ................... ...................
10
23.95 New obligations ............................................................. ................... ................... ...................
24.40 Unobligated balance available, end of year:
Uninvested balance ................................................... ................... ...................
10

Total: Balances and collections ....................................
102
Appropriation:
05.01 Miscellaneous trust funds .............................................
–102
07.99 Total balance, end of year ............................................ ...................

Program and Financing (in millions of dollars)
New budget authority (gross), detail:
68.00 Spending authority from offsetting collections (gross):
Offsetting collections (cash) ..................................... ................... ...................

Identification code 12–9972–0–7–352

1997 est.

1998 est.

–10

Net budget authority and outlays:
89.00 Budget authority ............................................................ ................... ................... ...................
90.00 Outlays ........................................................................... ................... ...................
–10

Proposed legislation would finance the Federal Administration of Marketing Agreements and Orders on a user fee basis.
This is one of several proposals in the budget to charge
fees to users directly availing themselves of, or subject to,
a government service, program, or activity, in order to cover
the government’s costs. Legislation will be proposed to authorize the fees and, upon enactment of the authorization, a budget amendment to the current appropriations language will
be proposed to make the fees available for expenditure. Because the current requirements of the Budget Enforcement
Act of 1990 make it difficult to fund discretionary programs
with receipts that are not authorized in appropriations acts,
the Administration is proposing a change in the requirements
to facilitate the enactment of proposals such as this one.

00.01
00.02
00.03
00.04
00.05

Obligations by program activity:
Dairy products ................................................................
Fruits and vegetables ....................................................
Meat grading .................................................................
Poultry products .............................................................
Miscellaneous agricultural commodities .......................

6
46
20
23
7

5
48
20
23
7

10.00

Change in unpaid obligations:
73.10 New obligations ............................................................. ................... ................... ...................
73.20 Total outlays (gross) ...................................................... ................... ................... ...................
Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources .................................................................. ................... ...................

1996 actual

Total obligations ........................................................

102

103

31
102

32
103

133
–102

135
–103

102

103

–15
102
–106

–19
103
–103

–19

21.40

23.90
23.95
24.40

60.27

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................
New budget authority (gross), detail:
Appropriation (trust fund, indefinite) ............................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
U.S. Securities: Unrealized discounts .......................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.92 Unpaid obligations, end of year: Obligated balance:
U.S. Securities: Unrealized discounts .......................
72.92

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

90
16

90
13

87.00

Total outlays (gross) .................................................

106

103

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

102
106

103
103

Object Classification (in millions of dollars)
Identification code 12–5209–4–2–605

11.1
12.1
23.3
25.2

1996 actual

1997 est.

1998 est.

................... ...................
................... ...................

–6
–1

................... ...................
................... ...................

–1
–1

Expenses and refunds, inspection and grading of farm products.—The commodity grading programs provide grading, ex-

AGRICULTURAL MARKETING SERVICE—Continued
Trust Funds—Continued

DEPARTMENT OF AGRICULTURE

amination, and certification services for a wide variety of
fresh and processed food commodities using federally approved grade standards and purchase specifications. Commodities graded include poultry, livestock, meat, dairy products,
and fresh and processed fruits and vegetables. These programs use official grade standards which reflect the relative
quality of a particular food commodity based on laboratory
testing and characteristics such as taste, color, weight, and
physical condition. Producers voluntarily request grading and
certification services which are provided on a fee for service
basis.

Identification code 12–8412–0–8–351

1996 actual

1997 est.

1998 est.

1997 est.

1998 est.

$0.37

$0.36

1995 actual

1996 actual

1997 est.

00.01
00.02

Obligations by program activity:
Administration ................................................................
Marketing service ...........................................................

32
5

34
5

36
6

10.00

Total obligations ........................................................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.90
Fund balance .............................................................
21.91
U.S. Securities: Par value .........................................

20
6

19
6

21.99
22.00

Total unobligated balance, start of year .............
New budget authority (gross) ........................................

26
36

25
39

25
42

61
–37

64
–39

67
–42

19
6

24.99

Total unobligated balance, end of year ....................

68.00

$0.37

Balance Sheet (in millions of dollars)

1999

Program and Financing (in millions of dollars)

24.90
24.91

1996 actual

Weighted average cost per cwt. (1992 index) ............................

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
Non-Federal assets:
1201
Investments in non-Federal securities,
net ..................................................
1206
Receivables, net ..................................
1803 Other Federal assets: Property, plant
and equipment, net ............................

MILK MARKET ORDERS ASSESSMENT FUND

23.90
23.95

WORKLOAD INDICATORS

Identification code 12–9972–0–7–352

159

New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

73.10
73.20

Change in unpaid obligations:
New obligations .............................................................
Total outlays (gross) ......................................................

37
–36

39
–39

42
–42

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

35
1

38
1

41
1

1998 est.

23
11

29
8

Total assets ........................................
LIABILITIES:
2101 Federal liabilities: Accounts payable ......
2207 Non-Federal liabilities: Unearned revenue (advances): Deposit funds ..........

86.97
86.98

87.00

Total outlays (gross) .................................................

2999

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

–36

–39

–42

Total liabilities ....................................
NET POSITION:
3600 Other ........................................................

3999

Total net position ................................

4999

Total liabilities and net position ............

Object Classification (in millions of dollars)
1996 actual

Identification code 12–9972–0–7–352

11.1
11.3
11.5
11.9
12.1
13.0
21.0
23.1
23.2
23.3
25.2
25.3
26.0
31.0
99.5
99.9

1997 est.

1998 est.

53
5
8

Total personnel compensation ..............................
65
Civilian personnel benefits ............................................
15
Benefits for former personnel ........................................
1
Travel and transportation of persons ............................
6
Rental payments to GSA ................................................
1
Rental payments to others ............................................
1
Communications, utilities, and miscellaneous charges
2
Other services ................................................................
6
Purchases of goods and services from Government
accounts ....................................................................
3
Supplies and materials .................................................
1
Equipment ......................................................................
1
Below reporting threshold .............................................. ...................

66
15
1
5
1
1
2
6

3
1
1
1

103

102

Personnel Summary
Identification code 12–9972–0–7–352

Total compensable workyears:
1001 Full-time equivalent employment ..................................
1005 Full-time equivalent of overtime and holiday hours

1996 actual

1,654
142

Note.—The administration fund totals are comprised of 33 separate independent order accounts in 1996. The
Marketing Service fund totals are comprised of 31 separate independent order accounts in 1996.

53
5
7

Total obligations ........................................................

89.00
90.00

1997 est.

1,723
139

1998 est.

1,580
139

The Secretary of Agriculture is authorized by the Agricultural Marketing Agreement Act of 1937, as amended—under
certain conditions—to issue Federal milk marketing orders
establishing minimum prices which handlers are required to
pay for milk purchased from producers.
Market administrators are appointed by the Secretary and
are responsible for carrying out the terms of specific marketing orders. Their operating expenses, partly financed by assessments on regulated handlers and partly by deductions
from producers, are reported in these schedules. These funds
are collected locally, deposited in local banks, and disbursed
directly by the market administrator.
Expenses of local offices are met from an administrative
fund and a marketing service fund, which are prescribed in
each order. The administrative fund is derived from prorated
handler assessments. The marketing service fund of the individual order disseminates market information to producers
who are not members of a qualified cooperative. It also provides for the verification of the weights, sampling, and testing
of milk from these producers. The cost of these services is
borne by such producers.
The maximum rates for administrative assessment and for
marketing services are set forth in each order and adjustments below these rates are made from time to time upon
recommendations by the market administrator and upon approval of the Agricultural Marketing Service to provide re-

160

AGRICULTURAL MARKETING SERVICE—Continued
Trust Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

øOFFICE OF¿ RISK MANAGEMENT AGENCY
(FEDERAL CROP INSURANCE CORPORATION)

MILK MARKET ORDERS ASSESSMENT FUND—Continued

serves at about a 6-month operating level. Upon termination
of any order, the statute provides for distributing the proceeds
from net assets pro rata to contributing handlers or producers, as the case may be.
WORKLOAD INDICATORS
1996 actual

Percentage of informal rulemaking completed within internal
timeframes ..............................................................................
Percentage of formal rulemaking completed within internal
timeframes:
Fruit & vegetable & Specialty Crop .......................................
Fluid Milk Orders ....................................................................

1997 est.

1998 est.

100

87
88

85
85

Federal Funds
General and special funds:
ADMINISTRATIVE

AND

OPERATING EXPENSES

For administrative and operating expenses, as authorized by the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
6933), ø$64,000,000¿ $68,465,000: Provided, That not to exceed $700
shall be available for official reception and representation expenses,
as authorized by 7 U.S.C. 1506(i). In addition, for sales commissions
of agents, as authorized by section 516 (7 U.S.C. 1516), $202,571,000.
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)

Statement of Operations (in millions of dollars)
1997 est.

1998 est.

1996 actual

1997 est.

1998 est.

1995 actual

1996 actual

0111
0112

Revenue ...................................................
Expense ....................................................

30
–31

29
–32

34
–34

36
–36

0119
0121
0122

Net loss ...................................................
Revenue ...................................................
Expense ....................................................

–1
7
–6

–3
7
–5

..................
5
–5

..................
6
–6

0129

Net income or loss (–) ............................

..................

00.01
00.02
00.03
00.04
00.05
00.06

0191

Total revenues .........................................

10.00

Total obligations ........................................................ ...................

271

0192

Total expenses .........................................

–37

–39

–42

0199

Net income or loss ..................................

..................

–1

..................

22.00
23.95

64
–64

271
–271

40.00

New budget authority (gross), detail:
Appropriation .................................................................. ...................

271

1997 est.

1998 est.

Identification code 12–8412–0–8–351

Identification code 12–2707–0–1–351

Balance Sheet (in millions of dollars)
1995 actual

Identification code 12–8412–0–8–351

1996 actual

6
3

17
4

1999

86.90
86.93
87.00

2999

...................
1
...................
39
...................
15
...................
2
...................
7
................... ...................

1
40
17
2
8
203

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
33
4
8
73.10 New obligations ............................................................. ...................
64
271
73.20 Total outlays (gross) ......................................................
–9
–60
–181
73.40 Adjustments in expired accounts ..................................
–20 ................... ...................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
4
8
98

ASSETS:
Investments in US securities:
1102
Federal assets: Treasury securities,
par ..................................................
1206 Non-Federal assets: Receivables, net .....
Other Federal assets:
1801
Cash and other monetary assets .......
1803
Property, plant and equipment, net
Total assets ........................................
LIABILITIES:
2201 Non-Federal liabilities: Accounts payable

Obligations by program activity:
Office of Administrator ..................................................
Research and Development ...........................................
Insurance Services .........................................................
Program Support ............................................................
Risk Compliance ............................................................
Sales Commissions ........................................................

72.40

Total liabilities ....................................
NET POSITION:
3200 Invested capital .......................................

3999

Total net position ................................

4999

Total liabilities and net position ............

Outlays (gross), detail:
Outlays from new current authority .............................. ...................
Outlays from current balances ......................................
9

56
4

173
8

181

64
60

271
181

89.00
90.00

Total outlays (gross) .................................................

Summary of Budget Authority and Outlays
Object Classification (in millions of dollars)
1996 actual

Identification code 12–8412–0–8–351

11.1
12.1
21.0
23.2
23.3
25.2
26.0
31.0
99.0
99.5

Personnel compensation: Full-time permanent .............
Civilian personnel benefits ............................................
Travel and transportation of persons ............................
Rental payments to others ............................................
Communications, utilities, and miscellaneous charges
Other services ................................................................
Supplies and materials .................................................
Equipment ......................................................................
Subtotal, reimbursable obligations ...............................
Below reporting threshold ..............................................

99.9

Total obligations ........................................................

(in millions of dollars)
1997 est.

1998 est.

23
25
5
5
2
2
2
3
1
1
1
1
1
1
1
1
36
39
1 ...................

26
5
3
3
1
1
1
1
41
1

Personnel Summary
Identification code 12–8412–0–8–351

2001
2005

Total compensable workyears:
Full-time equivalent employment ..................................
Full-time equivalent of overtime and holiday hours

1996 actual

480
1

1997 est.

487
1

1998 est.

447
1

Enacted/requested:
1996 actual
1997 est.
Budget Authority ..................................................................... ....................
64
Outlays ....................................................................................
9
60
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
Total:
Budget Authority ..................................................................... ....................
Outlays ....................................................................................
9

64
60

1998 est.

271
181
–53
–34
218
147

This appropriation finances the administrative and operating expenses of the Risk Management Agency (RMA), which
provides crop insurance to farmers. In 1996, due to the reorganization of USDA, a consolidated appropriation account was
established for all FSA administrative expenses that included
FCIC activities administered by FSA. The 1996 Farm Bill
separated FCIC from FSA and established RMA as an independent agency. In 1997, a separate account for RMA/FCIC
administrative and operating expenses was established consistent with the Farm Bill as reflected in these schedules.

CORPORATIONS

DEPARTMENT OF AGRICULTURE
Object Classification (in millions of dollars)
1996 actual

Identification code 12–2707–0–1–351

1997 est.

1998 est.

11.1
11.3

Personnel compensation:
Full-time permanent .................................................. ...................
Other than full-time permanent ............................... ...................

25
2

28
3

11.9
12.1
21.0
23.2
23.3
25.2
26.0
31.0

...................
...................
...................
...................
...................
...................
...................
...................

27
6
2
1
4
21
1
2

31
7
2
1
4
223
1
2

Total obligations ........................................................ ...................

271

99.9

161

year limitations as provided by section 104 of the Government Corporation Control Act, as amended, as may be necessary in carrying
out the programs set forth in the budget for the current fiscal year
for such corporation or agency, except as hereinafter provided. (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)

Public enterprise funds:
FEDERAL CROP INSURANCE CORPORATION FUND
For payments as authorized by section 516 of the Federal Crop
Insurance Act, as amended, such sums as may be necessary, to remain available until expended (7 U.S.C. 2209b). (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 1997.)
Program and Financing (in millions of dollars)

Personnel Summary
1996 actual

Identification code 12–4085–0–3–351
1996 actual

Identification code 12–2707–0–1–351

1997 est.

1998 est.

Total compensable workyears:
Full-time equivalent employment .................................. ...................
Full-time equivalent of overtime and holiday hours ...................

ADMINISTRATIVE

AND

580
3

Program and Financing (in millions of dollars)
1996 actual

1997 est.

492
1,835

495
2,088

268
2,100

Total obligations ........................................................

2,327

2,583

2,368

216
2,291

971
2,558

569
2,368

21.90

OPERATING EXPENSES

(Legislative proposal, not subject to PAYGO)

Identification code 12–2707–2–1–351

Obligations by program activity:
Delivery expenses ...........................................................
Indemnities ....................................................................

623
3

00.02
01.01
10.00

1001
1005

1998 est.

00.06

Obligations by program activity:
Sales Commissions ........................................................ ................... ...................

–53

10.00

Total obligations (object class 25.2) ........................ ................... ...................

–53

22.00
23.95

–53
53

23.90
23.95
24.90

New budget authority (gross), detail:
40.00 Appropriation .................................................................. ................... ...................

73.10
73.20
74.40

86.90

Change in unpaid obligations:
New obligations ............................................................. ................... ...................
Total outlays (gross) ...................................................... ................... ...................
Unpaid obligations, end of year: Obligated balance:
Appropriation ............................................................. ................... ...................
Outlays (gross), detail:
Outlays from new current authority .............................. ................... ...................

Net budget authority and outlays:
89.00 Budget authority ............................................................ ................... ...................
90.00 Outlays ........................................................................... ................... ...................

–53

–53
34
–19

791

–377 ...................

3,298
–2,327

3,152
–2,583

2,937
–2,368

971

569

1,650

1,785

1,584

641

773

784

Total new budget authority (gross) ..........................

2,291

2,558

2,368

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1,800
2,327
–2,401
–791

70.00

72.40

936
1,394
2,583
2,368
–2,502
–2,459
377 ...................

936

1,394

1,303

–34

–53
–34

This schedule reflects proposed legislation to amend the
Federal Crop Insurance (FCIC) Act to reduce the rate used
to reimburse approved private-sector insurance providers and
agents for the administrative and operating cost. The proposal
would lower the reimbursement rate from 28 percent of premiums sold for multiple-peril crop insurance in 1998 to 24.50
percent. In addition, the proposal would specify that 10.5
percentage points of the proposed rate would be subject to
appropriations (the remainder is paid through the mandatory
Crop Insurance Fund).

86.90
86.93
86.97
86.98

784
891
509
217

757
1,059
270
416

621
1,061
274
503

87.00

Total outlays (gross) .................................................

2,401

2,502

2,459

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

–641

–773

–784

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

1,650
1,760

1,785
1,729

1,584
1,675

89.00
90.00

Summary of Budget Authority and Outlays
(in millions of dollars)

CORPORATIONS
The following corporations and agencies are hereby authorized to
make expenditures, within the limits of funds and borrowing authority available to each such corporation or agency and in accord with
law, and to make contracts and commitments without regard to fiscal

Enacted/requested:
1996 actual
1997 est.
Budget Authority .....................................................................
1,650
1,785
Outlays ....................................................................................
1,760
1,729
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................

1998 est.

1,584
1,675
26
4

162

CORPORATIONS—Continued

THE BUDGET FOR FISCAL YEAR 1998
1 Includes amounts that will appear on the books of the reinsured companies. The Corporation records will
only reflect the net reinsurance income and net reinsurance loss.

Public enterprise funds—Continued
FEDERAL CROP INSURANCE CORPORATION FUND—Continued
Summary of Budget Authority and Outlays—Continued
(in millions of dollars)

Total:
Budget Authority .....................................................................
Outlays ....................................................................................

1996 actual

1997 est.

1,650
1,760

1,785
1,729

1998 est.

1,610
1,679

The Federal Crop Insurance Corporation (FCIC) is a whollyowned government Corporation that provides crop insurance
to crop producers against losses due to unavoidable causes
and/or uncontrollable events. The Federal Crop Insurance Reform Act of 1994 (Reform Act) made significant changes in
the program to provide more of the Nation’s farmers with
an on-going source of risk protection and to reduce the need
for ad hoc disaster payment assistance.
The Reform Act established a link between catastrophic
crop insurance (CAT) and other farm programs by requiring
producers to carry CAT for each insurable crop of economic
significance in order to participate in other farm programs.
The premium for this type of coverage is subsidized by the
Federal Government with the only cost to farmers being a
small annual processing fee. This basic level of coverage compensates producers for losses greater than 50 percent of the
normal yield at 60 percent of the expected price.
The Federal Agriculture Improvement and Reform Act of
1996 (1996 Farm Bill) made further changes in the crop insurance program by mandating further expansion of the revenue insurance program. It also provided for the development
of educational programs on risk management techniques
which will enable farmers to improve their farming operations
and production capabilities. Under the 1996 Farm Bill, farmers are no longer required to obtain catastrophic insurance
to participate in other Federal farm programs.
Additional protection at higher levels of coverage will continue to be offered. Coverage levels will be subsidized to the
extent of the premium on at least the catastrophic level of
coverage and the delivery costs.
The Noninsured Assistance Program, which provides coverage equivalent to the catastrophic risk protection in areas
where catastrophic risk protection is not available on specific
crops which are produced for food or fiber, will now be administered by the Farm Service Agency.
The 1996 appropriation provided sufficient funding for crop
year 1996 to insure 202.4 million acres with an estimated
$1,840.0 million in total premium income, including $554.6
million in premium subsidy.
The Corporation’s budget is presented in accordance with
generally accepted accounting principles, the Financial Accounting Standards Board (FASB) Statement No. 60, ‘‘Accounting and Reporting by Insurance Enterprises,’’ and Statement No. 5, ‘‘Accounting for Contingencies.’’
The following table compares the scope of the insurance
operations planned for 1997. Amounts in the 1995 column
are as of September 30, 1995, and pertain to the 1995 crop
year.
1996
crop year
actual

1997
crop year
estimate

1998
crop year
estimate

Number of States ...........................................................
Number of counties .......................................................
Insurance in force (millions) .........................................
Insured acreage (millions) .............................................

50
3,022
26,619
202

50
3,022
26,721
202

50
3,022
26,656
203

Producer premium (millions)1 .......................................
Premium subsidy (millions)1 .........................................

862
978

899
981

909
1,005

Total premium (millions)1 ................................

1,840

1,880

1,914

Indemnities (million)1 ....................................................
Loss ratio .......................................................................

1,840
1.00

2,068
1.10

2,106
1.10

Financing.—The Corporation is authorized under the Federal Crop Insurance Act, as amended, to use funds from the
issuance of capital stock which provides working capital for
the Corporation.
Receipts, which are for deposit to this fund, come mainly
from premiums paid by farmers. The principal payments from
this fund are for indemnities to insured farmers, and administrative expenses for approved insurance providers.
Premium subsidies are authorized by section 508(b) of the
Federal Crop Insurance Act, as amended, and are received
through appropriations.
PREMIUM AND SUBSIDY
[In millions of dollars]

1996
fiscal year
actual

1997
fiscal year
estimate

1998
fiscal year
estimate

Premiums:
Producer premium ...................................................................
Amount of subsidies ...............................................................
Additional coverage ............................................................
Catastrophic coverage ........................................................

827
944
730
214

893
981
823
158

908
1,001
851
150

Total premiums ..............................................................

1,771

1,874

1,909

Indemnities ..................................................................................
Additional coverage ............................................................
Catastrophic coverage ........................................................

1,835
1,815
20

2,088
1,888
200

2,100
1,935
165

For crop years 1948 through 1995, indemnities ($14,383.0
million) exceeded premium income ($10,957.3 million) by
$3,425.7 million; the loss ratio for the period was 1.31.
The following table summarizes the insurance operations
for fiscal years 1996, 1997 and 1998:
NET INCOME OR LOSS (Ø) ON INSURANCE OPERATIONS
[In millions of dollars]

1996 fiscal
year
actual

1997 fiscal
year
estimate

1998 fiscal
year
estimate

Premiums over indemnities ...........................................
Interest expense, net .....................................................
Delivery expenses ...........................................................
Other income or expense, net (¥) ...............................
Reinsurance underwriting gain (+) or loss (¥) ..........
Research and Development start up expense ...............

¥1,008
¥1
¥493
¥1
¥176
¥6

¥1,195
0
¥490
0
¥121
¥5

¥1,193
0
¥257
0
¥124
¥10

Net income or loss (¥) ................................................

¥1,685

¥1,811

¥1,584

Statement of Operations (in millions of dollars)
Identification code 12–4085–0–3–351

1995 actual

1996 actual

685
–2,848

641
–2,326

0101
0102

Revenue ...................................................
Expense ....................................................

0109

Net income or loss (–) ............................

–2,163

0199

Net income or loss ..................................

–2,163

1997 est.

1998 est.

773
–2,584

784
–2,368

–1,685

–1,811

–1,584

–1,685

–1,811

–1,584

Balance Sheet (in millions of dollars)
1995 actual

1996 actual

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....
1803 Other Federal assets: Property, plant
and equipment, net ............................

2,136
571

2,114
735

1,708
700

1999

2,709

2,850

2,410

Identification code 12–4085–0–3–351

1997 est.

1998 est.

Total assets ........................................
LIABILITIES:
Federal liabilities:
2101
Accounts payable ................................
2105
Other ...................................................
Non-Federal liabilities:
2201
Accounts payable ................................
2207
Other ...................................................

3
183

1
186

5
150

221
1,617

220
1,632

200
1,262

2999

2,024

2,039

1,617

Total liabilities ....................................

FARM SERVICE AGENCY
Federal Funds

DEPARTMENT OF AGRICULTURE

3100
3200
3300
3500
3600

NET POSITION:
Appropriated capital ................................
Invested capital .......................................
Cumulative results of operations ............
Future funding requirements ..................
Other ........................................................

8
2
–3,815
–6
4,496

2
1
–3,682
–6
4,496

10
2
–5,493
–7
6,281

10
2
–7,077
–7
7,865

3999

Total net position ................................

685

811

793

4999

Total liabilities and net position ............

2,709

2,850

2,410

ity to offer other plans of insurance, such as revenue insurance, is currently limited to pilot programs or private company submissions under section 508(h) of the Act. This proposal would give the Corporation the flexibility either to develop and administer programs itself or to act as a facilitator
for programs developed by the private sector. In addition,
the expected loss ratio of the Corporation would be adjusted
to a more actuarially-sound level.
Object Classification (in millions of dollars)

Object Classification (in millions of dollars)
Identification code 12–4085–0–3–351

25.2
99.0

Direct obligations:
Other services ............................................................

1996 actual

163

1997 est.

1998 est.

1996 actual

Identification code 12–4085–4–3–351

1997 est.

1998 est.

492

495

268

25.2
42.0

Other services ................................................................ ................... ...................
Insurance claims and indemnities ................................ ................... ...................

10
47

99.9

Total obligations ........................................................ ................... ...................

492

495

268

42.0
42.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations:
Insurance claims and indemnities:
Insurance claims and indemnities (catastrophic)
Insurance claims and indemnities (reinsured) ....
Subtotal, reimbursable obligations ...............................

20
1,815
1,835

200
1,888
2,088

165
1,935
2,100

99.9

Total obligations ........................................................

2,327

2,583

2,368

FARM SERVICE AGENCY
Federal Funds
General and special funds:
SALARIES

FEDERAL CROP INSURANCE CORPORATION FUND
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
Identification code 12–4085–4–3–351

1996 actual

1997 est.

1998 est.

00.02
01.01

Obligations by program activity:
Delivery expenses ........................................................... ................... ...................
Indemnities .................................................................... ................... ...................

10
47

10.00

Total obligations ........................................................ ................... ...................

22.00
23.95

57
–57

Total new budget authority (gross) .......................... ................... ...................

73.10
73.20
74.40

AND

EXPENSES

(INCLUDING TRANSFERS OF FUNDS)

For necessary expenses for carrying out the administration and
implementation of programs administered by the Farm Service Agency, ø$746,440,000¿ $742,789,000: Provided, That the Secretary is authorized to use the services, facilities, and authorities (but not the
funds) of the Commodity Credit Corporation to make program payments for all programs administered by the Agency: Provided further,
That other funds made available to the Agency for authorized activities may be advanced to and merged with this account: Provided
further, That these funds shall be available for employment pursuant
to the second sentence of section 706(a) of the Organic Act of 1944
(7 U.S.C. 2225), and not to exceed $1,000,000 shall be available
for employment under 5 U.S.C. 3109. (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)

Identification code 12–0600–0–1–351

00.01
00.02
00.03
00.04

57
–35
22

16
19

87.00

Total outlays (gross) ................................................. ................... ...................

–31

26
4

Obligations by program activity:
Program formulation and appraisal ..............................
Inventory management and merchandising ..................
Warehouse examination .................................................
Operation of supply adjustment, conservation and
farm income programs ..............................................
00.05 Crop Loss Protection ......................................................
00.06 Farm credit activities (reimbursable) ............................
00.07 Other reimbursable activities ........................................
10.00

Total obligations ........................................................

22.00
22.22

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Unobligated balance transferred from other accounts

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

1997 est.

1998 est.

36
22
7

29
20
9

27
19
9

718
100
208
53

680
43
208
53

676
44
210
54

1,144

1,042

1,039

1,093
1,042
1,039
52 ................... ...................
1,145
–1,144

1,042
–1,042

1,039
–1,039

795

746

743

298

296

1,093

1,042

1,039

151
1,042
–1,060

133
1,039
–1,039

133

This schedule reflects a key part of the Administration’s
proposal to reinforce the farm income ‘‘safety net.’’ Legislation
to amend the Federal Crop Insurance (FCIC) Act would allow
the Corporation to offer revenue insurance products on a nationwide basis. The FCIC Act currently provides for either
individual or area yield-based insurance, such as traditional
multiple peril crop insurance or the Group Risk Plan. Author-

1996 actual

Total new budget authority (gross) ..........................

72.40

164

FARM SERVICE AGENCY—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
SALARIES

AND

EXPENSES—Continued

(INCLUDING TRANSFERS OF FUNDS)—Continued

Program and Financing (in millions of dollars)—Continued
Identification code 12–0600–0–1–351

86.90
86.93
86.97
87.00

1996 actual

Outlays (gross), detail:
Outlays from new current authority ..............................
695
Outlays from current balances ...................................... ...................
Outlays from new permanent authority .........................
298

1997 est.

1998 est.

613
151
296

610
133
296

Total outlays (gross) .................................................

993

1,060

1,039

–264
–34

–272
–24

–274
–22

88.90

Total, offsetting collections (cash) ..................

–298

–296

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

795
695

746
764

743
743

The Farm Service Agency (FSA) administers a variety of
activities, such as farm income support programs through
various loans and payments; the Conservation Reserve Program (CRP) and the Emergency Conservation Program; the
warehouse examination function; farm ownership, farm operating, emergency disaster, and other loan programs; price
support and production control programs for tobacco and peanuts; and the Noninsured Crop Disaster Assistance Program
(NAP), which provides crop loss protection for growers of
many crops for which crop insurance is not available. The
Agency also assists in the administration of several conservation cost-share programs financed by the Commodity Credit
Corporation (CCC), including the Environmental Quality Incentives Program (EQIP). In addition, FSA provides certain
administrative support services to the Foreign Agricultural
Service (FAS) and to the Risk Management Agency (RMA).
This consolidated administrative expenses account includes
funds to cover expenses of programs administered by, and
functions assigned to, the Agency. The funds consist of a
direct appropriation, transfers from program loan accounts
under credit reform procedures, user fees, and advances and
reimbursements from other sources. This is a consolidated
account for administrative expenses of national, regional,
State, and county offices.
The Department of Agriculture Reorganization Act of 1994
was amended on April 4, 1996, by the Federal Agriculture
Improvement and Reform Act of 1996 (the 1996 Act), P.L.
104–127. The 1996 Act required the Secretary to establish
an independent Office of Risk Management to supervise the
Federal Crop Insurance Corporation activities. The official
transfer of the risk management functions, personnel, property, and funds from FSA to the newly established Risk Management Agency was completed by October 1, 1996.
Program formulation and appraisal.—The supply adjustment, conservation, and farm income support programs, and
the management and merchandising of commodities acquired
under the support program, have a significant impact on the
national and (to a lesser extent) the international economy.
This activity provides for the review and analysis of the effectiveness of these programs.
Inventory management and merchandising.—This activity
includes: (a) overall management of CCC-owned commodities;
(b) purchasing commodities; (c) donating commodities; (d) selling commodities; and (e) accounting for loans and commodities.
Warehouse examination.—This activity provides for the examination of warehouses licensed under the U.S. Warehouse

Act and non-licensed warehouses storing CCC-owned or
pledged commodities. Examiners perform periodic examinations of the facilities and the warehouse records to ensure
protection of depositors against potential losses of the stored
commodities and to ensure compliance with the U.S. Warehouse Act and any CCC storage agreements.
Operation of supply adjustment, conservation and farm income programs.—This activity includes all functions dealing
with the administration of programs carried out through the
farmer committee system of the FSA, including: (a) developing
program regulations and procedures; (b) collecting and compiling basic data for individual farms; (c) establishing individual
farm allotments for tobacco and peanuts and farm planting
histories; (d) notifying producers of established allotments and
farm planting histories; (e) determining farm marketing
quotas for tobacco and peanuts; (f) conducting referendums
and certifying results; (g) accepting farmer certifications and
checking compliance for specific purposes; (h) issuing marketing cards so that production from allotted acreage can be
marketed without penalty; (i) processing producer requests
for conservation cost-sharing and issuing conservation reserve
rental payments; (j) issuing checks for other conservation programs; (k) processing commodity loan documents and issuing
checks; (l) processing production flexibility contract payments
and issuing checks; and (m) certifying payment eligibility and
monitoring payment limitations.
Crop Loss Protection.—This activity includes administration
of the Noninsured Crop Disaster Assistance Program (NAP)
and delivery of catastrophic crop insurance protection (CAT)
for RMA in States where a dual delivery system is in operation. The activities include developing NAP program regulations and procedures; accepting producer crop and production
evidence for both CAT and NAP; accepting CAT service fees;
processing producer requests for NAP assistance; providing
documentation for NAP disaster area designations; and processing NAP payments and issuing indemnity checks.
Farm Credit Activities (Reimbursable).—Provides for administering the direct and guaranteed loan programs covered
under the Agricultural Credit Insurance Fund (ACIF). Activities include reviewing applications, servicing the loan portfolio, and providing technical assistance and guidance to borrowers. These administrative expenses are transferred to this
consolidated account from the ACIF. Appropriations representing subsidy amounts necessary to support the individual program loan levels under Federal Credit Reform are
made to the ACIF account.
Other Reimbursable Activities.—FSA collects a fee or is reimbursed for performing a variety of services for other Federal agencies and others, including certain administrative
support services for the Risk Management Agency and the
Foreign Agricultural Service, and for county office services
provided to Federal and non-Federal entities, including a variety of services to producers.
The budget assumes a consolidation of certain functions
of the Farm Service Agency (FSA) and the Natural Resources
Conservation Service (NRCS) at the national headquarters
level in 1998, including personnel, IRM, property and public
affairs. The consolidation will foster operational efficiencies,
as well as improved inter-agency communication and coordination. In addition, the number of field office service centers
would be reduced from 2,500 to a maximum of 2,000 by the
end of 1999.
A study will be conducted in 1997 by an independent entity
to examine the FSA and NRCS for opportunities for further
coordinating and reducing costs in these agencies, including
alternative means of program delivery, such as centralized
servicing for AMTA payments and CCC non-recourse loans,
and consolidation of the two agencies’ operations.
USDA will coordinate and significantly reduce the paperwork burden of information collections required by the FSA,

FARM SERVICE AGENCY—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE

NRCS, and crop insurance activities and programs. This will
similarly reduce the administrative burden of these agencies.
The initiative should improve customer service and program
performance by critically evaluating current regulations and
information collections to improve information sharing between USDA components and the private sector, reduce duplication and inconsistencies, and better accomplish performance
goals.

73.20
74.40

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

Object Classification (in millions of dollars)
1996 actual

Identification code 12–0600–0–1–351

11.1
11.3
11.5
11.9
12.1
13.0
21.0
22.0
23.2
23.3
24.0
25.2
26.0
31.0
41.0

1997 est.

1998 est.

110
9
4

105
9
4

123
28
8
5
1
6

118
29
5
6
1
6

16
2
23
5
2
527

16
2
24
5
2
529

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

846
298

746
296

743
296

99.9

Total obligations ........................................................

1,144

1,042

1,039

Personnel Summary

1996 actual

1997 est.

1998 est.

..............................
and holiday hours

3,269
25

2,545
28

2,341
28

..............................
and holiday hours

3,548
3

3,601
3

3,536
3

CONSERVATION RESERVE PROGRAM
Program and Financing (in millions of dollars)
Identification code 12–3319–0–1–302

00.01
00.02
00.04

Obligations by program activity:
Cost-sharing assistance ................................................
Annual rental payments ................................................
Technical assistance .....................................................

10.00

Total obligations ........................................................

1996 actual

1997 est.

1998 est.

1 ................... ...................
1,721
–4
–4
3
95
24
1,725

21.40

23.90
23.95
24.40

40.00

–84

–27

7 ...................

1,671 ................... ...................
59
84
27
1,730

1,782 ................... ...................
1,730
84
27

RECONCILIATION OF PROGRAM LEVEL TO APPROPRIATION
136
10
2

Total personnel compensation .........................
148
Civilian personnel benefits .......................................
33
Benefits for former personnel ................................... ...................
Travel and transportation of persons .......................
6
Transportation of things ...........................................
1
Rental payments to others ........................................
6
Communications, utilities, and miscellaneous
charges .................................................................
12
Printing and reproduction .........................................
2
Other services ............................................................
31
Supplies and materials .............................................
5
Equipment .................................................................
2
Grants, subsidies, and contributions ........................
600

Identification code 12–0600–0–1–351

Total outlays (gross) ......................................................
–1,730
Unpaid obligations, end of year: Obligated balance:
Appropriation ............................................................. ...................

165

122
111
20
1,782 ................... ...................
–68 ................... ...................
1,836
–1,725
111

111
–91

20
–20

20 ...................

1,782 ................... ...................

72.40

5 ...................
1,725
91

7
20

[In millions of dollars]

1997 est.

1998 est.

Annual rental payments ................................................
Cost-sharing assistance ................................................
Technical assistance .....................................................

1996 actual

1,721
1
3

¥4
......................
95

¥4
......................
24

Total program level, current year ....................

1,725

Add:
Funds transferred to other accounts ........................
Change in unobligated balances ..............................

+64
¥11

......................
¥91

......................
¥20

Appropriation, net ..........................................................

1,782

......................

The Conservation Reserve Program (CRP) was mandated
by sections 1231–1244 of the Food Security Act of 1985 (Public Law 99–198), as amended by sections 1411–1499 of the
Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101–624), and the Omnibus Budget Reconciliation
Act of 1993 (P.L. 103–66), to establish permanent cover on
highly erodible cropland and on cropland posing environmental threats. The primary objectives of the CRP are to
help farmers control critical soil erosion that occurs on about
a third of America’s highly erodible and environmentally sensitive cropland, to decrease production of some surplus agricultural commodities, and to increase wildlife habitat and
water quality primarily in agricultural regions.
The Federal Agriculture Improvement and Reform Act of
1996 (the 1996 Act), enacted April 4, 1996, retains the CRP
as part of the Environmental Conservation Acreage Reserve
Program (ECARP) but changed the funding source from direct
appropriation to the Commodity Credit Corporation. Only
very minimal CCC funds were used for program operations
in 1996 since annual rental payments had been made very
early in the fiscal year using CRP appropriated funds.
The CRP is authorized in all 50 States, Puerto Rico, and
the Virgin Islands, on all highly erodible cropland, other environmentally sensitive cropland, and certain marginal
pastureland meeting the eligibility criteria. In addition to
cropland in areas adjacent to lakes and streams that can
be devoted to filter strips, and cropland subject to overflow
and suffering from scour erosion, eligible land may include
shelterbelts, windbreaks, cropland contributing to water quality problems, and other lands posing environmental threats.
Also eligible for the CRP are water quality or wildlife habitat
impaired areas that do not meet the highly erodible land
(HEL) criteria, such as the Chesapeake Bay, Great Lakes,
and Long Island Sound watershed regions.
The program is administered through the Commodity Credit Corporation (CCC) by State and local committees working
under the general direction of the Secretary.
In fiscal year 1996, a continuous signup began in September
and is scheduled to be available indefinitely. The purpose
of the continuous signup is to provide management flexibility
to farmers and ranchers to implement certain high priority
environmental practices, such as filter strips, riparian buffers,
windbreaks, grassed waterways, or shallow water areas for
wildlife on small acreages. There is not a competitive bidding

166

FARM SERVICE AGENCY—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
23.95
24.40

General and special funds—Continued
CONSERVATION RESERVE PROGRAM—Continued

process, and land can be immediately accepted once it has
been determined that it is basically eligible.
A participant who entered into a contract before January
1, 1995, may terminate the contract at any time if the contract has been in effect for at least 5 years. This termination
is subject to a 60-day notice to USDA. However, CRP acres
with filter strips, grass waterways, riparian areas,
windbreaks, shelterbelts, acres having an erodibility index
greater than 15, wetlands, and other lands with high environmental benefits as determined by the Secretary are ineligible
for early withdrawal. Producers will receive prorated rental
payments for contracts that are withdrawn before the end
of the fiscal year. The 1996 Act further stipulates that early
withdrawal of a CRP contract shall not affect the ability of
the owner or operator to submit a bid to re-enroll the land
in the CRP at a future date.
CRP program payments for fiscal years 1997 and 1998 are
included under the Commodity Credit Corporation account.
Object Classification (in millions of dollars)
1996 actual

Identification code 12–3319–0–1–302

1997 est.

1998 est.

25.2
41.0

Other services ................................................................
Grants, subsidies, and contributions ............................

3
1,722

95
–4

24
–4

99.9

Total obligations ........................................................

1,725

SALARIES

AND

EXPENSES

Program and Financing (in millions of dollars)
Identification code 12–3300–0–1–351

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1996 actual

1997 est.

1998 est.

72.40

52
–44

40.00

New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................
New budget authority (gross), detail:
Appropriation ..................................................................

Outlays (gross), detail:
Outlays from current balances ......................................

89.00
90.00

86.90
86.93

8 ...................

Prior to the reorganization of USDA, Congress provided
a separate 1995 appropriation for Agricultural Stabilization
and Conservation Service (ASCS) administrative expenses.
For 1996, a consolidated appropriation account was enacted
for all FSA administrative expenses, which include the activities of the former ASCS now administered by the FSA. The
schedule shown here reflects adjustments to the 1995 ASCS
account.

87.00

89.00
90.00

Total budgetary resources available for obligation

161

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

21 ................... ...................
80
100
29
101

100

75 ................... ...................
101
100
29

This program was terminated at the beginning of 1997 in
accordance with the Federal Agriculture Improvement and
Reform Act of 1996.
The primary objectives of the program were to conserve
soil and water resources. Along with annual agreements, cost
sharing was authorized for long-term agreements of 3–10
years.
The program is administered by county committees, with
review and approval by State committees and the Secretary.
Technical assistance is provided by the Natural Resources
Conservation Service and by the Forest Service.
The 1996 program level of $75 million was allocated to
States based on the highest priority soil and water resource
problems and treated 2.9 million acres. Practices prevented
approximately 12 million tons of soil erosion and saved
340,879 acre-feet of water.
STATE MEDIATION GRANTS
For grants pursuant to section 502(b) of the Agricultural Credit
Act of 1987, as amended (7 U.S.C. 5101–5106), ø$2,000,000¿
$4,000,000. (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
1996 actual

1997 est.

1998 est.

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

2
–2

4
–4

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

2
2
–2

2
4
–3

72.40

Program and Financing (in millions of dollars)

23.90

158
161
61
104 ................... ...................
–101
–100
–29

Total outlays (gross) .................................................

AGRICULTURAL CONSERVATION PROGRAM

75 ................... ...................

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

Identification code 12–0170–0–1–351

Obligations by program activity:
10.00 Total obligations (object class 41.0) ............................

72.40

8 ................... ...................

1996 actual

8 ...................
–8 ...................

86.93

Identification code 12–3315–0–1–302

–104 ................... ...................

1997 est.

1998 est.

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

1
1

2
1

87.00

Total outlays (gross) .................................................

89.00

Net budget authority and outlays:
Budget authority ............................................................

104 ................... ...................

31
2
2
75 ................... ...................
106

CORPORATIONS

DEPARTMENT OF AGRICULTURE
90.00

Outlays ...........................................................................

This grant program is authorized by Title V of the Agricultural Credit Act of 1987, P.L. 100–233, as amended. Grants
are made to States whose agricultural mediation programs
have been certified by the Farm Service Agency. A grant
will not exceed 70 percent of the total fiscal year funds that
a qualifying State requires to operate and administer its agricultural loan mediation program. In no case will the total
amount of a grant exceed $500,000 annually.

167

damaged by these natural disasters as well as Hurricanes
Andrew and Iniki, Typhoon Omar, and the Midwest Flood
of 1993.
No funding was provided in the 1997 Agriculture Appropriations Act for this program. However, $25 million in supplemental funding was provided in the 1997 Omnibus Consolidated Appropriations Act, P.L. 104–208, enacted September
30, 1996. The 1998 budget proposes no funding.

CORPORATIONS

GRANT OBLIGATIONS
1996 actual

Number of grants ........................................................................
Amount of grants (in millions of dollars). .................................

1997 est.

16
2

1998 est.

21
2

25
4

øEMERGENCY CONSERVATION PROGRAM¿
øFor an additional amount for emergency expenses resulting from
the effects of Hurricanes Fran and Hortense and other natural disasters, $25,000,000, to remain available until expended: Provided, That
the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget
and Emergency Deficit Control Act of 1985, as amended.¿ (Omnibus
Consolidated Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 12–3316–0–1–453

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

1996 actual

40.00

1997 est.

1998 est.

47 ...................

16
24
2
30
25 ...................
–4 ................... ...................
42
–18

49
2
–47 ...................

2 ...................

25 ...................

26
18
–25

18
7
47 ...................
–58
–7

COMMODITY CREDIT CORPORATION FUND
For fiscal year ø1997¿ 1998, such sums as may be necessary to
reimburse the Commodity Credit Corporation for net realized losses
sustained, but not previously reimbursed ø(estimated to be
$1,500,000,000 in the President’s fiscal year 1997 Budget Request
(H. Doc. 104–162)), but not to exceed $1,500,000,000¿, pursuant to
section 2 of the Act of August 17, 1961, as amended (15 U.S.C.
713a–11): Provided, That the total amount of all allotments and fund
transfers from the Corporation, authorized in section 11 of the Commodity Credit Corporation Charter Act (15 U.S.C. 714), is reduced
by $10,000,000.

7 ...................

72.40

86.90
86.93

Public enterprise funds:
REIMBURSEMENT FOR NET REALIZED LOSSES

21.40

23.90
23.95
24.40

The following corporations and agencies are hereby authorized to
make expenditures, within the limits of funds and borrowing authority available to each such corporation or agency and in accord with
law, and to make contracts and commitments without regard to fiscal
year limitations as provided by section 104 of the Government Corporation Control Act, as amended, as may be necessary in carrying
out the programs set forth in the budget for the current fiscal year
for such corporation or agency, except as hereinafter provided. (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)

Outlays (gross), detail:
Outlays from new current authority .............................. ...................
Outlays from current balances ......................................
25

16 ...................
42
7

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

30
25

25 ...................
58
7

OPERATIONS AND MAINTENANCE FOR HAZARDOUS WASTE
MANAGEMENT

For fiscal year ø1997¿ 1998, the Commodity Credit Corporation
shall not expend more than $5,000,000 for expenses to comply with
the requirement of section 107(g) of the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, 42
U.S.C. 9607(g), and section 6001 of the Resource Conservation and
Recovery Act, as amended, 42 U.S.C. 6961: Provided, That expenses
shall be for operations and maintenance costs only and that other
hazardous waste management costs shall be paid for by the USDA
Hazardous Waste Management appropriation in this Act.
EXPORT CREDIT

The Commodity Credit Corporation shall make available not less
than $5,500,000,000 in credit guarantees under its export credit guarantee program extended to finance the export sales of United States
agricultural commodities and the products thereof, as authorized by
section 202 (a) and (b) of the Agricultural Trade Act of 1978 (7
U.S.C. 5641).
EMERGING MARKETS EXPORT CREDIT

This program was authorized by the Agricultural Credit
Act of 1978 (16 U.S.C. 2201–05). It provides funds for sharing
the cost of emergency measures to deal with cases of severe
damage to farmlands and rangelands resulting from natural
disasters.
In 1996, pursuant to P.L. 104–134, enacted April 26, 1996,
$30 million in supplemental funding was provided to the
Emergency Conservation Program, to remain available until
expended. Under the 1996 program, cost-sharing and technical assistance were provided in 40 States as well as the
Virgin Islands and Guam to treat farmlands damaged by
floods, hurricanes, tornadoes, and wildfires. The 1996 program rehabilitated approximately 1,354,417 acres of farmland

The Commodity Credit Corporation shall make available not less
than $200,000,000 in credit guarantees under its export guarantee
program for credit expended to finance the export sales of United
States agricultural commodities and the products thereof to emerging
markets, as authorized by section 1542 of Public Law 101–624 (7
U.S.C. 5622 note). (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 1997.)
Unavailable Collections (in millions of dollars)
Identification code 12–4336–0–3–999

1996 actual

1997 est.

1998 est.

Balance, start of year:
01.99 Balance, start of year .................................................... ................... ................... ...................
Receipts:
02.01 70% customs duties on wool, reimbursement for
costs of National Wool Act ........................................
107 ................... ...................
Appropriation:
05.01 Commodity credit corporation fund ...............................
–107 ................... ...................

168

CORPORATIONS—Continued

THE BUDGET FOR FISCAL YEAR 1998
67.10
68.00

Public enterprise funds—Continued
COMMODITY CREDIT CORPORATION FUND—Continued
EMERGING MARKETS EXPORT CREDIT—Continued

Authority to borrow ....................................................
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

4,740

8,789

9,484

8,337

8,282

9,419

Total new budget authority (gross) ..........................

13,184

17,071

18,893

Change in unpaid obligations:
Unpaid obligations, start of year:
Obligated balance:
72.47
Authority to borrow ...............................................
72.90
Fund balance ........................................................

22,918
83

29,504
1,437

30,732
1,437

70.00

Unavailable Collections (in millions of dollars)—Continued
Identification code 12–4336–0–3–999

07.99

1996 actual

1997 est.

1998 est.

Total balance, end of year ............................................ ................... ................... ...................

74.47
74.90

Identification code 12–4336–0–3–999

Obligations by program activity:
Support and related programs:
00.01
Commodity purchases and related inventory transactions ..................................................................
00.02
Storage, transportation, and other obligations not
included above ......................................................
00.03
Feed Grains ...............................................................
Direct producer payments:
00.04
Wheat ....................................................................
00.05
Rice .......................................................................
00.06
Cotton ....................................................................
00.07
Wool and mohair ...................................................
00.08
Crop Option Pilot Program ....................................
00.09
Noninsured Assistance Program ...........................
00.10
Oilseeds Loan Deficency .......................................
00.11
Certificates issued ................................................
00.12
Crop disaster ........................................................
00.13
Livestock Assistance/DRAP ...................................
00.14
Operating expenses: Conservation Reserve Program .................................................................
00.15
Environmental Quality Incentives Program—EQIP
00.16
Wetlands Reserve Program .......................................
00.17
Farmland Protection Program ...................................
00.18
Conservation Farm Option .........................................
00.19
Wildlife Habitat Incentives Program .........................
00.20
Flood Risk Reduction Program ..................................
00.21
Reimbursement Agreement & Transfers to State
& Federal agencies ...............................................
Interest expenses:
00.22
Treasury .................................................................
00.23
Other .....................................................................
Conservation Program Technical Assistance:
00.25
EQIP Technical Assistance ....................................
00.26
Other techncial Assistance ...................................
00.91

1996 actual

1997 est.

1998 est.

641

682
371
3,795

72.99
73.10
73.20
73.40

Total unpaid obligations, end of year ..................

829
3,076

23,001
30,941
32,169
13,091
17,054
18,893
–13,610
–15,826
–18,998
8,459 ................... ...................
29,504
1,437

30,732
1,437

30,627
1,437

30,941

32,169

32,064

640

512
2,138

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts ..................................
Unpaid obligations, end of year:
Obligated balance:
Authority to borrow ...............................................
Fund balance ........................................................

74.99

Program and Financing (in millions of dollars)

1,952
455
692
56
5
60
...................
2
15
79
2
118
...................
14
...................
...................
...................

1,397
459
604
...................
...................
60
2
...................
...................
48

1,493
490
761
...................
...................
60
8
...................
...................
...................

1,774
1,913
180
180
119
164
2
17
2
11
15
23
10 ...................

247
18

344
17

337
17

6
20
20
1 ................... ...................

86.90
86.93
86.97
86.98
87.00

Outlays (gross), detail:
Outlays from new current authority ..............................
5 ...................
–10
Outlays from current balances ...................................... ................... ................... ...................
Outlays from new permanent authority .........................
4,743
7,843
7,959
Outlays from permanent balances ................................
8,862
7,983
11,049
Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Federal sources:
88.00
Federal sources-Sales to special activities .....
88.00
Other revenue ...................................................
88.00
Advance from foreign assistance programs
(P.L. 480) .....................................................
Non-Federal sources:
(62 stat.1070): Support and related programs:
88.40
Sales and other proceeds ............................
88.40
Assessments ................................................
88.40
Interest revenue ...........................................
88.40
Other revenue ...............................................
88.40
Loans repaid ................................................
88.40
Export Credit sales program repayments
88.40
Sales of Inventory on credit terms repayments .......................................................
88.40
Interest revenue ...........................................

13,610

15,826

18,998

–506
–560
–560
–4 ................... ...................
–908

–880

–877

–381
–116 ...................
–220
–66
–69
–160
–220
–190
–7 ................... ...................
–6,112
–6,407
–7,688
–2
–3
–6
–2 ................... ...................
–35
–30
–29

7,062

9,942

10,075

88.90

Total, offsetting collections (cash) ..................

–8,337

–8,282

–9,419

01.01
01.02

Total Operating Expenses .....................................
Direct loans:
Capital investment:
Commodity loans ..............................................
Purchase of administrative equipment ............

5,137
94

6,174
57

7,922
19

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

4,847
5,273

8,789
7,544

9,474
9,579

01.91

Total capital investment .......................................

5,231

6,231

7,941

01.92

12,293

16,173

18,016

02.02

Total support & related programs ........................
Special activities:
Operating expenses:
Commodities procured—PL 480 Titles II & III
Commod Costs .................................................
Other PL 480 operating Expenses ........................

506
292

560
321

560
317

02.91

Total special activities .........................................

798

881

877

10.00

Total obligations ........................................................

13,091

17,054

18,893

Summary of Budget Authority and Outlays

02.01

Budgetary resources available for obligation:
22.00 New budget authority (gross) ........................................
13,184
22.21 Unobligated balance transferred to other accounts
–93
22.22 Unobligated balance transferred from other accounts ...................
23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
40.47
Portion applied to debt reduction .............................
43.00
47.35
60.25

13,091
–13,091

17,071
18,893
–42 ...................
25 ...................
17,054
–17,054

18,893
–18,893

(in millions of dollars)

1996 actual
1997 est.
Enacted/requested:
Budget Authority .....................................................................
4,847
8,789
Outlays ....................................................................................
5,273
7,544
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................

Total:
Budget Authority .....................................................................
Outlays ....................................................................................

4,847
5,273

8,789
7,544

1998 est.

9,474
9,579
–25
–25
9,449
9,554

NOTES
Contingent liabilities, commitments, and other obligations do not become charges against the statutory borrowing
authority until they result in borrowing from Treasury.
Excludes amounts for activities currently funded in the CCC Export Guarantee Loan Programs account.

Status of Direct Loans (in millions of dollars)
10,395
–10,395

1,500
–1,500

784
–784

Appropriation (total) ............................................. ................... ................... ...................
Authority to borrow rescinded ................................... ................... ...................
–10
Permanent:
Appropriation (special fund, indefinite) ....................
107 ................... ...................

Identification code 12–4336–0–3–999

SHORT TERM CREDIT LOANS
Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1251 Repayments: Repayments and prepayments .................
1261 Adjustments: Capitalized interest .................................

1996 actual

1997 est.

1998 est.

385
388
385
–2
–3
–6
5 ................... ...................

CORPORATIONS—Continued

DEPARTMENT OF AGRICULTURE
1290

Outstanding, end of year ..........................................

388

385

379

COMMODITY LOANS
Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................
1131 Direct loan obligations exempt from limitation ............
5,137
6,174
7,922
1150

Total direct loan obligations .....................................

1210
1231
1251
1264

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Disbursements: Direct loan disbursements ...................
Repayments: Repayments and prepayments .................
Write-offs for default: Other adjustments, net .............

1290

Outstanding, end of year ..........................................

5,137

6,174

7,922

2,369
1,254
1,021
5,137
6,174
7,922
–6,112
–6,407
–7,687
–140 ................... ...................
1,254

1,021

As such, the estimate may not reflect the actual acreage
selected in 1997. USDA’s goal is that lands selected for the
CRP in 1997 will only be those lands where the benefits
to the Nation of retirement are greater than the benefits
of continued production. Land retired in 1997 also may include high-priority partial-field lands that are retired through
the continuous signup process and acreage proposed by
States.
Appropriations are made to reimburse the Corporation for
net realized losses sustained in carrying out its operations:
1998 ESTIMATE
[In millions of dollars]

1,256
Program

SALES OF INVENTORY ON CREDIT TERMS
Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1251 Repayments: Repayments and prepayments .................

32
30
30
–2 ................... ...................

1290

Outstanding, end of year ..........................................

The Commodity Credit Corporation (CCC) was created to:
stabilize, support, and protect farm income and prices; help
maintain balanced and adequate supplies of agricultural commodities, their products, foods, feeds, and fibers; and help
in their orderly distribution. Funding available for transfers
or reimbursable agreements under Section 11 of the CCC
Charter Act have been reduced by $10 million in 1998 to
reflect the direct appropriation of funds for the Emerging
Markets Program through FAS.
The Corporation’s capital stock of $100 million is held by
the U.S. Treasury. Under present law, up to $30 billion may
be borrowed from the U.S. Treasury to finance operations.
Current, indefinite appropriation authority is requested to
cover all net realized losses. Appropriations to the Corporation
for net realized losses have no effect on budget authority,
as they are used to repay debt directly with the Treasury.
Budget assumptions.—The following general assumptions
form the basis for the Corporation’s 1997 and 1998 budget
estimates: (a) national income will rise both in 1997 and
1998 from the present level; (b) 1997 crop production will
increase from 1996 crop levels for most commodities; (c) generally, exports of agricultural commodities in 1998 are expected to be higher than 1997 levels; (d) yields for the 1997
crops are based on recent averages adjusted for trend; (e)
acreage allotments and marketing quotas will be in effect
for the 1997 crops of certain kinds of tobacco; and (f) poundage quotas will be in effect for the 1997 crop of peanuts.
It is difficult to accurately forecast requirements for the
year ending September 30, 1998, since the projections are
subject to complex and unpredictable factors such as weather,
other factors which affect the volume of production of crops
not yet planted, feed and food needs here and overseas, and
available dollar exchange.
The Federal Agriculture Improvement and Reform Act of
1996 (the 1996 Act) enacted April 4, 1996, retains the CRP
as part of the Environmental Conservation Acreage Reserve
Program (ECARP) but changed the funding source from direct
appropriation to the Commodity Credit Corporation. Only
very minimal CCC funds were used from program operations
in fiscal year 1996 since annual rental payments had been
made very early in the fiscal year using CRP appropriated
funds. The CRP is assumed to be gradually increased to 36.4
million acres by 2001. The crop assumptions reflect a new
enrollment in 1997 to add approximately 19.0 million acres,
and enrollment of new and expiring acreage is assumed to
be guided by eligibility and selection criteria presented in
the proposed rule announced September 23, 1996.
These assumptions have been developed for budget purposes as the best estimate of acreage bid into the program
that will be both eligible and of high environmental quality.

169

Farm income and price support:
Commodity loans ....................................................................
Feed grain payments ..............................................................
Wheat payments .....................................................................
Rice payments ........................................................................
Cotton payments .....................................................................
Export Enhancement Program ................................................
Other support and related ......................................................
Other items not distributed by program:
Interest ...............................................................................
All other ..............................................................................

Gross
obligations

Net outlays

Net realized
loss for year

7,922
3,076
1,493
490
761
500
952

234
3,076
1,493
490
761
500
285

0
3,076
1,493
490
761
500
324

354
122

140
408

135
146

Total, farm income and price-support programs ..........
Conservation programs:
Conservation reserve program ................................................
Environmental quality incentives program .............................
Wetlands reserve program ......................................................
Farmland protection program .................................................
Conservation farm option program ........................................
Wildlife habitat incentives program .......................................

15,670

7,387

6,925

1,928
200
164
18
15
22

1,928
109
129
18
4
4

1,916
109
129
18
4
4

Total, conservation programs .............................................
Total, Commodity Credit Corporation ........................

2,347
18,017

2,192
9,579

2,180
9,105

PROGRAMS OF THE CORPORATION

Price support, marketing assistance loans, and related stabilization programs.—The Corporation conducts programs to
support farm income and prices and stabilize the market for
agricultural commodities. Price support is provided to producers of agricultural commodities through loans, purchases, payments, and other means. This is done mainly under the Commodity Credit Corporation Charter Act, as amended, the Agricultural Act of 1949, as amended, and the Federal Agriculture
Improvement and Reform Act of 1996 (the 1996 Act).
Price support is mandatory for tobacco, peanuts, and dairy
products. Marketing assistance loans are mandatory for
wheat, feed grains, oilseeds, upland cotton, and rice. Loans
are also required to be made for sugar and extra long staple
cotton.
One method of providing support is loans to and purchases
from producers. With limited exceptions, loans made on commodities are nonrecourse. The commodities serve as collateral
for the loan and on maturity the producer may deliver or
forfeit such collateral to satisfy the loan obligation without
further payment.
Direct purchases may be made from processors as well as
producers, depending on the commodity involved. Also, special
purchases are made under various laws for the removal of
surpluses; for example, the Act of August 19, 1958, as amended, and section 416 of the Agricultural Act of 1949, as amended.
Production flexibility contract payments.—The 1996 Act requires that the Corporation offer eligible producers a onetime opportunity to execute 7-year production flexibility contracts. Production flexibility contract participants who comply
with applicable provisions receive annual payments beginning
in 1996 and ending in 2002. Participants received a 50-percent advance payment for the 1996 crop within 30 days after
contract approval. The balance of the 1996 payment was issued by September 30, 1996. In subsequent years, participants will receive final payments by September 30, with an

170

CORPORATIONS—Continued

Public enterprise funds—Continued
COMMODITY CREDIT CORPORATION FUND—Continued
PROGRAMS OF THE CORPORATION—Continued

option to receive advances on December 15 or January 15.
Depending on each contract participant’s prior contract-crop
acreage history and payment yield, as well as total program
participation, the participant shares a portion of a statutorily
specified, annual dollar amount. In return, participants must
comply with certain requirements regarding land conservation, wetland protection, and agricultural use. Contract crops,
for the purposes of determining eligible cropland and payments, include wheat, corn, grain sorghum, barley, oats, upland cotton, and rice. No production adjustment requirements
or related provisions are included in this program, except
for restrictions on the planting of fruits and vegetables and
other minor requirements. The one-time enrollment took place
between May 1 and August 1, 1996; however, producers with
Conservation Reserve Program (CRP) contracts will have the
opportunity to enroll acreage currently in the CRP that meets
the eligibility requirements for a production flexibility contract. These enrollments will occur as CRP contracts expire.
Marketing assessments.—The 1949 Act mandates assessments for tobacco, and the 1996 Act requires such assessments for peanuts and sugar.
Peanut price support program.—The 1996 Act and the Agricultural Adjustment Act of 1938, as amended (the 1938 Act),
provide for a peanut loan and poundage quota program for
the 1996 through 2002 peanut crops. The 1996 Act makes
the peanut program, effectively, a no-cost program. The Secretary is required to provide a nonrefundable per-pound marketing assessment equal to 1.15 percent of the national average quota or additional peanut loan rate for the applicable
1996 crop and 1.2 percent of the national average quota or
additional peanut loan rate for each of the applicable 1997
through 2002 crops. Assessments will be used to offset losses
in area quota pools, and any assessments not required to
cover these losses will be remitted to the Treasury. If the
use of all other available authority does not produce funds
sufficient to cover losses in area quota pools, the Secretary
must increase the marketing assessment by an amount that
will cover the losses.
Sugar Program.—The 1996 Act requires that loans be made
available to eligible sugar processors for the 1996 through
2002 crops of domestically produced sugar beets and sugarcane. The announced Tariff Rate Quota (TRQ) determines
the type of loan in effect. If the TRQ is not above 1,500,000
short tons, raw value, at the time of loan approval and has
never been above 1,500,000 short tons, raw value, at any
time during the fiscal year, recourse loans will be in effect.
If the TRQ exceeds 1,500,000 short tons, raw value, at the
time of loan approval or has exceeded 1,500,000 short tons,
raw value, at any time during the fiscal year, nonrecourse
loans will be in effect.
Options Pilot Program.—The 1996 Act authorizes the Secretary, until December 31, 2002, to conduct a pilot program
for one or more agricultural commodities supported under
Title I of the 1996 Act to ascertain whether futures and
options contracts can reasonably protect producers from the
financial risks of fluctuations in price, yield, and income inherent in the production and marketing of the commodities.
The Secretary shall administer the pilot program through
the Risk Management Agency using CCC funds. To the maximum extent practicable, the Secretary shall operate the pilot
program in a budget neutral manner.
The Federal Crop Insurance Reform Act of 1994 expanded
current crop insurance authorities to provide for catastrophic
coverage at 50 percent yield protection at a flat fee for crops
currently covered by insurance programs. Where crop insurance is not available, producers of crops for food and fiber

THE BUDGET FOR FISCAL YEAR 1998

and certain other crops will be covered under the Noninsured
Assistance Program. Effective with the 1996 crop, the Farm
Service Agency administers the Noninsured Assistance Program, and the Secretary may use CCC funds to carry out
the program. The program will reimburse producers at the
same rates and terms as the catastrophic program where
assistance is triggered by area wide disasters.
Dairy.—The 1996 Act provides for a dairy price support
program that sets the minimum support price for milk at
$10.35 per hundredweight for calendar year 1996, $10.20 per
hundredweight for calendar year 1997, $10.05 per hundredweight for calendar year 1998, and $9.90 per hundredweight
for calendar year 1999. In lieu of the price support program,
the 1996 Act establishes a recourse loan program beginning
on January 1, 2000, and continuing through 2002, during
which time processors will be eligible for recourse loans on
dairy products at a milk equivalent rate of $9.90 per hundredweight. The Food Security Act of 1985, as amended (the 1985
Act), authorizes the Dairy Export Incentive Program (DEIP)
through calendar year 2002. The DEIP provides subsidies
to exporters of U.S. dairy products to help them compete
with other subsidizing nations.
Payment limitations.—The 1996 Act and the Food Security
Act of 1985, as amended, limit the amount of production
flexibility contract payments during any fiscal year to $40,000
and the sum of marketing assistance gains and loan deficiency payments during any crop year to $75,000.
Conservation programs.—The Environmental Conservation
Acreage Reserve Program (ECARP) was re-established by the
1996 Act to begin in 1996 and continue through 2002. ECARP
consists of the Conservation Reserve Program (CRP), the Wetlands Reserve Program (WRP), and the Environmental Quality Incentives Program (EQIP). The 1996 Act amended the
1985 Act to require the use of CCC funds for these programs.
The EQIP combines the functions of the former Agricultural
Conservation Program (ACP), the Water Quality Incentives
Program (WQIP), the Great Plains Conservation Program
(GPCP), and the Colorado River Basin Salinity Control Program (CRSC). The 1996 Act provided that EQIP would be
phased in over a 6-month interim period, ending not later
than October 4, 1996. CCC funding of $130 million was provided for the interim 1996 program. Thereafter, through fiscal
year 2002, $200 million in CCC funding must be made available annually for the program.
The Farmland Protection Program (FPP) authorizes the
Secretary to assist State and local governments in purchasing
conservation easements. The Secretary shall not use more
than $35 million in CCC funds to carry out this program.
The Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997 (the
1997 Act) limits new obligations under FPP to $2.0 million
in fiscal year 1997.
The Wildlife Habitat Incentives Program makes available
assistance to help landowners improve wildlife habitat on private lands. A total of $50 million in CRP funds must be
made available for fiscal years 1996 through 2002 for this
program.
The Conservation Farm Option Program (CFO) is a pilot
program for producers of wheat, feed grains, upland cotton,
and rice who are eligible for production flexibility contracts.
Under this program, producers may consolidate their production flexibility contract, CRP, WRP, and EQIP payments into
one annual payment if they enter into a 10-year contract
and adopt an approved conservation farm plan. CCC must
make available the following funding for the CFO: $7.5 million in fiscal year 1997, $15 million in fiscal year 1998, $25
million in fiscal year 1999, $37.5 million in fiscal year 2000,
$50 million in fiscal year 2001, and $62.5 million in fiscal
year 2002. Total authorized funding is $197.5 million. How-

CORPORATIONS—Continued

DEPARTMENT OF AGRICULTURE

ever, the 1997 Act limits new obligations under CFO to $2.0
million in fiscal year 1997.
Under the terms of the Flood Risk Reduction Program as
enacted in the 1996 Act, during each of fiscal years 1996
through 2002, the Secretary may enter into a contract with
a producer who has contract acreage in the production flexibility program that is frequently flooded. Producers can receive up to 95 percent of the projected production flexibility
contract payments the producer would otherwise have received from the time of enrollment in the Flood Risk Reduction Program through September 30, 2002. In return, producers must terminate their production flexibility contract with
respect to the enrolled acreage, comply with swampbuster
and conservation compliance provisions, and forgo future disaster payments, crop insurance payments, conservation program payments, and loans for contract commodities, oilseeds,
and extra long staple cotton. The 1996 Act provided that
the Secretary shall carry out the program through the Commodity Credit Corporation.
Supply and foreign purchases.—The Corporation can procure from domestic and foreign sources food, agricultural commodities, and products and related materials to supply the
needs of Federal agencies, foreign governments, and private
and international relief agencies, under section 5 (b) and (c)
of the Commodity Credit Corporation Charter Act, as amended.
Commodity exports.—The Corporation promotes the export
of agricultural commodities and products through sales for
dollars or foreign currency, payments, extension of credit, assumption of certain risks, and conduct of other operations
with respect to the exportation of commodities. Such commodities and products may be those held in private trade channels
as well as those acquired by the Corporation. These programs
are carried out under the authority of the CCC Charter Act
and other specific legislation.
Foreign donations.—The Corporation may furnish commodities under the authority of section 416(b) of the Agricultural
Act of 1949 to carry out programs of assistance in developing
countries and friendly countries and pay costs associated with
making the commodities available. The Corporation may also
use its funds to furnish commodities overseas under the authority of the Food for Progress Act of 1985; however, not
more than 500,000 metric tons of commodities may be provided under this authority in each fiscal year, and not more
than $30 million of the funds of the Corporation (exclusive
of the costs of commodities) may be used for each fiscal year.
In addition, under the Food for Progress Act of 1985, not
to exceed $10 million of the Corporation’s funds or commodities may be used each fiscal year to enhance the development
of private sector agriculture in countries receiving commodities under the Food for Progress Act of 1985.
Loan operations.—The following table reflects commodity
loan operations of the Corporation:
[In millions of dollars]

Item

1996 actual

1997 est.

