The Congress Should Consider Exploring Opportunities To Expand and Improve the Application of User Charges by Federal Agencies

Individuals and organizations benefit from goods, services, and privileges provided by Federal agencies. Currently, about 3 percent of the total receipts of the Federal Government is derived from charges for these benefits. Charging for these benefits places the burden of their costs on the beneficiaries rather than the taxpayers in general, can help reduce general Federal tax collections by partially substituting for taxes and by reducing the demand for goods and services whose production is currently financed by general tax receipts, and can reduce the costs of complying with certain types of Federal regulations. Full-cost pricing ensures that products whose costs exceed their benefits will not be produced and, except in certain cases, prices should reflect supply and demand levels and fair market values. Previous GAO studies on particular user charges have revealed inconsistencies within and across agencies, failures to collect the total costs of providing special benefits, and failure on the part of the Government to earn the fair market value on the leases of some of its properties. In order to assist Congress in assessing current user charge policy, GAO presented guidelines for pricing goods, services, and privileges that the Federal Government provides to identifiable recipients.