p10) B1e10 8) te aeT m BUDGET OF THE UNITED STATES GOVERNMENT ae ahe1 C1 alee BUDGET OF THE UNITED STATES GOVERNMENT jf U.S. Deposian 28 LO4EWC 393)3 3f= AL 03/97 _ po THE BUDGET DOCUMENTS Budget of the United States Government, Fiscal Year 1998 includes for each agency: the proposed text of appropriations lan- contains the Budget Message of the President and information on guage, budget schedules for each account, new legislative proposals, the President’s 1998 budget proposals. In addition, the Budget in- explanations of the work to be performed and the funds needed, cludes a descriptive discussion of Federal programs organized by func- and proposed general provisions applicable to the appropriations of tion, i.e., by the primary purpose of the activity entire agencies or group of agencies. Supplemental and rescission proposals for the current year are presented separately. Information Analytical Perspectives, Budget of the United States Govern- is also provided on certain activities whose outlays are not part ment, Fiscal Year 1998 contains analyses that are designed to high- of the budget totals. light specified subject areas or provide other significant presentations of budget data that place the budget in perspective. A Citizen’s Guide to the Federal Budget, Budget of the Unit- The Analytical Perspectives volume includes economic and account- ed States Government, Fiscal Year 1998 is an Office of Manage- ing analyses; information on Federal receipts and collections; analyses ment and Budget (OMB) publication that provides general informa- of Federal spending; detailed information on Federal borrowing and tion about the budget and the budget process for the general public. debt; the Budget Enforcement Act preview report; current services estimates; and other technical presentations. It also includes informa- Budget System and Concepts, Fiscal Year 1998 contains an tion on the budget system and concepts and al isting of the Federal explanation of the system and concepts used to formulate the Presi- programs by agency and account. dent’s budget proposals. Historical Tables, Budget of the United States Government, Fiscal Year 1998 provides data on budget receipts, outlays, sur- AUTOMATED SOURCES OF BUDGET INFORMATION pluses or deficits, Federal debt, and Federal employment covering The information contained in these documents is available in an extended time period—in most cases beginning in fiscal year 1940 electronic format from the following sources: or earlier and ending in fiscal year 2002. These are much longer time periods than those covered by similar tables in other budget CD-ROM. The CD-ROM contains all of the budget documents and documents. As much as possible, the data in this volume and all software to support reading, printing, and searching the documents. other historical data in the budget documents have been made con- The CD-ROM also has many of the tables in the budget in sistent with the concepts and presentation used in the 1998 Budget, spreadsheet format. so the data series are comparable over time. Internet. All budget documents, including documents that are released at a future date, will be available for downloading in several Budget of the United States Government, Fiscal Year 1998— formats from the Internet. To access documents through the World Appendix contains detailed information on the various appropria- Wide Web, use the following address: tions and funds that constitute the budget and is-designed primarily http://Awww.access.gpo.gov/su_docs/budget/index.html for the use of the Appropriations Committee. The Appendix contains more detailed financial information on individual programs and ap- For more information on access to the budget documents, call toll- propriation accounts than any of the other budget documents. It free (888) 293-6498. GENERAL NOTES All years referred to are fiscal years, unless otherwise noted. Detail in this document may not add to the totals due to rounding. U.S. GOVERNMENT PRINTING OFFICE WASHINGTON 1997 For sale by the U.S. Government Printing Office Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328 ISBN 0-16-048950-4 The index and/or table of contents has been removed and photo- graphed separately within this volume year. For roll film users, this information for the current volume year is at the beginning of the microfilm. For a prior year volume, this information is at the end of the microfilm. For microfiche users, the index and/or contents is contained on a separate fiche. ~ I. THE BUDGET MESSAGE OF THE PRESIDENT THE BUDGET FOR FISCAL YEAR 1998 THE FEDERAL GOVERNMENT DOLLAR FISCAL YEAR 1998 ESTIMATES WHERE IT COMES FROM... CORPORATE INCOME SOCIAL , al TAXES INSURANCE RECEIPTS 33 % OTHER 4% BORROWING EXCISE 71% TAXES 4% INDIVIDUAL INCOME TAXES 41 % WHERE IT GOES... DIRECT BENEFIT OTHER PAYMENTS FOR FEDERAL INDIVIDUALS OPERATIONS 50 % 5 % NATIONAL GRANTS TO DEFENSE STATES 15% & LOCALITIES 15% Table I-1. RECEIPTS, OUTLAYS, AND SURPLUS OR DEFICIT (In billions of dollars) 1996 Estimate Actual 1997 1998 1999 2000 2001 2002 1,453 1,505 1,567 1,643 1,727 1,808 1,897 1,560 1,631 1,687 1,761 1,814 1,844 1,880 Surplus/Deficit (—): -121 -117 —87 —36 17 On-budget -197 —205 -183 —139 —93 Off-budget 76 87 96 103 110 THE BUDGET MESSAGE OF THE PRESIDENT To the Congress of the United States: path. Today, the United States is safer, stronger, and more prosperous. Our budget The 1998 Budget, which I am transmitting deficit is much smaller, our Government to you with this message, builds upon our much leaner, and our policies much wiser. successful economic program of the last four years by balancing the budget while investing The economic plan that we put in place in the future. in 1993 has exceeded all expectations. Already, My budget reaches balance in 2002 the it has helped to reduce the deficit by 63 percent—from the record $290 billion of 1992 right way—cutting unnecessary and _ lower- priority spending while protecting our values. to just $107 billion in 1996—and it has It strengthens Medicare and Medicaid, im- spurred a record of strong growth, low interest proves last year’s welfare reform law, and rates, low inflation, millions of new jobs, provides tax relief to help Americans raise and record exports for four years. their children, send them to college, and Nhile cutting the deficit, we also have save for the future. It invests in education