1998 est.

Loans outstanding, gross, start of year:
Commodity Credit Corporation ..................................
Additional loans made ..............................................
Deduct:
Loans repaid ..............................................................
Write-offs ...................................................................

2,368
5,137

1,254
6,174

1,021
7,923

¥6,112
¥139

¥6,407
......................

¥7,688
......................

Total loans outstanding, gross, end of year

1,254

1,021

1,256

Loans outstanding, gross, end of year:
Commodity Credit Corporation ..................................

1,254

1,021

1,256

Loans receivable, net .....................................................

1,254

1,021

1,256

Inventory operations.—The following table reflects the inventory operations applicable to the preceding programs:

171

AGRICULTURAL COMMODITIES
[In millions of dollars]

Item

1996 actual

On hand, start of year, gross ........................................

1997 est.

1998 est.

702

485

423

Acquisitions:
Purchases ..................................................................
Carrying charges:
Charges to inventory .................................................
Storage and handling (non-add) ..............................
Transportation (non-add) ..........................................

636

683

640

5
(45)
(1)

......................
(36)
(2)

......................
(35)
(1)

Total acquisitions .............................................

641

683

640

Dispositions:
Domestic donations to:
Institutions ............................................................

......................

Total domestic donations .................................

......................

Export donations ........................................................
Sales and transfers:
Special programs: Title II, Public Law 480 ..........
Title III, Public Law 480 .......................................
Other sales ............................................................
Net loss or gain (¥) on sales and transfers

433
74
379
¥137

537
22
116
¥10

537
23
......................
......................

Total sales and transfers .................................

749

665

560

Total dispositions .............................................

858

745

640

On hand, end of year, gross .........................................

485

423

On hand, end of year, net .............................................

485

423

Other data.—The following table reflects other data which
are applicable to price support and related programs:
DATA ON SUPPORT AND RELATED PROGRAMS
[In millions of dollars]

Item

Loans made .................................................................................
Loans repaid ................................................................................
Loans outstanding, end of year ..................................................
Acquisitions .................................................................................
Cost of commodities sold ...........................................................
Cost of commodities donated .....................................................
Inventory, end of year .................................................................
Investment in loans and inventory, end of year ........................
Direct producer payments ...........................................................
Net expenditures ..........................................................................
Realized losses ............................................................................

1996 actual

5,137
6,112
1,254
641
749
109
485
1,740
5,902
5,273
7,765

1997 est.

6,174
6,407
1,021
683
665
80
423
1,444
7,239
7,544
9,002

1998 est.

7,923
7,688
1,256
640
560
80
423
1,679
8,034
9,579
9,105

Operating expenses.—The Corporation carries out its functions through utilization of employees and facilities of other
Government agencies. Administrative expenses are incurred
by: the Farm Service Agency (FSA); the Foreign Agricultural
Service; the Natural Resources Conservation Service; the Risk
Management Agency; other agencies of the Department engaged in the Corporation’s activities; and the Office of Inspector General for audit functions. Additional expenses are incurred by FSA county offices for work related to programs
of the Corporation, other FSA expenses offset by revenue,
custodian, and agency expenses of the Federal Reserve banks
and lending agencies, and miscellaneous costs.
Expenses are incurred for acquisition, operation, maintenance, improvement, or disposition of existing property that
the Corporation owns or in which it has an interest. These
expenses are treated as program expenses. Such program expenses include inspection, classing, and grading work performed on a fee basis by Federal employees or Federal- or
State-licensed inspectors; and special services performed by
Federal agencies within and outside this Department. Most
of these general expenses, including storage and handling,
transportation, inspection, classing and grading, and producer
storage payments, are included in program costs. They are
shown in the program and financing schedule in the entries

172

CORPORATIONS—Continued

THE BUDGET FOR FISCAL YEAR 1998

Public enterprise funds—Continued

FINANCING

COMMODITY CREDIT CORPORATION FUND—Continued
PROGRAMS OF THE CORPORATION—Continued

entitled ‘‘Storage, transportation, and other obligations not
included above,’’ and ‘‘Producer storage payments.’’
Section 161 of the 1996 Act amended the CCC Charter
Act to significantly limit the use of CCC funds. CCC no longer
has authority to purchase personal property except within
authorized limitations. CCC spending for equipment or services relating to automated data processing (ADP), information
technologies, or related items (including telecommunications
equipment and computer hardware and software, but excluding reimbursable agreements) was limited to $170 million
in fiscal year 1996, and $275 million for the six-year period
including fiscal years 1997 through 2002, unless additional
amounts for such contracts and agreements are provided in
advance in appropriation acts. The 1996 Act also requires
that CCC submit an itemized report to Congress on a quarterly basis of all expenditures, excluding program payments,
of over $10,000.
Section 161 of the 1996 Act also amended section 11 of
the CCC Charter Act to limit the use of CCC funds for the
transfer and allotment of funds to State and Federal agencies.
Beginning on October 1, 1996, the total of these allotments
and transfers under that section in a fiscal year, including
agreements for ADP or information resource management activities, may not exceed the total of such alloments and transfers in fiscal year 1995. The obligations for these Section
11 activities in fiscal year 1995 were $45.599 million.
The Corporation receives reimbursement for grain requisitioned pursuant to Public Law 87–152 by the States from
Corporation stocks to feed resident wildlife threatened with
starvation through the appropriation reimbursement for net
realized losses. There have been no requisitions in recent
years, however.
SPECIAL ACTIVITIES

These activities are carried out under authority of section
5(g) of the Corporation’s charter act and specific statutory
authorizations or directives with respect thereto that are currently in effect or which may subsequently be enacted.
A summary of such current activities not included under
other designated activities is as follows:
1998 estimate [In millions of
dollars]
Item

(1) Financing sales of agricultural commodities for foreign currencies
or for dollars on credit terms ...................................................................
(2) Commodities supplied in connection with dispositions abroad (Title
II) ...............................................................................................................
(3) Commodities supplied in connection with dispositions abroad (Title
III) ..............................................................................................................
Total ..................................................................................................

Gross
obligations

Outlays
(reimbursable)

123

177

837

839

990

1,047

The Corporation receives appropriations or reimbursement
for the cost of these activities as described under each.
Activities currently being carried out are as follows (see
Foreign Assistance programs for details of items (1), (2) and
(3)).
(1) Financing the sale and exportation of agricultural commodities for foreign currencies or for dollars (title I, of P.L.
480).
(2) Commodities supplied in connection with dispositions
abroad (title II, of P.L. 480).
(3) Commodities supplied in connection with dispositions
abroad (title III, of P.L. 480).
(4) Commodities supplied in connection with dispositions
abroad (Food for Progress Act of 1985).

Borrowing authority.—The Corporation has an authorized
capital stock of $100 million held by the U.S. Treasury and,
effective in 1988, authority to have outstanding borrowings
up to $30 billion at any one time.
Funds are borrowed from the Treasury and may also be
borrowed from private lending agencies and others. The Corporation reserves a sufficient amount of its borrowing authority to purchase at any time all notes and other obligations
evidencing loans made to the Corporation by such agencies
and others. All bonds, notes, debentures, and similar obligations issued by the Corporation are subject to approval by
the Secretary of the Treasury as required by the Act of March
8, 1938.
Interest on borrowings from the Treasury (and on capital
stock) is paid at a rate based upon the average interest rate
of all outstanding marketable obligations (of comparable maturity date) of the United States as of the preceding month.
Interest is also paid on other notes and obligations at a rate
prescribed by the Corporation and approved by the Secretary
of the Treasury.
The Department of Agriculture and Related Agencies Appropriation Act, 1966, made provision for terminating interest
after June 30, 1964 on the portion of the Corporation’s borrowings from the Treasury equal to the unreimbursed realized
losses recorded on the books of the Corporation after the
end of the fiscal year in which such losses are realized.
POSITION WITH RESPECT TO BORROWING AUTHORITY, END OF YEAR
[In millions of dollars]

Item

1996 actual

Statutory borrowing authority ......................................................
Deduct: Borrowings from Treasury ..............................................
Net statutory borrowing authority available ...............................

30,000
496
29,504

1997 est.

1998 est.

30,000
6,859
23,141

30,000
15,686
14,314

Note.—Accounts payable, accrued liabilities, and other outstanding obligations not reflected on this table do
not become charges against the statutory borrowing authority until they result in borrowings from the Treasury.

Contract authority.—Price support and other programs required by statute may result in the Corporation incurring
obligations in excess of available funds and borrowing authority. Such obligations are liquidated from subsequent appropriations and other funds that may become available to the
Corporation. Any increase in obligations in excess of available
fund resources is reported as contract authority in the year
involved; a decrease is reported as the application of appropriations and other funds to liquidate the authority.
Appropriations.—Under section 2 of Public Law 87–155 annual appropriations are authorized for each fiscal year to
reimburse the Corporation for net realized losses incurred
as of the close of each year.
The special activities are financed as indicated in the program descriptions above. In addition to certain reimbursements from other agencies, appropriations are made for foreign assistance programs.
Deficit.—The net realized losses of the Corporation have
previously been reimbursed as follows:
SUPPORT AND RELATED PROGRAMS
[In millions of dollars]

1996 actual

Realized losses, 1933 to 1996, inclusive ...................................................... ......................
244,921
Reimbursements by the Treasury:
Reimbursements of realized losses:
Appropriations (57 times) ................................................................
239,479 ....................
Note cancellations (6 times) ............................................................
2,698 ....................
Less dividends paid to Treasury (4 times) ......................................
¥138 ....................
Total reimbursements for net realized losses .............................

242,039 ....................

Other reimbursements:
Appropriations (2 times) ...........................................................................
Note cancellation (1 time) ........................................................................

542 ....................
56 ....................

Total other reimbursements ..................................................................

598 ....................

CORPORATIONS—Continued

DEPARTMENT OF AGRICULTURE
Total ...................................................................................................... ......................

242,637

Realized deficit as of September 30, 1996, support and related programs ......................

2,284

4999

Total liabilities and net position ............

13,275

7,293

173

14,524

23,032

Note.—In addition to obligations other than liabilities, the Corporation does not reflect in its accounts claims
by the Corporation on which adequate proof has not been established.

SPECIAL ACTIVITIES
Realized losses, 1948 to 1996, inclusive ...................................................... ......................
53,355
Excess amounts appropriated to reimburse cost of special activities ......................
578
Transfer of P.L. 480 funds to credit reform account .................................... ......................
555
Reimbursements by the Treasury:
Appropriations (50 times) .....................................................................
53,918 ....................
Note cancellations (4 times) ................................................................
536 ....................
Other reimbursements: Sale proceeds (5 times) .................................
34 ....................

Object Classification (in millions of dollars)
Identification code 12–4336–0–3–999

Direct obligations:
Transportation of things ...........................................
Other services:
Other services .......................................................
Other services: Storage and handling ..................
Supplies and materials: Costs of Commodities Sold
or Donated-PL 480 ................................................
Equipment .................................................................
Grants, subsidies, and contributions ........................
Interest and dividends ..............................................

1997 est.

1998 est.

54,488

Realized deficit as of September 30, 1996, special activities ..................... ...................... ....................

362

353

348

245
45

113
36

141
35

641
94
5,797
264

683
57
8,717
361

640
19
8,874
354

7,448

10,320

10,411

33.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations:
Supplies and materials: Cost of commodities sold
or donated—PL 480 .............................................
Investments and loans ..............................................
Subtotal, reimbursable obligations ...............................

506
5,137
5,643

560
6,174
6,734

560
7,922
8,482

99.9

Total reimbursements ....................................................................... ......................

22.0

1996 actual

Total obligations ........................................................

13,091

17,054

18,893

25.2
25.2
26.0
31.0
41.0
43.0

Statement of Operations (in millions of dollars)
99.0
Identification code 12–4336–0–3–999

1995 actual

1996 actual

1997 est.

1998 est.

0101
0102

Revenue ...................................................
Expense ....................................................

1,933
–3,498

1,083
–8,848

1,425
–10,427

1,366
–10,471

0109

Net income or loss (–) ............................

–1,565

–7,765

–9,002

–9,105

26.0

Balance Sheet (in millions of dollars)
Identification code 12–4336–0–3–999

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
1107
Advances and prepayments ...........
Non-Federal assets:
1206
Receivables, net ..................................
1207
Advances and prepayments ................
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1601
Direct loans, gross ..............................
1602
Interest receivable ..............................
1603
Allowance for estimated uncollectible
loans and interest (–) ....................
1604
Direct loans and interest receivable,
net ..................................................
1699
1701
1702
1703
1704
1799

1801
1802
1803

Value of assets related to direct
loans ..........................................
Defaulted guaranteed loans, gross ....
Interest receivable ..............................
Allowance for estimated uncollectible
loans and interest (–) ....................
Defaulted guaranteed loans and interest receivable, net .....................
Value of assets related to loan
guarantees .................................
Other Federal assets:
Cash and other monetary assets .......
Inventories and related properties .....
Property, plant and equipment, net

1999

1995 actual

1996 actual

1997 est.

1998 est.

COMMODITY CREDIT CORPORATION FUND
–704

–1,596

–469

5,473
66

2,489
54

10,028
54

18,362
54

1,774
7

1,185
14

105
14

85
14

2,754
236

1,643
193

1,406
188

1,635
200

–88

–82

–80

–78

2,902

1,754

1,514

1,757

2,902
5,653
27

1,754
5,552
22

1,514
5,504
20

1,757
5,480
20

–2,815

2,865

2,759

2,709

2,759

2,709

2,685

107
688
97

54
485
95

54
423
92

54
423
67

Total assets ........................................
LIABILITIES:
Federal liabilities:
2101
Accounts payable ................................
2102
Interest payable ..................................
2103
Debt .....................................................
2104
Resources payable to Treasury ...........
2105
Other ...................................................
Non-Federal liabilities:
2201
Accounts payable ................................
2204
Liabilities for loan guarantees ...........
2207
Other ...................................................

13,275

7,293

14,524

23,032

2
297
7,081
3,042
390

8
..................
496
2,801
398

8
269
6,694
2,700
398

8
264
15,787
2,821
398

188
19
1,808

48
19
2,499

48
19
3,209

48
19
2,407

2999

12,827

6,269

13,345

21,752

348
100

924
100

1,079
100

1,180
100

448

1,024

1,179

1,280

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
3200 Invested capital .......................................
3999

Total net position ................................

Program and Financing (in millions of dollars)
Identification code 12–4336–4–3–999

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Support and related programs:
Operating expenses:
Direct producer payments:
Conservation Program: Direct Producer Payments:
00.14
Total Operating Expenses ............................ ................... ...................

–25

10.00

Total obligations (object class 41.0) ........................ ................... ...................

–25

22.00
23.95

–25
25

New budget authority (gross), detail:
Authority to borrow ........................................................ ................... ...................
................... ...................

–25
–25

73.10
73.20

–25
25

86.97

Outlays (gross), detail:
Outlays from new permanent authority ......................... ................... ...................

–25

89.00
90.00

–25
–25

2,685

2,865

(Legislative proposal, subject to PAYGO)

67.10

This schedule reflects proposed savings to offset the Administration’s proposal to strengthen the farm program safety
net. (See discussion under crop insurance.) This proposal
would amend current Conservation Reserve Program (CRP)
haying and grazing provisions, which have resulted in overgrazing in some areas because of repeated emergency designations, to permit haying and grazing on CRP acreage once
every three years in exchange for a 50 percent reduction
in the contract rental payment. The change is estimated to
reduce CRP outlays by $25 million per year.

174

CORPORATIONS—Continued

THE BUDGET FOR FISCAL YEAR 1998

Public enterprise funds—Continued

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

COMMODITY CREDIT CORPORATION EXPORT LOANS PROGRAM
ACCOUNT

Identification code 12–1336–0–1–351

(INCLUDING TRANSFERS OF FUNDS)

For administrative expenses to carry out the Commodity Credit
Corporation’s export guarantee program, GSM 102 and GSM 103,
ø$3,820,000¿ $3,975,000; to cover common overhead expenses as permitted by section 11 of the Commodity Credit Corporation Charter
Act and in conformity with the Federal Credit Reform Act of 1990,
of which not to exceed ø$3,231,000¿ $3,327,000 may be transferred
to and merged with the appropriation for the salaries and expenses
of the Foreign Agricultural Service, and of which not to exceed
ø$589,000¿ $648,000 may be transferred to and merged with the
appropriation for the salaries and expenses of the Farm Service Agency. (Agriculture, Rural Development, Food and Drug Administration,
and Related Agencies Appropriations Act, 1997.)

1996 actual

1997 est.

1998 est.

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Loan guarantee levels ...................................................

3,230

5,500

5,700

2159

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Subsidy rate ...................................................................

3,230

5,500

5,700

10.20

8.00

9.26

2329

10.20

8.00

9.26

328

Weighted average subsidy rate .................................
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority ...............................................

390

528

Total subsidy budget authority .................................
Guaranteed loan subsidy outlays:
2340 Subsidy outlays ..............................................................

328

390

528

339

430

514

2349

Total subsidy outlays ................................................

339

430

514

3510
3590

Administrative expense data:
Budget authority—administrative expenses .................
Outlays—adminsitrative expenses ................................

3
3

4
4

2339

Program and Financing (in millions of dollars)
Identification code 12–1336–0–1–351

00.02
00.07
00.08
00.09

Obligations by program activity:
Guaranteed Loan Subsidy ..............................................
Reestimates of guaranteed loan subsidy ......................
Interest on reestimates of guaranteed loan subsidy
Administrative expenses ................................................

10.00

Total obligations ........................................................

1996 actual

1997 est.

1998 est.

328
390
528
45 ................... ...................
4 ................... ...................
3
4
4
380

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
82
22.00 New budget authority (gross) ........................................
999
22.10 Resources available from recoveries of prior year obligations ....................................................................... ...................
22.40 Capital transfer to general fund ...................................
–81

394

532

620
4

220
350

21.40

23.90
23.95
24.40

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
Permanent:
60.05
Appropriation (indefinite) ..........................................
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................
70.00

Total new budget authority (gross) ..........................

1,000
–380
620

38 ...................
–48
–37
614
–394

533
–532

220 ...................

424 ...................

346

572 ................... ...................
999

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
78
73.10 New obligations .............................................................
380
73.20 Total outlays (gross) ......................................................
–342
73.45 Adjustments in unexpired accounts .............................. ...................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................
117

350

72.90

86.90
86.97
86.98

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

87.00

Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Downward Reestimate ................................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

117
39
394
532
–434
–518
–38 ...................
39

3
4
303 ...................
36
430

4
294
220

342

518

434

–572 ................... ...................

427
–230

4
434

350
518

This is the program account for the GSM–102 and GSM–
103 CCC Export Credit Guarantee Programs. The Export
Credit Guarantee Program (GSM–102) covers credit terms
of up to 3 years. The Intermediate Export Credit Guarantee
Program (GSM–103) covers longer credit terms of between
3 and 10 years. Under these programs, CCC does not provide
financing, but guarantees payments due from foreign banks
and buyers. Because payment is guaranteed, financial institutions in the United States can offer competitive credit terms
to foreign banks, usually with interest rates based on the
London Inter-Bank Offered Rate (LIBOR). If the foreign bank
fails to make any payment as agreed, the exporter or assignee
must submit a notice of default to the CCC. A claim for
loss must be filed, and the CCC will promptly pay claims
found to be in good order. CCC usually guarantees 98 percent
of the principal payment due and interest based on a percentage of the one-year Treasury rate.
A portion of the guarantees made available under the
GSM–102 program is provided as Supplier Credit Guarantees.
Under this activity, CCC guarantees a portion of payment
due from importers under short-term financing (for up to
180 days) that exporters have extended directly to the importers for the purchase of U.S. agricultural commodities and
products. CCC does not provide financing, but guarantees
payment due from an importer. A substantially smaller portion of the value of exports (currently 50 percent) is guaranteed under Supplier Credit Guarantees than under regular
GSM–102 guarantees where CCC is guaranteeing foreign
bank obligations.
A portion of the GSM–102 guarantees is also made available as Facilities Guarantees. Under this activity, CCC guarantees export financing for capital goods and services to improve handling, marketing, processing, storage, or distribution
of imported agricultural commodities and products.
The subsidy estimates for the GSM–102 and GSM–103 programs are determined in large part by the obligor’s sovereign
or non-sovereign country risk grade. These grades are developed annually by the International Credit Risk Assessment
System Committee (ICRAS). In unusual circumstances, an
ICRAS grade for a country may change during the fiscal
year. The default estimates for GSM guarantees are determined in large part by the risk premia assigned for each
risk grade. The risk premia usually do not change from year
to year.
As required by the Federal Credit Reform Act of 1990,
this account records, for this program, the subsidy costs associated with the credit guarantees committed in 1992 and beyond (including modifications of credit guarantees that resulted from obligations or commitments in any year), as well

CORPORATIONS—Continued

DEPARTMENT OF AGRICULTURE

as administrative expenses of this program. The subsidy
amounts are estimated on a present value basis; the administrative expenses are estimated on a cash basis.
Object Classification (in millions of dollars)
Identification code 12–1336–0–1–351

25.3

1996 actual

1997 est.

1998 est.

41.0

Purchases of goods and services from Government
accounts ....................................................................
Grants, subsidies, and contributions ............................

3
377

4
390

4
528

99.9

Total obligations ........................................................

380

394

532

COMMODITY CREDIT CORPORATION EXPORT GUARANTEE FINANCING
ACCOUNT
Program and Financing (in millions of dollars)
Identification code 12–4337–0–3–351

1996 actual

1997 est.

1998 est.

Obligations by program activity:
00.01 Default claims ...............................................................
00.02 Interest on debt to Treasury ..........................................
00.07 Technical reestimate of subsidy ....................................
00.08 Technical reestimate—interest .....................................

202
246
330
61 ................... ...................
471 ................... ...................
101 ................... ...................

10.00

Total obligations ........................................................

835

246

330

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
22.00 New financing authority (gross) ....................................
22.10 Resources available from recoveries of prior year obligations .......................................................................

310
1,153

689
483

926
586

21.90

23.90
23.95
24.90

1,172
–246

1,512
–330

689

926

1,182

New financing authority (gross), detail:
67.15 Authority to borrow (indefinite) .....................................
700 ................... ...................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
453
578
685
68.47
Portion applied to debt reduction ............................. ...................
–95
–99
68.90
70.00

2131

Guaranteed loan commitments exempt from limitation

5,700

5,500

5,700

2150

Total guaranteed loan commitments ........................

5,700

5,500

5,700

4,874
3,312
–2,664

5,323
5,500
–2,525

8,052
5,700
–3,336

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Disbursements of new guaranteed loans ......................
Repayments and prepayments ......................................
Adjustments:
2261
Terminations for default that result in loans receivable .......................................................................
2264
Other adjustments, net .............................................
2210
2231
2251

Spending authority from offsetting collections
(total) ................................................................

453

483

586

Total new financing authority (gross) ......................

1,153

483

Outstanding, end of year ..........................................

5,323

8,052

10,086

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

5,269

7,650

9,643

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
2331
Disbursements for guaranteed loan claims .............
2351
Repayments of loans receivable ...............................
2364
Other adjustments, net .............................................

1,094
1,294
1,539
201
246
330
–7
–1
–3
6 ................... ...................

2390

1,294

Outstanding, end of year ......................................

1,866

Balance Sheet (in millions of dollars)
Identification code 12–4337–0–3–351

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
Net value of assets related to post–
1991 acquired defaulted guaranteed loans receivable:
1501
Defaulted guaranteed loans receivable, gross ......................................
1599

Net present value of assets related
to defaulted guaranteed loans

1999

835
246
330
–774
–246
–330
–61 ................... ...................
774
246
330

1,539

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from loan guarantees committed
in 1992 and beyond. The amounts in this account are a means
of financing and are not included in the budget totals.

586

Change in unpaid obligations:
73.10 New obligations .............................................................
73.20 Total financing disbursements (gross) .........................
73.45 Adjustments in unexpired accounts ..............................
87.00 Total financing disbursements (gross) .........................

–201
–246
–330
2 ................... ...................

2290

61 ................... ...................
1,524
–835

175

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Debt ...........................
2204 Non-Federal liabilities: Liabilities for
loan guarantees ..................................
2999

1995 actual

1996 actual

1997 est.

1998 est.

310

689

926

1,182

..................

1,094

1,294

1,539

1,866

1,094

1,294

1,539

1,866

1,404

2,060

2,465

3,048

..................

851

1,404

1,209

1,614

2,197

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

1,404

2,060

2,465

3,048

..................

3999

Total net position ................................

..................

4999

Total liabilities and net position ............

1,404

2,060

2,465

3,048

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Payments from program account .........................
88.25
Interest on uninvested funds ...............................
Non-Federal sources:
88.40
Loan origination fee .........................................
88.40
Principal collections .........................................
88.40
Interest collections ...........................................

–339
–26

–430
–8

–514
–29

–20
–6
–62

–45
–1
–94

–43
–4
–95

COMMODITY CREDIT CORPORATION GUARANTEED LOANS LIQUIDATING
ACCOUNT

88.90

Total, offsetting collections (cash) ..................

–453

–578

–685

Program and Financing (in millions of dollars)

89.00
90.00

Net financing authority and financing disbursements:
Financing authority ........................................................
Financing disbursements ...............................................

700
321

–95
–332

–99
–355

Identification code 12–4338–0–3–351

1996 actual

1997 est.

1998 est.

01.01

Identification code 12–4337–0–3–351

1996 actual

1997 est.

1998 est.

Position with respect to appropriations act limitation
on commitments:
2111 Limitation on guaranteed loans made by private lenders .............................................................................. ................... ................... ...................

2 ...................

10.00

Status of Guaranteed Loans (in millions of dollars)

Obligations by program activity:
Capital investment: Direct loans: Guarantee claims
Total obligations (object class 33.0) ........................

2 ...................

134
441
–467

21.40

64
214
–214

62
172
–172

176

CORPORATIONS—Continued

THE BUDGET FOR FISCAL YEAR 1998

Public enterprise funds—Continued
COMMODITY CREDIT CORPORATION EXPORT GUARANTEE FINANCING
ACCOUNT—Continued
Program and Financing (in millions of dollars)—Continued
Identification code 12–4338–0–3–351

23.90
23.95
24.40

1996 actual

1997 est.

108
–44

1998 est.

64
62
–2 ...................

New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

441

214

172

73.10
73.20

Change in unpaid obligations:
New obligations .............................................................
Total outlays (gross) ......................................................

44
–44

2 ...................
–2 ...................

86.97

Outlays (gross), detail:
Outlays from new permanent authority .........................

2 ...................

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Non-Federal sources:
88.40
Repayments of principal ..................................
88.40
Interest received on loans ................................

–163
–278

–50
–164

–24
–148

88.90

–441

–214

–172

68.00

89.00
90.00

Total, offsetting collections (cash) ..................

DAIRY INDEMNITY PROGRAM

Note.—Includes amounts for activities previously funded in the Commodity Credit Corporation Fund.

Status of Guaranteed Loans (in millions of dollars)
Identification code 12–4338–0–3–351

loans, ø$2,345,071,000¿ $2,350,000,000 of which $1,700,000,000 shall
be for unsubsidized guaranteed loans and $200,000,000 shall be for
subsidized guaranteed loans; Indian tribe land acquisition loans as
authorized by 25 U.S.C. 488, $1,000,000; for emergency insured loans,
$25,000,000 to meet the needs resulting from natural disasters; øfor
boll weevil eradication program loans as authorized by 7 U.S.C. 1989,
$34,653,000;¿ and for credit sales of acquired property, $25,000,000.
For the cost of direct and guaranteed loans, including the cost
of modifying loans as defined in section 502 of the Congressional
Budget Act of 1974, as follows: farm ownership loans, ø$27,975,000¿
$19,460,000 of which ø$22,055,000¿ $15,440,000 shall be for guaranteed loans; operating loans, ø$96,840,000¿, $68,735,000 of which
ø$19,210,000¿ $19,890,000 shall be for unsubsidized guaranteed loans
and ø$18,480,000¿ $19,280,000 shall be for subsidized guaranteed
loans; Indian tribe land acquisition loans as authorized by 25 U.S.C.
488, ø$54,000¿ $132,000; for emergency insured loans, ø$6,365,000¿
$6,008,000 to meet the needs resulting from natural disasters øfor
boll weevil eradication program loans as authorized by 7 U.S.C. 1989,
$499,000¿; and for credit sales of acquired property, ø$2,530,000¿
$3,255,000.
In addition, for administrative expenses necessary to carry out
the direct and guaranteed loan programs, ø$221,046,000¿
$219,861,000 of which ø$208,446,000¿ $209,861,000 shall be transferred to and merged with the ‘‘Farm Service Agency, Salaries and
Expenses’’ account.

1996 actual

1997 est.

1998 est.

2210
2251
2261

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Repayments and prepayments ......................................
Adjustments: Terminations for default that result in
loans receivable ........................................................

–20

–2 ...................

2290

Outstanding, end of year ..........................................

6 ...................

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

6 ...................

5,209
20
–162
5,067

5,019

206
–95

91
–83

6
–6

TRANSFERS OF FUNDS)

For necessary expenses involved in making indemnity payments
to dairy farmers for milk or cows producing such milk and manufacturers of dairy products who have been directed to remove their
milk or dairy products from commercial markets because it contained
residues of chemicals registered and approved for use by the Federal
Government, and in making indemnity payments for milk, or cows
producing such milk, at a fair market value to any dairy farmer
who is directed to remove his milk from commercial markets because
of (1) the presence of products of nuclear radiation or fallout if such
contamination is not due to the fault of the farmer, or (2) residues
of chemicals or toxic substances not included under the first sentence
of the Act of August 13, 1968, as amended (7 U.S.C. 450j), if such
chemicals or toxic substances were not used in a manner contrary
to applicable regulations or labeling instructions provided at the time
of use and the contamination is not due to the fault of the farmer,
$100,000, to remain available until expended (7 U.S.C. 2209b): Provided, That none of the funds contained in this Act shall be used
to make indemnity payments to any farmer whose milk was removed
from commercial markets as a result of his willful failure to follow
procedures prescribed by the Federal Government: Provided further,
That this amount shall be transferred to the Commodity Credit Corporation: Provided further, That the Secretary is authorized to utilize
the services, facilities, and authorities of the Commodity Credit Corporation for the purpose of making dairy indemnity disbursements.
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 1997.)

5,067
5,019
2 ...................
–50
–24

2390

(INCLUDING

Unavailable Collections (in millions of dollars)
Identification code 12–1140–0–1–351

Outstanding, end of year ......................................

4,995

As required by the Federal Credit Reform Act of 1990,
this account records, for this program, all cash flows to and
from the Government resulting from loan guarantees committed prior to 1992. This account is shown on a cash basis.
All new activity in this program in 1992 and beyond is recorded in corresponding program and financing accounts.

Balance, start of year:
01.99 Balance, start of year ....................................................
Receipts:
02.02 Agriculture credit insurance fund direct loans, downward reestimates of subsidies ..................................
04.00
07.99

Total: Balances and collections ....................................
Total balance, end of year ............................................

1996 actual

1997 est.

102

141

1998 est.

141

39 ................... ...................
141
141

141
141

Program and Financing (in millions of dollars)
Credit accounts:
AGRICULTURAL CREDIT INSURANCE FUND PROGRAM ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)

For gross obligations for the principal amount of direct and guaranteed loans as authorized by 7 U.S.C. 1928–1929, to be available
from funds in the Agricultural Credit Insurance Fund, as follows:
farm ownership loans, ø$600,000,000¿ $430,828,000 of which
ø$550,000,000¿ $400,000,000 shall be for guaranteed loans; operating

Identification code 12–1140–0–1–351

Obligations by program activity:
Direct loan subsidy ........................................................
Guaranteed loan subsidy ...............................................
Reestimates of direct loan subsidy ...............................
Interest on reestimates of direct loan subsidy .............
Reestimates of guaranteed loan subsidy ......................
Interest on reestimates of guaranteed loan subsidy
Administrative expenses:
00.09
Administrative expenses—salaries and expenses ...
00.01
00.02
00.05
00.06
00.07
00.08

1996 actual

1997 est.

1998 est.

142
50
41
10
12
1

103
60
...................
...................
...................
...................

43
55
...................
...................
...................
...................

209

208

210

CORPORATIONS—Continued

DEPARTMENT OF AGRICULTURE
00.10

Administrative expenses—non-recoverable costs ....

10.00

Total obligations ........................................................

473

384

318

23.90
23.95
24.40

492
–473

403
–384

337
–318

422

70.00

486

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

384

318

17
20
34
473
384
318
–473
–370
–321
3 ................... ...................
20

400
1,700
200

2159

1,851

2,547

2,300

3.74
1.11
9.12

3.69
1.10
9.08

3.86
1.17
9.64

2.36

2.34

2.37

20
12
17

22
19
18

16
20
19

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Farm ownership, unsubsidized ......................................
2320 Farm operating, unsubsidized .......................................
2320 Farm operating, subsidized ...........................................
Weighted average subsidy rate .................................
Guaranteed loan subsidy budget authority:
2330 Farmer ownership, unsubsidized ...................................
2330 Farm operating, unsubsidized .......................................
2330 Farm operating, subsidized ...........................................

87.00

Total outlays (gross) .................................................

473

370

321

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

486
473

384
370

318
321

394
355
301
15
15
20
64 ................... ...................

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
1996 actual

1997 est.

Total subsidy budget authority .................................
Guaranteed loan subsidy outlays:
2340 Farmer ownership, unsubsidized ...................................
2340 Farm operating, unsubsidized .......................................
2340 Farm operating, subsidized ...........................................

20
12
17

14
16
16

17
20
19

2349

Total subsidy outlays ................................................

3510
3590

Administrative expense data:
Budget authority ............................................................
Outlays ...........................................................................

222
221

221
221

220
220

1998 est.

Direct loan levels supportable by subsidy budget authority:
1150 Farm ownership .............................................................
89
28
31
1150 Farm operating ..............................................................
567
470
450
1150 Emergency disaster ........................................................
272
21
25
1150 Indian tribe land acquisition .........................................
1 ...................
1
1150 Credit sales of acquired property .................................. ...................
14
25
1150 Boll weevil eradication .................................................. ...................
35 ...................
Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Farm ownership .............................................................
1320 Farm operating ..............................................................
1320 Emergency disaster ........................................................
1320 Indian tribe land acquisition .........................................
1320 Credit sales of acquired property ..................................
1320 Boll weevil eradication ..................................................

598
1,745
204

2339

64 ................... ...................

86.90
86.93
86.97

1159

535
1,125
191

318

72.40

Identification code 12–1140–0–1–351

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Farm ownership, unsubsidized ......................................
2150 Farm operating, unsubsidized .......................................
2150 Farm operating, subsidized ...........................................

2329

177

929

568

532

19.04
12.98
29.34
23.24
0.00
0.00

21.03
12.59
30.41
24.12
18.06
1.44

13.04
6.57
24.03
13.18
13.02
3.19

1329

Weighted average subsidy rate .................................
15.92
15.61
8.08
Direct loan subsidy budget authority:
1330 Farm ownership .............................................................
14
6
4
1330 Farm operating ..............................................................
74
59
30
1330 Emergency disaster ........................................................
81
6
6
1330 Indian tribe land acquisition ......................................... ................... ................... ...................
1330 Credit sales of acquired property .................................. ...................
2
3
1330 Boll weevil eradication .................................................. ...................
1 ...................
Total subsidy budget authority .................................
169
74
43
Direct loan subsidy outlays:
1340 Farm ownership .............................................................
15
8
4
1340 Farm operating ..............................................................
71
63
31
1340 Emergency disaster ........................................................
50
30
6
1340 Indian tribe land acquisition ......................................... ................... ................... ...................
1340 Credit sales of acquired property .................................. ...................
2
3
1340 Boll weevil eradication .................................................. ................... ................... ...................

1349

The Agricultural Credit Insurance Fund Program Account’s
loans are authorized by title III of the Consolidated Farm
and Rural Development Act, as amended.
This program account includes subsidies to provide direct
and guaranteed loans for farm ownership, farm operating,
emergency, and soil and water loans to individuals. Associations, Indian tribes, and tribal corporations are eligible for
the following types of loans: Indian land acquisition, and flood
prevention.
Additional funding for emergency disaster loans was provided in fiscal year 1996 through the Secretary’s interchange
authority, and a fiscal year 1996 supplemental appropriation
for emergency disaster loans was included in the 1997 Appropriations Act (P.L. 104–180), with that funding to be available
until expended.
As required by the Federal Credit Reform Act of 1990,
this account records, for this program, the subsidy costs associated with the direct loans obligated and loan guarantees
committed in 1992 and beyond (including credit sales of acquired property), as well as administrative expenses of this
program. The subsidy amounts are estimated on a present
value basis; the administrative expenses are estimated on
a cash basis.
Under the Dairy Indemnity Program (DIP), payments are
made to farmers and manufactuers of dairy products who
are directed to remove their milk or milk products from commercial markets because they contain residues of chemicals
that have been registered and approved by the Federal Government, other chemicals, nuclear radiation, or nuclear fallout. Indemnification may also be paid for cows producing
such milk.
In 1997, an estimated $292 thousand will be paid to producers and manufacturers who file claims under the program.
The 1998 budget requests $100 thousand for this program.

1339

Total subsidy outlays ................................................

136

103

Object Classification (in millions of dollars)
Identification code 12–1140–0–1–351

25.3

1996 actual

1997 est.

1998 est.

41.0

Purchases of goods and services from Government
accounts ....................................................................
Grants, subsidies, and contributions ............................

222
251

221
163

220
98

99.9

Total obligations ........................................................

473

384

318

178

CORPORATIONS—Continued

THE BUDGET FOR FISCAL YEAR 1998

1210
1231
1251
1263

1,655
801
–416
–14

2,026
667
–455
–16

2,222
540
–500
–17

1290

Outstanding, end of year ..........................................

2,026

2,222

2,245

Credit accounts—Continued
AGRICULTURAL CREDIT INSURANCE FUND DIRECT LOAN FINANCING
ACCOUNT
Program and Financing (in millions of dollars)
Identification code 12–4212–0–3–351

00.01
00.02
00.04
00.08

Obligations by program activity:
Direct loans ....................................................................
Advances on behalf of borrowers ..................................
Interest on Treasury borrowing ......................................
Subsidy reestimate paid to reciept account .................

10.00

Total obligations ........................................................

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
22.00 New financing authority (gross) ....................................
22.10 Resources available from recoveries of prior year obligations .......................................................................
22.60 Redemption of debt .......................................................

1996 actual

1997 est.

1998 est.

833
662
532
2
2
2
155
108
119
24 ................... ...................
1,014

772

653

314
1,513

288
1,275

390
1,127

21.90

23.90
23.95
24.90

New financing authority (gross), detail:
Authority to borrow (indefinite) .....................................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.10
Receivables from program account ..........................
67.15

68.90

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond (including credit sales of acquired property that
resulted from obligations in any year). The amounts in this
account are a means of financing and are not included in
the budget totals.
This account finances direct loans for farm ownership, farm
operating, emergency disaster, and credit sales of acquired
property.
Balance Sheet (in millions of dollars)

6 ................... ...................
–531
–400
–400

1995 actual

1996 actual

363

356

349

342

1,655
57

2,026
20

2,222
20

2,245
20

–448
..................

16
–551

20
..................

1,264

1,511

2,262

2,285

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Debt ...........................
2207 Non-Federal liabilities: Other ..................

1,627

1,867

2,611

2,627

1,615
12

1,850
17

2,596
15

2,612
15

33
10

2999

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

1,627

1,867

2,611

2,627

..................

49
83
43
1,014
772
653
–974
–812
–675
–6 ................... ...................

3999

Total net position ................................

..................

4999

Total liabilities and net position ............

1,627

1,867

2,611

2,627

1,302
–1,014

1,163
–772

1,117
–653

288

390

464

833

663

532

674
6

617
–5

600
–5

Identification code 12–4212–0–3–351

ASSETS:
Investments in US securities:
1106
Federal assets: Receivables, net ........
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1402
Interest receivable ..............................
1403
Accounts receivable from foreclosed
property ...........................................
1405
Allowance for subsidy cost (–) ...........
1499

Spending authority from offsetting collections
(total) ................................................................

680

612

595

Total new financing authority (gross) ......................

1,513

1,275

1,127

Net present value of assets related
to direct loans ...........................

1999
70.00

Change in unpaid obligations:
Unpaid obligations, start of year:
72.90
Obligated balance: Obligated balance .....................
72.95
Receivables from program account ..........................
72.99
73.10
73.20
73.45
74.90
74.95

Total unpaid obligations, start of year ................
New obligations .............................................................
Total financing disbursements (gross) .........................
Adjustments in unexpired accounts ..............................
Unpaid obligations, end of year:
Obligated balance: Obligated balance .....................
Receivables from program account ..........................

74.99
87.00

Total unpaid obligations, end of year ..................
Total financing disbursements (gross) .........................

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal sources: Payments from program account .................................................................
88.25
Interest on uninvested funds ...............................
Non-Federal sources:
88.40
Repayments of principal ..................................
88.40
Non-Federal sources .........................................

40
9

68
15

33
10
43
812

21
675

Program and Financing (in millions of dollars)
Identification code 12–4213–0–3–351

–191
–67

–100
–62

–43
–57

–348
–68

–410
–45

–455
–45

Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............

–674
–6

–617
5

–600
5

89.00
90.00

833
300

663
195

532
75

1997 est.

1998 est.

Obligations by program activity:
Default claims ...............................................................
Interest assistance on guaranteed loans ......................
Negative subsidy transferred to receipt account ..........

10.00

Total obligations ........................................................

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
22.00 New financing authority (gross) ....................................
22.10 Resources available from recoveries of prior year obligations .......................................................................

79
107

98
100

113
91

1996 actual

1997 est.

1998 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans .............................................
1112 Unobligated direct loan limitation ................................

929
663
532
–96 ................... ...................

1150

833

663

532

31
35
39
51
50
52
15 ................... ...................

21.90

23.90
23.95
24.90

Status of Direct Loans (in millions of dollars)

Total direct loan obligations .....................................

1996 actual

00.01
00.02
00.07

88.90
88.95

Identification code 12–4212–0–3–351

1998 est.

AGRICULTURAL CREDIT INSURANCE FUND GUARANTEED LOAN
FINANCING ACCOUNT

16
5

83
974

1997 est.

60.05
68.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................
New financing authority (gross), detail:
Appropriation (indefinite) ...............................................
Spending authority from offsetting collections: Offsetting collections (cash) ..............................................

10 ................... ...................
196
–97

198
–85

204
–91

113

15 ................... ...................
92

100

70.00

Total new financing authority (gross) ......................

107

100

72.90

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Obligated balance .....................................................

124

144

128

CORPORATIONS—Continued

DEPARTMENT OF AGRICULTURE
73.10
73.20
73.45
74.90
87.00

New obligations .............................................................
Total financing disbursements (gross) .........................
Adjustments in unexpired accounts ..............................
Unpaid obligations, end of year: Obligated balance:
Obligated balance .....................................................
Total financing disbursements (gross) .........................

97
85
91
–67
–101
–92
–10 ................... ...................
144
67

128
101

127
92

–63
–15
–14

–60
–15
–25

–55
–15
–21

88.90

Total, offsetting collections (cash) ..................

–92

–100

–91

89.00
90.00

1996 actual

1997 est.

1998 est.

1,851

2,547

2,300

2150

1,851

2,547

2,300

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................
2231 Disbursements of new guaranteed loans ......................
2251 Repayments and prepayments ......................................
2263 Adjustments: Terminations for default that result in
claim payments .........................................................
2290

Outstanding, end of year ..........................................

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

4,979
1,768
–1,007

5,705
2,378
–1,255

6,828
2,375
–1,366

–35 ................... ...................
5,705

6,828

7,837

5,134

6,145

7,053

1999

Total assets ........................................
LIABILITIES:
2102 Federal liabilities: Interest payable ........
Non-Federal liabilities:
2201
Accounts payable ................................
2203
Debt .....................................................
2204
Liabilities for loan guarantees ...........
2999

1996 actual

1997 est.

1998 est.

1
1
1
30

00.91

01.03
01.07
01.08
01.09
01.13
01.17

Total capital investment .......................................
Operating expenses:
Interest on FFB borrowings .......................................
Loss settlement expenses on guaranteed loans .......
Admininstrative expenses—DOJ fees .......................
Costs incident to acq prop .......................................
Interest assistance—guaranteed loans ...................
Unclassified Costs .....................................................

01.91

Total operating expenses ......................................

Total obligations ........................................................

114

1995 actual

1996 actual

1997 est.

1998 est.

202

242

291

341

..................
..................

202

242

291

341

..................

124
..................
78

144
15
83

175
..................
116

204
..................
137

Total liabilities ....................................
NET POSITION:
3300 Cumulative results of operations ............

202

242

291

341

..................

3999

Total net position ................................

..................

4999

Total liabilities and net position ............

202

242

291

67 ................... ...................
15
12
11
3
1
1
4
4
4
2
2
2
5
4
4

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
806
347
341
22.00 New budget authority (gross) ........................................ ...................
50
50
22.10 Resources available from recoveries of prior year obligations .......................................................................
24 ................... ...................
22.40 Capital transfer to general fund ...................................
–200 ................... ...................
22.60 Redemption of debt .......................................................
–169 ................... ...................
21.90

23.90
23.95
24.90

461
–114

397
–56

391
–55

347

341

336

1,301
–1,301

1,291
–1,241

1,240
–1,190

Spending authority from offsetting collections
(total) ................................................................ ...................

Total new budget authority (gross) .......................... ...................

New budget authority (gross), detail:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.27
Capital transfer to general fund ..............................

70.00

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................
72.90

86.97
86.98

Balance Sheet (in millions of dollars)

Identification code 12–4140–0–3–351

68.90

Identification code 12–4213–0–3–351

Program and Financing (in millions of dollars)

10.00

15 ................... ...................
–24
1
1

Status of Guaranteed Loans (in millions of dollars)

Total guaranteed loan commitments ........................

AGRICULTURAL CREDIT INSURANCE FUND LIQUIDATING ACCOUNT

Obligations by program activity:
Capital investment:
00.01
Purchase of loans from investors ............................. ...................
00.04
Purchase of guaranteed loans from investors .........
1
00.07
Disbursement of loan repayments to investors ........ ...................
00.08
Loan recoverable costs ..............................................
17

Identification code 12–4213–0–3–351

179

87.00

112 ...................

Outlays (gross), detail:
Outlays from new permanent authority ......................... ...................
43
Outlays from permanent balances ................................
163 ...................
Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Non-Federal sources:
88.40
Rent on acquired property ...............................
88.40
Guaranteed lns purchased from holders—
principal .......................................................
88.40
Interest on loans ..............................................
88.40
Guaranteed loss recoveries ..............................
88.40
Loan repayments recd on behalf of investors
88.40
Interest on judgments ......................................
88.40
Repayments on loans—principal ....................
88.40
Judgments—principal ......................................
88.40
Shared appreciation recapture .........................
88.40
Sale of acquired property/chattels ...................
88.40
Miscellaneous income ......................................
88.40
Undistributed receipts ......................................

341

172
99
112
114
56
55
–163
–43
–167
–24 ................... ...................

50
117

163

167

–7

–6

–1
–470
–1
–1
–2
–748
–11
–4
–48
–3
–5

–1
–450
–1
–1
–1
–750
–10
–3
–60
–2
–5

–1
–450
–1
–1
–1
–700
–9
–4
–60
–1
–6

88.90

Total, offsetting collections (cash) ..................

–1,301

–1,291

–1,240

89.00

Net budget authority and outlays:
Budget authority ............................................................

–1,301

–1,241

–1,190

180

CORPORATIONS—Continued

THE BUDGET FOR FISCAL YEAR 1998
1606

Credit accounts—Continued
AGRICULTURAL CREDIT INSURANCE FUND LIQUIDATING ACCOUNT—
Continued

Foreclosed property .............................

301

267

231

250

1699

Value of assets related to direct
loans ..........................................
Other Federal assets: Other assets ........

9,724
1

6,990
..................

6,329
..................

6,260
..................

Total assets ........................................
LIABILITIES:
Federal liabilities:
2102
Interest payable ..................................
2103
Debt .....................................................
2104
Resources payable to Treasury ...........
Non-Federal liabilities:
2201
Accounts payable ................................
2202
Interest payable ..................................
2203
Debt .....................................................
2204
Liabilities for loan guarantees ...........
2207
Other ...................................................

10,704

7,436

6,529

6,460

48
1,470
8,798

..................
..................
7,084

..................
..................
6,183

..................
..................
6,114

100
1
2
236
49

89
..................
2
207
54

98
1
2
200
45

2999

1901

Program and Financing (in millions of dollars)—Continued
1999
1996 actual

Identification code 12–4140–0–3–351

90.00

Outlays ...........................................................................

1997 est.

–1,138

–1,248

1998 est.

–1,073

Status of Direct Loans (in millions of dollars)
1996 actual

Identification code 12–4140–0–3–351

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Disbursements: Purchase of loans assets from the
public .........................................................................
1251 Repayments: Repayments and prepayments .................
1261 Adjustments: Capitalized interest .................................
Write-offs for default:
1263
Direct loans ...............................................................
1264
Other adjustments, net1 ...........................................
1210
1232

1290

Outstanding, end of year ..........................................

1997 est.

1998 est.

10,234

8,783

7,498

5
–743
55

5
–707
50

5
–652
50

Total liabilities ....................................
NET POSITION:
3300 Cumulative results of operations ............

10,704

7,436

6,529

6,460

..................

–663
–105

–600
–33

–500
12

3999

Total net position ................................

..................

4999

Total liabilities and net position ............

10,704

7,436

6,529

6,460

8,783

7,498

6,413

Object Classification (in millions of dollars)
1 Amounts shown are based on payment of delinquent installments, advances on behalf of borrowers, acquired
property and chattels, loans in kind, and judgments.

Status of Guaranteed Loans (in millions of dollars)
1996 actual

Identification code 12–4140–0–3–351

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................
2231 Disbursements of new guaranteed loans ......................
2251 Repayments and prepayments ......................................
Adjustments:
2263
Terminations for default that result in claim payments ....................................................................
2264
Other adjustments, net .............................................
2290

Outstanding, end of year ..........................................

1997 est.

1,316
2
–295

1998 est.

1,173
963
2 ...................
–200
–100

–17
–12
–5
167 ................... ...................
1,173

963

858

1996 actual

Identification code 12–4140–0–3–351

1997 est.

1998 est.

25.2
33.0
43.0

Other services ................................................................
Investments and loans ..................................................
Interest and dividends ...................................................

13
32
69

9
45
2

12
41
2

99.9

Total obligations ........................................................

114

NATURAL RESOURCES CONSERVATION
SERVICE
Federal Funds
General and special funds:

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

CONSERVATION OPERATIONS
1,059

870

772

As required by the Federal Credit Reform Act of 1990,
this account records for the farm loan programs all cash flows
to and from the Government resulting from direct loans obligated, loan guarantees committed, and grants prior to 1992.
New loan activity in 1992 and beyond (including credit sales
of acquired property that resulted from obligations or commitments in any year) is recorded in corresponding program and
financing accounts.
Statement of Operations (in millions of dollars)
Identification code 12–4140–0–3–351

1995 actual

1996 actual

1997 est.

1998 est.

0101
0102

Revenue ...................................................
Expense ....................................................

479
1,328

437
–1,704

398
1,510

362
1,008

0109

Net income or loss (–) ............................

1,807

–1,267

1,908

1,370

Balance Sheet (in millions of dollars)
Identification code 12–4140–0–3–351

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1601
Direct loans, gross ..............................
1602
Interest receivable ..............................
1603
Allowance for estimated uncollectible
loans and interest (–) ....................
1604
Direct loans and interest receivable,
net ..................................................

1995 actual

1996 actual

1997 est.

1998 est.

979
..................

446
..................

200
..................

10,426
549

8,783
414

7,498
100

6,413
597

–1,552

–2,474

–1,500

–1,000

9,423

6,723

6,098

6,010

For necessary expenses for carrying out the provisions of the Act
of April 27, 1935 (16 U.S.C. 590a–590f) including preparation of conservation plans and establishment of measures to conserve soil and
water (including farm irrigation and land drainage and such special
measures for soil and water management as may be necessary to
prevent floods and the siltation of reservoirs and to control agricultural related pollutants); administration of research, investigation,
and surveys of watersheds of rivers and other waterways, for small
watershed investigations and planning, and for technical assistance
to carry out preventive measures, in accordance with the Watershed
Protection and Flood Prevention Act (16 U.S.C.1001–1009), and the
Flood Control Act (33 U.S.C. 701); operation of conservation plant
materials centers; classification and mapping of soil; dissemination
of information; acquisition of lands, water, and interests therein for
use in the plant materials program by donation, exchange, or purchase at a nominal cost not to exceed $100 pursuant to the Act
of August 3, 1956 (7 U.S.C. 428a); purchase and erection or alteration
or improvement of permanent and temporary buildings; and operation
and maintenance of aircraft, ø$619,742,000¿ $722,268,000, to remain
available until expended (7 U.S.C. 2209b), of which not less than
ø$5,835,000¿ $5,888,000 is for snow survey and water forecasting
and not less than ø$8,825,000¿ $8,891,000 is for operation and establishment of the plant materials centers: Provided, That appropriations hereunder shall be available pursuant to 7 U.S.C. 2250 for
construction and improvement of buildings and public improvements
at plant materials centers, except that the cost of alterations and
improvements to other buildings and other public improvements shall
not exceed $250,000: Provided further, That when buildings or other
structures are erected on non-Federal land, that the right to use
such land is obtained as provided in 7 U.S.C. 2250a: Provided further,
That this appropriation shall be available for technical assistance
and related expenses to carry out programs authorized by section
202(c) of title II of the Colorado River Basin Salinity Control Act
of 1974, as amended (43 U.S.C. 1592(c)): Provided further, That up
to $5,000,000 may be used for agreements with conservation districts
and other State and local entities for training expenses to assist with

NATURAL RESOURCES CONSERVATION SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
the above noted activities: Provided further, That no part of this
appropriation may be expended for soil and water conservation operations under the Act of April 27, 1935 (16 U.S.C. 590a–590f) in
demonstration projects: Provided further, That this appropriation
shall be available for employment pursuant to the second sentence
of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225) and
not to exceed $25,000 shall be available for employment under 5
U.S.C. 3109: Provided further, That qualified local engineers may
be temporarily employed at per diem rates to perform the technical
planning work of the Service (16 U.S.C. 590e–2).
øWATERSHED SURVEYS

AND

Program and Financing (in millions of dollars)
1996 actual

1997 est.

1998 est.

Obligations by program activity:
Direct program:
00.01
Technical Assistance .................................................
00.02
Soil Surveys ...............................................................
00.03
Snow Survey and Water Forecasting .........................
00.04
Plant Materials Centers ............................................
00.05
Water Resource Assistance .......................................

543
76
6
9
14

532
77
6
9
12

549
82
6
9
76

00.91
01.01

Total, direct program ............................................
Reimbursable program ..................................................

648
64

636
149

722
136

10.00

Total obligations ........................................................

712

785

858

7
708

3 ...................
781
858

21.40

23.90
23.95
24.40

715
–712

784
–785

858
–858

3 ................... ...................

644

632

722

149

136

Total new budget authority (gross) ..........................

708

781

858

85
712
–690

107
785
–810

83
858
–854

107

70.00

Outlays ...........................................................................

626

661

718

Distribution of budget authority by account:
Conservation operations .........................................................
Watershed surveys and planning ...........................................
River basin surveys and investigations .................................

630
620
722
14
12 ...................
1 ................... ...................

Distribution of outlays by account:
Conservation operations .........................................................
Watershed surveys and planning ...........................................
River basin surveys and investigations .................................

611
635
703
14
13
15
1 ................... ...................

PLANNING¿

øFor necessary expenses to conduct research, investigation, and
surveys of watersheds of rivers and other waterways, and for small
watershed investigations and planning, in accordance with the Watershed Protection and Flood Prevention Act approved August 4, 1954,
as amended (16 U.S.C. 1001–1009), $12,381,000: Provided, That this
appropriation shall be available for employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C.
2225), and not to exceed $110,000 shall be available for employment
under 5 U.S.C. 3109.¿ (7 U.S.C. 2201–02; 16 U.S.C. 1101–5; 33 U.S.C.
7016–11; Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)

Identification code 12–1000–0–1–300

90.00

181

72.40

86.90
86.93
86.97

575
51
64

557
104
149

635
83
136

87.00

Total outlays (gross) .................................................

690

810

854

–49
–15

–126
–23

–109
–27

88.90

Total, offsetting collections (cash) ..................

–64

–149

–136

89.00

Net budget authority and outlays:
Budget authority ............................................................

644

632

722

Technical assistance.—Technical assistance is provided
through 2,955 conservation districts or special districts to
land users and decisionmakers, including individual landowners and operators, community groups, units of government, Indian tribes, and others for the planning of conservation programs and installation of needed conservation systems
on the land, including design, layout, installation, and consultation services.
The budget assumes a consolidation of certain functions
of the Farm Service Agency (FSA) and the Natural Resources
Conservation Service (NRCS) at the national headquarters
level in 1998, including personnel, IRM, property and public
affairs. The consolidation will foster operational efficiencies,
as well as improved inter-agency communication and coordination. In addition, the number of field office service centers
would be reduced from 2,500 to a maximum of 2,000 by the
end of 1999.
A study will be conducted in 1997 by an independent entity
to examine the FSA and NRCS for opportunities for further
coordinating and reducing costs in these agencies, including
alternative means of program delivery, such as centralized
servicing for AMTA payments and CCC non-recourse loans,
and further consolidation of the two agencies’ operations.
Combinations of needed soil and water conservation systems are planned in relation to each other to achieve wellbalanced conservation programs. Technicians explain the various soil conditions, develop alternative uses and treatments,
help to evaluate the costs and returns of conservation work,
and furnish onsite assistance to farmers, ranchers, and others
in applying the needed treatments. About 70 percent of the
total annual investment in conservation practices applied
through the conservation technical assistance program is
made by private landusers. During 1998, the National Resources Conservation Service will continue to provide technical assistance as needed for the Colorado River Basin Salinity Control Program, ongoing activities of the Great Plains
Conservation Program, support for enrolled acres in the Conservation Reserve Program, the highly erodible land and wetland conservation provisions of the Food Security Act of 1985
as amended by the Food, Agriculture, Conservation and Trade
Act of 1990, and the Conservation provisions of the Federal
Agriculture Improvement and Reform Act of 1996.
MAIN WORKLOAD FACTORS
1996 est.

Decisionmakers receiving technical services ................
Acres treated with conservation technical assistance

1,000,000
66,000

1997 est.

1,050,000
66,000

1998 est.

1,160,000
70,000

The enhancement of conservation district employee skills
and rangeland conservationists will be accelerated in 1998
with additional training through NRCS funds. Improving the
skills of those in the conservation districts will better permit
the NRCS staff to target their expertise, emphasizing setting
standards & providing certification, for other rather than directly implementing most activities themselves (in National
Performance Review parlance, ‘‘steering’’, rather than ‘‘rowing’’).
Also included in this item are the inventory and monitoring,
resource appraisal, and program development activities. Resource inventories are conducted to provide soil, water, and
related resource data for evaluating land-use changes and

182

NATURAL RESOURCES CONSERVATION SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
øWATERSHED SURVEYS

AND

PLANNING¿—Continued

trends; and for guidance in the development and implementation of Federal, State, and local resource conservation programs. Resource appraisal and program development provides
for periodic reports to the public and Congress as required
by the Soil and Water Resources Conservation Act of 1977
as amended.
Technical assistance will be targeted in 1998 through the
use of area-wide watershed plans to achieve the goals of the
Government Performance and Results Act. Technical assistance will be increased by $3 million for watershed and rangeland local council assistance. NRCS will fund certain highpriority activities, as a result, including area-wide planning
on a watershed basis, a grazing lands initiative, Native American assistance, a wetlands initiative and more rapid development of Geographic Information Systems.
Soil surveys.—Soil surveys and investigations are made of
the Nation’s soil resources, with interpretations and publications that provide physical land facts needed for program
development, resource conservation planning, installation of
planned practices, and for use by other Federal, State, and
local agencies in making land-use decisions. National leadership is provided for digitizing soil surveys in cooperation with
States, and other users of soil survey data.
MAIN WORKLOAD FACTORS
1996 actual

Acres mapped annually (millions) .................................
Soil surveys ready for publication (number) .................

17.7
33

1997 est.

17.0
55

1998 est.

17.0
55

Snow survey water forecasting.—Water supply forecasts prepared from snow surveys in western states are used in making efficient seasonal use of water for irrigation, flood control,
fish and wildlife, recreation, power generation, municipal and
industrial water supply, and water quality management.
Operation of plant materials centers.—The selection and
evaluation of plant materials are made at 26 plant materials
centers through field trials to determine their suitability for
erosion control, conservation, and other environmental improvements. Native plant species will be preferred and exotic
species introductions phased out for this program.
Water Resource Assistance.—The Department cooperates
with other agencies and the States in planning small watersheds to reduce the damage from floodwater, sediment, agricultural run-off, and erosion and for the conservation, development, utilization, and disposal of water. Program activities
will be accelerated for high priority natural resource concerns
such as: water quality and wetlands restoration. This account
will be used to develop plans to target agency resources to
achieve the goals of the Government Performance and Results
Act.
Technical assistance for watershed project design and implementation to assist States and their political subdivisions
and other localities to reduce damage from floodwater, sediment, and erosion, for the conservation, development, utilization, and disposal of water, and for conservation and proper
utilization of lands. This technical assistance will be coupled
with the financial assistance included in the Watershed and
Flood Prevention operations account. Technical assistance was
displayed directly in Watershed and Flood Prevention operations account in previous years.
The Department makes surveys of proposed small watershed projects, and work plans are prepared in cooperation
with local sponsors. These plans outline the soil and water
management problems in the watershed, the steps that have
been or are authorized to be taken to alleviate these problems,
the proposed works of improvement to be installed, the estimated benefits and costs, cost sharing, operation and maintenance arrangements, and other information necessary to justify Federal participation in project development. Watershed

planning will emphasize water quality protection and improvement. This emphasis will better enable States to focus
on watersheds in fulfilling the requirements of the Clean
Water Act and in maintaining clean water. Program activities
will be accelerated for high priority natural resource concerns
such as: water quality and wetlands restoration.
MAIN WORKLOAD FACTORS
Activity:
Application for planning assistance: on hand, cumulative,
start of year .......................................................................
Status of planning:
Approved for planning during year ........................................
Locally implemented ...........................................................
Federally implemented .......................................................
Planning completed during year ............................................
Locally implemented ...........................................................
Federally implemented .......................................................
Planning in process ................................................................
Locally implemented ...........................................................
Federally implemented .......................................................
Status of projects in operations:
Active projects ....................................................................
Approved for operations during year .................................
USDA Cooperative Studies:
(1) Surveys in progress, start of year ....................................
(2) Surveys initiated during year ...........................................
(3) Surveys worked during year ..............................................
(4) Surveys completed during year ........................................
(5) Surveys in progress, end of year ......................................
Flood Plain Management Assist. Program:
(1) States involved .................................................................
(2) Completed studies ............................................................
(3) Ongoing studies ................................................................
(4) Cumulative total completed .............................................

1996 actual

1997 est.

1998 est.

280

285 ....................

7
(—)
(7)
14
(1)
(13)
84
(22)
(62)

10
(3)
(7)
9
(3)
(6)
84
(22)
(62)

11
(6)
(5)
13
(6)
(7)
84
(22)
(62)

532
13

523
14

509
7

136
36
172
18
154

154
24
178
15
163

163
20
183
10
173

26
11
55
597

27
10
50
607

29
10
40
617

Object Classification (in millions of dollars)
1996 actual

Identification code 12–1000–0–1–300

11.1
11.3
11.5
11.9
12.1
13.0
21.0
22.0
23.2
23.3

24.0
25.2
26.0
31.0
32.0

99.0
99.0
99.5

99.9

Total obligations ........................................................

1997 est.

1998 est.

349
11
8

336
11
8

379
12
9

368
94
3
14
6
10

355
93
3
13
6
10

400
105
3
15
6
12

19
3
69
13
46
1

18
3
76
13
45
1

20
3
90
14
52
1

646
636
721
63
149
137
3 ................... ...................
712

785

858

Personnel Summary
1996 actual

Identification code 12–1000–0–1–300

WATERSHED

AND

1997 est.

1998 est.

8,989
17

8,762
17

9,473
25

798

1,550

1,915

FLOOD PREVENTION OPERATIONS

For necessary expenses to carry out preventive measures, including
but not limited to research, engineering operations, methods of cultivation, the growing of vegetation, rehabilitation of existing works

NATURAL RESOURCES CONSERVATION SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
and changes in use of land, and high priority projects authorized
by the Flood Control Act (33 U.S.C. 701, 16 U.S.C. 1006a) in accordance with the Watershed Protection and Flood Prevention Act approved August 4, 1954, as amended (16 U.S.C. 1001–1005, 1007–
1009), the provisions of the Act of April 27, 1935 (16 U.S.C. 590a–
f), and in accordance with the provisions of laws relating to the
activities of the Department, ø$101,036,000¿ $40,000,000, to remain
available until expended (7 U.S.C. 2209b) ø(of which up to
$15,000,000 may be available for the watersheds authorized under
the Flood Control Act approved June 22, 1936 (33 U.S.C. 701, 16
U.S.C. 1006a), as amended and supplemented¿: Provided, That øthis
appropriation shall be available for employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C.
2225), and not to exceed $200,000 shall be available for employment
under 5 U.S.C. 3109¿ up to $15,000,000 for the cost of direct loans
may be transferred to the Rural Utilities Service for rural water and
waste disposal projects, and rural development projects as authorized
by 7 U.S.C. 1926, 1928, and 1932 and approved under the Watershed
and Flood Prevention Act: Provided: That such costs, including the
cost of modifying such loans, shall be as defined in section 502 of
the Congressional Budget Act of 1974: Provided further, That not
to exceed $1,000,000 of this appropriation is available to carry out
the purposes of the Endangered Species Act of 1973 (Public Law
93–205), as amended, including cooperative efforts as contemplated
by that Act to relocate endangered or threatened species to other
suitable habitats as may be necessary to expedite project construction.
(7 U.S.C. 2201–02; 33 U.S.C. 701b–1, 701b–11; Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 1997.)
øFor an additional amount to repair damages to the waterways
and watersheds resulting from the effects of Hurricanes Fran and
Hortense and other natural disasters, $63,000,000, to remain available until expended: Provided, That the entire amount is designated
by Congress as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control
Act of 1985, as amended.¿ (Omnibus Consolidated Appropriations
Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 12–1072–0–1–301

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Direct program:
00.01
Watershed Operations (P.L. 534) ..............................
00.03
Emergency Watershed Protection Operations ............
00.04
Small Watershed Operations (P.L. 566) ....................

15
140
82

18 ...................
137 ...................
93
40

00.91
01.01

Total direct program .............................................
Reimbursable program ..................................................

237
17

248
30

40
24

10.00

Total obligations ........................................................

254

278

140
198

85
194

1
64

338
–254

279
–278

65
–64

181

164

Total new budget authority (gross) ..........................

198

194

204
254
–277

181
278
–313

146
64
–94

181

146

116

144

107

23.90
23.95
24.40

72.40

86.90

Outlays (gross), detail:
Outlays from new current authority ..............................

183

86.93
86.97

Outlays from current balances ......................................
Outlays from new permanent authority .........................

116
17

176
30

58
24

87.00

Total outlays (gross) .................................................

277

313

–3
–14

–6
–24

–10
–14

88.90

Total, offsetting collections (cash) ..................

–17

–30

–24

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

181
259

164
283

40
70

These programs provide for cooperation between the Federal Government and States and their political subdivisions
to reduce damage from floodwater, sediment, and erosion,
for the conservation, development, utilization, and disposal
of water, and for the conservation and proper utilization of
land. Funds in Watershed and Flood Prevention Operations
could be used for either flood prevention projects or flood
damage rehabilitation efforts, depending upon the needs and
opportunities. Technical assistance expenses for the program
($60 million) have been included as part of Conservation Operations beginning in 1998.
Watershed operations authorized by Public Law 534.—The
Department cooperates with soil conservation districts and
other local organizations in planning and installing works
of improvement for flood prevention in 11 watersheds authorized by the Flood Control Act of 1944. The Federal Government shares the cost of works of improvement for flood prevention, agricultural water management, recreation, and fish
and wildlife development. No funds are directly proposed for
this activity; however worthwhile projects, those with high
net social benefits and environmental objectives consistent
with current Administrations priorities, can be continued
under the Small Watershed Operations authorized by Public
Law 566.
Within the 11 authorized projects, 433 subwatershed areas
have been identified for planning purposes. Installation
progress in these subwatersheds is as follows:
MAIN WORKLOAD FACTORS
1996 actual

1997 est.

1998 est.

Active subwatersheds ..................................................................
Projects continuing post-instal assistance ............................

97
242

Total operational subwatersheds ...................................
Unserviced applications ..........................................................
Planning in progress ..............................................................
Terminated in planning ...............................................................
Withdrawn applications ...............................................................

339
33
26
7
28

Total subwatersheds ......................................................

433

Emergency watershed protection operations.—This program
authorizes the Secretary of Agriculture to undertake such
emergency measures for runoff retardation and soil erosion
prevention as may be needed to safeguard life and property
from floods and the products of erosion on any watershed
whenever natural elements or forces cause a sudden impairment of that watershed. An emergency is considered to exist
when a watershed is suddenly impaired by flood, fire, wind,
earthquake, or other natural cause and consequently life and
property are endangered by floodwater, erosion, or sediment
discharge. The emergency area need not be declared a national disaster area to be eligible for emergency watershed
protection. Emergency watershed protection is applicable to
small scale, localized disasters as well as large scale disasters.
State environmental, natural resource, fish and game, and
other agencies participate in planning and coordinating emergency work.

184

NATURAL RESOURCES CONSERVATION SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
WATERSHED

AND

FLOOD PREVENTION OPERATIONS—Continued

Small watershed operations authorized by Public Law
566.—The Department provides technical and financial assistance to local organizations to install measures for watershed
protection, flood prevention, agricultural water management,
recreation, and fish and wildlife enhancement. Expenses for
technical assistance will be displayed as part of the Conservation Operations account beginning in 1998. Significant reforms will be carried out in 1997 to make this program environmentally beneficial, with high returns to society resulting
from the investment. High priority P.L. 534 projects will be
eligible to compete for funding for P.L. 566 funding.
Watershed work plans are prepared by sponsoring local
organizations with the Department’s assistance or through
State and local resources. After work plans are approved by
the Department or Congress (projects where the estimated
Federal contribution will exceed $5 million require congressional approval), financial assistance is provided for specific
works of improvements.
The following tabulation shows the status of Public Law
566 projects:
MAIN WORKLOAD FACTORS
Status of operational projects:
Projects receiving land treatment ..........................................
Structural projects ..................................................................
Land treatment and structural ...............................................

1996 actual

174
297
61

174
294
55

174
285
50

Subtotal active projects .................................................
Projects continuing post-instal assistance ............................
Inactive projects .....................................................................
Completed projects .................................................................

532
893
152
27

523
915
152
28

509
930
152
30

Total operational projects ..............................................

1,604

1,618

1,621

New projects approved during year ........................................

1997 est.

1998 est.

Loan Services. In 1998, local sponsors will have an alternative funding source to finance their projects. For projects
that produce rural water supply or primarily offer rural development benefits, these loans may be a useful and appropriate
alternative. Approved Public Law 566 and 534 projects may
immediately receive loans through rural Development (particularly the water and waste loans) to complete their
projects. Public Law 566 financial assistance would be transferred to the Rural Utility Service and other rural development agencies to fund loans for new and existing Small Watershed Projects. These loans are subsidized depending upon
the wealth of the community. In this fashion, the loans differ
from the previous loans offered through the Agricultural
Credit Insurance Fund. If $15 million were used as subsidy
costs for loans, USDA could offer $155 million in loans to
implement roughly 75 projects.
Loans through the Agricultural Credit Insurance Fund have
been made in previous years to the local sponsors in order
to fund the local cost of Public Law 566 or 534 projects.
No funding for these loans is assumed in 1998.
Object Classification (in millions of dollars)
Identification code 12–1072–0–1–301

11.1
11.3
11.5
11.9
12.1
21.0
23.2
23.3
24.0

Direct obligations:
Personnel compensation:
Full-time permanent .............................................
Other than full-time permanent ...........................
Other personnel compensation .............................
Total personnel compensation .........................
Civilian personnel benefits .......................................
Travel and transportation of persons .......................
Rental payments to others ........................................
Communications, utilities, and miscellaneous
charges .................................................................
Printing and reproduction .........................................

1996 actual

1997 est.

1998 est.

58
1
4

55 ...................
1 ...................
3 ...................

63
14
3
2

59
13
3
2

3
1

...................
...................
...................
...................

2 ...................
1 ...................

25.2
25.2
26.0
31.0
32.0
41.0
99.0
99.0

Other services:
Other services .......................................................
Other services .......................................................
Supplies and materials .............................................
Equipment .................................................................
Land and structures ..................................................
Grants, subsidies, and contributions ........................

13
15
77
88
2
2
6
6
24 ...................
28
54

11.1
25.2

Subtotal, direct obligations ..................................
236
Reimbursable obligations ..............................................
16
Allocation Account:
Personnel compensation: Full-time permanent ........ ...................
Other services ............................................................ ...................

99.0
99.5

Subtotal, allocation account ................................. ...................
Below reporting threshold ..............................................
2

99.9

Total obligations ........................................................

245
30

...................
20
...................
...................
...................
20
40
24

1 ...................
1 ...................
2 ...................
1 ...................

254

278

Obligations are distributed as follows:
Natural Resources Conservation Service ................................ ................... ................... ...................
Forest Service .......................................................................... ................... ................... ...................

Personnel Summary
1996 actual

Identification code 12–1072–0–1–301

RESOURCE CONSERVATION

AND

1997 est.

1998 est.

1,436
44

1,281 ...................
32 ...................

43 ...................

DEVELOPMENT

For necessary expenses in planning and carrying out projects for
resource conservation and development and for sound land use pursuant to the provisions of section 32(e) of title III of the BankheadJones Farm Tenant Act, as amended (7 U.S.C. 1010–1011; 76 Stat.
607), the Act of April 27, 1935 (16 U.S.C. 590a–f), and the Agriculture
and Food Act of 1981 (16 U.S.C. 3451–3461), ø$29,377,000¿
$47,700,000, to remain available until expended (7 U.S.C. 2209b):
Provided, That this appropriation shall be available for employment
pursuant to the second sentence of section 706(a) of the Organic
Act of 1944 (7 U.S.C. 2225), and not to exceed $50,000 shall be
available for employment under 5 U.S.C. 3109. (7 U.S.C. 2201–02;
33 U.S.C. 701b–11; Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 12–1010–0–1–300

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Direct program:
00.01
Watershed Coordinators ............................................ ................... ...................
00.02
Technical Assistance/Rangeland Coordinators .........
30
30

13
35

00.91
01.01

Total direct program .............................................
Reimbursable program ..................................................

30
1

48
1

10.00

Total obligations ........................................................

2
30

1 ...................
30
49

21.40

23.90
23.95
24.40

Total new budget authority (gross) ..........................

32
–31

31
–31

49
–49

1 ................... ...................

NATURAL RESOURCES CONSERVATION SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

11.3

Other than full-time permanent ...........................

185

Total personnel compensation .........................
16
16
Civilian personnel benefits .......................................
3
4
Travel and transportation of persons .......................
1
1
Rental payments to others ........................................
1
1
Communications, utilities, and miscellaneous
charges .................................................................
1
1
Other services ............................................................
5
5
Supplies and materials .............................................
1
1
Equipment .................................................................
1
1
Grants, subsidies, and contributions ........................ ................... ...................

16
4
1
1

72.40

6
31
–31

6
31
–30

7
49
–50

11.9
12.1
21.0
23.2
23.3
25.2
26.0
31.0
41.0

Outlays (gross), detail:
86.90 Outlays from new current authority ..............................
86.93 Outlays from current balances ......................................
86.97 Outlays from new permanent authority .........................

25
5
1

26
3
1

44
5
1

87.00

Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

–1

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

29
30

29
29

48
49

1
5
1
1
18

89.00
90.00

1996 actual

277
289
2,050
2,146
2,050

1997 est.

289
289
2,050
2,146
2,050

11.1

Direct obligations:
Personnel compensation:
Full-time permanent .............................................

Personnel Summary
1996 actual

Identification code 12–1010–0–1–300

1997 est.

1998 est.

1001

OUTREACH

FOR

386

SOCIALLY DISADVANTAGED FARMERS

For grants and contracts pursuant to section 2501 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279),
ø$1,000,000¿ $5,000,000, to remain available until expended. (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 12–0601–0–1–351

1996 actual

1997 est.

1998 est.

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

1
–1

5
–5

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

5
1
–3

3 ...................
1
5
–4
–5

3 ................... ...................

1996 actual

1997 est.

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

1
2

1
5
3 ...................

87.00

Total outlays (gross) .................................................

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

1
3

1
4

5
5

1998 est.

289
289
2,050
2,146
2,050

Object Classification (in millions of dollars)
Identification code 12–1010–0–1–300

Total obligations ........................................................

29
30
48
1
1
1
1 ................... ...................

89.00
90.00

MAIN WORKLOAD FACTORS
Areas authorized at beginning of year .......................................
Areas authorized at end of year .................................................
Project plans written ...................................................................
Projects being implemented ........................................................
Projects completed ......................................................................

99.9

Under this program, the Department assists States, local
units of government, groups and individuals in developing
area plans for resource conservation and development (RC
and D).
RC and D areas are provided technical assistance to help
States and local units of government prepare plans for resource development and economic improvement and to plan
and install community-type conservation projects or measures.
Financial contributions, loans, and other Federal assistance
may be used to help carry out measures specified in RC
and D area plans. Loans are made through the farm loan
program of the Farm Service Agency, formerly the Farmers
Home Administration, to qualified local organizations to help
finance their share of the costs of installing the measures.
No loans are assumed in 1998. Program financial resources
are focused on the RC and D coordinators who assist the
local area councils. These coordinators help the area councils
develop plans and proposals to compete for financial assistance from other Federal, State and private sources.
In 1998, funds are provided in the RC&D program for funding local, non-Federal watershed and rangeland coordinators
to assist in watershed planning and rangeland conservation
throughout the country, including for grazing lands assistance, the Bay-Delta region (CA), and the salmon recovery
sites (CA, OR, WA, ID). The goal in funding these coordinators is to better enable the spectrum of community interests
to solve their natural resource problems and concerns locally
and together. The additional $18 million added to RC&D
could fund 25 States with coordinators for over 400 highpriority watersheds or rangelands. These estimates assume
a cost-share contribution from the watershed or rangeland
councils or steering committee served, and an eventual ‘‘graduation’’ from Federal support (in 3 years) as the local community members gain funding through other proposals and
sources.
The following tabulation shows the status of RC and D
areas authorized to receive technical and financial assistance.

99.0
99.0
99.5

1998 est.

Farm Outreach and Assistance Grants.—This program is
authorized under section 2501 of Title XXV of the Food, Agriculture, Conservation, and Trade Act of 1990. The Secretary
of Agriculture is empowered to make grants to eligible community-based organizations with demonstrated experience in
providing education or other agriculture-related services to
socially disadvantaged farmers and ranchers in their area
of influence. Also eligible are the 1890 Land-Grant Colleges,
Tuskegee University, Indian tribal community colleges and
post-secondary education facilities serving Hispanics.

186

NATURAL RESOURCES CONSERVATION SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
OUTREACH

FOR

Personnel Summary

SOCIALLY DISADVANTAGED FARMERS—Continued

Identification code 12–2268–0–1–302

In 1997, additional funds will be provided through the Fund
for Rural America to enhance program effectiveness.
In 1998, the increase will support funding for 28 entities
consisting of 1890/1862 Land Grant Institutions, Community
Based Organizations, Hispanic Servicing Institutions, and Native American Community Colleges, that through partnership
agreements with USDA provide outreach, training, and technical assistance and sound farm management and production
to small farmers and ranchers by providing assistance in custom farm plans, production, crop diversification, marketing
practices, farm accounting and recordkeeping. The overall objective of the program is to enhance the ability of small and
minority producers to operate a farming or ranching enterprise independently and produce income adequate to service
debts, maintain farm operations and provide a reasonable
standard of living. Services are provided by non-federal employees who are employed by the entities.

1001

1996 actual

Number of grants ........................................................................
Amount of grants (in millions of dollars) ..................................

1997 est.

10
1

1997 est.

1998 est.

19 ................... ...................

FORESTRY INCENTIVES PROGRAM

Program and Financing (in millions of dollars)
Identification code 12–3336–0–1–302

Obligations by program activity:
Total obligations ............................................................

1996 actual

1997 est.

1998 est.

21.40

1998 est.

12
1

1996 actual

For necessary expenses, not otherwise provided for, to carry out
the program of forestry incentives, as authorized in the Cooperative
Forestry Assistance Act of 1978 (16 U.S.C. 2101), including technical
assistance and related expenses, $6,325,000, to remain available until
expended, as authorized by that Act. (Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations
Act, 1997.)

10.00

GRANT OBLIGATIONS

Total compensable workyears: Full-time equivalent
employment ...............................................................

28
5

1 ................... ...................
6
6
6

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

7
–7

6
–7

6
–6

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

15
7
–11

11
7
–10

8
6
–8

GREAT PLAINS CONSERVATION PROGRAM
Program and Financing (in millions of dollars)
1996 actual

Identification code 12–2268–0–1–302

Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1998 est.

72.40

34
–12

22
–9

13
–6

7
86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

3
8

3
7

3
5

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

6
11

6
10

6
8

Outlays (gross), detail:
86.93 Outlays from current balances ......................................

89.00
90.00

1997 est.

This program provides cost-share assistance to participating
landowners or operators in the Great Plains area in the development and installation of long-term conservation plans and
practices for their land under contracts entered into in prior
years. It is a voluntary program in 556 designated counties
of 10 Great Plains States. Contracts with individual landowners range in time from 3 to 10 years.
MAIN WORKLOAD FACTORS
Program participants:
Number of new contracts during year ...................................
Number of contracts serviced during year .............................
Number of acres under contracts ..........................................

1996 actual

1997 est.

1998 est.

5 .................... ....................
6,846
5,846
4,646
17,777,700 14,198,500 12,164,000

As of September 30, 1996, there were 5,846 active contracts
on hand. Co-landowners or operators finance the entire cost
of installing recurring management-type practices and pay
a specified part of the cost-shared practices installed on their
land. Program regulations provide that cost-share rates offered in any contract shall not exceed 80 percent of the cost
of installing eligible practices within the designated county.
There is a cost-sharing limitation of $35 thousand for any
contract.

The Forestry Incentives program was authorized by the
Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2101).
The objectives of the program are to bring private, nonindustrial forest land under improved management, to increase
timber production, to ensure adequate supplies of timber
products, and to enhance other forest resources. In selecting
sites for cost-share assistance, the program will maximize
its effectiveness by selecting those plots that would otherwise
not have made the forest stand improvement or plantings
without Federal assistance. Acreage selected will be targeted
to provide the maximum environmental benefits, particularly
to benefit water quality and wildlife habitat.
The Forestry Incentives Program shares up to 65 percent
of the cost of tree planting and timberstand improvement.
The percentage cost-shared depends on the rate set in a particular State and county by the Natural Resources Conservation Service (NRCS), after consulting with the State forester.
The program is available in designated counties based on
a Forest Service survey of total eligible private timberland
available for production of timber products. Technical assistance is provided by Forest Service.
The 1996 program provided funding for 149,503 acres of
tree planting, and 33,725 acres in timber stand improve-

ments,and2,647acrestargetedtowardsspecialforestryandsitepreparation.

Object Classification (in millions of dollars)
Identification code 12–3336–0–1–302

1996 actual

DEPARTMENT OF AGRICULTURE

1997 est.

1998 est.

25.2
41.0

Other services ................................................................
Grants, subsidies, and contributions ............................

1
6

99.9

Total obligations ........................................................

NATURAL RESOURCES CONSERVATION SERVICE—Continued
Federal Funds—Continued

1
5

WATER BANK PROGRAM

187

21.40

1 ................... ...................
3 ................... ...................

23.90
23.95

Identification code 12–3320–0–1–302

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

Budgetary resources available for obligation:
21.40 Unobligated balance available, start of year:
Uninvested balance ...................................................
23.95 New obligations .............................................................
Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1996 actual

1997 est.

Total budgetary resources available for obligation
New obligations .............................................................

4 ................... ...................
–4 ................... ...................

40.00

Program and Financing (in millions of dollars)

New budget authority (gross), detail:
Appropriation ..................................................................

3 ................... ...................

1998 est.

1 ................... ...................
Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

1 ................... ...................
–1 ................... ...................

9
8
2
4 ................... ...................
–4
–6
–2
8

2 ...................

72.40

47
40
31
1 ................... ...................
–7
–10
–9

COLORADO RIVER BASIN SALINITY CONTROL PROGRAM
Program and Financing (in millions of dollars)

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

1997 est.

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

The objectives of the Water Bank Program are to conserve
water; preserve, maintain, and improve the Nation’s wetlands;
increase waterfowl habitat in migratory waterfowl nesting,
breeding, and feeding areas in the United States; and secure
recreational and environmental benefits for the Nation. The
program was authorized by the Water Bank Act of 1970,
as amended by Public Law 96–182, approved January 2, 1980.
The Water Bank Extension Act of 1994 extends for one year
1985 agreements entered into under the Water Bank Act
of 1970, and due to expire on December 31, 1995. Funding
for the expiring 1985 Water Bank agreements were transferred from the Wetlands Reserve Program 1995 appropriation to this account as authorized under the Water Bank
Extension Act of 1994. Congress did not provide funding for
this account in 1997. For 1998, USDA does not request program funding.
Under the Water Bank Program, the Secretary of Agriculture, through designated county offices, uses program
funds to enter into 10-year agreements with landowners and
operators for the conservation of specified wetlands. Provisions exist to renew agreements for additional periods, to
make annual payments on agreements, and under certain
conditions to increase payment rates in the fifth year of a
contract or at the time of renewal. During the period of the
agreement, the landowner agrees not to drain, burn, fill, or
otherwise destroy the wetland character of such areas.
During 1996, approximately 36 agreements are expected
on approximately 5,248 acres.

1996 actual

Total outlays (gross) .................................................

1 ................... ...................
3
6
2

Identification code 12–3318–0–1–304

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

87.00
Outlays (gross), detail:
86.93 Outlays from current balances ......................................

86.90
86.93

1998 est.

3 ................... ...................
4
6
2

The Colorado River Basin Salinity Control Program
(CRBSC), was authorized under section 202(c) of Title II of
the Colorado River Basin Salinity Control Act, as amended
by section 334, subtitle D, Title III of the Federal Agriculture
Improvement Act of 1996. The FAIR Act, combined authority
of the Agricultural Conservation Program (ACP), Water Quality Incentive Program (WQIP), Great Plains Conservation
Program (GPCP), and the Colorado River Basin Salinity Control Program (CRBSC), into the Environmental Quality Incentive Program (EQIP). The FAIR Act also repealed CRBSC
authority, while maintaining program account balances until
expended.
Beginning in 1996, EQIP was implemented on an interim
program level for CRBSC. Program funding in 1996 will provide cost-share assistance to landowners and others in the
Colorado River Basin States to include: Arizona, California,
Colorado, Nevada, New Mexico, Utah and Wyoming. The
main objective is to enhance the supply and quality of water
in the Colorado River for delivery to downstream users in
the U.S. and Mexico.
Practices are recommended by the Secretary of Agriculture.
The 1996 program focused on five project areas in Colorado,
Utah, and Wyoming.
The funded level of approximately $2.7 million will fund
the current five existing projects. Technical assistance funds
have been provided directly within the Conservation Operations account.
Under this program, 30 percent of cost-share funds will
be reimbursed to the U.S. Treasury by the Colorado River
Basin States.
Future funding targeted towards salinity efforts will be provided by the Commodity Credit Corporation (CCC) for EQIP
beginning 1997.
Object Classification (in millions of dollars)

4 ................... ...................

Identification code 12–3318–0–1–304

11.1
12.1

1996 actual

1997 est.

1998 est.

Personnel compensation: Full-time permanent ............. ................... ................... ...................
Civilian personnel benefits ............................................ ................... ................... ...................

188

NATURAL RESOURCES CONSERVATION SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
COLORADO RIVER BASIN SALINITY CONTROL PROGRAM—Continued
Object Classification (in millions of dollars)—Continued
Identification code 12–3318–0–1–304

25.2
41.0
99.9

1996 actual

1997 est.

1998 est.

Other services ................................................................ ................... ................... ...................
Grants, subsidies, and contributions ............................
4 ................... ...................
Total obligations ........................................................

4 ................... ...................

WETLANDS RESERVE PROGRAM
Program and Financing (in millions of dollars)
Identification code 12–1080–0–1–302

1996 actual

1997 est.

1998 est.

00.01
00.02
00.03
00.04
00.05

Obligations by program activity:
Restoration Costs ...........................................................
Easement Payments .......................................................
Technical Assistance .....................................................
Easement Overhead Costs .............................................
Cooperative Agreements ................................................

11
92
12
8
5

...................
...................
12
...................
...................

...................
...................
18
...................
...................

10.00

Total obligations ........................................................

128

23.90
23.95
24.40

40.00

83
32
19
77 ................... ...................
160
–128

32
–12

19
–18

77 ................... ...................

72.40

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

60
128
–109

80 ...................
12
18
–92
–17

80 ...................

26 ................... ...................
83
92
17
109

77 ................... ...................
109
92
17

The Wetlands Reserve Program is authorized by Title XIV,
Section 1438 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (P.L. 101–624), as amended by the Omnibus Budget Reconciliation Act of 1993 (P.L. 103–66), as
amended by the Federal Agriculture Improvement and Reform Act of 1996. The Fair Act authorized program funding
of the WRP under the Commodity Credit Corporation (CCC)
beginning FY 1997. The 1996 Fair Act also repealed old authority for the WRP, while maintaining program account balances until expended. Funding for the program will now be
provided by the Commodity Credit Corporation CCC. The primary objectives of the program are to preserve and restore
wetlands, improve wildlife habitat, and protect migratory waterfowl.
The Secretary of Agriculture, through designated county
offices, uses program funds to enter into contracts with landowners that operate farmed or converted wetlands, farmed
wetlands, or prior converted wetlands and adjoining land or
riparian corridors. The contracts are for both permanent and
non-permanent easements program participants will receive

payments for wetlands easements, in a lump sum or annual
installment payments for permanent easements, and annual
installment payments under non-permanent easements. Compensation will be in cash as specified in the contract, but
not to exceed the fair market value of the land. The program
provides cost-share assistance to landowners for carrying out
the establishment of conservation measures and practices.
The program cost-shares 75 percent to 100 percent of eligible
costs of an easement. The program also provides reimbursement to the landowner for overhead costs associated with
acquiring an easement. Technical assistance will be largely
funded within the account.
Under the 1992 program, 42,230 acres were enrolled in
9 pilot States. No funding was provided for operating a fiscal
year 1993 program.
The 1994 program provided funding for enrolling 75,000
acres in 20 States, including the nine pilot States. The 1995
program provided funding for enrolling 115,944 acres under
multiple sign-ups to eleviate a back-log of 1994 easement
opportunities. The 1995 appropriation was amended by the
Water Bank Extension Act of 1994 to provide $889,800 for
expiring 1985 water bank agreements. Funds were transferred from the WRP account to the Water Bank Account
as authorized under the Water Bank Extension Act of 1994.
Under the 1996 program, $5 million of WRP funds were
transferred to the Fish and Wildlife Foundation under a interagency agreement of joint partnership. The Foundation will
provide additional matching funds for the acquisition of wetland easements.
The 1996 budget provided funding for enrolling an estimated 80,000 acres. Beginning in 1997, program funding will
be provided under the Commodity Credit Corporation (CCC).
Funds under this account will remain until expended.
The proposed 1998 Funding for WRP activities through
CCC is for 212 thousand acres (or $162 million in CCC
Funds).
Object Classification (in millions of dollars)
1996 actual

Identification code 12–1080–0–1–302

11.1
12.1
23.2
25.4
32.0

Personnel compensation: Full-time permanent .............
Civilian personnel benefits ............................................
Rental payments to others ............................................
Operation and maintenance of facilities ......................
Land and structures ......................................................

99.9

Total obligations ........................................................

1997 est.

1998 est.

8
7
8
2
1
2
1 ...................
1
6
4
7
111 ................... ...................
128

Personnel Summary
Identification code 12–1080–0–1–302

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

1996 actual

178

1997 est.

1998 est.

170

268

RURAL CLEAN WATER PROGRAM
Program and Financing (in millions of dollars)
Identification code 12–3337–0–1–304

1996 actual

1997 est.

1998 est.

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
3
3
3
23.95 New obligations ............................................................. ................... ................... ...................
24.40 Unobligated balance available, end of year:
Uninvested balance ...................................................
3
3
3
21.40

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
3
73.20 Total outlays (gross) ...................................................... ...................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
3
72.40

3
–1

2
–1

NATURAL RESOURCES CONSERVATION SERVICE—Continued
Trust Funds

DEPARTMENT OF AGRICULTURE

86.93

Outlays (gross), detail:
Outlays from current balances ...................................... ...................

189

Balance Sheet (in millions of dollars)
1

1
1995 actual

1996 actual

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................

Total assets ........................................

Identification code 12–4177–0–3–351

This experimental Rural Clean Water Program, authorized
by Public Law 96–108 and Public Law 96–528, was a cooperative endeavor among farmers, various USDA agencies, and
other organizations to develop and test means of controlling
agricultural nonpoint source water pollution in rural areas.
Recommended project areas were developed by local and
State committees and approved by the Secretary of Agriculture in consultation with the Administrator of the Environmental Protection Agency. Full funding was provided in previous appropriations for all approved projects. The implementation period for all projects has ended, and no additional
obligations will be incurred. Payment of prior year obligations
is expected to continue through calendar year 1999. Similar
activities will be carried out through mandatory Environmental Quality Incentives Program.

1101
1999

1997 est.

1998 est.

Trust Funds
MISCELLANEOUS CONTRIBUTED FUNDS
Unavailable Collections (in millions of dollars)
1996 actual

Identification code 12–8210–0–7–300

1997 est.

1998 est.

Balance, start of year:
01.99 Balance, start of year .................................................... ................... ................... ...................
Receipts:
02.01 Miscellaneous contributed trust funds ..........................
22 ................... ...................
Appropriation:
05.01 Miscellaneous contributed trust funds ..........................
–21 ................... ...................
07.99

Total balance, end of year ............................................ ................... ................... ...................

AGRICULTURAL RESOURCE CONSERVATION DEMONSTRATION
GUARANTEED LOAN FINANCING ACCOUNT
Program and Financing (in millions of dollars)
Program and Financing (in millions of dollars)
1996 actual

Identification code 12–8210–0–7–300
Identification code 12–4177–0–3–351

Obligations by program activity:
10.00 Total obligations ............................................................
Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
23.95 New obligations .............................................................
24.90 Unobligated balance available, end of year: Fund
balance ......................................................................

1996 actual

1997 est.

10.00
2

Change in unpaid obligations:
New obligations .............................................................
Total financing disbursements (gross) .........................
Total financing disbursements (gross) .........................

9
–2

7
–2

5
–2

2
–2
2

21 ...................

2
–2
2

Net financing authority and financing disbursements:
89.00 Financing authority ........................................................ ................... ................... ...................
90.00 Financing disbursements ...............................................
2
2
2

Status of Guaranteed Loans (in millions of dollars)
1996 actual

1997 est.

1998 est.

Obligations by program activity:
Total obligations (object class 25.2) ............................ ...................

21.40

23.90
23.95
24.40

60.27

Identification code 12–4177–0–3–351

1998 est.

21.90

73.10
73.20
87.00

1997 est.

1998 est.

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................

2290

Outstanding, end of year ..........................................

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

New budget authority (gross), detail:
Appropriation (trust fund, indefinite) ............................

21 ................... ...................

72.40

................... ...................
13
...................
21 ...................
...................
–8
–10
...................

86.98

Outlays (gross), detail:
Outlays from permanent balances ................................ ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
21 ................... ...................
Outlays ........................................................................... ...................
8
10

Total guaranteed loan commitments ........................ ................... ................... ...................

2210

Total budgetary resources available for obligation
21
21 ...................
New obligations ............................................................. ...................
–21 ...................
Unobligated balance available, end of year:
Uninvested balance ...................................................
21 ................... ...................

Funds received from State and local organizations, and others are available for work under cooperative agreements for
soil survey, watershed protection, and resource conservation
and development activities.
Personnel Summary
Identification code 12–8210–0–7–300

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

1996 actual

1997 est.

1998 est.

190

RURAL DEVELOPMENT
Federal Funds

THE BUDGET FOR FISCAL YEAR 1998

86.90
86.93

Federal Funds
General and special funds:

Outlays (gross), detail:
Outlays from new current authority .............................. ................... ...................
Outlays from current balances ...................................... ................... ...................

60
620

87.00

RURAL DEVELOPMENT

Total outlays (gross) ................................................. ................... ...................

680

89.00
90.00

689
680

RURAL COMMUNITY ADVANCEMENT PROGRAM
For the cost of direct loans, loan guarantees, and grants, as authorized by 7 U.S.C. 1926, 1926a, 1926c, and 1932, $688,570,000, to
remain available until expended, of which $30,037,000 shall be for
rural community programs described in section 381E(d)(1) of the Consolidated Farm and Rural Development Act, as amended: of which
$608,080,000 shall be for the rural utilities programs described in
section 381E(d)(2) of such Act: of which $50,453,000 shall be for
the rural business and cooperative development programs described
in section 381E(d)(3) of such Act: Provided, That section 381E(d)(3)(B)
of such Act is amended by inserting after the phrase, ‘‘business and
industry’’, the words, ‘‘direct and’’: Provided further, That of the
amount appropriated for rural utilities programs, not to exceed
$25,000,000 shall be for water and waste disposal systems to benefit
the Colonias along the United States/Mexico border, including grants
pursuant to section 306C of such Act; not to exceed $15,000,000 shall
be for technical assistance grants for rural waste systems pursuant
to section 306(a)(14) of such Act; and not to exceed $5,150,000 shall
be for contracting with qualified national organizations for a circuit
rider program to provide technical assistance for rural water systems:
Provided further, That of the total amounts appropriated, not to exceed
$32,163,600 shall be available through June 30, 1998 for
empowerment zones and enterprise communities, as authorized by
Public Law 103–66, of which $1,614,600 shall be for rural community
programs described in section 381E(d)(1) of such Act; of which
$21,952,000 shall be for the rural utilities programs described in
section 381E(d)(2) of such Act; of which $8,597,000 shall be for the
rural business and cooperative development programs described in
section 381E(d)(3) of such Act: Provided further, That any obligated
and unobligated balances available for prior years for the ‘‘Rural
Water and Waste Disposal Grants,’’ ‘‘Rural Water and Waste Disposal
Loans Program Account,’’ ‘‘Emergency Community Water Assistance
Grants,’’ ‘‘Solid Waste Management Grants,’’ the community facility
grant program in the ‘‘Rural Housing Assistance Program’’ Account,
‘‘Community Facility Loans Program Account,’’ ‘‘Rural Business Enterprise Grants,’’ ‘‘Rural Business and Industry Loans Program Account,’’
and ‘‘Local Technical Assistance and Planning Grants’’ shall be transferred to and merged with this account.
Program and Financing (in millions of dollars)
1996 actual

1997 est.

...................
...................
...................
...................
...................
...................
...................
...................
...................
...................

72
484
3
18
1
9
6
40
29
27

Total obligations (object class 41.0) ........................ ................... ...................

689

Identification code 12–0400–0–1–452

00.01
00.02
00.03
00.04
00.05
00.06
00.07
00.08
00.10
00.11

Obligations by program activity:
Water and waste disposal direct loan subsidy .............
Water and waste disposal grants .................................
Solid waste management grants ..................................
Community facility direct loan subsidy .........................
Community facility guaranteed loan subsidy ................
Community facility grants .............................................
Business and Industry guranteed loan subsidy ............
Rural business enterprise grants ..................................
Mandatory grants to States ...........................................
Matching grants to States ............................................

1998 est.

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 12–0400–0–1–452

1996 actual

1997 est.

1998 est.

Direct loan levels supportable by subsidy budget authority:
1150 Direct water and waste disposal loan levels ................ ................... ...................
1150 Direct community facility loan levels ............................ ................... ...................
1150 Direct business and industry loan levels ...................... ................... ...................

734
210
50

1159

................... ...................

994

................... ...................
................... ...................
................... ...................

9.76
8.38
–7.16

Weighted average subsidy rate ................................. ................... ...................
Direct loan subsidy budget authority:
1330 Direct water and waste disposal loans subsidy budget
authority .................................................................... ................... ...................
1330 Direct community facility loans subsidy budget authority ........................................................................ ................... ...................

9.05

Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Direct water and waste disposal loans subsidy rate
1320 Direct community facility loans subsidy rate ...............
1320 Direct business and industry loans subsidy rate .........
1329

1339

72
18

Total subsidy budget authority ................................. ................... ...................
Direct loan subsidy outlays:
1340 Direct water and waste disposal loans subsidy outlays ................... ...................
1340 Direct community facility loans subsidy outlays .......... ................... ...................

112
23

1349

Total subsidy outlays ................................................ ................... ...................

135

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Water and waste disposal loan guarantee levels ......... ................... ...................
2150 Community facility loan guarantee levels ..................... ................... ...................
2150 Business and Industry loan guarantee levels ............... ................... ...................

75
209
610

2159

................... ...................

894

................... ...................
................... ...................
................... ...................

–1.90
0.40
0.97

Weighted average subsidy rate ................................. ................... ...................
Guaranteed loan subsidy budget authority:
2330 Guaranteed community facility loans subsidy budget
authority .................................................................... ................... ...................
2330 Guaranteed business and industry loans subsidy
budget authority ........................................................ ................... ...................

0.08

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Guaranteed water and waste disposal loan subsidy
rate ............................................................................
2320 Guranteed community facility loan subsidy rate ..........
2320 Guaranteed business and industry loan subsidy rate
2329

1
6

Budgetary resources available for obligation:
21.40 Unobligated balance available, start of year:
Uninvested balance ................................................... ................... ................... ...................
22.00 New budget authority (gross) ........................................ ................... ...................
689
23.90
23.95

Total budgetary resources available for obligation ................... ...................
New obligations ............................................................. ................... ...................

689
–689

40.00

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................
................... ...................

689
689

73.10
73.20
73.32
74.40

Change in unpaid obligations:
New obligations .............................................................
Total outlays (gross) ......................................................
Obligated balance transferred from other accounts
Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

................... ...................
................... ...................
................... ...................

689
–680
1,582

................... ...................

1,591

Total subsidy budget authority ................................. ................... ...................
Guaranteed loan subsidy outlays:
2340 Guaranteed community facility loan subsidy outlays ................... ...................
2340 Guranteed business and industry loan subsidy outlays ................... ...................

2349

10.00

2339

Total subsidy outlays ................................................ ................... ...................

1
6

This account would consolidate under the Rural Community
Advancement Program (RCAP) funding for the direct and
guaranteed water and waste disposal loans, water and waste
disposal grants, emergency community water assistance
grants, solid waste management grants, direct and guaranteed community facility loans, community facility grants, direct and guaranteed business and industry loans, rural business enterprise grants, and rural business opportunity grants.
This proposal is in accordance with the provisions set forth
in the Federal Agriculture Improvement and Reform Act of
1996, Public Law 104–127 (the 1996 Act). Consolidating funding for these 12 loan and grant programs under RCAP will
provide greater flexibility to tailor financial assistance to applicant needs.

RURAL UTILITIES SERVICE
Federal Funds

DEPARTMENT OF AGRICULTURE

RCAP will be composed of the following five subaccounts:
the Rural Community Facilities Account, the Rural Utilities
Account, the Rural Business and Cooperative Development
Account, the National Reserve Account, and the Federally
Recognized Indian Tribe Account. The funding, except the
12.5 percent of the funding in the National Office Reserve
Account and the 3 percent of the funding in the Federally
Recognized Indian Tribe Account, will be allocated to Rural
Development State Directors for their priority-setting on a
state-by-state basis. State Directors are authorized to transfer
not more than 25 percent of the amount in the account that
is allocated for the State for the fiscal year to any other
account in which amounts are allocated for the State for
the fiscal year, with up to 10 percent of funds allowed to
be re-allocated nation-wide.
In addition, five percent of RCAP funds will be made available as block grants to States that request such grants, consistent with the 1996 Act. Further, five percent of the remaining amount available for allocation may be made available
for matching grants.

RURAL UTILITIES SERVICE
Federal Funds
General and special funds:
SALARIES

AND

EXPENSES

For necessary expenses of the Rural Utilities Service, including
administering the programs authorized by the Rural Electrification
Act of 1936, as amended, and the Consolidated Farm and Rural
Development Act, as amended, and cooperative agreements,
ø$33,195,000¿ $33,000,000: Provided, That this appropriation shall
be available for employment pursuant to the second sentence of
706(a) of the Organic Act of 1944, and not to exceed $105,000 may
be used for employment under 5 U.S.C. 3109. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 12–1981–0–1–452

1996 actual

1997 est.

1998 est.

Obligations by program activity:
00.01 Direct program ...............................................................
01.01 Reimbursable program ..................................................

18
47

33
34

33
37

10.00

Total obligations ........................................................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

65
–65

67
–67

70
–70

191

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources ..................................................... ...................
–34
–37
88.45
Offsetting governmental collections .....................
–47 ................... ...................
88.90

Total, offsetting collections (cash) ..................

–47

–34

–37

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

18
4

33
33

33
30

The Rural Utilities Service (RUS), under authority of the
Rural Electrification Act of 1936, as amended, and the Consolidated Farm and Rural Development Act, makes grants,
direct loans, and guarantees loans made by other qualified
lenders, to suppliers of electric, telecommunications, and
water/wastewater/waste disposal services in rural areas. RUS
also provides technical assistance to rural communities concerning water and waste disposal services. In addition, RUS
makes grants and loans to provide access to advanced telecommunications services for distance learning and telemedicine facilities.
The electric and telecommunications loan and grant programs are administered in the Washington, DC, offices of
RUS. In addition, RUS general field representatives visit borrowers periodically and maintain liaison between borrowers
and headquarters. RUS administers the water and waste programs through the Washington headquarters, with the loan
making and servicing activities being performed by the Rural
Development field office staff.
Object Classification (in millions of dollars)
1996 actual

Identification code 12–1981–0–1–452

11.1
11.5
11.9
12.1
21.0
23.3
24.0
25.2
99.0
99.0
99.5
99.9

Direct obligations:
Personnel compensation:
Full-time permanent .............................................
Other personnel compensation .............................

1997 est.

1998 est.

14
2

21
1

20
1

Total personnel compensation .........................
16
Civilian personnel benefits ....................................... ...................
Travel and transportation of persons ....................... ...................
Communications, utilities, and miscellaneous
charges .................................................................
1
Printing and reproduction ......................................... ...................
Other services ............................................................
1

22
5
1

21
5
1

1
1
3

1
1
4

Subtotal, direct obligations ..................................
18
33
Reimbursable obligations ..............................................
47
34
Below reporting threshold .............................................. ................... ...................

33
36
1

Total obligations ........................................................

Personnel Summary
New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
Permanent:
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

70.00

Total new budget authority (gross) ..........................

1996 actual

Identification code 12–1981–0–1–452

14
67
–66

1998 est.

..............................
and holiday hours

236
1

385
1

368
1

..............................
and holiday hours

529
1

400
1

415
1

15
70
–66

1997 est.

SALARIES

AND

EXPENSES

Program and Financing (in millions of dollars)
Outlays (gross), detail:
86.90 Outlays from new current authority ..............................
4
26
86.93 Outlays from current balances ...................................... ...................
13
86.97 Outlays from new permanent authority .........................
47
27
86.98 Outlays from permanent balances ................................ ................... ...................

26
6
29
5

87.00

Total outlays (gross) .................................................

Identification code 12–3100–0–1–271

1996 actual

1997 est.

1998 est.

72.90

6 ................... ...................
–6 ................... ...................

192

RURAL UTILITIES SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued

43.00

Appropriation (total) ..................................................

13 ................... ...................

SALARIES

70.00

Total new budget authority (gross) ..........................

73.10
73.20

Change in unpaid obligations:
New obligations .............................................................
Total outlays (gross) ......................................................

13 ................... ...................
–13 ................... ...................

AND

EXPENSES—Continued

Program and Financing (in millions of dollars)—Continued
1996 actual

Identification code 12–3100–0–1–271

1997 est.

1998 est.

–1 ...................

86.98

Outlays (gross), detail:
Outlays from permanent balances ................................

6 ................... ...................

86.90

Outlays (gross), detail:
Outlays from new current authority ..............................

13 ................... ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

13 ................... ...................
13 ................... ...................

In 1996, the Rural Electrification Administration became
part of the Rural Utilities Service (RUS) along with certain
programs formerly administered by the Rural Development
Administration.
øRURAL UTILITIES ASSISTANCE PROGRAM¿
ø(INCLUDING

TRANSFERS OF FUNDS)¿

øFor the cost of direct loans, loan guarantees, and grants, as authorized by 7 U.S.C. 1926, 1928, and 1932, except for 381E, 381H,
381N of the Consolidated Farm and Rural Development Act,
$566,935,000, to remain available until expended, for direct loans
and loan guarantees and grants for rural water and waste disposal,
and solid waste management grants of the Rural Utilities Service:
Provided, That the cost of direct loans and loan guarantees shall
be as defined in section 502 of the Congressional Budget Act of
1974, as amended: Provided further, That the amounts appropriated
shall be transferred to loan program and grant accounts as determined by the Secretary: Provided further, That, through June 30,
1997, of the total amount appropriated, $18,700,000 shall be available
for the costs of direct loans, loan guarantees, and grants to be made
available for empowerment zones and enterprise communities, as authorized by Public Law 103–66: Provided further, That, of the total
amount appropriated, not to exceed $18,700,000 shall be for water
and waste disposal systems to benefit the Colonias along the United
States/Mexico border, including grants pursuant to section 306C of
the Consolidated Farm and Rural Development Act, as amended:
Provided further, That, of the total amount appropriated, not to exceed $5,200,000 shall be available for contracting with qualified national organizations for a circuit rider program to provide technical
assistance for rural water systems: Provided further, That an amount
not less than that available in fiscal year 1996 be set aside and
made available for ongoing technical assistance under sections
306(a)(14) (7 U.S.C. 1926) and 310(B)(b) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1932): Provided further, That
of the total amount appropriated, not to exceed $8,750,000 shall be
for water and waste disposal systems pursuant to section 757 of
Public Law 104–127: Provided further, That notwithstanding section
306(a)(7) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926(a)(7)), the town of Berlin, New Hampshire, shall be eligible during fiscal year 1997 for a grant under the rural utilities assistance program.¿ (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)

In 1996 and 1997, funding for direct and guaranteed water
and waste disposal loans, rural water and waste disposal
grants, and solid waste management grants was provided
under the Rural Utilities Assistance Program and transferred
to the Rural Water and Waste Disposal Loans Program Account, Rural Water and Waste Disposal Grants Account, and
Solid Waste Management Grants Account for administration.
In 1998, funding is requested to be appropriated for these
programs to the Rural Community Advancement Program and
all balances be transferred from the Rural Utilities Assistance
Program Account to the Rural Community Advancement Program Account.
In 1996, funding for salaries and expenses associated with
this program was appropriated to this account and transferred to the Rural Utilities Service, Salaries and expenses
account. In 1997, funding for salaries and expenses associated
with this program was appropriated to the Rural Utilities
Service Salaries and expenses account and also is requested
to be appropriated to that account in 1998.
DISTANCE LEARNING

AND

MEDICAL LINK PROGRAM

For the cost of direct loans and grants, as authorized by 7 U.S.C.
950aaa et seq., as amended, ø$9,000,000¿ $21,000,000, to remain
available until expended, to be available for loans and grants for
telemedicine and distance learning services in rural areas: Provided,
That the costs of direct loans shall be as defined in section 502
of the Congressional Budget Act of 1974. (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 12–1232–0–1–452

00.01
00.02

Obligations
Distance
Distance
Loans

1996 actual

by program activity:
Learning and Medical Link Grants .................
8
Learning and Medical Link Treasury Rate
......................................................................... ...................

1997 est.

1998 est.

2 ...................

10.00

Total obligations (object class 41.0) ........................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

8
–8

9
–9

21
–21

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

20
8
–10

18
9
–24

3
21
–19

Outlays (gross), detail:
Outlays from new current authority .............................. ...................
Outlays from current balances ......................................
10

6
18

16
3

Program and Financing (in millions of dollars)
Identification code 12–1982–0–1–452

1996 actual

1997 est.

1998 est.

00.01

Obligations by program activity:
Administrative Expenses ................................................

13 ................... ...................

10.00

Total obligations (object class 25.2) ........................

13 ................... ...................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

13 ................... ...................
–13 ................... ...................

New budget authority (gross), detail:
Appropriation:
40.00
Appropriation .............................................................
40.00
Appropriation .............................................................
41.00 Transferred to other accounts .......................................
42.00 Transferred from other accounts ...................................

86.90
86.93
501
567 ...................
11 ................... ...................
–535
–568 ...................
36 ................... ...................

87.00

Total outlays (gross) .................................................

89.00

Net budget authority and outlays:
Budget authority ............................................................

RURAL UTILITIES SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
90.00

Outlays ...........................................................................

1996 actual

Direct loan levels supportable by subsidy budget authority:
1150 Direct loan levels ........................................................... ...................

1997 est.

EMERGENCY COMMUNITY WATER ASSISTANCE GRANTS
Program and Financing (in millions of dollars)

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 12–1232–0–1–452

1996 actual

Identification code 12–2046–0–1–451

1998 est.

10.00
150

193

150

Obligations by program activity:
Total obligations (object class 41.0) ............................

1997 est.

1998 est.

1 ...................

1159

Total direct loan levels ............................................. ...................
Direct loan subsidy (in percent):
1320 Subsidy rate ................................................................... ...................

150

1.02

0.02

1329

1.02

0.02

Weighted average subsidy rate ................................. ...................
Direct loan subsidy budget authority:
1330 Subsidy budget authority ............................................... ...................

23.90
23.95
24.40

2 ...................

1339

Total subsidy budget authority ................................. ...................
Direct loan subsidy outlays:
1340 Subsidy outlays .............................................................. ...................

2 ...................
1

1349

Total subsidy outlays ................................................ ...................

42.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................
New budget authority (gross), detail:
Transferred from other accounts ...................................

5
–4

1 ...................
–1 ...................

1 ................... ...................

5 ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
18
14
8
73.10 New obligations .............................................................
4
1 ...................
73.20 Total outlays (gross) ......................................................
–8
–7 ...................
73.31 Obligated balance transferred to other accounts ......... ................... ...................
–8
73.40 Adjustments in expired accounts ..................................
–1 ................... ...................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
14
8 ...................
72.40

The loan and grant program provides access to advanced
telecommunications services for improved education and
health care in rural areas throughout the country. The loans
and grants help education and health care providers bring
the most modern technology, level of care, and education to
rural America so its citizens can compete regionally, nationally, and globally.

Outlays (gross), detail:
Outlays from current balances ......................................

89.00
90.00

SOLID WASTE MANAGEMENT GRANTS

86.93

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

5 ................... ...................
8
7 ...................

7 ...................

Program and Financing (in millions of dollars)
Identification code 12–2045–0–1–304

1996 actual

1997 est.

1998 est.

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

3 ...................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

2
–2

3 ...................
–3 ...................

42.00

New budget authority (gross), detail:
Transferred from other accounts ...................................

These grant programs are authorized under Section 306A
of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926(a) and 7 U.S.C. 1926(b)) as amended. Grants
are made to public bodies and private nonprofit organizations
for construction or extension of waterlines, repair or maintenance of existing systems, replacement of equipment, and
payment of costs to correct emergency situations. No program
is proposed for 1998. However, this grant program is included
in the Rural Community Advancement Program.

3 ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
4
4
4
73.10 New obligations .............................................................
2
3 ...................
73.20 Total outlays (gross) ......................................................
–3
–3 ...................
73.31 Obligated balance transferred to other accounts ......... ................... ...................
–4
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
4
4 ...................

RURAL WATER

72.40

Outlays (gross), detail:
86.93 Outlays from current balances ......................................
Net budget authority and outlays:
89.00 Budget authority ............................................................
90.00 Outlays ...........................................................................

2
3

3 ...................

3 ...................
3 ...................

This grant program is authorized under Section 310B(b)
of the Consolidated Farm and Rural Development Act, as
amended (7 U.S.C. 1932). Grants are made to non-profit organizations to provide technical assistance to local and regional
governments for the purpose of reducing or eliminating pollution of water resources, and for improving the planning and
management of solid waste disposal facilities.
In 1998, funding is requested to be appropriated for the
solid waste management grants to the Rural Community Advancement Program and all balances be transferred from this
account to the Rural Community Advancement Program Account.

AND

WASTE DISPOSAL GRANTS

Program and Financing (in millions of dollars)
Identification code 12–2066–0–1–452

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

1996 actual

1997 est.

1998 est.

394

503 ...................

2
391

5 ...................
498 ...................

21.40

23.90
23.95
24.40

42.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................
New budget authority (gross), detail:
Transferred from other accounts ...................................

7 ................... ...................
399
–394

503 ...................
–503 ...................

5 ................... ...................

391

498 ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
1,211
1,175
1,206
73.10 New obligations .............................................................
394
503 ...................
73.20 Total outlays (gross) ......................................................
–423
–472 ...................
73.31 Obligated balance transferred to other accounts ......... ................... ...................
–1,206
73.45 Adjustments in unexpired accounts ..............................
–7 ................... ...................
72.40

194

RURAL UTILITIES SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
70.00

General and special funds—Continued
RURAL WATER

AND

233

67 ...................

WASTE DISPOSAL GRANTS—Continued

Program and Financing (in millions of dollars)—Continued
Identification code 12–2066–0–1–452

74.40

Total new budget authority (gross) ..........................

1996 actual

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation ............................................................. ...................
292
243
73.10 New obligations .............................................................
232
68 ...................
73.20 Total outlays (gross) ......................................................
–197
–117 ...................
73.31 Obligated balance transferred to other accounts ......... ................... ...................
–243
73.32 Obligated balance transferred from other accounts
262 ................... ...................
73.40 Adjustments in expired accounts ..................................
–1 ................... ...................
73.45 Adjustments in unexpired accounts ..............................
–4 ................... ...................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
292
243 ...................
72.40

1997 est.

1998 est.

Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1,175

1,206 ...................

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

19
404

20 ...................
452 ...................

87.00

Total outlays (gross) .................................................

423

472 ...................

391
423

498 ...................
472 ...................

This grant program is authorized under section 306(a)(2)
of the Consolidated Farm and Rural Development Act, as
amended. Grants are authorized to be made to associations,
including nonprofit corporations, public and quasi-public agencies, and certain Indian tribes to finance development, storage, treatment, purification, or distribution of water or the
collection, treatment, or disposal of waste in rural areas. The
amount of any development grant may not exceed 75 percent
of the eligible development cost of the project.
The major objectives of the rural water and waste disposal
grant program are: (1) to provide assistance to attain basic
human amenities; (2) to alleviate health hazards; (3) to promote stability of rural areas by meeting the need for new
and improved rural water and waste disposal systems; and
(4) to meet national safe drinking water and clean water
standards.
In 1998, funding is requested to be appropriated for the
rural water and waste disposal grants to the Rural Community Advancement Program and all balances be transferred
from this account to the Rural Community Advancement Program Account.

AND

WASTE DISPOSAL LOANS PROGRAM ACCOUNT

Program and Financing (in millions of dollars)
Identification code 12–1980–0–1–452

1996 actual

1997 est.

1998 est.

Obligations by program activity:
00.01 Direct loan subsidy ........................................................
00.02 Reestimates of direct loan subsidy ...............................
00.03 Interest on reestimates of direct loan subsidy .............

136
68 ...................
84 ................... ...................
12 ................... ...................

10.00

232

Total obligations (object class 41.0) ........................

68 ...................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ................................................... ...................
6 ...................
22.00 New budget authority (gross) ........................................
233
67 ...................
22.10 Resources available from recoveries of prior year obligations .......................................................................
4 ................... ...................
22.22 Unobligated balance transferred from other accounts
2 ................... ...................
22.30 Unobligated balance expiring ........................................ ...................
–5 ...................
21.40

23.90
23.95
24.40

87.00

Total outlays (gross) .................................................

197

117 ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

233
197

67 ...................
117 ...................

9
2 ...................
92
115 ...................
96 ................... ...................

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 12–1980–0–1–452

1996 actual

1997 est.

1998 est.

Direct loan levels supportable by subsidy budget authority:
1150 Direct loan levels ...........................................................

608

740 ...................

1159

Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Subsidy rate ...................................................................

608

740 ...................

22.50

9.02 ...................

1329

22.50

9.02 ...................

137

67 ...................

Weighted average subsidy rate .................................
Direct loan subsidy budget authority:
1330 Subsidy budget authority ...............................................

New budget authority (gross), detail:
Current:
42.00
Transferred from other accounts ..............................
Permanent:
60.05
Appropriation (indefinite) ..........................................

239
–232

68 ...................
–68 ...................

6 ................... ...................

137

67 ...................

96 ................... ...................

Total subsidy budget authority .................................
Direct loan subsidy outlays:
1340 Subsidy outlays ..............................................................

137

67 ...................

102

117 ...................

1349

Credit accounts:
RURAL WATER

86.90
86.93
86.97

1339

Total subsidy outlays ................................................

102

117 ...................

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Loan guarantee levels ...................................................

75 ...................

2159

75 ...................

–1.18

–1.09 ...................

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Guaranteed Subsidy rate ...............................................

This account provides funding to local governments and
nonprofit organizations for the development of storage, treatment, purification, or distribution of water or collection, treatment, or disposal of waste in rural areas.
As required by the Federal Credit Reform Act of 1990,
this account records, for this program, the subsidy costs associated with the direct loans obligated and loan guarantees
committed in 1992 and beyond, as well as administrative
expenses of this program. The subsidy amounts are estimated
on a present value basis; the administrative expenses are
estimated on a cash basis.
In 1998, funding is requested to be appropriated for the
direct and guaranteed water and waste loan programs to the
Rural Community Advancement Program and all balances
from the Rural Water and Waste Disposal Loans Program
Account be transferred to the Rural Community Advancement
Program account. Funding for salaries and expenses associated with this program is requested to be appropriated to
the Rural Utilities Service Salaries and expenses account.

RURAL UTILITIES SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
RURAL WATER

AND

1231
1251
1264

Program and Financing (in millions of dollars)
Identification code 12–4226–0–1–452

1996 actual

1997 est.

Obligations by program activity:
Direct Loans ...................................................................
Interest on Treasury Borrowing ......................................

605
105

755
149

734
204

10.00

Total obligations ........................................................

710

904

938

747

904

938

Budgetary resources available for obligation:
New financing authority (gross) ....................................
Resources available from recoveries of prior year obligations .......................................................................
22.60 Redemption of debt .......................................................

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

904
–904

417

758

764

300
30

195
–49

215
–41

Spending authority from offsetting collections
(total) ................................................................

330

146

174

Total new financing authority (gross) ......................

747

904

938

72.99
73.10
73.20
73.32
73.45

3,052

1995 actual

1996 actual

122

152

280

294

262

292

243

202

979
14
–77

1,615
23
–324

2,361
57
–331

3,050
72
–360

916

1,314

2,087

2,762

Total assets ........................................
LIABILITIES:
Federal liabilities:
2101
Accounts payable ................................
2103
Debt .....................................................

1,300

1,758

2,610

3,258

1,035
3

1,460
6

2,361
6

3,050
6

2999

1,038

1,466

2,367

3,056

262

292

243

202

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1402
Interest receivable ..............................
1405
Allowance for subsidy cost (–) ...........
1499

1,215
152
292

2,362

Balance Sheet (in millions of dollars)
Identification code 12–4226–0–1–452

Change in unpaid obligations:
Unpaid obligations, start of year:
Obligated balance:
72.47
Authority to borrow ............................................... ...................
72.90
Obligated balance ................................................. ...................
72.95
Receivables from program account ..........................
262

1,615

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond. The amounts in this account are a means of
financing and are not included in the budget totals. Loans
made prior to 1992 are recorded in the Rural Development
Insurance Fund Liquidating Account.
The water and waste disposal program makes loans and
grants to finance water and waste disposal facilities in rural
areas.

938
–938

70.00

28 ................... ...................
–65 ................... ...................
710
–710

67.15

68.90

Outstanding, end of year ..........................................

650
759
706
–16
–12
–16
981 ................... ...................

1998 est.

00.01
00.02

22.00
22.10

Disbursements: Direct loan disbursements ...................
Repayments: Repayments and prepayments .................
Write-offs for default: Other adjustments, net .............