cut the Federal work force by over 250,000 and training, the environment, science and positions, bringing it to its smallest size technology, and law enforcement to raise in 30 years and, as a share of the civilian living standards and the quality of life for work force, its smallest since the 1930s. average Americans. We have eliminated Federal regulations that Over the last four years, my Administration we don’t need and improved the ones we and Congress have already done much of do. And we have done all this while improving the hard work of reaching balance in 2002. the service that Federal agencies are providing We have reversed the trend of higher deficits to the American people. that we inherited, and we have gone almost two-thirds of the way to reaching balance. We have cut wisely.1 We have, in fact, Now, I want to work with Congress to cut enough in unnecessary and lower-priority achieve the final increment of deficit cutting spending to find the resources to invest and bring the budget into balance for the in the future. That's why we were able first time since 1969. to cut taxes for 15 million working families, to make college more affordable for 10 million Building a Bridge to the 21st Century students, to put tens of thousands: of young For four years, my Administration has people to work through national service, to worked to prepare America for the future, invest more in basic and biomedical research, to create a Government and a set of policies and to help reduce crime by putting more that will help give Americans the tools they police on the street. need to compete in an increasingly competi- My plan to reach balance in 2002 provides tive, global economy. the resources to continue these important We have worked to create opportunity for investments. We must not only provide tax all Americans, to demand responsibility from relief for average Americans, but also increase all Americans, and to strengthen the American access to education and training; expand community. We have worked to bring’ the health insurance to the unemployed and Nation together because, as Americans have children who lack it; better protect the envi- shown time and again over the years, together ronment; enhance our investments in bio- we can overcome whatever hurdles stand medical and other research; beef up our before us. law enforcement efforts; and provide the Working with Congress and the American needed funds for a thriving global policy people, we have put America on the right and a strong defense. Cw THE BUDGET FOR FISCAL YEAR 1998 Putting the Building Blocks in Place budget into balance for the first time since 1969 while continuing to invest in the Amer- When my Administration took office in ican people. My budget does that. 1993, we inherited an economy that had barely grown over the previous four years while creating few jobs. The budget deficit Improving Performance in a Balanced had hit record levels, and experts in and Budget World out of Government expected it to go higher. Led by the Vice President’s National Per- Savings and investment were down, interest formance Review, we are truly creating a rates were up, and incomes remained stag- Government that “works better and costs nant, making it harder for families to pay less.” their bills. We put in place a comprehensive set of We have cut the Federal work force by policies that are bearing fruit. By cutting over 250,000 positions, eliminated over 200 the deficit from $290 billion to $107 billion programs and projects, closed nearly 2,000 last year, my economic program (and the obsolete field offices, cut red tape, and elimi- strong economy it helped create) has brought nated thousands of pages of regulations while the deficit to its lowest level since 1981. dramatically simplifying thousands more. We As a share of Gross Domestic Product (GDP), also are providing better service for Ameri- we have our smallest deficit since 1974 cans—at the Social Security Administration, and the smallest of any major industrialized the Department of Veterans Affairs, and nation. other agencies. Other parts of my economic policy also Our efforts to balance the budget will are helping to create jobs and raise living continue to put a premium on _ spending standards. With regard to trade, for instance, wisely. I am determined that we will provide my Administration not only completed the the highest-quality service to Americans for Uruguay Round of the General Agreement the lowest price. And I will demand that on Tariffs and Trade and the. North American agencies continue to search for better and Free Trade Agreement, but also more than better ways to achieve results for the Amer- 200 separate trade agreements, helping to ican people. raise exports to record levels. By opening overseas markets to American goods—by en- As we move ahead, we plan to follow couraging free and fair trade—we are creating a series of strategies that build upon our high-wage jobs at home. successes to date. We will, for instance, Taken together, our budget and trade poli- restructure agencies to make them more cies have helped to create over 11 million flexible and decentralized. We will work to new jobs in the last four years. After two ensure that Federal employees and their decades of troubling stagnation, incomes have managers work together to achieve common begun to rise again while inequality shrinks. goals. We will expand competition to ensure Also, partly due to a strong economy (and that agencies perform their functions as effi- partly to our policies), poverty, welfare, and ciently as possible. crime are down all across America. Government cannot solve all of our prob- With strong growth, low interest rates, lems, but it surely must help us _ solve low inflation, millions more jobs, record ex- many of them. We need an effective Govern- ports, more savings and investment, and ment to serve as a partner with States, higher incomes, the Nation is enjoying what localities, business and labor, communities, such experts as Alan Greenspan, the chairman schools, and families. Only when we can of the Federal Reserve, have described as show the American people that Government the healthiest economy in a generation. can, in fact, work better for them can we Now, our challenge is to complete the restore their confidence in it. And I am job that we began in 1993—to bring the determined to do just that.