1290

WASTE DISPOSAL DIRECT LOANS FINANCING
ACCOUNT

195

1,132
281
243

262
1,659
1,656
710
904
938
–756
–907
–910
1,470 ................... ...................
–28 ................... ...................

74.47
74.90
74.95

Total unpaid obligations, start of year ................
New obligations .............................................................
Total financing disbursements (gross) .........................
Obligated balance transferred from other accounts
Adjustments in unexpired accounts ..............................
Unpaid obligations, end of year:
Obligated balance:
Authority to borrow ...............................................
Obligated balance .................................................
Receivables from program account ..........................

1,215
152
292

1,132
281
243

1,187
295
202

74.99
87.00

Total unpaid obligations, end of year ..................
Total financing disbursements (gross) .........................

1,659
756

1,656
907

Net present value of assets related
to direct loans ...........................

1999

1997 est.

1998 est.

1,684
910

–197
–30

88.90
88.95

Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............

–300
–30

–195
49

–215
41

89.00
90.00

417
456

758
712

764
695

–117
–9

–113
–14

–16
–12
–16
–54
–57
–72
–3 ................... ...................

Status of Direct Loans (in millions of dollars)
1996 actual

1997 est.

1998 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans .............................................
608
745
734
1113 Unobligated limitation carried forward .........................
–3 ................... ...................
1131 Direct loan obligations exempt from limitation ............ ...................
10 ...................
1150

Total direct loan obligations .....................................

3999

Total net position ................................

262

292

243

202

4999

Total liabilities and net position ............

1,300

1,758

2,610

3,258

RURAL WATER

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal sources .....................................................
88.25
Interest on uninvested funds ...............................
Non-Federal sources:
88.40
Repayment of principal ....................................
88.40
Interest received on loans ................................
88.40
Miscelleneous offsetting collections ................

Identification code 12–4226–0–1–452

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

605

755

734

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year ............................................. ...................

1,615

2,362

WASTE DISPOSAL GUARANTEED LOANS
FINANCING ACCOUNT

AND

Program and Financing (in millions of dollars)
Identification code 12–4218–0–3–452

1996 actual

1997 est.

1998 est.

00.01

Obligations by program activity:
Investment in secondary market ................................... ................... ...................

10.00

Total obligations ........................................................ ................... ...................

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
24 ................... ...................
22.00 New financing authority (gross) .................................... ................... ...................
1
22.21 Unobligated balance transferred to other accounts
–24 ................... ...................
21.90

23.90
23.95

1
–1

68.00

New financing authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) ..................................... ................... ...................

Change in unpaid obligations:
New obligations ............................................................. ................... ...................
Total financing disbursements (gross) ......................... ................... ...................
Total financing disbursements (gross) ......................... ................... ...................

1
–1
1

73.10
73.20
87.00

196

RURAL UTILITIES SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

Credit accounts—Continued

RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS
PROGRAM ACCOUNT

RURAL WATER AND WASTE DISPOSAL GUARANTEED LOANS
FINANCING ACCOUNT—Continued

(INCLUDING TRANSFERS OF FUNDS)

Program and Financing (in millions of dollars)—Continued
1996 actual

Identification code 12–4218–0–3–452

1997 est.

Offsets:
Against gross financing authority and financing disbursements:
88.40
Offsetting collections (cash) from: Fees ................... ................... ...................

89.00
90.00

1998 est.

–1

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ................... ...................
Financing disbursements ............................................... ................... ................... ...................

Status of Guaranteed Loans (in millions of dollars)
1996 actual

Identification code 12–4218–0–3–452

Position with respect to appropriations act limitation
on commitments:
2111 Limitation on guaranteed loans made by private lenders ..............................................................................
2112 Uncommitted loan guarantee limitation .......................
2150
2199

Total guaranteed loan commitments ........................
Guaranteed amount of guaranteed loan commitments

1997 est.

1998 est.

75
75
75
–16 ................... ...................
59
47

75
60

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................
494
8
31
2231 Disbursements of new guaranteed loans ......................
1
24
50
2251 Repayments and prepayments ...................................... ...................
–1
–1
2264 Adjustments: Other adjustments, net ...........................
–487 ................... ...................
2290

Outstanding, end of year ..........................................

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................
Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
2364
Other adjustments, net .............................................

Insured loans pursuant to the authority of section 305 of the Rural
Electrification Act of 1936, as amended (7 U.S.C. 935), shall be made
as follows: 5 percent rural electrification loans, $125,000,000; 5 percent rural telecommunications loans, ø$75,000,000¿ $40,000,000; cost
of money rural telecommunications loans, $300,000,000; municipal
rate rural electric loans, ø$525,000,000¿ $400,000,000; and loans
made pursuant to section 306 of that Act, rural electric, $300,000,000,
and rural telecommunications, $120,000,000, to remain available until
expended.
For the cost, as defined in section 502 of the Congressional Budget
Act of 1974, including the cost of modifying loans, of direct and
guaranteed loans authorized by the Rural Electrification Act of 1936,
as amended (7 U.S.C. 935 and 936), as follows: cost of ødirect loans,
$4,818,000; cost of municipal rate loans, $28,245,000; cost of money
rural telecommunications loans, $60,000; cost of loans guaranteed
pursuant to section 306, $2,790,000¿ rural electric loans, $28,965,000,
and the cost of telecommunications loans, $1,628,000: Provided, That
notwithstanding section 305(d)(2) of the Rural Electrification Act of
1936, borrower interest rates may exceed 7 percent per year.
In addition, for administrative expenses necessary to carry out
the direct and guaranteed loan programs, ø$29,982,000¿ $34,398,000,
which shall be transferred to and merged with the appropriation
for ‘‘Salaries and Expenses.’’. (Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies Appropriations Act,
1997.)
Unavailable Collections (in millions of dollars)
Identification code 12–1230–0–1–271

Balance, start of year:
Balance, start of year ....................................................
Receipts:
02.01 Rural electrification and telephone loans, negative
subsidies ...................................................................
01.99

04.00
07.99
6

Total: Balances and collections ....................................
Total balance, end of year ............................................

1996 actual

1997 est.

1998 est.

1 ................... ...................
40
40

40
40

Program and Financing (in millions of dollars)
Identification code 12–1230–0–1–271

387 ................... ...................
–387 ................... ...................

1996 actual

1997 est.

1998 est.

Outstanding, end of year ...................................... ................... ................... ...................

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from guaranteed loans committed
in 1992 and beyond. The amounts in this account are a means
of financing and are not included in the budget totals. Loans
made prior to 1992 are recorded in the Rural Development
Insurance Fund Liquidating Account.
This account finances loan guarantee commitments for
water systems, and waste disposal facilities in rural areas.
Balance Sheet (in millions of dollars)
Identification code 12–4218–0–3–452

1995 actual

1996 actual

1997 est.

Obligations by program activity:
Direct loan subsidy ........................................................
Reestimate of the direct loan subsidy ..........................
Interest on reestimates of direct loan subsidy .............
Administrative expenses subject to limitation ..............

10.00

Total obligations ........................................................

22.00
22.30

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Unobligated balance expiring ........................................

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

134
–134

66
–66

65
–65

125

70.00

2390

00.01
00.05
00.06
00.09

135

94
36
31
8 ................... ...................
2 ................... ...................
30
30
34
134

135
66
65
–1 ................... ...................

10 ................... ...................

1998 est.

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................

..................

1999

Total assets ........................................
LIABILITIES:
2204 Non-Federal liabilities: Liabilities for
loan guarantees ..................................

..................

2999

Total liabilities ....................................

..................

4999

Total liabilities and net position ............

..................

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

72.40

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

217
225
154
134
66
65
–119
–137
–108
–7 ................... ...................
225

154

111

40
79

35
102

38
70

RURAL UTILITIES SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
87.00

Total outlays (gross) .................................................

119

137

108

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

135
119

66
137

65
108

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 12–1230–0–1–271

Direct loan levels supportable by subsidy budget authority:
1150 Direct loans, electric ......................................................
1150 Direct loans, municipal rate electric .............................
1150 Direct loans, telecommunications .................................
1150 Direct loans, Treasury rate telecommunications ...........
1150 Direct loans, FFB electric ..............................................
1150 Direct loans, FFB telecommunications ..........................
1159

Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Direct loans, electric ......................................................
1320 Direct loans, municipal rate electric .............................
1320 Direct loans, telecommunications .................................
1320 Direct loans, Treasury rate telecommunicataions .........
1320 Direct loans, FFB electric ..............................................
1320 Direct loans, FFB telecommunications ..........................

1996 actual

1997 est.

1998 est.

91
545
71
217
187
78

69
456
75
300
300
120

125
400
40
300
300
120

1,189

1,320

197

RURAL ELECTRIFICATION AND TELECOMMUNICATIONS DIRECT LOAN
FINANCING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 12–4208–0–3–271

00.01
00.02
00.03
00.04
00.05
00.06
00.07
00.08
00.09
00.10

1,285

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Direct loans, electric ......................................................
272
69
75
Direct loans, Municipal rate electric .............................
319
456
400
Direct loans, telecommunications .................................
130
75
40
Direct loans, Treasury rate telecommunications ........... ...................
300
300
Direct loans, FFB electric ..............................................
112
300
300
Direct loans, FFB telecommunications ..........................
32
120
120
Interest on Treasury borrowing ......................................
148
311
414
Negative subsidy ............................................................
1 ................... ...................
Payment of Downward Reestimate ................................
45 ................... ...................
Payment of Interest to downward Reestimate ..............
10 ................... ...................

5.27
6.20
1.59
0.02
0.93
–0.07

7.46
4.22
3.92
0.02
0.92
–0.07

Weighted average subsidy rate .................................
7.87
2.72
2.18
Direct loan subsidy budget authority:
1330 Direct loans, electric ......................................................
21
4
9
1330 Direct loans, municipal rate electric .............................
57
28
17
1330 Direct loans, telecommunications .................................
14
1
2
1330 Treasury rate telecommunications subsidy budget authority ........................................................................ ................... ................... ...................
1330 Direct loans, FFB electric ..............................................
2
3
3

Total obligations ........................................................

1,069

1,631

1,649

22.00
23.95

Budgetary resources available for obligation:
New financing authority (gross) ....................................
New obligations .............................................................

1,069
–1,069

1,631
–1,631

1,649
–1,649

717

1,228

1,158

344
8

476
–73

538
–47

Spending authority from offsetting collections
(total) ................................................................

352

403

491

Total new financing authority (gross) ......................

1,069

1,631

1,649

Change in unpaid obligations:
Unpaid obligations, start of year:
72.90
Obligated balance: Unpaid obligations ....................
72.95
Receivables from program account ..........................

3,241
217

3,268
225

3,165
152

3,458
1,069
–1,034

3,493
1,631
–1,807

3,317
1,649
–1,795

74.90
74.95

Total unpaid obligations, start of year ................
New obligations .............................................................
Total financing disbursements (gross) .........................
Unpaid obligations, end of year:
Obligated balance: Unpaid obligations ....................
Receivables from program account ..........................

3,268
225

3,165
152

3,066
105

74.99
87.00

23.37
10.44
19.59
0.02
0.84
–0.05

10.00

Total unpaid obligations, end of year ..................
Total financing disbursements (gross) .........................

3,493
1,034

3,317
1,807

3,171
1,795

1329

1339

Total subsidy budget authority .................................
94
36
31
Direct loan subsidy outlays:
1340 Direct loans, electric ......................................................
41
29
12
1340 Direct loans, municipal rate electric .............................
32
43
43
1340 Direct loans, telecommunications .................................
10
32
16
1340 Treasury rate telecommunications subsidy outlays ...... ................... ................... ...................
1340 Direct loans, FFB electric ..............................................
6
3
2
1349

Total subsidy outlays ................................................

Administrative expense data:
3510 Budget authority ............................................................
3590 Outlays ...........................................................................

30
30

107

30
30

34
34

The Rural Utilities Service conducts the rural electrification
and the rural telecommunications loan programs. The rural
electrification loan program is financed through RUS direct
loans for the operation of generating plants, electric transmission, and distribution lines or systems. The rural telecommunications loan program is financed through RUS direct
loans for construction, expansion, and operation of telecommunications lines and facilities or systems.
As required by the Federal Credit Reform Act of 1990,
this account records, for rural electrification and telecommunications programs, the subsidy costs associated with the direct
loans obligated in 1992 and beyond (including modifications
of direct loans or loan guarantees that resulted from obligations or commitments in any year), as well as administrative
expenses of this program. The subsidy amounts are estimated
on a present value basis; the administrative expenses are
estimated on a cash basis.
Object Classification (in millions of dollars)
Identification code 12–1230–0–1–271

25.3
41.0
43.0

Purchases of goods and services from Government
accounts ....................................................................
Grants, subsidies, and contributions ............................
Interest and dividends ...................................................

99.9

Total obligations ........................................................

1996 actual

1997 est.

1998 est.

68.90
70.00

72.99
73.10
73.20

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Federal sources:
88.00
Payment from program account ......................
–2 ................... ...................
88.00
Federal sources ................................................ ...................
–107
–74
88.25
Interest on uninvested funds ...............................
–46 ................... ...................
Non-Federal sources:
88.40
Repayment of principal ....................................
–96
–62
–82
88.40
Interest received on loans ................................
–200
–307
–382
88.90
88.95

Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............

–344
–8

–476
73

–538
47

89.00
90.00

717
690

1,228
1,331

1,158
1,257

Status of Direct Loans (in millions of dollars)
Identification code 12–4208–0–3–271

1996 actual

1997 est.

1998 est.

1,189
1,319
1,235
–324 ................... ...................

1150
30
30
34
102
36
31
2 ................... ...................
134

Total direct loan obligations .....................................

865

1,319

1,235

1210
1231
1251

2,740
861
–95

3,506
1,479
–64

4,921
1,379
–82

198

RURAL UTILITIES SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

Credit accounts—Continued
RURAL ELECTRIFICATION AND TELECOMMUNICATIONS DIRECT LOAN
FINANCING ACCOUNT—Continued
Status of Direct Loans (in millions of dollars)—Continued
1996 actual

Identification code 12–4208–0–3–271

1290

Outstanding, end of year ..........................................

3,506

1997 est.

1998 est.

4,921

Balance Sheet (in millions of dollars)
1995 actual

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1405
Allowance for subsidy cost (–) ...........
1499

Net present value of assets related
to direct loans ...........................

1997 est.

1996 actual

1998 est.

163

–9

2,098

165

–179

..................

2,452
–270

3,068
–122

4,024
–117

..................
..................

2,946

3,907

..................

4,443

3,102

3,719

..................

2,097
2,367

2
2,945

–302
3,907

..................
..................

2999

Total liabilities ....................................

4,464

2,947

3,605

..................

4999

Total liabilities and net position ............

4,464

2,947

3,605

..................

1,074

..................

288
–28

438
–36

897
–85

..................
..................

260

402

812

..................

1499

23.90
23.95
24.47
24.90

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Authority to borrow ....................................................
Fund balance .............................................................

24.99

Total unobligated balance, end of year ....................

1,365

452

828

..................

1,067
298

41
403

7
813

..................
..................

2999

Total liabilities ....................................

1,365

444

820

..................

4999

Total liabilities and net position ............

1,365

444

820

3,914
–2,115

1,422
–1,422

70.00

1,799 ................... ...................

74.47
74.90
74.99

86.90
86.97
86.98

–6

2,658
–770

Spending authority from offsetting collections
(total) ...........................................................

3,521

2,057

1,888

Total new budget authority (gross) ..........................

3,521

2,057

1,882

1,367
–1,367

1,661 ................... ...................
138 ................... ...................

New budget authority (gross), detail:
Current:
41.00
Transferred to other accounts ................................... ................... ...................
Permanent:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) ................................
3,790
3,250
68.47
Portion applied to debt reduction ........................
–269
–1,193

87.00

Net present value of assets related
to direct loans ...........................

1999

Total unobligated balance, start of year ............. ...................
1,799 ...................
New budget authority (gross) ........................................
3,521
2,057
1,882
Capital transfer to general fund ...................................
600
–2,434
–515
Balance of authority to borrow withdrawn ....................
–207 ................... ...................

68.90

2,182

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1405
Allowance for subsidy cost (–) ...........

21.99
22.00
22.40
22.70

..................

1999

1,661 ...................
138 ...................

6,218

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from electric and telecommunication direct loans obligated in 1992 and beyond (including
modifications of direct loans that resulted from obligations
in any year). The amounts in this account are a means of
financing and are not included in the budget totals.

Identification code 12–4208–0–3–271

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.47
Authority to borrow .................................................... ...................
21.90
Fund balance ............................................................. ...................

1,286 ...................
1,136
1,565
2,077 ...................

Total unpaid obligations, start of year ................
2,851
2,077
1,136
New obligations .............................................................
2,115
1,422
1,367
Total outlays (gross) ......................................................
–2,289
–2,363
–1,958
Adjustments in expired accounts ..................................
–600 ................... ...................
Unpaid obligations, end of year:
Obligated balance:
Authority to borrow ............................................... ...................
1,136
545
Fund balance ........................................................
2,077 ................... ...................
Total unpaid obligations, end of year ..................

2,077

1,136

545

Outlays (gross), detail:
Outlays from new current authority .............................. ................... ...................
Outlays from new permanent authority .........................
3,521
2,057
Outlays from permanent balances ................................
–1,232
306

–6
1,888
76

Total outlays (gross) .................................................

2,289

2,363

1,958

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Non-Federal sources:
88.40
Loans repaid .....................................................
88.40
Interest from loans ...........................................

–1,886
–1,904

–1,582
–1,668

–1,111
–1,547

88.90

Total, offsetting collections (cash) ..................

–3,790

–3,250

–2,658

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

–269
–1,501

–1,193
–887

–776
–700

..................

Status of Direct Loans (in millions of dollars)
RURAL ELECTRIFICATION

AND

TELECOMMUNICATIONS LIQUIDATING

Identification code 12–4230–0–3–271

1996 actual

1997 est.

1998 est.

Program and Financing (in millions of dollars)
Identification code 12–4230–0–3–271

Obligations by program activity:
00.01 Interest expense on certificates of beneficial ownership ............................................................................
00.02 Interest expense, FFB direct ..........................................
00.03 Other interest expense ...................................................
10.00

Total obligations (object class 43.0) ........................

1996 actual

291
1,207
617
2,115

1997 est.

291
938
193
1,422

1998 est.

291
848
228
1,367

33,101
30,459
29,809
114
940
596
–1,886
–1,590
–1,119
–870 ................... ...................

1290

ACCOUNT

30,459

Outstanding, end of year ..........................................

29,809

29,286

Status of Guaranteed Loans (in millions of dollars)
Identification code 12–4230–0–3–271

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................

1996 actual

705

1997 est.

691

1998 est.

670

RURAL UTILITIES SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE

199

2251

Repayments and prepayments ......................................

–14

–21

–24

0122

Expense ....................................................

2290

Outstanding, end of year ..........................................

691

670

646

0129

Net income or loss (–) ............................

115

119

0191

Total revenues .........................................

1,955

1,962

1,713

1,590

0192

Total expenses .........................................

–2,878

–2,841

–1,431

–1,399

0199

Net income or loss ..................................

–923

–879

282

191

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

691

670

–96

–91

–66

–64

646

STATUS OF AGENCY DEBT
Balance Sheet (in millions of dollars)

[In millions of dollars]

Agency Debt Held by FFB:
Outstanding FFB Direct, start of year ......................
Outstanding CBO’s, start of year .............................
New agency borrowing, FFB Direct ...........................
New agency borrowing, CBO’s ..................................
Repayments and prepayments, FFB Direct ...............
Repayments and prepayments, CBO’s ......................

1996 actual

1997 est.

1998 est.

16,049
4,599
73
......................
¥673
......................

15,449
4,599
......................
......................
¥313
......................

15,136
4,599
......................
......................
¥336
......................

Outstanding FFB Direct, end of year ........................
Outstanding CBO’s, end of year ...............................

15,449
4,599

15,136
4,599

14,800
4,599

As required by the Federal Credit Reform Act of 1990,
this account records, for rural electrification and telecommunications programs, all cash flows to and from the Government
resulting from direct loans obligated and loan guarantees
committed prior to 1992. All new activity in RETRF in 1992
and beyond is recorded in corresponding program and financing accounts.
The Rural Utilities Service will continue to service all loans
in this account providing business management and technical
assistance to the borrowers on a regular basis over the life
of the loans.
Rural electric.—This program is financed through RUS direct loans for the construction and operation of generating
plants, electric transmission, and distribution lines or systems.

1699

1996 actual

1999

21,862
27,443
21,827
35
12,039
10,307
960
855

21,862
27,443
21,838
25
12,628
10,699
960
830

[dollars in millions]

1997 est.

6,074
616
5,801
273
2,710
2,291
3
897

6,074
616
5,906
168
2,854
2,426
3
900

1998 est.

6,074
616
6,000
74
3,000
2,560
3
905

lenders—privately financed direct loans, FFB.

Statement of Operations (in millions of dollars)

0119
0121

Net income or loss (–) ............................
TELEPHONE PROGRAM:
Revenue ...................................................

1,915

2,071

67
194

2
7

33,101

27,073

26,445

25,967

–4,724

–4,733

–4,766

28,377

22,349

21,712

21,201

24,525

23,636

23,281

304
28,863

304
24,948

..................
24,278

..................
23,627

33
2,863

..................
2,863

2999

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
3300 Cumulative results of operations ............

32,063

28,148

27,141

26,490

1,896
–3,923

1,896
–5,518

1,741
–5,245

1,741
–4,950

Total net position ................................

–2,027

–3,622

–3,504

–3,209

Total liabilities and net position ............

30,036

24,526

23,637

23,281

168

300

288

592
12

592
..................

3,386

3,364

3,319

–15

–14

3,371

3,349

3,305

4,143

4,275

4,241

4,185

3
2,428

..................
2,107

..................
1,807

2
22

..................
13

..................
..................

2999

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
3300 Cumulative results of operations ............

2,456

2,120

1,807

730
957

730
1,089

653
1,468

653
1,726

Total net position ................................

1,687

1,819

2,121

2,379

4999

Total liabilities and net position ............

4,142

4,274

4,241

4,185

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
Non-Federal assets:
1201
Investments in non-Federal securities,
net ..................................................
1206
Receivables, net ..................................
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1601
Direct loans, gross ..............................
1603
Allowance for estimated uncollectible
loans and interest (–) ....................
1101

Value of assets related to direct
loans ..........................................

1999
1996 actual

0111
0112

1,397

30,035

TELECOMMUNICATIONS PROGRAM STATISTICS

ELECTRIC PROGRAM:
Revenue ...................................................
Expense ....................................................

1998 est.

1699

Identification code 12–4230–0–3–271

1997 est.

1998 est.

Rural telecommunications.—This loan program is financed
through RUS direct loans for the construction, expansion, and
operation of telecommunications lines and facilities or systems.

1 Other

1996 actual

3999

1997 est.

21,862
27,443
21,814
49
11,360
9,888
960
887

loans financed by private lenders, including refinanced direct loans, FFB.

Cumulative RUS financed direct loans .......................................
Cumulative FFB financed direct loans .......................................
Cumulative RUS funds advanced ...............................................
Unadvanced RUS funds, end of period ......................................
Cumulative RUS principal repaid ...............................................
Cumulative RUS interest paid ....................................................
Cumulative loan guarantee commitments 1 ...............................
Number of borrowers ...................................................................

Value of assets related to direct
loans ..........................................

1995 actual

4999

[dollars in millions]

1 Represents

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
1206 Non-Federal assets: Receivables, net .....
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1601
Direct loans, gross ..............................
1603
Allowance for estimated uncollectible
loans and interest (–) ....................

3999

ELECTRIC PROGRAM STATISTICS

Cumulative RUS financed direct loans .......................................
Cumulative FFB financed direct loans .......................................
Cumulative RUS funds advanced ...............................................
Unadvanced RUS funds, end of year ..........................................
Cumulative RUS principal repaid ...............................................
Cumulative RUS interest paid ....................................................
Cumulative loan guarantee commitments1 ................................
Number of borrowers ...................................................................

Identification code 12–4230–0–3–271

1995 actual

1996 actual

1997 est.

1998 est.

1,782
–2,782

1,803
–2,750

1,532
–1,365

1,407
–1,335

–1,000

–947

167

173

159

181

183

RURAL TELEPHONE BANK PROGRAM ACCOUNT
The Rural Telephone Bank is hereby authorized to make such
expenditures, within the limits of funds available to such corporation

200

RURAL UTILITIES SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
1339

Total subsidy budget authority .................................
3
Direct loan subsidy outlays:
1340 Subsidy outlays .............................................................. ...................

Credit accounts—Continued
RURAL TELEPHONE BANK PROGRAM ACCOUNT—Continued
in accord with law, and to make such contracts and commitments
without regard to fiscal year limitations as provided by section 104
of the Government Corporation Control Act, as amended, as may
be necessary in carrying out its authorized programs for the current
fiscal year. During fiscal year ø1997¿ 1998 and within the resources
and authority available, gross obligations for the principal amount
of direct loans shall be $175,000,000.
For the cost, as defined in section 502 of the Congressional Budget
Act of 1974, including the cost of modifying loans, of direct loans
authorized by the Rural Electrification Act of 1936, as amended (7
U.S.C. 935), ø$2,328,000¿ $3,710,000.
In addition, for administrative expenses necessary to carry out
the loan programs, ø$3,500,000¿ $3,000,000. (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)

1349

4
4

3
3

3510
3590

Total subsidy outlays ................................................ ...................
Administrative expense data:
Budget authority ............................................................
Outlays ...........................................................................

As required by the Federal Credit Reform Act of 1990,
this account records, for the Rural Telephone Bank, the subsidy costs associated with the direct loans obligated in 1992
and beyond as well as administrative expenses for the program. The subsidy amounts are estimated on a present value
basis; administrative expenses are estimated on a cash basis.
Object Classification (in millions of dollars)
Identification code 12–1231–0–1–452

Program and Financing (in millions of dollars)

4
4

25.3

1996 actual

1997 est.

1998 est.

41.0

Identification code 12–1231–0–1–452

Obligations by program activity:
00.01 Direct loan subsidy ........................................................
00.09 Administrative expenses subject to limitation ..............
10.00

Total obligations ........................................................

Budgetary resources available for obligation:
21.90 Unobligated balance available, start of year: Fund
balance ......................................................................
22.00 New budget authority (gross) ........................................
22.30 Unobligated balance expiring ........................................
23.90
23.95
24.90

Total new budget authority (gross) ..........................

1996 actual

1997 est.

7
4

2
4

4
3

4
7

4
2

4
3

99.9

Total obligations ........................................................

RURAL TELEPHONE BANK DIRECT LOAN FINANCING ACCOUNT
Program and Financing (in millions of dollars)
2
2 ...................
12
6
7
–1 ................... ...................

Identification code 12–4210–0–3–452

1998 est.

Obligations by program activity:
Direct loans ....................................................................
Interest on Treasury borrowing ......................................

126
14

176
18

175
31

2 ................... ...................

10.00

Total obligations ........................................................

140

194

206

22.00
23.95

Budgetary resources available for obligation:
New financing authority (gross) ....................................
New obligations .............................................................

141
–140

194
–194

206
–206

207

161

148

3 ................... ...................
12

4
11
–4

11
6
–9

7
7
–6

68.90

70.00

4
3
2
3
3 ...................

–66

Total new financing authority (gross) ......................

141

194

206

Change in unpaid obligations:
Unpaid obligations, start of year:
72.90
Obligated balance: Obligated balance .....................
72.95
Receivables from program account ..........................

581
4

656
11

657
8

585
140
–58

667
194
–195

665
206
–269

656
11

657
8

593
9

667
58

665
195

602
269

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

72.99
73.10
73.20

12
4

6
9

7
6

74.90
74.95

Total unpaid obligations, start of year ................
New obligations .............................................................
Total financing disbursements (gross) .........................
Unpaid obligations, end of year:
Obligated balance: Obligated balance .....................
Receivables from program account ..........................

74.99
87.00

Total unpaid obligations, end of year ..................
Total financing disbursements (gross) .........................

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
1996 actual

Direct loan levels supportable by subsidy budget authority:
1150 Direct loan levels ...........................................................

126

1159

1997 est.

1998 est.

176

175

Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Subsidy rate ...................................................................

126

176

175

2.87

1.32

2.12

1329

2.87

1.32

2.12

22
36
57
7
–3
1
–95 ................... ...................

Spending authority from offsetting collections
(total) ................................................................

87.00

Weighted average subsidy rate .................................
Direct loan subsidy budget authority:
1330 Subsidy budget authority ...............................................

1997 est.

00.01
00.03

8
–6

Outlays (gross), detail:
Outlays from new current authority ..............................
4
Outlays from current balances ...................................... ...................
Outlays from permanent balances ................................ ...................

Identification code 12–1231–0–1–452

1996 actual

7
–7

13
–11

72.40

86.90
86.93
86.98

Purchases of goods and services from Government
accounts ....................................................................
Grants, subsidies, and contributions ............................

1998 est.

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal sources: Payment from Program Account ...................
–2
–3
88.25
Interest on uninvested funds ...............................
–6 ................... ...................
Non-Federal sources:
88.40
Principal received on loans ..............................
–5
–3
–8
88.40
Interest received on loans ................................
–9
–23
–35
88.40
Sale of RTB Stock ............................................
–2
–8
–11
88.90
88.95

Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............

–22
–7

–36
3

–57
–1

RURAL UTILITIES SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE

89.00
90.00

112
37

161
159

148
212

Status of Direct Loans (in millions of dollars)

218
–30
–77

621
–40
–60

228
–11
–60

Spending authority from offsetting collections
(total) ................................................................

111

521

157

Total new budget authority (gross) ..........................

111

521

157

238
58

233
15

162
25

68.90
1996 actual

Identification code 12–4210–0–3–452

1997 est.

1998 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans .............................................

126

176

175

1150

126

176

175

1210
1231
1251
1264
1290

Total direct loan obligations .....................................

70.00

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
151
191
361
Disbursements: Direct loan disbursements ...................
45
173
238
Repayments: Repayments and prepayments .................
–5
–3
–7
Write-offs for default: Other adjustments, net ............. ................... ................... ...................
Outstanding, end of year ..........................................

191

592

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond (including modifications of direct loans that resulted from obligations in any year). The amounts in this
account are a means of financing and are not included in
the budget totals.
Balance Sheet (in millions of dollars)
Identification code 12–4210–0–3–452

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Program Account ............................
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1402
Interest receivable ..............................
1405
Allowance for subsidy cost (–) ...........
1499

Net present value of assets related
to direct loans ...........................

1999

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Debt ...........................
2201 Non-Federal liabilities: Accounts payable

1995 actual

1996 actual

1997 est.

1998 est.

..................

118
..................
–4

158
..................
–8

328
23
–54

558
35
–84

114

150

297

509

208

160

375

152
8

367
8

567
9

72.99
73.10
73.20
73.45

74.99

Total unpaid obligations, end of year ..................

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................
Total outlays (gross) .................................................

2999

Total liabilities ....................................

208

160

375

576

4999

Total liabilities and net position ............

208

160

375

576

296
248
187
125
38
18
–154
–99
–66
–18 ................... ...................

233
15

162
25

138
1

248

187

139

111
99
66
43 ................... ...................
154

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources ..................................................... ...................
Non-Federal sources:
88.40
Loans repaid .....................................................
–117
88.40
Interest from loans ...........................................
–100
88.40
Sales of stock ...................................................
–1

–105
–101
–3

–125
–102
–1

88.90

Total, offsetting collections (cash) ..................

–218

–621

–228

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

–107
–63

–100
–522

–71
–162

576

203
5

74.47
74.90

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Adjustments in unexpired accounts ..............................
Unpaid obligations, end of year:
Obligated balance:
Authority to borrow ...............................................
Fund balance ........................................................

87.00

361

201

–412 ...................

Status of Direct Loans (in millions of dollars)
Identification code 12–4231–0–3–452

1996 actual

1997 est.

1998 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1,414
1,328
1,283
1231 Disbursements: Direct loan disbursements ...................
31
60
30
1251 Repayments: Repayments and prepayments .................
–117
–105
–125
1264 Write-offs for default: Other adjustments, net ............. ................... ................... ...................
1290

Outstanding, end of year ..........................................

1,328

1,283

1,188

RURAL TELEPHONE BANK LIQUIDATING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 12–4231–0–3–452

00.01
00.02
00.03

Obligations by program activity:
Interest expense .............................................................
Dividends .......................................................................
RTB Equity fund .............................................................

10.00

Total obligations ........................................................

1996 actual

1997 est.

1998 est.

32
28
7
10
10
11
83 ................... ...................
125

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ................................................... ................... ...................
412
22.00 New budget authority (gross) ........................................
111
521
157
22.10 Resources available from recoveries of prior year obligations .......................................................................
18 ................... ...................
22.40 Capital transfer to general fund ................................... ................... ...................
–545
22.70 Balance of authority to borrow withdrawn ....................
–4
–71
–7
21.40

23.90
23.95
24.40

Total budgetary resources available for obligation
125
New obligations .............................................................
–125
Unobligated balance available, end of year:
Uninvested balance ................................................... ...................

450
–38

17
–18

412 ...................

As required by the Federal Credit Reform Act of 1990,
this account records, for the Rural Telephone Bank, all cash
flows to and from the Government resulting from direct loans
obligated prior to 1992. This account is shown on a cash
basis. All new activity in this program in 1992 and beyond
(including modifications of direct loans or loan guarantees
that resulted from obligations or commitments in any year)
is recorded in corresponding program and financing accounts.
The Rural Telephone Bank (RTB) provides a supplemental
source of financing for rural telecommunications borrowers.
The Bank charges an interest rate based on the cost of money
to the Bank, as prescribed by law, but not less than 5 percent
per annum. The composite interest rate on cumulative loans
through September 30, 1996, was 7.08 percent. The longterm interest rate on advances made during 1996 for loans
approved after October 1, 1987, was 6.05 percent.
Equity capital of the Bank consists of class A stock purchased by the United States of $574 million with a 2 percent
dividend and classes B and C stock purchased by bank borrowers, organizations eligible to become borrowers and organi-

202

RURAL UTILITIES SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

Credit accounts—Continued

Object Classification (in millions of dollars)

RURAL TELEPHONE BANK LIQUIDATING ACCOUNT—Continued

Investments and loans ..................................................
Interest and dividends ...................................................

99.9

Total obligations ........................................................

DISTANCE LEARNING

1996 actual

1997 est.

3,425
2,545
880
1,060
1,923
564

3,621
2,778
842
1,167
2,046
564

1998 est.

3,796
3,046
749
1,300
2,104
564

Statement of Operations (in millions of dollars)
1995 actual

1996 actual

1997 est.

1998 est.

104
–37

100
–31

101
–28

101
–6

0109

Net income or loss (–) ............................

Balance Sheet (in millions of dollars)
1996 actual

58
5

15
4

1997 est.

1998 est.

1101

1699

Value of assets related to direct
loans ..........................................

1999

Total assets ........................................
LIABILITIES:
Federal liabilities:
2102
Interest payable ..................................
2103
Debt .....................................................
2105
Other ...................................................
Non-Federal liabilities:
2201
Accounts payable ................................
2207
Other ...................................................
2999

437
6

Program and Financing (in millions of dollars)
Identification code 12–4146–0–3–452

1996 actual

1997 est.

1998 est.

00.01
00.02

Obligations by program activity:
Direct Loans ................................................................... ...................
Interest on Treasury Borrowing ...................................... ...................

150
1

150
6

10.00

Total obligations ........................................................ ...................

151

156

22.00
23.95

Budgetary resources available for obligation:
New financing authority (gross) .................................... ...................
New obligations ............................................................. ...................

151
–151

156
–156

143

134

7
1

23
–1

Spending authority from offsetting collections
(total) ................................................................ ...................

Total new financing authority (gross) ...................... ...................

151

156

105
1

New financing authority (gross), detail:
Authority to borrow (indefinite) ..................................... ...................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) ..................................... ...................
68.10
Receivables from program account .......................... ...................
68.90
70.00

72.99
73.10
73.20

Total unpaid obligations, start of year ................
New obligations .............................................................
Total financing disbursements (gross) .........................
Unpaid obligations, end of year:
Obligated balance: Authority to borrow ....................
Receivables from program account ..........................

Total unpaid obligations, end of year .................. ...................
Total financing disbursements (gross) ......................... ...................

1995 actual

1998 est.

MEDICAL LINK DIRECT LOAN FINANCING
ACCOUNT

74.99
87.00

Revenue ...................................................
Expense ....................................................

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1601
Direct loans, gross ..............................
1603
Allowance for estimated uncollectible
loans and interest (–) ....................
1604
Direct loans and interest receivable,
net ..................................................

125

74.47
74.95

0101
0102

Identification code 12–4231–0–3–452

AND

1997 est.

83 ................... ...................
42
38
18

67.15

[Dollars in millions]

Identification code 12–4231–0–3–452

33.0
43.0

Change in unpaid obligations:
Unpaid obligations, start of year:
72.47
Obligated balance: Authority to borrow .................... ................... ...................
72.95
Receivables from program account .......................... ................... ...................

PROGRAM STATISTICS

Cumulative net loans ..................................................................
Cumulative loan funds, advanced ..............................................
Unadvanced loan funds, end of year .........................................
Cumulative principal repaid .......................................................
Cumulative interest paid ............................................................
Number of borrowers ...................................................................

1996 actual

Identification code 12–4231–0–3–452

zations controlled by borrowers. The Bank has borrowed $759
million from the Treasury. A total of $76,663,381, at interest
rates ranging from 9.125 percent to 10.625 percent was repaid
during the fiscal year. The outstanding balance of
$388,274,125, is at interest rates of 7.25 percent to 9.125
percent. The $574 million purchase of capital stock has been
financed through appropriations.
In accordance with section 406(c) of the Rural Electrification Act of 1936, as amended, the first redemption of class
A stock occurred on September 30, 1996. In accordance with
resolution 96–3, $18,000,000 of class A stock was redeemed.
Redemption of class A stock will occur in 1997 as allowed
by law, toward the full privatization of the Rural Telephone
Bank required by law.
Administrative support is provided for the general operations of the Bank by RUS employees and the Office of the
General Counsel.
Bank loans totaled $126 million in 1996. After almost 24
years in operation, loans to 650 borrowers have been approved, totaling over $3.4 billion.

1
6

1,414

1,328

1,283

1,188

–9

–8

–7

1,405

1,320

1,275

1,320

1,275

1,181

1,468

1,339

1,718

16
388
..................

16
328
413

16
268
412

2
394

2
359

2
414

2
490

105
142
1 ...................
106
45

142
120

–13
–9

88.90
88.95

Total, offsetting collections (cash) .................. ...................
Change in receivables from program accounts ............ ...................

–7
–1

–23
1

89.00
90.00

Net financing authority and financing disbursements:
Financing authority ........................................................ ...................
Financing disbursements ............................................... ...................

143
38

134
97

1,188

15
465
..................

...................
...................

106
156
–120

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal sources ..................................................... ................... ...................
Non-Federal sources:
88.40
Repayment of principal .................................... ...................
–3
88.40
Interest received on loans ................................ ...................
–4

1,181

1,405

................... ...................
...................
151
...................
–45

–1

Status of Direct Loans (in millions of dollars)
Identification code 12–4146–0–3–452

1996 actual

1997 est.

1998 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ...................

150

1150

150

Cumulative balance of direct loans outstanding:
Outstanding, start of year ............................................. ................... ...................
Disbursements: Direct loan disbursements ................... ...................
45
Repayments: Repayments and prepayments ................. ...................
–3

42
120
–13

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

876

765

1,173

1,188

592

574

545

..................

3999

Total net position ................................

592

574

545

..................

1210
1231
1251

4999

Total liabilities and net position ............

1,468

1,339

1,718

1,188

1290

Total direct loan obligations ..................................... ...................

Outstanding, end of year .......................................... ...................

149

RURAL UTILITIES SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond. The amounts in this account are a means of
financing and are not included in the budget totals.
Balance Sheet (in millions of dollars)
Identification code 12–4146–0–3–452

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1402
Interest receivable ..............................
1405
Allowance for subsidy cost (–) ...........
1499

Net present value of assets related
to direct loans ...........................

1999

Total assets ........................................
LIABILITIES:
2101 Federal liabilities: Accounts payable ......
2203 Non-Federal liabilities: Liability for deposit funds ..........................................
2999

1995 actual

1996 actual

1997 est.

1998 est.

..................

..................
..................
..................

42
4
–3

149
9
–9

..................

149

..................

149

..................

149

..................

Rural Utilities Service’s Rural Water and Waste Disposal
Loans Program Account; the community facility direct and
guaranteed loan programs are administered through the
Rural Housing Service’s Rural Community Facility Loans Program Account; and the business and industry direct and guaranteed loan programs are administered through the Rural
Business-Cooperative Service’s Rural Business and Industry
Loans Program Account.
On October 1, 1995, all balances in this account were transferred to the appropriate above-cited accounts.

..................

203

..................

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

..................

149

..................

Total net position ................................

..................

Total liabilities and net position ............

..................

149

1996 actual

Identification code 12–4217–0–3–452

1997 est.

1998 est.

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Obligated balance .....................................................
1,704 ................... ...................
73.20 Total financing disbursements (gross) ......................... ................... ................... ...................
73.31 Obligated balance transferred to other accounts .........
–1,704 ................... ...................
72.90

89.00
90.00

..................

4999

Program and Financing (in millions of dollars)

..................

3999

RURAL DEVELOPMENT INSURANCE FUND DIRECT LOAN FINANCING
ACCOUNT

Status of Direct Loans (in millions of dollars)
1996 actual

Identification code 12–4217–0–3–452

1997 est.

1998 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................

RURAL DEVELOPMENT INSURANCE FUND PROGRAM ACCOUNT

1150

Total direct loan obligations ..................................... ................... ................... ...................

Unavailable Collections (in millions of dollars)
Identification code 12–2082–0–1–452

Balance, start of year:
01.99 Balance, start of year ....................................................
07.99 Total balance, end of year ............................................

1996 actual

1997 est.

8
8

1210
1264

1998 est.

8
8

Program and Financing (in millions of dollars)
Identification code 12–2082–0–1–452

1996 actual

1997 est.

1998 est.

21.40

23.90
23.95

7 ................... ...................
–7 ................... ...................

Total budgetary resources available for obligation ................... ................... ...................
New obligations ............................................................. ................... ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
295 ................... ...................
73.20 Total outlays (gross) ...................................................... ................... ................... ...................
73.31 Obligated balance transferred to other accounts .........
–295 ................... ...................
72.40

1290

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Write-offs for default: Other adjustments, net .............

1,218 ................... ...................
–1,218 ................... ...................

Outstanding, end of year .......................................... ................... ................... ...................

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond. The amounts in this account are a means of
financing and are not included in the budget totals.
This account finances direct loans for water systems, waste
disposal facilities, community facilities, and businesses and
industries in rural areas. Communities unable to afford low
interest loans for water and waste disposal facilities are also
able to obtain RUS grants.
In 1996, these loans were transferred to the Rural Water
and Waste Disposal Loans Direct Financing Account in the
Rural Utilities Service and the Rural Community Facility
Loans Direct Financing Account in the Rural Housing Service.
Balance Sheet (in millions of dollars)

89.00
90.00

As required by the Federal Credit Reform Act of 1990,
this account records, for this program, the subsidy costs associated with the direct loans obligated and loan guarantees
committed in 1992 and beyond, as well as administrative
expenses of this program. The subsidy amounts are estimated
on a present value basis; the administrative expenses are
estimated on a cash basis.
In 1994, this program account was administered by the
Rural Development Administration. Under reorganization of
the Department of Agriculture, the water and waste direct
and guaranteed loan programs are administered through the

Identification code 12–4217–0–3–452

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
1206 Non-Federal assets: Receivables, net .....
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1402
Interest receivable ..............................
1405
Allowance for subsidy cost (–) ...........

1995 actual

1996 actual

1997 est.

1998 est.

1,998

..................

295
16

..................
..................

1,218
36
–167

..................
..................
..................

1499

Net present value of assets related
to direct loans ...........................

1,087

..................

1999

Total assets ........................................

3,396

..................

204

RURAL UTILITIES SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

697
–19

669
32

682
–18

87.00

Total outlays (gross) .................................................

678

701

664

–204

–196

–188

Credit accounts—Continued
RURAL DEVELOPMENT INSURANCE FUND DIRECT LOAN FINANCING
ACCOUNT—Continued
Balance Sheet (in millions of dollars)—Continued

3999

Total net position ................................

295

..................

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Non-Federal sources:
88.40
Repayments on loans held by fund .................
88.40
Repayments of guaranteed loans purchased
from investors ..............................................
88.40
Interest revenue ................................................
88.40
Loan repayments on behalf of investors .........
88.40
Interest income on investment ........................
88.40
Guaranteed loss recoveries ..............................
88.40
Other revenue ...................................................

4999

Total liabilities and net position ............

3,396

..................

88.90

Total, offsetting collections (cash) ..................

–472

–449

–432

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

225
206

220
252

250
232

1995 actual

1996 actual

1997 est.

1998 est.

LIABILITIES:
Federal liabilities:
2101
Accounts payable ................................
2103
Debt .....................................................

1,998
1,103

..................
..................

2999

3,101

..................

295

..................

Identification code 12–4217–0–3–452

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

RURAL DEVELOPMENT INSURANCE FUND LIQUIDATING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 12–4155–0–3–452

Obligations by program activity:
Operating expenses:
00.02
Purchase of loans from investors .............................
00.03
Redemption of public CBO debt ...............................
00.04
Purchase of guaranteed loans from investors .........
00.05
Interest on guaranteed loans purchased from investors ...................................................................
00.91
01.01
01.02
01.03
01.05
01.06
01.09

1996 actual

Status of Direct Loans (in millions of dollars)
1997 est.

1998 est.

Identification code 12–4155–0–3–452

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Disbursements:
1231
Direct loan disbursements ........................................
1232
Purchase of loans assets from the public ...............
1251 Repayments: Repayments and prepayments .................
1261 Adjustments: Capitalized interest .................................
Write-offs for default:
1263
Direct loans ...............................................................
1264
Other adjustments, net .............................................
1210

1 ...................
3
3 ................... ...................
1
1
1
–1

Total operating expenses ......................................
4
2
5
Capital investment:
Interest on FFB borrowings .......................................
515
515
515
Interest on certificates of beneficial ownership ....... ...................
1
1
Premium interest for investors .................................
1 ................... ...................
Interest on Treasury borrowings ................................
121
138
134
Loss settlement expense on guaranteed loans ........
5
9
7
Undistributed charges ...............................................
2 ................... ...................

1290

Outstanding, end of year ..........................................

Total capital investment .......................................

644

663

657

10.00

Total obligations ........................................................

648

665

662

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ...................................................................... ...................
23 ...................
22.00 New budget authority (gross) ........................................
697
669
682
22.10 Resources available from recoveries of prior year obligations .......................................................................
5 ................... ...................
22.60 Redemption of debt .......................................................
–3
–1
–1
22.70 Balance of authority to borrow withdrawn ....................
–27
–26
–19
21.90

60.05
60.47

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................
New budget authority (gross), detail:
Appropriation (indefinite) ...............................................
Portion applied to debt reduction .................................

672
–648

665
–665

662
–662

23 ................... ...................

550
–325

250
–30

300
–50

63.00
68.00

Appropriation (total) ..................................................
Spending authority from offsetting collections: Offsetting collections (cash) ..............................................

225

220

250

472

449

432

70.00

Total new budget authority (gross) ..........................

697

669

682

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Adjustments in unexpired accounts ..............................
Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................

31 ................... ...................
297
293
258
328
293
258
648
665
662
–678
–701
–664
–5 ................... ...................
293

258

257

1996 actual

1997 est.

4,471

4,348

1998 est.

4,183

11
35 ...................
1 ...................
3
–204
–196
–188
1 ................... ...................
–5
–4
–4
73 ................... ...................
4,348

4,183

3,994

Status of Guaranteed Loans (in millions of dollars)
Identification code 12–4155–0–3–452

01.91

23.90
23.95
24.90

–6
–6
–6
–249
–242
–233
–1 ................... ...................
–9
–5
–5
–1 ................... ...................
–2 ................... ...................

1996 actual

1997 est.

1998 est.

602
1
–84

499
425
18 ...................
–70
–62

–20

–22

–19

2290

Outstanding, end of year ..........................................

499

425

344

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

407

347

282

The Rural Development Insurance Fund (RDIF) was established on October 1, 1972, pursuant to section 116 of the
Rural Development Act of 1972 (Public Law 92–419).
The fund is used to insure or guarantee loans for water
systems and waste disposal facilities, community facilities,
and industrial development in rural areas. Communities unable to afford low interest loans for water and waste disposal
facilities are also able to obtain water and waste disposal
grants.
As required by the Federal Credit Reform Act of 1990,
this account records, for this program, all cash flows to and
from the Government resulting from direct loans obligated
and loan guarantees committed prior to 1992. All new activity
in this program is recorded in corresponding program accounts and financing accounts.
In 1994, these loan programs were administered by the
Rural Development Administration. Under reorganization of
the Department of Agriculture, the water and waste direct
and guaranteed loan programs are administered by the Rural
Utilities Service, the community facility direct and guaranteed
loan programs are adminsitered by the Rural Housing Service, and the business and industry direct and guaranteed

RURAL UTILITIES SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE

loan programs are administered by the Rural Business-Cooperative Service.

23.95
24.40

New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

205

–3

Statement of Operations (in millions of dollars)
Identification code 12–4155–0–3–452

1995 actual

1996 actual

1997 est.

60.05
68.00

1998 est.

0101
0102

Revenue ...................................................
Expense ....................................................

253
–675

264
–642

248
–618

238
–585

0109

Net income or loss (–) ............................

–422

–378

–370

–347

1997 est.

1995 actual

1996 actual

1998 est.

297

316

284

301

34
65

34
63

34
174

34
168

1101

72.99
73.10
73.20
74.90

4,349

4,183

3,994

–1,694

–1,666

–1,602

–1,514

2,777

2,683

2,581

2,480

2,777
171

2,683
155

2,581
140

Total assets ........................................
LIABILITIES:
Federal liabilities:
2102
Interest payable ..................................
2103
Debt .....................................................
2104
Resources payable to Treasury ...........
2105
Other ...................................................
Non-Federal liabilities:
2201
Public ..................................................
2202
Interest payable ..................................
2203
Debt .....................................................

3,344

3,251

3,213

3,110

–1
5,156
66
24

–1
4,831
60
23

–1
4,801
50
18

..................
4,751
41
18

132
146
7

137
121
3

125
138
3

120
134
2

2999

1901
1999

1
3
–3

2
3
–3

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

2
1

87.00

Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

–2

–1

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

1
1

2
2

2,480
127

Value of assets related to direct
loans ..........................................
Other Federal assets: Other assets ........

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................

–1 ................... ...................
2
1
2

86.97
86.98
4,471

1699

Total new budget authority (gross) ..........................

Balance Sheet (in millions of dollars)
Identification code 12–4155–0–3–452

70.00

New budget authority (gross), detail:
Appropriation (indefinite) ...............................................
Spending authority from offsetting collections: Offsetting collections (cash) ..............................................

Total liabilities ....................................
NET POSITION:
3300 Cumulative results of operations ............

5,530

5,174

5,134

–1,924

–1,923

Total net position ................................

–2,186

–1,924

–1,923

–1,956

4999

Total liabilities and net position ............

3,344

3,250

3,211

1996 actual

Identification code 12–4142–0–3–452

1210
1251

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Repayments: Repayments and prepayments .................

1290

Outstanding, end of year ..........................................

–1,956

3999

Status of Direct Loans (in millions of dollars)

3,110

1997 est.

1998 est.

10
9
–1 ...................
9

9
–1

5,066

–2,186

89.00
90.00

Status of Guaranteed Loans (in millions of dollars)
1996 actual

Identification code 12–4142–0–3–452

2210
2251

1997 est.

1998 est.

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
5
5
Repayments and prepayments ...................................... ................... ...................

5
–1

Object Classification (in millions of dollars)
2290
Identification code 12–4155–0–3–452

25.2
33.0
43.0
92.0

99.9

Total obligations ........................................................

1996 actual

1997 est.

5
9
7
2
1
4
639
655
651
2 ................... ...................
648

Outstanding, end of year ..........................................

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

1998 est.

665

662

The Rural Communication Development Fund was established pursuant to the Secretary’s Memorandum No. 1988,
approved May 22, 1979. No loans have been made through
this account since before 1992.

RURAL COMMUNICATION DEVELOPMENT FUND LIQUIDATING ACCOUNT
Statement of Operations (in millions of dollars)

Program and Financing (in millions of dollars)

Identification code 12–4142–0–3–452
Identification code 12–4142–0–3–452

1996 actual

1997 est.

1995 actual

1996 actual

1997 est.

1998 est.

0101
0102

Obligations by program activity:
00.01 Interest expense .............................................................

10.00

Revenue ...................................................
Expense ....................................................

1
–3

0109

Net income or loss (–) ............................

–2

Total obligations (object class 43.0) ........................

Balance Sheet (in millions of dollars)
Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................

1
3

23.90

21.40

Total budgetary resources available for obligation

Identification code 12–4142–0–3–452

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................

1995 actual

1996 actual

1997 est.

1998 est.

206

RURAL UTILITIES SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
90.00

Credit accounts—Continued
RURAL COMMUNICATION DEVELOPMENT FUND LIQUIDATING
ACCOUNT—Continued
Balance Sheet (in millions of dollars)—Continued

1601
1603
1604
1699

Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
Direct loans, gross ..............................
Allowance for estimated uncollectible
loans and interest (–) ....................
Direct loans and interest receivable,
net ..................................................
Value of assets related to direct
loans ..........................................

1999

1998 est.

413 ...................

The Rural Telephone Bank Equity Fund was established
in 1993. Class B Stock equity funds transferred to this account include: (1) five percent of each loan repayment received
in the financing account and (2) current class B Stock purchases in the liquidating account.
This account will be abolished in 1997 pursuant to section
718 of Public Law 104–180, Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act, 1997. The balances in this account will be
transferred to the Rural Telephone Bank Liquidating account.

1995 actual

Identification code 12–4142–0–3–452

1997 est.

Outlays ........................................................................... ...................

1996 actual

–3

RURAL HOUSING SERVICE

Federal Funds

1
25

General and special funds:

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
3300 Cumulative results of operations ............

9
–27

11
–29

13
–32

14
–33

3999

Total net position ................................

–18

–19

4999

Total liabilities and net position ............

2999

SALARIES

AND

EXPENSES

For necessary expenses of the Rural Housing Service, including
administering the programs authorized by the Consolidated Farm
and Rural Development Act, as amended, title V of the Housing
Act of 1949, as amended, and cooperative agreements, ø$60,743,000¿
$58,804,000: Provided, That this appropriation shall be available for
employment pursuant to the second sentence of 706(a) of the Organic
Act of 1944, and not to exceed $520,000 may be used for employment
under 5 U.S.C. 3109. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 12–1952–0–1–452

Trust Funds
RURAL TELEPHONE BANK EQUITY FUND

Balance, start of year:
Balance, start of year ....................................................
Receipts:
02.01 Rural Telephone Bank Trust Fund .................................
02.02 Interest on investments .................................................
01.99

02.99

Total receipts .............................................................

1996 actual

301

1997 est.

1998 est.

413 ...................

83 ................... ...................
29 ................... ...................
112 ................... ...................

Total: Balances and collections ....................................
413
413 ...................
Appropriation:
05.01 Rural Telephone Bank Equity Fund ............................... ...................
–413 ...................
07.99 Total balance, end of year ............................................
413 ................... ...................

Program and Financing (in millions of dollars)
1996 actual

1997 est.

1998 est.

Obligations by program activity:
Direct program ...............................................................
Reimbursable program ..................................................

42
436

61
422

59
411

10.00

Total obligations ........................................................

478

483

470

22.00
22.30

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Unobligated balance expiring ........................................

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

483
483
470
–5 ................... ...................
478
–478

483
–483

470
–470

436

422

411

483

470

64
483
–436

111
470
–462

111

119

50
4
346
36

48
9
337
68

436

462

Total new budget authority (gross) ..........................

72.40

Obligations by program activity:
00.01 Program Activity ............................................................. ...................

413 ...................

10.00

Total obligations (object class 25.2) ........................ ...................

413 ...................

22.00
23.95

413 ...................
–413 ...................

New budget authority (gross), detail:
60.27 Appropriation (trust fund, indefinite) ............................ ...................
...................

1998 est.

70.00

04.00

Identification code 12–8139–0–7–452

1997 est.

00.01
01.01

Unavailable Collections (in millions of dollars)
Identification code 12–8139–0–7–452

1996 actual

413 ...................
413 ...................

86.90
86.93
86.97
86.98
87.00

Change in unpaid obligations:
73.10 New obligations ............................................................. ...................
73.20 Total outlays (gross) ...................................................... ...................

413 ...................
–413 ...................

86.97

Outlays (gross), detail:
Outlays from new permanent authority ......................... ...................

413 ...................

89.00

Net budget authority and outlays:
Budget authority ............................................................ ...................

413 ...................

Outlays (gross), detail:
Outlays from new current authority ..............................
36
Outlays from current balances ...................................... ...................
Outlays from new permanent authority .........................
378
Outlays from permanent balances ................................ ...................
Total outlays (gross) .................................................

414

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources ..................................................... ...................
–422
–411
88.45
Offsetting governmental collections .....................
–436 ................... ...................
88.90

Total, offsetting collections (cash) ..................

–436

–422

–411

RURAL HOUSING SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

47
–22

61
14

59
51

The Secretary’s reorganization plan established the Rural
Housing Service (RHS). This agency was formed from the
Rural Housing section of Farmers Home Administration and
the Community Facilities Division of the Rural Development
Administration. RHS delivers rural housing and community
facility programs through a system of State, area, and local
offices. In 1997, a new Dedicated Loan Origination and Servicing System (DLOS) will be implemented to centralize and
streamline the servicing activities of the agency. This innovation will significantly reduce the cost of operating the individual housing loan programs.
Object Classification (in millions of dollars)
1996 actual

Identification code 12–1952–0–1–452

11.1
11.3
11.5
11.9
12.1
21.0
22.0
23.2
23.3
25.2
25.3
25.7
26.0
31.0
99.0
99.0
99.5
99.9

24
2
1

1997 est.

33
2
1

1998 est.

32
2
1

Total personnel compensation .........................
27
36
35
Civilian personnel benefits .......................................
6
11
10
Travel and transportation of persons .......................
2
2
2
Transportation of things ........................................... ................... ...................
1
Rental payments to others ........................................
1
3
3
Communications, utilities, and miscellaneous
charges .................................................................
1
3
3
Other services ............................................................
1
3
2
Purchases of goods and services from Government
accounts ................................................................
1
2
2
Operation and maintenance of equipment ...............
1
2
2
Supplies and materials .............................................
1
1
1
Equipment .................................................................
1 ................... ...................
Subtotal, direct obligations ..................................
42
63
Reimbursable obligations ..............................................
436
420
Below reporting threshold .............................................. ................... ...................
Total obligations ........................................................

478

483

61
408
1
470

Personnel Summary
1996 actual

Identification code 12–1952–0–1–452

1997 est.

1998 est.

..............................
and holiday hours

611
2

832
3

778
3

..............................
and holiday hours

6,299
20

5,756
19

5,454
19

SALARIES

AND

EXPENSES

Program and Financing (in millions of dollars)
Identification code 12–2001–0–1–452

1996 actual

1997 est.

1998 est.

01.01

Obligations by program activity:
Reimbursable Program ..................................................

2 ................... ...................

10.00

Total obligations (object class 21.0) ........................

2 ................... ...................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

2 ................... ...................
–2 ................... ...................

New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

2 ................... ...................

68.00

72.90

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................

113

36 ...................

73.10
73.20
73.40
74.90

86.93

New obligations .............................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts ..................................
Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................
Outlays (gross), detail:
Outlays from current balances ......................................

Offsets:
Against gross budget authority and outlays:
88.45
Offsetting collections (cash) from: Offsetting governmental collections ............................................

89.00
90.00

207

2 ................... ...................
–74
–36 ...................
–3 ................... ...................
36 ................... ...................

36 ...................

–2 ................... ...................

These funds were used to administer the direct loan, loan
guarantee, and grant programs of the Farmers Home Administration and the Rural Development Administration.
In 1995, under the reorganization by the Secretary of Agriculture the Agency has been eliminated and activities previously administered through this account transferred to other
Department accounts.
RURAL HOUSING ASSISTANCE øPROGRAM¿ GRANTS
(INCLUDING TRANSFERS OF FUNDS)

øFor the cost of direct loans, loan guarantees, agreements, and
grants, as authorized by 7 U.S.C. 1926, 42 U.S.C. 1472, 1474, 1479,
1486, and 1490(a), except for sections 381E, 381H, 381N of the Consolidated Farm and Rural Development Act, $130,433,000, to remain
available until expended, for direct loans and loan guarantees for
community facilities, community facilities grant program, rental assistance associated with and direct loans for new construction of
section 515 rental housing, rural housing for domestic farm labor
grants, supervisory and technical assistance grants, very low-income
housing repair grants, rural community fire protection grants, rural
housing preservation grants, and compensation for construction defects of the Rural Housing Service: Provided, That the cost of direct
loans and loan guarantees shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended: Provided further,
That the amounts appropriated shall be transferred to loan program
and grant accounts as determined by the Secretary: Provided further,
That of the funds made available in this paragraph not more than
$1,200,000 shall be available for the multi-family rural housing loan
guarantee program as authorized by section 5 of Public Law 104–
120: Provided further, That if such funds are not obligated for multifamily rural housing loan guarantees by June 30, 1997, they remain
available for other authorized purposes under this head: Provided
further, That of the total amount appropriated, not to exceed
$1,200,000 shall be available for the cost of direct loans, loan guarantees, and grants to be made available for empowerment zones and
enterprise communities as authorized by Public Law 103–66: Provided further, That if such funds are not obligated for empowerment
zones and enterprise communities by June 30, 1997, they remain
available for other authorized purposes under this head.¿
For grants and contracts for housing for domestic farm labor, very
low-income housing repair, mutual and self-help housing, supervisory
and technical assistance, compensation for construction defects, and
rural housing preservation made by the Rural Housing Service as
authorized by 42 U.S.C. 1474, 1479(c), 1486, 1490c, 1490e, and
1490m, $70,900,000, to remain available until expended: Provided,
That any obligated and unobligated balances available from prior
years in ‘‘Rural Housing for Domestic Farm Labor,’’ ‘‘Mutual and
Self-Help Housing Grants,’’ ‘‘Supervisory and Technical Assistance
Grants,’’ ‘‘Very Low-Income Housing Repair Grants,’’ ‘‘Compensation
for Construction Defects’’ and ‘‘Rural Housing Preservation Grants’’
shall be transferred to and merged with this account: Provided further, That of the total amount appropriated, $3,000,000 shall be for
empowerment zones and enterprise communities, as authorized by
Public Law 103–66: Provided further, That if such funds are not
obligated for empowerment zones and enterprise communities by June
30, 1998, they shall remain available for other authorized purposes
under this head. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 1997.)

208

RURAL HOUSING SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
RURAL HOUSING ASSISTANCE øPROGRAM¿ GRANTS—Continued
(INCLUDING TRANSFERS OF FUNDS)—Continued

Program and Financing (in millions of dollars)
Identification code 12–1953–0–1–999

00.01
00.02
00.03
00.04
00.06
00.07
10.00

22.00
22.22

Obligations by program activity:
Community Facility Grants ............................................
Domestic Farm Labor Grants .........................................
Very Low-Income Housing Repair Grants ......................
Mutual and Self-Help Housing Grants ..........................
Compensation for Construction Defects ........................
Rural Housing Preservation Grants ...............................

1996 actual

...................
...................
...................
...................
...................
...................

Total obligations (object class 41.0) ........................ ...................

1997 est.

1998 est.

7 ...................
...................
10
...................
25
...................
26
...................
1
...................
10
7

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ...................
8
Unobligated balance transferred from other accounts ................... ...................

71
1

23.90
23.95

Total budgetary resources available for obligation ...................
New obligations ............................................................. ...................

40.00
41.00

New budget authority (gross), detail:
Appropriation .................................................................. ...................
Transferred to other accounts ....................................... ...................

43.00

Appropriation (total) .................................................. ...................

70.00

Total new budget authority (gross) .......................... ...................

................... ...................
...................
7
...................
–1
................... ...................
................... ...................

6
72
–75
–6
71

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.31 Obligated balance transferred to other accounts .........
73.32 Obligated balance transferred from other accounts
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

8
–7

72
–72

130
71
–122 ...................

72.40

86.90
86.93

...................

Outlays (gross), detail:
Outlays from new current authority .............................. ...................
1
Outlays from current balances ...................................... ................... ...................

tion with the section 502 direct loan program and enables
borrowers to borrow less money on the section 502 loans,
thereby spreading that limited resource to more eligible and
needy applicants.
The supervisory and technical assistance grant program is
carried out under the provisions of section 509(f) and 525
of the Housing Act of 1949, as amended. Under section 509,
grants are made to public and private nonprofit organizations
for packaging loan applications for housing under sections
502, 504, 514/516, 515, and 533 of the Housing Act of 1949,
as amended. The assistance is to be directed to underserved
areas where at least 20 percent or more of the population
is at or below the poverty level, and at least 10 percent
or more of the population resides in substandard housing.
Under section 525, grants are made to public and private
nonprofit organizations and other associations for the developing, conducting, administering or coordinating of technical
and supervisory assistance programs to demonstrate the benefits of Federal, State, and local housing programs for lowincome families in rural areas.
The compensation for construction defects program is carried out under the provisions of section 509(c) of the Housing
Act of 1949, as amended. The Secretary of Agriculture is
authorized to make expenditures to correct structural defects,
or to pay claims of owners arising from such defects on newly
constructed dwellings purchased with RHS financial assistance. Requests for compensation for construction defects must
be made within 18 months after the date financial assistance
was granted.
The rural housing preservation grant program is authorized
under section 533 of the Housing Act of 1949, as amended.
Grants are made to eligible nonprofit groups, Indian tribes,
or government agencies for rehabilitation of single family
housing owned by low- and very low-income families and the
rehabilitation of rental and cooperative housing for low- and
very low-income families.

32
43

87.00

Total outlays (gross) ................................................. ...................

89.00
90.00

8
1

71
75

This account consolidates six housing grant programs into
one account. This consolidation provides more flexibility for
distributing rural housing assistance.
The rural housing for domestic farm labor grant program
is authorized under section 516 of the Housing Act of 1949,
as amended. Grants and contracts are made to public and
private nonprofit organizations for low-rent housing and related facilities for domestic farm labor. Grant assistance may
not exceed 90 percent of the cost of a project, and may be
used for construction of new structures, site acquisition and
development, rehabilitation of existing structures, and purchase of furnishings and equipment for dwellings, dining
halls, community rooms, and infirmaries.
The very low-income housing repair grant program is authorized under section 504 of the Housing Act of 1949, as
amended. This grant program enables very low-income elderly
residents in rural areas to improve or modernize their dwellings, to make the dwelling safer or more sanitary, or to remove health and safety hazards.
The mutual and self-help housing grant program is authorized under section 523 of the Housing Act of 1949, as amended. Grants and contracts are made for the purpose of providing technical and supervisory assistance to groups of families
to enable them to build their own homes through the mutual
exchange of labor. This program is typically used in conjunc-

RENTAL ASSISTANCE PROGRAM
For rental assistance agreements entered into or renewed pursuant
to the authority under section 521(a)(2) or agreements entered into
in lieu of debt forgiveness or payments for eligible households as
authorized by section 502(c)(5)(D) of the Housing Act of 1949, as
amended, ø$493,870,000¿ $593,397,000; and in addition such sums
as may be necessary, as authorized by section 521(c) of the Act,
to liquidate debt incurred prior to fiscal year 1992 to carry out the
rental assistance program under section 521(a)(2) of the Act: Provided, That of this amount not more than $5,900,000 shall be available for debt forgiveness or payments for eligible households as authorized by section 502(c)(5)(D) of the Act, and not to exceed $10,000
per project for advances to nonprofit organizations or public agencies
to cover direct costs (other than purchase price) incurred in purchasing projects pursuant to section 502(c)(5)(C) of the Act: Provided
further, That agreements entered into or renewed during fiscal year
ø1997¿ 1998 shall be funded for a five-year period, although the
life of any such agreement may be extended to fully utilize amounts
obligated. (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 12–0137–0–1–604

1996 actual

1997 est.

1998 est.

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

540

22.00
22.30

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Unobligated balance expiring ........................................

541
524
593
–1 ................... ...................

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

540
–540

524
–524

593
–593

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

541

494

593

524

593

RURAL HOUSING SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
40.05
40.47
42.00

Appropriation (indefinite) ...............................................
165
Portion applied to debt reduction .................................
–165
Transferred from other accounts ................................... ...................

128
83
–128
–83
30 ...................

43.00

Appropriation (total) ..................................................

541

524

593

70.00

Total new budget authority (gross) ..........................

541

524

593

Change in unpaid obligations:
Unpaid obligations, start of year:
Obligated balance:
72.40
Appropriation .........................................................
72.47
Authority to borrow ...............................................

1,306
1,169

1,529
1,004

1,650
877

72.99
73.10
73.20
73.40

90.00

74.40
74.47

1,529
1,004

1,650
877

1,774
794

74.99

Total unpaid obligations, end of year ..................

2,533

2,527

Prior year outlays reflect funding for rental assistance for
newly constructed units provided in limited amounts in 1984
and 1985. From 1986 through 1991 rental assistance for
newly constructed units, as well as existing rental assistance
contract renewals and additional servicing assistance for existing projects, had been funded under the Rural Housing
Insurance Fund. Beginning in 1992, pursuant to Credit Reform, a separate grant account was established for the rental
assistance program.

2,475
2,533
2,527
540
524
593
–482
–531
–553
–1 ................... ...................

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts ..................................
Unpaid obligations, end of year:
Obligated balance:
Appropriation .........................................................
Authority to borrow ...............................................

Outlays ...........................................................................

209

2,568

RURAL HOUSING

FOR

DOMESTIC FARM LABOR

Program and Financing (in millions of dollars)
1996 actual

Identification code 12–2004–0–1–604

1997 est.

1998 est.

10.00

Outlays (gross), detail:
86.90 Outlays from new current authority ..............................
86.93 Outlays from current balances ......................................
86.98 Outlays from permanent balances ................................

19
298
165

18
385
128

21
449
83

87.00

Total outlays (gross) .................................................

482

531

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

541
482

524
531

593
553

6 ...................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

10
–10

6 ...................
–6 ...................

40.00
42.00

New budget authority (gross), detail:
Appropriation ..................................................................
10 ................... ...................
Transferred from other accounts ................................... ...................
6 ...................

553

89.00
90.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

43.00

The rental assistance program is authorized under section
521(a)(2) of the Housing Act of 1949, as amended, and is
designed to reduce rents paid by very low-income and lowincome families living in RHS-financed rural rental and farm
labor housing projects. Funding under this account is provided
for renewals of existing rental assistance contracts, assistance
for newly constructed units financed by the section 515 rural
rental and cooperative housing program or the 514/516 farm
labor housing loan and grant programs, and for additional
servicing assistance for existing projects. Assistance is also
provided in lieu of debt forgiveness or payments for eligible
households to subsidize tenant rents in projects purchased
by eligible nonprofit organizations or public agencies as authorized by section 502(c)(5)(D) of the Act.
From 1978 through 1991, the rental assistance program
was funded under the Rural Housing Insurance Fund. Beginning in 1992, pursuant to Credit Reform, a separate grant
account was established for this program.
Included in the request is $52 million for the conversion
of the HUD’s section 8 contracts to USDA’s section 521 rental
assistance program contracts. The Administration believes
USDA’s budget-based approach to rental assistance on multifamily housing is more cost-efficient than HUD’s ‘‘automatic’’
annual rent adjustments.
RURAL HOUSING VOUCHER PROGRAM
Program and Financing (in millions of dollars)
Identification code 12–2002–0–1–604

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1996 actual

1997 est.

1998 est.

72.40

5
–1

4
–1

3
–1

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

89.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................

Appropriation (total) ..................................................

6 ...................

70.00

Total new budget authority (gross) ..........................

6 ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
51
42
29
73.10 New obligations .............................................................
10
6 ...................
73.20 Total outlays (gross) ......................................................
–20
–20 ...................
73.31 Obligated balance transferred to other accounts ......... ................... ...................
–29
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
42
29 ...................
72.40

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority .............................. ...................
Outlays from current balances ......................................
20

1 ...................
19 ...................

87.00

Total outlays (gross) .................................................

20 ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

10
19

6 ...................
20 ...................

This grant program is authorized under section 516 of the
Housing Act of 1949, as amended. Grants are made to public
and private nonprofit organizations for low-rent housing and
related facilities for domestic farm labor. Grant assistance
may not exceed 90 percent of the cost of a project, and may
be used for construction of new structures, site acquisition
and development, rehabilitation of existing structures, and
purchase of furnishings and equipment for dwellings, dining
halls, community rooms, and infirmaries.
In 1998, the funding for rural housing for domestic farm
labor grants is requested to be appropriated to the Rural
Housing Assistance Grants Account. Also, requested is all
balances in this account be transferred to the Rural Housing
Assistance Grants account.

øMUTUAL

AND

SELF-HELP HOUSING GRANTS¿

øFor grants and contracts pursuant to section 523(b)(1)(A) of the
Housing Act of 1949 (42 U.S.C. 1490c), $26,000,000, to remain available until expended (7 U.S.C. 2209b).¿ (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)

210

RURAL HOUSING SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
øMUTUAL

AND

SELF-HELP HOUSING GRANTS¿—Continued

Program and Financing (in millions of dollars)
1996 actual

Identification code 12–2006–0–1–604

1997 est.

1998 est.

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

26 ...................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

13
–13

26 ...................
–26 ...................

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

13
13

26 ...................
26 ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
18
16
24
73.10 New obligations .............................................................
13
26 ...................
73.20 Total outlays (gross) ......................................................
–15
–17 ...................
73.31 Obligated balance transferred to other accounts ......... ................... ...................
–24
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
16
24 ...................
72.40

This program is carried out under the provisions of sections
509(f) and 525 of the Housing Act of 1949, as amended. Under
section 509, grants are made to public and private nonprofit
organizations for packaging loan applications for housing
under sections 502, 504, 514/516, 515, and 533 of the Housing
Act of 1949, as amended. The assistance is to be directed
to underserved areas where at least 20 percent or more of
the population is at or below the poverty level, and at least
10 percent or more of the population resides in substandard
housing. Under section 525, grants are made to public and
private nonprofit organizations and other associations for the
developing, conducting, administering or coordinating of technical and supervisory assistance programs to demonstrate the
benefits of Federal, State, and local housing programs for
low-income families in rural areas.
In 1998, funding for supervisory and technical assistance
grants is requested to be appropriated to the Rural Housing
Assistance Grants account. Also, requested is all balances
in this account be transferred to the Rural Housing Assistance Grants account.
VERY LOW-INCOME HOUSING REPAIR GRANTS

Outlays (gross), detail:
86.90 Outlays from new current authority ..............................
86.93 Outlays from current balances ......................................

4
11

5 ...................
12 ...................

87.00

17 ...................

Total outlays (gross) .................................................

Program and Financing (in millions of dollars)
Identification code 12–2064–0–1–604

10.00
13
15

26 ...................
17 ...................

This program is authorized under section 523 of the Housing Act of 1949, as amended. Grants and contracts are made
for the purpose of providing technical and supervisory assistance to groups of families to enable them to build their own
homes through the mutual exchange of labor.
In 1998, the funding for mutual and self-housing grants
is requested to be appropriated to the Rural Housing Assistance Grants account. Also, requested is all balances in this
account be transferred to the Rural Housing Assistance
Grants account.

Obligations by program activity:
Total obligations (object class 41.0) ............................

1996 actual

1997 est.

1998 est.

17 ...................

1 ...................
16 ...................

21.40

23.90
23.95
24.40

40.00
42.00

26
–26

17 ...................
–17 ...................

1 ................... ...................

New budget authority (gross), detail:
Appropriation ..................................................................
26 ................... ...................
Transferred from other accounts ................................... ...................
16 ...................

AND

TECHNICAL ASSISTANCE GRANTS

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
23.95 New obligations .............................................................
24.40 Unobligated balance available, end of year:
Uninvested balance ...................................................

1996 actual

1997 est.

1998 est.

2 ...................

21.40

5
–3

16 ...................

Total new budget authority (gross) ..........................

16 ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
4
3
1
73.10 New obligations .............................................................
26
17 ...................
73.20 Total outlays (gross) ......................................................
–25
–19 ...................
73.31 Obligated balance transferred to other accounts ......... ................... ...................
–1
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
3
1 ...................
72.40

Program and Financing (in millions of dollars)
Identification code 12–2009–0–1–604

Appropriation (total) ..................................................

70.00

SUPERVISORY

43.00

2 ...................
–2 ...................

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
25
Outlays from current balances ...................................... ...................

15 ...................
4 ...................

87.00

Total outlays (gross) .................................................

19 ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

26
25

16 ...................
19 ...................

2 ................... ...................

Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
1
3
2
73.10 New obligations .............................................................
3
2 ...................
73.20 Total outlays (gross) ......................................................
–1
–3 ...................
73.31 Obligated balance transferred to other accounts ......... ................... ...................
–2
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
3
2 ...................

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

89.00
90.00

3 ...................

This program is authorized under section 504 of the Housing Act of 1949, as amended. This grant program enables
very low-income elderly residents in rural areas to improve
or modernize their dwellings, to make the dwelling safer or
more sanitary, or to remove health and safety hazards.
In 1998, the funding for very low-income housing repair
grants is requested to be appropriated to the Rural Housing
Assistance Grants account. Also, requested is all balances
in this account be transferred to the Rural Housing Assistance Grants account.

RURAL HOUSING SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
RURAL COMMUNITY FIRE PROTECTION GRANTS
For grants pursuant to section 7 of the Cooperative Forestry Assistance Act of 1978 (Public Law 95–313), $2,000,000 to fund up to
50 percent of the cost of organizing, training, and equipping rural
volunteer fire departments.
Program and Financing (in millions of dollars)

211

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
34
24
15
73.10 New obligations .............................................................
11
7 ...................
73.20 Total outlays (gross) ......................................................
–21
–16 ...................
73.31 Obligated balance transferred to other accounts ......... ................... ...................
–15
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
24
15 ...................
72.40

86.93

Identification code 12–2067–0–1–452

Obligations by program activity:
10.00 Total obligations (object class 41.0) ............................
Budgetary resources available for obligation:
22.00 New budget authority (gross) ........................................
23.95 New obligations .............................................................

40.00
42.00

1997 est.

16 ...................

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

11
21

7 ...................
16 ...................

1998 est.

2
–2

Outlays (gross), detail:
Outlays from current balances ......................................

89.00
90.00

1996 actual

1
–1

2
–2

New budget authority (gross), detail:
Appropriation ..................................................................
2 ...................
2
Transferred from other accounts ................................... ...................
1 ...................

43.00

Appropriation (total) ..................................................

70.00

Total new budget authority (gross) ..........................

3
2
–3

2
1
–2

1
2
–2

This grant program is authorized under section 533 of the
Housing Act of 1949, as amended. Grants are made to eligible
private nonprofit groups, Indian tribes, or government agencies for rehabilitation of single family housing owned by lowand very low-income families and the rehabilitation of rental
and cooperative housing for low- and very low-income families.
In 1998, the funding for rural housing preservation grants
is requested to be appropriated to the Rural Housing Assistance Grants account. Also, requested is all balances in this
account be transferred to the Rural Housing Assistance
Grants account.

72.40

COMPENSATION
Outlays (gross), detail:
86.90 Outlays from new current authority ..............................
86.93 Outlays from current balances ......................................

1 ...................
2
2

1
1

87.00

FOR

CONSTRUCTION DEFECTS

Total outlays (gross) .................................................

Identification code 12–2071–0–1–371

1996 actual

1997 est.

1998 est.

2
3

1
2

2
2

This assistance was authorized by section 7 of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2106). Grants
are made to public bodies to organize, train, and equip local
firefighting forces, including those of Indian tribes or other
Native American groups, to prevent, control, and suppress
fires threatening human lives, crops, livestock, farmsteads
or other improvements, pastures, orchards, wildlife, rangeland, woodland, and other resources in rural areas.
In 1997, funding for the Rural Community Fire Protection
grant program was appropriated to the Rural Housing Assistance Program and transferred to this account for administration. In 1998, funding for these grants is requested to be
appropriated to this account.

RURAL HOUSING PRESERVATION GRANTS
Program and Financing (in millions of dollars)
Identification code 12–2070–0–1–604

Program and Financing (in millions of dollars)

1996 actual

1997 est.

1998 est.

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

7 ...................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

11
–11

23.90
24.40

89.00
90.00

Total budgetary resources available for obligation
Unobligated balance available, end of year:
Uninvested balance ...................................................

1
–1

2 ...................

1 ...................

This program is carried out under the provisions of section
509(c) of the Housing Act of 1949, as amended. The Secretary
of Agriculture is authorized to make expenditures to correct
structural defects, or to pay claims of owners arising from
such defects on newly constructed dwellings purchased with
RHS financial assistance. Requests for compensation for construction defects must be made within 18 months after the
date financial assistance was granted.
In 1998, the funding for compensation for construction defects is requested to be appropriated to the Rural Housing
Assistance Grants account. Also, requested is all balances
in this account be transferred to the Rural Housing Assistance Grants account.

7 ...................
–7 ...................

Credit accounts:
RURAL COMMUNITY FACILITY LOANS PROGRAM ACCOUNT
Program and Financing (in millions of dollars)
Identification code 12–1951–0–1–452

New budget authority (gross), detail:
40.00 Appropriation ..................................................................
11 ................... ...................
42.00 Transferred from other accounts ................................... ...................
7 ...................
43.00

Appropriation (total) ..................................................

7 ...................

70.00

Total new budget authority (gross) ..........................

7 ...................

00.01
00.02
00.03
00.04
00.07

Obligations by program activity:
Direct loan subsidy ........................................................
Guaranteed loan subsidy ...............................................
Reestimates of direct loan subsidy ...............................
Interest on reestimates of direct loan subsidy .............
Administrative expenses ................................................

1996 actual

1997 est.

1998 est.

35
11 ...................
3
1 ...................
9 ................... ...................
1 ................... ...................
9 ................... ...................

212

RURAL HOUSING SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
2329

Credit accounts—Continued
RURAL COMMUNITY FACILITY LOANS PROGRAM ACCOUNT—Continued
Program and Financing (in millions of dollars)—Continued
Identification code 12–1951–0–1–452

10.00

Total obligations ........................................................

1996 actual

1997 est.

1998 est.

12 ...................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ................................................... ...................
5 ...................
22.00 New budget authority (gross) ........................................
57
12 ...................
22.10 Resources available from recoveries of prior year obligations .......................................................................
1 ................... ...................
22.22 Unobligated balance transferred from other accounts
5 ................... ...................
22.30 Unobligated balance expiring ........................................
–1
–5 ...................
Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

62
–57

12 ...................
–12 ...................

5 ................... ...................

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
47 ................... ...................
42.00
Transferred from other accounts .............................. ...................
12 ...................
43.00

60.05

Appropriation (total) .............................................
Permanent:
Appropriation (indefinite) ..........................................

70.00

Total new budget authority (gross) ..........................

4.76

0.41 ...................

1 ...................

Total subsidy budget authority .................................
Guaranteed loan subsidy outlays:
2340 Subsidy outlays ..............................................................

1 ...................

2349

Total subsidy outlays ................................................

1 ...................

3510
3590

Administrative expense data:
Budget authority ............................................................
Outlays ...........................................................................

2339

21.40

23.90
23.95
24.40

Weighted average subsidy rate .................................
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority ...............................................

12 ...................

10 ................... ...................
12 ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation ............................................................. ...................
52
41
73.10 New obligations .............................................................
57
12 ...................
73.20 Total outlays (gross) ......................................................
–37
–23 ...................
73.31 Obligated balance transferred to other accounts ......... ................... ...................
–41
73.32 Obligated balance transferred from other accounts
33 ................... ...................
73.45 Adjustments in unexpired accounts ..............................
–1 ................... ...................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
52
41 ...................
72.40

This account provides funding to local governments and
nonprofit organizations for the construction and improvement
of community facilities providing essential services in rural
areas, such as hospitals and fire stations.
As required by the Federal Credit Reform Act of 1990,
this account records, for this program, the subsidy costs associated with the direct loans obligated and loan guarantees
committed in 1992 and beyond, as well as administrative
expenses of this program. The subsidy amounts are estimated
on a present value basis; the administrative expenses are
estimated on a cash basis.
In 1998, funding is requested to be appropriated for the
direct and guaranteed community facility loan programs to
the Rural Community Advancement Program and all balances
from the Community Facility Loans Program Account be
transferred to the Rural Community Advancement Program
account. Funding for salaries and expenses associated with
the program is requested to be appropriated to the Rural
Housing Service, Salaries and Expenses account.
Object Classification (in millions of dollars)
Identification code 12–1951–0–1–452

41.0
86.90
86.93
86.97

87.00

Total outlays (gross) .................................................

23 ...................

57
37

12 ...................
23 ...................

15
2 ...................
12
21 ...................
10 ................... ...................

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 12–1951–0–1–452

9 ................... ...................
9 ................... ...................

25.3

Purchases of goods and services from Government
accounts ....................................................................
Grants, subsidies, and contributions ............................

99.9

Total obligations ........................................................

1996 actual

1997 est.

1998 est.

9 ................... ...................
48
12 ...................
57

12 ...................

RURAL COMMUNITY FACILITY DIRECT LOANS FINANCING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 12–4225–0–1–452

1996 actual

1997 est.

1998 est.

1997 est.

1998 est.

208

Total obligations ........................................................

236

169

254

22.00
23.95

Budgetary resources available for obligation:
New financing authority (gross) ....................................
New obligations .............................................................

237
–236

169
–169

254
–254

188

131

204

137 ...................

1159

Obligations by program activity:
Direct Loans ...................................................................
Interest on Treasury Borrowing ......................................
Recertified checks ..........................................................

10.00

1996 actual

Direct loan levels supportable by subsidy budget authority:
1150 Direct loan levels ...........................................................

00.01
00.02
00.03

Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Subsidy rate ...................................................................

208

137 ...................

16.80

8.73 ...................

1329

16.80

8.73 ...................

11 ...................

Total subsidy budget authority .................................
Direct loan subsidy outlays:
1340 Subsidy outlays ..............................................................

11 ...................

21 ...................

68.90

1349

208
137
209
27
32
45
1 ................... ...................

21 ...................

Weighted average subsidy rate .................................
Direct loan subsidy budget authority:
1330 Subsidy budget authority ...............................................

1339

Total subsidy outlays ................................................

67.15

Spending authority from offsetting collections
(total) ................................................................

Total new financing authority (gross) ......................

237

169

254

75
222
52

71
212
42

70.00
Guaranteed loan levels supportable by subsidy budget
authority:
2150 Loan guarantee levels ...................................................

74 ...................

2159

74 ...................

4.76

0.41 ...................

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Guaranteed subsidy rate ...............................................

61
48
56
19
–10
–6
–31 ................... ...................

RURAL HOUSING SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
72.99
73.10
73.20
73.32
73.40

74.47
74.90
74.95

Total unpaid obligations, start of year ................
New obligations .............................................................
Total financing disbursements (gross) .........................
Obligated balance transferred from other accounts
Adjustments in expired accounts ..................................
Unpaid obligations, end of year:
Obligated balance:
Authority to borrow ...............................................
Obligated balance .................................................
Receivables from program account ..........................

74.99
87.00

Total unpaid obligations, end of year ..................
Total financing disbursements (gross) .........................

33
349
325
236
169
254
–147
–193
–224
234 ................... ...................
–7 ................... ...................

75
222
52

71
212
42

80
239
36

349
147

325
193

Non-Federal liabilities: Liability for deposit funds ..........................................

..................

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

..................

377

502

672

..................

3999

Total net position ................................

..................

4999

Total liabilities and net position ............

..................

429

544

708

2999

355
224

RURAL COMMUNITY FACILITY GUARANTEED LOANS FINANCING
ACCOUNT

–10
–8
–10
–14
–17
–21
–1 ................... ...................

88.90
88.95

–61
–19

Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............

2203

213

Program and Financing (in millions of dollars)
–26
–10

–22
–1

–48
10

–23
–2

–56
6

Identification code 12–4228–0–1–452

00.02
00.03
10.00

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Subsidy reestimate paid to reciept account .................
1 ................... ...................
Investment in secondary market ................................... ................... ...................
1
Total obligations ........................................................

1 ...................

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ...................................................................... ...................
7
9
22.00 New financing authority (gross) ....................................
4
2
3
22.22 Unobligated balance transferred from other accounts
4 ................... ...................

21.90
89.00
90.00

157
86

131
145

204
168

23.90
23.95
24.90

Status of Direct Loans (in millions of dollars)
1996 actual

Identification code 12–4225–0–1–452

1997 est.

1998 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans .............................................

208

137

209

1150

208

137

209

1210
1231
1251
1264
1290

Total direct loan obligations .....................................

Cumulative balance of direct loans outstanding:
Outstanding, start of year ............................................. ...................
348
501
Disbursements: Direct loan disbursements ...................
118
161
180
Repayments: Repayments and prepayments .................
–10
–8
–10
Write-offs for default: Other adjustments, net .............
240 ................... ...................
Outstanding, end of year ..........................................

348

501

671

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond. The amounts in this account are a means of
financing and are not included in the budget totals. Loans
made prior to 1992 are recorded in the Rural Development
Insurance Fund Liquidating Account.
This account provides funding to non-profit organizations
and local governments for the construction and improvement
of community facilities providing essential services in rural
areas, such as hospitals, telecommunications applications,
child care centers and fire stations.
Balance Sheet (in millions of dollars)
Identification code 12–4225–0–1–452

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1402
Interest receivable ..............................
1405
Allowance for subsidy cost (–) ...........
1499
1999

Net present value of assets related
to direct loans ...........................

Total assets ........................................
LIABILITIES:
2101 Federal liabilities: Accounts payable ......

1995 actual

1996 actual

1997 est.

1998 est.

..................

68.00

73.10
73.20
87.00

348
4
–50

501
17
–87

670
21
–99

..................

302

431

429

544

708

..................

375

501

670

4
4

2
2

3
3

1 ...................
–1 ...................
1 ...................

1
–1
1

88.90

89.00
90.00

Total, offsetting collections (cash) ..................

–4

–2

–3

Status of Guaranteed Loans (in millions of dollars)
Identification code 12–4228–0–1–452

Position with respect to appropriations act limitation
on commitments:
2111 Limitation on guaranteed loans made by private lenders ..............................................................................
2112 Uncommitted loan guarantee limitation .......................
2150
2199

2210
2231
2251
2264

Total guaranteed loan commitments ........................
Guaranteed amount of guaranteed loan commitments

1996 actual

1997 est.

1998 est.

75
74
209
–19 ................... ...................
56
45

74
59

209
168

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year ............................................. ...................
94
143
Disbursements of new guaranteed loans ......................
45
54
77
Repayments and prepayments ......................................
–5
–5
–8
Adjustments: Other adjustments, net ...........................
54 ................... ...................

592

..................

12
–1

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal sources .....................................................
–3
–2
–1
88.25
Interest on uninvested funds ............................... ................... ...................
–2
88.40
Non-Federal sources .............................................
–1 ................... ...................

..................
..................
..................

New financing authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

8
9
–1 ...................

2290

Outstanding, end of year ..........................................

143

212

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

114

169

214

RURAL HOUSING SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
07.99

Credit accounts—Continued
RURAL COMMUNITY FACILITY GUARANTEED LOANS FINANCING
ACCOUNT—Continued

Total balance, end of year ............................................

Program and Financing (in millions of dollars)

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from guaranteed loans committed
in 1992 and beyond. The amounts in this account are a means
of financing and are not included in the budget totals. Loans
made prior to 1992 are recorded in the Rural Development
Insurance Fund Liquidating Account.
This account finances loan guarantee commitments for essential community facilities in rural areas.
Balance Sheet (in millions of dollars)

1996 actual

Identification code 12–2081–0–1–371

00.01
00.02
00.05
00.06
00.09
00.10

Obligations by program activity:
Direct loan subsidy ........................................................
Guaranteed loan subsidy ...............................................
Reestimates of direct loan subsidy ...............................
Interest on reestimates of direct loan subsidy .............
Administrative expenses—salaries, expenses ..............
Administrative expenses—nonrecoverable expenses ....

10.00

Total obligations ........................................................

1997 est.

1998 est.

249
190
218
4
7
7
46 ................... ...................
8 ................... ...................
373
366
355
10 ................... ...................
690

563

580

Identification code 12–4228–0–1–452

1101

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................

1995 actual

1996 actual

1997 est.

1998 est.

..................

Total assets ........................................
LIABILITIES:
2204 Non-Federal liabilities: Liabilities for
loan guarantees ..................................

..................

2999

Total liabilities ....................................

..................

4999

Total liabilities and net position ............

..................

1999

23.90
23.95
24.40

696
–690

563
–563

580
–580

6 ................... ...................

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
646
42.00
Transferred from other accounts .............................. ...................

507
580
50 ...................

43.00

557

70.00

(INCLUDING TRANSFERS OF FUNDS)

For gross obligations for the principal amount of direct and guaranteed loans as authorized by title V of the Housing Act of 1949,
as amended, to be available from funds in the rural housing insurance fund, as follows: ø$3,300,000,000¿ $4,000,000,000 for loans to
section 502 borrowers, as determined by the Secretary, of which
ø$2,300,000,000¿ $3,000,000,000 shall be for unsubsidized guaranteed
loans; ø$35,000,000¿ $30,000,000 for section 504 housing repair loans;
ø$15,000,000¿ $15,001,000 for section 514 farm labor housing;
ø$58,654,000¿ $128,640,000 for section 515 rental housing; $600,000
for section 524 site loans; ƒ$50,000,000≈ $25,004,000 for credit sales
of acquired property; and ø$600,000¿ $587,000 for section 523 selfhelp housing land development loans.
For the cost of direct and guaranteed loans, including the cost
of modifying loans, as defined in section 502 of the Congressional
Budget Act of 1974, as follows: section 502 loans, ø$89,210,000¿
$135,000,000, of which ø$6,210,000¿ $6,900,000 shall be for
unsubsidized guaranteed loans; section 504 housing repair loans,
ø$11,081,000¿ $10,308,000; section 514 farm labor housing,
ø$6,885,000¿ $7,388,000; section 515 rental housing, ø$28,987,000¿
$68,745,000; credit sales of acquired property, ø$4,050,000¿
$3,493,000; and section 523 self-help housing land development loans,
ø$17,000¿ $20,000: Provided, That of the total amount available,
$3,603,600 shall be for empowerment zones and enterprise communities as authorized by Public Law 103–66: Provided further, That
if such funds are not obligated for empowerment zones and enterprise
communities by June 30, 1998, they shall remain available for other
authorized purposes under this head.
In addition, for administrative expenses necessary to carry out
the direct and guaranteed loan programs, ø$366,205,000¿
$354,785,000, which shall be transferred to and merged with the
appropriation for ‘‘Rural Housing Service, Salaries and Expenses’’.
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 1997.)

646

60.05

RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

Appropriation (total) .............................................
Permanent:
Appropriation (indefinite) ..........................................
Total new budget authority (gross) ..........................

700

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

580

54 ................... ...................
557

580

72.40

269
231
168
690
563
580
–725
–626
–609
–2 ................... ...................
231

168

139

86.90
86.93
86.97

87.00

Total outlays (gross) .................................................

725

626

609

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

700
725

557
626

580
609

512
463
487
159
163
122
54 ................... ...................

Summary of Budget Authority and Outlays
(in millions of dollars)

Enacted/requested:
1996 actual
1997 est.
1998 est.
Budget Authority .....................................................................
700
557
580
Outlays ....................................................................................
725
626
609
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... .................... ....................
Outlays .................................................................................... .................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

700
725

557
626

580
609

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

Unavailable Collections (in millions of dollars)
Identification code 12–2081–0–1–371
Identification code 12–2081–0–1–371

1996 actual

1997 est.

1998 est.

Balance, start of year:
Balance, start of year .................................................... ...................
41
41
Receipts:
02.01 Rural housing insurance fund, downward reestimates
of subsidies ...............................................................
41 ................... ...................
01.99

04.00

Total: Balances and collections ....................................

1996 actual

Direct loan levels supportable by subsidy budget authority:
1150 Single family housing ....................................................
1,051
1150 Multi-family housing ......................................................
151
1150 Housing repair ...............................................................
42
1150 Farm labor housing .......................................................
15
1150 Site development ...........................................................
1
1150 Credit sales of acquired property .................................. ...................

1997 est.

585
153
30
15
1
28

1998 est.

1,000
128
30
15
1
25

RURAL HOUSING SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
1150

Self-help housing ........................................................... ...................

1159

Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Single family housing ....................................................
1320 Multi-family housing ......................................................
1320 Housing repair ...............................................................
1320 Farm labor housing .......................................................
1320 Site development ...........................................................
1320 Credit sales of acquired property ..................................
1320 Self-help housing ...........................................................

1,260

813

1,200

14.30
53.80
37.55
56.80
–1.51
17.43
5.21

14.18
51.24
36.63
47.77
–1.02
14.28
2.87

12.81
53.44
34.36
49.25
–1.19
13.97
3.41

1329

Weighted average subsidy rate .................................
20.38
22.30
18.17
Direct loan subsidy budget authority:
1330 Single family housing ....................................................
150
83
128
1330 Multi-family housing ......................................................
81
78
69
1330 Housing repair ...............................................................
16
11
10
1330 Farm labor housing .......................................................
9
7
7
1330 Site development ........................................................... ................... ................... ...................
1330 Credit Sales on acquired property ................................. ...................
4
3
1330 Self-help housing ........................................................... ................... ................... ...................

215

standard metropolitan statistical area and has a serious lack
of mortgage credit for low- and moderate-income borrowers.
As required by the Federal Credit Reform Act of 1990,
this account records, for this program, the subsidy costs associated with the direct loans obligated and loan guarantees
committed in 1992 and beyond (including credit sales of acquired property), as well as administrative expenses of this
program. The subsidy amounts are estimated on a present
value basis; the administrative expenses are estimated on
a cash basis.
Object Classification (in millions of dollars)
Identification code 12–2081–0–1–371

1997 est.

1998 est.

41.0

Purchases of goods and services from Government
accounts ....................................................................
Grants, subsidies, and contributions ............................

383
307

366
197

355
225

99.9
Total subsidy budget authority .................................
256
183
218
Direct loan subsidy outlays:
1340 Single family housing ....................................................
134
100
123
1340 Multi-family housing ......................................................
130
127
102
1340 Housing repair ...............................................................
12
10
12
1340 Farm labor housing .......................................................
11
6
7
1340 Site Development ........................................................... ................... ................... ...................
1340 Credit sales of acquired property .................................. ...................
4
3
1340 Self-help housing ........................................................... ................... ................... ...................

25.3

1996 actual

Total obligations ........................................................

690

563

580

1339

1349

Total subsidy outlays ................................................

287

247

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Single family housing—unsubsidized ...........................
2150 Multifamily Housing .......................................................

1,700
13

2,700
3,000
13 ...................

2159

1,713

2,713

3,000

0.23
6.10

0.23
5.88

0.23
6.09

0.24

0.26

0.23

RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT
(Legislative proposal, not subject to PAYGO)
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 12–2081–2–1–371

1996 actual

1997 est.

1998 est.

Direct loan levels supportable by subsidy budget authority:
1150 Multi-family housing ...................................................... ................... ...................

1159

2329

Weighted average subsidy rate .................................
Guaranteed loan subsidy budget authority:
2330 Single family housing—unsubsidized ...........................
2330 Multi Family Housing .....................................................

3
1

2339

6
7
1 ...................

Total subsidy budget authority .................................
4
Guaranteed loan subsidy outlays:
2340 Single family housing—unsubsidized ...........................
3
2340 Multi Family Housing ..................................................... ...................

4
7
1 ...................

2349

Total subsidy outlays ................................................

386
381

366
373

355
355

Rural housing insurance fund—This fund was established
in 1965 (Public Law 89–117) pursuant to section 517 of title
V of the Housing Act of 1949, as amended.
The major programs funded through the Rural Housing
Insurance Fund Program account are: section 502 very low
and low to moderate income homeownership loans and guarantees; section 504 very low-income housing repair loans; section 514 domestic farm labor housing loans; section 515 rural
rental housing loans; section 524 housing site loans, and credit sales of acquired property. The section 523 self-help housing
land development loan program is included under this heading beginning with the 1997 budget. Previously, this loan
program was accounted for under the separate heading of
‘‘Self-Help Housing Land Development Fund Program Account.’’
Loan programs are limited to rural areas that include
towns, villages, and other places which are not part of an
urban area and that have a population not in excess of 2,500
inhabitants, or is in excess of 2,500 but not in excess of
10,000 if rural in character, or has a population in excess
of 10,000 but not more than 20,000 and is not within a

Total direct loan levels ............................................. ................... ...................
Direct loan subsidy (in percent):
1320 Multi-family housing ...................................................... ................... ...................

–7.61

1329

Weighted average subsidy rate ................................. ................... ...................

–7.61

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Single family housing, unsub, refinancing ................... ................... ...................

100

2159

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Single family housing—unsubsidized ...........................
2320 Multi Family Housing .....................................................

100

Total loan guarantee levels ...................................... ................... ...................
Guaranteed loan subsidy (in percent):
2320 Single family housing, unsub, refinancing ................... ................... ...................

0.02

2329

0.02

Weighted average subsidy rate ................................. ................... ...................

Proposed legislation to amend the Housing Act of 1949,
would provide for additional direct loans for the section 515
rural rental housing loan program as a result of a ‘‘balloon’’
payment in year 30, lowering the cost of the program. A
new section 502 guaranteed rural housing loan program is
also proposed for refinancing of direct single family home
loans to facilitate the graduation of direct loan borrowers
into the private sector. These loans will be provided only
to borrowers who do not qualify for conventional private sector financing without the federal guarantee.

RURAL HOUSING INSURANCE FUND DIRECT LOAN FINANCING
ACCOUNT
Program and Financing (in millions of dollars)
Identification code 12–4215–0–3–371

00.01
00.02
00.03
00.04
00.05
00.06
10.00

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Direct loans ....................................................................
1,218
993
1,200
Advances on behalf of borrowers ..................................
6
30
28
Collateral acquired by default ....................................... ...................
3
4
Interest on Treasury borrowing ......................................
424
483
544
Subsidy reestimate paid to receipt account .................
35 ................... ...................
Other expenses ...............................................................
8 ................... ...................
Total obligations ........................................................

1,691

1,509

1,776

216

RURAL HOUSING SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
1290

Credit accounts—Continued
RURAL HOUSING INSURANCE FUND DIRECT LOAN FINANCING
ACCOUNT—Continued
Program and Financing (in millions of dollars)—Continued
Identification code 12–4215–0–3–371

22.00
23.95

Budgetary resources available for obligation:
New financing authority (gross) ....................................
New obligations .............................................................

1996 actual

1997 est.

1998 est.

1,691
–1,691

1,509
–1,509

1,776
–1,776

983

1,021

1,263

866
–43
–115

863
–54
–321

967
–32
–422

68.90

Spending authority from offsetting collections
(total) ................................................................

708

488

513

70.00

Total new financing authority (gross) ......................

1,691

1,509

1,776

Change in unpaid obligations:
Unpaid obligations, start of year:
Obligated balance:
72.47
Authority to borrow ...............................................
72.90
Obligated balance .................................................
72.95
Receivables from program account ..........................

14
265
264

33
334
221

25
250
167

72.99
73.10
73.20
73.40

74.47
74.90
74.95

Total unpaid obligations, start of year ................
New obligations .............................................................
Total financing disbursements (gross) .........................
Adjustments in expired accounts ..................................
Unpaid obligations, end of year:
Obligated balance:
Authority to borrow ...............................................
Obligated balance .................................................
Receivables from program account ..........................

74.99
87.00

Total unpaid obligations, end of year ..................
Total financing disbursements (gross) .........................

543
588
442
1,691
1,509
1,776
–1,634
–1,655
–1,784
–13 ................... ...................

33
334
221

25
250
167

35
264
135

588
1,634

442
1,655

434
1,784

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal sources .....................................................
88.25
Interest on uninvested funds ...............................
Non-Federal sources:
88.40
Repayments of principal ..................................
88.40
Interest received on loans ................................
88.40
Repayments on advances ................................
88.40
Proceeds on sale of acquired property ............
88.40
Fees and miscellaneous collections .................

–136
–174
–215
–288
–330
–400
–2
–3
–4
–8
–14
–16
–21 ................... ...................

88.90
88.95

Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............

–866
43

–863
54

–967
32

89.00
90.00

868
768

700
792

Identification code 12–4215–0–3–371

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1402
Interest receivable ..............................
1404
Foreclosed property .............................
1405
Allowance for subsidy cost (–) ...........

–251
–81

1996 actual

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1231 Disbursements: Direct loan disbursements ...................
1251 Repayments: Repayments and prepayments .................
1261 Adjustments: Capitalized interest .................................
Write-offs for default:
1263
Direct loans ...............................................................
1264
Other adjustments, net .............................................

1995 actual

1996 actual

1997 est.

1998 est.

265

334

250

264

221

167

135

6,797
28
5
–1,962

7,800
39
10
–2,202

8,786
46
15
–2,405

9,797
54
23
–2,612

4,868

5,647

6,442

7,262

5,397

6,202

6,859

7,661

..................
5,113
264
..................
20

..................
5,950
221
..................
31

..................
6,657
167
..................
35

..................
7,488
135
..................
39

Total liabilities ....................................

5,397

6,202

6,859

7,662

4999

Total liabilities and net position ............

5,397

6,202

6,859

7,662

RURAL HOUSING INSURANCE FUND DIRECT LOAN FINANCING
ACCOUNT
(Legislative proposal, not subject to PAYGO)

1997 est.

Program and Financing (in millions of dollars)

1998 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans .............................................
1,260
852
1,200
1112 Unobligated direct loan limitation ................................
–3 ................... ...................
1113 Unobligated limitation carried forward .........................
–39 ................... ...................
1131 Direct loan obligations exempt from limitation ............ ...................
141 ...................
Total direct loan obligations .....................................

9,797

2999

Status of Direct Loans (in millions of dollars)

1150

Net present value of assets related
to direct loans ...........................

1999

–264
–78

8,786

Balance Sheet (in millions of dollars)

1499

–342
–69

7,800

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond including credit sales of acquired property. The
amounts in this account are a means of financing and are
not included in the budget totals.
This account finances direct rural housing loans for: section
502 very low- and low-to-moderate-income home ownership
loan program; section 504 very low income housing repair
loan program; section 514 domestic farm labor housing loan
program; section 515 rural rental housing loan program; sections 523 self-help housing loans, and 524 site development
loans; and credit sales of acquired property.
Loan programs are limited to rural areas that include
towns, villages and other places which are not part of an
urban area and that have a population not in excess of 2,500
inhabitants, or is in excess of 2,500 but not in excess of
10,000 if rural in character, or has a population in excess
of 10,000 but not more than 20,000 and is not within a
standard metropolitan statistical area and has a serious lack
of mortgage credit for low and moderate-income borrowers.

841
817

Identification code 12–4215–0–3–371

Outstanding, end of year ..........................................

Identification code 12–4215–2–3–371

1996 actual

1997 est.

1998 est.

993

Obligations by program activity:
Direct loans .................................................................... ................... ...................

10.00

Total obligations ........................................................ ................... ...................

22.00
23.95

1,218

00.01

Budgetary resources available for obligation:
New financing authority (gross) .................................... ................... ...................
New obligations ............................................................. ................... ...................

21
–21

67.15

New financing authority (gross), detail:
Authority to borrow (indefinite) ..................................... ................... ...................

73.10
73.20

21
–3

1,200

6,797
1,153
–138
10

7,800
1,138
–177
11

8,786
1,208
–219
12

–12
–10

–16
30

–18
28

RURAL HOUSING SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
74.47
87.00

Unpaid obligations, end of year: Obligated balance:
Authority to borrow .................................................... ................... ...................
Total financing disbursements (gross) ......................... ................... ...................

18
3

89.00
90.00

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ...................
Financing disbursements ............................................... ................... ...................

21
3

New financing authority (gross), detail:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.10
Receivables from program account ..........................
68.90
70.00

217

20
1

31
39
2 ...................

Spending authority from offsetting collections
(total) ................................................................

Total new financing authority (gross) ......................

1
13
–13

3
21
–21

3
13

3
21

–7
–6
–26

Status of Direct Loans (in millions of dollars)
1996 actual

Identification code 12–4215–2–3–371

1997 est.

1998 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ...................

1150

1210
1231
1251
1290

Total direct loan obligations ..................................... ................... ...................

Cumulative balance of direct loans outstanding:
Outstanding, start of year ............................................. ................... ................... ...................
Disbursements: Direct loan disbursements ................... ................... ...................
3
Repayments: Repayments and prepayments ................. ................... ................... ...................
Outstanding, end of year .......................................... ................... ...................

This account reflects the additional principal amount of
section 515 rural rental housing loans that can be obligated
under the legislative proposal to institute a balloon payment
requirement in year 30, for what was previously a 50 year
loan program. The debt service requirement will remain the
same as if the loan had a 50 year term, until the balloon
payment in year 30.
As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond. The amounts in this account are a means of
financing and are not included in the budget totals.

ASSETS:
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1405
Allowance for subsidy cost (–) ...........
1499

Net present value of assets related
to direct loans ...........................

1999

1995 actual

1996 actual

1997 est.

–3
–4
–13

–5
–5
–21

88.90
88.95

–20
–1

–31
–39
–2 ...................

89.00
90.00

Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............

Status of Guaranteed Loans (in millions of dollars)
1996 actual

Identification code 12–4216–0–3–371

1997 est.

1998 est.

1,713

2,713

3,000

1998 est.

2150

Total guaranteed loan commitments ........................

1,713

2,713

3,000

2210
2231
2251
2263

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Disbursements of new guaranteed loans ......................
Repayments and prepayments ......................................
Adjustments: Terminations for default that result in
claim payments .........................................................

2,085
1,496
–74

3,503
2,319
–126

5,682
2,874
–203

–4

–14

–23

Balance Sheet (in millions of dollars)
Identification code 12–4215–2–3–371

Change in unpaid obligations:
Unpaid obligations, start of year: Receivables from
program account ....................................................... ...................
73.10 New obligations .............................................................
8
73.20 Total financing disbursements (gross) .........................
–8
74.95 Unpaid obligations, end of year: Receivables from
program account .......................................................
1
87.00 Total financing disbursements (gross) .........................
8
72.95

..................
..................

3
..................

..................

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Debt ...........................

..................

2999

Total liabilities ....................................

..................

Total liabilities and net position ............

..................

Outstanding, end of year ..........................................

3,503

5,682

8,330

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

3,153

5,114

7,497

4999

2290

RURAL HOUSING INSURANCE FUND GUARANTEED LOAN FINANCING
ACCOUNT
Program and Financing (in millions of dollars)
Identification code 12–4216–0–3–371

00.01
00.02

Obligations by program activity:
Default claims ...............................................................
Subsidy reestimate paid to receipt account .................

10.00

Total obligations ........................................................

1996 actual

1997 est.

1998 est.

3
13
21
5 ................... ...................
8

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from guaranteed loan commitments
made in 1992 and beyond. The amounts in this account are
a means of financing and are not included in the budget
totals.
This account finances the nonsubsidized guaranteed section
502 low-to-moderate-income home ownership loan program
and section 538 multi-family housing loan program. The guaranteed programs enable RHS to utilize private sector resources for the making and servicing of loans while the Agency provides a financial guarantee to encourage private sector
activity.
Balance Sheet (in millions of dollars)

52
21

65
33

85
39

73
–8

98
–13

124
–21

Identification code 12–4216–0–3–371

1995 actual

1996 actual

1997 est.

1998 est.

102

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
1999

Total assets ........................................

100

..................

102

218

RURAL HOUSING SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

Credit accounts—Continued

Balance Sheet (in millions of dollars)

RURAL HOUSING INSURANCE FUND GUARANTEED LOAN FINANCING
ACCOUNT—Continued

Identification code 12–4216–2–3–371

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................
1405 Net value of assets related to post–
1991 direct loans receivable: Allowance for subsidy cost (–) ...................

Balance Sheet (in millions of dollars)—Continued
Identification code 12–4216–0–3–371

1995 actual

1996 actual

1997 est.

1998 est.

2204

LIABILITIES:
Non-Federal liabilities: Liabilities for
loan guarantees ..................................

102

2999

Total liabilities ....................................

102

4999

Total liabilities and net position ............

102

1999

1995 actual

1996 actual

1997 est.

1998 est.

..................

–1,962

–2,202

–2,405

–2,612

–1,962

–2,202

–2,405

–2,611

Total assets ........................................
LIABILITIES:
2204 Non-Federal liabilities: Liabilities for
loan guarantees ..................................

..................

2999

Total liabilities ....................................

..................

4999

Total liabilities and net position ............

..................

RURAL HOUSING INSURANCE FUND GUARANTEED LOAN FINANCING
ACCOUNT
(Legislative proposal, not subject to PAYGO)

RURAL HOUSING INSURANCE FUND LIQUIDATING ACCOUNT

Program and Financing (in millions of dollars)

Identification code 12–4216–2–3–371

22.00
24.90

68.00

1996 actual

1997 est.

Identification code 12–4141–0–3–371

1998 est.

Budgetary resources available for obligation:
New financing authority (gross) .................................... ................... ...................
Unobligated balance available, end of year: Fund
balance ...................................................................... ................... ...................

1
1

89.00
90.00

–1

1997 est.

1998 est.

Obligations by program activity:
Capital investment:
00.02
Advances on behalf of borrowers .............................
47
110
100
00.03
Purchase of loans from investors ............................. ................... ...................
1
00.04
Purchases of certificates of beneficial ownership
8 ................... ...................
00.05
Collateral acquired by default ..................................
2
4
3
00.06
Judgements ................................................................
1
2
2
00.07
Unclassified recoverable costs ..................................
3 ................... ...................
00.91

Offsets:
Against gross financing authority and financing disbursements:
88.40
Offsetting collections (cash) from: Non-Federal
sources: guarantee fees ....................................... ................... ...................

1996 actual

01.02
01.03
01.05
01.06
01.07
01.08

Total capital investment .......................................
Operating expenses:
Interest on certificates of beneficial ownership .......
Interest on FFB borrowings .......................................
Interest on Treasury borrowings ................................
Interest credits on loans sold to investors ...............
Interest subsidy obligated for guaranteed loans
Undistributed charges ...............................................

116

106

1
1
1
2,482
1,891
1,274
1 ................... ...................
3
3
2
1 ................... ...................
3 ................... ...................

01.91

Total operating expenses ......................................

2,491

1,895

1,277

10.00

Total obligations ........................................................

2,552

2,011

1,383

22.00
22.70

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Balance of authority to borrow withdrawn ....................

3,006
–454

2,349
–339

1,498
–115

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

2,552
–2,552

2,011
–2,011

1,383
–1,383

60.05
60.47

New budget authority (gross), detail:
Appropriation (indefinite) ...............................................
Portion applied to debt reduction .................................

3,520
–514

5,200
–2,851

3,240
–1,742

3,006

2,349

1,498

2,621
–2,621

2,425
–2,425

2,288
–2,288

Status of Guaranteed Loans (in millions of dollars)
Identification code 12–4216–2–3–371

1996 actual

1997 est.

1998 est.

100

2150

100

Total guaranteed loan commitments ........................ ................... ...................

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year ............................................. ................... ................... ...................
2231 Disbursements of new guaranteed loans ...................... ................... ...................
70
2251 Repayments and prepayments ...................................... ................... ................... ...................
2290

Outstanding, end of year .......................................... ................... ...................

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................ ................... ...................

63.00
68.00
68.47
68.90

This account reflects the additional guaranteed loan level
requested under the legislative proposal to create a section
502 guaranteed housing loan program for the purpose of refinancing section 502 direct loans made in prior years. These
loans will be made when graduation to private credit cannot
be accomplished without the provision of the Agency’s guarantee.
As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from guaranteed loan commitments
made in 1992 and beyond. The amounts in this account are
a means of financing and are not included in the budget
totals.

70.00

Appropriation (total) ..................................................
Spending authority from offsetting collections:
Offsetting collections (cash) .....................................
Portion applied to debt reduction .............................

Spending authority from offsetting collections
(total) ................................................................ ................... ................... ...................
Total new budget authority (gross) ..........................

3,006

2,349

1,498

1,054
95

594
418

255
465

72.99
73.10
73.20
73.40

74.47
74.90

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts ..................................
Unpaid obligations, end of year:
Obligated balance:
Authority to borrow ...............................................
Fund balance ........................................................

74.99

Total unpaid obligations, end of year ..................

1,149
1,012
720
2,552
2,011
1,383
–2,683
–2,303
–1,557
–6 ................... ...................

594
418

255
465

140
406

1,012

720

546

RURAL BUSINESS-COOPERATIVE SERVICE
Federal Funds

DEPARTMENT OF AGRICULTURE

86.97
86.98
87.00

1,984
699

1,776
527

2,683

2,303

1,262
295
1,557

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Non-Federal sources:
88.40
Repayments of loans and advances ................
88.40
Proceeds from sale of acquired property .........
88.40
Payments on judgments ...................................
88.40
Interest payments from borrowers ...................
88.40
Recapture of subsidies ....................................
88.40
Fees and other revenue ....................................
88.40
Occupancy surcharges collected ......................
88.40
Undistributed receipts ......................................

–1,310
–1,208
–1,158
–66
–55
–54
–6
–6
–6
–1,115
–1,033
–954
–109
–115
–108
–5
–5
–5
–3
–3
–3
–7 ................... ...................

88.90

–2,621

Total, offsetting collections (cash) ..................

–2,425

–2,288

1201
1206

1601
1602
1603
1604
1606
1699
1701
1703

385
62

–76
–122

–790
–731

1799

Status of Direct Loans (in millions of dollars)
1996 actual

Identification code 12–4141–0–3–371

1997 est.

1998 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
Disbursements:
1231
Direct loan disbursements ........................................
1232
Purchase of loans assets from the public ...............
1251 Repayments: Repayments and prepayments .................
1261 Adjustments: Capitalized interest .................................
Write-offs for default:
1263
Direct loans ...............................................................
1264
Other adjustments, net .............................................

2
1 ...................
1 ...................
1
–1,298
–1,208
–1,158
38
35
31
–103
–130

–97
–40

–91
–41

1290

22,185

20,876

19,618

Outstanding, end of year ..........................................

1704

23,675

22,185

20,876

Status of Guaranteed Loans (in millions of dollars)

1803
1901

Non-Federal assets:
Investments in non-Federal securities,
net ..................................................
Receivables, net ..................................
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
Direct loans, gross ..............................
Interest receivable ..............................
Allowance for estimated uncollectible
loans and interest (–) ....................
Direct loans and interest receivable,
net ..................................................
Foreclosed property .............................
Value of assets related to direct
loans ..........................................
Guaranteed loans purchased from
holders ............................................
Allowance for estimated uncollectible
loans and interest (–) ....................
Defaulted guaranteed loans and interest receivable, net .....................
Value of assets related to loan
guarantees .................................
Other Federal assets:
Property, plant and equipment, net
Other assets ........................................

Total assets ........................................
LIABILITIES:
Federal liabilities:
2101
Accounts payable ................................
2102
Interest payable ..................................
2103
Debt .....................................................
2104
Resources payable to Treasury ...........
Non-Federal liabilities:
2201
Accounts payable ................................
2202
Interest payable ..................................
2203
Debt .....................................................
2207
Other ...................................................

219

..................
..................

23,675
223

22,185
203

20,876
195

19,618
174

–9,891

–8,621

–8,114

–7,622

14,007
80

13,767
65

12,957
64

12,170
59

14,087

13,832

13,021

12,229

..................

–1

..................

2
9,024

..................
5,693

..................
895

..................
..................

23,208

19,943

14,381

12,635

1
1,111
21,940
..................

1
979
18,805
..................

1
693
13,530
..................

1
519
9,500
2,460

10
1
19
126

11
1
11
135

10
1
11
135

9
1
10
135

1999

2999

2210
2251
2264

2290

Outstanding, end of year ..........................................

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

1997 est.

14,381

12,635

Total liabilities and net position ............

23,208

19,943

14,381

12,635

30
–2
–1

Identification code 12–4141–0–3–371

25.2
33.0
41.0
43.0

Other services ................................................................
Investments and loans ..................................................
Grants, subsidies, and contributions ............................
Interest and dividends ...................................................

99.9

Total obligations ........................................................

1995 actual

1996 actual

Object Classification (in millions of dollars)
1996 actual

1998 est.

Revenue ...................................................
Expense ....................................................

1,245
–2,975

2,484
–2,670

2,039
–2,080

1,882
–1,468

0109

Net income or loss (–) ............................

–1,730

–186

–41

414

Balance Sheet (in millions of dollars)
1995 actual

1996 actual

1997 est.

1998 est.

418

465

406

..................

1997 est.

1998 est.

3 ................... ...................
61
116
106
3
3
2
2,485
1,892
1,275
2,552

2,011

1,383

RURAL BUSINESS-COOPERATIVE SERVICE
Federal Funds
General and special funds:
SALARIES

1997 est.

0101
0102

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................

19,943

36
32
–2
–2
–2 ...................

Statement of Operations (in millions of dollars)

Identification code 12–4141–0–3–371

23,208

1998 est.

As required by the Federal Credit Reform Act of 1990,
this account records, for this program, all cash flows to and
from the Government resulting from direct loans obligated
and loan guarantees committed prior to 1992. New loan activity in 1992 and beyond (including credit sales of acquired
property that resulted from obligations or commitments in
any year) is recorded in corresponding program and financing
accounts.

Identification code 12–4141–0–3–371

Total liabilities ....................................

4999

1996 actual

Identification code 12–4141–0–3–371

AND

EXPENSES

For necessary expenses of the Rural Business-Cooperative Service,
including administering the programs authorized by the Consolidated
Farm and Rural Development Act, as amended; section 1323 of the
Food Security Act of 1985; the Cooperative Marketing Act of 1926;
for activities relating to the marketing aspects of cooperatives, including economic research findings, as authorized by the Agricultural
Marketing Act of 1946; for activities with institutions concerning
the development and operation of agricultural cooperatives; and cooperative agreements; ø$25,680,000¿ $27,482,000: Provided, That this
appropriation shall be available for employment pursuant to the second sentence of 706(a) of the Organic Act of 1944, and not to exceed
$260,000 may be used for employment under 5 U.S.C. 3109. (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)

220

RURAL BUSINESS-COOPERATIVE SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
SALARIES

AND

Personnel Summary

EXPENSES—Continued

Identification code 12–1903–0–1–452

1996 actual

Identification code 12–1903–0–1–452

Program and Financing (in millions of dollars)
1997 est.

1998 est.

Obligations by program activity:
00.01 Direct program ...............................................................
01.01 Reimbursable program ..................................................

8
20

25
1

27
4

10.00

Total obligations ........................................................

22.00
22.30

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Unobligated balance expiring ........................................

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

..............................
99
and holiday hours ...................

..............................
and holiday hours

1997 est.

328
3

1998 est.

296
3

232
8
38
3 ................... ...................

29
26
31
–1 ................... ...................

øRURAL BUSINESS-COOPERATIVE ASSISTANCE PROGRAM¿
28
–28

26
–26

31
–31

70.00

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance ............................................................. ...................
73.10 New obligations .............................................................
28
73.20 Total outlays (gross) ......................................................
–20
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................
8

8
26
–25

9
31
–29

18
6
1

19
7
3

Total new budget authority (gross) ..........................

72.90

86.90
86.93
86.97
87.00

Outlays (gross), detail:
Outlays from new current authority ..............................
1
Outlays from current balances ...................................... ...................
Outlays from new permanent authority .........................
19
Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–20

–1

–4

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

9
1

25
24

27
25

89.00
90.00

ø(INCLUDING

TRANSFERS OF FUNDS)¿

øFor the cost of direct loans, loan guarantees, and grants, as authorized by 7 U.S.C. 1926, 1928, and 1932, except for 381E, 381H,
381N of the Consolidated Farm and Rural Development Act,
$51,400,000, to remain available until expended, for direct loans and
loan guarantees for business and industry assistance, rural business
grants, rural cooperative development grants, and rural business opportunity grants of the Rural Business-Cooperative Service: Provided,
That the cost of direct loans and loan guarantees shall be as defined
in section 502 of the Congressional Budget Act of 1974, as amended:
Provided further, That $500,000 shall be available for grants to qualified nonprofit organizations as authorized under section 310B(c)(2)
of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932):
Provided further, That the amounts appropriated shall be transferred
to loan program and grant accounts as determined by the Secretary:
Provided further, That, of the total amount appropriated, not to exceed $3,000,000 shall be available for cooperative development: Provided further, That, of the total amount appropriated, not to exceed
$148,000 shall be available for the cost of direct loans, loan guarantees, and grants to be made available for business and industry
loans for empowerment zones and enterprise communities as authorized by Public Law 103-66 and rural development loans for
empowerment zones and enterprise communities as authorized by
title XIII of the Omnibus Budget Reconciliation Act of 1993: Provided
further, That if such funds are not obligated for empowerment zones
and enterprise communities by June 30, 1997, they remain available
for other authorized purposes under this head.¿ (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 1997.)
Program and Financing (in millions of dollars)

The Secretary’s reorganization plan established the Rural
Business-Cooperative Service (RBS). RBS includes programs
from the former Rural Development Administration, rural development programs from the former Rural Electrification Administration, and the Agricultural Cooperative Service. This
Agency delivers loan and grant programs and technical assistance to cooperatives and rural businesses.

Identification code 12–1905–0–1–452

40.00
41.00

1996 actual

1997 est.

1998 est.

51 ...................
–51 ...................

43.00

Appropriation (total) .................................................. ................... ................... ...................

89.00
90.00

Object Classification (in millions of dollars)
Identification code 12–1903–0–1–452

11.1
11.3
11.5
11.9
12.1
21.0
23.2
23.3
25.2

1996 actual

Direct obligations:
Personnel compensation:
Full-time permanent .............................................
4
Other than full-time permanent ........................... ...................
Other personnel compensation ............................. ...................
Total personnel compensation .........................
4
Civilian personnel benefits .......................................
1
Travel and transportation of persons ....................... ...................
Rental payments to others ........................................ ...................
Communications, utilities, and miscellaneous
charges ................................................................. ...................
Other services ............................................................
2

99.0
99.0
99.5

99.9

Total obligations ........................................................

1997 est.

1998 est.

13
1
1

11
1
1

15
4
1
1

13
3
3
1

1 ...................
3
6

7
25
20
1
1 ...................

26
3
2

In 1997, funding for direct and guaranteed business and
industry loans, rural business enterprise grants, rural cooperative development grants, and rural business opportunity
grants was provided under the Rural Business-Cooperative
Assistance Program and transferred to the Rural Business
and Industry Loans Program account, Rural Business Enterprise Grants account, Rural Cooperative Development Grants
account, and Rural Business Opportunity Grants account for
administration. In 1998, funding for these programs, with
the exception of the rural cooperative development grants,
is requested to be appropriated to the Rural Community Advancement Program account. Funding for the rural cooperative development grants is requested to be appropriated to
the Rural Cooperative Development Grants account.

RURAL BUSINESS-COOPERATIVE SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
SALARIES

AND

EXPENSES

Program and Financing (in millions of dollars)
Identification code 12–3400–0–1–452

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.20 Total outlays (gross) ......................................................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................

1996 actual

1997 est.

1998 est.

72.90

17
–10

7
–4

3
–3

3 ...................

86.98

Outlays (gross), detail:
Outlays from permanent balances ................................

89.00
90.00

221

corporations and institutions of higher education to fund the
establishment and operation of centers for rural cooperative
development. The primary purpose of the centers is the improvement of economic conditions of rural areas through the
development of new cooperatives and improving operations
of existing cooperatives. RBS can fund up to 75 percent of
any project and associated administrative costs and requires
at least a 25 percent matching share from the applicant which
must be from non-Federal sources.
The amount for Appropriate Technology Transfer to Rural
Areas (ATTRA) program was first authorized by the Food
Security Act of 1985. The program encourages agricultural
producers to adopt sustainable agricultural practices.

LOCAL TECHNICAL ASSISTANCE

Beginning in 1995, programs and services formerly provided
by the Rural Development Administration are included in
the Rural Utilities Service, the Rural Housing Service, and
the Rural Business-Cooperative Service.

AND

PLANNING GRANTS

Program and Financing (in millions of dollars)
Identification code 12–1901–0–1–452

1996 actual

1997 est.

1998 est.

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................ ...................

1 ...................

For rural cooperative development grants authorized under section
310B(e) of the Consolidated Farm and Rural Development Act, as
amended (7 U.S.C. 1932), $3,000,000, of which up to $1,300,000 may
be available for cooperative agreements for appropriate technology
transfer for rural areas program.

22.00
23.95

1 ...................
–1 ...................

Program and Financing (in millions of dollars)

42.00

New budget authority (gross), detail:
Transferred from other accounts ................................... ...................
...................

1 ...................
1 ...................

73.10

Change in unpaid obligations:
New obligations ............................................................. ...................

1 ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ...................
1 ...................
Outlays ........................................................................... ................... ................... ...................

RURAL COOPERATIVE DEVELOPMENT GRANTS

Identification code 12–1900–0–1–452

1996 actual

1997 est.

1998 est.

00.01
00.02

Obligations by program activity:
Rural cooperative development grants ..........................
Appropriate technology program ....................................

1
1

2
1

10.00

Total obligations (object class 41.0) ........................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

2
–2

3
–3

New budget authority (gross), detail:
40.00 Appropriation ..................................................................
2 ...................
3
42.00 Transferred from other accounts ................................... ...................
3 ...................
43.00

Appropriation (total) ..................................................

70.00

Total new budget authority (gross) ..........................

2
2
–2

2
3
–3

72.40

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

1
1

1
2

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

2
2

3
3

Grants for rural technology and cooperative development
were authorized under section 310B(f) of the Consolidated
Farm and Rural Development Act and were repealed by Public Law 104–127, April 4, 1996. These grants were made
available in 1996. Grants for rural cooperative development
were authorized under section 310B(e) of the Consolidated
Farm and Rural Development Act by Public Law 104–127,
April 4, 1996. These grants are made available to nonprofit

In 1996, no funding was provided for local technical assistance and planning grants. The Federal Agriculture Improvement and Reform Act of 1996, Public Law 104–127, repealed
the grant program and replaced it with the rural business
opportunity grant program. This account reflects the funding
for a rural business opportunity grant program since no local
technical assistance and planning grants were ever made.
This grant program, authorized through section 306(a)(11)
of the Consolidated Farm and Rural Development Act, as
amended, is designed to assist in the economic development
of rural areas by providing technical assistance for business
development and economic development planning. Grant
funds may be used to identify and analyze business opportunities that would use local economic and human resources; provide technical assistance to existing or prospective rural entrepreneurs; establish business support centers and otherwise
assist in the creation of new rural businesses; and, to conduct
regional, community and local economic development planning
and coordination, and leadership development.
These grants are designed to stimulate economic development and rural employment while challenging State, local,
and private sources to invest in rural economic development
activities thus allowing program grant funds to reach a broader range of rural economic development efforts.
In 1998, the rural business opportunity grant program is
included in the Rural Community Advancement Program. The
appropriation request for the Rural Community Advancement
Program also requests that all balances be transferred from
this account to the Rural Community Advancement Program
account.

222

RURAL BUSINESS-COOPERATIVE SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
68.90

Spending authority from offsetting collections
(total) ................................................................

Total new budget authority (gross) ..........................

................... ...................
...................
20
...................
–2

18
11
–8

...................

Outlays (gross), detail:
Outlays from new permanent authority ......................... ...................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources
–45
88.95 Change in orders on hand from Federal sources ......... ...................

–2
–18

–8
–3

General and Special Funds—Continued
RURAL BUSINESS ENTERPRISE GRANTS

70.00

Program and Financing (in millions of dollars)

Identification code 12–2065–0–1–452

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Total obligations (object class 41.0) ............................

41 ...................

Budgetary resources available for obligation:
22.00 New budget authority (gross) ........................................
23.95 New obligations .............................................................

45
–45

41 ...................
–41 ...................

10.00

40.00
42.00

New budget authority (gross), detail:
Appropriation ..................................................................
45 ................... ...................
Transferred from other accounts ................................... ...................
41 ...................

43.00

Appropriation (total) ..................................................

41 ...................

70.00

Total new budget authority (gross) ..........................

41 ...................

86.97

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
70
78
74
73.10 New obligations .............................................................
45
41 ...................
73.20 Total outlays (gross) ......................................................
–37
–45 ...................
73.31 Obligated balance transferred to other accounts ......... ................... ...................
–74
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
78
74 ...................
72.40

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

5
32

5 ...................
40 ...................

87.00

Total outlays (gross) .................................................

45 ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

45
37

41 ...................
45 ...................

This grant program is authorized under sections 310(B)(c)
and 310B(j) of the Consolidated Farm and Rural Development
Act, as amended. These grants enable public and private nonprofit organizations to operate rural economic development
projects. In general, these grants provide investments in the
human and physical resources of rural communities. Past
projects have enabled rural communities to acquire and develop land, create technical assistance programs, encourage
small business growth and create revolving loan funds.
In 1998, funding is requested to be appropriated for the
rural business enterprise grants to the Rural Community Advancement Program and all balances be transferred from this
account to the Rural Community Advancement Program account.

Program and Financing (in millions of dollars)

10.00

1996 actual

Obligations by program activity:
Total obligations ............................................................ ...................

This grant program is authorized under section 313 of the
Rural Electrification Act, as amended, and provides funds
for the purpose of promoting rural economic development and
job creation projects, including funding for project feasibility
studies, start-up costs, incubator projects and other expenses
for the purpose of fostering rural development.
Funding for this program is provided from the interest differential on Rural Utilities Service borrowers’ cushion of credit accounts. In 1998, funding in this account will be used
for both grants and direct loans. The budget authority necessary to support the loans will be transferred to the Rural
Economic Development Loans Program account.
Object Classification (in millions of dollars)
1996 actual

Identification code 12–3105–0–1–452

41.0
99.0
99.9

Direct obligations: Grants, subsidies, and contributions ........................................................................... ...................
Reimbursable obligations: Subtotal, reimbursable obligations ....................................................................... ...................
Total obligations ........................................................ ...................

1997 est.

1998 est.

Credit accounts:
RURAL BUSINESS

AND

INDUSTRY LOANS PROGRAM ACCOUNT

Unavailable Collections (in millions of dollars)
Identification code 12–1902–0–1–452

1996 actual

1997 est.

1998 est.

Balance, start of year:
Balance, start of year .................................................... ...................
2
2
Receipts:
02.01 Downward reestimates and negative subsidies ............
2 ................... ...................
01.99

RURAL ECONOMIC DEVELOPMENT GRANTS

Identification code 12–3105–0–1–452

89.00
90.00

1997 est.

04.00
07.99

1998 est.

Total: Balances and collections ....................................
Total balance, end of year ............................................

2
2

Program and Financing (in millions of dollars)

Identification code 12–1902–0–1–452

1996 actual

1997 est.

1998 est.

21.40

23.90
23.95
24.40

Total budgetary resources available for obligation
45
New obligations ............................................................. ...................
Unobligated balance available, end of year:
Uninvested balance ...................................................
45

New budget authority (gross), detail:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
45
68.10
Change in orders on hand from Federal sources ...................

45
11

65
–20

56
–11

00.02
00.09

Obligations by program activity:
Guaranteed loan subsidy ...............................................
Administrative expenses ................................................

10.00

Total obligations ........................................................

22.00
22.30

45
20

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Unobligated balance expiring ........................................

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

2
18

8
3

6
6 ...................
15 ................... ...................
21

6 ...................

21
6 ...................
–1 ................... ...................
20
–21

6 ...................
–6 ...................

RURAL BUSINESS-COOPERATIVE SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE

40.00
42.00

New budget authority (gross), detail:
Appropriation ..................................................................
21 ................... ...................
Transferred from other accounts ................................... ...................
6 ...................

43.00

Appropriation (total) ..................................................

6 ...................

70.00

Total new budget authority (gross) ..........................

99.9

Total obligations ........................................................

6 ...................

RURAL BUSINESS

AND

223

6 ...................

INDUSTRY DIRECT LOANS FINANCING
ACCOUNT

Program and Financing (in millions of dollars)

Change in unpaid obligations:
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................

21
–20

6 ...................
–6 ...................

86.90

Outlays (gross), detail:
Outlays from new current authority ..............................

6 ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

21
20

6 ...................
6 ...................

1996 actual

Identification code 12–4223–0–3–452

00.01
00.03

1997 est.

Obligations by program activity:
Direct loans .................................................................... ...................
50
Interest on Treasury borrowing ...................................... ................... ...................

1998 est.

50
1

10.00

Total obligations ........................................................ ...................

22.00
23.95

50
–50

51
–51

67.15

New financing authority (gross), detail:
Authority to borrow (indefinite) ..................................... ...................

................... ...................
...................
50
...................
–12

38
51
–33

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 12–1902–0–1–452

1996 actual

1997 est.

1998 est.

Direct loan levels supportable by subsidy budget authority:
1150 Direct loan levels ........................................................... ...................

50 ...................

1159

50 ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Obligated balance .....................................................
73.10 New obligations .............................................................
73.20 Total financing disbursements (gross) .........................
74.90 Unpaid obligations, end of year: Obligated balance:
Obligated balance .....................................................
87.00 Total financing disbursements (gross) .........................
72.90

0.51 ...................

1329

0.51 ...................

Weighted average subsidy rate .................................

0.00

89.00
90.00

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Loan guarantee levels ...................................................

638
638

688 ...................

0.00

0.93 ...................

38
12

55
33

50
12

51
33

688 ...................

2159

...................
...................

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Subsidy rate ...................................................................

Status of Direct Loans (in millions of dollars)
1996 actual

Identification code 12–4223–0–3–452

1997 est.

1998 est.

Weighted average subsidy rate .................................
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority ...............................................

0.00

0.93 ...................

6
6

6 ...................

2349

Total subsidy outlays ................................................

6 ...................

3510
3590

Administrative expense data:
Budget authority ............................................................
Outlays ...........................................................................

6 ...................

Total subsidy budget authority .................................
Guaranteed loan subsidy outlays:
2340 Subsidy outlays ..............................................................

1150

2329

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ...................

2339

1290
15 ................... ...................
15 ................... ...................

Business and industry loans are made to public, private,
or cooperative organizations, Indian tribes or tribal groups,
corporate entities, or individuals for the purpose of improving
the economic climate in rural areas.
As required by the Federal Credit Reform Act of 1990,
this account records, for this program, the subsidy costs associated with the direct loans obligated and loan guarantees
committed in 1992 and beyond, as well as administrative
expenses of this program. The subsidy amounts are estimated
on a present value basis; the administrative expenses are
estimated on a cash basis.
In 1998 funding for the direct and guaranteed business
and industry loan programs is requested to be appropriated
to the Rural Community Advancement Program. Funding for
salaries and expenses associated with this program is requested to be appropriated to the Rural Business-Cooperative
Service Salaries and Expenses account.
Object Classification (in millions of dollars)
Identification code 12–1902–0–1–452

25.3
41.0

Purchases of goods and services from Government
accounts ....................................................................
Grants, subsidies, and contributions ............................

1210
1231
1251

1996 actual

Cumulative balance of direct loans outstanding:
Outstanding, start of year ............................................. ................... ...................
12
Disbursements: Direct loan disbursements ................... ...................
12
33
Repayments: Repayments and prepayments ................. ................... ................... ...................
Outstanding, end of year .......................................... ...................

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond. The amounts in this account are a means of
financing and are not included in the budget totals. Loans
made prior to 1992 are recorded in the Rural Development
Insurance Fund Liquidating Account.
Business and industry loans are made to public, private,
or cooperative organizations, Indian tribes or tribal groups,
corporate entities, or individuals for the purpose of improving
the economic climate in rural areas.
Balance Sheet (in millions of dollars)
Identification code 12–4223–0–3–452

1995 actual

1996 actual

1997 est.

ASSETS:
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1402
Interest receivable ..............................
1405
Allowance for subsidy cost (–) ...........

..................
..................
..................

12
..................
–2

45
1
–8

1499
1997 est.

Total direct loan obligations ..................................... ...................

Net present value of assets related
to direct loans ...........................

1998 est.

..................

1998 est.

1999

6
6 ...................
15 ................... ...................

Total assets ........................................
LIABILITIES:
2104 Federal liabilities: Resources payable to
Treasury ...............................................

224

RURAL BUSINESS-COOPERATIVE SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

Credit accounts—Continued
RURAL BUSINESS

AND INDUSTRY DIRECT
ACCOUNT—Continued

2299

LOANS FINANCING

Balance Sheet (in millions of dollars)—Continued
Identification code 12–4223–0–3–452

1995 actual

1996 actual

2999

Total liabilities ....................................

..................

4999

Total liabilities and net position ............

..................

RURAL BUSINESS

AND

1997 est.

1998 est.

INDUSTRY GUARANTEED LOANS FINANCING
ACCOUNT

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

579

949

1,330

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from guaranteed loans committed
in 1992 and beyond. The amounts in this account are a means
of financing and are not included in the budget totals. Loans
made prior to 1992 are recorded in the Rural Development
Insurance Fund Liquidating Account.
This account finances loan guarantee commitments for industrial development in rural areas.
Balance Sheet (in millions of dollars)

Program and Financing (in millions of dollars)
1995 actual

1996 actual

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................

1999

Total assets ........................................
LIABILITIES:
2204 Non-Federal liabilities: Liabilities for
loan guarantees ..................................

2999

Total liabilities ....................................

4999

Total liabilities and net position ............

Identification code 12–4227–0–3–452
Identification code 12–4227–0–3–452

00.01
00.03
00.06

Obligations by program activity:
Default claims ...............................................................
Investment in secondary market ...................................
Subsidy reestimate paid to receipt account .................

10.00

Total obligations ........................................................

1996 actual

1997 est.

1998 est.

1
1
2
2
8
15
1 ................... ...................
4

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ...................................................................... ...................
28
33
22.00 New financing authority (gross) ....................................
12
14
13
22.22 Unobligated balance transferred from other accounts
20 ................... ...................
21.90

23.90
23.95
24.90

32
–4

42
–9

46
–17

New financing authority (gross), detail:
68.00 Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

4
–4
4

9
–9
9

17
–17
17

–5
–2
–5

–6
3
–11

–7
3
–9

–12

–14

–13

73.10
73.20
87.00

88.90

89.00
90.00

Total, offsetting collections (cash) ..................

1996 actual

1997 est.

1998 est.

638

688

610

2150
2199

638
511

688
551

610
488

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................
433
723
1,185
2231 Disbursements of new guaranteed loans ......................
339
543
609
2251 Repayments and prepayments ......................................
–48
–80
–131
Adjustments:
2263
Terminations for default that result in claim payments ....................................................................
–1
–1
–2
2264
Other adjustments, net ............................................. ................... ................... ...................
2290

Outstanding, end of year ..........................................

RURAL DEVELOPMENT LOAN FUND PROGRAM ACCOUNT
For the cost of direct loans, ø$17,270,000¿ $16,888,000, as authorized by the Rural Development Loan Fund (42 U.S.C. 9812(a)): Provided, That such costs, including the cost of modifying such loans,
shall be as defined in section 502 of the Congressional Budget Act
of 1974: Provided further, That these funds are available to subsidize
gross obligations for the principal amount of direct loans of
ø$37,544,000¿ $35,000,000: Provided further, That through June 30,
ø1997¿ 1998, of the total amount appropriated ø$3,345,000¿
$3,618,750 shall be available for the cost of direct loans, for
empowerment zones and enterprise communities, as authorized by
title XIII of the Omnibus Budget Reconciliation Act of 1993, to subsidize gross obligations for the principal amount of direct loans,
ø$7,246,000¿ $7,500,000.
In addition, for administrative expenses to carry out the direct loan
programs, $3,482,000 shall be transferred to and merged with the
appropriation for ‘‘Salaries and Expenses’’. (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 12–2069–0–1–452

1996 actual

1997 est.

1998 est.

723

1,185

1,661

00.01
00.06
00.09

Obligations by program activity:
Direct loan subsidy ........................................................
Reestimates of direct loan subsidy ...............................
Administrative expense ..................................................

10.00

Status of Guaranteed Loans (in millions of dollars)

Total guaranteed loan commitments ........................
Guaranteed amount of guaranteed loan commitments

1998 est.

(INCLUDING TRANSFERS OF FUNDS)

Identification code 12–4227–0–3–452

1997 est.

Total obligations ........................................................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

26
–26

17
–17

20
–20

70.00

Total new budget authority (gross) ..........................

84
26

74
17

55
20

22
17
17
2 ................... ...................
2 ...................
3

2 ................... ...................

72.40

RURAL BUSINESS-COOPERATIVE SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
73.20
73.40
74.40

Total outlays (gross) ......................................................
Adjustments in expired accounts ..................................
Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

86.90
86.93
86.97

87.00

Total outlays (gross) .................................................

–35
–37
–28
–1 ................... ...................
74

2
1
4
31
36
24
2 ................... ...................
35

26
35

36
–10

38
–19

28
–8

Spending authority from offsetting collections
(total) ................................................................

Total new financing authority (gross) ......................

Change in unpaid obligations:
Unpaid obligations, start of year:
72.90
Obligated balance: Obligated balance .....................
72.95
Receivables from program account ..........................

69
84

59
74

48
55

68.90
70.00

17
37

20
28

72.99
73.10
73.20
73.40

1996 actual

1997 est.

Total unpaid obligations, start of year ................
New obligations .............................................................
Total financing disbursements (gross) .........................
Adjustments in expired accounts ..................................
Unpaid obligations, end of year:
Obligated balance: Obligated balance .....................
Receivables from program account ..........................

153
133
103
43
42
42
–62
–72
–53
–1 ................... ...................

74.90
74.95

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 12–2069–0–1–452

225

59
74

48
55

45
47

74.99
87.00

Total unpaid obligations, end of year ..................
Total financing disbursements (gross) .........................

133
62

103
72

92
53

1998 est.

Direct loan levels supportable by subsidy budget authority:
1150 Direct loan levels ...........................................................

1159

Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Subsidy rate ...................................................................

59.50

46.51

48.25

1329

59.50

46.51

48.25

Weighted average subsidy rate .................................
Direct loan subsidy budget authority:
1330 Subsidy budget authority ...............................................

1339

Total subsidy budget authority .................................
Direct loan subsidy outlays:
1340 Subsidy outlays ..............................................................

1349

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Payments from program account .........................
–34
–37
–25
88.25
Interest on uninvested funds ...............................
–2 ................... ...................
88.40
Non-Federal sources ............................................. ...................
–1
–3

Total subsidy outlays ................................................

1 ...................
1 ...................

3
3

88.90
88.95

Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............

–36
10

–38
19

–28
8

89.00
90.00

17
26

24
34

22
25

Status of Direct Loans (in millions of dollars)

This account finances loans to intermediary borrowers, who
in turn relend the funds to small rural businesses, community
development corporations, and other organizations for the
purpose of improving economic opportunities in rural areas.
As required by the Federal Credit Reform Act of 1990,
this account records, for this program, the subsidy costs associated with the direct loans obligated in 1992 and beyond,
as well as administrative expenses of this program. The subsidy amounts are estimated on a present value basis; the
administrative expenses are estimated on a cash basis.

1210
1231
1251

Object Classification (in millions of dollars)

1290

Identification code 12–2069–0–1–452

1996 actual

1997 est.

1996 actual

Identification code 12–4219–0–3–452

1997 est.

1998 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans .............................................

1150

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
74
Disbursements: Direct loan disbursements ...................
57
Repayments: Repayments and prepayments ................. ...................

131
67
–1

197
46
–2

197

241

Total direct loan obligations .....................................

Outstanding, end of year ..........................................

131

1998 est.

RURAL DEVELOPMENT LOAN FUND DIRECT LOAN FINANCING
ACCOUNT

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond. The amounts in this account are a means of
financing and are not included in the budget totals.
This account finances loans to intermediary borrowers, who
in turn relend the funds to small rural businesses, community
development corporations, or other organizations for the purpose of improving economic opportunities in rural areas.

Program and Financing (in millions of dollars)

25.3

Balance Sheet (in millions of dollars)

41.0

Purchases of goods and services from Government
accounts ....................................................................
Grants, subsidies, and contributions ............................

99.9

Total obligations ........................................................

Identification code 12–4219–0–3–452

1 ...................
25
17

3
17

1996 actual

1997 est.

1998 est.

00.01
00.03

Obligations by program activity:
Direct loans ....................................................................
Interest on Treasury borrowing ......................................

38
5

37
5

35
7

10.00

Total obligations ........................................................

22.00
23.95

Budgetary resources available for obligation:
New financing authority (gross) ....................................
New obligations .............................................................

43
–43

43
–42

42
–42

Identification code 12–4219–0–3–452

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1402
Interest receivable ..............................
1405
Allowance for subsidy cost (–) ...........

1995 actual

1996 actual

1997 est.

1998 est.

74
..................
–39

131
1
–71

197
1
–103

241
1
–122

RURAL BUSINESS-COOPERATIVE SERVICE—Continued
Federal Funds—Continued

226

THE BUDGET FOR FISCAL YEAR 1998

Credit accounts—Continued

1995 actual

1996 actual

120

Total assets ........................................
LIABILITIES:
Federal liabilities:
2104
Resources payable to Treasury ...........
2105
Other ...................................................

145

152

158

174

61
84

78
74

103
55

127
47

Loans from the Rural Development Loan Fund are made
to intermediary borrowers (i.e., small investment groups), who
in turn relend the funds to small rural businesses, community
development corporations, or other organizations for the purpose of improving economic opportunities in rural areas.
Through the use of local intermediaries, this program is able
to serve small-scale enterprises and give preference to those
communities with the greatest need.
As required by the Federal Credit Reform Act of 1990,
this account records, for this program, all cash flows to and
from the Government resulting from direct loans obligated
prior to 1992. New loan activity in 1992 and beyond is recorded in corresponding program and financing accounts.

2999

Total liabilities ....................................

145

152

158

174

Statement of Operations (in millions of dollars)

4999

Total liabilities and net position ............

145

152

158

174

RURAL DEVELOPMENT LOAN FUND DIRECT LOAN FINANCING
ACCOUNT—Continued
Balance Sheet (in millions of dollars)—Continued
Identification code 12–4219–0–3–452

1499

Net present value of assets related
to direct loans ...........................

1999

1997 est.

1998 est.

Identification code 12–4233–0–3–452

1995 actual

1996 actual

1997 est.

1998 est.

0101
0102

1
–1

1
6

1
..................

0109

RURAL DEVELOPMENT LOAN FUND LIQUIDATING ACCOUNT

Revenue ...................................................
Expense ....................................................
Net income or loss (–) ............................

..................

Unavailable Collections (in millions of dollars)
Identification code 12–4233–0–3–452

Balance, start of year:
01.99 Balance, start of year ....................................................
03.00
04.00

Offsetting Collections ....................................................
Total: Balances and collections ....................................
Appropriation:
05.01 Unobligated balance returned to receipts .....................
07.99 Total balance, end of year ............................................

1996 actual

Balance Sheet (in millions of dollars)
1997 est.

1998 est.
Identification code 12–4233–0–3–452

3
10

2
9

1
7

–3
7

–3
6

–2
5

Program and Financing (in millions of dollars)
Identification code 12–4233–0–3–452

New budget authority (gross), detail:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.26
Spending authority from offsetting collections (balances) ...................................................................
68.27
Capital transfer to general fund ..............................
68.45
Portion not available for obligation (limitation on
obligations) ...........................................................

1996 actual

1997 est.

1998 est.

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1601
Direct loans, gross ..............................
1603
Allowance for estimated uncollectible
loans and interest (–) ....................
1604
Direct loans and interest receivable,
net ..................................................
1699

3
–6

3
–5

2
–5

–3

–2

Value of assets related to direct
loans ..........................................

1995 actual

1996 actual

1997 est.

1998 est.

14
..................

9
..................

5
..................

3
..................

–49

–42

–41

–1

Spending authority from offsetting collections
(total) ................................................................ ................... ................... ...................

Total assets ........................................
LIABILITIES:
2104 Federal liabilities: Resources payable to
Treasury ...............................................

2999
68.90

1999

Total liabilities ....................................

4999

Total liabilities and net position ............

72.90

10
–5

6
–3

3
–1

RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT

Outlays (gross), detail:
Outlays from permanent balances ................................

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

–6

–4

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

–6
–1

–4
–1

–4
–3

For the principal amount of direct loans, as authorized under section 313 of the Rural Electrification Act, as amended, for the purpose
of promoting rural economic development and job creation projects,
ø$12,865,000¿ $25,000,000.
For the cost of direct loans, including the cost of modifying loans
as defined in section 502 of the Congressional Budget Act of 1974,
ø$2,830,000. In addition, for administrative expenses necessary to
carry out the direct loan program, $654,000, which shall be transferred to and merged with the appropriation for ‘‘Salaries and Expenses.’’¿ up to $5,977,500, to be derived by transfer from interest
on the cushion of credit payments, as authorized by section 313 of
the Rural Electrification Act of 1936, as amended, to remain available
until expended. (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)

86.98

89.00
90.00

Status of Direct Loans (in millions of dollars)

(INCLUDING TRANSFERS OF FUNDS)

Program and Financing (in millions of dollars)
Identification code 12–4233–0–3–452

1996 actual

1997 est.

1998 est.
Identification code 12–3108–0–1–452

1210
1231
1251

85
3
–4

84
2
–4

82
1
–3

1290

Outstanding, end of year ..........................................

shown include advances on behalf of borrowers.

Obligations by program activity:
Direct Loan Subsidy .......................................................
Reestimates of direct loan subsidy ...............................
Administrative expenses subj. to limitation ..................

10.00
1 Amounts

00.01
00.05
00.09

Total obligations ........................................................

1996 actual

1997 est.

1998 est.

2
2
6
1 ................... ...................
1
1 ...................
4

RURAL BUSINESS-COOPERATIVE SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE

22.00
22.30

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Unobligated balance expiring ........................................

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

227

Object Classification (in millions of dollars)
5
3
6
–1 ................... ...................

Identification code 12–3108–0–1–452

3
–3

6
–6

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
4
3 ...................
42.00
Transferred from other accounts .............................. ................... ...................
6
43.00
60.05

Appropriation (total) .............................................
Permanent:
Appropriation (indefinite) ..........................................

70.00

Total new budget authority (gross) ..........................

86.90
86.93
86.97

87.00

Total outlays (gross) .................................................

25.3

1996 actual

1997 est.

1998 est.

41.0

4
–4

Purchases of goods and services from Government
accounts ....................................................................
Grants, subsidies, and contributions ............................

1
3

1 ...................
2
6

99.9

Total obligations ........................................................

RURAL ECONOMIC DEVELOPMENT DIRECT LOAN FINANCING ACCOUNT
Program and Financing (in millions of dollars)

1 ................... ...................
5

Identification code 12–4176–0–3–452

1998 est.

9
3

12
3

25
4

Total obligations ........................................................

3
15

3
29

14
–12

18
–15

32
–29

6
1

8
–1

9
3

Spending authority from offsetting collections
(total) ................................................................

Total new financing authority (gross) ......................

Change in unpaid obligations:
Unpaid obligations, start of year:
Obligated balance:
72.47
Authority to borrow ...............................................
72.90
Unpaid Obligations ...............................................
72.95
Receivables from program account ..........................

3
6
3

3
4
–4

4
3
–4

3
6
–3

10.00

21.90

1
1
1
2
3
2
1 ................... ...................
4

23.90
23.95
24.90

3
New financing authority (gross), detail:
Authority to borrow (indefinite) .....................................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.10
Receivables from program account ..........................
67.15

5
3

3
4

6
3

68.90

1996 actual

1997 est.

1998 est.

Direct loan levels supportable by subsidy budget authority:
1150 Direct loan levels ...........................................................

1159

Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Subsidy rate ...................................................................

28.48

22.93

23.91

1329

28.48

22.93

23.91

Total subsidy budget authority .................................
Direct loan subsidy outlays:
1340 Subsidy outlays ..............................................................

1349

Total subsidy outlays ................................................

3510
3590

Administrative expense data:
Budget authority ............................................................
Outlays ...........................................................................

1
1

1 ...................
1 ...................

1339

1997 est.

Obligations by program activity:
Direct Loans ...................................................................
Interest Expense .............................................................

70.00

Weighted average subsidy rate .................................
Direct loan subsidy budget authority:
1330 Subsidy budget authority ...............................................

1996 actual

00.01
00.02

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 12–3108–0–1–452

Rural economic development loans are made for the purpose
of promoting rural economic development and job creation
projects. Loans are made to electric and telecommunication
borrowers, who in turn finance rural development projects
in their service areas.
As required by the Federal Credit Reform Act of 1990,
this account records, for this program, the subsidy costs associated with the direct loans obligated in 1992 and beyond,
as well as administrative expenses of this program. The subsidy amounts are estimated on a present value basis; the
administrative expenses are estimated on a cash basis.
In 1998, funding for this program will be transferred to
this account from the cushion of credit payments program
in the Rural Electrification and Telephone Revolving Fund
Liquidating Account.

72.99
73.10
73.20

12
12
–10

74.47
74.90
74.95

Total unpaid obligations, start of year ................
New obligations .............................................................
Total financing disbursements (gross) .........................
Unpaid obligations, end of year:
Obligated balance:
Authority to borrow ...............................................
Unpaid Obligations ...............................................
Receivables from program account ..........................

74.99
87.00

Total unpaid obligations, end of year ..................
Total financing disbursements (gross) .........................

14
10

3 ...................
7
11
4
3
14
15
–16

14
29
–18

3 ................... ...................
7
11
18
4
3
6
14
16

24
18

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal Funds: Program Account ..........................
88.25
Interest on uninvested funds ...............................
88.40
Non-Federal sources: Repayment of Principal .....

–2
–4
–3
–1 ................... ...................
–3
–4
–6

88.90
88.95

Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............

–6
–1

–8
1

–9
–3

89.00
90.00

7
3

8
8

17
9

Status of Direct Loans (in millions of dollars)
Identification code 12–4176–0–3–452

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans .............................................

1996 actual

1997 est.

1998 est.

228

RURAL BUSINESS-COOPERATIVE SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources: Repayment of Principal ..........................

Credit accounts—Continued
RURAL ECONOMIC DEVELOPMENT DIRECT LOAN FINANCING
ACCOUNT—Continued
Status of Direct Loans (in millions of dollars)—Continued
1996 actual

Identification code 12–4176–0–3–452

1150

Total direct loan obligations .....................................

1997 est.

89.00
90.00

1998 est.

–2

Status of Direct Loans (in millions of dollars)
Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1231 Disbursements: Direct loan disbursements ...................
1251 Repayments: Repayments and prepayments .................
1290

Outstanding, end of year ..........................................

31
7
–3
35

35
13
–4

44
14
–6

31
–7

35
–8

44
–9

52
–8

Total assets ........................................
LIABILITIES:
Federal liabilities:
2104
Resources payable to Treasury ...........
2105
Other ...................................................

30
3

35
4

42
3

50
6

2999

Total liabilities ....................................

4999

Total liabilities and net position ............

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Program Account ............................
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1405
Allowance for subsidy cost (–) ...........
1499

Net present value of assets related
to direct loans ...........................

1999

1997 est.

1210
1231
1251
1290

1997 est.

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
8
Disbursements: Direct loan disbursements ................... ...................
Repayments: Repayments and prepayments .................
–1
Outstanding, end of year ..........................................

1998 est.

7
6
1 ...................
–2
–2

As required by the Federal Credit Reform Act of 1990,
this account records, for this program, all cash flows to and
from the Government resulting from direct loans obligated
prior to 1992. All new activity in this program is recorded
in corresponding program accounts and financing accounts.
Balance Sheet (in millions of dollars)

1995 actual

Identification code 12–4176–0–3–452

1996 actual

Identification code 12–3104–0–1–271

1998 est.

Identification code 12–3104–0–1–271

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................
1601 Net value of assets related to pre–1992
direct loans receivable and acquired
defaulted guaranteed loans receivable: Direct loans, gross ....................
1801 Other Federal assets: Cash and other
monetary assets ..................................
1999

1995 actual

1996 actual

..................

Total assets ........................................
LIABILITIES:
2104 Federal liabilities: Resources payable to
Treasury ...............................................

2999

1997 est.

1998 est.

Total liabilities ....................................
NET POSITION:
3300 Cumulative results of operations ............

..................

3999

Total net position ................................

..................

4999

Total liabilities and net position ............

RURAL ECONOMIC DEVELOPMENT LOANS LIQUIDATING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 12–3104–0–1–271

Budgetary resources available for obligation:
21.90 Unobligated balance available, start of year: Fund
balance ......................................................................
22.00 New budget authority (gross) ........................................
22.10 Resources available from recoveries of prior year obligations .......................................................................
23.90
24.90

Total budgetary resources available for obligation
Unobligated balance available, end of year: Fund
balance ......................................................................

New budget authority (gross), detail:
68.00 Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................

1996 actual

5
2

1997 est.

ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
CORPORATION REVOLVING FUND

1998 est.

7
2

9
2

1 ................... ...................
8

9
9

2
2

72.90

86.98

Outlays (gross), detail:
Outlays from permanent balances ................................

Program and Financing (in millions of dollars)

For necessary expenses to carry out the Alternative Agricultural
Research and Commercialization Act of 1990 (7 U.S.C. 5901–5908),
ø$7,000,000¿ $10,000,000 is appropriated to the alternative agricultural research and commercialization corporation revolving fund. (Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 1997.)

Identification code 12–4144–0–3–352

1996 actual

1997 est.

1998 est.

00.01
00.02

Obligations by program activity:
Administrative expense ..................................................
Program activity .............................................................

1
7

1
6

1
9

10.00

Total obligations ........................................................

1
2
4
1
2
2
–1 ................... ...................

1 ................... ...................
6
7
10

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

7
–8

7
–7

10
–10

–1

–2

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

FOREIGN AGRICULTURAL SERVICE
Federal Funds

7
8
–9

6
7
–8

5
10
–8

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

3
6

3
5

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

6
9

7
8

229

The Federal Agriculture Improvement Act of 1996 established the National Sheep Industry Improvement Center to
promote activities to strengthen and enhance production or
marketing of sheep and goat products in the United States.
The Center may provide loans or grants to eligible entities
to provide assistance to the industry for infrastructure development, business development, production, resource development, and market and environmental research. The 1996 Act
provided up to $20 million in mandatory funding for the establishment and operation of the Center and authorized additional discretionary funding of $30 million.

10
8

FOREIGN AGRICULTURAL SERVICE
Federal Funds

Funds support programs authorized by the Alternative Agricultural Research and Commercialization Act of 1990 (7
U.S.C. 5901 et seq.). This Act authorizes the provision of
assistance on a competitive basis to foster the development
and commercialization of new nonfood, nonfeed products derived from agricultural and forestry material and animal byproducts. Development of nontraditional uses provides an opportunity to improve U.S. competitiveness in foreign markets,
create development and employment opportunities in rural
areas, address environmental concerns and lower farm program costs. Programs are managed by the Alternative Agricultural Research and Commercialization Corporation. Program policy and oversight is provided by an eleven member
Board, eight of whom are private sector scientists, producers
and business experts.
In 1998, the corporation expects to participate in 22 new
investment partnerships, invest in 7 new businesses, create
1,700 new jobs, and have 8 products it has supported enter
the market.
Object Classification (in millions of dollars)
1996 actual

Identification code 12–4144–0–3–352

1997 est.

1998 est.

11.1
33.0
41.0

Personnel compensation: Full-time permanent .............
Investments and loans ..................................................
Grants, subsidies, and contributions ............................

1
4
3

1
4
2

1
4
5

99.9

Total obligations ........................................................

Personnel Summary
Identification code 12–4144–0–3–352

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

1996 actual

1997 est.

1998 est.

1996 actual

1997 est.

1998 est.

Total budgetary resources available for obligation
Unobligated balance available, end of year:
Uninvested balance ...................................................

New budget authority (gross), detail:
60.00 Appropriation ..................................................................

AND

GENERAL SALES MANAGER

(INCLUDING TRANSFERS OF FUNDS)

For necessary expenses of the Foreign Agricultural Service, including carrying out title VI of the Agricultural Act of 1954, as amended
(7 U.S.C. 1761–1768), market development activities abroad, and for
enabling the Secretary to coordinate and integrate activities of the
Department in connection with foreign agricultural work, including
not to exceed $128,000 for representation allowances and for expenses
pursuant to section 8 of the Act approved August 3, 1956 (7 U.S.C.
1766), ø$135,561,000¿ $150,942,000 to remain available until September 30, 1999, of which ø$3,231,000¿ $3,327,000 may be transferred
from the Export Loan Program account in this Act, and ø$1,035,000¿
$1,066,000 may be transferred from the Public Law 480 program
account in this Act and $10,000,000 shall be used for carrying out
activities authorized under section 1542(d) of the Food, Agriculture,
Trade and Conservation Act of 1990, as amended (7 U.S.C. 5622
note): Provided, That no CCC funds shall be used for carrying out
these activities: Provided further, That up to $3,000,000 shall be available in fiscal year 1999 for overseas inflation, subject to documentation
by USDA of actual overseas inflation and deflation: Provided further,
øProvided,¿ That the Service may utilize advances of funds, or reimburse this appropriation for expenditures made on behalf of Federal
agencies, public and private organizations and institutions under
agreements executed pursuant to the agricultural food production
assistance programs (7 U.S.C. 1736) and the foreign assistance programs of the International Development Cooperation Administration
(22 U.S.C. 2392).
None of the funds in the foregoing paragraph shall be available
to promote the sale or export of tobacco or tobacco products. (Agriculture, Rural Development, Food and Drug Administration and Related Agencies Appropriations Act, 1997.)

Identification code 12–2900–0–1–352

Obligations by program activity:
Direct program:
00.01
Strategic Outreach and Market Intelligence .............
00.02
Market Development and Promotion .........................
00.03
Market Access ...........................................................
00.04
Price Credit and Risk Assistance .............................
00.05
Long-term Market Development ................................

Program and Financing (in millions of dollars)

23.90
24.40

FOREIGN AGRICULTURAL SERVICE

Program and Financing (in millions of dollars)
7

NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER REVOLVING
FUND

Identification code 12–4202–0–3–452

General and special funds:

20 ................... ...................

Net budget authority and outlays:
89.00 Budget authority ............................................................
20 ................... ...................
90.00 Outlays ........................................................................... ................... ................... ...................

1996 actual

1997 est.

1998 est.

26
60
14
6
10

28
68
14
11
10

38
62
16
11
20

00.91
01.01

Total direct program .............................................
Reimbursable program ..................................................

116
59

131
59

147
39

10.00

Total obligations ........................................................

175

190

186

5
179

8
190

8
186

184
–175

198
–190

194
–186

116

131

147

21.40

23.90
23.95
24.40

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................

230

FOREIGN AGRICULTURAL SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
FOREIGN AGRICULTURAL SERVICE AND GENERAL SALES MANAGER—
Continued
(INCLUDING TRANSFERS OF FUNDS)—Continued

Program and Financing (in millions of dollars)—Continued
Identification code 12–2900–0–1–352

1996 actual

1997 est.

1998 est.

42.00

Transferred from other accounts ..............................

43.00

Appropriation (total) .............................................
Permanent:
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

120

131

147

Total new budget authority (gross) ..........................

179

190

186

16
175
–158

33
190
–180

43
186
–179

68.00
70.00

4 ................... ...................

72.40

86.90
86.93
86.97

78
21
59

111
10
59

122
18
39

87.00

Total outlays (gross) .................................................

158

180

179

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–59

–39

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

120
99

131
121

147
140

89.00
90.00

The mission of the Foreign Agricultural Service (FAS) is
to open, expand and maintain global market opportunities
through international trade, cooperation, and sustainable development activities which secure the long-term economic vitality and global competitiveness of America’s rural communities and related food and agricultural enterprises.
FAS is fulfilling its mission by assisting American agriculture to increase the value of farm, food, and fish, and
forestry exports 50 percent over 1994 levels by the year 2000.
To meet this goal, FAS conducts a demand-driven export
strategy, deploying five major policy objectives to execute the
strategy, while integrating commodity and country market
priorities for allocating scarce export assistance resources.
These objectives include:
Strategic Outreach and Market Intelligence.—FAS strategic
outreach efforts focus on facilitating export readiness and help
link both export-ready and new-to-export firms to market
entry opportunities, and increase domestic awareness of export opportunities/global consumer quality and product safety
expectations. Additionally, FAS provides U.S. farmers and
traders with information on world agricultural production and
trade that they can use to adjust to changes in world demand
for U.S. agricultural products. This is done through a continuous program of reporting by 62 posts located throughout the
world covering some 128 countries. Starting in 1998, FAS
will compensate for overseas inflation through an advance
appropriation, contingent upon the results of actual, rather
than estimated overseas inflation (changes in exchange rates)
and by making funds appropriated to the account good for
2 rather than one year only. Funds are also provided for
computer equipment and support, which were previously
funded through CCC.
In 1995, FAS began implementing a comprehensive telecommunications initiative to take advantage of emerging
Internet technology. FAS Online—FAS’s web server on the

Internet (www.fas.usda.gov)—is the most visible part of this
initiative. FAS Online is important to the FAS outreach effort
as it permits the Agency to share large volumes of information with worldwide customers previously not reached through
conventional means.
Market Development and Promotion.—FAS develops foreign
markets for U.S. farm products through aggressive market
expansion activities. It provides services to the U.S. and foreign agricultural trade sectors that are necessary to establish,
build and maintain overseas markets for U.S. agricultural
products. The largest of FAS’s promotional programs are the
Foreign Market Development Cooperator Program and the
Market Access Program. In addition, FAS sponsors U.S. participation in several major trade shows and a number of single-industry exhibitions each year. FAS has 14 Agricultural
Trade Offices (ATO) in operation at key foreign trading centers to assist U.S. exporters, trade groups and state export
marketing officials in trade promotion. FAS will consider the
benefits—in the form of rental credits—received by private
cooperators that use ATO space when allocating direct assistance to cooperators. Cost-share rates for the Cooperator Program also will increase in 1998.
Market Access.—FAS initiates, directs and coordinates the
Department’s formulation of trade policies and programs with
the goal of maintaining and expanding world markets for
U.S. agricultural products. It monitors international compliance with bilateral and multilateral trade agreements. It
identifies restrictive tariff and trade practices which act as
barriers to the import of U.S. agricultural commodities, then
supports negotiations to remove them. It acts to counter and
eliminate unfair trade practices of other countries that hinder
U.S. agricultural exports to those markets. In virtually every
foreign market, U.S. agricultural exports are subject to import
duties and non-tariff trade restrictions. Trade information
sent to Washington from FAS personnel overseas is used to
map strategies for improving market access, pursuing U.S.
rights under trade agreements, and developing programs and
policies to make U.S. farm products more competitive.
Price/Credit and Risk Assistance.—FAS administers a number of price/credit and risk assistance programs designed to
develop overseas markets and expand the levels of U.S. agricultural commodities. These programs include CCC Export
Credit Guarantee Programs, export subsidy programs, including the Export Enhancement Program and Dairy Export Incentive Program, and food assistance activities such as Public
Law 480, Food for Progress and the Section 416(b) program.
These programs are designed to help developing nations make
the transition from concessional financing to cash purchases,
give U.S. producers the ability to counter export subsidies
of foreign competitors and allow U.S. exporters to compete
with sales terms offered by foreign competitors. In 1998, activity will focus on the new Suppliers and Facilities Export
Credit programs as well as the PL. 480 Title I private sector
initiative.
Long-term Market Development.—FAS works to enhance
U.S. agriculture’s competitiveness by providing linkages to
world resources and international organizations and building
a spirit of cooperation. These linkages produce new technologies that are vital to improving the agricultural demand
base and producing new and alternative products. Direct program activities include the administration of the Cochran Fellowship Program and management of USDA’s bilateral exchange and cooperative research programs with foreign governments and institutions. Another activity is the Emerging
Markets Program, under which technical assistance and related activities in emerging markets are aimed at enhancing
their food and rural business systems, and expanding U.S.
agricultural exports. Funds for the Emerging Markets Program ($10 million) formerly provided through CCC will be
provided directly through the FAS appropriation this year.

FOREIGN ASSISTANCE PROGRAMS

DEPARTMENT OF AGRICULTURE

At the request of the Agency for International Development,
international organizations and foreign governments, technical assistance and training in agriculture and rural development are provided on a reimbursable or advance of funds
basis.
Object Classification (in millions of dollars)
1996 actual

Identification code 12–2900–0–1–352

11.1
11.3
11.5
11.8

1997 est.

1998 est.

37
2
1
2

42
2
1
2

42
11
4
1
8

47
12
4
1
9

47
12
5
1
9

24.0
25.2
26.0
31.0
41.0

2
1
44
1
1
1

2
1
52
1
1
1

2
1
65
1
3
1

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

116
59

131
59

147
39

99.9

Total obligations ........................................................

175

190

186

11.9
12.1
21.0
22.0
23.2
23.3

Personnel Summary
Identification code 12–2900–0–1–352

1996 actual

1997 est.

1998 est.

760
2

125

SCIENTIFIC ACTIVITIES OVERSEAS (FOREIGN CURRENCY PROGRAM)
Program and Financing (in millions of dollars)
Identification code 12–1404–0–1–352

1996 actual

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ................................................... ...................
24.40 Unobligated balance available, end of year:
Uninvested balance ...................................................
1

1997 est.

1998 est.

21.40

FOREIGN ASSISTANCE PROGRAMS
The funds and facilities of the Commodity Credit Corporation may, by law, be used in carrying out programs to encourage the export of agricultural commodities.
Included in this category are the following activities carried
out under the Agricultural Trade Development and Assistance
Act of 1954, Public Law 480, 83rd Congress, as amended
(P.L. 480): Financing sales of agricultural commodities to developing countries for dollars on credit terms, or for local
currencies (including for local currencies on credit terms) for
use under sec. 104 (title I); for dispositions abroad (titles
II and III); and for furnishing commodities to carry out the
Food for Progress Act of 1985, as amended. Agreements may
provide for commodities to be made available on a multiyear basis.
PUBLIC LAW 480 PROGRAM

AND

GRANT ACCOUNTS

(INCLUDING TRANSFERS OF FUNDS)

For expenses during the current fiscal year, not otherwise recoverable, and unrecovered prior years’ costs, including interest thereon,
under the Agricultural Trade Development and Assistance Act of
1954, as amended (7 U.S.C. 1691, 1701–1715, 1721–1726, 1727–1727f,
1731–1736g), as follows: (1) ø$226,900,000¿ $112,899,000 for Public
Law 480 title I credit, including Food for Progress programs; (2)
ø$13,905,000¿ $10,250,000 is hereby appropriated for ocean freight
differential costs for the shipment of agricultural commodities pursuant to title I of said Act and the Food for Progress Act of 1985,
as amended; (3) $837,000,000 is hereby appropriated for commodities
supplied in connection with dispositions abroad pursuant to title II
of said Act; and (4) ø$29,500,000¿ $30,000,000 is hereby appropriated
for commodities supplied in connection with dispositions abroad pursuant to title III of said Act: Provided, That not to exceed 15 percent
of the funds made available to carry out any title of said Act may
be used to carry out any other title of said Act: Provided further,
That such sums shall remain available until expended (7 U.S.C.
2209b).
For the cost, as defined in section 502 of the Congressional Budget
Act of 1974, of direct credit agreements as authorized by the Agricultural Trade Development and Assistance Act of 1954, as amended,
and the Food for Progress Act of 1985, as amended, including the
cost of modifying credit agreements under said Act, ø$185,589,000¿
$87,869,000.
In addition, for administrative expenses to carry out the Public
Law 480 title I credit program, and the Food for Progress Act of
1985, as amended, to the extent funds appropriated for Public Law
480 are utilized, ø$1,780,000¿ $1,881,000. (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)

PUBLIC LAW 480 GRANTS—TITLES I (OFD), II,
Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
Outlays (gross), detail:
86.98 Outlays from permanent balances ................................

231

AND

III

Program and Financing (in millions of dollars)
6
–1

5
–1

Identification code 12–2278–0–1–151

Obligations by program activity:
Ocean freight differential ..............................................
Commodities supplied in connection with dispositions
abroad .......................................................................
00.03 Commodities supplied in connection with dispositions
abroad .......................................................................
00.01
00.02

As authorized by the Agricultural Trade Development and
Assistance Act of 1954 (Public Law 480), as amended, USDA
uses foreign currencies to support research on problems of
mutual interest to the United States and participating foreign
countries. After 1991 no new foreign currency programs have
been or are proposed to be initiated.

10.00

Total obligations (object class 41.0) ........................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................
22.10 Resources available from recoveries of prior year obligations .......................................................................
22.22 Unobligated balance transferred from other accounts

1996 actual

1997 est.

1998 est.

864

837

940

881

877

44
836

26
881

26
877

21.40

23.90

Total budgetary resources available for obligation

12 ................... ...................
72 ................... ...................
964

907

903

232

FOREIGN ASSISTANCE PROGRAMS—Continued

THE BUDGET FOR FISCAL YEAR 1998

PUBLIC LAW 480 GRANTS—TITLES I (OFD), II,

AND

III—Continued

Program and Financing (in millions of dollars)—Continued
1996 actual

Identification code 12–2278–0–1–151

23.95
24.40

40.00

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1997 est.

23.90
23.95
24.40

235
–229

195
–188

97
–90

238
238

188
188

90
90

163
229
–286

106
188
–188

106
90
–135

106

1998 est.

–940

–881

–877

836
836

881
881

877
877

New budget authority (gross), detail:
Appropriation ..................................................................

72.40

423
552
337
940
881
877
–798
–1,096
–881
–12 ................... ...................

40.00

337

332

Outlays (gross), detail:
86.90 Outlays from new current authority ..............................
86.93 Outlays from current balances ......................................

498
300

553
543

550
331

87.00

Total outlays (gross) .................................................

798

1,096

881

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

836
798

881
1,096

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

140
146

108
80

52
83

87.00

552

86.90
86.93

Total outlays (gross) .................................................

286

188

135

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

238
286

188
188

90
135

877
881

Summary of Budget Authority and Outlays
(in millions of dollars)

Enacted/requested:
1996 actual
Budget Authority .....................................................................
836
Outlays ....................................................................................
798
Rescission proposal:
Budget Authority ..................................................................... ....................
Outlays .................................................................................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

836
798

1997 est.

881
1,096

1998 est.

877
881

–4 ....................
–2
–1
877
1,094

877
880

This account includes the non-credit components of Public
Law 480: title I ocean freight differential, title II, and title
III.

Summary of Budget Authority and Outlays
(in millions of dollars)

Enacted/requested:
1996 actual
Budget Authority .....................................................................
238
Outlays ....................................................................................
286
Rescission proposal:
Budget Authority ..................................................................... ....................
Outlays .................................................................................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

238
286

1997 est.

1998 est.

188
188

90
135

–46 ....................
–26
–17
142
162

90
118

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 12–2277–0–1–351

1996 actual

1997 est.

1998 est.

Direct loan levels supportable by subsidy budget authority:
1150 Direct loan levels ...........................................................

291

227

113

1159

291

227

113

PUBLIC LAW 480 PROGRAM ACCOUNT

Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Subsidy rate ...................................................................

81.06

81.79

77.83

Unavailable Collections (in millions of dollars)

1329

81.06

81.79

77.83

236

186

Credit accounts:

Identification code 12–2277–0–1–351

1996 actual

1997 est.

1998 est.

Balance, start of year:
Balance, start of year .................................................... ...................
37
37
Receipts:
02.01 Downward reestimates of subsidies ..............................
37 ................... ...................

Weighted average subsidy rate .................................
Direct loan subsidy budget authority:
1330 Subsidy budget authority ...............................................

04.00
07.99

Total: Balances and collections ....................................
Total balance, end of year ............................................

37
37

1996 actual

1997 est.

1998 est.

00.01
00.09

Obligations by program activity:
Direct loan subsidy ........................................................
Administrative expenses ................................................

227
2

186
2

88
2

10.00

Total obligations ........................................................

229

188

1339

186

284

186

Total subsidy outlays ................................................

284

186

Administrative expense data:
Budget authority ............................................................
Outlays from new authority ...........................................

2
2

37
37

Program and Financing (in millions of dollars)
Identification code 12–2277–0–1–351

236

3510
3590

37
37

Total subsidy budget authority .................................
Direct loan subsidy outlays:
1340 Subsidy outlays ..............................................................
1349

01.99

21.40

9
7
7
238
188
90
–12 ................... ...................

As required by the Federal Credit Reform Act of 1990,
this account records, for the P.L. 480 Program, the subsidy
costs associated with the direct loans obligated in 1992 and
beyond (including modifications of direct loans that resulted
from obligation in any year), as well as administrative expenses of this program. The subsidy amounts are estimated
on a present value basis; the administrative expenses are
estimated on a cash basis. An explanation of credit reform,
including a discussion of how subsidies are calculated, is included in the Federal Credit section of the Summary Information chapter.

FOREIGN ASSISTANCE PROGRAMS—Continued

DEPARTMENT OF AGRICULTURE
1231
1264

Object Classification (in millions of dollars)
Identification code 12–2277–0–1–351

25.3

1996 actual

1997 est.

1290

41.0

2
227

2
186

2
88

99.9

Total obligations ........................................................

229

188

PUBLIC LAW 480 DIRECT CREDIT FINANCING ACCOUNT
Program and Financing (in millions of dollars)
1996 actual

1997 est.

Obligations by program activity:
Direct loans ....................................................................
Interest on Treasury borrowing ......................................
Reestimate on direct loan subsidy ................................
Interest reestimate on direct loan subsidy ...................

10.00

Total obligations ........................................................

343

243

127

22.00
23.95

Budgetary resources available for obligation:
New financing authority (gross) ....................................
New obligations .............................................................

344
–343

243
–243

127
–127

329
–77
–6

232
–2
–8

183
–45
–35

Spending authority from offsetting collections
(total) ................................................................

246

222

103

Total new financing authority (gross) ......................

344

243

127

Change in unpaid obligations:
Unpaid obligations, start of year:
72.90
Obligated balance: Obligated balance .....................
72.95
Receivable from program account ............................

50
185

60
108

42
106

235
343
–410

168
243
–263

148
127
–200

60
108

42
106

14
61

72.99
73.10
73.20
74.90
74.95

Total unpaid obligations, start of year ................
New obligations .............................................................
Total financing disbursements (gross) .........................
Unpaid obligations, end of year:
Obligated balance: fund balance .............................
Receivables from program account ..........................

169
–44

Outstanding, end of year ..........................................

1,474

1,264

1,599

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond (including modifications of direct loans that resulted from obligations in any year). The amounts in this
account are a means of financing and are not included in
the budget totals.
Balance Sheet (in millions of dollars)

1998 est.

00.01
00.02
00.03
00.04

67.15

228
–18

1998 est.

Purchases of goods and services from Government
accounts ....................................................................
Grants, subsidies, and contributions ............................

Identification code 12–4049–0–3–351

Disbursements: Direct loan disbursements ...................
240
Write-offs for default: Other adjustments, net—Jordan ...................

233

1995 actual

1996 actual

153

137

106

1,024

1,264

1,492

1,643

..................
–769

..................
–969

–18
–1,156

–44
–1,246

255
..................

295
..................

318
..................

353
..................

458

492

466

428

21
292
3

6
383
..................

6
404
..................

6
430
..................

2999

316

389

410

436

142

103

318

..................

–244

–263

..................

–18

–62

Identification code 12–4049–0–3–351

295
227
113
11
16
14
29 ................... ...................
8 ................... ...................

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
Net value of assets related to post–
1991 direct loans receivable:
Direct loans receivable, gross:
1401
Direct loans receivable, gross ........
1401
Direct loans receivable, gross—
Jordan .........................................
1405
Allowance for subsidy cost (–) ...........
1499
1901

Net present value of assets related
to direct loans ...........................
Other Federal assets: Other assets ........

1999

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
Cumulative results of operations:
3300
Cumulative results of operations .......
3300
Cumulative results of operations—
Jordan .............................................

1997 est.

1998 est.

Total unpaid obligations, end of year ..................
Total financing disbursements (gross) .........................

168
410

148
263

Total net position ................................

142

103

–7

4999
74.99
87.00

3999

Total liabilities and net position ............

458

492

466

429

75
200

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Federal sources:
88.00
Payments from program account .....................
–299
–184
–132
88.00
Interest from Treasury ......................................
–8 ................... ...................
88.40
Interest received on loans ....................................
–22
–38
–42
88.45
Offsetting governmental collections—Jordan
Debt Forgiveness .............................................. ...................
–10
–9

DEBT REDUCTION—FINANCING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 12–4143–0–3–351

00.01
00.02

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Payment to Liquidating Account ................................... ................... ...................
Interest on debt to Treasury ..........................................
2
2

34
4

88.90
88.95

Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............

–329
77

–232
2

–183
45

10.00

Total obligations ........................................................

89.00
90.00

92
82

13
31

–11
17

22.00
23.95

Budgetary resources available for obligation:
New financing authority (gross) ....................................
New obligations .............................................................

2
–2

38
–38

Status of Direct Loans (in millions of dollars)
Identification code 12–4049–0–3–351

1996 actual

1997 est.

1998 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans .............................................

291

227

Total direct loan obligations .....................................

291

227

113

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................

1,024

1,264

1,474

New financing authority (gross), detail:
Authority to borrow (indefinite) .....................................
Spending authority from offsetting collections: Offsetting collections (cash) ..............................................

113

1150

67.15
68.00
70.00

Total new financing authority (gross) ......................

73.10
73.20
87.00

2
–2
2

38
–38
38

234

FOREIGN ASSISTANCE PROGRAMS—Continued

THE BUDGET FOR FISCAL YEAR 1998
22.21

DEBT REDUCTION—FINANCING ACCOUNT—Continued
Program and Financing (in millions of dollars)—Continued
1996 actual

Identification code 12–4143–0–3–351

1997 est.

1998 est.

Unobligated balance transferred to other accounts ...................

23.90
24.40

Credit accounts—Continued

Total budgetary resources available for obligation
Unobligated balance available, end of year:
Uninvested balance ...................................................

–25 ...................

72.40
Offsets:
Against gross financing authority and financing disbursements:
88.00
Offsetting collections (cash) from: Federal collections ......................................................................

–1

–6

1
1

32
32

89.00
90.00

Status of Direct Loans (in millions of dollars)
1996 actual

Identification code 12–4143–0–3–351

1290

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
66
66
Disbursements: Purchase of loans assets from a liquidating account ....................................................... ................... ...................
Outstanding, end of year ..........................................

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
1996 actual

Identification code 12–2273–0–1–351
1997 est.

1998 est.

1210
1233

89.00
90.00

66
34
100

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond (including modifications of direct loans that resulted from obligations in any year). The amounts in this
account are a means of financing and are not included in
the budget totals.

28 ................... ...................
–28 ................... ...................

1997 est.

1998 est.

Direct loan subsidy budget authority:
1330 Subsidy budget authority ...............................................
28 ................... ...................
Direct loan subsidy outlays:
1349 Total subsidy outlays ..................................................... ................... ................... ...................

As part of a comprehensive package of U.S. assistance for
Russia announced by the President in April 1993,
$385,000,000 was transferred from CCC to Food for Progress
under provisions of the Secretary of Agriculture’s Interchange
Authority (7 U.S.C. 2257) for commodity and related transportation assistance.
Sales under the credit portion of the Food for Progress
program for Russia carry a term of fifteen years, including
a seven-year grace period. The interest rates are three percent
during the grace period and four percent thereafter. Funding
for commodity and ocean freight financing is under P.L. 480
Title I FFP and is subject to credit reform budgeting. All
shipments were completed in 1995.

Balance Sheet (in millions of dollars)

ASSETS:
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1405
Allowance for subsidy cost (–) ...........
1499

Net present value of assets related
to direct loans ...........................

1999

1997 est.

P.L. 480 TITLE I FOOD

1995 actual

Identification code 12–4143–0–3–351

1996 actual

1998 est.

66
–33

100
–33

CREDITS, FINANCING

Program and Financing (in millions of dollars)
Identification code 12–4078–0–3–351

00.02
00.07
00.08

Obligations by program activity:
Interest to Treasury on borrowings ................................
Technical reestimate of subsidy ....................................
Technical reestimate—interest .....................................

10.00

Total obligations ........................................................

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Debt ...........................

2999

Total liabilities ....................................

FOR PROGRESS
ACCOUNT

1996 actual

1997 est.

1998 est.

15
3
3
35 ................... ...................
4 ................... ...................
54

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
77
22.00 New financing authority (gross) ....................................
25
22.40 Capital transfer to general fund ................................... ...................
22.60 Redemption of debt .......................................................
–9

21.40

P.L. 480 TITLE I FOOD

FOR

PROGRESS CREDITS, PROGRAM ACCOUNT

38 ...................
13
13
–38 ...................
–10
–10

Unavailable Collections (in millions of dollars)
Identification code 12–2273–0–1–351

1996 actual

1997 est.

23.90
23.95
24.40

1998 est.

Balance, start of year:
Balance, start of year .................................................... ...................
38
38
Receipts:
02.01 Downward reestimates of subsidies ..............................
38 ................... ...................

93
–54

3
–3

38 ................... ...................

01.99

04.00
07.99

Total: Balances and collections ....................................
Total balance, end of year ............................................

38
38

Program and Financing (in millions of dollars)
Identification code 12–2273–0–1–351

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.10 Resources available from recoveries of prior year obligations .......................................................................

1996 actual

1997 est.

73.10
73.20
87.00

1998 est.

21.40

68.00

28 ................... ...................

New financing authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.25
Interest on uninvested funds ...............................

25
25

13
13

54
–54
54

3
–3
3

–12 ................... ...................

FOREIGN ASSISTANCE PROGRAMS—Continued

DEPARTMENT OF AGRICULTURE

235

88.40

Interest collections ................................................

–13

70.00

88.90

Total, offsetting collections (cash) ..................

–25

–13

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Federal sources:
88.00
Federal sources—Debt Reduction ................... ................... ...................
88.00
Federal sources—Jordan .................................. ...................
–5
88.40
Principal and interest collections .........................
–572
–540

–34
–3
–483

88.90

Total, offsetting collections (cash) ..................

–572

–545

–520

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

–572
–572

–540
–545

–483
–520

Status of Direct Loans (in millions of dollars)
1996 actual

Identification code 12–4078–0–3–351

1997 est.

1998 est.

1210

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................

508

1290

Outstanding, end of year ..........................................

508

Total new budget authority (gross) .......................... ...................

508

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond (including modifications of direct loans that resulted from obligations in any year). The amounts in this
account are a means of financing and are not included in
the budget totals.
Balance Sheet (in millions of dollars)
Identification code 12–4078–0–3–351

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1405
Allowance for subsidy cost (–) ...........

1995 actual

1996 actual

1997 est.

1998 est.

Status of Direct Loans (in millions of dollars)

..................

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
10,077
9,767
Repayments:
Repayments and prepayments:
1251
Repayments and prepayments .............................
–310
–320
1251
Repayments and prepayments—debt reduction ................... ...................
Write-offs for default:
1263
Direct loans ............................................................... ...................
–9
1264
Other adjustments, net ............................................. ................... ...................

..................

508
–351

..................
..................

157

261

157

11
225
27

2999

Outstanding, end of year ..........................................

9,767

9,438

1998 est.

9,438

–283
–34
–14
–228
8,879

..................

1997 est.

1210

1290
77

1996 actual

Identification code 12–2274–0–1–151

Program Activities
[In millions of dollars]

1996 actual

1997 est.

1998 est.

Net present value of assets related
to direct loans ...........................

1999

Total liabilities ....................................
NET POSITION:
3600 Other ........................................................

864

837

..................

157

..................

Total program level ........................................................

940

881

877

..................
225
..................

..................
..................
..................

263

225

..................

–2

–68

..................

Title I
Commodity costs .........................................................................
Ocean freight differential and ocean transportation .................

280
23

227
14

113
10

Total program level, current year ..................................
Prior year obligations financed ...................................................
Obligations financed in succeeding years ..................................

1499

Ocean freight differential (title I) ...............................................
Commodities supplied in connection with dispositions abroad
(title II) ....................................................................................
Commodies supplied in connection with dispositions abroad
(title III) ...................................................................................

303
158
–164

241
134
–139

123
100
–76

Total program costs, funded program level ..................

297

236

147

Commodity costs .........................................................................
Ocean and inland transportation ................................................

512
352

538
299

537
300

Total program level, current year ..................................
Prior year obligations financed ...................................................
Current year obligations financed in succeeding years .............

864
192
–369

837
441
–301

837
303
–301

Total program costs, funded program level ..................

686

977

839

Commodity costs .........................................................................
Ocean and inland transportation ................................................

51
2

22
7

23
7

53
102
–53

30
64
–21

30
22
–21

Total program costs, funded program level ..................

102

3999

Total net position ................................

–2

–68

..................

4999

Total liabilities and net position ............

261

157

..................

EXPENSES, PUBLIC LAW 480, FOREIGN ASSISTANCE PROGRAMS,
AGRICULTURE, LIQUIDATING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 12–2274–0–1–151

1996 actual

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
139
22.00 New budget authority (gross) ........................................ ...................
22.40 Capital transfer to general fund ...................................
–11

1997 est.

1998 est.

128
5
5
37
–128 ...................

128

1996 actual

1997 est.

1998 est.

128

New budget authority (gross), detail:
Spending authority from offsetting collections:
Offsetting collections (cash):
68.00
Offsetting collections (cash) ................................
572
68.00
Offsetting collections—Treasury Debt Restructuring Program account ................................... ...................
68.27
Capital transfer to general fund ..............................
–572

540

483

5
–540

37
–483

68.90

Total budgetary resources available for obligation
Unobligated balance available, end of year:
Uninvested balance ...................................................

[In millions of dollars]

Title II

21.40

23.90
24.40

RECONCILIATION OF PROGRAM LEVEL TO PROGRAM COSTS FUNDED BY P.L. 480 OR
CCC

Title III

Spending authority from offsetting collections
(total) ................................................................ ...................

Financing sales of agricultural commodities to developing
countries for dollars on credit terms, or for local currencies

236

FOREIGN ASSISTANCE PROGRAMS—Continued

THE BUDGET FOR FISCAL YEAR 1998
Ocean freight and freight differential (support of U.S.
Merchant Marine):
Long-term credit ............................................................

Credit accounts—Continued
EXPENSES, PUBLIC LAW 480, FOREIGN ASSISTANCE PROGRAMS,
AGRICULTURE, LIQUIDATING ACCOUNT—Continued

(including for local currencies on credit terms) for use under
sec. 104; and for furnishing commodities to carry out the Food
for Progress Act of 1985, as amended (title I).—Funds appropriated for P.L. 480 are used to finance all sales made pursuant to agreements concluded under the authority of Title I.
The Corporation may serve as the purchasing or shipping
agent, or both, for the importing country or may award contracts for freight agent services on behalf of the Corporation
to handle shipping of commodities under P.L. 480.
Sales are made to developing countries as defined in section
402(4) of P.L. 480 and must not displace expected commercial
sales (secs. 403(e) and (h)). Agreements are made with developing countries for delivery in accordance with the terms
of the agreement.
When U.S.-flag vessels are required to ship commodities
under this title, the Corporation will pay the difference between U.S.-flag rates and foreign-flag rates. In limited cases,
full transportation costs to port-of-entry or point-of-entry
abroad may be included along with the cost of the commodity
in the amount financed by CCC in order to ensure that U.S.
food aid can reach the most needy recipients.
Financing sales of agricultural commodities for dollars on
credit terms (title I).—Payment by developing countries or
private entities may be made over a period of not more than
30 years with a deferral of principal payments for up to
5 years. Interest accrues at a concessional rate as determined
appropriate.
Section 411 of P.L. 480 authorizes the President to waive
payments of principal and interest under dollar credit sales
agreements for countries that meet certain enumerated requirements. Such debt relief may be provided only if the
President notifies Congress and may not exceed the amount
approved for such purpose in an Act appropriating funds to
carry out P.L. 480.
Financing sales of agricultural commodities for local currency, including for local currency on credit terms.—Payment
by a recipient country may be made in local currencies for
use in carrying out activities under section 104 of P.L. 480.
Foreign currency received in payment for credit extended
may be used for payment of U.S. obligations abroad, subject
to the appropriation process. The P.L. 480 program is reimbursed for the dollar value of currencies so used.
The financing of sales of agricultural commodities for local
currencies on credit terms is subject to the same terms that
are applicable to dollar credit financing.
Furnishing commodities to carry out the Food for Progress
Act of 1985, as amended (title I).—Funds appropriated to
carry out title I may be used to furnish commodities to carry
out the Food for Progress Act of 1985. Such commodities
may be furnished on credit terms or on a grant basis in
order to assist developing countries and countries that are
emerging democracies that have made a commitment to introduce and expand free enterprise elements in their agricultural
economies.
The following table reflects the composition of the combined
appropriations (in millions of dollars):
SALES FOR DOLLARS ON CREDIT TERMS
[In millions of dollars]

Item:
Expenses of shipments (Title I):
Commodity costs:
Long-term credit ............................................................

1996 actual

280

227

113

Total commodity costs ..........................................

280

227

113

1997 est.

1998 est.

Total ocean freight and freight differential .........

Total expenses of shipments ..................................................

303

241

123

Appropriation—Title I loan subsidy ............................................

236

179

Appropriation—Ocean freight differential ..................................

Title I credit not subsidized through appropriation ...................

Commodities supplied in connection with dispositions
abroad (title II).—Under title II, agricultural commodities are
furnished to meet famine or other emergency relief needs,
combat malnutrition, carry out activities to alleviate the
causes of hunger, mortality and morbidity, promote economic
and community development, promote sound environmental
practices, and carry out feeding programs. Agricultural commodities are provided through governments for emergencies
only, and for non-emergencies through public and private
agencies, including intergovernmental organizations.
The Corporation is authorized to pay the costs of acquisition, packaging, processing, enrichment, preservation, fortification, transportation, handling, and other incidental costs
incurred up to the time of delivery at U.S. ports. The Corporation also pays ocean freight charges, and pays transportation
costs to points of entry other than ports in the case of landlocked countries, where carriers to a specific country are not
available, where ports cannot be used effectively, or where
a substantial savings in costs or time can be effected, and
pays general average contributions arising from ocean transport. In addition, transportation costs from designated points
of entry or ports of entry abroad to storage and distribution
sites and associated storage and distribution costs may be
paid for commodities made available to meet urgent and extraordinary relief requirements.
The following table reflects the composition of the appropriations (in millions of dollars):
COMMODITIES SUPPLIED IN CONNECTION WITH DISPOSITIONS ABROAD
(TITLE II)
[In millions of dollars]

Item:
Expenses of shipments:
Commodity Credit Corporation stocks and other costs
in connection with commodities supplied .....................
Ocean transportation ..........................................................

1996 actual

1997 est.

1998 est.

512
352

538
299

537
300

Total program costs .......................................................

864

837

Appropriation or estimate ..............................................

864

837

Commodities supplied in connection with dispositions
abroad (title III).—Under title III, agricultural commodities
are furnished to least developed countries as defined in section 302(a). They are provided through foreign governments
for direct feeding, development of emergency food reserves
or may be sold with the proceeds of such sale used by the
recipient country for specific economic development purposes.
The Corporation may pay, in connection with furnishing
commodities under title III, the same cost items as authorized
under title II. The following table reflects the composition
of the appropriations (in millions of dollars):

FOOD AND CONSUMER SERVICE
Federal Funds

DEPARTMENT OF AGRICULTURE

237

COMMODITIES SUPPLIED IN CONNECTION WITH DISPOSITIONS ABROAD

22.00

New budget authority (gross) ........................................

(TITLE III)

23.90
23.95
24.40

6
–1

[In millions of dollars]

1996 Actual

1997 est.

1998 est.

Item:
Expenses of shipments:
Commodity Credit Corporation stocks and other costs
in connections with commodities supplied ...................
Ocean transportatioan ........................................................

51
2

22
7

23
7

Total program costs .......................................................

Appropriation or estimate ..............................................

60.27

New budget authority (gross), detail:
Appropriation (trust fund, indefinite) ............................

73.10
73.20

Change in unpaid obligations:
New obligations .............................................................
Total outlays (gross) ......................................................

1
–1

86.97

Outlays (gross), detail:
Outlays from new permanent authority .........................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

1
1

Balance Sheet (in millions of dollars)
1995 actual

1997 est.

1998 est.

128

..................

10,077

9,767

9,447

9,155

..................
..................
104
–6,032

..................
..................
131
–5,680

..................
–9
131
–5,580

–262
–14
131
–5,417

4,149

4,218

3,989

3,593

Total assets ........................................
LIABILITIES:
2104 Federal liabilities: Resources payable to
Treasury ...............................................

4,291

4,351

3,989

3,593

4,291

4,351

3,998

3,869

2999

4,291

4,351

3,998

3,869

..................

–262

..................

–9

–14

Identification code 12–2274–0–1–151

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
Direct loans, gross:
1601
Direct loans, gross .........................
1601
Direct loans, adjustment—Debt
Reduction ...................................
1601
Direct loans, gross—Jordan ..........
1602
Interest receivable ..............................
1603
Allowance, loans receivable (–) .........
1699

Value of assets related to direct
loans ..........................................

1999

Total liabilities ....................................
NET POSITION:
Cumulative results of operations:
3300
Cumulative results of operations—
Debt Reduction ...............................
3300
Cumulative results of operations—
Jordan .............................................

1996 actual

142

Miscellaneous funds are received from other Federal agencies, international organizations, and from Saudi Arabia,
Spain, and developing countries, for USDA development assistance and international research projects (22 U.S.C. 2392).

FOOD AND CONSUMER SERVICE
Federal Funds
General and special funds:
FOOD PROGRAM ADMINISTRATION
For necessary administrative expenses of the domestic food programs funded under this Act, ø$106,128,000¿ $105,501,000, of which
$5,000,000 shall be available only for simplifying procedures, reducing
overhead costs, tightening regulations, improving food stamp coupon
handling, and assistance in the prevention, identification, and prosecution of fraud and other violations of law: Provided, That this
appropriation shall be available for employment pursuant to the second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C.
2225), and not to exceed $150,000 shall be available for employment
under 5 U.S.C. 3109. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
1996 actual

1997 est.

1998 est.

3999

Total net position ................................

..................

–9

–276

Identification code 12–3508–0–1–605

4999

Total liabilities and net position ............

4,291

4,351

3,989

3,593

Obligations by program activity:
Direct program:
00.01
Food program administration ....................................
03.02 Reimbursable program: Other .......................................

107
1

106
1

10.00

Total obligations ........................................................

108

107

22.00
22.30

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Unobligated balance expiring ........................................

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

Trust Funds
MISCELLANEOUS CONTRIBUTED FUNDS
Unavailable Collections (in millions of dollars)
Identification code 12–8232–0–7–352

1996 actual

1997 est.

1998 est.

Balance, start of year:
01.99 Balance, start of year .................................................... ................... ...................
Receipts:
02.01 Deposits of miscellaneous contributed funds, International Cooperation and Development ....................
1
4

04.00

–1
3

–1
6

Total: Balances and collections ....................................
1
Appropriation:
05.01 Miscellaneous contributed funds ...................................
–1
07.99 Total balance, end of year ............................................ ...................

109
107
107
–1 ................... ...................

Program and Financing (in millions of dollars)

108
–108

107
–107

108

106

Total new budget authority (gross) ..........................

109

107

9
108
–108

8
107
–107

100

70.00

72.40

Identification code 12–8232–0–7–352

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

Budgetary resources available for obligation:
21.40 Unobligated balance available, start of year:
Uninvested balance ...................................................

1996 actual

1997 est.

1998 est.

86.90

Outlays (gross), detail:
Outlays from new current authority ..............................

238

FOOD AND CONSUMER SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
68.00

FOOD PROGRAM ADMINISTRATION—Continued
Program and Financing (in millions of dollars)—Continued
1996 actual

Identification code 12–3508–0–1–605

70.00

1997 est.

1998 est.

Permanent:
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

2 ...................

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
1 ................... ...................
73.10 New obligations .............................................................
3
2
2
73.20 Total outlays (gross) ......................................................
–3
–2
–2
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation ............................................................. ................... ................... ...................
72.40

86.93
86.97

Outlays from current balances ......................................
Outlays from new permanent authority .........................

7
1

87.00

Total outlays (gross) .................................................

108

107

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–1

86.90
86.97

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

108
107

106
106

87.00

89.00
90.00

Food program administration funds the Federal operating
expenses of the Food and Consumer Service.
Object Classification (in millions of dollars)
1996 actual

Identification code 12–3508–0–1–605

11.1
11.3
11.5

1997 est.

Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–3

89.00
90.00

1998 est.

76
2
1

75
2
1

76
2
1

79
15
2

78
15
2

79
15
2

25.2
31.0

Total personnel compensation .........................
Civilian personnel benefits .......................................
Travel and transportation of persons .......................
Communications, utilities, and miscellaneous
charges .................................................................
Other services ............................................................
Equipment .................................................................

2
6
1

1
6
1

99.0
99.0
99.5

105
1
2

104
1
2

99.9

Total obligations ........................................................

108

107

–2 ...................

2
2

The Center for Nutrition Policy and Promotion is charged
with the linking of nutrition science with the needs of American consumers and to coordinate nutrition promotion policy
analysis.
The Center for Nutrition Policy and Promotion was funded
within the Food Program Administration account in 1996 and
1997.

107

11.9
12.1
21.0
23.3

Outlays (gross), detail:
Outlays from new current authority .............................. ................... ...................
2
Outlays from new permanent authority .........................
3
2 ...................

Object Classification (in millions of dollars)
1996 actual

Identification code 12–3506–0–1–605

11.1
99.0
99.9

1997 est.

1998 est.

Direct obligations: Personnel compensation: Full-time
permanent ................................................................. ................... ...................
2
Reimbursable obligations: Subtotal, reimbursable obligations .......................................................................
3
2 ...................
Total obligations ........................................................

Personnel Summary
1996 actual

Identification code 12–3508–0–1–605

1001
1005

FOR

Personnel Summary

1998 est.
Identification code 12–3506–0–1–605

Total compensable workyears:
Full-time equivalent employment ..................................
Full-time equivalent of overtime and holiday hours

THE CENTER

1997 est.

1,609
3

NUTRITION POLICY

AND

1,597
3

1,601
3

PROMOTION

For necessary expenses for the Center for Nutrition Policy and Promotion to develop and implement programs to strengthen nutrition
research information and education in the United States, $2,499,000:
Provided, That this appropriation shall be available for employment
pursuant to the second sentence of section 706(a) of the Organic Act
of 1944 (7 U.S.C. 2225), and not to exceed $150,000 shall be available
for employment under 5 U.S.C. 3109.
Program and Financing (in millions of dollars)
Identification code 12–3506–0–1–605

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Direct program: The Center for Nutrition Policy and
Promotion ................................................................... ................... ...................
2
02.01 Reimbursable program ..................................................
3
2 ...................
00.01

10.00

Total obligations ........................................................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

3
–3

2
–2

New budget authority (gross), detail:
Current:
40.00
Appropriation ............................................................. ................... ...................

1996 actual

1997 est.

1998 est.

Direct:
1001 Total compensable workyears: Full-time equivalent
employment ............................................................... ................... ...................
34
Reimbursable:
2001 Total compensable workyears: Full-time equivalent
employment ...............................................................
32
35 ...................

FOOD STAMP PROGRAM
For necessary expenses to carry out the Food Stamp Act (7 U.S.C.
2011 et seq.), ø$27,618,029,000: Provided, That funds provided herein
shall¿ and to remain available through September 30, ø1997¿ 1998,
in accordance with section 18(a) of the Food Stamp Act: øProvided
further, That $100,000,000 of the foregoing amount¿, $27,551,479,000;
of which $2,500,000,000 shall be placed in reserve for use only in
such amounts and at such times as may become necessary to carry
out program operationsø: Provided further, That not to exceed
$3,000,000 of the funds made available under this heading shall
be used for studies and evaluations:¿; of which $1,204,000,000 shall
be available for nutrition assistance for Puerto Rico as authorized
by 7 U.S.C. 2028; of which $100,000,000 shall be available to carry
out the Emergency Food Assistance Program as authorized by section
27 of the Food Stamp Act: Provided ƒfurther≈, That funds provided
herein shall be expended in accordance with section 16 of the Food
Stamp Act: Provided further, That this appropriation shall be subject
to any work registration or workfare requirements as may be required
by lawø: Provided further, That $1,174,000,000 of the foregoing
amount shall be available for nutrition assistance for Puerto Rico
as authorized by 7 U.S.C. 2028¿.

FOOD AND CONSUMER SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
For necessary expenses to carry out the Food Stamp Act for the
first quarter of fiscal year 1999, $6,600,000,000, to remain available
through January 31, 1999. (Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies Appropriations Act,
1997.)
Program and Financing (in millions of dollars)
1996 actual

Identification code 12–3505–0–1–605

Obligations by program activity:
Direct program:
00.01
Properly issued benefits ............................................
20,805
00.02
Estimated State erroneous issuances .......................
1,588
00.03
State administration .................................................
1,614
00.04
Employment and training program ...........................
180
00.05
Other program costs .................................................
67
00.06
Puerto Rico ................................................................
1,143
00.07
Food distribution program on indian reservations
(Commodities in lieu of food stamps) .................
44
00.08
Food distribution program on Indian reservations
(Cooperator administrative expense) ....................
20
00.09
The emergency food assistance program (commodities) ...................................................................... ...................
00.10
Modified Food Stamp Program in American Samoa
5
00.11
Community Food Project ............................................
1
00.91
01.01

Total direct program .............................................
25,467
Reimbursable program .................................................. ...................

1997 est.

19,701
1,483
1,766
187
78
1,174

1998 est.

20,101
1,490
1,812
191
70
1,204

100
5
3

24,562
85

25,051
85

10.00

Total obligations ........................................................

25,467

24,647

25,136

22.00
22.30

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Unobligated balance expiring ........................................

27,691
–2,224

27,703
–3,056

27,636
–2,500

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

25,467
–25,467

24,562
–24,647

25,136
–25,136

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

Outlays ....................................................................................

27,618

24,856

25,880

The Food Stamp Program is the primary source of nutrition
assistance for low-income Americans.
Some of these funds provide a grant to Puerto Rico in
lieu of the food stamp program which gives the Commonwealth flexibility to continue a food assistance program tailored to the needs of its low income households.
Funds in this account are also used to carry out the Emergency Food Assistance Act of 1983 and for food distribution
and administrative expenses for native Americans under section 4(b) of the Food Stamp Act.
Object Classification (in millions of dollars)
1996 actual

Identification code 12–3505–0–1–605

1997 est.

1998 est.

11.1
21.0
22.0
24.0
25.1
25.2
26.0
31.0
41.0

Direct obligations:
Personnel compensation: Full-time permanent ........
3
3
Travel and transportation of persons .......................
1
1
Transportation of things ...........................................
5
5
Printing and reproduction .........................................
11
27
Advisory and assistance services .............................
11
3
Other services ............................................................
35
38
Supplies and materials .............................................
45
148
Equipment ................................................................. ................... ...................
Grants, subsidies, and contributions ........................
25,326
24,337

3
1
4
21
11
41
157
1
24,812

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

25,437
30

24,562
85

25,051
85

99.9

Total obligations ........................................................

25,467

24,647

25,136

Personnel Summary
Identification code 12–3505–0–1–605

1001
27,661

25,422

239

1996 actual

Total compensable workyears: Full-time equivalent
employment ...............................................................

1997 est.

1998 est.

27,551

27,691

27,703

27,636

FOOD STAMP PROGRAM
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)

72.40

310
420
482
25,467
24,647
25,136
–25,452
–24,585
–25,129
95 ................... ...................
420

482

489

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

25,142
310

24,165
420

24,647
482

87.00

Total outlays (gross) .................................................

25,452

24,585

Identification code 12–3505–4–1–605

Obligations by program activity:
Direct program:
00.01
Properly issued benefits ............................................
00.02
Estimated State erroneous issuances .......................
00.03
Employment and training program ...........................
00.05
Other Technical Fixes ................................................

25,129

–30

–85

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

27,661
25,422

27,618
24,500

27,551
25,044

Summary of Budget Authority and Outlays
(in millions of dollars)

Enacted/requested:
Budget Authority .....................................................................
Outlays ....................................................................................
Supplemental proposal:
Budget Authority .....................................................................
Outlays ....................................................................................
Legislative proposal, subject to PAYGO:
Budget Authority .....................................................................
Outlays ....................................................................................
Total:
Budget Authority .....................................................................

1997 est.

1998 est.

...................
330
...................
25
...................
10
................... ...................

712
53
40
40

1996 actual

27,661
25,422

1997 est.

27,618
24,500

1998 est.

10.00

Total obligations (object class 41.0) ........................ ...................

365

845

22.00
23.95

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

89.00
90.00

1996 actual

365
–365

845
–845

New budget authority (gross), detail:
Appropriation .................................................................. ...................
...................

365
365

845
845

................... ...................
...................
365
...................
–362

3
845
–836

40.00

27,551
25,044

.................... .................... ....................
....................
–6 ....................

86.90
86.93

...................

Outlays (gross), detail:
Outlays from new current authority .............................. ...................
362
Outlays from current balances ...................................... ................... ...................

833
3

87.00

27,661

365
362
27,983

Total outlays (gross) ................................................. ...................

362

836

89.00
90.00

....................
....................

365
362

845
836

845
836
28,396

240

FOOD AND CONSUMER SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
FOOD STAMP PROGRAM—Continued

The Administration is proposing to restore Food Stamps
for those looking for, but who cannot find a job as well as
providing States with new funding to support an expanded
work program with rigorous requirements and tough sanctions. Also, the proposal would continue to provide legal immigrants with benefits until the period August 1 to September
30, 1997. Finally, the Administration would restore the link
between benefits and rising living costs. The shelter deduction
and vehicle asset limit would each be increased and then
indexed and the standard deduction would be reindexed.

23.90
23.95
24.40

141
7,966

385
8,659

737
7,789

370 ................... ...................
–24 ................... ...................
8,453
–8,069
385

9,044
–8,307

8,526
–8,526

737 ...................

(INCLUDING TRANSFERS OF FUNDS)

For necessary expenses to carry out the National School Lunch
Act (42 U.S.C. 1751 ø1769b¿ et seq.), except section 21, and the
Child Nutrition Act of 1966 (42 U.S.C. 1772) et seq. ø1785, and
1789¿); except sections 17 and ø19; $8,653,297,000¿ 21;
$7,782,766,000, to remain available through September 30, ø1998¿
1999 of which ø$3,219,544,000¿ $2,631,375,000 is hereby appropriated and ø$5,433,753,000¿ $5,151,391,000 shall be derived by
transfer from funds available under section 32 of the Act of August
24, 1935 (7 U.S.C. 612c): Provided, That ønot to exceed $1,000,000
of the funds made available under this heading shall be used for
studies and evaluations: Provided further, That¿ up to ø$4,031,000¿
$4,124,000 shall be available for independent verification of school
food service claims. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 1997.)

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
Permanent:
60.00
Appropriation .............................................................
62.00
Transferred from other accounts ..............................

2,348

3,219

2,632

20
5,598

6
5,434

6
5,151

63.00

CHILD NUTRITION PROGRAMS

Appropriation (total) .............................................

5,618

5,440

5,157

70.00

Total new budget authority (gross) ..........................

7,966

8,659

7,789

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

1,267
1,078
1,127
8,069
8,307
8,526
–7,875
–8,258
–8,500
–13 ................... ...................
–370 ................... ...................
1,078

1,127

1,153

1997 est.

873
1,395
5,607

1,355
1,463
5,440

1,479
1,864
5,157

Total outlays (gross) .................................................

7,875

8,258

8,500

89.00
90.00

1996 actual

86.90
86.93
86.97
87.00

Program and Financing (in millions of dollars)
Identification code 12–3539–0–1–605

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

7,966
7,875

8,659
8,258

7,789
8,500

1998 est.

Obligations by program activity:
School lunch program:
00.01
Above 185% of poverty .............................................
00.02
130–185% of poverty ...............................................
00.03
Below 130% of poverty .............................................

603
392
3,698

626
407
3,837

651
423
3,992

00.91

4,693

4,870

5,066

Summary of Budget Authority and Outlays
(in millions of dollars)

01.01
01.02
01.03
01.91
02.01
02.02
02.03
02.04
02.91
03.01
03.02
03.03
03.04
04.01
04.02
04.03
04.04
04.05
04.06
04.91
05.01
05.02
05.03
05.04

Subtotal, school lunch ..............................................
School breakfast program:
Above 185% of poverty .............................................
130–185% of poverty ...............................................
Below 130% of poverty .............................................

30
56
1,036

32
60
1,098

34
63
1,168

1,122

1,190
601
60
836
29

416
64
901
31

Subtotal, child and adult care feeding ....................
1,553
Summer feeding .............................................................
258
Special milk program ....................................................
19
State administrative expenses ......................................
100
Commodity procurement ................................................
277
Discretionary activities:
School meals initiative ..............................................
13
Coordinated Review ...................................................
4
Nutrition studies and surveys ...................................
3
Nutrition education and training .............................. ...................
Computer support and processing ............................
7
Demonstrations ..............................................................
4

1,526
255
19
110
297

1,412
277
20
112
330

12
4
3
4
7
4

10
4
3
10
7
4

2
1

3
1

1997 est.

1998 est.

8,659
8,258

7,789
8,500

1,265

681
46
803
23

Enacted/requested:
1996 actual
Budget Authority .....................................................................
7,966
Outlays ....................................................................................
7,875
Supplemental proposal:
Budget Authority ..................................................................... ....................
Outlays .................................................................................... ....................

Subtotal, school breakfast ........................................
Child and adult care feeding program:
Above 185% of poverty .............................................
130–185% of poverty ...............................................
Below 130% of poverty .............................................
Audits ........................................................................

Subtotal, discretionary activities ..............................
Activities with permanent appropriations:
Homeless children nutrition program .......................
Boarder babies and information clearinghouse .......
Nutrition education, training and food service
mgmt. inst. ...........................................................
School breakfast and summer food service program
start-up grants .....................................................

Total:
Budget Authority .....................................................................
Outlays ....................................................................................

7,966
7,875

6 ....................
6 ....................
8,665
8,264

7,789
8,500

Payments are made for cash and commodity meal subsidies
through the School Lunch, School Breakfast, Summer Food
Service, and Child and Adult Care Food programs.
Object Classification (in millions of dollars)
1996 actual

Identification code 12–3539–0–1–605

1997 est.

1998 est.

11.1
12.1
21.0
24.0
25.1
25.2
26.0
41.0

Personnel compensation: Full-time permanent .............
Civilian personnel benefits ............................................
Travel and transportation of persons ............................
Printing and reproduction ..............................................
Advisory and assistance services ..................................
Other services ................................................................
Supplies and materials (Commodities) .........................
Grants, subsidies, and contributions ............................

5
1
1
2
3
9
278
7,770

5
1
1
2
3
9
297
7,989

5
1
1
2
3
7
330
8,177

99.9

Total obligations ........................................................

8,069

8,307

8,526

Personnel Summary
2 ................... ...................

05.91

Subtotal, activities with permanent appropriations

10.00

Total obligations ........................................................

8,069

8,307

8,526

Identification code 12–3539–0–1–605

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

1996 actual

109

1997 est.

118

1998 est.

109

FOOD AND CONSUMER SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
SPECIAL SUPPLEMENTAL NUTRITION PROGRAM
AND CHILDREN (WIC)

FOR

WOMEN, INFANTS,
68.00

For necessary expenses to carry out the special supplemental nutrition program as authorized by section 17 of the Child Nutrition
Act of 1966 (42 U.S.C. 1786), ø$3,729,807,000¿ $4,108,000,000, to
remain available through September 30, ø1998: Provided, That none
of the funds made available under this heading may be used to
begin more than two studies and evaluations: Provided further, That¿
1999, of which up to ø$6,750,000¿ $12,000,000 may be used to carry
out the farmers’ market nutrition program from any funds not needed
to maintain current caseload levelsø: Provided further, That once
the amount for fiscal year 1996 carryover funds has been determined
by the Secretary, any funds in excess of $100,000,000 may be transferred by the Secretary of Agriculture to the Rural Utilities Assistance Program and/or to the Rural Housing Insurance Fund for the
cost of direct section 502 loans, including the cost of modifying loans,
as defined in section 502 of the Congressional Budget Act of 1974¿;
and of which $100,000,000, to remain available until expended, shall
be placed in reserve to be used only in such amounts and in such
manner as the Secretary determines necessary, notwithstanding section
17(i) of such Act, for food benefits, should food cost increases exceed
budget estimates: Provided, That notwithstanding sections 17 (g), (h)
and (i) of such Act, the Secretary shall adjust fiscal year 1998 State
allocations to reflect food funds available to the State from fiscal
year 1997 under section 17(i)(3)(A)(ii) and 17(i)(3)(D): Provided further, That the Secretary shall allocate funds recovered from fiscal
year 1997 first to States to maintain stability funding levels, as defined by regulations promulgated under section 17(g), and then to
give first priority for the allocation of any remaining funds to States
whose funding is less than their fair share of funds, as defined by
regulations promulgated under section 17(g): Provided further, That
none of the funds in this Act shall be available to pay administrative
expenses of WIC clinics except those that have an announced policy
of prohibiting smoking within the space used to carry out the program: Provided further, That none of the funds provided in this
account shall be available for the purchase of infant formula except
in accordance with the cost containment and competitive bidding
requirements specified in section 17 of the Child Nutrition Act of
1966 ø(42 U.S.C. 1786)¿: Provided further, That State agencies required to procure infant formula using a competitive bidding system
may use funds appropriated by this Act to purchase infant formula
under a cost containment contract entered into after September 30,
1996 only if the contract was awarded to the bidder offering the
lowest net price, as defined by section 17(b)(20) of the Child Nutrition
Act of 1966, unless the State agency demonstrates to the satisfaction
of the Secretary that the weighted average retail price for different
brands of infant formula in the State does not vary by more than
five percent. (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

3,695

3,730

4,108

72.40

86.90
86.93
86.97

87.00

Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

336
239
319
3,715
3,875
4,108
–3,679
–3,769
–3,988
7 ................... ...................
–140
–27
–100
239

319

339

3,482
3,557
3,724
196
212
264
1 ................... ...................
3,679

3,769

3,988

–1 ................... ...................

3,694
3,679

3,730
3,769

4,108
3,988

Summary of Budget Authority and Outlays
(in millions of dollars)

Enacted/requested:
1996 actual
Budget Authority .....................................................................
3,694
Outlays ....................................................................................
3,678
Supplemental proposal:
Budget Authority ..................................................................... ....................
Outlays .................................................................................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

3,694
3,678

1997 est.

3,730
3,769

1998 est.

4,108
3,988

100 ....................
91
9
3,830
3,860

4,108
3,997

The Special Supplemental Nutrition Program (WIC) provides at-risk pregnant and post-partum women, infants, and
children with nutrition assistance, nutrition education and
counseling, and health and immunization referrals.
Object Classification (in millions of dollars)
1996 actual

Identification code 12–3510–0–1–605

1997 est.

1998 est.

1997 est.

3
3,712

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

3,715
3,875
4,108
1 ................... ...................

99.9

Total obligations ........................................................

3
3,872

3
4,105

1998 est.

3,714
3,875
4,108
1 ................... ...................

10.00

3,715

3,875

Direct obligations:
Advisory and assistance services .............................
Grants, subsidies, and contributions ........................

99.0
99.0

1996 actual

Obligations by program activity:
00.01 WIC Program ..................................................................
01.01 Reimbursable Program—CDC .......................................
Total obligations ........................................................

Total new budget authority (gross) ..........................

1 ................... ...................

25.1
41.0

Program and Financing (in millions of dollars)
Identification code 12–3510–0–1–605

70.00

Permanent:
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

241

3,715

3,875

4,108

COMMODITY ASSISTANCE PROGRAM
Budgetary resources available for obligation:
21.40 Unobligated balance available, start of year:
Uninvested balance ................................................... ...................
118 ...................
22.00 New budget authority (gross) ........................................
3,695
3,730
4,108
22.10 Resources available from recoveries of prior year obligations .......................................................................
140
27
100
22.30 Unobligated balance expiring ........................................
–1 ................... ...................
23.90
23.95
24.40

3,834
–3,715

3,875
–3,875

4,208
–4,108

118 ...................

100

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
41.00
Transferred to other accounts ...................................

3,730
3,730
4,108
–36 ................... ...................

43.00

3,694

Appropriation (total) .............................................

3,730

4,108

For necessary expenses to carry out the commodity supplemental
food program as authorized by section 4(a) of the Agriculture and
Consumer Protection Act of 1973 (7 U.S.C. 612c (note)), the Emergency Food Assistance Act of 1983, as amended, øand¿ section 110
of the Hunger Prevention Act of 1988, $166,000,000 the Nutrition
Program for the Elderly as authorized by section 311 of the Older
Americans Act of 1965, as amended (42 U.S.C. 3030a), and Special
Assistance for the nuclear affected islands as authorized by the Omnibus Insular Areas Act of 1992, and for non-presidentially declared
disasters, $272,165,000, to remain available through September 30,
ø1998¿ 1999: Provided, That none of these funds shall be available
to reimburse the Commodity Credit Corporation for commodities donated to the program.
øFOOD DONATIONS PROGRAMS

FOR

SELECTED GROUPS¿

øFor necessary expenses to carry out section 4(a) of the Agriculture
and Consumer Protection Act of 1973 (7 U.S.C. 612c (note)), and

242

FOOD AND CONSUMER SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
øFOOD DONATIONS PROGRAMS

FOR

SELECTED GROUPS¿—Continued

section 311 of the Older Americans Act of 1965, as amended (42
U.S.C. 3030a), $141,250,000, to remain available through September
30, 1998.¿ (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 12–3507–0–1–605

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Commodity supplemental food program:
00.01
Commodity procurement ............................................
00.02
Administrative costs ..................................................

66
21

74
18

69
17

01.92

31
16

45
45
45 ...................

02.01
02.02

Subtotal, commodity supplemental food program
The emergency food assistance program:
Administrative costs ..................................................
Commodity Procurement ............................................

02.92
03.01
04.01
05.01

Subtotal, the emergency food assistance program
Commodities for soup kitchens .....................................
Pacific Island Assistance ..............................................
Nutrition Program for the Elderly ..................................

10.00

Total obligations ........................................................

It also funds State administrative expenses. The NPE provides cash and commodities for per-meal reimbursement for
elderly persons served in senior citizens’ centers and similar
settings.
The Emergency Food Assistance Program provides cash to
support State administrative activities and maintain the storage and distribution pipeline for USDA and privately donated
commodities.
Assistance is also provided to residents of the Nuclear Affected Islands and Palau and funds are made available for
non-presidentially declared disasters.
Object Classification (in millions of dollars)

326

123
193

126
200

76
196

99.9

Total obligations ........................................................

316

326

272

FOREST SERVICE
Federal Funds

272

General and special funds:
NATIONAL FOREST SYSTEM
13
317

19 ...................
307
272

4
2 ...................
1 ................... ...................
335
–316

328
–326

272
–272

19 ................... ...................

40.00

New budget authority (gross), detail:
Appropriation .............................................................

317

307

272

70.00

Total new budget authority (gross) ..........................

317

307

272

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

1998 est.

Supplies and materials (commodities) .........................
Grants, subsidies, and contributions ............................

21.40

23.90
23.95
24.40

1997 est.

26.0
41.0

47
90
45
33 ................... ...................
1
1
1
148
143
140
316

1996 actual

Identification code 12–3507–0–1–605

53
59
41
316
326
272
–301
–342
–276
–4 ................... ...................
–4
–2 ...................
59

255
46

281
61

239
37

For necessary expenses of the Forest Service, not otherwise provided for, for management, protection, improvement, and utilization
of the National Forest System, for ecosystem planning, inventory,
and monitoring, and for administrative expenses associated with the
management of funds provided under the heads ‘‘Forest and Rangeland Research,’’ ‘‘State and Private Forestry,’’ ‘‘National Forest System,’’ ‘‘Wildland Fire Management,’’ ‘‘Reconstruction and Construction,’’ and ‘‘Land Acquisition,’’ ø$1,274,781,000¿ $1,325,672,000, to
remain available until expended, øand including¿ which shall include
50 per centum of all monies received during øthe¿ prior fiscal øyear¿
years as fees collected under the Land and Water Conservation Fund
Act of 1965, as amended, in accordance with section 4 of the Act
(16 U.S.C. 460l–6a(i)): Provided, That up to $5,000,000 of the funds
provided herein for road maintenance shall be available for the
planned obliteration of roads which are no longer needed: Provided
further, That funds may be used to construct or reconstruct facilities
of the Forest Service: Provided further, That no more than $250,000
shall be used on any single project, exclusive of planning and design
costs: Provided further, That the Forest Service shall report annually
to Congress the amount obligated for each project, and the total dollars obligated during the year. (Department of the Interior and Related
Agencies Appropriations Act, 1997.)
Unavailable Collections (in millions of dollars)

87.00

Total outlays (gross) .................................................

301

342

276

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

317
301

307
342

272
276

Identification code 12–1106–0–1–302

Balance, start of year:
01.99 Balance, start of year ....................................................
Receipts:
02.01 Fees, operation and maintenance of recreational facilities ........................................................................

1996 actual

166
215

Distribution of outlays by account:
Commodity assistance program .............................................
Food donations programs for selected groups .......................
Commodity supplemental food program ................................
Temporary emergency food assistance program ....................

136
169
276
204
173 ...................
16 ................... ...................
8 ................... ...................

166
272
141 ...................

The Commodity Assistance Programs include the Commodity Supplemental Food Program (CSFP), the Nutrition Program for the Elderly (NPE), the Emergency Food Assistance
Program and Pacific Island Assistance.
The CSFP provides food packages for low income women,
infants, and children as well as low income elderly persons.

1998 est.

Total: Balances and collections ....................................
67
Appropriation:
05.01 National forest system ................................................... ...................
07.99 Total balance, end of year ............................................
67

04.00

Distribution of budget authority by account:
Commodity assistance program .............................................
Food donations programs for selected groups .......................

1997 est.

–5
–72
67 ...................

Program and Financing (in millions of dollars)
Identification code 12–1106–0–1–302

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Direct program:
00.01
National Forest System .............................................
00.04
Flood Supplemental ...................................................

1,257
4

1,254
1,331
17 ...................

00.91
01.01

Total direct program .............................................
Reimbursable program ..................................................

1,261
99

1,271
90

1,331
90

10.00

Total obligations ........................................................

1,360

1,361

1,421

FOREST SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................
22.10 Resources available from recoveries of prior year obligations .......................................................................
22.22 Unobligated balance transferred from other accounts
21.40

23.90
23.95
24.40

142
1,386

187
1,425

1,548
–1,361

1,612
–1,421

142

187

191

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
1,283
40.25
Appropriation (special fund, indefinite) .................... ...................

1,270
5

1,253
72

43.00

70.00

ment, Reconstruction and Construction, and Land Acquisition
appropriations.
Performance Indicators

3 ................... ...................
2
20 ...................
1,502
–1,360

62.00
68.00

114
1,383

Appropriation (total) .............................................
Permanent:
Transferred from other accounts ..............................
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

1,283

1,275

1,383

1,386

1,425

72.40

1997 est.

1998 est.

192
4.0
129.9
130.4

192
4.2
96.9
51.0

192
3.8
104.0
106.4

157
25.4
377.6
104.7
631

157
25.4
380.2
96.7
501

157
26.6
380.2
96.7
520

Object Classification (in millions of dollars)

Total new budget authority (gross) ..........................

1996 actual

Area administered and protected (million acres) .......................
Timber sales offered (billion board feet) ....................................
Reforestation (appropriated) (thousand acres) ..........................
Timber stand improvement (appropriated) (thousand acres) ....
Recreation: Seasonal capacity available (million people-atone-time) .................................................................................
Soil and water resource improvements (thousand acres) ..........
Roads maintained (thousand miles) ..........................................
Wildlife habitat restored or enhanced (hundred acres) .............
Anadromous fish streams habitat restored or enhanced (miles)

1,325

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

243

1996 actual

Identification code 12–1106–0–1–302

11.1
11.3
11.5

1997 est.

1998 est.

585
47
20

608
48
21

643
51
21

163

111

86.90
86.93
86.97

1,097
191
99

1,084
218
111

1,153
191
100

87.00

Total outlays (gross) .................................................

1,387

1,413

1,444

–80
–19

–85
–10

–75
–10

88.90

–99

–95

652
152
12
35
8
20
21

677
158
13
33
8
20
20

715
167
13
34
8
20
20

24.0
25.2
26.0
31.0
32.0
42.0

Total personnel compensation .........................
Civilian personnel benefits .......................................
Benefits for former personnel ...................................
Travel and transportation of persons .......................
Transportation of things ...........................................
Rental payments to GSA ...........................................
Rental payments to others ........................................
Communications, utilities, and miscellaneous
charges .................................................................
Printing and reproduction .........................................
Other services ............................................................
Supplies and materials .............................................
Equipment .................................................................
Land and structures ..................................................
Insurance claims and indemnities ...........................

40
5
229
57
24
3
3

38
5
217
54
23
3
2

39
5
224
56
24
3
3

99.0
99.0

191
163
111
1,360
1,361
1,421
–1,387
–1,413
–1,444
–3 ................... ...................

11.9
12.1
13.0
21.0
22.0
23.1
23.2
23.3

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

1,261
99

1,271
90

1,331
90

99.9

Total obligations ........................................................

1,360

1,361

1,421

–85

Total, offsetting collections (cash) ..................

Personnel Summary
Net budget authority and outlays:
89.00 Budget authority ............................................................
90.00 Outlays ...........................................................................

1,284
1,286

1,291
1,318

1,340
1,359

The 156 National Forests, 20 National Grasslands, and nine
land utilization projects located in 44 States, Puerto Rico
and the Virgin Islands are managed under multiple-use and
sustained-yield principles. The natural resources of timber,
minerals, range, wildlife, outdoor recreation, watershed, and
soil are used in a planned combination that will best meet
the needs of the Nation without impairing productivity of
the land or damaging the environment. These management
and utilization principles are recognized in the Multiple-Use,
Sustained-Yield Act of 1960 (16 U.S.C. 528–531) and use an
ecological approach to managing the National Forest System.
National Forest System (NFS) operations and maintenance
provide for the delivery of goods and services associated with
the principal NFS programs of land management planning,
inventory, and monitoring, recreation use, wildlife and fisheries habitat management, rangeland management, forestland
management, soil, water, and air management, minerals and
geology management, landownership management, infrastructure management, law enforcement, and general administration. These programs maintain the capability to manage natural resources in a manner consistent with ecological principles
and responsibilities. The general administration activity also
provides line management and support to programs financed
by the Forest and Rangeland Research, State and Private
Forestry, National Forest System, Wildland Fire Manage-

1996 actual

Identification code 12–1106–0–1–302

1997 est.

1998 est.

..............................
and holiday hours

19,288
304

19,308
351

19,330
344

..............................
and holiday hours

433
29

508
34

RECONSTRUCTION

AND

CONSTRUCTION

For necessary expenses of the Forest Service, not otherwise provided for, ø$174,974,000¿ $146,084,000, to remain available until expended for construction, reconstruction and acquisition of buildings
and other facilities, and for construction, reconstruction and repair
of forest roads and trails by the Forest Service as authorized by
16 U.S.C. 532–538 and 23 U.S.C. 101 and 205ø: Provided, That not
to exceed $50,000,000, to remain available until expended, may be
obligated for the construction of forest roads by timber purchasers:
Provided further, That funds appropriated under this head for the
construction of the Wayne National Forest Supervisor’s Office may
be granted to the Ohio State Highway Patrol as the federal share
of the cost of construction of a new facility to be occupied jointly
by the Forest Service and the Ohio State Highway Patrol: Provided
further, That an agreed upon lease of space in the new facility shall
be provided to the Forest Service without charge for the life of the
building¿. (Department of the Interior and Related Agencies Appropriations Act, 1997.)

244

FOREST SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
RECONSTRUCTION

AND

chaser as a requirement of the timber sale contract. (16
U.S.C. 535, 1608).

CONSTRUCTION—Continued

Object Classification (in millions of dollars)

Program and Financing (in millions of dollars)
Identification code 12–1103–0–1–302

1996 actual

1997 est.

Obligations by program activity:
Direct program:
00.01
Construction of facilities ...........................................
00.02
Road and trail construction ......................................
00.03
Flood Supplemental ...................................................

62
110
7

51
89
43

55
98
11

00.91
01.01

Total construction .................................................
Reimbursable program ..................................................

179
7

183
7

164
7

10.00

Total obligations ........................................................

186

190

171

67
233

114
182

106
153

300
–186

296
–190

259
–171

114

106

Total new budget authority (gross) ..........................

226

175

146

7
182

153

72.40

86.90
86.93
86.97
87.00

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................
Outlays from new permanent authority .........................
Total outlays (gross) .................................................

1998 est.

50
3
1

48
3
1

44
3
1

54
12
1
3
1
2
2

52
12
1
3
1
2
2

48
11
1
3
1
2
2

25.2
26.0
31.0
32.0
41.0

3
64
7
2
25
3

3
68
7
3
26
3

3
59
6
2
23
3

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

179
7

183
7

164
7

99.9

Total obligations ........................................................

186

190

171

11.9
12.1
13.0
21.0
22.0
23.1
23.2
23.3

233

11.1
11.3
11.5

1997 est.

99.0
99.0

21.40

23.90
23.95
24.40

1996 actual

Identification code 12–1103–0–1–302

1998 est.

121
186
–211

96
190
–166

120
171
–164

120

127

83
121
7

99
60
7

Personnel Summary

82
75
7

211

166

164

1996 actual

Identification code 12–1103–0–1–302

FOREST

AND

1997 est.

1998 est.

..............................
and holiday hours

1,429
32

1,346
30

1,199
27

..............................
and holiday hours

20
1

23
1

RANGELAND RESEARCH

For necessary expenses of forest and rangeland research as authorized by law, ø$179,786,000¿ $179,781,000, to remain available until
expended.

–6
–7
–7
–1 ................... ...................

88.90

Total, offsetting collections (cash) ..................

–7

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

For expenses authorized by 16 U.S.C. 1643(b), $92,000, to remain
available until expended, to be derived from the fund established
pursuant to the above Act. (Department of the Interior and Related
Agencies Appropriations Act, 1997.)

226
204

175
159

146
157

Program and Financing (in millions of dollars)

GIFTS, DONATIONS

AND

BEQUESTS FOR FOREST
RESEARCH

Identification code 12–1104–0–1–302

Facilities.—Provides for reconstruction, rehabilitation, upgrade, construction, and acquisition of facilities necessary to:
safely meet recreation demand while protecting environmental values and other resource uses of the National Forests; carry out National Forest and State and Private Forestry
programs, including fire lookouts, offices, dwellings and barracks for employee housing, service, and storage buildings,
tree nursery buildings, dams, and other forest resource management projects; manage Forest and Rangeland Research
laboratories and related facilities, and for procurement and
installation of necessary initial equipment needed to put the
facility into operating condition.
Roads and trails.—Roads and trails are essential to the
protection and management of the National Forest System,
as well as providing access to National Forest System areas
for recreation and utilization of their resources. Roads also
may be constructed and/or reconstructed by a timber pur-

AND

1996 actual

RANGELAND

1997 est.

1998 est.

00.06
01.01

Obligations by program activity:
Forest and Rangeland Research ...................................
Reimbursable program ..................................................

174
15

175
15

10.00

Total obligations ........................................................

189

190

23.90
23.95
24.40

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................

10
14
19
193
195
195
–1 ................... ...................
202
–189

209
–190

214
–190

178

180

FOREST SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE
Permanent:
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

Total new budget authority (gross) ..........................

193

195

67
189
–198

58
190
–195

53
190
–207

245

68.00
70.00

1005

Full-time equivalent of overtime and holiday hours
Reimbursable:
2001 Total compensable workyears: Full-time equivalent
employment ...............................................................

72.40

86.90
86.93
86.97

116
67
15

122
58
15

122
70
15

87.00

Total outlays (gross) .................................................

198

195

207

–13
–2

–14
–1

88.90

Total, offsetting collections (cash) ..................

–15

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

178
182

180
180

180
192

STATE

AND

PRIVATE FORESTRY

For necessary expenses of cooperating withø,¿ and providing technical and financial assistance to States, Territories, possessions, and
others, and for forest øpest¿ health management øactivities¿, cooperative forestry, and education and land conservation activities,
ø$155,461,000¿ $156,408,000, to remain available until expended, as
authorized by lawø: Provided, That of funds available under this
heading for Pacific Northwest Assistance in this or prior appropriations Acts. $750,000 shall be provided to the World Forestry Center
for purposes of continuing scientific research and other authorized
efforts regarding the land exchange efforts in the Umpqua River
Basin region¿. (Department of the Interior and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 12–1105–0–1–302

1996 actual

1997 est.

1998 est.

Object Classification (in millions of dollars)
1996 actual

Identification code 12–1104–0–1–302

11.1
11.3
11.5

1997 est.

1998 est.

91
7
1

90
7
1

91
7
1

99
22
1
5
1
1

98
21
1
6
1
1

99
22
1
5
1
1

24.0
25.5
26.0
31.0
41.0

5
1
25
7
5
2

6
1
26
7
5
2

6
1
25
7
5
2

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

174
15

175
15

99.9

Total obligations ........................................................

189

190

11.9
12.1
13.0
21.0
22.0
23.1
23.3

Direct:
Total compensable workyears:
1001
Full-time equivalent employment ..............................

67
91

77
82

Total direct program .............................................
Reimbursable program ..................................................

176
1

158
1

159
1

10.00

Total obligations ........................................................

177

159

160

40
159

26
156

23
157

21.40

23.90
23.95
24.40

1996 actual

1997 est.

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

2,242

182
–159

180
–160

158

155

156

159

156

157

131
144
132
177
159
160
–160
–171
–157
–4 ................... ...................
144

132

135

86.90
86.93
86.97

119
40
1

116
54
1

117
39
1

87.00

Total outlays (gross) .................................................

160

171

157

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–1

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

158
159

155
170

156
156

1998 est.

Distribution of budget authority by account:
State and private forestry ......................................................
Emergency pest suppression fund .........................................
2,353

4 ................... ...................
203
–177

72.40

89.00
90.00

Personnel Summary
Identification code 12–1104–0–1–302

64
112

00.91
01.01

The mission of Forest and Rangeland Research is to serve
society by developing and communicating the scientific information and technology needed to protect, manage, use, and
sustain the natural resources of the Nation’s forests and
rangelands. This information is essential for formulating policy and wisely managing and conserving both public and private forests and rangelands. Research is the key to sustaining
our forest and rangeland productivity and health while providing a quality environment. Forest and Rangeland Research
is conducted and disseminated through seven Forest and
Range Experiment Station headquarters and their laboratories, the Forest Products Laboratory, and the International
Institute of Tropical Forestry.

Obligations by program activity:
Direct program:
00.05
Forest health management .......................................
00.06
Cooperative forestry ...................................................

2,223

137
155
157
17 ................... ...................

246

FOREST SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
ties are transferred to and merged with this appropriation and subject to the same terms and conditions: Provided further, That such
funds are available for repayment of advances from other appropriations accounts previously transferred for such purposes. (Department
of the Interior and Related Agencies Appropriations Act, 1997.)

General and special funds—Continued
STATE

AND

PRIVATE FORESTRY—Continued

Program and Financing (in millions of dollars)—Continued
1996 actual

Identification code 12–1105–0–1–302

1997 est.

1998 est.

Program and Financing (in millions of dollars)
Distribution of outlays by account:
State and private forestry ......................................................
Emergency pest suppression fund .........................................

149 ................... ...................
11 ................... ...................

State and Private Forestry programs provide assistance to
manage, use, and protect forest resources on State, urban,
and private lands to meet domestic and international demands for goods and services. Assistance is provided to a
wide range of customers including all States, Puerto Rico,
the Virgin Islands, Guam, the Northern Mariana Islands and
the Trust Terrority of the Pacific.
Forest health management.—Includes Federal lands, cooperative lands, and cooperative fire management programs.
Cooperative Forestry.—Includes forest stewardship, the
stewardship incentives program, the forest legacy program,
urban and community forestry, economic action programs, and
the Pacific Northwest community assistance programs. Forest
stewardship includes: the forest resource management; and
the seedlings, nursery, and tree improvement programs. Economic action programs include the economic recovery, rural
development, and forest products conservation and recycling
programs.

Identification code 12–1115–0–1–302

11.1
11.3
11.5
11.9
12.1
13.0
21.0
23.1
23.3

1997 est.

1998 est.

Obligations by program activity:
Fire management ...........................................................
Reimbursable program ..................................................

583
27

751
27

514
27

10.00

Total obligations ........................................................

610

778

541

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................
22.50 Deficiency .......................................................................
21.40

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

18 ................... ...................
512
778
541
79 ................... ...................
609
–610

778
–778

541
–541

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
485
40.48
Portion applied to liquidate deficiencies .................. ...................

830
514
–79 ...................

43.00

Appropriation (total) .............................................
Permanent:
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

485

751

514

Total new budget authority (gross) ..........................

512

778

541

93
610
–493

210
778
–784

204
541
–535

210

204

210

68.00
70.00

1996 actual

1997 est.

00.01
01.01

Object Classification (in millions of dollars)
Identification code 12–1105–0–1–302

1996 actual

1998 est.

72.40

28
28
28
1
2
2
1 ................... ...................

24.0
25.2
26.0
31.0
32.0
41.0

30
30
30
5
5
5
1 ................... ...................
3
3
3
1
1
1
1
1
40
2
1
5
86

1
1
35
2
1
5
74

1
1
35
2
1
5
75

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

176
1

158
1

159
1

99.9

Total obligations ........................................................

177

159

160

Identification code 12–1105–0–1–302

1996 actual

1997 est.

373
93
27

626
131
27

383
125
27

87.00

Total outlays (gross) .................................................

493

784

535

–6
–21

88.90

Total, offsetting collections (cash) ..................

–27

89.00
90.00
91.90

Personnel Summary

86.90
86.93
86.97

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................
Unpaid obligations, end of year: Deficiency .................

–27

485
751
514
466
757
508
79 ................... ...................

1998 est.

Distribution of budget authority by account:
Wildland fire management .....................................................
684
11

798
13

871
14

WILDLAND FIRE MANAGEMENT
For necessary expenses for forest fire presuppression activities on
National Forest System lands, for emergency fire suppression on or
adjacent to such lands or other lands under fire protection agreement,
and for emergency rehabilitation of burned over National Forest System lands, ø$530,016,000¿ $514,311,000 to remain available until
expended: Provided, That unexpended balances of amounts previously
appropriated under any other headings for Forest Service fire activi-

211

Distribution of outlays by account:
Wildland fire management .....................................................
Forest Service fire protection ..................................................
Emergency Forest Service firefighting fund ...........................

3
515
495
259 ................... ...................
203 ................... ...................

529

514

Wildland fire management.—This appropriation provides
funding for Forest Service fire management, presuppression,
and suppression on National Forest System lands, adjacent
State and private lands, and other lands under fire protection
agreement.
Preparedness.—To protect National Forest System (NFS)
lands from damage by wildfires commensurate with the threat
to life, values at risk, public values, and management objectives.

FOREST SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE

Preparedness provides the basic fire organization and capability to prevent forest fires and to take prompt, effective
initial attack suppression operations action on wildfires. This
funding covers expenses associated with planning, prevention,
detection, information and education; pre-incident training;
equipment and supply purchase and replacement; and other
preparedness activities including the base salary and travel
of the regular Forest Service firefighting organization.
Through this program the Forest Service also assists other
Federal agencies and States with training programs, planning
assistance, sharing joint equipment use contracts and interagency fire coordination centers.
Fire Operations.—To efficiently suppress wildland fires on
or threatening National Forest System (NFS) lands or other
lands under fire protection agreement. Fire Operation provides funds for all hazardous fuel reduction program activities
including planning and implementing, mechanical treatments,
prescribed fire, and monitoring of fuel treatment accomplishments. Fuel treatment activities are performed to minimize
the potential for large, destructive wildfires.
Fire Operation funds are used to immediately and efficiently rehabilitate severely burned NFS lands to prevent
further destruction of natural resources, including soil loss
and flooding. Funds are used to increase the level of fire
preparedness when predicted or actual burning conditions exceed normal levels.
Contingency Funds.—This budget requests $5.8 billion in
government-wide contingent funding for 1998, which represents the 1991–1997 average annual emergency spending
under the BEA. This fund will be available to this and other
accounts as the need arises. Please see the Emergency Requirements for Natural Disasters account in the Funds Appropriated to the President Chapter for more detailed information. The requested amount for future years will be based
on average annual emergency funding under the BEA.
The base programs, such as Wildland Fire Management,
will have access to the proposed contingency fund once all
current appropriations in the affected account/accounts have
been obligated, and a Presidential decision has been made
to make additional funds available. The fund is meant to
be flexible enough to respond to a variety of disasters and
thus does not reserve to dedicate specific amounts within
the total for the eligible programs. The flexibility of the fund
is essential to meet the full range of Federal disaster funding
requirements.
Object Classification (in millions of dollars)
Identification code 12–1115–0–1–302

11.1
11.3
11.5
11.8

1996 actual

1997 est.

Total obligations ........................................................

610

778

541

Personnel Summary
Identification code 12–1115–0–1–302

Total compensable workyears:
1001 Full-time equivalent employment ..................................
1005 Full-time equivalent of overtime and holiday hours

PAYMENTS

1996 actual

5,909
2,507

1997 est.

1998 est.

5,953
2,613

5,998
2,546

STATES—NORTHERN SPOTTED OWL GUARANTEE

Program and Financing (in millions of dollars)
Identification code 12–1117–0–1–806

1996 actual

1997 est.

1998 est.

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................ ...................

130

125

22.00
23.95

130
–130

125
–125

60.05

New budget authority (gross), detail:
Appropriation (indefinite) ............................................... ...................

130

125

73.10
73.20

Change in unpaid obligations:
New obligations ............................................................. ...................
Total outlays (gross) ...................................................... ...................

130
–130

125
–125

86.97

Outlays (gross), detail:
Outlays from new permanent authority ......................... ...................

130

125

89.00
90.00

130
130

125
125

Payments to States, Northern Spotted Owl Guarantee.—For
payment to the States of Oregon, Washington, and California
for the benefit of counties in which National Forests are situated and that are affected by decisions related to the northern
spotted owl, pursuant to section 13982 of Public Law 103–
66 as amended by Public Law 103–443.
SOUTHEAST ALASKA ECONOMIC DISASTER FUND
Program and Financing (in millions of dollars)
Identification code 12–1108–0–1–451

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

1996 actual

1997 est.

1998 est.

80
18
62
18

83
18
65
19

81
18
63
19

178
79
18
38
9
2
5

185
83
18
20
5
2
3

181
81
18
10
2
2
1

24.0
25.2
26.0
31.0
32.0
41.0
42.0

Total personnel compensation .........................
Civilian personnel benefits .......................................
Benefits for former personnel ...................................
Travel and transportation of persons .......................
Transportation of things ...........................................
Rental payments to GSA ...........................................
Rental payments to others ........................................
Communications, utilities, and miscellaneous
charges .................................................................
Printing and reproduction .........................................
Other services ............................................................
Supplies and materials .............................................
Equipment .................................................................
Land and structures ..................................................
Grants, subsidies, and contributions ........................
Insurance claims and indemnities ...........................

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

583
27

11.9
12.1
13.0
21.0
22.0
23.1
23.2
23.3

99.9

247

22
12
6
1
1 ...................
135
372
187
79
42
21
13
7
4
1 ................... ...................
1 ................... ...................
2
1
1
751
27

514
27

23.90
23.95
24.40

40.00

110
–50
60

60
–47

13
–13

13 ...................

110 ................... ...................

86.90
86.93
87.00

27
47
–47

27
13
–20

Outlays (gross), detail:
Outlays from new current authority ..............................
23 ................... ...................
Outlays from current balances ...................................... ...................
47
20
Total outlays (gross) .................................................

248

FOREST SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
89.00
90.00

SOUTHEAST ALASKA ECONOMIC DISASTER FUND—Continued

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

3
5

3
3

Program and Financing (in millions of dollars)—Continued
Identification code 12–1108–0–1–451

89.00
90.00

1996 actual

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

1997 est.

1998 est.

110 ................... ...................
23
47
20

Public Law 104–134 established this appropriation to provide assistance to employ former timber workers in Wrangell
and Sitka and for related community development projects
in Sitka, Wrangell, and Ketchican. There is $10 million scheduled for this in 1998. In addition, a sum of $10 million will
be allocated to selected organized and unorganized boroughs
in Southeast Alaska. Distribution to the unorganized boroughs is based on the proportion of 1995 timber receipts from
each borough.

Fifty percent of the grazing fees from the National Forests
in the 16 western States, once appropriated, are used to protect and improve the productivity of the range, mainly by
revegetation, construction, and maintenance of improvements.
Capital improvement funding is currently being collected
under the authority of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1751), as amended.
Object Classification (in millions of dollars)
1996 actual

Identification code 12–5207–0–2–302

For necessary expenses of range rehabilitation, protection, and improvement, 50 per centum of all moneys received during the prior
fiscal year, as fees for grazing domestic livestock on lands in National
Forests in the sixteen Western States, pursuant to section 401(b)(1)
of Public Law 94–579, as amended, to remain available until expended, of which not to exceed 6 per centum shall be available for
administrative expenses associated with on-the-ground range rehabilitation, protection, and improvements. (Department of the Interior and
Related Agencies Appropriations Act, 1997.)

11.1
11.3

1
1
1
1 ................... ...................

11.9
25.2
26.0

Total personnel compensation ..............................
Other services ................................................................
Supplies and materials .................................................

2
1
1

1
1
2

1
1
1

Total obligations ........................................................

Personnel Summary
1996 actual

Identification code 12–5207–0–2–302

Total compensable workyears:
1001 Full-time equivalent employment ..................................
1005 Full-time equivalent of overtime and holiday hours

øLAND
Balance, start of year:
Balance, start of year ....................................................
Receipts:
02.01 Cooperative range improvements ..................................
04.00

Total: Balances and collections ....................................
Appropriation:
05.01 Range betterment fund .................................................
07.99 Total balance, end of year ............................................

1996 actual

1997 est.

1998 est.

–4
2

–3
2

10.00

Obligations by program activity:
Total obligations ............................................................

40.25

1996 actual

2
3
5
–4

1997 est.

1998 est.

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

87.00

Total outlays (gross) .................................................

1 ...................
3
3
4
–4

3
–3

1 ................... ...................

1
4
–5

1
4
–3

1
3
–3

4
3
3
1 ................... ...................
5

46
2

45
2

ACQUISITION¿

øFor expenses necessary to carry out the provisions of the Land
and Water Conservation Fund Act of 1965, as amended (16 U.S.C.
460l–4–11), including administrative expenses, and for acquisition
of land or waters, or interest therein, in accordance with statutory
authority applicable to the Forest Service, $40,575,000, to be derived
from the Land and Water Conservation Fund, to remain available
until expended.¿
øACQUISITION

OF LANDS FOR NATIONAL FORESTS SPECIAL ACTS¿

øACQUISITION

72.40

86.90
86.93

1998 est.

øFor acquisition of lands within the exterior boundaries of the
Cache, Uinta, and Wasatch National Forests, Utah; the Toiyabe National Forest, Nevada; and the Angeles, San Bernardino, Sequoia,
and Cleveland National Forests, California, as authorized by law,
$1,069,000, to be derived from forest receipts.¿

Program and Financing (in millions of dollars)
Identification code 12–5207–0–2–302

55
2

1997 est.

LAND ACQUISITION ACCOUNTS

Unavailable Collections (in millions of dollars)

01.99

1998 est.

99.9

RANGE BETTERMENT FUND

Identification code 12–5207–0–2–302

1997 est.

Personnel compensation:
Full-time permanent ..................................................
Other than full-time permanent ...............................

OF LANDS TO COMPLETE LAND EXCHANGES¿

øFor acquisition of lands, such sums, to be derived from funds
deposited by State, county, or municipal governments, public school
districts, or other public school authorities pursuant to the Act of
December 4, 1967, as amended (16 U.S.C. 484a), to remain available
until expended.¿
For acquisition of lands, waters, or interests therein, as authorized
by law, $42,336,000, to remain available until expended, to be derived
as follows: from the Land and Water Conservation Fund, as amended
(16 U.S.C. 460l, 4–11, 516–67a, and 555), $41,057,000; from forest
receipts (54 Stat. 402 and 58 Stat. 227–229), $1,069,000; and from
funds deposited by State, county, or municipal governments, public
school districts, or other public school authorities pursuant to the
Act of December 4, 1967 (16 U.S.C. 484a), $210,000. (16 U.S.C. 4601–
4–11, 4601–516–617a, 555a; P.L. 96–586; P.L. 76–589, 76–591; 78–
310, and 16 U.S.C. 484a; Department of the Interior and Related
Agencies Appropriations Act, 1997.)
Unavailable Collections (in millions of dollars)
Identification code 12–9923–0–2–300

1996 actual

Balance, start of year:
Balance, start of year .................................................... ...................
Receipts:
02.01 National forest lands under special acts .....................
2
01.99

1997 est.

1998 est.

3
04.00

Total: Balances and collections ....................................

FOREST SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE

05.01
07.99

Appropriation:
Land acquisition accounts ............................................
Total balance, end of year ............................................

–1
1

249

System purposes in the same State as the National Forest
lands conveyed in the land exchange.
Object Classification (in millions of dollars)

Program and Financing (in millions of dollars)
1996 actual

Identification code 12–9923–0–2–300
Identification code 12–9923–0–2–300

1996 actual

1997 est.

1998 est.

99.9

11.1
12.1
21.0
32.0

Total obligations ........................................................

1997 est.

1998 est.

5
5
5
1
1
1
1 ................... ...................
33
34
35
40

21.40

12
41

13
42

15
42

53
–40

55
–40

57
–41

New budget authority (gross), detail:
Appropriation (special fund, definite):
40.20
Appropriation (LWCF) .................................................
40.20
Appropriation (special fund, definite) .......................

40
1

41
1

43.00

Appropriation (total) ..................................................

70.00

Total new budget authority (gross) ..........................

25
40
–50

15
40
–48

7
41
–45

23.90
23.95
24.40

72.40

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

25
25

36
12

36
9

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

41
49

42
48

42
45

Personnel Summary
1996 actual

Identification code 12–9923–0–2–300

Total compensable workyears:
1001 Full-time equivalent employment ..................................
1005 Full-time equivalent of overtime and holiday hours

121
1

1997 est.

120
1

1998 est.

122
1

FOREST SERVICE RECEIPTS

The following tables describe the sources and uses of Forest
Service collections from the perspective of the total Forest
Service program. The earnings table is a significant measure
of the level of program activity in a given year. The disposition table shows the distribution of collections among the
various funds and accounts in the context of the overall program. The earnings data are presented on the basis of gross
collections and credits. These data may differ from amounts
in receipt accounts, which are recorded on a cash basis, net
of transfers and adjustments.
Receipts are collected from the sale and use of resources
in the National Forests and the National Grasslands. Some
receipts, including those for trust funds, are used directly
for programs under a permanent appropriation. Other receipts
are appropriated annually by Congress, collected and transferred to other Federal agencies, or deposited in the General
Fund of the U.S. Treasury, as indicated below.
EARNINGS

Distribution of budget authority by account:
Land acquisition accounts ..................................................... .................... ....................
42
Land Acquisition .....................................................................
39
40 ....................
Acquisition of Lands for National Forest, Special Acts .........
1
1 ....................
Distribution of outlays by account:
Land acquisition accounts ..................................................... .................... .................... ....................
Land Acquisition .....................................................................
48 .................... ....................
Acquisition of Lands for National Forest, Special Acts .........
1 .................... ....................
Acquisition of Lands To Complete Land Exchanges ..............
1 .................... ....................

This appropriation consolidates three land acquisition authorities for acquisition of lands, waters, or interest therein,
as authorized by law.
Land and water conservation fund.—Recreation lands and
interests are acquired within areas of the National Forest
System, wilderness, wildlife and fisheries habitat management areas, and endangered species and other areas for public outdoor recreation purposes.
Acquisition of lands for national forests (Special Acts).—
On the basis of various public laws and agreements with
certain counties in Utah, Nevada, and California, National
Forest receipts, including the portions which would normally
be paid to the State to benefit county roads and schools,
are used by the Federal Government for purchase of privately
owned lands within the National Forest boundaries to aid
in the control of soil erosion and flood damage.
Acquisition of lands to complete land exchanges.—Deposits
made by State, county, or municipal governments, public
school districts, or other public school authorities for cash
equalization of certain land exchanges are used, as appropriated, to acquire similar lands suitable for National Forest

(In millions of dollars)

1996 Actual

Collections from National Forests:
Power .......................................................................................
Minerals ..................................................................................
Land Uses ...............................................................................
Timber .....................................................................................
Brush Disposal ........................................................................
Recreation ...............................................................................
Other .......................................................................................
Credits from National Forests:
Purchaser Constructed Roads ................................................

1997 Est.

1998 Est.

2
2
4
378
18
48
153

2
2
12
361
37
48
151

[41]

[55] ....................

Total earnings, National Forests ...................................
605
Collections from National Grasslands:
Minerals ..................................................................................
15
Grazing ....................................................................................
1
Other ....................................................................................... ....................

2
2
18
365
32
48
152

618

23
1
1

24
1
1

Total earnings, National Grasslands .............................
Other Collections:
Cooperative Work Other ..........................................................
Amounts included above that are collected by other Federal
Agencies for the Forest Service:
Department of Interior (from Land and Water Conservation
Fund for land acquisition) .................................................
Department of Treasury (from customs duties for Reforestation Trust Fund) ...............................................................
Collected by Forest Service for the Department of the Interior
(Oregon and California Lands) ...............................................

613

DISPOSITION OF RECEIPTS
(Program level in millions of dollars)

1996 Actual

Permanent Special Fund Appropriations:
Timber Salvage Fund ..............................................................

195

1997 Est.

190

1998 Est.

100

250

FOREST SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................

General and special funds—Continued

21.40

FOREST SERVICE RECEIPTS—Continued
DISPOSITION OF RECEIPTS—Continued
(Program level in millions of dollars)

1996 Actual

Brush Disposal ........................................................................
Timber Roads, Purchaser Election ..........................................
Recreation Fee Collection Costs .............................................
Recreation Fee Demonstration Program .................................
Payments to States and Counties 1 ........................................
Operation and Maintenance of Quarters ................................
Road and Trail Construction ..................................................
Forest Ecosystem Restoration and Maintenance Fund (proposed) .................................................................................
Permanent Trust Fund Appropriations:
Cooperative Work Trust Fund (KV) ..........................................
Cooperative Work Other ..........................................................
Reforestation Trust Fund ........................................................
Available from Annual Appropriations:
Range Betterment Fund ..........................................................
National Forest System:
Recreation Facilities Maintenance .....................................
Midewan Tallgrass Prairie ..................................................
Land Acquisition .....................................................................
Deposits to the General Fund:
National Grasslands Receipts ................................................
National Forest Receipts .........................................................

1997 Est.

1998 Est.

18
37
32
6
6
6
2
2
2
.................... ....................
3
279
125
127
6
8
7
....................
66 ....................
.................... ....................

121

153
43
30

219
53
30

198
53
30

6
6
6
.................... .................... ....................
40
42
42
4
68

15
82

Unavailable Collections (in millions of dollars)
1996 actual

1997 est.

1998 est.

Balance, start of year:
Balance, start of year ....................................................
361
294
306
Receipts:
02.01 National forests fund, Agriculture .................................
–79 ................... ...................
02.03 Payments to States, National Forest Fund ....................
274
124
125
02.04 Timber roads, purchaser elections ................................
6
6
4
02.05 Road and trails for States, National Forest Fund
36
66
66
02.06 Timber salvage sales .....................................................
181
167
155
02.07 Deposits, brush disposal ...............................................
18
37
32
02.08 Recreational fee demonstration program ...................... ...................
3
16
02.09 Rents and charges for quarters ....................................
6
7
7
02.10 National Grasslands ......................................................
12
5
6
02.11 Miscellaneous special funds, Forest Service .................
6
3
3
02.12 National forests fund, Interior .......................................
10
9
10
02.13 Road and trails for States, National Forest Fund,
legislative proposal ................................................... ................... ...................
67
02.14 Timber salvage sales, legislative proposal ................... ................... ...................
–67
01.99

Total receipts .............................................................

470

427

730

–427
303

824
–555

684
–451

644
–392

269

233

252

537

415

411

33
555
–555

33
451
–451

33
392
–392

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

487
68

415
392
36 ...................

87.00

Total outlays (gross) .................................................

555

451

392

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

537
555

415
451

411
392

Distribution of budget authority by account:
Payments to States, National Forest Fund .............................
Payment to Minnesota ............................................................
Payments to counties, National Grasslands ..........................
Recreation fee collection costs ...............................................
Recreation fee demonstration program ..................................
Timber purchaser roads constructed by Forest Service .........
Roads and Trails for States ...................................................
Timber salvage sales ..............................................................
Expenses, brush disposal .......................................................
Restoration of Forestlands and Improvements ......................
Operation and Maintenance of Quarters ................................

279
1
4
1
0
6
36
181
18
5
6

122
122
1
1
4
4
1
1
3 ....................
6
6
66
66
167
171
37
32
1
1
7
7

Distribution of outlays by account:
Payments to States, National Forest Fund .............................
Payment to Minnesota ............................................................
Payments to counties, National Grasslands ..........................
Recreation fee collection costs ...............................................
Recreation fee demonstration program ..................................
Timber purchaser roads constructed by Forest Service .........
Timber salvage sales ..............................................................
Roads and Trails for States ...................................................
Expenses, brush disposal .......................................................
Restoration of Forestlands and Improvements ......................
Operation and Maintenance of Quarters ................................

272
1
4
1
0
3
204
36
25
1
6

122
122
1
1
4
4
1
1
3 ....................
6
4
203
154
66
66
37
32
1
1
7
7

–411

05.99
07.99

New budget authority (gross), detail:
Appropriation (special fund, indefinite) ........................

233
411

424

Total: Balances and collections ....................................
831
721
Appropriation:
05.01 Forest Service permanent appropriations ......................
–537
–415
05.02 Forest Service permanent appropriations, legislative
proposal ..................................................................... ................... ...................

269
415

72.40

12
95

FOREST SERVICE PERMANENT APPROPRIATIONS

02.99

60.25

1 Additional payments in 1997 and 1998 are through the Payments to States—Northern Spotted Owl Guarantee
account.

Identification code 12–9921–0–2–999

23.90
23.95
24.40

287
537

Summary of Budget Authority and Outlays
04.00

Subtotal appropriation ...................................................
Total balance, end of year ............................................

–537
294

–415
306

–16

Program and Financing (in millions of dollars)
Identification code 12–9921–0–2–999

00.01
00.02
00.03
00.04
00.05
00.06
00.07
00.08
00.09
00.10
00.11
10.00

1996 actual

Obligations by program activity:
Payments to States, National forest fund .....................
272
Payment to Minnesota ...................................................
1
Payments to counties, National Grasslands .................
4
Recreation fee collection costs ......................................
1
Recreation demonstration pilot project ......................... ...................
Timber purchaser roads constructed by Forest Service
3
Timber salvage sales .....................................................
204
Roads and trails for States ...........................................
36
Expenses, brush disposal ..............................................
25
Restoration of forest lands and improvements ............
1
Operation and maintenance of quarters .......................
6
Total obligations ........................................................

555

1997 est.

1998 est.

122
122
1
1
4
4
1
1
3 ...................
6
4
203
154
66
66
37
32
1
1
7
7
451

392

(in millions of dollars)

1996 actual

1997 est.

Enacted/requested:
Budget Authority .....................................................................
537
415
Outlays ....................................................................................
555
451
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

537
555

415
451

1998 est.

411
392
16
16
427
408

Fees, operation and maintenance of recreation facilities.—
Fees collected at developed recreation facilities; 50 percent
of the fees collected are available for use, when appropriated,
for operation and maintenance of fee facilities.
Operation and maintenance of quarters.—Quarters rental
deductions are collected from employees occupying Forest
Service facilities. Amounts are deposited into a special fund
and are available for the maintenance and operation of employee-occupied quarters. (5 U.S.C. 5911)
Resource management, timber receipts.—Funds in this special account are available for trail maintenance, reconstruc-

FOREST SERVICE—Continued
Federal Funds—Continued

DEPARTMENT OF AGRICULTURE

tion, and construction; wildlife and fisheries habitat management; soil, water, and air management; cultural/heritage resource management; wilderness management; reforestation;
and timber sale administration and management.
Recreation fee demonstration program.—Pursuant to Sec.
315 of Title III—General Provisions, Omnibus Consolidated
Rescissions and Appropriations Act of 1996, Public Law 104–
134 of April 26, 1996, amounts collected at the fee demonstration areas, sites, or projects are available for maintenance
and development of recreation facilities.
Midewin National Tallgrass Prairie rental fee account.—
Monies received under a special use authorization (issued
under subsection (b) of Public Law 104–106, Title XXIX, Subtitle A, Section 2915, after distribution to the State of Illinois
and affected counties pursuant to the Act of May 23, 1908)
are available to cover the cost to the United States of prairie
improvement work at the Midewin National Tallgrass Prairie.
Receipts for construction of administrative improvements,
Taos, New Mexico land conveyance, Forest Service.—Funds
collected from the sale of land, when appropriated, are available to construct administrative facilities at Taos, New Mexico. (Sec. 1(b)(1), Public Law 103–132)
Payment to Minnesota.—At the close of each fiscal year,
the State of Minnesota is paid 0.75 percent of the appraised
value of certain Superior National Forest lands in the counties of Cook Lake and St. Louis for distribution to these
counties (16 U.S.C. 577g).
Payments to counties, National Grasslands.—Of the revenues received in a calendar year from the use of National
Grasslands, 25 percent is paid to the counties in which such
land is situated for funding local schools and roads (7 U.S.C.
1012).
Payments to States, National Forests Fund.—With minor
exceptions, 25 percent of the money received from the National Forests, including all the collections under 16 U.S.C.
576b, and all amounts allowed any timber purchaser for construction of roads, is paid at the end of each fiscal year
to the States for funding local schools and roads of the county
in which such forests are situated (16 U.S.C. 500 and 97
Stat. 1123).
Expenses, brush disposal.—Funds from payments by purchasers of National Forest timber to dispose of or treat slash
and other debris that result from cutting operations (16
U.S.C. 490).
Licensee programs, Forest Service.—Funds from fees for the
use of characters by private enterprises are collected under
regulations promulgated by the Secretary as follows:
Smokey Bear.—For furthering the nationwide forest fire
prevention campaign (16 U.S.C. 580(2)).
Woodsy Owl.—For promoting wise use of the environment
and programs which foster maintenance and improvement
of environmental quality (16 U.S.C. 580(1)).
Restoration of forest lands and improvements.—Funds from
claim settlements involving damage to lands or improvements
and from forfeiture of deposits and bonds by permittees and
timber purchasers are used for the restoration made necessary by the action which led to the settlement of forfeiture
(16 U.S.C. 579c).
Timber purchaser roads constructed by Forest Service.—
Funds from timber receipts for Government constructed permanent roads for purchasers of timber who qualify as small
businesses and elect to have the Forest Service construct the
roads designated under the timber sale contract where costs
exceed $20,000 (16 U.S.C. 472a(i)).
Strawberry Valley land exchange.—Funds from the sale or
exchange of authorized lands and the need for administrative
sites and improvements by the Uinta National Forest.
Recreation fee collection costs.—Under authority of Section
10002(b) of the Omnibus Budget Reconciliation Act of 1993
(P.L. 103–66), which amended Section 4(i)(1) of the L&WCF

251

Act, the Secretaries of Agriculture and Interior are authorized
to withhold a portion of all recreation fees collected (not to
exceed 15 percent), to be available during the current fiscal
year, without further appropriation to cover fee collection
costs.
Tongass timber supply fund.—Funds from sales of Alaska
timber to maintain the timber supply from the Tongass National Forest at a specified level (16 U.S.C. 539d).
Forest Ecosystem Restoration and Maintenance Fund
(FERM).—Proposed legislation, to be transmitted later, would
transfer an estimated $55 million of receipts from the Salvage
Sale Fund to the new Forest Ecosystem Restoration and
Maintenance Fund, which would fund a broad range of ecosystem enhancements. The proposed legislation also would
direct that receipts collected in the Road and Trail Fund
(10 percent of National Forest System revenues) be transferred in 1998 and subsequent years to the new FERM.
Timber salvage sales.—Funds salvage timber sale preparation. Expenditures from the timber salvage sale fund for preparing and offering new sales are limited to $100 million
for 1998.
Purchaser Road Credits.—The budget eliminates purchaser
road credits beginning in 1998. These credits are an unnecessary complicating factor to the Forest Service fiscal and budgetary systems. To compensate for the future unavailability
of road credits, purchasers will be required to construct or
reconstruct any necessary roads as a condition of the sale
contract. Their competitive timber bids are expected to decline
by the amount of the credits. This result is simpler to administer.
Object Classification (in millions of dollars)
1996 actual

Identification code 12–9921–0–2–999

1997 est.

1998 est.

11.1
12.1
41.0

Personnel compensation: Full-time permanent .............
Civilian personnel benefits ............................................
Grants, subsidies, and contributions ............................

209
37
309

179
32
240

169
30
193

99.9

Total obligations ........................................................

555

451

392

Personnel Summary
Identification code 12–9921–0–2–999

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

1996 actual

1997 est.

4,177

3,912

1998 est.

3,352

FOREST SERVICE PERMANENT APPROPRIATIONS
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
Identification code 12–9921–4–2–999

1996 actual

1997 est.

1998 est.

00.05

Obligations by program activity:
Recreation demonstration pilot project ......................... ................... ...................

10.00

Total obligations (object class 25.4) ........................ ................... ...................

22.00
23.95

16
–16

60.25

New budget authority (gross), detail:
Appropriation (special fund, indefinite) ........................ ................... ...................

73.10
73.20

16
–16

86.97

Outlays (gross), detail:
Outlays from new permanent authority ......................... ................... ...................

89.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................

252

FOREST SERVICE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
FOREST SERVICE PERMANENT APPROPRIATIONS—Continued
Program and Financing (in millions of dollars)—Continued
Identification code 12–9921–4–2–999

90.00

1996 actual

1997 est.

Outlays ........................................................................... ................... ...................

1998 est.

This is one of several proposals in the budget to charge
fees to users directly availing themselves of, or subject to,
a government service, program, or activity, in order to cover
the government’s costs. Legislation will be proposed to authorize the fees and, upon enactment of the authorization, a budget amendment to the current appropriations language will
be proposed to make the fees available for expenditure. Because the current requirements of the Budget Enforcement
Act of 1990 make it difficult to fund discretionary programs
with receipts that are not authorized in appropriations acts,
the Administration is proposing a change in the requirements
to facilitate the enactment of proposals such as this one.
Intragovernmental funds:
WORKING CAPITAL FUND
Program and Financing (in millions of dollars)
Identification code 12–4605–0–4–302

1996 actual

1997 est.

1998 est.

00.01
00.02

Obligations by program activity:
Operating expenses ........................................................
Capital investment ........................................................

136
58

73
66

73
58

10.00

Total obligations ........................................................

194

139

131

119
213

138
142

141
134

332
–194

280
–139

275
–131

138

141

144

213

142

134

21.90

23.90
23.95
24.90

68.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................
New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

The forestry-related supply and support services include:
Equipment Services.—The fund owns, operates, maintains,
replaces, and repairs common use motor driven and similar
equipment. This equipment is rented to administrative units,
that is, National Forests, research experiment stations, and
other units, and, in some cases, to other agencies, at rates
which recover the cost of operation, repair and maintenance,
management, and depreciation. The rates also include an increment which provides additional cash which, when added
to depreciation earnings and the residual value of equipment,
provides sufficient funds to replace the equipment.
Aircraft Services.—The fund operates, maintains, and repairs Forest Service owned aircraft used in fire surveillance
and suppression and in other Forest Service programs. The
aircraft are rented to National Forests, research experiment
stations, and in some cases to other agencies, at rates which
recover the cost of depreciation, operation, maintenance, repair, and improvements in the airworthiness of the aircraft.
Aircraft replacement costs are financed from either appropriated funds or the Forest Service Working Capital Fund,
or a combination of both.
Supply Services.—The fund operates the following common
services:
Photo reproduction laboratories that store, reproduce, and
supply aerial photographs, aerial maps, and other photographs of National Forest lands. The photographic reproductions are sold to National Forests, experiment stations, and
others at cost.
Sign shops that manufacture and supply special signs for
the National Forests for use in regulating traffic and as information to the public and other users of the National Forests.
The signs are sold to National Forests and experiment stations at cost.
Subsistence services that prepare and serve meals to Forest
Service crews working in areas where adequate public restaurant facilities are not available.
Seed supply services that provide tree seed for direct seeding or sowing in nurseries for the production of trees. Includes
purchase or collection of cones, extraction of seeds, cleaning
and testing, and storage and delivery. Operates in conjunction
with tree nurseries; that is, forest tree nurseries and cold
storage facilities for storage of tree seedlings. Tree seedlings
are sold to National Forests, State foresters, and other cooperators at cost.
Statement of Operations (in millions of dollars)

Change in unpaid obligations:
72.90 Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................

86.93
86.97

Outlays (gross), detail:
Outlays from current balances ......................................
Outlays from new permanent authority .........................

87.00

Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

89.00
90.00

1995 actual

1996 actual

75
194
–228

41
139
–142

38
131
–134

0101
0102

Revenue ...................................................
Expense ....................................................

156
–110

152
–136

140
–139

134
–131

0109

Net income ..............................................

Identification code 12–4605–0–4–302

1997 est.

1998 est.

Balance Sheet (in millions of dollars)
119 ................... ...................
109
142
134
228

–213

142

–142

134

–134

The Working Capital Fund is a self-sustaining revolving
fund that provides services to National Forests, to research
experiment stations, to other Federal agencies when necessary, to State and private agencies as provided by law,
and to persons who cooperate with the Forest Service in fire
control and other authorized programs.

Identification code 12–4605–0–4–302

1995 actual

1996 actual

1997 est.

1998 est.

193

198

203

208

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
Other Federal assets:
1802
Inventories and related properties .....
1803
Property, plant and equipment, net

..................

27
261

28
329

28
359

29
389

1999

498

555

590

626

1
11

..................
13

Total assets ........................................
LIABILITIES:
2102 Federal liabilities: Interest payable ........
2201 Non-Federal liabilities: Accounts payable
2999

Total liabilities ....................................
NET POSITION:
3300 Cumulative results of operations ............

484

542

577

613

3999

484

542

577

613

Total net position ................................

ADMINISTRATIVE PROVISIONS, FOREST SERVICE

DEPARTMENT OF AGRICULTURE
4999

Total liabilities and net position ............

496

555

590

626

Object Classification (in millions of dollars)

Cooperative Work trust fund ...................................................

437

253
219

198

13.0
21.0
23.1
23.2
23.3
25.2
26.0
31.0
99.0

Benefits for former personnel ........................................
Travel and transportation of persons ............................
Rental payments to GSA ................................................
Rental payments to others ............................................
Communications, utilities, and miscellaneous charges
Other services ................................................................
Supplies and materials .................................................
Equipment ......................................................................
Subtotal, reimbursable obligations ...............................

1
1
1
1
2
30
28
130
194

1
1
1
1
1
16
20
98
139

1
1
1
1
1
16
20
90
131

Reforestation trust fund.—Amounts from this account are
used for reforestation as authorized by 16 U.S.C. 1606a (d)
and (e).
Cooperative work trust fund.—Advances, including deposits
from purchasers of timber, are received and used for specified
work in forest investigations, protection, and improvement
of the National Forest System, including protection, reforestation, and administration of private lands adjacent to National Forests (7 U.S.C. 2269; 16 U.S.C. 498, 535, 565a, 572,
572a, 576b, 1643; and 31 U.S.C. 1321).

99.9

Total obligations ........................................................

194

139

131

Object Classification (in millions of dollars)

1996 actual

Identification code 12–4605–0–4–302

1997 est.

1998 est.

1996 actual

Identification code 12–9974–0–7–302

Note.—Personnel totals are included with personnel totals of all other Forest Service programs.

1997 est.

1998 est.

11.1
11.3
11.5

Trust Funds

71
11
4

76
12
4

67
10
4

11.9
12.1
13.0
21.0
22.0
23.1
23.2
23.3
25.2
26.0
31.0
32.0
41.0
44.0

Total personnel compensation ..............................
86
Civilian personnel benefits ............................................
19
Benefits for former personnel ........................................
3
Travel and transportation of persons ............................
2
Transportation of things ................................................
1
Rental payments to GSA ................................................
2
Rental payments to others ............................................
3
Communications, utilities, and miscellaneous charges
4
Other services ................................................................
312
Supplies and materials .................................................
21
Equipment ......................................................................
3
Land and structures ......................................................
4
Grants, subsidies, and contributions ............................ ...................
Refunds ..........................................................................
1

92
21
3
4
1
2
4
6
119
30
4
7
1
1

81
18
2
3
1
2
3
6
112
27
4
6
1
1

295

267

FOREST SERVICE TRUST FUNDS
Unavailable Collections (in millions of dollars)
Identification code 12–9974–0–7–302

1996 actual

1997 est.

1998 est.

Balance, start of year:
01.99 Balance, start of year .................................................... ................... ................... ...................
Receipts:
02.01 Forest Service Cooperative fund ....................................
201
196
204
02.02 Transfers from general fund of amounts equal to
certain customs duties .............................................
30
30
30
02.99

Total receipts .............................................................
231
226
234
Appropriation:
05.01 Forest Service trust funds .............................................
–231
–226
–234
07.99 Total balance, end of year ............................................ ................... ................... ...................

99.9

Total obligations ........................................................

Program and Financing (in millions of dollars)
Identification code 12–9974–0–7–302

1996 actual

Personnel Summary
1997 est.

1998 est.

Obligations by program activity:
Total obligations ............................................................

461

295

267

412
231

182
226

113
234

10.00

461

Identification code 12–9974–0–7–302

1001
1005

Total compensable workyears:
Full-time equivalent employment ..................................
Full-time equivalent of overtime and holiday hours

1996 actual

2,638
104

1997 est.

1998 est.

2,842
143

3,046
120

21.40

23.90
23.95
24.40

60.27

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................
New budget authority (gross), detail:
Appropriation (trust fund, indefinite) ............................

643
–461

416
–295

349
–267

182

113

231

226

234

59
461
–468

52
295
–245

102
267
–247

102

ALLOCATIONS

AND

ALLOTMENTS RECEIVED FROM OTHER ACCOUNTS

Note.—Obligations incurred under allocations or allotments from other accounts are included in the schedule of the parent appropriations, as follows:
Agriculture:
Agricultural Research Service.
Natural Resources Conservation Service:
Watershed and flood prevention operations.
Resource conservation and development.
Watershed planning.
River basin surveys and investigations.
Conservation Reserve Program.
Department Administration:
Hazardous waste management.
Rural Housing and Community Development Service; Rural community fire protection grants.
Transportation: Federal Highway Administration, Highway Trust Fund.
Labor: Employment and Training Administration, Training and employment services.

122

72.40

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

231
237

226
19

234
13

87.00

Total outlays (gross) .................................................

468

245

247

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

231
467

226
245

234
247

Distribution of budget authority by account:
Reforestation trust fund .........................................................
Cooperative Work trust fund ...................................................

30
201

30
151

30
152

Distribution of outlays by account:
Reforestation trust fund .........................................................

ADMINISTRATIVE PROVISIONS, FOREST
SERVICE
Appropriations to the Forest Service for the current fiscal year
shall be available for: (a) purchase of not to exceed 159 passenger
motor vehicles of which ø14¿ 22 will be used primarily for law enforcement purposes and of which ø149¿ 156 shall be for replacement;
acquisition of ø10¿ 25 passenger motor vehicles from excess sources,
and hire of such vehicles; operation and maintenance of aircraft,
the purchase of not to exceed two for replacement only, and acquisition of ø20¿ sufficient aircraft from excess sources to maintain the
operable fleet at 198 aircraft for use in State and Forest Service
wildland fire programs and other Forest Service programs; notwithstanding other provisions of law, existing aircraft being replaced may
be sold, with proceeds derived or trade-in value used to offset the

254

ADMINISTRATIVE PROVISIONS, FOREST SERVICE—Continued

purchase price for the replacement aircraft; (b) services pursuant
to 7 U.S.C. 2225, and not to exceed $100,000 for employment under
5 U.S.C. 3109; (c) purchase, erection, and alteration of buildings
and other public improvements (7 U.S.C. 2250); (d) acquisition of
land, waters, and interests therein, pursuant to 7 U.S.C. 428a; (e)
for expenses pursuant to the Volunteers in the National Forest Act
of 1972 (16 U.S.C. 558a, 558d, 558a note); øand¿ (f) the cost of
uniforms as authorized by 5 U.S.C. 5901–5902; and (g) for debt collection contracts in accordance with 31 U.S.C. 3718(c).
øNone of the funds made available under this Act shall be obligated
or expended to change the boundaries of any region, to abolish any
region, to move or close any regional office for research, State and
private forestry, or National Forest System administration of the
Forest Service, Department of Agriculture, or to implement any reorganization, ‘‘reinvention’’ or other type of organizational restructuring
of the Forest Service, other than the relocation of the Regional Office
for Region 5 of the Forest Service from San Francisco to excess
military property at Mare Island, Vallejo, California, without the
consent of the House and Senate Committees on Appropriations.¿
øAny funds available to the Forest Service may be used for retrofitting Mare Island facilities to accommodate the relocation: Provided,
That funds for the move must come from funds otherwise available
to Region 5: Provided further, That any funds to be provided for
such purposes shall only be available upon approval of the House
and Senate Committees on Appropriations.¿
Any appropriations or funds available to the Forest Service may
be advanced to the Wildland Fire Management appropriation and
may be used for forest firefighting and the emergency rehabilitation
of burned-over lands under its jurisdiction.
Funds appropriated to the Forest Service shall be available for
assistance to or through the Agency for International Development
and the Foreign Agricultural Service in connection with forest and
rangeland research, technical information, and assistance in foreign
countries, and shall be available to support forestry and related natural resource activities outside the United States and its territories
and possessions, including technical assistance, education and training, and cooperation with United States and international organizations.
øNone of the funds made available to the Forest Service under
this Act shall be subject to transfer under the provisions of section
702(b) of the Department of Agriculture Organic Act of 1944 (7 U.S.C.
2257) or 7 U.S.C. 147b unless the proposed transfer is approved
in advance by the House and Senate Committees on Appropriations
in compliance with the reprogramming procedures contained in House
Report 103–551.¿
øNone of the funds available to the Forest Service may be reprogrammed without the advance approval of the House and Senate
Committees on Appropriations in accordance with the procedures contained in House Report 103–551.¿
øNo funds appropriated to the Forest Service shall be transferred
to the Working Capital Fund of the Department of Agriculture without the approval of the Chief of the Forest Service.¿
Notwithstanding any other provision of the law, any appropriations
or funds available to the Forest Service may be used to disseminate
program information to private and public individuals and organizations through the use of nonmonetary items of nominal value and
to provide nonmonetary awards of nominal value and to incur necessary expenses for the nonmonetary recognition of private individuals and organizations that make contributions to Forest Service
programs.
Notwithstanding any other provision of law, money collected, in
advance or otherwise, by the Forest Service under authority of section
101 of Public Law 93–153 (30 U.S.C. 185(1)) as reimbursement of
administrative and other costs incurred in processing pipeline rightof-way or permit applications and for costs incurred in monitoring
the construction, operation, maintenance, and termination of any
pipeline and related facilities, may be used to reimburse the applicable appropriation to which such costs were originally charged.
Funds available to the Forest Service shall be available to conduct
a program of not less than $1,000,000 for high priority projects within
the scope of the approved budget which shall be carried out by the
Youth Conservation Corps as authorized by the Act of August 13,
1970, as amended by Public Law 93–408.
øNone of the funds available in this Act shall be used for timber
sale preparation using clearcutting in hardwood stands in excess
of 25 percent of the fiscal year 1989 harvested volume in the Wayne
National Forest, Ohio: Provided, That this limitation shall not apply
to hardwood stands damaged by natural disaster: Provided further,

THE BUDGET FOR FISCAL YEAR 1998
That landscape architects shall be used to maintain a visually pleasing forest.¿
Any money collected from the States for fire suppression assistance
rendered by the Forest Service on non-Federal lands not in the vicinity of National Forest System lands shall be used to reimburse the
applicable appropriation and shall remain available until expended
as the Secretary may direct in conducting activities authorized by
16 U.S.C. 2101 (note), 2101–2110, 1606, and 2111.
Of the funds available to the Forest Service, $1,500 is available
to the Chief of the Forest Service for official reception and representation expenses.
Notwithstanding any other provision of law, the Forest Service
is authorized to employ or otherwise contract with persons at regular
rates of pay, as determined by the Service, to perform work occasioned by emergencies such as fires, storms, floods, earthquakes or
any other unavoidable cause without regard to Sundays, Federal holidays, and the regular workweek.
øTo the greatest extent possible, and in accordance with the Final
Amendment to the Shawnee National Forest Plan, none of the funds
available in this Act shall be used for preparation of timber sales
using clearcutting or other forms of even aged management in hardwood stands in the Shawnee National Forest, Illinois.¿
Pursuant to sections 405(b) and 410(b) of Public Law 101–593,
funds up to $1,000,000 for matching funds shall be available for
the National Forest Foundation on a one-for-one basis to match private contributions for projects on or benefitting National Forest System lands or related to Forest Service programs. Section 405(b) and
section 410(b) are further amended as follows: delete ‘‘for a period
of five years beginning October 1, 1992’’.
Pursuant to section 2(b)(2) of Public Law 98–244, up to $1,000,000
of the funds available to the Forest Service shall be available for
matching funds, as authorized in 16 U.S.C. 3701–3709, on a onefor-one basis to match private contributions for projects on or benefitting National Forest System lands or related to Forest Service programs.
Funds appropriated to the Forest Service shall be available for
interactions with and providing technical assistance to rural communities for sustainable rural development purposes.
Notwithstanding any other provision of law, 80 percent of the funds
appropriated to the Forest Service in the National Forest System
and Reconstruction and Construction accounts and planned to be
allocated to activities under the ‘‘Jobs in the Woods’’ program for
projects on National Forest land in the State of Washington may
be granted directly to the Washington State Department of Fish
and Wildlife for accomplishment of planned projects. Twenty percent
of said funds shall be retained by the Forest Service for planning
and administering projects. Project selection and prioritization shall
be accomplished by the Forest Service with such consultation with
the State of Washington as the Forest Service deems appropriate.
Funds appropriated to the Forest Service shall be available for
payments to counties within the Columbia River Gorge National Scenic Area, pursuant to sections 14(c)(1) and (2), and section 16(a)(2)
of Public Law 99–663.
Funds appropriated to the Forest Service shall be available, as
determined by the Secretary, for payments to Del Norte County, California, pursuant to sections 13(e) and 14 of the Smith River National
Recreation Area Act (Public Law 101–612).
øThe Secretary of Agriculture shall by March 31, 1997 report to
the Committees on Appropriations of the House of Representatives
and the Senate on the status and disposition of all salvage timber
sales started under the authority of Section 2001 of Public Law 104–
19 and subsequently withdrawn or delayed and completed under different authorities as a consequence of the July 2, 1996 directive
on the implementation of Section 2001 issued by the Secretary.¿
øThe Pacific Northwest Research Station Silviculture Laboratory
in Bend, Oregon is hereby named the ‘‘Robert W. Chandler Building’’.¿
For purposes of the Southeast Alaska Economic Disaster Fund as
set forth in section 101(c) of Public Law 104–134, the direct grants
provided in subsection (c) shall be considered direct payments for
purposes of all applicable law except that these direct grants may
not be used for lobbying activities.
øNo employee of the Department of Agriculture may be detailed
or assigned from an agency or office funded by this Act to any other
agency or office of the Department for more than 30 days unless
the individual’s employing agency or office is fully reimbursed by
the receiving agency or office for the salary and expenses of the

TITLE VII—GENERAL PROVISIONS

DEPARTMENT OF AGRICULTURE
employee for the period of assignment.¿ (Department of the Interior
and Related Agencies Appropriations Act, 1997.)

GENERAL FUND RECEIPT ACCOUNTS
(in millions of dollars)
1996 actual

1997 est.

1998 est.

Offsetting receipts from the public:
12–181100 National grasslands .........................................
12–222100 National forest fund .........................................

4
68

15
82

12
95

General Fund Offsetting receipts from the public .....................

107

OTHER CONSOLIDATED RECEIPT ACCOUNTS
(in millions of dollars)
1996 actual

12–977210

Miscellaneous contributed funds .....................

1997 est.

1998 est.

22 ................... ...................

TITLE VII—GENERAL PROVISIONS
SEC. 701. Within the unit limit of cost fixed by law, appropriations
and authorizations made for the Department of Agriculture for the
fiscal year ø1997¿ 1998 under this Act shall be available for the
purchase, in addition to those specifically provided for, of not to
exceed ø667¿ 394 passenger motor vehicles, of which ø643¿ 391 shall
be for replacement only, and for the hire of such vehicles.
SEC. 702. Funds in this Act available to the Department of Agriculture shall be available for uniforms or allowances øtherefore¿
therefor as authorized by law (5 U.S.C. 5901–5902).
SEC. 703. Not less than $1,500,000 of the appropriations of the
Department of Agriculture in this Act for research and service work
authorized by the Acts of August 14, 1946, and July 28, 1954 (7
U.S.C. 427, 1621–1629), and by chapter 63 of title 31, United States
Code, shall be available for contracting in accordance with said Acts
and chapter.
SEC. 704. The cumulative total of transfers to the Working Capital
Fund for the purpose of accumulating growth capital for data services
and National Finance Center operations shall not exceed $2,000,000:
Provided, That no funds in this Act appropriated to an agency of
the Department shall be transferred to the Working Capital Fund
without the approval of the agency administrator.
SEC. 705. New obligational authority provided for the following
appropriation items in this Act shall remain available until expended
(7 U.S.C. 2209b): Animal and Plant Health Inspection Service, the
contingency fund to meet emergency conditions, fruit fly program,
and integrated systems acquisition project; Farm Service Agency, salaries and expenses funds made available to county committees; and
Foreign Agricultural Service, middle-income country training program.
New obligational authority for the boll weevil program; up to 10
percent of the screwworm program of the Animal and Plant Health
Inspection Service; Food Safety and Inspection Service, field automation and information management project; funds appropriated for
rental payments; funds for the Native American institutions endowment fund in the Cooperative State Research, Education, and Extension Service, and funds for the competitive research grants (7 U.S.C.
450i(b)), shall remain available until expended.
SEC. 706. No part of any appropriation contained in this Act shall
remain available for obligation beyond the current fiscal year unless
expressly so provided herein.
SEC. 707. Not to exceed $50,000 of the appropriations available
to the Department of Agriculture in this Act shall be available to
provide appropriate orientation and language training pursuant to
Public Law 94–449.
SEC. 708. No funds appropriated by this Act may be used to pay
negotiated indirect cost rates on cooperative agreements or similar
arrangements between the United States Department of Agriculture
and nonprofit institutions in excess of 10 percent of the total direct
cost of the agreement when the purpose of such cooperative arrangements is to carry out programs of mutual interest between the two

255

parties. This does not preclude appropriate payment of indirect costs
on grants and contracts with such institutions when such indirect
costs are computed on a similar basis for all agencies for which
appropriations are provided in this Act.
SEC. 709. Notwithstanding any other provision of this Act, commodities acquired by the Department in connection with Commodity
Credit Corporation and section 32 price support operations may be
used, as authorized by law (15 U.S.C. 714c and 7 U.S.C. 612c), to
provide commodities to individuals in cases of hardship as determined
by the Secretary of Agriculture.
øSEC. 710. None of the funds in this Act shall be available to
reimburse the General Services Administration for payment of space
rental and related costs in excess of the amounts specified in this
Act; nor shall this or any other provision of law require a reduction
in the level of rental space or services below that of fiscal year
1996 or prohibit an expansion of rental space or services with the
use of funds otherwise appropriated in this Act. Further, no agency
of the Department of Agriculture, from funds otherwise available,
shall reimburse the General Services Administration for payment
of space rental and related costs provided to such agency at a percentage rate which is greater than is available in the case of funds
appropriated in this Act.¿
SEC. ø711¿ 710. None of the funds in this Act shall be available
to restrict the authority of the Commodity Credit Corporation to
lease space for its own use or to lease space on behalf of other
agencies of the Department of Agriculture when such space will be
jointly occupied.
SEC. ø712¿ 711. With the exception of grants awarded under the
Small Business Innovation Development Act of 1982, Public Law
97–219, as amended (15 U.S.C. 638), none of the funds in this Act
shall be available to pay indirect costs on research grants awarded
competitively by the Cooperative State Research, Education, and Extension Service that exceed ø14¿ 25 percent of total Federal funds
provided under each award.
SEC. ø713¿ 712. Notwithstanding any other provisions of this Act,
all loan levels provided of this Act shall be considered estimates,
not limitations.
SEC. ø714¿ 713. Appropriations to the Department of Agriculture
for the cost of direct and guaranteed loans made available in fiscal
year ø1997¿ 1998 shall remain available until expended to cover
obligations made in fiscal year ø1997¿ 1998 for the following accounts: the rural development loan fund program account; the Rural
Telephone Bank program account; the rural electrification and telecommunications loans program account; and the rural economic development loans program account.
SEC. ø715¿ 714. Such sums as may be necessary for fiscal year
ø1997¿ 1998 pay raises for programs funded by this Act shall be
absorbed within the levels appropriated in this Act.
øSEC. 716. (a) COMPLIANCE WITH BUY AMERICAN ACT.—None of
the funds made available in this Act may be expended by an entity
unless the entity agrees that in expending the funds the entity will
comply with sections 2 through 4 of the Act of March 3, 1933 (41
U.S.C. 10a–10c; popularly known as the ‘‘Buy American Act’’).
(b) SENSE OF CONGRESS; REQUIREMENT REGARDING NOTICE.—
(1) PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS.—
In the case of any equipment or product that may be authorized
to be purchased with financial assistance provided using funds
made available in this Act, it is the sense of the Congress that
entities receiving the assistance should, in expending the assistance, purchase only American-made equipment and products.
(2) NOTICE TO RECIPIENTS OF ASSISTANCE.—In providing financial
assistance using funds made available in this Act, the head of
each Federal agency shall provide to each recipient of the assistance a notice describing the statement made in paragraph (1) by
the Congress.
(c) PROHIBITION OF CONTRACTS WITH PERSONS FALSELY LABELING
PRODUCTS AS MADE IN AMERICA.—If it has been finally determined
by a court or Federal agency that any person intentionally affixed
a label bearing a ‘‘Made in America’’ inscription, or any inscription
with the same meaning, to any product sold in or shipped to the
United States that is not made in the United States, the person
shall be ineligible to receive any contract or subcontract made with
funds made available in this Act, pursuant to the debarment, suspension, and ineligibility procedures described in sections 9.400 through
9.409 of title 48, Code of Federal Regulations.¿
SEC. ø717¿ 715. Notwithstanding the Federal Grant and Cooperative Agreement Act, marketing services of the Agricultural Marketing
Service and the Animal and Plant Health Inspection Service may

256

TITLE VII—GENERAL PROVISIONS—Continued

use cooperative agreements to reflect a relationship between Agricultural Marketing Service or the Animal and Plant Health Inspection
Service and a State or Cooperator to carry out agricultural marketing
programs or to carry out programs to protect the Nation’s animal
and plant resources.
SEC. ø718. None of the funds in this Act may be used to retire
more than 5% of the Class A stock of the Rural Telephone Bank
or to maintain any account or subaccount within the accounting
records of the Rural Telephone Bank the creation of which has not
specifically been authorized by statute: Provided, That notwithstanding¿ 716. Notwithstanding any other provision of law, none of the
funds appropriated or otherwise made available in this Act may be
used to transfer to the Treasury or to the Federal Financing Bank
any unobligated balance of the Rural Telephone Bank telephone liquidating account which is in excess of current requirements and
such balance shall receive interest as set forth for financial accounts
in section 505(c) of the Federal Credit Reform Act of 1990.
øSEC. 719. None of the funds appropriated or otherwise made available by this Act may be used to provide food stamp benefits to
households whose benefits are calculated using a standard deduction
greater than the standard deduction in effect for fiscal year 1995.¿
øSEC. 720. None of the funds made available in this Act may
be used to provide assistance to, or to pay the salaries of personnel
who carry out a market promotion/market access program pursuant
to section 203 of the Agricultural Trade Act of 1978 (7 U.S.C. 5623)
that provides assistance to the United States Mink Export Development Council or any mink industry trade association.¿
øSEC. 721. None of the funds appropriated or otherwise made available by this Act, or made available through the Commodity Credit
Corporation, shall be used to enroll in excess of 130,000 acres in
the fiscal year 1997 wetlands reserve program, as authorized by
section 3837 of title 16, United States Code: Provided, That additional
acreage may be enrolled in the program to the extent that nonFederal funds available to the Secretary are used to fully compensate
for the cost of additional enrollments: Provided further, That the
condition on enrollments provided in section 1237(b)(2)(B) of the Food
Security Act of 1985, as amended (16 U.S.C. 3837(b)(2)(B)) shall
be deemed met upon the enrollment of 43,333 acres through the
use of temporary easements: Provided further, That the Secretary
shall not enroll acres in the wetlands reserve program through the
use of new permanent easements in fiscal year 1998 until the Secretary has enrolled at least 31,667 acres in the program through
the use of temporary easements.¿
øSEC. 722. Of the funds made available by this Act, not more
than $1,000,000 shall be used to cover necessary expenses of activities
related to all advisory committees, panels, commissions, and task
forces of the Department of Agriculture except for panels used to
comply with negotiated rule makings and panels used to evaluate
competitively awarded grants.¿
øSEC. 723. None of the funds appropriated or otherwise made available by this Act shall be used to pay the salaries and expenses
of personnel who carry out an export enhancement program if the
aggregate amount of funds and/or commodities under such program
exceeds $100,000,000.¿
øSEC. 724. None of the funds appropriated or otherwise made available by this Act shall be used to pay the salaries and expenses
of personnel who carry out a farmland protection program in excess
of $2,000,000 authorized by section 388 of Public Law 104–127.¿
øSEC. 725. None of the funds appropriated or otherwise made available by this Act shall be used to pay the salaries and expenses
of personnel who carry out a conservation farm option program in
excess of $2,000,000 authorized by section 335 of Public Law 104–
127.¿
øSEC. 726. None of the funds made available in this Act may
be used to pay the salaries of employees of the Department of Agriculture who make payments pursuant to a production flexibility contract entered into under section 111 of the Federal Agriculture Improvement and Reform Act of 1996 (Public Law 104–127; 7 U.S.C.
7211) when it is made known to the Federal official having authority
to obligate or expend such funds that the land covered by that production flexibility contract is not being used for the production of an
agricultural commodity or is not devoted to a conserving use, unless
it is also made known to that Federal official that the lack of agricultural production or the lack of a conserving use is a consequence
of drought, flood, or other natural disaster¿.
øSEC. 727. None of the funds appropriated or otherwise made available by this Act shall be used to extend any existing or expiring

THE BUDGET FOR FISCAL YEAR 1998
contract in the Conservation Reserve Program authorized by 16
U.S.C. 3831–3845.¿
øSEC. 728. None of the funds appropriated in this Act may be
used to carry out the provisions of section 918 of Public Law 104–
127, the Federal Agriculture Improvement and Reform Act.¿
øSEC. 729. Hereafter, funds appropriated to the Department of
Agriculture may be used for incidental expenses such as transportation, uniforms, lodging, and subsistence for volunteers serving
under the authority of 7 U.S.C. 2272, when such volunteers are
engaged in the work of the United States Department of Agriculture;
and for promotional items of nominal value relating to the United
States Department of Agriculture Volunteer Programs.¿
øSEC. 730. No employee of the Department of Agriculture may
be detailed or assigned from an agency or office funded by this Act
to any other agency or office of the Department for more than 30
days unless the individual’s employing agency or office is fully reimbursed by the receiving agency or office for the salary and expenses
of the employee for the period of assignment.¿
øSEC. 731. Section 747 of the Federal Agriculture Improvement
and Reform Act of 1996 is amended by inserting, ‘‘effective October
1, 1996,’’ following ‘‘The Secretary shall make grants’’ in section
310B(e)(2) of the Consolidated Farm and Rural Development Act:
Provided, That this section shall take effect upon enactment of this
Act into law.¿
øSEC. 732. LABELING OF RAW POULTRY PRODUCTS.—
(a) IN GENERAL.—Notwithstanding any other provision of law, none
of the funds appropriated or otherwise made available by this Act
may be used to implement or enforce the final rule related to the
labeling of raw poultry products promulgated by the Food Safety
and Inspection Service on August 25, 1995 (60 Fed. Reg. 44395),
and the final rule shall not be effective during fiscal year 1997.
(b) FINAL RULE.—Not later than 90 days after the date of enactment of this Act, the Secretary of Agriculture shall issue a revised
final rule related to the labeling of raw poultry products that—
(1) maintains the standard that the term ‘‘fresh’’ may be used
only for raw poultry products the internal core temperature of
which has not fallen below 26° Fahrenheit;
(2) deletes the requirement that poultry products the internal
core temperature of which has ever been less than 26° Fahrenheit,
but more than 0° Fahrenheit, be labeled as ‘‘hard chilled’’ or ‘‘previously hard chilled’’, except that—
(A) the products shall be prohibited under the rule from being
labeled as ‘‘fresh’’ but shall not be required to bear any specific
alternative labeling; and
(B) nothing in this section shall be interpreted as modifying
the requirements for labeling of all poultry products the internal
core temperature of which has ever fallen to 0° Fahrenheit as
‘‘frozen’’;
(3) provides for a tolerance from the 26° Fahrenheit standard
established by the rule of—
(A) 1° Fahrenheit for poultry products within an official processing establishment;
(B) 2° Fahrenheit for poultry products in commerce;
(4) exempts from temperature testing wings, tenders, hearts, livers, gizzards, necks, and products that undergo special processing,
such as sliced poultry products; and
(5) in all other terms and conditions (including the period of
time permitted for implementation) is substantively identical to
the rule referred to in subsection (a).
(c) REVISED LABELING STANDARDS.—Not later than 60 days after
the issuance of a revised final rule under subsection (b), the Secretary
of Agriculture, acting through the Administrator of the Food Safety
and Inspection Service, shall issue a compliance directive for the
enforcement of the revised labeling standards established by the rule,
including standards for—
(1) temperature testing that are based on measurements at the
center of the deepest muscle; and
(2) sampling methods that ensure that the average of individual
temperatures within poultry product lots of each specific product
type (such as whole birds, whole muscle leg products, and whole
muscle breast products) meet the standards.
(d) SEVERABILITY.—If any provision of this section or the application
thereof to any person or circumstance is held invalid, the validity
of the remainder of this section and of the application of the provision
to any other persons or circumstances shall not be affected.¿
øSEC. 733. Hereafter, notwithstanding any other provision of law,
any domestic fish or fish product produced in compliance with food
safety standards or procedures accepted by the Food and Drug Ad-

DEPARTMENT OF AGRICULTURE
ministration as satisfying the requirements of the ‘‘Procedures for
the Safe and Sanitary Processing and Importing of Fish and Fish
Products’’ (published by the Food and Drug Administration as a final
regulation in the Federal Register of December 18, 1995), shall be
deemed to have met any inspection requirements of the Department
of Agriculture or other Federal agency for any Federal commodity
purchase program, including the program authorized under section
32 of the Act of August 24, 1935 (7 U.S.C. 612c) except that the
Department of Agriculture or other Federal agency may utilize lot
inspection to establish a reasonable degree of certainty that fish
or fish products purchased under a Federal commodity purchase program, including the program authorized under section 32 of the Act
of August 24, 1935 (7 U.S.C. 612c), meet Federal product specifications.¿
øSEC. 734. RURAL HOUSING PROGRAM EXTENSIONS.—
(a) EXTENSION OF MULTIFAMILY RURAL HOUSING LOAN PROGRAM.—
(1) AUTHORITY TO MAKE LOANS.—Section 515(b)(4) of the Housing
Act of 1949 (42 U.S.C. 1485(b)(4)) is amended by striking ‘‘September 30, 1996’’ and inserting ‘‘September 30, 1997’’.
(2) SET-ASIDE FOR NONPROFIT ENTITIES.—The first sentence of
section 515(w)(1) of the Housing Act of 1949 (42 U.S.C. 1485(w)(1))
is amended by striking ‘‘fiscal year 1996’’ and inserting ‘‘fiscal year
1997’’.
(b) EXTENSION OF HOUSING IN UNDERSERVED AREAS PROGRAM.—
The first sentence of section 509(f)(4)(A) of the Housing Act of 1949
(42 U.S.C. 1479(f)(4)(A)) is amended by striking ‘‘fiscal year 1996’’
and inserting ‘‘fiscal year 1997’’.
(c) REFORMS FOR MULTIFAMILY RURAL HOUSING LOAN PROGRAM.—
(1) LIMITATION ON PROJECT TRANSFERS.—Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended by inserting after
subsection (g) the following new subsection:
‘‘(h) PROJECT TRANSFERS.—After the date of the enactment of
the Act entitled ‘An Act making appropriations for Agriculture,
Rural Development, Food and Drug Administration, and Related
Agencies programs for the fiscal year ending September 30, 1997,
and for other purposes’, the ownership or control of a project for
which a loan is made or insured under this section may be transferred only if the Secretary determines that such transfer would
further the provision of housing and related facilities for low-income
families or persons and would be in the best interests of residents
and the Federal Government.’’.
(2) EQUITY LOANS.—Section 515(t) of the Housing Act of 1949
(42 U.S.C. 1485(t)) is amended—
(A) by striking paragraphs (4) and (5); and
(B) by redesignating paragraphs (6) through (8) as paragraphs
(4) through (6), respectively.
(3) EQUITY TAKEOUT LOANS TO EXTEND LOW-INCOME USE.—
(A) AUTHORITY AND LIMITATION.—Section 502(c)(4)(B)(iv) of the
Housing Act of 1949 (42 U.S.C. 1472(c)(4)(B)(iv)) is amended by
inserting before the period at the end the following: ‘‘or under
paragraphs (1) and (2) of section 514(j), except that an equity
loan referred to in this clause may not be made available after
the date of the enactment of the Act entitled ‘An Act making
appropriations for Agriculture, Rural Development, Food and
Drug Administration, and Related Agencies programs for the fiscal year ending September 30, 1997, and for other purposes’,
unless the Secretary determines that the other incentives available under this subparagraph are not adequate to provide a fair
return on the investment of the borrower, to prevent prepayment
of the loan insured under section 514 or 515, or to prevent the
displacement of tenants of the housing for which the loan was
made’’.
(B) APPROVAL OF ASSISTANCE.—Section 502(c)(4)(C) of the Housing Act of 1949 (42 U.S.C. 1472(c)(4)(C)) is amended by striking
‘‘(C)’’ and all that follows through ‘‘provided—’’ and inserting
the following:
‘‘(C) APPROVAL OF ASSISTANCE.—The Secretary may approve
assistance under subparagraph (B) for assisted housing only if
the restrictive period has expired for any loan for the housing
made or insured under section 514 or 515 pursuant to a contract
entered into after December 21, 1979, but before the date of
the enactment of the Department of Housing and Urban Development Reform Act of 1989, and the Secretary determines that
the combination of assistance provided—’’.
(C) TECHNICAL CORRECTION.—Section 515(c)(1) of the Housing
Act of 1949 (42 U.S.C. 1485(c)(1)) is amended by striking ‘‘December 21, 1979’’ and inserting ‘‘December 15, 1989’’.

TITLE VII—GENERAL PROVISIONS—Continued

257

(d) REFORM OF SECTION 515.—Section 515 of the Housing Act of
1949 (42 U.S.C. 1485) is amended—
(1) by striking subsection (r) and inserting the following:
‘‘(r)(1) the Secretary—
‘‘(A) may require that the initial operating reserve under this
section may be in the form of an irrevocable letter of credit;
and
‘‘(B) except as provided in paragraph (2), may require not more
than a 3 percent contribution to equity, except that the Secretary
shall require a 5 percent contribution in the case of a project
that is allocated a low-income housing tax credit pursuant to
section 42 of the Internal Revenue Code of 1986.
‘‘(2) The Secretary may adjust the amount of equity contribution
to ensure that assistance provided is not more than is necessary
to provide affordable housing after taking account of assistance
from all Federal, State, and local sources.
‘‘(3) Not later than 60 days after the date of enactment of the
Act entitled ‘An Act making appropriations for Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
programs for the fiscal year ending September 30, 1997, and for
other purposes’, the Secretary shall issue regulations to implement
subsection (r)(2) in accordance with the negotiated rulemaking procedures set forth in subchapter III of chapter 5 of title 5, United
States Code: Provided, That if the negotiated rulemaking is not
completed within the designated time, the Secretary shall proceed
to promulgate regulations under the rulemaking authority contained in 5 U.S.C. 557.’’; and
(2) by striking subsection (z).
(e) EQUITY SKIMMING PENALTIES.—
(1) INSURANCE OF LOANS FOR THE PROVISION OF HOUSING AND
RELATED FACILITIES FOR DOMESTIC FARM LABOR.—Section 514 of
the Housing Act of 1949 (42 U.S.C. 1484) is amended by adding
at the end the following new subsection:
‘‘(j) EQUITY SKIMMING PENALTY.—Whoever, as an owner, agent,
or manager, or who is otherwise in custody, control, or possession
of property that is security for a loan made or insured under
this section willfully uses, or authorizes the use, of any part of
the rents, assets, proceeds, income, or other funds derived from
such property, for any purpose other than to meet actual or necessary expenses of the property, or for any other purpose not authorized by this title or the regulations adopted pursuant to this
title, shall be fined not more than $250,000 or imprisoned not
more than 5 years, or both.’’.
(2) DIRECT AND INSURED LOANS TO PROVIDE HOUSING AND RELATED FACILITIES FOR ELDERLY PERSONS AND FAMILIES IN RURAL
AREAS.—Section 515 of the Housing Act of 1949 (42 U.S.C. 1485),

as amended by subsection (d)(2) of this section, is amended by
adding at the end the following new subsection:
‘‘(z) EQUITY SKIMMING PENALTY.—Whoever, as an owner, agent,
or manager, or who is otherwise in custody, control, or possession
of property that is security for a loan made or insured under
this section willfully uses, or authorizes the use, of any part of
the rents, assets, proceeds, income, or other fund derived from
such property, for any purpose other than to meet actual or necessary expenses of the property, or for any other purpose not authorized by this title or the regulations adopted pursuant to this
title, shall be fined not more than $250,000 or imprisoned not
more than 5 years, or both.’’.
(f) PRIORITIZATION OF ASSISTANCE.—Section 532 of the Housing Act
of 1949 (42 U.S.C. 1490l) is amended—
(1) in subsection (a), by striking ‘‘The Secretary’’ and inserting
‘‘Except as otherwise provided in subsection (c), the Secretary’’;
and
(2) by adding at the end the following new subsection:
‘‘(c) PRIORITIZATION OF SECTION 515 HOUSING ASSISTANCE.—
‘‘(1) IN GENERAL.—The Secretary shall make assistance under
section 515 available pursuant to an objective procedure established by the Secretary, under which the Secretary shall identify
counties and communities having the greatest need for such assistance and designate such counties and communities to receive
such assistance.
‘‘(2) OBJECTIVE MEASURES.—The Secretary shall use the following objective measures to determine the need for rental housing
assistance under paragraph (1):
‘‘(A) The incidence of poverty.
‘‘(B) The lack of affordable housing and the existence of substandard housing.
‘‘(C) The lack of mortgage credit.

258

TITLE VII—GENERAL PROVISIONS—Continued

‘‘(D) The rural characteristics of the location.
‘‘(E) Other factors as determined by the Secretary, demonstrating the need for affordable housing.
‘‘(3) INFORMATION.—In administering this subsection, the Secretary shall use information from the most recent decennial census of the United States, relevant comprehensive affordable housing strategies under section 105 of the Cranston-Gonzalez National Affordable Housing Act, and other reliable sources obtained
by the Secretary which demonstrate the need for affordable housing in rural areas.
‘‘(4) DESIGNATION.—A designation under this subsection shall
not be effective for a period of more than 3 years, but may
be renewed by the Secretary in accordance with the procedure
set forth in this subsection. The Secretary shall take such other
reasonable actions as the Secretary considers to be appropriate
to notify the public of such designations.’’.¿
øSEC. 735. DEPARTMENT OF AGRICULTURE VOLUNTARY SEPARATION
INCENTIVE PAYMENTS.—
(a) DEFINITIONS.—For the purposes of this section—
(1) the term ‘‘agency’’ means the Department of Agriculture;
(2) the term ‘‘employee’’ means an employee (as defined by
section 2105 of title 5, United States Code) who is employed
by the agency (or an individual employed by a county committee
established under section 8(b)(5) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(b)(5))), is serving under
an appointment without time limitation, and has been currently
employed for a continuous period of at least 3 years, but does
not include—
(A) a reemployed annuitant under subchapter III of chapter
83 or chapter 84 of title 5, United States Code, or another
retirement system for employees of the agency;
(B) an employee having a disability on the basis of which
such employee is or would be eligible for disability retirement
under the applicable retirement system referred to in subparagraph (A);
(C) an employee who is in receipt of a specific notice of
involuntary separation for misconduct or unacceptable performance;
(D) an employee who, upon completing an additional period
of service as referred to in section 3(b)(2)(B)(ii) of the Federal
Workforce Restructuring Act of 1994 (5 U.S.C. 5597 note),
would qualify for a voluntary separation incentive payment
under section 3 of such Act;
(E) an employee who has previously received any voluntary
separation incentive payment by the Federal Government
under this section or any other authority and has not repaid
such payment;
(F) an employee covered by statutory reemployment rights
who is on transfer to another organization; or
(G) any employee who, during the twenty-four month period
preceding the date of separation, has received a recruitment
or relocation bonus under section 5753 of title 5, United States
Code, or who, within the twelve month period preceding the
date of separation, received a retention allowance under section
5754 of title 5, United States Code.
(b) AGENCY STRATEGIC PLAN.—
(1) IN GENERAL.—The head of the agency, prior to obligating
any resources for voluntary separation incentive payments, shall
submit to the House and Senate Committees on Appropriations
and the Committee on Governmental Affairs of the Senate and
the Committee on Government Reform and Oversight of the House
of Representatives a strategic plan outlining the intended use of
such incentive payments and a proposed organizational chart for
the agency once such incentive payments have been completed.
(2) CONTENTS.—The agency’s plan shall include—
(A) the positions and functions to be reduced or eliminated,
identified by organizational unit, geographic location, occupational category and grade level;
(B) the number and amounts of voluntary separation incentive
payments to be offered; and
(C) a description of how the agency will operate without the
eliminated positions and functions.
(c) AUTHORITY TO PROVIDE VOLUNTARY SEPARATION INCENTIVE PAYMENTS.—
(1) IN GENERAL.—A voluntary separation incentive payment
under this section may be paid by an agency to any employee
only to the extent necessary to eliminate the positions and functions identified by the strategic plan.

THE BUDGET FOR FISCAL YEAR 1998
(2) AMOUNT AND TREATMENT OF PAYMENTS.—A voluntary separation incentive payment—
(A) shall be paid in a lump sum after the employee’s separation;
(B) shall be paid from appropriations or funds available for
the payment of the basic pay of the employees;
(C) shall be equal to the lesser of—
(i) an amount equal to the amount the employee would be
entitled to receive under section 5595(c) of title 5, United
States Code; or
(ii) an amount determined by the agency head not to exceed
$25,000 in fiscal year 1997, $20,000 in fiscal year 1998, $15,000
in fiscal year 1999, or $10,000 in fiscal year 2000;
(D) shall not be a basis for payment, and shall not be included
in the computation, of any other type of Government benefit;
and
(E) shall not be taken into account in determining the amount
of any severance pay to which the employee may be entitled
under section 5595 of title 5, United States Code, based on any
other separation.
(3) LIMITATION.—No amount shall be payable under this section
based on any separation occurring before the date of the enactment
of this Act, or after September 30, 2000.
(d) ADDITIONAL AGENCY CONTRIBUTIONS TO THE RETIREMENT
FUND.—
(1) IN GENERAL.—In addition to any other payments which it
is required to make under subchapter III of chapter 83 or chapter
84 of title 5, United States Code, the agency shall remit to the
Office of Personnel Management for deposit in the Treasury of
the United States to the credit of the Civil Service Retirement
and Disability Fund an amount equal to 15 percent of the final
basic pay of each employee of the agency who is covered under
subchapter III of chapter 83 or chapter 84 of title 5, United States
Code, to whom a voluntary separation incentive has been paid
under this section.
(2) DEFINITION.—For the purpose of paragraph (1), the term
‘‘final basic pay’’, with respect to an employee, means the total
amount of basic pay which would be payable for a year of service
by such employee, computed using the employee’s final rate of
basic pay, and, if last serving on other than a full-time basis,
with appropriate adjustment therefor.
(e) EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE GOVERNMENT.—An individual who has received a voluntary separation incentive payment under this section and accepts any employment for
compensation with the Government of the United States, or who
works for any agency of the United States Government through a
personal services contract, within 5 years after the date of the separation on which the payment is based shall be required to pay, prior
to the individual’s first day of employment, the entire amount of
the incentive payment to the agency that paid the incentive payment.
(f) REDUCTION OF AGENCY EMPLOYMENT LEVELS.—
(1) IN GENERAL.—The total number of funded employee positions
in the agency shall be reduced by one position for each vacancy
created by the separation of any employee who has received, or
is due to receive, a voluntary separation incentive payment under
this section. For the purposes of this subsection, positions shall
be counted on a full-time-equivalent basis.
(2) ENFORCEMENT.—The President, through the Office of Management and Budget, shall monitor the agency and take any action
necessary to ensure that the requirements of this subsection are
met.
(g) EFFECTIVE DATE.—This section shall take effect October 1,
1996.¿
øSEC. 736. INTERIM MORATORIUM ON BYPASS FLOWS.—
(a) MORATORIUM.—Section 389(a) of Public Law 104–127 is
amended by striking ‘‘an 18-month’’ after the word ‘‘be’’ and inserting ‘‘a 20-month’’.
(b) REPORT.—Section 389(d)(4) of Public Law 104–127 is amended
by striking ‘‘1 year’’ after the word ‘‘than’’ and inserting ‘‘14 months’’.
(c) EXTENSION FOR DELAY.—Section 389 of Public Law 104–127
is amended by adding at the end the following new subsection—
‘‘(e) EXTENSION FOR DELAY.—There shall be a day-for-day extension
to the 20-month moratorium required by subsection (a) and a dayfor-day extension to the report required by subsection (d)(4)—
‘‘(1) for every day of delay in implementing or establishing the
Water Rights Task Force caused by a failure to nominate Task
Force members by the Administration or by the Congress; or

DEPARTMENT OF AGRICULTURE
‘‘(2) for every day of delay caused by a failure by the Secretary
of Agriculture to identify adequate resources as determined by the
Secretary of Agriculture to carry out the purposes of the Task

TITLE VII—GENERAL PROVISIONS—Continued

259

Force.’’.¿ (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1997.)

Full text of Budget of the United States Government - Appendix : Fiscal Year 1998 : Department of Agriculture

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